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, January 25, 2008, Vol. 9, No. 18 Headlines A U S T R I A HOLZBAU KLAURA: Klagenfurt Court Orders Business Shutdown JOHANN KAPPER: Claims Registration Period Ends January 31 KKB KURT: Claims Registration Period Ends January 29 LADSTATTER LLC: Steyr Court Orders Business Shutdown MAJNOONI DIZAJTEKIEH: Vienna Court Orders Business Shutdown MM HANDEL: Linz Court Orders Business Shutdown P & M BAU: Vienna Court Orders Business Shutdown SARKOEZI LLC: Vienna Court Orders Business Shutdown B E L G I U M QUEBECOR WORLD: Obtains Creditor Protection Under CCAA (Canada) QUEBECOR WORLD: Wants Ernst & Young as CCAA (Canada) Monitor QUEBECOR WORLD: Bank Lenders Commit US$1 Billion DIP Financing SOLUTIA INC: Credit Woes Delay Chapter 11 Exit F R A N C E DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced LIBERATION SA: Emerges from Bankruptcy Protection REMY COINTREAU: S&P Affirms Rating at BB- on Financial Profile G E R M A N Y C & M BETEILIGUNGS: Claims Registration Period Ends February 14 CRISTALL GMBH: Claims Registration Period Ends February 15 FERDINAND SCHNEIDER: Creditors' Meeting Slated for February 26 GEMAR GRONAU: Claims Registration Period Ends February 14 GIMAS FIOSOFT: Claims Registration Period Ends February 14 GK GAS- UND SANITARTECHNIK: Claims Registration Ends February 15 HERMANN RICHTER: Claims Registration Period Ends February 6 IKB DEUTSCHE: Citi Property Snaps Former HQ for EUR50 Million IKB DEUTSCHE: Moody's Cuts Bank Financial Strength Rating to E+ LF LUFT- UND FILTERTECHNIK: Claims Registration Ends February 15 MOTOR-ELEKTRIK GMBH: Claims Period Ends February 6 OPTIK-HOERGERATE: Claims Registration Period Ends February 14 POLCH GMBH: Claims Registration Period Ends February 4 SAXONIA AUTHOHAUS: Claims Registration Period Ends February 14 SIGNMEINERSEN GMBH: Claims Registration Period Ends February 14 TRW AUTOMOTIVE: Moody's Affirms Ba2 Corporate Family Rating VERBICON VERWALTUNGS-GMBH: Claims Period Ends February 1 VEVIDO GMBH: Claims Registration Period Ends January 29 WBN WAGGONBAU: Claims Registration Period Ends February 14 WERCHOW GMBH: Claims Registration Period Ends February 13 WOLFGANG LIEBERS: Claims Registration Ends February 15 H U N G A R Y PROPEX INC: Wants to Employ Houlihan Lokey as Financial Advisor PROPEX INC: Wants to Employ Miller & Martin as Local Counsel PROPEX INC: Court Approves US$60 Million Credit Facility PROPEX INC: Chapter 11 Filing Cues S&P's Corp. Rating Cut to D I R E L A N D IQON TECHNOLOGIES: Irish High Court Orders Liquidation I T A L Y ALITALIA SPA: Air France-KLM to Retain Alitalia Brand PARMALAT SPA: Milan Court Commences Trial vs. Citigroup et al. K A Z A K H S T A N ARMAN-98 LLP: Proof of Claim Deadline Slated for February 20 BECK-ALJAN LLP: Creditors Must File Claims by February 14 DSK Line: Claims Filing Period Ends February 20 FAST PLAST: Creditors' Claims Due on February 20 JANA KURYLYS-2004: Claims Registration Ends February 20 KAZAKH MORTGAGE: Fitch Rates Class C Notes at BB MECHANO MONTAGE: Proof of Claim Deadline Slated for February 14 SENAKO LLP: Creditors Must File Claims by February 14 SK-STROY LLP: Claims Filing Period Ends February 14 TALION-S LLP: Creditors' Claims Due on February 20 VEGA GROUP: Claims Registration Ends February 14 K Y R G Y Z S T A N CHJOW-SUELAN LLC: Creditors Must File Claims by February 14 CRISTALL LTD: Proof of Claim Deadline Slated for February 14 L U X E M B O U R G MILLICOM INTERNATIONAL: Redeems US$200 Mln 4% Convertible Bonds R U S S I A AIRPORT ZHIGANSK: Creditors Must File Claims by January 29 AMURSKY SHIPBUILDING: Creditors Must File Claims by January 29 BALASHOVSKY TEXTILES: Creditors Must File Claims by February 29 BORSKY MILK: Creditors Must File Claims by February 29 KAMCHATSKY COLD-STORE: Creditors Must File Claims by January 29 KOLKHOZ REVOLUTION: Creditors Must File Claims by February 29 KOSTROMAALCOHOLPROM: Creditors Must File Claims by January 29 MOLPRODUCT-VOLOGDA: Bankruptcy Hearing Slated for March 24 PENZENSKY PRECISION: Creditors Must File Claims by February 29 RASPADSKAYA OJSC: Fitch Watches B+ IDR on Pending Merger SITRONICS JSC: Board Sets General Meeting on March 11 SOKOL LLC: St. Petersburg Bankruptcy Hearing Slated for March 17 S W I T Z E R L A N D AIR-SEA HOLIDAY: Creditors' Liquidation Claims Due by January 31 BINZ ASSOCIATION: Creditors Must File Claims by January 29 COPTHORNE JSC: Creditors' Liquidation Claims Due by January 31 EASYMATIC TICINO: Creditors Must File Claims by January 31 FREIHOF BEIZLI: Creditors' Liquidation Claims Due by January 31 FRINGER LLC: Creditors' Liquidation Claims Due by January 31 ITLINE LLC: Creditors' Liquidation Claims Due by January 31 MDM GIPS: St. Gallen Court Starts Bankruptcy Proceedings SOLVINCI MATERIALS: Aargau Court Starts Bankruptcy Proceedings WIGESS JSC: Creditors' Liquidation Claims Due by January 30 X-RITE INC: Names Lynn Lyall as EVP, CFO & Secretary U K R A I N E ELITAL LLC: Proofs of Claim Filing Ends February 2 LIMITEKS LLC: Proofs of Claim Filing Ends February 2 MAGNIY CJSC: Olena Goshovska Named as Liquidator NAFTOGAZ UKRAINY: To Receive UAH2 Billion Under 2008 Budget PRIVAT-HOLDING: Shareholders Opt for Liquidation SOUTH RIVER: Creditors Must File Claims by February 2 UKRAINIAN FOOD: Proofs of Claim Filing Ends February 2 ZEUS 2006: Proofs of Claim Filing Ends February 2 U N I T E D K I N G D O M BOMBARDIER INC: Earns US$91 Million in 3rd Quarter Ended Oct. 31 CABTIVATE: Still in Liquidation; IMTV Acquires Software Rights EMI GROUP: Chairman Tables Bid for Chrysalis Group GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally GETTY IMAGES: Board of Directors Explores Strategic Options HURST PARNELL: Brings In Liquidators from KPMG K.J.M. TODD: Michael Young Leads Liquidation Procedure M & R TRANSPORT: Calls In Liquidators from Menzies NORTHERN ROCK: Welcomes Paul Thompson as Non-Executive Director ORION FINANCE: Moody's Cuts Rating to B1 on Senior Notes ROGER MILLMORE: Joint Liquidators Take Over Operations SHAW GROUP: Finalizes Little Gypsy 3 Re-Power Project Agreement SOURCE CLAIM: Taps Liquidators from Grant Thornton STAFFORDSHIRE EXPRESS: Taps Liquidators from Moore Stephens STANSTED AIRPORT: Appoints Michael Young as Liquidator UJIMA HOUSING: Housing Corporation to Probe Collapse WILDEN CONSTRUCTION: Claims Filing Period Ends February 29 * BOOK REVIEW: American Commercial Banking: A History ********* ============= A U S T R I A ============= HOLZBAU KLAURA: Klagenfurt Court Orders Business Shutdown --------------------------------------------------------- The Land Court of Klagenfurt entered Dec. 20, 2007 an order shutting down the business of LLC Holzbau Klaura (FN 121666x). Court-appointed estate administrator Manfred Opetnik 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. Manfred Opetnik Hauptplatz 2 9100 Voelkermarkt Austria Tel: 04232/4170 Fax: 04232/4170-3 E-mail: kanzlei@ra-opetnik.at Headquartered in Bad Eisenkappel, Austria, the Debtor declared bankruptcy on Dec. 19, 2007 (Bankr. Case No 40 S 67/07d). JOHANN KAPPER: Claims Registration Period Ends January 31 --------------------------------------------------------- Creditors owed money by LLC Johann Kapper (FN 81017v) have until Jan. 31, 2008 to file written proofs of claim to court-appointed estate administrator Norbert Scherbaum at: Dr. Norbert Scherbaum Advocacy LLC Scherbaum/Seebacher Rechtsawalte Einspinnergasse 3 Second Floor 8010 Graz Austria Tel: 0316/832460 Fax: 0316/832460-20 E-mail: office@scherbaum-seebacher.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 7, 2008 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 222 Second Floor Graz Austria Headquartered in St. Stefan im Rosental, Austria, the Debtor declared bankruptcy on Dec. 17, 2007 (Bankr. Case No. 26 S 118/07h). KKB KURT: Claims Registration Period Ends January 29 ---------------------------------------------------- Creditors owed money by LLC KKB Kurt Berger (FN 269919s) have until Jan. 29, 2008 to file written proofs of claim to court- appointed estate administrator Wolfgang Kempf at: Dr.Wolfgang Kempf Buergerstrasse 41 4020 Linz Austria Tel: 0732/777207 Fax: 0732/782570 E-mail: ra.kempf.linz@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 12, 2008 for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Hall 522 Fifth Floor Linz Austria Headquartered in Leonding, Austria, the Debtor declared bankruptcy on Dec. 19, 2007 (Bankr. Case No. 38 S 66/07w). LADSTATTER LLC: Steyr Court Orders Business Shutdown ---------------------------------------------------- The Land Court of Steyr entered Dec. 12, 2007 an order shutting down the business of LLC Ladstatter (FN 256580z). Court-appointed estate administrator Heinz Kassmannhuber 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. Heinz Kassmannhuber c/o Dr. Gerwald Schmidberger Stelzhamerstrasse 11 4400 Steyr Austria Tel: 07252/50 300 E-mail: office@sks-law.at Headquartered in Wolfern, Austria, the Debtor declared bankruptcy on Dec. 7, 2007 (Bankr. Case No 14 S 43/07g). Gerwald Schmidberger represents Dr. Kassmannhuber in the bankruptcy proceedings. MAJNOONI DIZAJTEKIEH: Vienna Court Orders Business Shutdown ----------------------------------------------------------- The Trade Court of Vienna entered Dec. 20, 2007 an order shutting down the business of KEG Majnooni Dizajtekieh(FN 207407k). Court-appointed estate administrator Helmut Platzgummer recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Caroline Klus c/o Dr. Helmut Platzgummer Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Serie Fax: 533 19 39 39 E-mail: helmut.platzgummer@lp-law.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 5, 2007(Bankr. Case No 5 S 137/07t). Helmut Platzgummer represents Mag. Klus in the bankruptcy proceedings. MM HANDEL: Linz Court Orders Business Shutdown ---------------------------------------------- The Land Court of Linz entered Dec. 19, 2007 an order shutting down the business of LLC MM Handel (FN 291583z). Court-appointed estate administrator Georg Maxwald recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Georg Maxwald Dametzstrasse 51 4020 Linz Austria Tel: 77 11 41 Fax: 78 30 44 E-mail: maxwald-bauer@aon.at Headquartered in Linz, Austria, the Debtor declared bankruptcy on Dec. 12, 2007 (Bankr. Case No 12 S 94/07x). P & M BAU: Vienna Court Orders Business Shutdown ------------------------------------------------ The Trade Court of Vienna entered Dec. 13, 2007 an order shutting down the business of LLC P & M Bau u. Handel (FN 242130z). Court-appointed estate administrator Kurt Freyler 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. Kurt Freyler c/o Dr. Hans Rant Seilerstatte 5 1010 Vienna Austria Tel: 513 31 65 Fax: 512 20 01 E-mail: ra-kanzlei@rant-freyler.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 4, 2007 (Bankr. Case No 6 S 155/07x). Hans Rant represents Dr. Freyler in the bankruptcy proceedings. SARKOEZI LLC: Vienna Court Orders Business Shutdown --------------------------------------------------- The Trade Court of Vienna entered Dec. 17, 2007 an order shutting down the business of LLC SARKOEZI (FN 287035k). Court-appointed estate administrator Philipp Dobner 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. Philipp Dobner c/o Dr. Peter Schulyok Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: dobner@sup.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 3, 2007 (Bankr. Case No 6 S 154/07z). Peter Schulyok represents Dr. Dobner in the bankruptcy proceedings. ============= B E L G I U M ============= QUEBECOR WORLD: Obtains Creditor Protection Under CCAA (Canada) --------------------------------------------------------------- Quebecor World Inc. and its subsidiaries obtained an order for creditor protection under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada. Until and including Feb. 20, 2008, creditors and parties-in- interest are barred from commencing or continuing any action against the Debtors, their officers and directors, or foreclose on the Debtors' assets, except without the written consent of the Debtors; and Ernst & Young Inc., the Court-appointed Monitor under the CCAA process; or without leave of the CCAA Court. Quebecor World will remain in possession of the property and continue to carry on their business and financial affairs until further order from the CCAA Court. To facilitate the orderly restructuring of their business and financial affairs, the Debtors have the right, subject to the Monitor's approval and subject to the terms of their CDNUS$1,000,000,000 with Credit Suisse and Morgan Stanley, to: -- cease, downsize or shut down business operations; -- pursue all avenues to market and sell assets; -- dispose of Property provided that the purchase in each transaction does not exceed CDNUS$10,000,000 or CDNUS$50,000,000 in the aggregate; -- terminate employment of certain employees; -- vacate or abandon any leased property on seven days' notice to the landlord; and -- repudiate agreements and contracts with counterparties. The Debtors will indemnify each of their directors and officers from liabilities, except to the extent of a director's or officer's breach of fiduciary duties or gross negligence. The Applicants' D&Os hold a security interest in the Debtors' assets of up to CDNUS$32,000,000. The D&O Charge will apply to the extent that the directors and officers do not have coverage under any D&O insurance. Quebecor World's operations in Latin America and Europe are excluded from CCAA protection. Those subsidiaries will continue operating in the normal course of business. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and its debtor-affiliates filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Debtors listed total assets of US$5,554,900,000 and total debts of US$4,140,700,000 when they filed for bankruptcy. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. (Quebecor World Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: Wants Ernst & Young as CCAA (Canada) Monitor ------------------------------------------------------------ Quebecor World Inc. and its Canadian debtor-affiliates ask the Honorable Justice Robert Mongeon at the Superior Court of Justice (Commercial Division), for the Province of Quebec, in Canada, to appoint Ernst & Young Inc., as their monitor in its insolvency proceedings under the Canadian Companies' Creditors Arrangement Act. As an officer of the Canadian Court, E&Y will monitor the Debtors' business and financial affairs. Specifically, E&Y will: (a) assist the Debtors in deadline with their creditors and other interested parties during the Stay Period; (b) assist the Debtors with the preparation of their cash flow projections and any other projections or reports and the development, negotiation, and implementation of a plan of reorganization, including the preparation of the debtor-in-possession projections; (c) advise and assist the Debtors to review their business and assess opportunities for cost reduction, revenue enhancement, and operating efficiencies; (d) assist the Debtors with the restructuring of their businesses and in their negotiations with their creditors and other interested parties, and with the holding and administration of any meetings held to consider a reorganization plan; (e) report to the Canadian Court the state of the Debtors' business and financial affairs or developments in their insolvency proceedings or any related proceedings within the time limits provided in the CCAA, and provide copies of those reports to the DIP Lenders; (f) report to the Court and interested parties its assessment of, and recommendations with respect to, a reorganization plan; (g) retain and employ agents, advisers, and other assistants as are reasonably necessary to carry out the terms of the Canadian Court's order; (h) engage legal counsel to the extent it considers necessary in connection with the exercise of its powers as monitor of the Debtors' Canadian insolvency proceedings; (i) may act as a "foreign representative" of the Debtors in any proceedings outside of Canada, and will assist the Canadian Court in coordination of the proceedings under Chapter 11 of the United States Bankruptcy Code; (j) may give any consent or approval as are contemplated by the Canadian Court order; and (k) perform other duties as are required by the Canadian Court Order, the CCAA, or the Canadian Court from time to time. The Monitor will not interfere with the Debtors' business and financial affairs, and is not empowered to take possession of the Debtors' property nor manage any of their business or financial affairs. The Debtors and their directors, officers, employees and agents, accountants, auditors, and all other related parties will provide the Monitor with unrestricted access to all of the Debtors' properties, including premises, books, records, data, including data in electronic form, and all other documents of the Debtors in connection with the Monitor's duties and responsibilities. The Monitor may provide creditors and other interested parties with information relating to the Debtors. The Monitor, however, will not disclose any information that is considered confidential, proprietary or competitive, or where the disclosure of information would be prejudicial to the Debtors' restructuring process. The Monitor will not incur any liability or obligation as a result of its appointment and the fulfillment of its duties, except any liability arising from its gross negligence or willful misconduct. No action will be commenced against the Monitor relating to its appointment, except without prior leave of the Canadian Court. The Debtors will entitle the Monitor, its legal counsel, as well as the Debtors' legal counsel, an administration charge on the Debtors' Property, not exceeding CDNUS$5,000,000. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and its debtor-affiliates filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Debtors listed total assets of US$5,554,900,000 and total debts of US$4,140,700,000 when they filed for bankruptcy. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. (Quebecor World Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: Bank Lenders Commit US$1 Billion DIP Financing -------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates received commitment of up to US$1,000,000,000 of senior secured credit financing facilities from a syndicate of banks led by Credit Suisse Securities (USA), LLC, and Morgan Stanley Senior Funding Inc. The Debtors project that DIP borrowings will increase an approximately US$788,000,000 by the end of April 20, 2008. In view of the size of their businesses and the fluctuations in their cash needs, the Debtors have determined that a US$1,000,000,000 facility is necessary to adequately finance them during their restructuring. The DIP Facility will be composed of: (i) up to US$600,000,000 senior secured term loan facility, and (ii) up to US$400,000,000 senior secured revolving credit facility. The Revolving Credit Facility also provides an aggregate of US$100,000,000 letter of credit subfacility and an aggregate of US$25,000,000 swing line subfacility. The Revolving Credit Facility availability is also subject to a borrowing base calculation with regards to the Debtors' accounts receivable and inventory. Proceeds of the DIP Facility will be used by the Debtors: (a) to repurchase their existing North American accounts receivable securitization facility of approximately US$425,000,000; (b) for working capital and other general corporate purposes of the debtors and, subject to limitations to be agreed, non-debtors; and (c) for the payment of fees and expenses incurred in connection with the DIP transactions. The Term Loan Facility will be prepaid with 100% of the net cash proceeds of all asset sales of property and issuances, offerings or placements of debt obligations. The Debtors will comply with a minimum consolidated Liquidity Availability covenant of US$50,000,000 and a minimum consolidated EBITDAR covenant. The Debtors are also required to prepare a rolling 13-week cash flow forecast to be updated weekly. The DIP Facility will be secured by a perfected first priority charge of all equity interests of Quebec World (USA), Inc., a perfected first priority charge of all equity interests held by QWI in each of the other Debtors, and a perfected first priority charge in all assets of QWI and each of the other Debtors. The superpriority perfected security interests and charges and administrative claims against the U.S. Debtors will be subject and subordinate to a Carve-Out for the payment of (a) allowed fees and disbursements of professionals hired by the U.S. Debtors and a statutory committee of unsecured creditors appointed by the U.S. Court; and (b) in the event of a conversion of the bankruptcy cases to that under Chapter 7 of the U.S. Bankruptcy Code, the fees and expenses of a Chapter 7 trustee. The superpriority perfected security interests in the assets of QWI will be subject and subordinate to a CAUS$5,000,00 administration charge. The interest rate payable in connection with the revolving credit facility will be LIBOR plus 2.25% or ABR plus 1.25%; for the term loan will be LIBOR plus 3.75% or ABR plus 2.75%; and ABR plus 1.25% for the swing interest line. Default rate is the applicable interest rate plus 2.0% per annum. The DIP Facility will contain a minimum consolidated Liquidity Availability covenant of US$50,000,000, and a minimum consolidated EBITDAR covenant applicable to QWI and its subsidiaries. The DIP Facility will mature on the earliest of: -- 18 months after the Petition Date; -- 45 days after the entry of an interim DIP order if a final DIP order has not been entered before the expiration of the 45-day period; -- the substantial consummation of a plan of reorganization filed with the U.S. Bankruptcy Court; or -- the acceleration of the loans and the termination of the commitment with respect to the DIP Facilities in accordance with the DIP Loan Documents. The DIP Lenders is represented by Shearman & Sterling, LLP, in the United States, and Blake, Cassels & Graydon, LLP, in Canada. The Debtors prepared a 13-week consolidated North American cash flow forecast for weeks ending Jan. 27, 2008, through April 20, 2008. The cash flow forecast is in consideration of the Debtors' reorganization proceedings before the U.S. Bankruptcy Court for the Southern District of New York and insolvency proceedings before the Superior Court of Justice (Commercial Division), for the Province of Quebec, in Canada. The cash flow indicates that the Debtors' total receipts at the end of the 13-week Period will be US$498,000,000. They anticipate that their disbursements, which include payments of professional fees and workers compensation, will total US$1,161,000,000. A full-text copy of the 13-Week Cash Flow is available free of charge at http://bankrupt.com/misc/quebecor_13WeekBudget.pdf About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and its debtor-affiliates filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Debtors listed total assets of US$5,554,900,000 and total debts of US$4,140,700,000 when they filed for bankruptcy. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. (Quebecor World Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: Credit Woes Delay Chapter 11 Exit ---------------------------------------------- Solutia Inc. discloses that the effective date of its confirmed plan of reorganization and its emergence from Chapter 11 will be delayed from the previously anticipated Jan. 25, 2008 emergence date. As previously reported, Solutia's Consensual Plan, which was confirmed on Nov. 29, 2007, is subject to numerous closing conditions, including entering into an exit financing facility. The lead arrangers of Solutia's exit financing -- Citigroup Global Markets Inc. and certain of its affiliates, Goldman Sachs Credit Partners L.P., Deutsche Bank Trust Company Americas and Deutsche Bank Securities Inc. -- informed Solutia yesterday that, in their view, due to continuing conditions in the credit markets, they have not been able to complete the exit financing they committed to on October 25, 2007. The exit financing consists of a US$1,200,000,000 senior secured term loan facility, a US$400,000,000 senior secured asset-based revolving credit facility and US$400,000,000 aggregate principal amount of senior unsecured notes. Under the terms of the commitment, the lead arrangers of the exit financing have an obligation, subject to certain conditions, to provide the term loan facility, the revolving credit facility and, in case they are not able to successfully market the senior unsecured notes, a US$400,000,000 senior unsecured bridge facility. The commitment expires on Feb. 29, 2008. Solutia said in a statement that one of the conditions of the lead arrangers' obligations to provide those credit facilities is the absence of any adverse change since Oct. 25, 2007, in the loan syndication, financial or capital markets generally that, in their reasonable judgment, materially impairs syndication of the proposed loan facilities. The lead arrangers have asserted that this condition has not been satisfied. Solutia, however, believes that the ongoing conditions in the credit markets began long before October 25, 2007. Accordingly, the company believes that the lead arrangers are required to fund their commitments on or before Feb. 29, 2008. "While we disagree with the position asserted by the lead arrangers, we intend to continue to work with them to successfully syndicate the exit facility," said Jeffry N. Quinn, Chairman, President and Chief Executive Officer of Solutia. The delayed deal has ramifications for recoveries throughout the capital markets and for companies that go into default, said Matthew Dundon, head of research at Miller Tabak Roberts Securities, according to Reuters. "An obvious conclusion is the market is demanding better terms and higher spreads now than it was then," Mr. Dundon said. "It indicates that the bank loan market remains strained. "In fact it is not just hard to sell debt that you agreed to originate before last summer, it may be hard to sell debt that you agreed to originate in October," Mr. Dundon added, citing changes in fiscal policy, the economic outlook and concerns about the liquidity of credit markets and bond insurance. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on Dec. 10, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. =========== F R A N C E =========== DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced -------------------------------------------------------- As widely reported, the Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York said he will approve Delphi Corp. and its debtor-affiliates' First Amended Joint Plan of Reorganization on the condition that the total payout of cash bonuses to top executives is reduced. "I am prepared to enter the confirmation order, provided the management compensation plan is changed," Judge Drain said at the confirmation hearings, which began Jan. 17, 2008. Reuters reports the Court wants the emergence bonus for Delphi's officers reduced to US$16.5 million from the US$87.9 million that Delphi had proposed to award to 500 managers upon emergence. But the United Auto Workers and the International Union of Electronic Workers-Communications Workers of America objected to payments, citing among other things, that while unionized Delphi employees suffered pay-cuts, the managers, who are already adequately compensated, are given generous bonuses. The management compensation plan seeks to grant an US$8.3 million "performance payment" to Executive Chairman Robert Miller; and a US$5.3 million cash emergence payment to Chief Executive Officer Rodney O'Neal. Delphi aims to emerge from Chapter 11 by the end of first quarter of 2008. Delphi, however, has yet to secure the US$6.1 billion exit financing to pay claims and fund its post- bankruptcy operations. According to The Associated Press, a Delphi executive said that the company expects to obtain a commitment for US$4.5 billion of the financing by Jan. 23, 2008, but there has been no indication whether the company is close to securing the loans. Delphi told the Court that the First Amended Plan satisfies the conditions for confirmation under Section 1129 of the Bankruptcy Code. It noted that the Plan has been approved by 81% of 4,000 creditors entitled to vote on the Plan. According to Bloomberg News, Delphi resolved or had overruled objections to earlier changes to the Plan, including those triggered by a US$2.55 billion investment in Delphi by a group of investors led by Appaloosa Management LP. Delphi, Bloomberg News reports, said that Davidson Kempner Capital Management LLC, Whitebox Advisors LLC and other bondholders have agreed to withdraw their objections, in exchange for, among other things, payment of the group's legal fees up to US$5 million. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court will convene the hearing to consider confirmation of the Plan on Jan. 17, 2008. (Delphi Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000) LIBERATION SA: Emerges from Bankruptcy Protection ------------------------------------------------- French Daily newspaper Liberation SA came out from bankruptcy with its EUR15 million debt reduced and restructured, the Financial Times reports, citing Les Echos. According to the report, Liberation's main shareholders will inject EUR15 million in capital with the paper planning to break even in 2008. As reported in the Troubled Company Reporter-Europe, the paper sought a three-month extension, ending December 2007, of its bankruptcy protection in the Paris commercial court as managers intended to demonstrate that Liberation is a viable business. FT relates that aside from investing on its online presence, Liberation is also focusing on new products and events, including distributing DVDs with its weekend edition. The Paris commercial court granted bankruptcy protection to the French daily newspaper on Oct. 4, 2006. REMY COINTREAU: S&P Affirms Rating at BB- on Financial Profile -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed the 'BB-' long-term corporate credit and senior unsecured debt ratings on Remy Cointreau S.A. Standard & Poor's Ratings Services revised the outlook to stable from negative. The outlook revision reflects the positive evolution of the group's financial metrics and S&P's expectation that the group's cash-generation capacity will be resilient enough over time to keep its financial profile in line with their guidance. "The ratings reflect Remy Cointreau's aggressive financial profile, limited discretionary cash flow generation, significant use of uncommitted lines for liquidity management, and exposure to currency evolution, despite its leading position in cognac and its presence in other high-margin drink categories," said Standard & Poor's credit analyst Michael Seewald. At Sept. 30, 2007, the group's unadjusted financial debt totaled EUR580 million. "We expect that the resilience of Remy Cointreau's core brands will allow for continued progress in prices and mix management, offsetting potential shortfalls arising from foreign exchange risk and slowing consumer spending in the U.S., and keeping the group's financial metrics in line with our expectations for the rating," said Mr. Seewald. S&P could revise the ratings or outlook upward if Remy manages to improve its cash flows to levels sufficient to allow for further sustainable deleveraging, despite the group's expected still-high dividend payments (EUR50 million in the year to September 2007) and the one-off impact of the group's exit fee from its current distribution arrangements to be paid in March 2009. Conversely, downward pressure will arise if Remy fails to sustain a financial profile in line with the ratings due to operating performance, acquisitions, or increased shareholder returns. ============= G E R M A N Y ============= C & M BETEILIGUNGS: Claims Registration Period Ends February 14 --------------------------------------------------------------- Creditors of C & M Beteiligungs-GmbH have until Feb. 14, 2008 to register their claims with court-appointed insolvency manager Bernd Sundermeier. Creditors and other interested parties are encouraged to attend the meeting at 18:15 a.m. on March 6, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Oldenburg Meeting hall 2 Ground Floor Elisabethstrasse 6 26135 Oldenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bernd Sundermeier Alte Wiefelsteder Strasse 3 26316 Varel Germany Tel: 04451 913880 Fax: 04451 913839 The District Court of Oldenburg opened bankruptcy proceedings against C & M Beteiligungs-GmbH on Dec. 18, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: C & M Beteiligungs-GmbH Raiffeisenstrasse 17 26180 Rastede Germany CRISTALL GMBH: Claims Registration Period Ends February 15 ---------------------------------------------------------- Creditors of Cristall GmbH have until Feb. 15, 2008, to register their claims with court-appointed insolvency manager Mathias Dorn. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Feb. 27, 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 Ravensburg Hall 3 Herrenstr. 42 88212 Ravensburg 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: Mathias Dorn Allgauer Str. 1 87435 Kempten Germany The District Court of Ravensburg opened bankruptcy proceedings against Cristall GmbH on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cristall GmbH Leutkircher Strasse 18 88316 Isny Germany FERDINAND SCHNEIDER: Creditors' Meeting Slated for February 26 -------------------------------------------------------------- The court-appointed insolvency manager for Ferdinand Schneider GmbH & Co. KG, Harald Silz will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on Feb. 26, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Darmstadt Hall 4.310 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on April 29, 2008 at the same venue. Creditors have until March 18, 2008 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Harald Silz Adolfsallee 24 65185 Wiesbaden Germany Tel: 0611-1504-0 Fax: 0611-301774 The District Court of Darmstadt opened bankruptcy proceedings against Ferdinand Schneider GmbH & Co. KG on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ferdinand Schneider GmbH & Co. KG Attn: Ferdinand Schneider, Manager Eisenstrasse 50 65428 Ruesselsheim Germany GEMAR GRONAU: Claims Registration Period Ends February 14 --------------------------------------------------------- Creditors of GEMAR Gronau Zeitarbeit GmbH have until Feb. 14, 2008 to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on March 6, 2007, 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 Muenster Meeting Hall 112 B First Floor Gerichtsstr. 2-6 48149 Muenster 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: Andreas Sontopski Gnoiener Platz 10 48493 Wettringen Germany Tel: 02557/9384-0 Fax: +492557938450 The District Court of Muenster opened bankruptcy proceedings against GEMAR Gronau Zeitarbeit GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GEMAR Gronau Zeitarbeit GmbH Attn: Albert Winkel, Manager Neustrasse 34 48599 Gronau Germany GIMAS FIOSOFT: Claims Registration Period Ends February 14 ---------------------------------------------------------- Creditors of GIMAS FIOSOFT GmbH have until Feb. 14, 2008 to register their claims with court-appointed insolvency manager Ingo Thurm. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on March 3, 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 Hildesheim Hall 124 Main Building Kaiserstrasse 60 31134 Hildesheim 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: Ingo Thurm Aegidientorplatz 2B 30159 Hannover Germany Tel: 0511/475577-47 Fax: 0511/475577-99 E-mail: info@thurm-insolvenz.de The District Court of Hildesheim opened bankruptcy proceedings against GIMAS FIOSOFT GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GIMAS FIOSOFT GmbH Attn: Heiko Heinemann, Manager Daimlerring 6B 31135 Hildesheim Germany GK GAS- UND SANITARTECHNIK: Claims Registration Ends February 15 ---------------------------------------------------------------- Creditors of GK Gas- und Sanitartechnik GmbH have until Feb. 15, 2008 to register their claims with court-appointed insolvency manager Stefanie Kaufmann. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on March 12, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ludwigshafen am Rhein Meeting Hall 7 Wittelsbachstr. 10 67061 Ludwigshafen/Rhein 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: Stefanie Kaufmann Roxheimer Str. 17 67240 Bobenheim-Roxheim Germany The District Court of Ludwigshafen/Rhein opened bankruptcy proceedings against GK Gas- und Sanitartechnik GmbH on Oct. 25, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GK Gas- und Sanit�rtechnik GmbH Attn: Hermann Gaschott and Friedhelm Koppenhoefer, Managers Albertstrasse 5 67227 Frankenthal Germany HERMANN RICHTER: Claims Registration Period Ends February 6 ---------------------------------------------------------- Creditors of Hermann Richter GmbH & Co. KG have until Feb. 6, 2008 to register their claims with court-appointed insolvency manager Manfred Vellmer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Feb. 27, 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 Muenster Meeting Hall 101 B Gerichtsstr. 2-6 48149 Muenster 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: Manfred Vellmer Adalbertstr. 8 48565 Steinfurt Germany Tel: 02552/638710 Fax: +4925526387111 The District Court of Muenster opened bankruptcy proceedings against Hermann Richter GmbH & Co. KG on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hermann Richter GmbH & Co. KG Attn: Udo Richter, Manager Hauptstr. 66 48607 Ochtrup Germany IKB DEUTSCHE: Citi Property Snaps Former HQ for EUR50 Million ------------------------------------------------------------- Citi Property Investors has purchased IKB Deutsche Industriebank's former headquarters in Dusseldorf's city center for EUR50 million, Jonathan Brasse writes for Propertyweek.com. CIP, a unit of Citi Alternative Investments, bought the 55-year old 107,640 sq. ft. building from Rockspring Property Investment Managers, the report adds. Citi Property Investors is the real estate investment management business of Citi. About IKB Deutsche Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Jan. 9, 2008, Fitch Ratings has upgraded IKB Deutsche Industriebank AG's Individual rating to 'E' from 'F'. IKB's Long-term Issuer Default of 'A+' and Short- term IDR of 'F1' are both placed on Rating Watch Evolving. Its Support Rating is affirmed at '1'. Its senior-unsecured issues are rated 'A+', the commercial papers F1 and its subordinated debt issues are rated 'A', all placed on RWE. IKB DEUTSCHE: Moody's Cuts Bank Financial Strength Rating to E+ --------------------------------------------------------------- Moody's Investors Service downgraded the bank financial strength rating of IKB Deutsche Industriebank to E+ from D-, concluding the review for possible downgrade initiated last autumn. The outlook on the BFSR is now developing. Concurrently, IKB's long-term debt and deposit ratings were downgraded to A3 from A2 and the subordinated debt ratings have been downgraded to Baa1 from A3. The short-term ratings were downgraded to Prime-2 from Prime-1. All of these ratings remain on review for possible further downgrade, as do the Caa1 ratings on the bank's junior subordinated securities and hybrid capital instruments eligible for Tier 1 capital. Tuesday's downgrade of IKB's BFSR to E+ is based on Moody's concerns with regard to: (1) The remaining exposure in IKB's EUR6.2 billion on- balance-sheet investment portfolio to further value adjustments in view of the further deterioration in the market values of structured credit products, which could result in losses potentially exceeding the risk shield of EUR1 billion provided by the main shareholder Kreditanstalt fuer Wiederaufbau (rated Aaa). (2) IKB's tight capitalisation, which not only limits the bank's capacity to absorb further losses despite the recent strengthening of capital in the form of the issuance of a mandatory convertible bond which was fully subscribed by KfW (as part of the rescue package launched by KfW and the banking pool in November 2007), but also restricts IKB's flexibility to generate new business and thus weighs on the bank's ability to generate operating profits going forward. The developing outlook on the BFSR reflects, on the one hand, the potential negative impact from the above-mentioned risks, but also, on the other hand, the continuing beneficial impact from the bank's franchise as an important lender and service provider to German medium-sized companies (Mittelstand). Moody's continues to recognize that the bank enjoys strong client relationships and has expertise in this segment which could allow the bank to continue its core business going forward without the need for support on an ongoing basis once the risks from its investment portfolio have been neutralized. Although Moody's expectation of very strong support for IKB remains unchanged at present, the lower BFSR has negatively impacted IKB's other ratings Moody's also noted that any marginal sign of weakening support going forward could have a disproportionate negative impact on IKB's debt and deposit ratings. Moody's decision to maintain the review for possible downgrade for the debt and deposit ratings takes into consideration the following factors: (1) The potential changes to the bank's credit profile (as highlighted already by the downgrade of the BFSR). (2) The remaining uncertainties regarding the bank's future ownership particularly as IKB's main shareholder KfW (37.8%) has formally announced the start of the process to sell the bank. (3) The high sensitivity of the current ratings to a marginal weakening in the support assumptions, even within the 'very high' category of support. Headquartered in Duesseldorf, Germany, IKB reported total assets of EUR52 billion at the end of March 2007. LF LUFT- UND FILTERTECHNIK: Claims Registration Ends February 15 ---------------------------------------------------------------- Creditors of LF Luft- und Filtertechnik GmbH have until Feb. 15, 2008 to register their claims with court-appointed insolvency manager Peter Gangfuss. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 4, 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 Hanau Area E03 Engelhardstrasse 21 63450 Hanau Germany The Court will also verify the claims set out in the insolvency manager's report at 10:10 a.m. on the the same date at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Gangfuss Hainstr. 3a, D 63486 Bruchkoebel Germany Tel: 06181/579900 Fax: 06181/5799020 The District Court of Hanau opened bankruptcy proceedings against LF Luft- und Filtertechnik GmbH on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LF Luft- und Filtertechnik GmbH Industriestr. 7 63579 Freigericht Germany Attn: Walter Paasen, Manager Bornrain 13 63789 Linsengericht-Grossenhausen Germany MOTOR-ELEKTRIK GMBH: Claims Period Ends February 6 -------------------------------------------------- Creditors of Motor-Elektrik GmbH have until Feb. 6, 2008 to register their claims with court-appointed insolvency manager Markus M. Merbecks. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 19, 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 Chemnitz Hall 28 Fuerstenstrasse 21-23 09130 Chemnitz 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: Markus M. Merbecks Leipziger Strasse 58 09113 Chemnitz Germany Tel: (0371) 444610 Fax: (0371) 4446111 E-mail: merbecks@merbecks.de The District Court of Chemnitz opened bankruptcy proceedings against Motor-Elektrik GmbH on Jan. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Motor-Elektrik GmbH Attn: Volker Huebsch, Manager Zwickauer Staatsstr. 2 08393 Meerane Germany OPTIK-HOERGERATE: Claims Registration Period Ends February 14 ------------------------------------------------------------- Creditors of Optik-Hoergerate Engelauf GmbH have until Feb. 14, 2008,to register their claims with court-appointed insolvency manager Andreas Stratenwerth. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 6, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Stratenwerth Lemgoer Str. 4 33604 Bielefeld Germany The District Court of Bielefeld opened bankruptcy proceedings against Optik-Hoergerate Engelauf GmbH on Jan. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Optik-Hoergerate Engelauf GmbH Hauptstr. 54 33647 Bielefeld Germany POLCH GMBH: Claims Registration Period Ends February 4 ------------------------------------------------------ Creditors of Oelpflanzenverwertungsgesellschaft Polch GmbH have until Feb. 4, 2008 to register their claims with court-appointed insolvency manager Annette Dietter. Creditors and other interested parties are encouraged to attend the meeting at 11:12 a.m. on Feb. 21, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Mayen Hall 4 St. Veit-Strasse 38 56727 Mayen 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: Annette Dietter c/o Reuss Ges.f.Insolvenzverw. mbH & Co. KG Schlossstr. 24/Haus 3 65594 Runkel-Dehrn Germany Tel: 06431 / 9777-10 Fax: 06431 / 9777-20 E-mail: limburg@reuss-und-partner.de The District Court of Mayen opened bankruptcy proceedings against Oelpflanzenverwertungsgesellschaft Polch GmbH on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Oelpflanzenverwertungsgesellschaft Polch GmbH Am Bahnhof 9 56751 Polch Germany Attn: Gerd Israel, Manager Ruebererstr. 1 56295 Kerben Germany SAXONIA AUTHOHAUS: Claims Registration Period Ends February 14 -------------------------------------------------------------- Creditors of Saxonia Authohaus VOIT GmbH have until Feb. 14, 2008, to register their claims with court-appointed insolvency manager Stefan Kahnt. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 27, 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 Chemnitz Hall 24 Fuerstenstrasse 21-23 09130 Chemnitz 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: Stefan Kahnt Leipziger Str. 62 09113 Chemnitz Germany Tel: (0371) 262010 Fax: (0371) 2620111 E-mail: chemnitz@pluta.net The District Court of Chemnitz opened bankruptcy proceedings against Saxonia Authohaus VOIT GmbH on Jan. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Saxonia Authohaus VOIT GmbH Attn: Thomas Berndt, Manager Altchemnitzer Strasse 30 09120 Chemnitz Germany SIGNMEINERSEN GMBH: Claims Registration Period Ends February 14 --------------------------------------------------------------- Creditors of Signmeinersen GmbH have until Feb. 14, 2008, to register their claims with court-appointed insolvency manager Paul Niederhagemann. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 6, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Gifhorn Hall 118 Schlossgarten 4 38518 Gifhorn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Paul Niederhagemann Witzlebenstrasse 123 29223 Celle Germany Tel: 05141/540890 Fax: 05141/540891 The District Court of Gifhorn opened bankruptcy proceedings against Signmeinersen GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Signmeinersen GmbH Attn: Wolfgang Guennel Gausekamp 1 38536 Meinersen Germany TRW AUTOMOTIVE: Moody's Affirms Ba2 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service affirmed the ratings of TRW Automotive, Inc: -- Corporate Family Rating, Ba2; -- senior secured bank credit facilities, Baa3; and -- senior unsecured notes, Ba3. The rating outlook was revised to negative from stable. As a leading supplier of components and systems to automotive OEMs, TRW's business profile has many characteristics that are consistent with the assigned Ba2 Corporate Family rating. The company enjoys a well diversified revenue base, including long standing supply arrangements with European and Asian auto makers. Continuous investment in new safety product technologies should support future revenue growth, even as automotive demand softens. While the company's refinancing in 2007 resulted in lower debt costs, debt levels remain high and continues to pressure the company's interest coverage measures. The negative outlook reflects concern that in an environment of weakening economic trends in North America and Europe, TRW could be challenged to sustain financial metrics consistent with its Ba2 rating. For the LTM period ending 9/30/07 EBIT/Interest was about 1.7x, and debt/EBITDA was about 4.1x. While LTM FCF/Debt was negative, Moody's expects the company's fourth quarter free cash flow to be seasonally strong. Recent free cash flow trends have been hurt by timing issues regarding certain customer invoices and growth abroad. However, the company has continued to experience margin pressures and modest free cash flow generation. Moreover, debt levels have remained high resulting from the recent debt refinancing, debt acquired with the Dalphi Metal Espana, S.A. consolidation, and the repurchase of TRW stock from Northrop Grumman Corporation. Moody's expects the company's safety product focus, and its strong geographic, customer and product diversification to continue to support revenue growth even in the face of weaker automotive demand. While TRW has generated steady yearly EBITDA levels, the company's ability to materially reduce debt and thereby improve its interest coverage metrics will be challenged by the current automotive environment both in North America and abroad. These challenges include declining OEM production both in North America and abroad, high raw material costs, and negotiated price downs. TRW will continue to have very good liquidity over the next 12 months. The company's liquidity profile consists of approximately US$473 million of cash and cash equivalents at Sept. 28, 2007, availability under the US$1.4 billion revolving credit facilities was approximately US$600 million, after consideration of letters of credit outstanding and usage under the company's additional borrowing facilities. TRW's covenants are not expected to restrict this access over the next twelve months. Moody's expects free cash flow to be positive in 2008 reflecting stable EBITDA performance and capital expenditures consistent with historical trends. Alternative liquidity arrangements will continue to be limited by the current bank liens over substantially all of the company's assets. These ratings were affirmed: -- Ba2 Corporate Family rating; -- Ba2 Probability of Default rating; -- Baa3 (LGD2, 17%) rating for the US$1.4 billion combined senior secured domestic and global revolving credit facilities; -- Baa3 (LGD2, 17%) rating for the US$600 million senior secured term loan A; -- Baa3 (LGD2, 17%) rating for the US$500 million senior secured term loan B; -- Ba3 (LGD5, 72%) for the US$500 million senior unsecured notes due 2014; -- Ba3 (LGD5, 72%) for the Euro 275 million senior unsecured notes due 2014; -- Ba3 (LGD5, 72%) for the US$600 million senior unsecured notes due 2017; -- SGL-1 Speculative Grade Liquidity Rating. The last rating action was on April 26, 2007, when ratings were assigned to the company's senior secured bank credit facilities. Future events that would be likely to improve TRW Automotive's outlook or ratings include further debt and leverage reduction from free cash flow, or improved operating margins resulting from new business wins or productivity improvements. Consideration for upward outlook or rating migration would arise if any combination of these factors were to reduce leverage to under 3.0x or increase EBIT/interest coverage to a level approaching 3.0x. Consideration for downward rating migration would arise if any combination of factors were to result in leverage sustained at over 3.5x or if EBIT/ Interest coverage sustained at under 2.0x. Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, it employs approximately 63,800 people in 26 countries including Brazil, China, Germany, Italy, among others. Its primary business lines encompass the design, manufacture and sale of active and passive safety related products. Annual revenues are approximately US$14 billion. VERBICON VERWALTUNGS-GMBH: Claims Period Ends February 1 -------------------------------------------------------- Creditors of Verbicon Verwaltungs-GmbH have until Feb. 1, 2008 to register their claims with court-appointed insolvency manager Dr. Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Feb. 22, 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 Muenster Meeting Hall 101 B Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Stephan Thiemann Ludgeristr. 54 48143 Muenster Germany Telefon: 0251/16283-0 Fax: +492511628311 The District Court of Muenster opened bankruptcy proceedings against Verbicon Verwaltungs-GmbH on Dec. 28, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Verbicon Verwaltungs-GmbH Von-Kluck-Strasse 14-16 48151 Muenster Germany Attn: Leo Faltmann, Manager Lasbeck 18 48329 Havixbeck Germany VEVIDO GMBH: Claims Registration Period Ends January 29 ------------------------------------------------------- Creditors of Vevido GmbH & Co. KG have until Jan. 29, 2008 to register their claims with court-appointed insolvency manager Stefan Hinrichs. Creditors and other interested parties are encouraged to attend the meeting at 3:00 p.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 Nebenstelle Meeting Hall 2 Elisabethstrasse 6 26135 Oldenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefan Hinrichs Heiligengeiststrasse 29 26121 Oldenburg Germany Tel: 0441 218910 Fax: 0441 2189139 The District Court of Nebenstelle opened bankruptcy proceedings against Vevido GmbH & Co. KG on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Vevido GmbH & Co. KG Stubbenweg 38 - 40 26125 Oldenburg Germany WBN WAGGONBAU: Claims Registration Period Ends February 14 ---------------------------------------------------------- Creditors of WBN Waggonbau Niesky GmbH have until Feb. 14, 2008, to register their claims with court-appointed insolvency manager Frank Ruediger Scheffler. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 27, 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 Dresden Hall D131 Olbrichtplatz 1 01099 Dresden 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 Ruediger Scheffler C.-D.-Friedrich-Str. 6 01219 Dresden Germany Web site: http://www.tiefenbacher.de/ The District Court of Dresden opened bankruptcy proceedings against WBN Waggonbau Niesky GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WBN Waggonbau Niesky GmbH Am Waggonbau 11 02906 Niesky Germany WERCHOW GMBH: Claims Registration Period Ends February 13 --------------------------------------------------------- Creditors of Apparateservice Werchow GmbH have until Feb. 13, 2008 to register their claims with court-appointed insolvency manager Ruediger Bauch. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on March 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Braunschweig Hall E 01 Martinikirche 8 38100 Braunschweig 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: Ruediger Bauch Damm 18 38100 Braunschweig Germany Tel: 0531 38848-10 Fax: 0531 38848-11 The District Court of Braunschweig opened bankruptcy proceedings against Apparateservice Werchow GmbH on Dec. 19, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Apparateservice Werchow GmbH Attn: Siegfried Macikowski, Manager Karl-Marx-Strasse 127 03205 Calau Germany WOLFGANG LIEBERS: Claims Registration Ends February 15 ------------------------------------------------------ Creditors of Wolfgang Liebers GmbH have until Feb. 15, 2008 to register their claims with court-appointed insolvency manager Soenke Hansen. Creditors and other interested parties are encouraged to attend the meeting at 10:05 a.m. on March 14, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Soenke Hansen Moenckebergstrasse 17 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Wolfgang Liebers GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wolfgang Liebers GmbH Attn: Wolfgang Liebers, Manager Rungedamm 37 21035 Hamburg Germany ============= H U N G A R Y ============= PROPEX INC: Wants to Employ Houlihan Lokey as Financial Advisor --------------------------------------------------------------- Propex Inc. and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the Eastern District of Tennessee to employ Houlihan Lokey Howard & Zukin Capital, Inc., as their financial advisor and investment banker in their Chapter 11 cases. Lee McCarter, executive vice president and chief financial officer of Propex, Inc., relates that the Debtors selected Houlihan Lokey to serve as their financial advisor because the firm has gained substantial knowledge of the Debtors' financial and operational condition during its prepetition representation of the Debtors. As the Debtors' financial advisor and investment banker, Houlihan Lokey will: * assist the Debtors in the development, preparation and distribution of selected information, documents and other materials; * solicit and evaluate indications of interest and proposals regarding any transaction from current and potential lenders; * assist the Debtors with the development, structuring, negotiation and implementation of any transaction; * assist in valuing the Debtors' assets or operations, provided that any real estate or fixed asset appraisals will be undertaken by outside appraisers, separately retained and compensated by the Debtors; * provide expert advice and testimony regarding financial matters related to any transaction; * advise and attend meetings of the Debtors' Board of Directors, Debtors' creditor groups, official constituencies and other interested parties, as the Debtors determine to be necessary or desirable; and * provide other financial advisory services as may be agreed upon by the firm and the Debtors. Furthermore, Houlihan Lokey intends to work closely with other professionals retained by the Debtors to avoid unnecessary duplication of services performed for or charged to the Debtors' estates, according to Mr. McCarter. For the services contemplated to be rendered by Houlihan Lokey, the Debtors will pay the firm these fees: (a) A non-refundable US$150,000 initial fee (b) A US$150,000 fee for the first three months of the firm's retention and a US$125,000 monthly fee thereafter. (c) Subject to the Court's consent, a US$2,812,500 transaction fee in the event that a plan of reorganization in the Debtors' cases is confirmed . Six Houlihan Lokey professionals are presently expected to have primary responsibility for providing services to the Debtors: 1. P. Eric Siegert 2. Jonathan Cleveland 3. Derek Pitts 4. Quincy Evans 5. Ishreth Hassen 6. Drew Talarico The Debtors will also reimburse the firm for expenses it may incur in connection with its contemplated serves, including travel costs and temporary employment of additional staff. Houlihan Lokey has been representing the Debtors since October 2007 in connection with one or more financing transactions for the Debtors, Mr. McCarter notes. According to papers filed with the Court, managing director Jonathan Cleveland relates that through the Debtors' bankruptcy filing, Houlihan Lokey has been paid US$450,000,000 in fees and reimbursed for US$26,840 of expenses in accordance with the Original Employment Agreement. Mr. Cleveland assures the Court that his firm is a "disinterested person," as the term is defined in Section 101(14) of the Bankruptcy Code. About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Wants to Employ Miller & Martin as Local Counsel ------------------------------------------------------------ Propex Inc. and its debtor-affiliates ask the authority of the U.S. Bankruptcy Court for the Eastern District of Tennessee to employ Miller & Martin as their local counsel in their Chapter 11 cases. Prior to bankruptcy filing, Miller & Martin PLLC had been engaged in a matter involving: (a) certain contractual issues related to Propex, Inc., and its sales representatives, and (b) the review of certain executive compensation and employee benefit issues. Lee McCarter, executive vice president and chief financial officer of Propex, Inc., relates that the Debtors selected Miller & Martin because of the firm's knowledge and experience in bankruptcy and corporate matters for which the firm is being employed. As the Debtors' local counsel, Miller & Martin will represent the Debtors in pursuing matters that are relevant to the Chapter 11 cases and will advise the Debtors on these matters. Four professionals are presently expected to have primary responsibility for providing services to the Debtors: Professional Hourly Rate ------------ ----------- Shelley D. Rucker US$350 Nicholas Whittenburg US$305 Craig Smith US$200 Tanya English US$185 The Debtors will also reimburse the firm for expenses it may incur, including travel costs and temporary employment of additional staff, relating to any work undertaken. Prior to bankruptcy filing, Miller & Martin received a US$32,558 retainer from the Debtors. Payments received during the 12 months prior to the Petition Date were for services unrelated to the filing of the Chapter 11 cases. Miller & Martin applied from the retainer US$20,000 to fees and US$5,195 for filing fees prior to the Petition Date to pay for fees and expenses incurred in contemplation of the cases. The balance of the retainer will be applied in payment of postpetition fees and expenses only after approval from the Court. Shelley D. Rucker, Esq., a partner at Miller & Martin, assures the Court that her firm is a "disinterested person," as the term is defined in Section 101(14) of the Bankruptcy Code. About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Court Approves US$60 Million Credit Facility -------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee has approved Propex Inc. and its debtor-affiliates' US$60 million credit facility on an interim basis with immediate access to US$20 million as requested by the company, which is available to complement existing cash on hand. This will provide Propex with immediate and sufficient liquidity to operate its business on an ongoing basis. As is customary under Chapter 11 procedures, a final hearing for further funding under the credit facility is scheduled for Feb. 13, 2008. In addition, the Court also approved all other First-Day Motions it considered, including the motion to pay employee wages and benefits and the motion to use the company's existing cash management system which enables Propex's business to continue to operate in a normal manner. "We are pleased to have received the interim Court approval of our US$60 million credit facility and other First-Day Motions as we expected," Joe Dana, President of Propex Inc., said. "We are focusing our efforts on restructuring our balance sheet in order to reduce our debt and emerge from Chapter 11 a stronger and more nimble Propex better able to serve our customers." About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Chapter 11 Filing Cues S&P's Corp. Rating Cut to D -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Propex Inc. to 'D' from 'CCC'. In addition, S&P lowered the senior secured and senior unsecured ratings to 'D'. "The downgrades follow Propex's announcement that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code," said Standard & Poor's credit analyst Henry Fukuchi. The company will continue to operate its facilities and offices in the ordinary course of business while it restructures its balance sheet. Propex has arranged a US$60 million credit facility for which it is seeking Court approval. S&P removed the ratings from CreditWatch with negative implications, where they were placed on Oct. 8, 2007, on concerns that Propex's leveraged financial profile and liquidity would continue to deteriorate in the current challenging environment. Operating results have been weak at Propex due to low residential construction activity and declines in the domestic housing markets, which have caused earnings, cash flow, and the financial profile to deteriorate to subpar levels. With approximately US$690 million in annual sales, Propex is a leading producer of polypropylene fabrics and fibers used in primary and secondary carpet backing, geosynthetic and industrial applications, and concrete fiber reinforcement. ============= I R E L A N D ============= IQON TECHNOLOGIES: Irish High Court Orders Liquidation ------------------------------------------------------ Hon. Peter Kelly of the High Court of Ireland has appointed Michael McAteer as liquidator for iQon Technologies Ltd. after the PC manufacturer failed to raise necessary investment to remain as a going concern, The Irish Times reports. The liquidation order effectively made iQon's 108 employees redundant, the Irish Independent relates. Ciaran O'Donoghue, iQon's managing director, expressed disappointment on the company's collapse after 18 years in business. "A series of events had led to the company being put into liquidation," Mr O'Donoghue told the Irish Independent. The company had been sustaining profits in past years and posted more than GBP2 million net income in 2005, the Irish Independent relates. The company, however, succumbed to harsh competition from international brands in 2007, posted around GBP7.5 million in net losses and declared insolvency. The High Court sent iQon into examinership in November 2007. Headquartered in Louth, Ireland, iQon Technologies Ltd. -- http://www.iqon.ie/-- manufactures and resells PCs and peripherals in Ireland and the U.K. ========= I T A L Y ========= ALITALIA SPA: Air France-KLM to Retain Alitalia Brand ----------------------------------------------------- Air France-KLM SA assured it will retain the Alitalia S.p.A. brand after it acquires the Italian government's 49.9% stake in the national carrier, Thomson Financial reports, citing the Anpac pilots union. "There have been full and concrete assurances that there will not be a 'regionalization' of the Italian flag carrier and the Alitalia brand's value will be exploited and improved," said Anpac, which with Anfav and Avia unions, met with Air France CEO Jean Cyrille Spinetti. Anpac added that the first phase of the plan will see a network and fleet rationalization that will allow for a turnaround in the results in order to reach breakeven beginning 2010, Thomson Financial relates. Air France also assured that following the downscaling of Alitalia's operations at Milan's Malpensa airport, there will be an expansion of flights to European destinations, Thomson Financial adds. Air France, Alitalia and trade unions will meet in February to discuss the business plan for the national carrier. As reported in the TCR-Europe on Jan. 17, 2007, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have two months to reach an agreement, which would be approved by the government. Tommaso Padoa Schioppa, Italy's finance minister, has delivered a letter to Alitalia S.p.A. approving the commencement of exclusive talks with Air France-KLM. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. Air France CEO Jean-Cyril Spinetta confirmed plans to cut 1,700 jobs and defended plans to downsize Alitalia's operations in Milan's Malpensa airport. Mr. Spinetta also revealed that should the French carrier acquire 100% of Alitalia shares, Air France would list itself in the Milan bourse. Mr. Schioppa will represent the Italian government during sale talks and will evaluate whether to sell to the state's majority stake in Alitalia, Agenzia Giornalistica Italia says. 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 mil