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 Friday, December 28, 2007, Vol. 8, No. 256 Headlines A U S T R I A ELTNER MUSIKINSTRUMENTE: Leoben Court Orders Business Shutdown FIDAN FOOD: Creditors' Meeting Slated for Jan. 9, 2008 HODEX HANDEL: Creditors' Meeting Slated for Jan. 9, 2008 OEB BAU: Vienna Court Orders Business Shutdown POINT BAU: Creditors' Meeting Slated for Jan. 8, 2008 S & M LLC: Creditors' Meeting Slated for Jan. 9, 2008 B E L G I U M POPE & TALBOT: U.S. Trustee Sets Creditors' Meeting for Jan. 8 POPE & TALBOT: Court Gives Until Jan. 4 to File Schedules POPE & TALBOT: Courts Approve Cross-Border Insolvency Protocol TENNECO INC: Completes Realignment of Some Foreign Subsidiaries C Z E C H R E P U B L I C ANDREW CORP: CommScope Finalizes Acquisition Details D E N M A R K BLOCKBUSTER INC: Fitch Affirms CCC Issuer Default Rating F R A N C E CINRAM INT'L: Weak Operation Prompts Moody's to Hold B1 Ratings HARMAN INT'L: Promotes Blake Augsburger as Country Manager LE MONDE: Executive Board Resigns Over Finances Dispute QUEBECOR MEDIA: Earns CDN$84.8 Million in Third Quarter G E R M A N Y 089 TEAM: Claims Registration Period Ends Jan. 23, 2008 CHIQUITA BRANDS: Discloses Rule 10b5-1 Stock Trading Plan I N T E R S A F E GMBH: Claims Registration Ends Jan. 23, 2008 MULTI-SPED GMBH: Claims Registration Period Ends Jan. 20, 2008 ON SEMICONDUCTOR: Moody's Affirms Ba3 Credit Facility Rating PIN GROUP: Seven Companies File for Insolvency at Cologne Court RED HAT: Earns US$20.3 Million in Third Quarter Ended Nov. 30 SANYO ELECTRIC: Amends Non-Consolidated Results from FY2000-2005 SANYO ELECTRIC: Admits Paying JPY28-Bil. Dividends Illegally SANYO ELECTRIC: May Face Fines Over Accounting Errors THIELEN ALUMINIUM: Claims Registration Period Ends Jan. 15, 2008 VALASSIS COMMS: Wallace Snyder Joins Board of Directors I R E L A N D BANTRY BAY: Moody's May Cut Low-B Ratings After Review EDELWEISS CAPITAL: Moody's Cuts Rating to Ba2 on Class D Notes CEDO I PLC: Moody's Cuts Rating to Ba3 on Tranche F Notes CEDO PLC-4: Moody's Cuts Rating to Low-B on Two-Note Classes CEDO PLC-II: Moody's Cuts Rating to Ba1 on Tranche J Notes CEDO PLC-III: Moody's Cuts Rating to Ba3 on Tranche K Notes COMMSCOPE INC: Finalizes Acquisition Details for Andrew Corp. * Experian Sees Increase in Irish Liquidations in Final Quarter I T A L Y ALITALIA SPA: Group Posts EUR1.19 Billion Net Debt for November ALITALIA SPA: Sells Heathrow Slots for EUR92 Million ALITALIA SPA: November 2007 Passenger Traffic Up by 0.7% DANA CORP: Bankruptcy Court Confirms Plan of Reorganization MICRON TECH: Posts US$262-Mil. Net Loss in Quarter Ended Nov. 29 K A Z A K H S T A N BAIKALLES LLP: Proof of Claim Deadline Slated for Jan. 26, 2008 EXPRESS WELDING: Creditors Must File Claims by Jan. 23, 2008 GORBYTCOMBINATE LLP: Claims Filing Period Ends Jan. 26, 2008 INJERNIJ PROJECT: Creditors' Claims Due on Jan. 23, 2008 KAR PROGRESS-2006: Claims Registration Ends Jan. 26, 2008 KARAGANDA STROY: Proof of Claim Deadline Slated for Jan. 26 KAZ TRANS: Creditors Must File Claims by Jan. 23, 2008 KAZKOMMERTSBANK JSC: Repays First Tranche of US$1 Billion Loan REM GAS: Claims Filing Period Ends Jan. 26, 2008 SK STROY: Creditors' Claims Due on Jan. 26, 2008 TAMYZ-K LLP: Claims Registration Ends Jan. 26, 2008 K Y R G Y Z S T A N SHERIKTESHTIK-FINANSY LLC: Creditors Must File Claims by Jan. 23 N E T H E R L A N D S X5 RETAIL: Completes Korzinka and Strana Gerkulesia Takeovers N O R W A Y BRIGHTPOINT INC: Units Ink Distribution Agreement with Neo P O R T U G A L COMPANHIA SIDERURGICA: S&P Revises Outlook to Positive R U S S I A ASHINSKIJ LIGHTING: Asset Sale Slated for Jan. 10, 2008 CRYSTAL GLASS PLANT OJSC: Asset Sale Slated for Jan. 10, 2008 GAZPROM NEFT: Receives State Clearance to Bid for Tomskneft MANILOVSK CJSC: Creditors Must File Claims by Jan. 8, 2008 MORTGAGE CORP: Strong Operating Performance Cues S&P's B- Rating MOSTRANSAVTO: Weak Liquidity Position Cues S&P to Junk Ratings ROSBANK OJSC: S&P Lifts Long-Term Credit Rating to BB+ ROSNEFT OIL: 2007 Crude Oil Output Surpasses 100 Million Tons ROSNEFT OIL: FAS Clears Gazprom Neft to Bid for Tomskneft SIBIRIT-1 CJSC: Creditors Must File Claims by Jan. 8, 2008 STERLITAMAKENERGOSTROY: Claims Filing Period Ends Feb. 8, 2008 TYUMENSKIJ MACHINE: Asset Sale Slated for Jan. 17, 2008 VOLGOGRAD OBLAST: S&P Lifts Rating to BB- on Good Performance VOLGOGRAD TOOLS: Asset Sale Slated for Jan. 8, 2008 X5 RETAIL: Completes Korzinka and Strana Gerkulesia Takeovers YUKOS OIL: Unit Wants Receiver to Comply with Dutch Court Ruling S P A I N GENERAL CABLE: Executives Cede Employment Contracts S W I T Z E R L A N D AAREGG JSC: Creditors' Liquidation Claims Due by December 31 BETE CONSULTING: Creditors' Liquidation Claims Due by Dec. 31 CONNECCCT LLC: Creditors' Liquidation Claims Due by December 31 COWI-FOODART JSC: St. Gallen Court Closes Bankruptcy Proceedings DUOPLAN LLC: Creditors' Liquidation Claims Due by Feb. 11, 2008 EDELWEISS FINANCE: Creditors' Liquidation Claims Due by Dec. 31 EITENBERG IMMOBILIEN: Creditors Must File Claims by December 31 FRITZ STREBEL: Creditors' Liquidation Claims Due by December 31 GERBER HOLZBAU: Creditors' Liquidation Claims Due by December 31 GONERI BETON: Creditors' Liquidation Claims Due by December 31 KEN-CASA HOLDING: St. Gallen Court Closes Bankruptcy Proceedings PARFUMS ELLE: Glarus Court Closes Bankruptcy Proceedings ROTOLABEL JSC: Creditors' Liquidation Claims Due by December 31 SATI JSC: Creditors' Liquidation Claims Due by December 31 SCHNEIDER: Creditors' Liquidation Claims Due by December 31 SWISS FLEXPACKAGING: Creditors Must File Claims by December 31 VOCE GROUP: Creditors' Liquidation Claims Due by December 31 W4B.CH WEBSERVICE: Creditors' Liquidation Claims Due by Dec. 30 U K R A I N E ALMAR LLC: Proofs of Claim Filing Ends Jan. 2, 2008 DVORECHYEAL ENTERPRISE: Proofs of Claim Filing Ends Jan. 2, 2008 KHARKOVAL RADIOTELEVISION: Creditors Must File Claims by Dec. 31 KORZHI OJSC: Creditors Must File Claims by January 2, 2008 KRAFT LLC: Creditors Must File Claims by Dec. 31 MOVABLE MECHANIZED 560: Creditors Must File Claims by Dec. 31 REAL METAL: Proofs of Claim Filing Ends December 31 TANAIS-PLUS LLC: Proofs of Claim Filing Ends December 31 TRADEIMPEKS LTD: Creditors Must File Claims by Dec. 31 U N I T E D K I N G D O M BALLY TECHNOLOGIES: Fitch Lifts Issuer Default Rating to B BLUE LAGOON: Brings In Liquidators from Mazars CC BIKES: Joint Liquidators Take Over Operations CHRYSLER LLC: CEO Confides Confidence in Operations and Finances FORD MOTOR: Resumes Pay Hikes for White-Collared Workers in 2008 GENERAL MOTORS: Resumes Pay Hikes for Salaried Employees in 2008 GENERAL MOTORS: Sells 1 Million Vehicles in China in One Year INTERMEC TECH: Hires David Yung as Asia Pacific Vice President MAMA PRODUCTIONS: Taps Liquidators from Vantis RMAC SECURITIES: Moody's Cuts Ratings to Ba2 on Three Notes TATA MOTORS: Launches New Medium & Heavy Commercial Vehicles TATA MOTORS: To Participate in 9th Auto Expo Beginning Jan. 9 VONAGE HOLDINGS: Settles AT&T Patent Feud; Agrees to Pay US$39MM WATCHBELL LTD: Calls In Liquidators from KPMG WOTADOO LTD: Appoints M. C. Bowker as Liquidator ********* ============= A U S T R I A ============= ELTNER MUSIKINSTRUMENTE: Leoben Court Orders Business Shutdown -------------------------------------------------------------- The Land Court of Leoben entered Nov. 13 an order shutting down the business of LLC ELTNER Musikinstrumente Grosshandel (FN 79615g). Court-appointed estate administrator Karl Maier 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. Karl Maier Hauptplatz 13/I 8720 Knittelfeld Austria Tel: 03512/83428 Fax: 03512-83428-50 E-mail: office@ra-maier.at Headquartered in Judenburg, Austria, the Debtor declared bankruptcy on Nov. 5 (Bankr. Case No 17 S 93/07f). FIDAN FOOD: Creditors' Meeting Slated for Jan. 9, 2008 ------------------------------------------------------ Creditors owed money by LLC Fidan Food (FN 264504b) are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 9, 2008. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 9 (4 S 132/07z). Daniel Lampersberger serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Mag. Daniel Lampersberger c/o Dr. Thomas Engelhart Esteplatz 4 1030 Vienna Austria Tel: 712 33 30-0 Fax: 712 33 30-30 E-mail: kanzlei@engelhart.at HODEX HANDEL: Creditors' Meeting Slated for Jan. 9, 2008 -------------------------------------------------------- Creditors owed money by LLC HODEX Handel (FN 286018s) are encouraged to attend the creditors' meeting at 9:30 a.m. on Jan. 9, 2008. The creditors' meeting will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 9, 2007 (4 S 133/07x). Klemens Dallinger serves as the court-appointed estate administrator of the bankrupt's estate. Guenther Hoedl represents Dr. Dallinger in the bankruptcy proceedings. The estate administrator can be reached at: Dr. Klemens Dallinger c/o Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Austria Tel: 513 28 33 Fax: 513 28 33 22 E-mail: dallinger@anwaltsteam.at OEB BAU: Vienna Court Orders Business Shutdown ---------------------------------------------- The Trade Court of Vienna entered Nov. 12 an order shutting down the business of LLC OEB Bau (fka LLC Gueven Bau and LLC Guenther Pelzeder) (FN 284893k). Court-appointed estate administrator Thomas Engelhart 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. Thomas Engelhart c/o Mag. Clemens Richter Esteplatz 4 1030 Vienna Austria Tel: 712 33 30 Fax: 712 33 30 30 E-mail: kanzlei@engelhart.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 31 (Bankr. Case No 6 S 139/07v). Clemens Richter represents Dr. Engelhart in the bankruptcy proceedings. POINT BAU: Creditors' Meeting Slated for Jan. 8, 2008 ----------------------------------------------------- Creditors owed money by LLC Point Bau (FN 276247x) are encouraged to attend the creditors' meeting at 1:45 p.m. on Jan. 8, 2008. The creditors' meeting will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 12 (6 S 143/07g). Gerhard Schilcher serves as the court-appointed estate administrator of the bankrupt's estate. Rainer Radlinger represents Dr. Schilcher in the bankruptcy proceedings. The estate administrator can be reached at: Dr. Gerhard Schilcher c/o Mag. Rainer Radlinger Backerstrasse 1/3/13 1010 Vienna Austria Tel: 513 23 44 Fax: 513 23 44 15 E-mail: wien@kosch-partner.at S & M LLC: Creditors' Meeting Slated for Jan. 9, 2008 ----------------------------------------------------- Creditors owed money by LLC S & M (FN 286382a) are encouraged to attend the creditors' meeting at 10:30 a.m. on Jan. 9, 2008. The creditors' meeting will be held at: The Land Court of Leoben Hall 4 First Floor Leoben Austria Headquartered in Judenburg, Austria, the Debtor declared bankruptcy on Nov. 12 (17 S 95/07z). Scherbaum Norbert serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Scherbaum Norbert Einspinnergasse 3 8010 Graz Austria ============= B E L G I U M ============= POPE & TALBOT: U.S. Trustee Sets Creditors' Meeting for Jan. 8 -------------------------------------------------------------- Kelly Beaudin Stapleton, the United States Trustee for Region 3, will convene a meeting of creditors of Pope & Talbot Inc. and its debtor affiliates at 11:00 a.m., on Jan. 8, 2008, at Room 5209, 5th Floor, J. Caleb Boggs Federal Building, in Wilmington, Delaware. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in the Debtors' bankruptcy cases. Attendance by the Debtors' creditors at the meeting is welcome, but not required. The Sec. 341(a) meeting offers the creditors a one-time opportunity to examine the Debtors' representative under oath about the Debtors' financial affairs and operations that would be of interest to the general body of creditors. 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 US and Canada. Markets for the company's products include the US, 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. 10; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Court Gives Until Jan. 4 to File Schedules --------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware has approved Pope & Talbot Inc. and its debtor-affiliates' request to extend the deadline by which they must file their Schedules and Statements. The Hon. Christopher S. Sontchi directed Pope & Talbot Inc., Pope & Talbot Ltd., Pope & Talbot Spearfish Limited Partnership, and Pope & Talbot Lumber Sales Inc. to file their Schedules and Statements on or before Jan. 4, 2008. The Court grants the remaining Debtors an extension of 30 days within which to file their Schedules and Statements -- a total of 60 days after the bankruptcy filing date -- through and including Jan. 18, 2008. According to Judge Sontchi, the Debtors may seek further extensions of the filing deadlines. As reported in the Troubled Company Reporter on Dec. 3, 2007, Pope & Talbot Inc. and its debtor-affiliates asked the Bankruptcy Court for authority to extend the deadline by which they must file their Schedules and Statements through and including Jan. 18, 2008. 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 US and Canada. Markets for the company's products include the US, 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. 10; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Courts Approve Cross-Border Insolvency Protocol -------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware and the British Columbia Supreme Court approved in all respects Pope & Talbot Inc.'s and its debtor-affiliates' proposed cross- border insolvency protocol, to govern the administration of the Debtors' dual proceedings between the Bankruptcy Court and the Canadian Court. Monitor's Comments PricewaterhouseCoopers Inc., the monitor of the proceedings commenced by Pope & Talbot Ltd. and its subsidiaries under the Companies' Creditors Arrangement Act, notes that the Cross- Border Insolvency Protocol has been amended to provide for a joint approval of the sale of the Debtors' mill assets located in Canada. The Monitor agrees that the Protocol is appropriate for sales that involve assets in both the United States and Canada. However, the Monitor is concerned that requiring joint approval of the Courts for the mill assets located solely in British Columbia may increase expense and lead to delays and ultimately the possibility of duplicative decisions. The Monitor has been advised that the Official Committee of Unsecured Creditors has representation before the Canadian Court, and any concerns of the Creditors Committee could be aired before the Canadian Court, which, the Monitor believes, has considerable experience in dealing with "sales of these sorts of assets". As reported in the Troubled Company Reporter on Dec. 5, 2007, the protocol will become effective only upon approval of both the Bankruptcy Court and the Canadian Court. 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 US and Canada. Markets for the company's products include the US, 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. 10; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). TENNECO INC: Completes Realignment of Some Foreign Subsidiaries --------------------------------------------------------------- Tenneco Inc. has completed the realignment of some of the company's foreign subsidiaries, a move designed to align the company's U.S. and European assets and revenues with liabilities and expenses in the appropriate local currencies. The company has formed a Luxembourg holding corporation, which has become the owner of certain key European entities. The realignment will also provide opportunities to reduce the company's cash taxes by about US$4 million annually and allow Tenneco to accelerate the use of its U.S. net operating losses. The realignment of the European ownership structure is another step in Tenneco's financial strategy toward earning an investment grade debt rating. On Nov. 30, 2007, the company completed the refinancing of a portion of its 10-1/4% senior secured notes, due in 2013, with 8-1/8% senior unsecured notes due in 2015. This refinancing reduces interest expense by approximately US$3 million annually. The subsequent European ownership structure realignment will allow Tenneco to shift a portion of its debt to Europe, which will better match the company's liabilities and expenses with its European assets and revenue. The company's European operations have improved since the original debt structure was established when the company became independent in 1999. The European revenue growth and improved profitability give the company flexibility to align its debt with its operations. "We are very pleased to complete these transactions, which represent strategic steps in our transition from a highly leveraged company to achieving an investment grade rating," Gregg Sherrill, Tenneco chairman and CEO, said. "This European structure change allows us to more appropriately apportion our debt." "Completing the refinancing in such a tough financing environment reflects investor confidence in Tenneco's financial position and long-term growth potential," Mr. Sherrill added. "Tenneco is well-positioned to generate significant growth in our emissions control business over the next five years, and beyond, as vehicle emissions standards tighten worldwide." Tenneco expects to record non-cash income tax charges of US$66 million in fourth quarter 2007 related to the realignment, which will generate U.S. taxable income and utilize a portion of the U.S. net operating losses. About Tenneco Inc. Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) -- http://www.tenneco.com/-- manufactures automotive ride and emissions control products and systems for both the original equipment market and aftermarket. Brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, with its European operations headquartered in Brussels, Belgium. The company has approximately 19,000 employees worldwide. * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Fitch Ratings has placed Tenneco Inc.'s Issuer Default Ratings and securities ratings on Rating Watch Negative. Fitch confirmed these ratings: (i) IDR 'BB-'; (ii) Senior secured bank facility 'BB+'; (iii) Senior secured notes 'BB'; and (iv) Subordinated 'B'. =========================== C Z E C H R E P U B L I C =========================== ANDREW CORP: CommScope Finalizes Acquisition Details ---------------------------------------------------- CommScope Inc. has finalized the agreement for the acquisition of Andrew Corporation. The consideration to be paid for each outstanding share of Andrew common stock in the merger has been determined to be US$13.50 in cash and US$1.50 in CommScope common stock. Andrew stockholders will receive, for each Andrew share, US$13.50 in cash and 0.031543 shares of CommScope common stock. This fractional share of CommScope common stock was calculated according to the terms of the merger agreement by dividing US$1.50 by US$47.554, which was the volume weighted average of the closing sale prices for a share of CommScope common stock over the ten consecutive trading days ended on Dec. 24, 2007. The merger is expected to close today. 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. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. * * * As reported in the Troubled Company Reporter-Latin America Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its ratings on 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 the company. ============= D E N M A R K ============= BLOCKBUSTER INC: Fitch Affirms CCC Issuer Default Rating -------------------------------------------------------- Fitch Ratings has affirmed Blockbuster Inc.'s long-term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. In addition, Fitch upgrades these ratings: -- US$450 million bank credit facility to 'CCC+/RR3' from 'CCC/RR4'; -- US$100 million term loan A to 'CCC+/RR3' from 'CCC/RR4'; -- US$550 million term loan B to 'CCC+/RR3' from 'CCC/RR4'. The Rating Outlook is Stable. The company had approximately US$991 million of debt outstanding as of Sept. 30, 2007. The affirmation of the IDR reflects the company's leading market position, strong brand recognition and increased financial flexibility following amendments made to the bank covenants in July 2007. In addition, the affirmation considers the weak financial performance, which has pressured credit metrics as well as the highly competitive operating environment. Nonetheless, BBI should have adequate liquidity available to meet its near-term capital and debt service requirements. The upgrades of the bank credit facility, term loan A and term loan B reflect a revised recovery analysis. Blockbuster is the leading player in the home video rental industry with US$5.4 billion in revenues in the last twelve months ended Sept. 30, 2007. The company's strong brand recognition and broad geographical coverage have resulted in BBI capturing approximately 40% market share in the rental market. In addition, Blockbuster amended its bank covenants in July 2007, which postpones its obligations to satisfy leverage and interest coverage ratios until January 2009. This provides the company with greater financial flexibility as management begins to implement its recent announced turnaround plan of focusing on profitable growth through a three-prong strategy of 1) restoring the rental business, 2) transitioning from rental focus to retail focus and 3) transforming from DVD focus to digital. Nevertheless, Blockbuster's operating performance continues to be weak driven by store closures and investments in the online business. As a result, operating LTM EBITDA margin decreased 260bps to 3.1%. Therefore, the company recently implemented cost-containment efforts related to corporate overhead, decreased store-level compensation and reduced advertising expenses. Furthermore, Blockbuster modified prices on its Total Access, Unlimited Total Access and mail-order-only plans to help improve operating margins. Given the weak operating results, credit metrics have deteriorated with LTM adjusted debt/EBITDAR and EBITDAR coverage of interest and rents at 7.6x and 1.1x, respectively. However, BBI has adequate near-term liquidity, mainly from its cash balance of US$129 million and availability of US$174 million under its credit facility as of Sept. 30, 2007, to meet its capital and debt service requirements. Of ongoing concern is the intense competition in the industry. In its store-based business, BBI competes with other video- rental chains, discounters and specialty retailers. In its online business, the company competes with other online video rental providers as well as competing technologies such as video-on-demand, pay-per-view and digital video records. The Recovery Ratings and notching in the debt structure reflect Fitch's recovery expectations in a distressed scenario. The bank credit facility, term loan A and term loan B are secured by land, buildings, improvements, equipment, furniture, permits, licenses, subleases, and real estate tax refunds owned by BBI as well as collateralized by pledges of stock of all of the company's domestic subsidiaries and 65% of the stock of certain international subsidiaries. They have been upgraded to 'CCC+/RR3' from 'CCC/RR4', reflecting expected recovery of 51%- 70% following the US$145 million reduction to outstanding borrowings and a US$50 million decrease in the bank credit facility commitment. The senior subordinated notes are rated 'CC/RR6', reflecting poor recovery prospects (0%-10%) in a distressed case. Fitch's Recovery Ratings are a relative indicator of creditor recovery prospects on a given obligation within an issuers' capital structure in the event of a default. Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.Blockbuster.com/-- provides in-home movie and game entertainment, with more than 9,000 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. =========== F R A N C E =========== CINRAM INT'L: Weak Operation Prompts Moody's to Hold B1 Ratings --------------------------------------------------------------- Moody's affirmed the B1 Corporate Family rating and B1 Senior Secured debt rating of Cinram International Inc. The rating action follows the company's recent weaker than expected operating results, which has caused Moody's to significantly reduce expectations for Cinram's future profitability. The rating has nonetheless been affirmed as Moody's believes Cinram's decision to eliminate all distribution payments to unit holders should enable the company to generate meaningful levels of free cash flow and maintain key credit metrics appropriate for its current rating. The long term ratings reflect a B2 probability of default and loss given default assessment of LGD 3, 30% for the senior secured credit facility. The outlook remains stable. Ratings affirmed: -- Corporate family rating at B1; -- Probability of default rating at B2; -- Senior Secured Bank Credit Facility at B1 (LGD3, 30%); The B1 corporate family rating primarily reflects Cinram's significant business risks as an independent manufacturer and distributor of DVD's to a few major movie studios, with which Moody's believes its negotiating scope to be limited. The rating considers that Cinram has considerable exposure to pricing pressures and declines in DVD/CD unit volumes with only a finite ability to reduce costs. The combination of these factors has recently led to a significant deterioration in operating performance. Moody's believes a continuation of this trend is likely through the next year as recent price reductions are fully absorbed and growth in high definition DVD's remains modest. The rating however also recognizes that the company's market position is strong, its relationships with the major movie studios are established and contractual, and management is taking important measures to diversify its risk exposure into new areas such as logistics. Furthermore, the rating considers Moody's expectation that the company will be able to generate significant free cash flow following the elimination of its distributions to unit holders. This is likely to provide Cinram with the ability to reduce its leverage beginning in the latter part of 2008 even as modest operating income pressures persist. Finally, the rating reflects the company's lack of a defined target capital structure and corresponding uncertainty to what extent Cinram may apply its meaningful levels of free cash flow towards permanent debt reduction. The outlook continues to be stable, as Moody's believes margin pressures may remain ongoing through the next year, offset by the company's ability to generate significant amounts of free cash flow. Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/ -- an indirect wholly owned subsidiary Cinram International Income Fund, provides pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, VHS video cassettes, audio CDs, audio cassettes and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world including Canada, France, Germany, Mexico, the United Kingdom, and the United States. HARMAN INT'L: Promotes Blake Augsburger as Country Manager ---------------------------------------------------------- Harman International Industries Incorporated has promoted Blake Augsburger, President & Chief Executive Officer of the Harman Pro Group, to Country Manager of Harman USA, expanding his responsibilities on Jan. 1, 2008. In his new assignment, Mr. Augsburger will report directly to Harman International Chief Executive Officer Dinesh Paliwal. As Country Manager of Harman USA, Augsburger will be responsible for the management of support functions that cross divisional and business lines. He will serve as the country champion for functional best practices and will directly participate in such business activities as project risk review, large supply contracts or investment proposals, significant operational changes or restructurings, organizational and legal issues, and key human resource decisions. Furthermore, he will serve as the chief spokesperson for Harman in the United States to build brand equity. He will also serve as liaison to the chief executive officer for implementation of group directives. "I look forward to my new responsibilities," Mr. Augsburger said today. "This new position represents the first step in the evolution of Harman's organizational structure which will include the appointment of a Country Manager in a few strategic countries. We believe this approach will help to leverage synergies across multiple Harman businesses while improving consistency among business processes in the company's major markets." Mr. Augsburger first joined Harman International Industries, Incorporated in July 2001, when he was appointed President of Crown International, a Harman company based in Elkhart, Indiana. He served as President of Crown until June 2006 when he was promoted to the position of President & Chief Executive Officer of the Harman Pro Group. Prior to joining Crown, Mr. Augsburger was Vice President and General Manager for two high voltage test and measurement equipment manufacturers owned and operated by Hubbell Incorporated: Hipotronics of Brewster, New York and Haefely Test AG of Basel, Switzerland. His seven-year tenure with Hubbell also included Vice President positions in engineering, operations, and worldwide sales and marketing. Blake Augsburger was awarded Bachelor and Master of Science degrees in Electrical Engineering from Texas Tech University in Lubbock, Texas. Headquartered in Washington, D.C., Harman International Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes audio systems through auto manufacturers, including DaimlerChrysler, Toyota/Lexus, and General Motors. Also the company makes audio equipment, like studio monitors, amplifiers, microphones, and mixing consoles for recording studios, cinemas, touring performers, and others. Harman Int'l has operations in Japan, Mexico and France. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Standard & Poor's Ratings Services revised its CreditWatch implications for the 'BB-' corporate credit rating on Harman International Industries Inc. to positive from developing. LE MONDE: Executive Board Resigns Over Finances Dispute ------------------------------------------------------- The executive board of French daily newspaper Le Monde, comprised of chairman Pierre Jeantet, vice-chairman Bruno Patio and executive director, resigned after a dispute with the largest shareholder, Society of Monde Readers, related to the accounts for 2007 and the budget for 2008 for digital branch Le Monde Interactif, Bloomberg News reports, citing Le Figaro. "Stating its inability to have the power to exercise its responsibilities in the face of the public position taken and reiterated by the Society of Monde Readers, the board has forwarded its resignation," a statement said. The resignation will take effect at midnight on Jan. 4, 2007. Jean-Michel Dumay, the society's president, revealed in an e- mail message that Le Monde is facing debts of EUR150 million (US$215 million), Bloomberg relates, citing Liberation. Le Monde, which employs 1,600 people, may also implement additional job cuts in 2008. In 2005, the newspaper eliminated 200 jobs. The Guardian says the downturn in advertising contributed to Le Monde's financial woes. The newspaper is expected to draw up a cost-cutting plan aimed at saving at least EUR10 million (GBP7.2 million) over the next year. QUEBECOR MEDIA: Earns CDN$84.8 Million in Third Quarter ------------------------------------------------------- Quebecor Media generated net income of CDN$84.8 million in the third quarter of 2007, compared with CDN$46.6 million in the same quarter of 2006. The CDN$38.2 million increase was mainly due to the CDN$58.4 million increase in operating income. Quebecor Media Inc. reported third quarter 2007 revenues of CDN$834.6 million, a CDN$116.0 million increase. All of Quebecor Media's business segments posted higher revenues. Quebecor Media's operating income increased by CDN$58.4 million to CDN$253.6 million in the third quarter of 2007, mainly because of higher operating income in the Cable segment, as well as increases in Newspapers and Broadcasting. "Quebecor Media continued growing its revenues, operating income and net income in the third quarter of 2007," said Pierre Karl Peladeau, president and chief executive officer of Quebecor Inc. "The strong performance was spearheaded by the Cable segment, which once again posted substantial increases in the customer base for its cable telephone, Internet access and digital cable television services. The Newspapers and Broadcasting segments also improved their operating results." Year to Date Results Quebecor Media's year to date revenues increased by CDN$246.6 million to CDN$2.40 billion. All of Quebecor Media's business segments without exception reported higher revenues. Operating income rose by CDN$115.4 million to CDN$676.7 million, mainly because of higher operating income in the Cable segment, as well as increases in Broadcasting, Leisure and Entertainment and Newspapers. Excluding the impact of the consolidated stock option expense, the increase in year to date operating income was 24.4%, compared with 8.0% in the same period of 2006. Year to date net income was CDN$214.7 million, compared with a CDN$72.6 million net loss in the same period of 2006. The company attributed the CDN$287.3 million improvement primarily to the favourable impact on the analysis of the 2007 numbers of the recognition in the first nine months of 2006 of a CDN$342.1 million loss on debt refinancing. The CDN$115.4 million increase in operating income was also a factor in the improvement. At Sept. 30, 2007, the company's consolidated balance sheet showed CDN$7.36 billion in total assets, CDN$4.99 billion in total liabilities, and CDN$2.37 billion in total stockholders' equity. About Quebecor Media Headquartered in Montreal, Canada, Quebecor Media Inc., a subsidiary of Mortsel, Belgium-based, Quebecor Inc. -- http://www.quebecor.com/-- owns operating companies in numerous media-related businesses: Videotron Ltd., a cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's chain of tabloids and community newspapers; TVA Group Inc., operator of French-language general- interest television network in Quebec, a number of specialty channels, and the English-language general-interest station Sun TV; Canoe Inc., operator of a network of English-and French- language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., a chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron ltee, a chain of video and video game rental and retail stores. The company has global facilities in India, France and Argentina. * * * As reported in the Troubled Company Reporter on Oct. 1, 2007, Moody's Investors Service rated Quebecor Media Inc.'s CDN$700 million add-on senior unsecured note issue B2. Ratings on the underlying 7.75% senior unsecured notes due in March of 2016 were affirmed at the same B2 level. At the same time, QMI's Ba3 corporate family rating and stable ratings outlook were affirmed. ============= G E R M A N Y ============= 089 TEAM: Claims Registration Period Ends Jan. 23, 2008 ------------------------------------------------------- Creditors of 089 Team Bau GmbH have until Jan. 23, 2008, to register their claims with court-appointed insolvency manager Rolf G. Pohlmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 26, 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich 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: Rolf G. Pohlmann Rosental 6 80331 Munich Germany Tel: 089/548033-0 Fax: 089/548033-111 The District Court of Munich opened bankruptcy proceedings against 089 Team Bau GmbH on Dec. 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: 089 Team Bau GmbH Im Klosterfeld 2A 85716 Unterschleissheim Germany CHIQUITA BRANDS: Discloses Rule 10b5-1 Stock Trading Plan --------------------------------------------------------- Chiquita Brands International Inc. reported that one of its executive officers has adopted a prearranged stock-trading plan in accordance with guidelines specified by Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Rule 10b5-1 allows plans to be established that permit corporate executives to prearrange sales of company securities at a time when they are not aware of any material non-public information. Such plans typically involve a plan to sell shares over a set period of time. These pre-arrange specified later date, as d planned trades will be executed at a set forth in the plan, without further action or oversight by the executive officer. A plan can provide for sales of stock on a particular date or at a particular price or a combination of both of these factors, along with others. The rules allow corporate executives to diversify their investment portfolios and avoid concerns about initializing stock transactions while possibly in possession of material non-public information. Manuel Rodriguez, senior vice president, government and international affairs, and corporate responsibility officer, has adopted a plan under Rule 10b5-1 which is in accordance with company's stock ownership guidelines and provides for the sale of portions of his holdings over time, as part of his financial planning for the benefit of his family. Shares sold pursuant to the plan will be disclosed publicly through Form 144 filings and Form 4 filings as required by the SEC. 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. * * * In May 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: corporate family rating at B3; probability of default rating at B3; US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and 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. I N T E R S A F E GMBH: Claims Registration Ends Jan. 23, 2008 -------------------------------------------------------------- Creditors of I N T E R S A F E GmbH Vertriebs und Dienstleistungsgesellschaft fuer Warensicherungen have until Jan. 23, 2008, to register their claims with court-appointed insolvency manager Arnd Sebelefsky. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich 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: Arnd Sebelefsky Arcostr. 3 80333 Munich Germany Tel: 089/5490250 Fax: 089/558674 The District Court of Munich opened bankruptcy proceedings against I N T E R S A F E GmbH Vertriebs und Dienstleistungsgesellschaft fuer Warensicherungen on Dec. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: I N T E R S A F E GmbH Vertriebs und Dienstleistungsgesellschaft fuer Warensicherungen Martin-Fest-Ring 1b 85609 Munich-Dornach Germany MULTI-SPED GMBH: Claims Registration Period Ends Jan. 20, 2008 -------------------------------------------------------------- Creditors of Multi-Sped GmbH have until Jan. 20, 2008, to register their claims with court-appointed insolvency manager Frank Hanselmann. Creditors and other interested parties are encouraged to attend the meeting at 9:15 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 Wuerzburg Meeting Hall 2 Second Stock Virchowstr. 14 Wuerzburg 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 Hanselmann Berliner Platz 6 97080 Wuerzburg Germany Tel: 0931/359 800 The District Court of Wuerzburg opened bankruptcy proceedings against Multi-Sped GmbH on Dec. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Multi-Sped GmbH Ketteler Str. 3-11 97222 Rimpar Germany ON SEMICONDUCTOR: Moody's Affirms Ba3 Credit Facility Rating ------------------------------------------------------------ Moody's Investors Service has placed the ratings of ON Semiconductor (B1 CFR) on review for possible upgrade and affirmed the Ba3 corporate family and credit facility ratings for AMI Semiconductor, following the companies' Dec. 13, 2007 announcement that they have entered into a definitive agreement for ON Semi to acquire AMI Semi for approximately US$915 million in an all-stock transaction. ON Semi's review for possible upgrade reflects the potential for enhanced scale, an expanded product portfolio (i.e., standard and custom), broader and deeper client relationships, end market diversification and expansion opportunities into untapped market segments, as well as improved margins, higher EBITDA and increased free cash generation provided by the merger. It also reflects the potential for ON Semi to realize manufacturing efficiency improvements and lower unit production costs for AMI Semi's growing standard products portfolio via the transfer of ON Semi's advanced manufacturing capabilities and process technologies. AMI Semi's affirmation reflects the relative stability of its business model due to the sole source status for over 88% of its product base, relatively long product life cycles, high entry barriers and moderate ASP volatility associated with its integrated mixed-signal operations. The review will focus on the combined company's prospects for client retention, asset rationalization, improved capacity utilization (particularly at the Gresham facility) and capex savings on a combined basis, the timing for restructuring actions and cost synergies, as well as its definitive capital structure and refinancing plan. The review will also examine the extent of integration risk associated with the combination given the size of the transaction, which would represent ON Semi's largest acquisition to date. To the extent the transaction closes as planned, AMI Semi's corporate family and probability of default ratings would be withdrawn. Moody's notes that AMI Semi's secured bank credit facility is subject to a change of control covenant, which enables lenders to put the bank loan back to the acquirer upon the transaction's close. As such, the bank debt ratings would also be withdrawn upon repayment. Pro forma for the transaction, leverage is approximately 2.8x combined EBITDA (Moody's adjusted) for the LTM period ended Sept. 30, 2007, which is comparable to Ba3 rated industry peers. Under terms of the agreement, AMI Semi's shareholders will receive 1.15 shares of ON Semi common shares for each share of AMI Semi common stock owned. The stock consideration represents a premium of roughly 38% over AMI Semi's Dec. 12, 2007 closing price. ON Semi expects to issue approximately 104 million shares of common stock on a fully diluted basis to complete the transaction. Upon closing, ON Semi and AMI Semi shareholders will own roughly 74% and 26%, respectively of the combined company. These ratings for ON Semi were placed on review for possible upgrade: -- Corporate Family Rating - B1 -- Probability of Default Rating -- B1 -- US$ 25.0 Million Guaranteed Senior Secured Revolving Credit Facility due 2013 - Ba1 (LGD-1, 4%) -- US$174.1 Million Guaranteed Senior Secured Term Loan maturing through 2013 -- Ba1 (LGD-1, 4%) These ratings for AMI Semi were affirmed: -- Corporate Family Rating -- Ba3 -- Probability of Default Rating -- B1 -- US$ 90.0 Million Senior Secured Revolver due 2010 - Ba3 (LGD-3, 35%) -- US$277.5 Million Senior Secured Term Loan B due 2012 - Ba3 (LGD-3, 35%) AMI Semi's rating outlook is stable. Headquartered in Phoenix, Arizona ON Semiconductor -- http://www.onsemi.com/-- supplies power solutions to engineers, purchasing professionals, distributors and contract manufacturers in the computer, cell phone, portable devices, automotive and industrial markets. The company has operations in Japan, Czech Republic, and Germany. Revenues and EBITDA for the twelve months ended Sept. 30, 2007 were US$1.56 billion and US$402 million, respectively. Headquartered in Pocatello, Idaho, AMI Semiconductor, Inc. is a leading designer and manufacturer of mixed-signal application- specific integrated circuits and structured digital products. Revenues and EBITDA for the twelve months ended Sept. 30, 2007 were US$619 million and US$141 million, respectively. PIN GROUP: Seven Companies File for Insolvency at Cologne Court --------------------------------------------------------------- Seven PIN Group AG companies have filed for insolvency at a Cologne court, saying they lack funds to pay social insurance contributions, AFX News reports, citing Thomson Financial. According to the report, the move came after publishing group Axel Springer AG, which owns a 63.7% stake in PIN, resolved to stop funding the company following the German government's decision to introduce minimum wages of EUR8-EUR9.80 for the postal industry. Springer argued the minimum wage curbs competition and gives market leader Deutsche Post AG a monopoly, Simon Thiel writes for Bloomberg News. PIN says the insolvency affected around 850 of its 9,000 employees, although group operations continue. Andreas Ringstmeier has been appointed preliminary insolvency administrator. Guenter Thiel, chief executive officer of PIN, earlier resumed talks to acquire Springer's stake in the company. Mr. Thiel previously withdrew its offer to buy the stake and quit his post with immediate effect, AFX relates. Mr. Thiel told Bloomberg talks over a buyout failed because of Springer's "unrealistic demands". About PIN Group AG PIN Group AG -- http://www.pin-group.net/-- is the second- largest provider in the German mail services market. The group has more than 60 regional subsidiaries, and in 2006 became a national integrated provider by setting up an efficient nationwide distribution network. PIN currently covers around 96 %of Germany primarily through its own distributional networks complemented by regional co-operations. PIN was founded in September 2005 by Axel Springer AG, WAZ Media Group, Georg von Holtzbrinck Publishing Group and Luxembourg- based Rosalia AG, when the stakeholders bundled their respective mail service activities. PIN reported consolidated revenues of EUR168.3 million for the 2006 financial year. The group generated 68% of its earnings through regional mail service activities with the remaining 32% coming from national mail services. In the first quarter of 2007 the company's revenues rose to EUR71.3 million versus EUR30 million in the first quarter of 2006. The company expects revenues to more than double in the current year. On the basis of market share growth PIN Group aims at achieving revenues of EUR1.5 to EUR2 billion by 2015. RED HAT: Earns US$20.3 Million in Third Quarter Ended Nov. 30 ------------------------------------------------------------- Red Hat Inc. has reported US$20.3 million of net income for the third fiscal quarter ended Nov. 30, 2007, compared with US$18.2 million for the prior quarter and US$14.6 million for the same period in 2006. Red Hat's current fiscal year will end Feb. 29, 2008. The company's Total revenue for the quarter was US$135.4 million, an increase of 28% from the year ago quarter and 6% from the prior quarter. Subscription revenue was US$115.7 million, up 30% year-over-year and 6% sequentially. Non-GAAP adjusted net income for the quarter was US$39.7 million after adjusting for stock compensation and tax expense. This compares to non-GAAP adjusted net income of US$36.9 million in the prior quarter and US$30.1 million, in the year ago period. Non-GAAP operating cash flow has totaled US$76.7 million for the quarter, up 24% from the year ago quarter and 20% sequentially. Total cash, cash equivalents and investments as of Nov. 30, 2007 were US$1.3 billion. At quarter end, Red Hat's total deferred revenue balance was US$422.6 million, an increase of 36% year- over-year and 12% sequentially. "We are very pleased to be recognized by CIO's for the fourth consecutive year as the most valued Enterprise Software Vendor and best overall IT Vendor for the third time in four years," stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "There is a direct correlation between our ability to deliver real business value and the loyalty of our large and growing customer base. As a result of strong market demand and solid execution from our worldwide organization, we were able to deliver another strong financial performance in the third quarter and we are optimistic about our outlook." About Red Hat Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services has revised its outlook on Red Hat Inc. to positive from stable and affirmed the ratings, including the 'B+' corporate credit rating. SANYO ELECTRIC: Amends Non-Consolidated Results from FY2000-2005 ---------------------------------------------------------------- Sanyo Electric Co., Ltd., has finished its internal investigation and review of company financial statements for previous fiscal years. Having reached a decision, Sanyo disclosed a written report on its investigation and intention to amend results of marketable securities. Sanyo, regarding the six fiscal terms from fiscal year 2000 (ending March 2001) to FY2005 (ending March 2006), has amended its previous fiscal year non-consolidated financial statements in conformance to practical business guidelines related to accounting standards and financial commodities accounting. The amendments were based on and include: 1. Judging the importance of the selection regarding which subsidiaries and affiliates would be the subject of investigation for impairment losses; and 2. In addition to conducting a comprehensive review, ensuring compliance to accounting standards and practical guidelines in order to decide which subsidiaries and affiliates will be subject for review for impairment losses and which companies have the potential of recoverable performance, particularly in the semiconductor business which has been subject to market fluctuations. Sanyo also received an accounting audit for the periods starting from FY2000 from Grant Thornton Taiyo ASG. The audit also included the recalculation of impairment losses for subsidiaries/affiliates and deferred tax assets for each fiscal year. The amendments apply to the account processing for the six terms for losses in investments in subsidiaries and affiliates, and the total amount amended for the six terms are: Amendment of losses in investments in subsidiaries and affiliates: Before amendment JPY372.6 billion After amendment JPY378.6 billion (Change: -6 billion yen) Amendment of deferred tax assets: Before amendment JPY100.2 billion After amendment JPY100.2 billion (No change) The amendments are restricted to the non-consolidated results for previous fiscal years up to FY2005, which ended on March 31, 2006. The amendments do not significantly affect the consolidated results for the mentioned period. Measures Taken to Prevent Future Problems Sanyo established an internal "Investigation Committee for Previous Financial Results" in May of this year, which included third party members, such as lawyers and accountants from outside the company. Following its establishment, the Committee was entrusted to conduct an investigation to determine the cause of and how to prevent such problems from recurring and Sanyo received the report and proposed preventative measures from the investigation Committee. The primary causes of the problem: 1. Inadequacy and vulnerability in financial division accounting system; 2. Lack of independence for the auditors and insufficient auditing organization; 3. Inadequate governance system and incomplete management supervisory function and inspection; and 4. Corporate culture and the effects of the company system. Additionally, as for Sanyo's handling of impairment losses for subsidiaries and affiliates, while the Committee found the company's accounting to not be in accordance with accounting standards and practical guidelines relating to financial commodities, the Committee reported that these actions were not done with ill-intent by those in authority during the applicable terms, and that there was no intentional foul play involved for the financial results of the applicable terms. Sanyo has realized the seriousness of the situation requiring amendments to the previous fiscal years' financial results, and along with sincerely reflecting the situation, Sanyo will strengthen its internal control through implementing various measures thoroughly to prevent further similar instances, based on the recommendations and report from the third-party Committee. Sanyo will further focus efforts on strengthening the company-system by adding to the drastic reforms for governance that started in March 2006. These efforts include: 1. Have management personnel recognize the important of suitable financial statements, and develop risk-minded financial affairs * Implement training for executive personnel and managers; * Hold regular meetings between management and auditors; and * Share ethics of financial reporting company-wide. 2. Strengthen governance system * Reform deliberation process used by the board of directors for measures (implemented); * Decentralized authority (implemented); * Strengthen internal control systems (implemented). - Establish personnel/nominating committee, compensation committee, and governance committee - Strengthen and establish accounting employee system - Create a 'compliance hotline' 3. Strengthen financial affairs and accounting systems/Remove the barriers of the company-system * Adopt system for accepting management personnel (implemented); * Strengthen management of affiliated companies; * Adopt standards for management of affiliated companies (implemented); * Increase financial affairs personnel from the current number of 12 (as of April 2007) to 24, or approximately double the current amount, increasing both quality and quantity; * Separate managerial accounting and system accounting; * Introduce complete structure for thorough compliance to accounting standards; and * Establish business planning inspection system. 4. Enable close cooperation and sharing of information between auditors, standing corporate auditors and financial affairs headquarters personnel through regularly held meetings Management Responsibility and Punishment The responsibility for the amendments made to the six applicable terms will be shared by management. Sanyo recognizes the importance of educating management to be in compliance with guidelines, and, as such, will not award JPY1.2 billion in bonuses or retirement to both former and current management, and pay to seven persons, including the Executive Director & President, as well as standing corporate auditors. The Executive Director & President of Sanyo Electric Co., Ltd., Seiichiro Sano commented, "SANYO deeply and sincerely regrets having to go back and amend previous fiscal year financial results for the past six terms. Hereafter, in order to never again cause this type of problem, drastic preventative measures such as maintaining internal structures, reinforcing account management and checking functions, will be implemented and thoroughly executed." He added, "The amendments will be limited to the non- consolidated financial results of previous terms, and will not have any significant or noteworthy impact on consolidated results for the same periods. Also, new measures have already been applied to previous and current results regarding standards for losses, and along with receiving approval from the new auditing firm, there will be absolutely no effects on the situation of current financial affairs. Sanyo will hereafter work to regain trust and reputation with its new three-year 'Mid-term Management Plan' set to be put in effect from FY2008 through FY2010, and will guide SANYO to fulfilling its revitalization." About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. SANYO ELECTRIC: Admits Paying JPY28-Bil. Dividends Illegally ------------------------------------------------------------ Sanyo Electric Co., Ltd., acknowledged that it made illegal dividend payments worth about JPY28 billion in five six-month terms in the past amid a lack of resources, Jiji Press reports. It was learned by Jiji Press that Sanyo paid JPY3 per share for the April-September period of fiscal 2002, 2003, and 2004 and the October-March period of fiscal 2002 and 2003. Jiji Press relates that according to its sources, Sanyo should have seen profits in those terms decline sharply and should have been unable to pay the dividends if it did not defer necessary accounting steps like the booking of losses on subsidiaries. In a separate report, Jiji Press said Sanyo will forgo retirement payments totaling about JPY1.2 billion to executives and auditors who served during the years in question. "It has planned to make the payments to 60 such officials including former Chairman Satoshi Iue after its business recovery," the report added. Sanyo President Seiichiro Sano and six other executives will take additional pay cuts of 10% for six months, the report cited the company as saying. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. SANYO ELECTRIC: May Face Fines Over Accounting Errors ----------------------------------------------------- Sanyo Electric Co., Ltd., after it adjusted its earnings reports for the FY2000-FY2005, may face fines from regulators for its accounting irregularities, The Associated Press reports. Japan's Securities and Exchange Surveillance Commission accused Sanyo of faking the earnings report for the fiscal half that ended in September 2005, urging the Financial Services Agency to fine the company, the AP relates. The AP states that the SESC demanded that FSA fine Sanyo JPY8.3 billion for the irregularity. The Tokyo Stock Exchange has given Sanyo shares a special monitoring status while the bourse reviews the company's earnings to see if it violated listing rules, says the AP. Masaki Kondo and Hiroshi Suzuki of Bloomberg News report that the Tokyo bourse said that Sanyo's shares may be delisted over the misstated results from April 2000 to March 2006, leading to erroneous dividend payments. Hideyuki Ookoshi, who oversees US$35 million at Chiba-Gin Asset Management Co. expressed to Bloomberg, "Investors who held the stock on expectations of a business recovery don't like this news. Still, being placed on the watch list doesn't necessarily mean the stock is going to be delisted right away." Bloomberg relates that Sanyo, through a statement filed with the Tokyo bourse, apologized to shareholders and business partners and said it will strengthen management. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. THIELEN ALUMINIUM: Claims Registration Period Ends Jan. 15, 2008 ---------------------------------------------------------------- Creditors of Thielen Aluminium-Druckguss Vertriebs-GmbH have until Jan. 15, 2008, to register their claims with court- appointed insolvency manager Dr. Peter Neu. 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 Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Peter Neu Elberfelder Strasse 39 42853 Remscheid Germany Tel: 02191/499 18-0 Fax: 02191/499 18-50 The District Court of Wuppertal opened bankruptcy proceedings against Thielen Aluminium-Druckguss Vertriebs-GmbH on Dec. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Thielen Aluminium-Druckguss Vertriebs-GmbH Lotharstrasse 6 42655 Solingen Germany Attn: Dr. Claus-Michael Friedrich Honsel, Manager Twersweg 14 59519 Moehnesee Germany VALASSIS COMMS: Wallace Snyder Joins Board of Directors ------------------------------------------------------- Valassis Communications Inc. has elected Wallace Snyder, American Advertising Federation President & Chief Executive Officer, to the Valassis Board of Directors, effective Jan. 2, 2008. Based in Washington, Mr. Snyder serves as the AAF's chief spokesman and keeps well informed on advertising industry issues. Representing nearly 50,000 members -- including 130 corporate members, 210 local ad federations and 210 college chapters -- Mr. Snyder often testifies before federal and state lawmakers on issues of importance to the advertising industry. He also serves the industry as a board member of several national organizations, including The Ad Council, the Advertising Educational Foundation and the National Advertising Review Council, which oversees advertising self-regulation. "A multi-cultural advertising and diversity champion, Wally brings a wealth of business and leadership experience to our board," said Alan F. Schultz, Valassis Chairman, President and CEO. "His close network of clients, government officials, advertising agencies and media leaders, as well as his expertise regarding legal and Federal Trade Commission issues will be a tremendous asset to our shareholders and associates." Prior to joining the AAF, Mr. Snyder was associate director for advertising practices at the Federal Trade Commission's Bureau of Consumer Protection, where he served as principal adviser to the FTC on advertising issues. Mr. Snyder also served as the FTC's liaison officer to the Food and Drug Administration and worked on a number of congressional proceedings involving the FTC. A 16-year veteran of the FTC, Mr. Snyder joined the Commission as a trial attorney and was involved in litigation for a variety of cases. Before signing on at the FTC, Mr. Snyder spent two years as an officer in the US Army. Mr. Snyder is a graduate of the University of Iowa, where he was elected student body president, and received his Juris Doctor degree from the University of Iowa College of Law. He is a member of the bar of the District of Columbia. About Valassis Headquartered in Livonia, Michigan, Valassis Communications Inc. -- http://www.valassis.com/-- offers a wide range of marketing services to consumer packaged goods manufacturers, retailers, technology companies and other customers with operations in the United States, France, Germany, Italy, Mexico and Canada. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 27, 2007, Standard & Poor's Ratings Services assigned its 'B-' rating to Valassis Communications Inc.'s proposed USUS$590 million senior unsecured notes. As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2007, Moody's Investors Service assigned a B3 rating to Valassis Communications, Inc.'s proposed USUS$590 million of fixed and floating rate senior unsecured notes due 2015. Moody's Feb. 12, 2007, rating action on Valassis contemplated the issuance of USUS$590 million of junior debt in conjunction with the acquisition of ADVO and the company's existing ratings are not affected by the issuance of the new senior unsecured notes. Valassis' Corporate Family rating is B1 and the rating outlook remains stable. ============= I R E L A N D ============= BANTRY BAY: Moody's May Cut Low-B Ratings After Review ------------------------------------------------------ Moody's Investors Service downgraded and left on watch for further downgrade three classes of notes issued by Bantry Bay CDO I P.L.C. Moody's also placed on watch for downgrade three additional classes of notes issued by Bantry Bay CDO I P.L.C. These rating actions are a response to credit deterioration in the underlying portfolio. The transaction contains a portfolio comprised of high yield CDOs and US ABS CDOs primarily of the 2005 and 2006 vintages, which in turn are exposed to US RMBS. There has been significant rating deterioration recently in many of the ABS CDOs underlying this transaction, including a number of defaults. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to 2005 US RMBS and ABS CDO vintages becomes known. These rating actions are: * Bantry Bay CDO I P.L.C.: (1) US$127,000,000 Class A-1 Floating Rate Notes, due 2052 -- Current Rating: Aaa, on review for downgrade -- Prior Rating: Aaa (2) US$29,000,000 Class A-2 Floating Rate Notes, due 2052 -- Current Rating: Aaa, on review for downgrade -- Prior Rating: Aaa (3) US$28,000,000 Class A-3 Floating Rate Notes, due 2052 -- Current Rating: Aaa, on review for downgrade -- Prior Rating: Aaa (4) US$31,500,000 Class B Floating Rate Notes, due 2052 -- Current Rating: Ba1, on review for downgrade -- Prior Rating: Aa2 (5) US$11,500,000 Class C Deferrable Floating Rate Notes, due 2052 -- Current Rating: Ba3, on review for downgrade -- Prior Rating: A2 (6) US$9,000,000 Class D Deferrable Floating Rate Notes, due 2052 -- Current Rating: B3, on review for downgrade -- Prior Rating: Baa2 EDELWEISS CAPITAL: Moody's Cuts Rating to Ba2 on Class D Notes -------------------------------------------------------------- Moody's Investors Service has taken these rating actions in respect of notes issued by Edelweiss Capital Plc-Series 2007-2: -- Downgraded to Aa1 from Aaa, the EUR50,000,000 Class A EUR Series 2007-2 Asset-Backed Floating Rate Notes due 2013; -- Downgraded to Ba2 from Baa2, the US$19,700,000 Class D US$ Series 2007-2 Asset-Backed Floating Rate Notes due 2013. These downgrades are a result of credit migration and equity share price movements of the underlying portfolio of Equity Default Swaps particularly in the financial and real estate sectors, which have shown relatively weaker performance than the global equity market. Whilst Edelweiss Series 2007-2 is composed of an equal number of Equity Default Swaps in the risk portfolio (long EDS exposures) and in the insurance portfolio (short EDS exposures), the presence of a higher proportion of financial and real-estate exposures in the risk portfolio has significantly contributed to the downgrades. As of Dec. 18, 2007, the risk portfolio has one reference entity (Countrywide Financial Corporation) that has seen its share price fall below its EDS trigger level and an additional two reference entities whose share price is only 20% above their respective EDS trigger levels. The distressed equity events observation period will start on May 6, 2010 and last three years, such that no equity event related losses have occurred at this stage and all tranches still benefit from their initial subordination levels. CEDO I PLC: Moody's Cuts Rating to Ba3 on Tranche F Notes --------------------------------------------------------- Moody's Investors Service has taken these rating actions in respect of notes issued by CEDO I PLC: -- Downgraded to Aa2 from Aa1, the Series 1 Tranche B EUR40,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to A3 from A1, the Series 1 Tranche C EUR30,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to A3 from A1, the Series 1 Tranche E EUR2,500,000 Asset-Backed Deferrable Fixed Rate Notes due 2011; -- Downgraded to Ba3 from Baa3 Series 1 Tranche F EUR2,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to A3 from A1, the Series 1 Tranche H EUR5,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to Aa2 from Aa1 to the Series 1 Tranche G EUR15,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011. These downgrades are a result of credit migration and equity share price movements of the underlying portfolio of Equity Default Swaps, particularly in the financial and real estate sectors which have observed relatively weaker performance than the global equity market. Whilst the transaction is composed of an equal number of Equity Default Swaps in the risk portfolio (long EDS exposures) and in the insurance portfolio (short EDS exposures), the presence of a higher proportion of financial and real-estate exposures in the risk portfolio has significantly contributed to the downgrades. As of the Dec. 18, 2007, the risk portfolio had two reference entities (Countrywide Financial Corporation and Boston Scientific Corp) which have seen their share price fall below their EDS trigger level and an additional two reference entities whose share price is only 20% above their respective EDS trigger levels. The distressed equity events observation period will start on May 21, 2008 and last three years, such that no equity event related losses have occurred at this stage and all tranches still benefit from their initial subordination levels. CEDO PLC-4: Moody's Cuts Rating to Low-B on Two-Note Classes ------------------------------------------------------------ Moody's Investors Service has taken these rating actions in respect of notes issued by CEDO PLC-Series 4 CSAM: -- Downgrades to Aa1 from Aaa, the Tranche D EUR 73,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Aa1 from Aaa, the EUR15,000,000 Floating Rate Loan Facility due 2012 in relation to Tranche D EUR73,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to A1 from Aa2, the Tranche E EUR47,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to A1 from Aa2, the EUR45,000,000 Floating Rate Loan Facility due 2012 in relation to Tranche E EUR47,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Baa3 from A2, the Tranche F EUR17,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Baa3 from A2, the EUR6,000,000 Floating Rate Loan Facility due 2012 in relation to Tranche F EUR17,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Aa1 from Aaa, the Tranche G US$2,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to A1 from Aa2, the Tranche H US$10,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Baa3 from A2, the Tranche I US$12,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Baa3 from A2, the Tranche J US$5,000,000 Asset-Backed Deferrable Fixed Rate Notes due 2012; -- Downgrades to Aa1 from Aaa, the Tranche K CHF132,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Ba1 from A3, the Tranche L US$15,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to A1 from Aa2, the Tranche M US$15,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Aa1 from Aaa, the Tranche N US$40,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to A1 from Aa2, the Tranche O US$10,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012; -- Downgrades to Ba3 from Baa2, the Tranche P US$2,000,000 Asset-Backed Deferrable Floating Rate Notes due 2012. These downgrades are a result of credit migration and equity share price movements of the underlying portfolio of Equity Default Swaps particularly in the financial and real estate sectors, which have shown relatively weaker performance than the global equity market. Whilst the transaction is composed of an equal number of Equity Default Swaps in the risk portfolio (long EDS exposures) and in the insurance portfolio (short EDS exposures), the presence of a higher proportion of financial and real-estate exposures in the risk portfolio has significantly contributed to the downgrades. As of Dec. 18, 2007, the risk portfolio has two reference entities (Countrywide Financial Corporation and Mitsubishi UFJ Nicos Company Ltd) which have seen their share price fall below their EDS trigger level and an additional two reference entities whose share price is only 20% above their respective EDS trigger levels. The distressed equity events observation period will start on July 1, 2009 and last three years, such that no equity event related losses have occurred at this stage and all tranches still benefit from their initial subordination levels. CEDO PLC-II: Moody's Cuts Rating to Ba1 on Tranche J Notes ---------------------------------------------------------- Moody's Investors Service has taken these rating actions in respect of notes issued by CEDO PLC-Series CEDO II: -- Downgraded to Aa1 from Aaa, the Series 2 Tranche A EUR75,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to A2 from Aa2, the Series 2 Tranche B EUR42,500,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to Baa2 from A2, the EUR 10,000,000 Floating Rate Loan Facility due 2011 in relation to Series 2 Tranche B EUR42,500,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to Baa2 from A2, the Series 2 Tranche C EUR16,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to Baa2 from A2, the EUR 10,000,000 Floating Rate Loan Facility due 2011 in relation to Series 2 Tranche C EUR10,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to Baa2 from A2, the Series 2 Tranche G US$1,000,000 Asset-Backed Deferrable Floating Rate Notes due 2011; -- Downgraded to Baa3 from A3, the Series 2 Tranche H US$600,000 Asset-Backed Floating Rate Notes due 2011; -- Downgraded to Baa2 from A2, the Series 2 Tranche I JPY200,000,000 Asset-Backed Fixed Rate Notes due 2011; -- Downgraded to Ba1 from Baa2, the Series 2 Tranche J JPY100,000,000 Asset-Backed Fixed Rate Notes due 2011; -- Downgraded to Baa3 from A3, the Series 2 Tranche K Non-Principal Protected Asset-Backed Fixed Rate Notes due 2011. These downgrades are a result of credit migration and equity share price movements of the underlying portfolio of Equity Default Swaps particularly in the financial and real estate sectors, which have shown relatively weaker performance than the global equity market. Whilst CEDO PLC-Series CEDO II is composed of an equal number of Equity Default Swaps in the risk portfolio and in the insurance portfolio, the presence of a higher proportion of financial and real-estate exposures in the risk portfolio has significantly contributed to the downgrades. As of the Dec. 18, 2007, the risk portfolio has four reference entities (Pulte Holmes Inc, Compass Group Plc, Macy's Inc and Dr Horton Inc) which have seen their share price fall below their respective EDS trigger levels and an additional one reference entity who's share price is only 20% above its EDS trigger level. The distressed equity events observation period will start on Dec. 2, 2008 (Nov. 13, 2008 for Tranche K only) and last for three years, such that no equity event related losses have occured at this stage and all tranches still benefit from their initial subordination levels. CEDO PLC-III: Moody's Cuts Rating to Ba3 on Tranche K Notes ----------------------------------------------------------- Moody's Investors Service downgrades to Ba3 from A3, the Series 3 Tranche K Non-Principal Protected Asset-Backed Fixed Rate Notes due 2012 issued by CEDO PLC-Series CEDO III. This downgrade is the result of credit migration and equity share price movements of the underlying portfolio of Equity Default Swaps particularly in the financial and real estate sectors, which have shown relatively weaker performance than the global equity market. Whilst the transaction is composed of an equal number of Equity Default Swaps in the risk portfolio (long EDS exposures) and in the insurance portfolio (short EDS exposures), the presence of a higher proportion of financial and real-estate exposures in the risk portfolio has significantly contributed to the downgrades. As of the Dec. 18, 2007, the risk portfolio has five reference entities (Countrywide Financial Corporation, KB Home, Centex Corporation, Pulte Holmes Inc and Mitsubishi UFJ Nicos Company Ltd) which have seen their share price fall below their EDS trigger level and an additional two reference entities whose share price is only 20% above their respective EDS trigger levels. The distressed equity events observation period will start on Dec. 29, 2008 and last three years, such that no equity event related losses have occured at this stage and all tranches still benefit from their initial subordination levels. COMMSCOPE INC: Finalizes Acquisition Details for Andrew Corp. ------------------------------------------------------------- CommScope Inc. has finalized the agreement for the acquisition of Andrew Corporation. The consideration to be paid for each outstanding share of Andrew common stock in the merger has been determined to be US$13.50 in cash and US$1.50 in CommScope common stock. Andrew stockholders will receive, for each Andrew share, US$13.50 in cash and 0.031543 shares of CommScope common stock. This fractional share of CommScope common stock was calculated according to the terms of the merger agreement by dividing US$1.50 by US$47.554, which was the volume weighted average of the closing sale prices for a share of CommScope common stock over the ten consecutive trading days ended Dec. 24, 2007. The merger is expected to close today. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. 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. * Experian Sees Increase in Irish Liquidations in Final Quarter --------------------------------------------------------------- The number of Irish firms going into liquidation increased in the final quarter of 2007, although the number of overall liquidations in the year to date is slightly below last year, according to figures released by credit checking firm Experian on Dec. 20, 2007. The figures showed that the construction sector accounts for four out of every ten liquidations in 2007, while the catering, restaurant and hotel sector accounts for 20% of liquidations, up from the 2006 figures, which stood at 13%. The figures also revealed that number of companies seeking protection from creditors through examinership reached their highest level in a decade. The number of examiners appointed in 2007 rose to 25 from eight in the prior year. However, the number of companies entering receivership is down from 16 in 2006 to 15 in 2007. According to Liam Reddy, director of Experian Ireland's business information division, "this final quarter increase is a direct reflection of the changing and challenging business environment experienced in the latter part of 2007." "The latter part of 2007 was a particularly difficult time for the construction and allied trades sector," Mr. Reddy was quoted by BizWorld as saying. "As with 2006 most of these insolvencies were companies registered within the last 7 to 10 years. It is likely that these fledgling companies have been hit hardest by the slowdown in the market. All sectors are facing a tough year ahead and we found that businesses are finding it more difficult to manage cashflow, with all industries reporting slower payments and greater difficulty in collecting outstanding payments. Lawyers have reported an increase in the number of directors seeking advice as to their obligations should their company get into difficulty and financial institutions and banks have been reviewing their credit policies and tightening up on their overdraft facilities. This all points to tougher times ahead." ========= I T A L Y ========= ALITALIA SPA: Group Posts EUR1.19 Billion Net Debt for November --------------------------------------------------------------- The Alitalia Group's net debt as of Nov. 30, 2007, amounted to EUR1.191 billion, showing a slight increase in net indebtedness of EUR9 million (+0.8%) compared to the situation on Oct. 31, 2007. The net debt of the parent company Alitalia S.p.A. including short-term financial credits for subsidiaries on Nov. 30, 2007, (including short-term financial credits of subsidiaries) amounted to EUR1.183 billion showing a slight increase of EUR4 million (+0.3%) compared to net debt as of Oct. 31, 2007. The Group's cash-to-hand and short-term financial credits as of Nov. 30, 2007, at the Group level and for Alitalia, amounted to EUR395 million and EUR403 million respectively. It should be noted that as of Nov. 30, 2007, there were several leasing contracts at the Group level whose capital share, including lease closure value, amounted to EUR96 million. By comparison, the same figure as of Oct. 31, 2007, amounted to EUR97 million; the corresponding figures for the parent company on Oct. 31, 2007, amounted to EUR84 and EUR10 million respectively. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During November 2007, repayments were made of medium/long-term financing amounting to about EUR23 million. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on Nov. 30, 2007, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, there were no outstanding sums or payment irregularities on Nov. 30, 2007, both for the parent company and for other Group companies, except for those relating to disputed situations. Regarding the latter, decisions are still pending for the petitions filed by Alitalia regarding: -- an injunction related to supposed different pricing policies, issued by a carrier for EUR6 million (two decrees); -- another injunction issued by a supplier of on-board movies for EUR1.2 million (two decrees); -- an injunction has been issued by an IT services supplier for EUR812,000; -- an injunction has been issued by an Italian subsidiary of an air carrier bankruptcy for EUR288,000; -- another injunction has been issued by a maintenance services supplier for EUR492,000; -- an injunction has been issued by the special manager of a firm for presumed debts relating to air ticket sales, for EUR3.2 million; -- one injunction issued by a fuel supplier for about EUR1 million. There are no other injunction orders or executive actions undertaken by creditors notified as of Nov. 30, 2007, nor are there any threats by suppliers to suspend operations. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Sells Heathrow Slots for EUR92 Million ---------------------------------------------------- Alitalia S.p.A. disclosed that agreement has been reached for the exchange of three pairs of slots at London's Heathrow airport. These slots are considered non strategic in the Company's 2008- 2010 business plan since the Company holds a further ten pairs of slots at Heathrow. The completion of the exchange will take place in two stages, corresponding to the IATA 2008-09 operative seasons. The first stage has provided a fee of EUR54 million at the current exchange rate at the time of the operation, to be included on the 2007 balance sheet. The fee for completion of the second stage will be included on the 2008 balance sheet, using the same exchange rate parameters, the figure is estimated at EUR38 million. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: November 2007 Passenger Traffic Up by 0.7% -------------------------------------------------------- Alitalia S.p.A.'s November 2007 traffic data compared to the same period in 2006 showed an increase in passenger business and a decrease in cargo business. Passenger business showed an increase in terms of traffic (+0.7%) with a decrease of capacity offered by 0.7% compared with the same period of 2006. November 2007 Cargo statistics, compared to November 2006, showed a decrease in terms of goods flown (-5.3%) with capacity offered down 7.2%. Passengers Operations Traffic, measured in Revenue Passenger Kilometers, increased by 0.7% and the capacity, measured in Available Seat Kilometers, decreased by 0.7%. Therefore load factor increased by 1.0 percentage points reaching 70.3%. Alitalia carried 1.8 million passengers, up 1.1% compared to the previous year. Detailed comparisons with November 2006: -- Domestic Passenger Network: traffic increased by 4.4% with offered capacity up 3.9%. Load factor was 59.0%; -- International Passenger Network: traffic decreased by 1.0% and offered capacity decreased by 3.6%. Load factor was 63.8%; -- Intercontinental Passenger Network: traffic increased by 0.7% and capacity was in line with November 2006. Load factor was 80.0%. Cargo Operations November 2007 Cargo performance showed, compared to November 2006, a traffic decrease by 5.3% (traffic, measured in terms of Revenue Ton Kilometers) while capacity was down 7.2%. Overall Load factor was 72.2% with an increase by 1.4 percentage points. Regarding the All-Cargo sector, Load factor was 80.3% with an increase by 7.3 percentage points compared with the same period of 2006. About Alitalia Headquart