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 Monday, January 28, 2008, Vol. 9, No. 20 Headlines A U S T R I A DS KONSTRUKTION: Claims Registration Period Ends February 7 DRAGOMIR DJURIC: Claims Registration Period Ends February 7 ELTNER MANAGEMENT: Claims Registration Period Ends February 6 HEIMBUCHER TRANSPORTE: Claims Registration Ends February 4 ING. BUESING: Claims Registration Period Ends February 1 JOHANN KAPPER: Graz Court Orders Business Shutdown MAGAUER LLC: Claims Registration Period Ends February 4 MOLAND LLC: Claims Registration Period Ends February 1 B E L G I U M MEGA BRANDS: S&P Cuts Corporate Credit Rating to 'B' From 'B+' QUEBECOR WORLD: Selects Arnold & Porter as Bankruptcy Counsel QUEBECOR WORLD: To Use US$750 Million DIP Fund to Buy Portfolio QUEBECOR WORLD: Wants Access to Two Lenders' Cash Collateral F R A N C E HARMAN INT'L: Declares US$0.0125 Per Share Quarterly Dividend PRIDE INTERNATIONAL: Inks Contract for Deepwater Fleet Expansion G E R M A N Y ATECH GMBH: Claims Registration Ends February 8 B&B GASTSTATTEN: Claims Registration Period Ends February 4 BECK MOTORBOOTCENTER: Claims Registration Ends February 6 BHG BAU: Claims Registration Period Ends February 1 BREEZE FINANCE: Fitch Rates EUR46.8 Million Class B Notes at BB- BRT SPEDITION: Claims Registration Period Ends February 1 BSK BAU-SERVICE: Claims Registration Ends February 8 CAR SERVICE: Claims Registration Period Ends February 5 CSA WELZMUELLER: Claims Registration Period Ends February 11 ELEKTRO-SCHULTE: Claims Registration Period Ends February 1 G&T TANZHAUS: Claims Registration Period Ends February 5 JENOPTIK AG: Fitch Affirms and Withdraws B+ Ratings LOGSPEDSERVICE GMBH: Claims Period Ends February 11 M&S GMBH: Claims Registration Period Ends February 4 MELA-KUECHEN: Claims Registration Period Ends February 4 MULTI-TELEFON-MARKETING GMBH: Claims Period Ends February 5 ORGATECH REINARTZ: Claims Registration Ends February 10 SLF SCHORNSTEIN: Claims Registration Period Ends February 3 SPORT LINK: Claims Registration Period Ends February 2 TON-PLAN GMBH: Claims Registration Ends February 6 WICOMAT BETEILIGUNGS: Claims Registration Period Ends February 5 I R E L A N D RITCHIE IRELAND: Wants to Hike Borrowing by US$1.8MM to US$4.5MM I T A L Y ALITALIA SPA: AirOne SpA Taps Seabury Group to Boost Offer ARES FINANCE 2: S&P Affirms Class E Notes at BB ARES FINANCE SRL: S&P Rates Class F Notes at BB FIAT SPA: Improved Performance Cues Moody's to Keep Ba1 Ratings K A Z A K H S T A N COMPANY TRANSSPETSSERVICE: Creditors' Claims Due on February 27 HLEBOROB-SERGIENKO: Creditors Must File Claims by February 22 KAISAR-HKM LLP: Claims Filing Period Ends February 22 TALAP-2000 LLP: Creditors' Claims Due on February 22 TEMIRMUNAI INVEST: Claims Registration Ends February 27 TURAR LTD: Creditors Must File Claims by February 22 ONLINE SOLUTIONS: Claims Filing Period Ends February 27 K Y R G Y Z S T A N ENERGO-POLIS LLC: Creditors Must File Claims by February 15 N O R W A Y TELLER AS: Fitch Affirms IDR at BB+ on Strong Franchise P O L A N D ACXIOM CORP: Earns US$54.7 Mln in Fiscal 3rd Qtr. Ended Dec. 31 R U S S I A KUEDINSKY BREWERY: Creditors Must File Claims by February 29 LIPETSKY MACHINERY: Creditors Must File Claims by February 29 LOBVINSKY BIOCHEMICAL: Creditors Must File Claims by January 29 ROSNEFT OIL: Seeks US$2 Bln Loan to Repay Maturing Debts SHABROVSKY TALC: Court Starts Bankruptcy Supervision Procedure TEMKINSKY FLUX-PROCESSING: Court Starts Bankruptcy Supervision URALHIPRORUBBERTECHNIKA: Creditors Must File Claims by Jan. 29 URALSVYAZINFORM OAO: Fitch Affirms Ratings on Stability VOZROZHDENIYE CJSC: Bankruptcy Hearing Slated for April 24 S W I T Z E R L A N D ANIKA ENGINEERING: Creditors Must File Claims by January 31 DYNA-REND JSC: Creditors' Liquidation Claims Due by February 4 GASSER BERATUNG: Creditors' Liquidation Claims Due by January 31 GUNTHER STAUDT: Creditors' Liquidation Claims Due by January 31 ICA INVESTMENT: Creditors' Liquidation Claims Due by January 31 KAP CONSULTING: Creditors' Liquidation Claims Due by January 31 MODELLBAHNZUBEHOR MZZ: Creditors Must File Claims by January 31 MONIKA REICH: Creditors' Liquidation Claims Due by February 4 VEDANA TREUHAND: Creditors' Liquidation Claims Due by January 31 WORLD LINE: Creditors' Liquidation Claims Due by January 31 U K R A I N E AVIACOMPANY VITAIR: Proofs of Claim Filing Ends February 3 CONSTRUCTION.MATERIALS.TECHNOLOGIES: Claims Filing Ends Feb. 7 ENGINEER TECHNOLOGIES: Proofs of Claim Filing Ends February 3 MKL LLC: Proofs of Claim Filing Ends February 7 MOTORCAR TRADE: Creditors Must File Claims by February 3 SHYROKOVSKY AGRICULTURAL: Creditors Must File Claims by Feb. 3 SOFIT LLC: Proofs of Claim Filing Ends February 2 SOUTH ELEVATOR: Proofs of Claim Filing Ends February 2 SUPER FILM: Creditors Must File Claims by February 2 TISA-95 LLC: Proofs of Claim Filing Ends February 7 UKRSOTSBANK OJSC: S&P Lifts Ratings to BB- with Negative Outlook U N I T E D K I N G D O M ARQUEST LTD: Appoints Ernst & Young as Joint Administrators ATTRIC GROUP: Brings In Liquidators from KPMG ATTRIC PBI: Calls In Liquidators from KPMG CHRYSLER LLC: Unit Inks Product Development Pact w/ Tata Motors CONSTELLATION BRANDS: Selling Three Wine Brands for US$134 Mln CORDER PROPERTY: David Merrygold Leads Liquidation Procedure CUMMINS INC: To Increase Workforce by 500 in Columbus DBRS LTD: Taps Ian Defty to Liquidate Assets DUCIE COURT: Brings In Administrators from BDO Stoy ENTERPRISE INNS: S&P Affirms BB+ Long-term Credit Ratings FORD MOTOR: Neapco Inks Sale Agreements for ACH Driveshaft Biz GARDNER FINE: Taps Begbies Traynor to Administer Assets GENERAL MOTORS: IUE-CWA Retirees to Get Christmas Bonus LESLIE REESON: Joint Liquidators Take Over Operations NORTHERN ROCK: Pension Trustees In Talks Over Scheme Buy-Out RANK GROUP: Urges UK Gov't. to Reform Double-Tax Regime on Bingo SHAW GROUP: Nuclear Unit Launches New Office in Shanghai, China TATA MOTORS: Allies with Chrysler to Sell Electric Truck in U.S. UNITED TRADE: Appoints Liquidators from Tenon Recovery * BOND PRICING: For the Week Jan. 21 to Jan. 25, 2008 ********* ============= A U S T R I A ============= DS KONSTRUKTION: Claims Registration Period Ends February 7 ----------------------------------------------------------- Creditors owed money by LLC D.S. Konstruktion Bau (FN 243373b) have until Feb. 7, 2008, to file written proofs of claim to court-appointed estate administrator Romana Weber-Wilfert at: Dr. Romana Weber-Wilfert c/o Dr. Christof Stapf Esslinggasse 9 1010 Vienna Austria Tel: 90 333 Fax: 90333 44 E-mail: wien@snwlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 21, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 13, 2007 (Bankr. Case No. 5 S 144/07x). Christof Stapf represents Dr. Weber-Wilfert in the bankruptcy proceedings. DRAGOMIR DJURIC: Claims Registration Period Ends February 7 ----------------------------------------------------------- Creditors owed money by KEG DRAGOMIR DJURIC (FN 287026y) have until Feb. 7, 2008, to file written proofs of claim to court- appointed estate administrator Michael Neuhauser at: Mag. Michael Neuhauser c/o Dr. Romana Weber-Wilfert Esslinggasse 7 1010 Vienna Austria Tel: 90 333 Fax: 90 333 55 E-mail: wien@snwlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 21, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 12, 2007 (Bankr. Case No. 5 S 142/07b). Romana Weber- Wilfert represents Mag. Neuhauser in the bankruptcy proceedings. ELTNER MANAGEMENT: Claims Registration Period Ends February 6 ------------------------------------------------------------- Creditors owed money by LLC Eltner Management (FN 70488i) have until Feb. 6, 2008, to file written proofs of claim to court- appointed estate administrator Kurt Bernegger at: Dr. Kurt Bernegger c/o Mag. Maria Kainer Jacquingasse 21 1030 Vienna Austria Tel: 799 15 80 Fax: 796 59 14 Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Feb. 20, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 12, 2007 (Bankr. Case No. 2 S 154/07w). Maria Kainer represents Dr. Bernegger in the bankruptcy proceedings. HEIMBUCHER TRANSPORTE: Claims Registration Ends February 4 ---------------------------------------------------------- Creditors owed money by LLC Heimbucher Transporte (FN 254486w) have until Feb. 4, 2008, to file written proofs of claim to court-appointed estate administrator Roland Heitzingerat: Dr. Roland Heitzinger Ringstrasse 4/Plobergerstrasse 7 4600 Wels Austria Tel: 07242/42605-0 Fax: 07242/42605-20 E-mail: heitzinger@ra-stossier.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on Feb. 14, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on Dec. 13, 2007 (Bankr. Case No. 20 S 144/07p). ING. BUESING: Claims Registration Period Ends February 1 -------------------------------------------------------- Creditors owed money by LLC Ing. Buesing (FN 189531y) have until Feb. 1, 2008, to file written proofs of claim to court-appointed estate administrator Stephan Riel at: Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Feb. 15, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 13, 2007 (Bankr. Case No. 28 S 151/07w). JOHANN KAPPER: Graz Court Orders Business Shutdown -------------------------------------------------- The Land Court of Graz entered Dec. 19, 2007 an order shutting down the business of LLC Johann Kapper (FN 81017v). Court-appointed estate administrator Norbert Scherbaum recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Norbert Scherbaum LLC Scherbaum/Seebacher Rechtsawalte Einspinnergasse 3 Second Floor 8010 Graz Austria Tel: 0316/832460 Fax: 0316/832460-20 E-mail: office@scherbaum-seebacher.at Headquartered in St. Stefan im Rosental, Austria, the Debtor declared bankruptcy on Dec. 17, 2007 (Bankr. Case No 26 S 118/07h). MAGAUER LLC: Claims Registration Period Ends February 4 ------------------------------------------------------- Creditors owed money by LLC Magauer (FN 105833m) have until Feb. 4, 2008, to file written proofs of claim to court-appointed estate administrator Walter Holme at: Dr. Walter Holme Dr. Koss Strasse 3 4600 Wels Austria Tel: 07242/67354-0 Fax: 07242/67354-50 E-mail: kanzlei@holme.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on Feb. 4, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on Dec. 14, 2007 (Bankr. Case No. 20 S 145/07k). MOLAND LLC: Claims Registration Period Ends February 1 ------------------------------------------------------ Creditors owed money by LLC Moland (FN 60787v) have until Feb. 1, 2008, to file written proofs of claim to court-appointed estate administrator Bernhard Eder at: Dr. Bernhard Eder Brucknerstrasse 4 1040 Vienna Tel: 505 78 61 Fax: 505 78 61 9 E-mail: eder@rechtsanwaelte.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 15, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 13, 2007 (Bankr. Case No. 28 S 152/07t). ============= B E L G I U M ============= MEGA BRANDS: S&P Cuts Corporate Credit Rating to 'B' From 'B+' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and bank loan ratings on Montreal-based MEGA Brands Inc. to 'B' from 'B+'. The ratings remain on CreditWatch with negative implications, where they were placed Nov. 9, 2007. The '3' recovery rating on the bank loan is unchanged. "The downgrade and CreditWatch listing reflect Standard & Poor's concerns that earnings, credit measures, and financial flexibility are weaker than expected due to challenges MEGA Brands faces," said Standard & Poor's credit analyst Lori Harris. "The company's financial flexibility is limited because of the possibility it might not be in compliance with its financial covenants for the fourth quarter 2007 or thereafter due to the material decline in operating profit and cash flow," Ms. Harris added. MEGA Brands' profitability has been negatively affected by problems related to its Magnetix product, other litigation, manufacturing inefficiencies, and higher costs for products manufactured in China. Excluding one-time charges, gross margin for third-quarter 2007 declined to 38% from 45% for the same period in 2006. In addition, the softening economy could negatively affect industry participants that have already faced criticism because of product safety concerns. For the past two years, the company has been involved in litigation related to its Magnetix product, which resulted in product recalls, replacement, and liability settlement expenses. The charges related to the litigation have negatively affected its debt levels and credit ratios in a material way. In addition, MEGA Brands is involved in litigation with the former shareholders of Rose Art Industries Inc. concerning employment arbitration due to the premature departure of the Rosen brothers, as well as contingent payments related to MEGA Brands' 2005 acquisition of the business. An additional US$51 million in accrued consideration has yet to be paid because MEGA Brands is disputing this claim. The ratings will remain on CreditWatch until MEGA Brands' financial flexibility and covenant compliance concerns are resolved. MEGA Brands Inc. -- http://www.megabrands.com/-- (TSE:MB) is a distributor of construction toys, games & puzzles, arts & crafts and stationery. The company is headquartered in Montreal, Canada and has offices in Belgium, United Kingdom, Germany, France, Spain, Mexico, and Australia. QUEBECOR WORLD: Selects Arnold & Porter as Bankruptcy Counsel ------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for authority to hire Arnold & Porter as their counsel, nunc pro tunc to Jan. 21, 2008. The Debtors relate that Arnold & Porter has provided a wide range of legal representation and counseling for many years to the Debtors and certain of their non-debtor affiliates. In addition, the Debtors say that before the bankruptcy filing, the Debtors sought the services of the firm with respect to, among other things, advice regarding restructuring matters in general and preparation for the potential commencement and prosecution of Chapter 11 cases for the Debtors. As any successful restructuring of the Debtors' finances and operations is inextricably linked to the restructuring of the Debtors' non- debtor affiliates, the Debtors requested the firm to work closely with Quebecor World Inc.'s Canadian restructuring counsel for appropriate court supervised restructuring processes in Canada and the United States. During the Chapter 11 cases, Arnold & Porter will: -- advise the Debtors with respect to their powers and duties as Debtors and debtors-in-possession in the continued management and operation of their businesses and properties; -- advise and consult on the conduct of the Chapter 11 cases, including all of the legal and administrative requirements of operating in Chapter 11; -- attend meetings and negotiate with representatives of creditors and of the Debtors' employees and other parties-in-interest; -- advise the Debtors in connection with any contemplated sales of assets, business combinations, or investment transactions. -- advise the Debtors in connection with postpetition financing and cash collateral arrangements and negotiating and drafting documents, relating thereto, among other things; -- advise the Debtors on matters relating to the evaluation of the assumption, rejection or assignment of unexpired leases and executory contracts; -- provide advice to the Debtors with respect to legal issues arising in or relating to the Debtors' ordinary course of business. -- take necessary action to protect and preserve the Debtors' estates, including the prosecution of actions and proceedings on their behalf, the defense of any actions and proceedings commenced against the estates, and negotiations concerning all litigations; -- develop and implement protocols for the coordination of the Chapter 11 cases with restructuring cases filed on behalf of the Debtors and non-debtor affiliates in Canada; -- prepare on behalf of the Debtors motions, applications, answers, orders, reports and papers necessary to the administration of the estates; -- negotiate and prepare, on the Debtors' behalf, plans of reorganization, disclosure statements and all related agreements or documents and take any necessary action on behalf of the debtors to obtain confirmation of those plans; -- attend meetings with third parties and participate in negotiations; -- appear before the Court, other courts, and the U.S. Trustee; and protect the interests of the Debtors' estates before those courts and the U.S. Trustee; -- meet and coordinate with other counsel and other professionals retained on behalf of the Debtors and approved by the Court; and -- perform all other necessary legal services and provide all other necessary legal advice to the Debtors in connection with the Chapter 11 cases and related matters. The firm will bill the Debtors for its services at its usual hourly rates. Presently, Arnold & Porter's hourly rates range from US$550 to US$825 for partners, and US$300 to US$560 for associates. The firm will also seek reimbursement for out-of- pocket expenses incurred in its representation of the Debtors. The Debtors and certain non-debtor affiliates have made certain payments to Arnold & Porter within the 90-day period prior the bankruptcy filing for services rendered by the firm and as retainer. As of the bankruptcy filing, the firm held a retainer of US$939,053. The firm will apply the retainer to pay its fees and disbursements as allowed by the Court Michael J. Canning, Esq., at Arnold & Porter says he and the firm are "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code and does not hold or represent any interest adverse to the Debtors' estates. The firm can be reached at: Michael J. Canning, Esq. Arnold & Porter LLP 399 Park Avenue New York, NY 10022-4690 Tel: (212) 715-1110 Fax: (212) 715-1399 http://www.arnoldporter.com/ 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. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: To Use US$750 Million DIP Fund to Buy Portfolio --------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to immediately obtain up to an aggregate of US$750,000,000 revolving loans and letters of credit under a debtor-in-possession facility to allow them to purchase Receivables Portfolio worth US$416,800,000. As reported in the Troubled Company Reporter-Europe on Friday, the Debtors formally sought the Bankruptcy Court's authority to enter into a US$1,000,000,000 senior secured superpriority DIP credit agreement from a syndicate of lenders led by Credit Suisse Securities (USA), LLC, as administrative and collateral agent, and Morgan Stanley Senior Funding Inc. Receivables Portfolio refers to certain accounts receivable and other related rights sold, assigned and initially transferred by the Debtors to one of its non-debtor affiliate, Quebecor World Finance Inc., who, in turn, sold those account receivables to third parties. As previously reported, the US$1,000,000,000 DIP Facility comprises of a US$600,000,000 term loan and a US$400,000,000 revolving credit facility. The Revolving Credit Facility also includes a US$100,000,000 letter of credit subfacility and a US$25,000,000 swing line subfacility. Aside from purchasing the Receivables Portfolio, the remaining proceeds of the DIP Facility will be used to provide the Debtors financing for working capital, letters of credit, capital expenditures and other general corporate purposes, the Debtors' proposed counsel Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, says. The DIP Facility's Borrowing Base will mean at any time of determination the sum of: (a) up to 85% of eligible US and Canadian trade accounts receivable of the Debtors, other than accounts receivable subject to a lien in favor of the lenders under the existing Credit Agreements with the Royal Bank of Canada and the Societe Generale (Canada); and (b) the lesser of (x) up to 85% of the Orderly Liquidation Value Percentage of eligible US inventory of the Debtors, other than inventory subject to a lien in favor of the lenders under the Existing Credit Agreements, and (y) up to 65% of eligible US inventory of the Debtors, minus (z) reserves to be reasonably determined by Credit Suisse. The DIP Facilities, the Guarantees and any Hedging Arrangements will be secured by substantially all the assets of the Debtors, except any proceeds of Avoidance Actions. Security granted to the Lenders will include: -- a perfected first-priority pledge of all the equity interests of Quebec World (USA), Inc.; -- a perfected first priority pledge of all the equity interests held by Quebec World, Inc., QWUSA or any other Guarantor; and -- a perfected first-priority security interests in, and mortgages on, substantially all assets of QWI, QWUSA and each Guarantor. The Collateral will not include accounts receivable of European Guarantors, which are subject to existing factoring arrangements or factoring arrangements that are otherwise acceptable to the DIP Agent up to an amount to be agreed. The DIP Agents' liens on the Collateral will be junior to: -- all valid liens presently held securing indebtedness pursuant to the Amended and Restated Credit Agreement among QWI, QWUSA, the lenders, Royal Bank of Canada, as administrative agent, and RBC Capital Markets, as arranger; -- all valid liens presently held securing indebtedness pursuant to that certain Credit Agreement, among QWI, QWUSA and Societe Generale (Canada), as lender; -- capitalized leases, purchase money security interests or mechanics' liens in existence at the bankruptcy filing or perfected subsequent to the bankruptcy filing; -- other limited liens to be agreed on; and -- the Carve-Out for the payment of allowed fees and disbursements of professionals hired by the Debtors and a statutory committee of unsecured creditors. The superpriority perfected security interests in the assets of QWI in its insolvency proceedings under the Canadian Companies' Creditors Arrangement Act will be subject and subordinate to an administration charge. Loans under the Term Facility will be prepaid with 100% of the net cash proceeds of all asset sales or other dispositions of property by the Debtors; 100% of the net cash proceeds of issuances, offerings or placements of debt obligations of the Debtors; and 100% of Extraordinary Receipts. Mandatory prepayments under the Revolving Credit Facility will be required if the DIP Revolving Credit Facility Usage exceeds the then effective commitments under the Revolving Credit Facility or the DIP Revolving Credit Facility Usage exceeds Availability. Voluntary prepayments of the borrowings under the Revolving Credit Facility will be permitted at any time without premium or penalty, subject to payment of customary breakage costs in the case of a prepayment of an adjusted LIBOR borrowing other than on the last day of the relevant interest period. Mr. Canning asserts that approval of the DIP Facility will enable the Debtors to maintain the confidence of their vendors, customers and employees. Absent approval of the DIP Facility, the Debtors will run out of cash before the end of January 2008, resulting in severe disruptions to their business, he further asserts. 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. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: Wants Access to Two Lenders' Cash Collateral ------------------------------------------------------------ Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to use certain collateral pledged to the prepetition secured lenders. The prepetition secured lenders are group lenders led by Royal Bank of Canada and another group of lenders led by Societe Generale (Canada). The Debtors tell the Court that they do not have sufficient liquidity to pay obligations that either are currently due or are expected to become due in early 2008, proposed counsel Michael J. Canning, Esq., at Arnold & Porter, LLP, in New York, relates. RBC Lenders have indicated that it will not provide any further advances from a US$750,000,000 prepetition credit agreement because the Debtors have not satisfied conditions and refinancing milestones set by the RBC Lenders. Mr. Canning adds that suppliers are demanding cash terms and customers are threatening to cease doing business with the Debtors unless they are provided with letters of credit or similar accommodations. Hence, the Debtors need infusion of additional cash. US$750 Million RBC Credit Facility The RBC Lenders committed to provide a US$750,000,000 revolving credit facility, which was secured up to a maximum of US$135,000,000 by: (a) unlimited guaranties from certain Debtors; (b) a pledge of the shares of Debtor QW Memphis Corp. by the Debtors Quebecor World (USA) Inc., the Webb Company, and Quebecor World Memphis, LLC; (c) a pledge of the shares of QWUSA by Debtor Quebecor Printing Holding Company; (d) security on all personal and real property of QW Memphis, excluding accounts receivable subject to the Existing Receivables Facility and certain real estate located in Covington, Tennessee; and (d) security on all inventory of QWI located in Canada. As of Jan. 18, 2008, the aggregate amount of indebtedness outstanding under the RBC Credit Agreement was approximately US$735,000,000. CADUS$136 Million Soc Gen Credit Agreement A Soc Gen Credit Agreement, on the other hand, provides for an equipment financing credit facility in the aggregate amount of the CADUS$136,165,415, expiring on July 1, 2015. The amounts due under the Soc Gen Credit Agreement are guaranteed and secured on a pari passu basis up to US$35,000,000 by the same collateral as the credit facilities under the RBC Credit Agreement. As of Jan. 11, 2008, the aggregate amount outstanding under the Soc Gen Credit Agreement was approximately US$155,000,000. To protect the interest of the Prepetition Secured Lenders in the QW Memphis Collateral, for any diminution in value from the use of the QW Memphis Collateral, and for the imposition of the automatic stay, the Debtors will release any liens of the Prepetition Secured Lenders in QW Memphis' accounts immediately on the entry of an interim cash collateral order. Establishment of Cash Collateral Account The Debtors will establish a cash collateral account with a certain bank. Certain security interests and liens will be granted: (a) to the Prepetition Secured Lenders, a valid, binding, continuing, enforceable, fully perfected first priority senior security interest in and lien on the Memphis Cash Collateral Account, securing any Prepetition Secured Indebtedness that is secured by valid, perfected non avoidable and enforceable liens in existence as of the bankruptcy filing; provided that the security interest granted will be included in the cap on the Prepetition Secured Indebtedness provided for in the Prepetition Security Agreements; and (b) to Credit Suisse Securities (USA), LLC, as the DIP Facility's Administrative Agent, a valid, binding, continuing, enforceable, fully perfected security interest in and lien on the Memphis Cash Collateral Account immediately junior to the Prepetition Secured Lenders' Lien. The Debtors will deposit in the Memphis Cash Collateral Account an amount equal to the bankruptcy filing value of the QW Memphis Inventory divided by 46 each day until the date on which the balance on deposit in the Memphis Cash Collateral Account is equal to the QW Memphis bankruptcy filing inventory amount. As of Jan. 22, 2008, the Debtors have not disclosed the approximate bankruptcy filing value of the Memphis Inventory. On the Memphis Inventory Release Date, the Debtors will release any Liens of the prepetition secured lenders in the QW Memphis Bankruptcy Filing Inventory. 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. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) =========== F R A N C E =========== HARMAN INT'L: Declares US$0.0125 Per Share Quarterly Dividend ------------------------------------------------------------- Harman International Industries Incorporated has declared a cash dividend of US$0.0125 per share for the second quarter ended Dec. 31, 2007. The quarterly dividend will be paid on Feb. 20, 2008, to each stockholder of record as of the close of business on Feb. 6, 2008. 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. * * * In October 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. PRIDE INTERNATIONAL: Inks Contract for Deepwater Fleet Expansion ---------------------------------------------------------------- Pride International Inc. is continuing the expansion of its premium deepwater fleet, following a multi-year contract award from a subsidiary of Petroleo Brasileiro S.A. for the construction and operation of an advanced-capability, ultra- deepwater drillship in support of Petrobras's international exploration and development drilling projects. The ultra- deepwater drillship, to be constructed at the Samsung Heavy Industries, Co. Ltd. shipyard in Geoje, South Korea on a fixed- price basis, is expected to be delivered from the shipyard in the first quarter of 2011, following construction, commissioning and system-integrated testing. The multi-year drilling contract allows Petrobras to elect, by Jan. 31, 2010, a firm contract term of at least five years and up to seven years in duration. The drilling contract provides for the payment of a fixed daily rate and the payment of a performance bonus of up to 17% of the fixed daily rate if a five year term is selected (or up to 15% if a six or seven year term is selected.) Depending on the firm contract term chosen and excluding revenues for reimbursement of costs associated with the mobilization of the rig to an initial location, estimated contract revenues which could be generated range from US$916 million to US$1.24 billion and include the operating dayrate, the full amount of the performance bonus and other contractually guaranteed payments of US$41 million to US$49 million. In addition, a cost escalation provision is provided from the signing date of the contract through the term selected. Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., stated, "This third addition to our deepwater fleet in less than seven months, along with the supporting contract, is beneficial in a number of ways as we continue to successfully transition the company to a pure offshore focus with an increasing emphasis on ultra-deepwater drilling. These benefits include: a) Expanding our strong business relationship with Petrobras, a client with increasing opportunities in deepwater exploration and development drilling around the world. b) Adding a new, premium ultra-deepwater drilling rig to our fleet, which will have technically advanced features allowing the unit to compete effectively in all deepwater drilling regions. c) Securing a firm, multi-year contract that allows the company to build a backlog of revenue and cash flow that enhances earnings growth prospects and shareholder value well into the next decade. d) Adding to our critical mass in dynamically-positioned deepwater floaters, currently the industry's second largest fleet, and enhancing our ability to attract and retain the industry's best operations and engineering talent. e) Achieving construction management efficiencies, as all three of our newbuilds will be constructed in the same shipyard with an identical hull design and similar technical features." Mr. Raspino added, "Deepwater exploration and development activity continues to be supported by impressive geologic success and strong energy demand outlook well into the next decade. Technological advancements continue to enable the industry to achieve drilling successes in challenging deepwater environments, resulting in promising new geologic plays, the emergence of new deepwater regions and expansion of the customer base. Each of these factors buttresses our high level of confidence in the long-term duration of the present deepwater cycle and in our ability to realize attractive contracting opportunities for our two ultra-deepwater drillships already under construction, while building our resolve to pursue additional deepwater growth opportunities." The new drillship, to be named at a later date, is Pride's third ultra-deepwater drillship construction project, following previously announced decisions in 2007 to construct one unit and to purchase from another party a second unit in the early stages of construction. Like the first two drillships, the latest unit is based on an SHI proprietary hull design measuring 750 feet long, 140 feet wide and offering a pay load in excess of 20,000 metric tons. The drillship is designed for drilling in water depths of up to 12,000 feet, with a total vertical drilling depth of up to 40,000 feet, and will have off-line tubular stand building capabilities. The rig will feature dynamic positioning in compliance with DPS-3 certification. The rig, which will be initially equipped for drilling in water depths of up to 10,000 feet, will also have expanded drilling fluids capacity, a 1,000 ton capacity top drive and living quarters for up to 200 personnel. The expected construction cost of the rig, including commissioning and system integrated testing and excluding capitalized interest, is approximately US$720 million. The company expects to fund the construction of the unit with available cash and borrowings. Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Europe on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. ============= G E R M A N Y ============= ATECH GMBH: Claims Registration Ends February 8 ----------------------------------------------- Creditors of Atech GmbH have until Feb. 8, 2008, to register their claims with court-appointed insolvency manager Dr. Detlef- Ruediger Beckmann. Creditors and other interested parties are encouraged to attend the meeting at 10:50 a.m. on March 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) 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. Detlef-Ruediger Beckmann Lindenallee 33 14050 Berlin Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against Atech GmbH on Jan. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Atech GmbH Scheunenstrasse 7 16259 Bad Freienwalde Germany B&B GASTSTATTEN: Claims Registration Period Ends February 4 ----------------------------------------------------------- Creditors of B & B Gaststatten GmbH have until Feb. 4, 2008, to register their claims with court-appointed insolvency manager Dr. Gerrit Hoelzle. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Feb. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kleve Meeting Hall C 58 Ground Floor Schlossberg 1 47533 Kleve 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. Gerrit Hoelzle Rheinstrasse 75 47623 Kevelaer Germany Tel: 02832/97720 Fax: 02832/977229 The District Court of Kleve opened bankruptcy proceedings against B & B Gaststatten GmbH on Jan. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: B & B Gaststatten GmbH Marsstrasse 12 46509 Xanten Germany BECK MOTORBOOTCENTER: Claims Registration Ends February 6 --------------------------------------------------------- Creditors of Beck Motorbootcenter GmbH have until Feb. 6, 2008, to register their claims with court-appointed insolvency manager Peter Depre. 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 Karlsruhe Hall IV First Floor Schlossplatz 23 76131 Karlsruhe Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Depre O 4, 13-16 68161 Mannheim Germany The District Court of Karlsruhe opened bankruptcy proceedings against Beck Motorbootcenter GmbH on Jan. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Beck Motorbootcenter GmbH Attn: Renate Beck-Schneege, Manager Daimlerstr. 45 76185 Karlsruhe Germany BHG BAU: Claims Registration Period Ends February 1 --------------------------------------------------- Creditors of BHG Bau- und Handelsgesellschaft mbH have until Feb. 1, 2008, to register their claims with court-appointed insolvency manager Andre Schirrmeister. Creditors and other interested parties are encouraged to attend the meeting at 9:50 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 Magdeburg Hall 14 Breiter Weg 203-206 39104 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andre Schirrmeister Magdeburger Str. 23 06112 Halle Germany Tel: 0345/ 2308811 Fax: 0345/ 2311199 The District Court of Magdeburg opened bankruptcy proceedings against BHG Bau- und Handelsgesellschaft mbH on Jan. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BHG Bau- und Handelsgesellschaft mbH Pestalozziweg 9 39164 Wanzleben Germany BREEZE FINANCE: Fitch Rates EUR46.8 Million Class B Notes at BB- ---------------------------------------------------------------- Fitch Ratings has assigned Breeze Finance SA's (Breeze Four) secured notes due 2028 expected ratings: -- EUR161.6 million Class A: 'BBB-', Outlook Stable -- EUR46.8 million Class B: 'BB-', Outlook Stable The expected ratings are based on the information provided by the arranger as of Jan. 23, 2008. The final ratings are contingent on the receipt of final documents conforming to information already received as well as on satisfactory legal opinions. The class B notes have the same maturity as the class A notes, but the priority of payment guarantees contractual subordination. This is reflected in the lower coverage ratio observed on a consolidated basis for the B notes. The proceeds of the issuance of the notes will be on-lent by the issuer to Breeze Four Energy GmbH & Co. KG and Breeze Four SNC and will be used to refinance existing debt, fund the construction escrow account and the debt service reserve account as well as pay for transaction costs. The Breeze Four notes will be serviced through the revenues produced by a portfolio of 13 wind farms located in Germany (11) and in France (2), with a combined capacity of approximately 191 MW. Five wind farms (representing approximately 38% of total capacity) are currently still under construction and are expected to be completed within the third quarter of 2008. The ratings reflect the very favorable regulatory frameworks in Germany and France (although there is some French pool price exposure in the last five years of the transaction), the uncertainty on future wind level, and the fact that the notes can be repaid according to their terms and conditions should there be a significant reduction in wind production. The construction risk associated with the not-yet operating portion of the portfolio and the benefits of the portfolio's technological, offtake and geographic diversification have also been factored into Fitch's analysis and expected ratings. The transaction's risk are mitigated by a minimum debt service coverage ratios for class A and B notes in Fitch base case of 1.61x and 1.21x, respectively. Additional comfort is also provided by the capacity of the cashflows to repay both classes of debt in downside scenarios, including production stress, which are viewed as improbable both in the wind consultant's view and compared with the historical German wind index. The expected ratings address the timely payment of interest and principal in accordance with the terms and conditions of the notes. BRT SPEDITION: Claims Registration Period Ends February 1 --------------------------------------------------------- Creditors of BRT Spedition GmbH have until Feb. 1, 2008, to register their claims with court-appointed insolvency manager Andre K. Gabel. 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 Frankfurt (Main) Hall 1 Building F Klingerstrasse 20 60313 Frankfurt (Main) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andre K. Gabel Carl-Theodor-Reiffenstein-Platz 6 D 60313 Frankfurt (Main) Germany Tel: 069/138228290 Fax: 069/138228299 The District Court of Frankfurt (Main) opened bankruptcy proceedings against BRT Spedition GmbH on Jan. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BRT Spedition GmbH Attn: Michael Klump, Manager Privatstrasse 1 65795 Hattersheim Germany BSK BAU-SERVICE: Claims Registration Ends February 8 ---------------------------------------------------- Creditors of BSK Bau-Service-Kipke GmbH have until Feb. 8, 2008 to register their claims with court-appointed insolvency manager Dr. Wolfgang Koehler. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Feb. 29, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Paderborn Meeting Hall 230a Second Floor Bogen 2-4 33098 Paderborn 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. Wolfgang Koehler Marktstrasse 22 59555 Lippstadt Germany Tel: 02941/979850 Fax: 02941/979870 The District Court of Paderborn opened bankruptcy proceedings against BSK Bau-Service-Kipke GmbH on Jan. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BSK Bau-Service-Kipke GmbH Attn: Arno Kipke, Manager Friedenseiche 16 59597 Erwitte Germany CAR SERVICE: Claims Registration Period Ends February 5 ------------------------------------------------------- Creditors of car service Hahnen GmbH have until Feb. 5, 2008, to register their claims with court-appointed insolvency manager Horst Piepenburg. Creditors and other interested parties are encouraged to attend the meeting at 10:05 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 Kleve Meeting Hall C 58 Ground Floor Schlossberg 1 47533 Kleve 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: Horst Piepenburg Heinrich-Heine-Allee 20 40213 Duesseldorf Germany Tel: 0211/492240 Fax: 0211/4922487 The District Court of Kleve opened bankruptcy proceedings against car service Hahnen GmbH on Jan. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: car service Hahnen GmbH Querallee 4 47533 Kleve Germany Attn: Franziska Hahnen-Johannes, Manager Holthuysstrasse 24 47533 Kleve Germany CSA WELZMUELLER: Claims Registration Period Ends February 11 ------------------------------------------------------------ Creditors of CSA Welzmueller Haus und Bau GmbH have until Feb. 11, 2008, to register their claims with court-appointed insolvency manager Dr. Robert Hanel. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.m. on March 4, 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 Weilheim Meeting Hall E 007 Waisenhausstr. 5 Weilheim 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. Robert Hanel Hauptstr. 37 82380 Peissenberg Germany Tel: 08803/63660 Fax: 08803/636677 The District Court of Weilheim opened bankruptcy proceedings against CSA Welzmueller Haus und Bau GmbH on Jan. 16, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CSA Welzmueller Haus und Bau GmbH Gut Staltach 3 82393 Iffeldorf Germany ELEKTRO-SCHULTE: Claims Registration Period Ends February 1 ----------------------------------------------------------- Creditors of Elektro-Schulte GmbH & Co. KG have until Feb. 1, 2008, to register their claims with court-appointed insolvency manager Manfred Gottschalk. Creditors and other interested parties are encouraged to attend the meeting at 9:45 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 Arnsberg Meeting Hall 328 Eichholzstr. 4 59821 Arnsberg 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 Gottschalk Kirchender Dorfweg 14 58313 Herdecke Germany The District Court of Arnsberg opened bankruptcy proceedings against Elektro-Schulte GmbH & Co. KG on Dec. 28, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Elektro-Schulte GmbH & Co. KG Hauptstrasse 31-33 58802 Balve Germany G&T TANZHAUS: Claims Registration Period Ends February 5 -------------------------------------------------------- Creditors of G&T Tanzhaus Erlebnisgastronomie Beteiligungs GmbH have until Feb. 5, 2008, to register their claims with court- appointed insolvency manager Ulrich Kraft. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 5, 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: Ulrich Kraft Wasastr. 15 01219 Dresden Germany Web site: http://www.hww-kanzlei.de/ The District Court of Dresden opened bankruptcy proceedings against G&T Tanzhaus Erlebnisgastronomie Beteiligungs GmbH on Jan. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: G&T Tanzhaus Erlebnisgastronomie Beteiligungs GmbH Bremer Str. 57 01067 Dresden Germany JENOPTIK AG: Fitch Affirms and Withdraws B+ Ratings --------------------------------------------------- Fitch Ratings has affirmed Jenoptik AG's Long-term Issuer Default Rating at 'B+' with Stable Outlook and Short-term IDR at 'B'. Simultaneously, Fitch has withdrawn the ratings. Fitch will no longer provide rating coverage of Jenoptik.. LOGSPEDSERVICE GMBH: Claims Period Ends February 11 --------------------------------------------------- Creditors of LogSpedService GmbH have until Feb. 11, 2008, to register their claims with court-appointed insolvency manager Hans Peter Runkel. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Wuppertal Meeting Room A234 Second Floor Isle 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: Hans Peter Runkel Friedrich-Ebert-Strasse 146 42117 Wuppertal Germany Tel: 0202/30 20 71 Fax: 0202/31 47 08 The District Court of Wuppertal opened bankruptcy proceedings against LogSpedService GmbH on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LogSpedService GmbH Schillweg 17 42109 Wuppertal Germany Attn: Jorg Bluhm, Germany Collenbuschstr. 1 42277 Wuppertal Germany M&S GMBH: Claims Registration Period Ends February 4 ---------------------------------------------------- Creditors of M & S GmbH Bedachnungen have until Feb. 4, 2008, to register their claims with court-appointed insolvency manager Karl-Dieter Sommerfeld. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall S 2.22 Second Stock William-Strasse 21 53111 Bonn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karl-Dieter Sommerfeld Hammerweg 3 51766 Engelskirchen-Ruenderoth Germany Tel: 02263/9039-0 Fax: 02263/9039-10 The District Court of Bonn opened bankruptcy proceedings against M & S GmbH Bedachnungen on Dec. 28, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: M & S GmbH Bedachnungen Homburger Str. 3a 51588 Nuembrecht Germany MELA-KUECHEN: Claims Registration Period Ends February 4 -------------------------------------------------------- Creditors of MELA-Kuechen-Vertriebs-GmbH & Co. KG have until Feb. 4, 2008, to register their claims with court-appointed insolvency manager Dr. Dirk Andres. Creditors and other interested parties are encouraged to attend the meeting at 1:40 p.m. on Feb. 21, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen 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. Dirk Andres Neuer Zollhof 3 40221 Duesseldorf Germany The District Court of Essen opened bankruptcy proceedings against MELA-Kuechen-Vertriebs-GmbH & Co. KG on Jan. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MELA-Kuechen-Vertriebs-GmbH & Co. KG Grothusstr. 22-28 45881 Gelsenkirchen Germany MULTI-TELEFON-MARKETING GMBH: Claims Period Ends February 5 ----------------------------------------------------------- Creditors of MTM MULTI-TELEFON-MARKETING GmbH have until Feb. 5, 2008, to register their claims with court-appointed insolvency manager Wolfgang Illig. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Feb. 20, 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 Stuttgart Room 178 Hauffstr. 5 70190 Stuttgart 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: Wolfgang Illig Kriegerstr. 3 70191 Stuttgart Germany Tel: 0711/22 55 830 Fax: 0711/22 55 83 20 The District Court of Stuttgart opened bankruptcy proceedings against MTM MULTI-TELEFON-MARKETING GmbH on Jan. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MTM MULTI-TELEFON-MARKETING GmbH Attn: Carola Boehringer, Manager Reinsburgstr. 82 70178 Stuttgart Germany ORGATECH REINARTZ: Claims Registration Ends February 10 ------------------------------------------------------- Creditors of OrgaTech Reinartz Verwaltungs GmbH have until Feb. 10, 2008, to register their claims with court-appointed insolvency manager Jana Dettmer. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on April 4, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jana Dettmer Weyerstrasse. 54 50676 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against OrgaTech Reinartz Verwaltungs GmbH on Jan. 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: OrgaTech Reinartz Verwaltungs GmbH Bernhard-Letterhaus-Str. 4 50374 Erftstadt Germany Attn: Helmut Reinartz, Manager Brechtstr. 12 50171 Kerpen Germany SLF SCHORNSTEIN: Claims Registration Period Ends February 3 ----------------------------------------------------------- Creditors of SLF Schornstein-, Lueftung- und Feuerungstechnik GmbH have until Feb. 3, 2008, to register their claims with court-appointed insolvency manager Joachim Klein II. Creditors and other interested parties are encouraged to attend the meeting at 9:35 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 Cologne Meeting Hall 1240 12th Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Klein II Hansaring 79 - 81 50670 Cologne Germany Tel: 9126770 Fax: +4922191267799 The District Court of Cologne opened bankruptcy proceedings against SLF Schornstein-, Lueftung- und Feuerungstechnik GmbH on Dec. 13, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SLF Schornstein-, Lueftung- und Feuerungstechnik GmbH Attn: Johann Burgwinkel, Manager Industriestr. 156 50996 Cologne Germany SPORT LINK: Claims Registration Period Ends February 2 ------------------------------------------------------ Creditors of Sport Link & Hoefler GmbH have until Feb. 2, 2008, to register their claims with court-appointed insolvency manager Rainer J. Peters. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Feb. 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 Freiburg Hall I Holzmarkt 2 79098 Freiburg i.Br. 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: Rainer J. Peters Bismarckstr. 4 79379 Muellheim Germany Tel: 07631/16877 Fax: 07631/16878 The District Court of Freiburg opened bankruptcy proceedings against Sport Link & Hoefler GmbH on Dec. 27, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sport Link & Hoefler GmbH Attn: Gerd Link, Manager Bundesstr. 19 79423 Heitersheim Germany TON-PLAN GMBH: Claims Registration Ends February 6 -------------------------------------------------- Creditors of TON-Plan GmbH have until Feb. 6, 2008, to register their claims with court-appointed insolvency manager Ulrich Hauter. Creditors and other interested parties are encouraged to attend the meeting at 3:00 p.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 Muehlhausen Room 91 Untermarkt 17 Muehlhausen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Hauter Untermarkt 12 99974 Muehlhausen Germany The District Court of Muehlhausen opened bankruptcy proceedings against TON-Plan GmbH on Nov. 27, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TON-Plan GmbH Attn: Detlef Franke, Manager Dammig 19 37339 Teistungen Germany WICOMAT BETEILIGUNGS: Claims Registration Period Ends February 5 ---------------------------------------------------------------- Creditors of Wicomat Beteiligungs-GmbH have until Feb. 5, 2008, to register their claims with court-appointed insolvency manager Dr. Wolfgang Bilgery. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Feb. 21, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Pforzheim Mannheimer Str. 17 75179 Pforzheim 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. Wolfgang Bilgery Humboldtstr. 16 70178 Stuttgart Germany The District Court of Pforzheim opened bankruptcy proceedings against Wicomat Beteiligungs-GmbH on Jan. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wicomat Beteiligungs-GmbH Attn: Erwin A. Sauter, Manager Pforzheimer Str. 95 75417 Muehlacker Germany ============= I R E L A N D ============= RITCHIE IRELAND: Wants to Hike Borrowing by US$1.8MM to US$4.5MM ---------------------------------------------------------------- Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-linked Strategies Trading (Ireland) II Ltd. ask the U.S. Bankruptcy Court for the Southern District of New York to authorize an increase of postpetition financing by US$1.8 million to US$4.5 million, Bill Rochelle of Bloomberg News reports. As reported in the Troubled Company Reporter on Sept. 18, 2007, the Court authorized Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd. to obtain a US$2.7 million postpetition financing from its affiliate, Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. Mr. Rochelle relates that US$1.55 million will go to Coventry First LLC as settlement over a dispute contesting ownership of files containing information about more than 1,000 life insurance policies the Debtors plan to sell. In December 2007, the Debtors asked the Court to determine who rightfully owns the files arguing that they cannot sell the policies for an acceptable price without those files, the TCR disclosed citing Bloomberg News. Coventry, the seller of the policies, contended that it never sold the files to the Debtors. In October 2007, the Court approved the procedures proposed by the Debtors for the sale of those policies, which constitutes all or substantially all of the Debtors' assets. About Ritchie (Ireland) Based in Dublin, Ireland, Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd. -- http://www.ritchiecapital.com/-- are Dublin-based funds of hedge fund group Ritchie Capital Management LLC. The Debtors were formed as special purpose vehicles to invest in life insurance policies in the life settlement market. The Debtors filed for Chapter 11 protection on June 20, 2007 (Bankr. S.D.N.Y. Case Nos. 07-11906 and 07- 11907). Allison H. Weiss, Esq., David D. Cleary, Esq., and Lewis S. Rosenbloom, Esq., at LeBoeuf, Lamb, Greene & MacRae, LLP represent the Debtors in their restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date. When the Debtors filed for bankruptcy, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a Chapter 11 plan of liquidation expires on April 15, 2008. ========= I T A L Y ========= ALITALIA SPA: AirOne SpA Taps Seabury Group to Boost Offer --------------------------------------------------------- AirOne S.p.A. has tapped Seabury Group LLC to support its offer to acquire the Italian government's 49.9% stake in Alitalia S.p.A., Bloomberg News reports. AirOne chairman Carlo Toto insisted in mid-January that it presented more economical offer for Alitalia, noting that its business plan for the national carrier is supported by "four among the world's most important banks that are ready to formalize their commitment immediately should a private negotiation be initiated." Alitalia and Italy have selected Air France-KLM SA's non-binding offer over AirOne's. 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 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. ARES FINANCE 2: S&P Affirms Class E Notes at BB ----------------------------------------------- Standard & Poor's Ratings Services has removed from CreditWatch with positive implications and raised the credit rating on the class D notes issued by ARES FINANCE 2 S.A. At the same time, the rating on the class E notes was affirmed. The notes issued by ARES 2 are backed by a pool of secured and unsecured nonperforming loans originated in Italy by Banca Nazionale del Lavoro SpA (AA-/Positive/A-1+). The servicer in the transaction is Societ. Gestione Crediti SpA, and the portfolio advisor is Archon Group Italia S.r.l., ranked by Standard & Poor's as "ABOVE AVERAGE". The raising of the rating on the class D notes reflects the de- leveraging of the transaction, the amount of cash awaiting distribution from courts and prospects of further recoveries on the residual portfolio. As of Dec. 31, 2008, cash awaiting distribution from the courts was approximately EUR41 million. A further EUR6.1 million in cash is expected from the accepted negotiated resolution. Distribution from the courts in Italy takes on average one year for foreclosures, and 18 months for bankruptcy proceedings. The residual unresolved gross book value stands at EUR646 million, split across 2369 loans with 1803 borrowers. Cumulative net collections for the transaction remain below the servicer's and Standard & Poor's base-case scenario level, at EUR604 million. Although slower than expected, collections have been slightly ahead of expectations in terms of profitability, which has gradually improved. The underlying portfolio continues to advance through the legal stages of the resolution process. At the end of the latest reporting period, 8.3% of nonbankrupt and 16.6% of bankrupt unresolved positions were in the post-CTU phase. On the back of the ongoing resolution of the underlying portfolio, net collections are gradually decreasing. Average net collections in the past 12 months have been approximately EUR37 million, about 20% lower than was recorded in the one-year period ending December 2006. S&P's review of the ratings was made solely on the basis of the information contained in the investor reports and the initial information received at closing. No updated business plans for recoveries were provided. In this kind of transaction, S&P would normally expect to receive and be able to rely on this kind of information. Despite this lack of transparency, the review of the residual portfolio and the ongoing de-leveraging of the transaction was enough to justify the rating action taken. Ratings List ARES FINANCE 2 S.A. EUR684.9 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- D A A-/Watch Pos Rating Affirmed Class Rating ----- ------ E BB ARES FINANCE SRL: S&P Rates Class F Notes at BB ----------------------------------------------- Standard & Poor's Ratings Services has removed from CreditWatch with positive implications and raised its credit rating on the class D notes issued by ARES FINANCE S.r.l. At the same time, the rating on the class E notes was removed from CreditWatch positive and affirmed, and the class F notes were affirmed. The notes are backed by a pool of secured and unsecured nonperforming loans originated in Italy by Banca Nazionale del Lavoro SpA (AA-/Positive/A-1+). The servicer in the transaction is Societa Gestione Crediti SpA, and the portfolio advisor is Archon Group Italia S.r.l., ranked by Standard & Poor's as "ABOVE AVERAGE". The raising of the rating on the class D notes reflects the de- leveraging of the transactions, the cash already collected in the first three months of the last collection period, the amount of cash awaiting distribution from courts, and the prospects of further recoveries on the residual portfolio. As of the Dec. 30, 2007, cash awaiting distribution from the courts was approximately EUR53 million. A further EUR0.6 million in cash is expected from accepted negotiated resolutions. On average, distribution from the courts in Italy takes one year for foreclosures, and 18 months for bankruptcy proceedings. EUR24.6 million has been collected in the first half of the current semiannual collection period and will be distributed on the next interest payment date. The residual unresolved gross book value stands at EUR909 million, split across 4,284 loans with 2,049 borrowers. As of the latest interest payment date, cumulative net collections for the transaction remain below the servicer's and Standard & Poor's base-case scenario level, at EUR549 million. Although slower than expected, collections have been well ahead of expectations in terms of profitability. The underlying portfolio continues to advance through the legal stages of the resolution process. However, despite the gradual resolution of the underlying portfolio, net collections continue to come through steadily. The average net collections in the past 12 months has been approximately EUR50 million, only 4% lower than was recorded in the one-year period ending in September 2006. Collections in the first half of the current collection period confirm this trend. Performance data on collections and profitability shows an increasing reliance of the servicer during the court resolution process. This is consistent with the fact that the portfolio is now in a more advanced state of the work-out process. S&P's review of the ratings was made solely on the basis of the information contained in the investor reports and the initial information received at closing. No updated business plans for recoveries were provided. In this kind of transaction, we would normally expect to receive and be able to rely on this kind of information. Despite this lack of transparency, the review of the residual portfolio and the ongoing de-leveraging of the transaction was enough to justify the rating action taken. The 'AAA' rated class C notes are unaffected by these rating actions. Ratings List ARES FINANCE S.r.l. EUR633.20 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- D A- BBB+/Watch Pos Rating Removed From CreditWatch Positive And Affirmed Rating ------ Class To From ----- -- ---- E BBB- BBB-/Watch Pos Rating Affirmed Class Rating ----- ------ F BB FIAT SPA: Improved Performance Cues Moody's to Keep Ba1 Ratings --------------------------------------------------------------- Moody's Investors Service affirmed Fiat SpA's Ba1 Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook was maintained. The short term Not Prime rating remains unchanged. "In 2007 Fiat continued on its successful path towards a sustainable recovery of its financial profile mainly driven by further operating improvements at Fiat Group Automobiles but also higher contributions from all other industrial businesses in particular Iveco and CNH", Falk Frey, Senior Vice President and the lead analyst at Moody's for the European automotive sector, said. "This strong performance of Fiat is very much in line with Moody's expectations of late August when we changed our outlook to positive on the rating". "Moody's believes that 2008 might be more challenging for Fiat, as a weakness in the overall economy and the strengthening competitive landscape could slow down the strong growth observed in the last few years. Should Fiat be able to sustain its market share performance achieved in Europe last year also during 2008 while at least consolidating the level of operating profitability reached in 2007, the ratings could be upgraded to investment grade over the next 6 to 12 months," Frey went on to say. Moody's says that the positive outlook is based on the expectation that Fiat is well positioned to sustain the current momentum, benefiting from: (i) the strong demand of the Fiat 500 launched in third quarter 2007; (ii) a gradual overhaul of its Alfa Romeo and Lancia models; (iii) an ongoing improvement of Fiat Group Automobiles' dealer network; as well as (iv) ongoing efficiency gains. Moody's nonetheless notes that company's performance may no longer be aided by the favorable 2007 environment, notably in the company's core markets, but that the heavy restructuring engaged by the company in the past years should mitigate this possible headwind. As Moody's outlined in its last press release dated Aug. 22, 2007, the possibility of another positive rating change as indicated by the positive outlook would be mainly dependent on Fiat's ability to demonstrate the robustness of its current business model in a more challenging market environment in 2008. Among those challenges are Fiat's ability: (i) to maintain positive market share trend in Western Europe and Latin America, Fiat's principal markets and &nb