T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, January 29, 2008, Vol. 8, No. 20 Headlines A U S T R I A D.S. KONSTRUKTION: Claims Registration Period Ends Feb. 7 ELTNER MANAGEMENT: Claims Registration Period Ends February 6 FASSADEN YAVUZ: Wiener Neustadt Court Orders Business Shutdown HEIMBUCHER TRANSPORTE: Claims Registration Ends Feb. 4 ING. BUESING: Claims Registration Period Ends Feb. 1 LIION LLC: Claims Registration Period Ends Feb. 4 M & S BAU: Claims Registration Period Ends Feb. 4 R. GRAF & CO: Graz Court Orders Business Shutdown SIGLAM-SECUGLASS: Claims Registration Period Ends Feb. 4 SPORTBAU LLC: Steyr Court Orders Business Shutdown B E L G I U M ADVANCED MICRO: Fitch Further Junks Senior Unsecured Debt CHIQUITA BRANDS: May Bid for Five Million Boxes of Bananas MEGA BRANDS: Posts US$11 Million Net Loss in 2007 Third Quarter POPE & TALBOT: Auction of Remaining Wood Products Business Set POPE & TALBOT: Pulp Business Amended Bidding Procedures Approved POPE & TALBOT: Pwc Recommends Extension of Stay Period QUEBECOR WORLD: Bankruptcy Won't Affect Quebecor Inc. and Units QUEBECOR WORLD: Taps Richard Kibbe as Conflicts Counsel QUEBECOR WORLD: Wants Donlin Recano as Claims and Noticing Agent TENNECO INC: Incurs US$72 Million Net Loss in Fourth Quarter D E N M A R K BLOCKBUSTER INC: Movie Gallery Acquisition Unlikely, COO Says F R A N C E DELPHI CORP: To Sell Steering Business to Platinum Equity DELPHI CORP: Bankruptcy Court Confirms Amended Chapter 11 Plan GOODYEAR TIRE: European Unit Eyes Production Cuts in France HEXCEL CORP: Net Income Down to US$13 Million in Fourth Quarter IMMI BAROSTAR: Besancon Court Orders Administration PRIDE INT'L: Awards Ultra-Deepwater Drillship Deal to Samsung G E R M A N Y AMCO TONTRAGER: Claims Registration Ends Feb. 19 BAUCENTER ANDREAS: Claims Registration Period Ends Feb. 18 DENTAL EXCELLENCE: Claims Registration Ends Feb. 19 ELEKTRO MELZER: Claims Registration Period Ends Feb. 6 FAHRZEUG SERVICE: Claims Registration Period Ends Feb. 18 FDD FORMULAR: Claims Registration Ends Feb. 19 H+S ENTERTAINMENT: Claims Registration Period Ends Feb. 5 KARLSRUHE EINS: Claims Registration Period Ends Feb. 18 LOELL'S WURSTER: Claims Registration Period Ends Feb. 18 MERIDIAN VERWALTUNGS: Claims Registration Ends Feb. 18 MOEBEL MAIWALD: Claims Registration Period Ends Feb. 18 PIN GROUP: Private Equity Firms In Talks to Acquire Business PIN GROUP: To Carry Out Statutory Minimum Wage This Month SCHUSTER UMWELTDIENST: Claims Registration Period Ends Feb. 8 SDS GMBH: Claims Registration Period Ends Feb. 18 SPASS IM PARK: Claims Registration Period Ends Feb. 3 SPATH GMBH: Claims Registration Period Ends Feb. 18 TEKIN BAU: Claims Registration Period Ends Feb. 18 WEITRONIC GMBH: Claims Registration Period Ends Feb. 18 WSW BAUTAGER: Claims Registration Ends Feb. 18 ZECHEN GASTRO: Claims Registration Ends Feb. 18 H U N G A R Y PROPEX INC: Gets Interim OK to Use BNP Paribas' Cash Collateral PROPEX INC: Wants Until April 2 to File Schedules & Statements SUN MICROSYSTEMS: Earns US$260 Mln in Second Qtr. Ended Dec. 30 I T A L Y ALITALIA SPA: Political Crisis Spurs Parties to Speed Up Talks FIAT SPA: Posts EUR58.5 Billion in Revenues for Fiscal Year 2007 TRW AUTOMOTIVE: Earns US$23 Mln in Third Quarter Ended Sept. 28 TRW AUTOMOTIVE: Moody's Affirms 'Ba2' Corporate Family Rating XEROX CORPORATION: Earns US$1.1 Billion in 2007 K A Z A K H S T A N AGRO SNAB: Proof of Claim Deadline Slated for Feb. 27 ALFA TRANS: Creditors Must File Claims by Feb. 27 AMANKARAGAISKAYA MTS: Claims Filing Period Ends Feb. 22 ATAKENT-NUR LLP: Creditors' Claims Due on Feb. 22 INTER COMMERCE: Claims Registration Ends Feb. 27 ENERGO-TRANSIT LLP: Claims Deadline Slated for Feb. 27 ISLAM & K: Creditors Must File Claims by Feb. 22 KAZINVEST MINERAL: Claims Filing Period Ends Feb. 27 LEX DOMINUS: Creditors' Claims Due on Feb. 27 RAITEPLOCOMMUNEENERGO LLP: Claims Registration Ends Feb. 22 K Y R G Y Z S T A N ELECTRO STROY: Creditors Must File Claims by Feb. 15 L U X E M B O U R G EVRAZ GROUP: Completes Acquisition of Claymont Steel EVRAZ GROUP: Acquires 100% of ZapSibTETs After Buyout Offer PIN GROUP: Private Equity Firms In Talks to Acquire Business PIN GROUP: To Carry Out Statutory Minimum Wage This Month N E T H E R L A N D S IMPRESS HOLDINGS: S&P Affirms B+ Ratings on Delayed IPO KHAMSIN CREDIT: Moody's Cuts Rating to B3 on Series 6 Notes ROSNEFT OIL: To Receive US$2 Billion Loan from Vnesheconombank X5 RETAIL: Banks Commence Syndication for US$1.1 Bln Facility P O L A N D OPTIMUS SA: Files Another Bankruptcy Petition R U S S I A EVRAZ GROUP: Completes Acquisition of Claymont Steel EVRAZ GROUP: Acquires 100% of ZapSibTETs After Buyout Offer X5 RETAIL: Banks Commence Syndication for US$1.1 Bln Facility S P A I N SANTANDER HIPOTECARIO 4: Fitch Junks EUR14.8 Mln Class F Notes S W E D E N AVNET INC: Earns US$142.2 Million in Second Qtr. Ended Dec. 29 S W I T Z E R L A N D DISCO BAR: Lucerne Court Starts Bankruptcy Proceedings GALCOMET JSC: Creditors' Liquidation Claims Due by Feb. 4 MONITOR TOOLS: Creditors' Liquidation Claims Due by Feb. 4 SAFEX JSC: Zug Court Starts Bankruptcy Proceedings SATROP HOLDING: Creditors' Liquidation Claims Due by Feb. 4 SCHUHHAUS SCHUBIGER: Creditors Must File Claims by Feb. 4 WEP SYSTEMS: Creditors' Liquidation Claims Due by Feb. 4 WERNER ELSIG: Creditors' Liquidation Claims Due by Feb. 4 U K R A I N E CHEMISTRY TRADE: Proofs of Claim Filing Ends Feb. 7 COMBI-SERVICE LLC: Creditors Must File Claims by Feb. 7 ENERGY LIGHT: Proofs of Claim Filing Ends Feb. 7 EUPATORIYA MEAT-PACKING: Creditors Must File Claims by Feb. 7 FOZZI-STRATE LLC: Creditors Must File Claims by Feb. 7 FRUIT AND VEGETABLES: Creditors Must File Claims by Feb. 7 GLOBUS-LTD-TRADE LLC: Proofs of Claim Filing Ends Feb. 7 JUPITER-COMPANY LLC: Proofs of Claim Filing Ends Feb. 7 RESOURCES-2001 LLC: Creditors Must File Claims by Feb. 7 TECHNO-ART LLC: Creditors Must File Claims by Feb. 7 YENAKIYEVO MOTORCAR 11469: Creditors' Claim Due Feb. 7 U N I T E D K I N G D O M AXIUM INTERNATIONAL: Unit to Sell All Assets to MPS Group BARABAS CULTURAL: Brings In Liquidators from Tenon Recovery CASTLE FINANCE: Moody's Junks Series 4 EUR20 Million Notes CAVALIER TECHNICAL: Taps Liquidators from Vantis CHESS III: Moody's Junks Series 2007-1 EUR100 Million Notes CHRYSLER LLC: Invests US$27 Million in Toledo Machining Plant DCL INTERIORS: Taps Begbies Traynor to Administer Assets DOLCIS LTD: Appoints Joint Administrators from KPMG GETTY IMAGES: S&P Holds BB Corp. Credit Rating with Neg. Outlook FORD MOTOR: Auto Credit Arm Earns US$775 Million in 2007 FORD MOTOR: Posts US$2.7 Billion Net Loss in Fiscal Year 2007 HAINES WATTS: Appoints Joint Administrators from PwC HH ON-LINE: Joint Liquidators Take Over Operations INSIGHT MANAGEMENT: Calls In Liquidators from Moore Stephens MAULER PLASTICS: Appoints Liquidators from Vantis RANK GROUP: Nears GBP700 Mln Pension Scheme Deal with Goldman REAL ESTATE: High Court Orders Winding Up Proceedings SAM TOOLING: Brings In Administrators from PwC SHAW GROUP: Environmental Unit Bags Deal from General Electric TECHNICAL MOULDED: Claims Filing Period Ends March 20 TELTRONICS INC: Sells Telident 911 Assets to Amcom Software TELTRONICS INC: Sept. 30 Balance Sheet Upside-Down by US$4.4 Mln * Chadbourne & Parke Expands London Office for Staff Additions * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= D.S. KONSTRUKTION: Claims Registration Period Ends Feb. 7 --------------------------------------------------------- Creditors owed money by LLC D.S. Konstruktion Bau (FN 243373) 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. 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 Berneggerat: Dr. Kurt Bernegger c/o Mag. Maria Kainer Jaquingasse 21 1030 Vienna Austria Tel: 01/799 15 80 Fax: 01/796 59 14 E-mail: kanzlei@bernegger-wt.com 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. FASSADEN YAVUZ: Wiener Neustadt Court Orders Business Shutdown -------------------------------------------------------------- The Land Court of Wiener Neustadt entered Dec. 20, 2008, an order shutting down the business of KEG Fassaden Yavuz (FN 250229i). Court-appointed estate administrator Helmut Kientzl 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. Helmut Kientzl Rudolf Diesel-Strasse 26 2700 Wiener Neustadt Austria Tel: 02622/23726 Fax: 02622/83969 E-mail: office@kientzl.at Headquartered in Wiener Neustadt, Austria, the Debtor declared bankruptcy on Dec. 11, 2007 (Bankr. Case No 11 S 123/07k). HEIMBUCHER TRANSPORTE: Claims Registration Ends Feb. 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 Heitzinger at: 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 Feb. 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). LIION LLC: Claims Registration Period Ends Feb. 4 ------------------------------------------------- Creditors owed money by LLC LIION (FN 288432s) have until Feb. 4, 2008, to file written proofs of claim to court-appointed estate administrator Annemarie Kosesnik-Wehrle at: Dr. Annemarie Kosesnik-Wehrle c/o Dr. Stefan Langer Oelzeltgasse 4/6 1030 Vienna Austria Tel: 713 61 92 Fax: 713 61 92-22 E-mail: kanzlei@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Feb. 18, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 20, 2007 (Bankr. Case No. 3 S 134/07m). Stefan Langer represents Dr. Kosesnik-Wehrle in the bankruptcy proceedings. M & S BAU: Claims Registration Period Ends Feb. 4 ------------------------------------------------- Creditors owed money by LLC M & S Bau (FN 266840m) have until Feb. 4, 2008, to file written proofs of claim to court-appointed estate administrator Bernhard Eder at: Dr. Bernhard Eder c/o Dr. Herbert Hochegger Brucknerstrasse 4 1040 Vienna Austria Tel: 505 78 61 Fax: 505 78 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. 18, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 20, 2007 (Bankr. Case No. 3 S 160/07k). Herbert Hochegger represents Dr. Eder in the bankruptcy proceedings. R. GRAF & CO: Graz Court Orders Business Shutdown ------------------------------------------------- The Land Court of Graz entered Dec. 13, 2007, an order shutting down the business of LLC R. Graf & Co. KEG (FN 233793p). Court-appointed estate administrator Heimo Hofstatter 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. Heimo Hofstatter c/o Mag. Stefan Kohlfuerst Marburgerkai 47 8010 Graz Austria Tel: 0316/815454 Fax: 0316/815454-22 E-mail: advokat@hofstaetter.co.at Headquartered in Graz - Strassgang, Austria, the Debtor declared bankruptcy on Dec. 12, 2007 (Bankr. Case No 26 S 114/07w). Stefan Kohlfuerst represents Dr. Hofstatter in the bankruptcy proceedings. SIGLAM-SECUGLASS: Claims Registration Period Ends Feb. 4 -------------------------------------------------------- Creditors owed money by LLC Siglam-Secuglass (FN 240234k) have until Feb. 4, 2008, to file written proofs of claim to court- appointed estate administrator Hubert Maier at: Dr. Hubert Maier Vormarktstrasse 17 4310 Mauthausen Austria Tel: 07238/3240 Fax: 07238/3611 E-mail: office@maier-rechtsanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 18, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Room 522 Fifth Floor Linz Austria Headquartered in Ansfelden, Austria, the Debtor declared bankruptcy on Dec. 18, 2007 (Bankr. Case No. 12 S 100/07d). SPORTBAU LLC: Steyr Court Orders Business Shutdown -------------------------------------------------- The Land Court of Steyr entered Dec. 18, 2007, an order shutting down the business of LLC Sportbau (FN 233569i). Court-appointed estate administrator Wolfgang Strasser 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. Wolfgang Strasser Hauptplatz 11 4300 St. Valentin Austria Tel: 07435/52 4 37 E-mail: st-valentin@advocat24.at Headquartered in Enns, Austria, the Debtor declared bankruptcy on Dec. 13, 2007 (Bankr. Case No 14 S 47/07w). ============= B E L G I U M ============= ADVANCED MICRO: Fitch Further Junks Senior Unsecured Debt --------------------------------------------------------- Fitch Ratings has downgraded these ratings on Advanced Micro Devices Inc.: -- Issuer Default Rating to 'B-' from 'B'; and -- Senior unsecured debt to 'CCC'/RR6 from 'CCC+/RR6'. The Rating Outlook remains Negative. Approximately US$4.1 billion of debt securities are affected by Fitch's actions. The downgrade and Negative Outlook mainly reflect Fitch's expectations that Advanced Micro's: -- operating performance, which was significantly weaker than expected over the last several quarters due to a combination of a key product delay and Intel Corp.'s strengthened product portfolio, will not meaningfully improve over the near-term. For 2008, Fitch believes the company will benefit from anticipated microprocessor unit (MPU) growth, a refreshed product portfolio, and lower fixed costs after having restructured operations during 2007. Nonetheless, Fitch believes average selling prices will remain pressured, driven by Intel's low-cost manufacturing footprint, sales mix shift toward lower- priced models in emerging markets and desktops for newer original equipment manufacturer relationships, constraining potential profitability expansion. -- financial flexibility will continue to be limited by the company's modest liquidity position (consisting solely of US$1.9 billion of available cash, an amount that could be augmented by additional equipment sales during 2008), particularly with the company's limited intermediate-term profitability prospects and significant planned capital expenditures of US$1.1 billion in 2008. Fitch believes the company will burn more than US$500 million in 2008 (compared to US$1.9 billion usage in 2007) unless the company cuts capital spending, either via postponing discretionary investments and/or moving forward with an 'asset light' strategy. Fitch believes that additional negative rating actions would likely occur if: * the company depletes its current cash balance at a faster than expected pace; or * profitability contracts further. The ratings could be stabilized if over the next few quarters, the company: * steadily improves profitability; and * bolsters financial flexibility by obtaining additional external funding. Ratings concerns continue to center on: -- Significant product technology risk associated with the MPU market, resulting in cyclical operating results. However, given its relatively weak financial flexibility and limited market share, Fitch believes the company's ability to withstand technology roadmap missteps is limited. -- Intel's meaningful manufacturing technology advantage over Advanced Micro, driven by capital expenditures consistently in excess of US$5 billion, effectively requiring the company to continue investing aggressively to upgrade its manufacturing facilities; and -- expectations that the company's debt levels will remain high, driven by the company's investment requirements, thereby constraining its financial flexibility over the long-term. The ratings are supported by the company's: -- expectations for solid MPU unit growth over the next couple of years; -- strengthened and expanding relationships with all personal computer original equipment manufacturers, most recently including Toshiba Corporation ('BBB/F2' with a Stable Outlook by Fitch) and Dell Inc. ('A/F1'; Stable Outlook), driven in part by its enhanced ability to provide platform products to the marketplace following the acquisition of ATI Technologies in October 2006; and -- staggered and longer-term debt maturities, as well as its now proven willingness to cut capital spending in the face of less favorable market conditions. At Sept. 29, 2007, total debt was US$5.3 billion and consisted of: -- US$1.0 billion of secured debt related to Fab 36, including US$866 million of Fab 36 Secured Euro Term Loan due 2011; -- US$1.5 billion 5.75% convertible senior unsecured notes due 2012; -- US$2.2 billion 6% senior unsecured convertible notes due 2015; -- US$390 million 7.75% senior unsecured notes due 2012; and -- other debt, including capital leases, of approximately US$242 million. The Recovery Ratings reflect Fitch's belief that Advanced Micro would be liquidated rather than reorganized in a bankruptcy scenario, given Fitch's estimates that the company's projected liquidation value of US$1.1 billion would exceed a reorganization value of only US$615 million, driven by the meaningful deterioration of the company's operating EBITDA over the past year. In estimating liquidation, Fitch applies advance rates of 80%, 20%, and 10%, respectively, to its accounts receivables, inventories, and property, plant, and equipment balances as of the quarter ended Dec. 31, 2007. Fitch arrives at an adjusted reorganization value of US$1.0 billion after subtracting administrative claims. Based upon these assumptions, and given that approximately US$1.0 billion of unrated borrowings related to Fab 36 and capital leases are essentially secured, minimal recovery (0-10%) would be available for the approximately US$4.2 billion of senior unsecured debt, resulting in 'RR6' ratings. Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative processing solutions in the computing, graphics and consumer electronics markets. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. CHIQUITA BRANDS: May Bid for Five Million Boxes of Bananas ---------------------------------------------------------- Chiquita Brands International may bid for the five million boxes of bananas that Panama will auction next month, Reuters reports. Western Panamanian co-operative Coosemupar wants to auction some four million, 40-pound boxes of premium quality bananas to international buyers, and one million boxes of other qualities, Panama's commodity exchange chief Abelardo Carles told Reuters. Reuters relates that the auction would be on Feb. 14. It will mark the end of Coosemupar's long-standing distribution deal with Chiquita Brands that gave the firm the exclusive rights to by the crop. Coosemupar told Reuters that it seeks to sell bananas to European distributors. However, Chiquita Brands is unlikely to be excluded from bidding. According to Reuters, the sale accounts for around a quarter of Panama's yearly crop. It could bring in US$35 million. The sale is a significant quantity for large buyers although Panamanian banana production is small compared to Costa Rica and Colombia, Reuters states, citing Mr. Carles. Cincinnati, Ohio-based Chiquita Brands International Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Belgium, Colombia, Germany, Panama, Philippines, among others. * * * In May 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter-Europe reported on May 8, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. MEGA BRANDS: Posts US$11 Million Net Loss in 2007 Third Quarter --------------------------------------------------------------- Mega Brands Inc. reported a net loss of US$11 million for the third quarter ended Sept. 30, 2007, compared with net income of US$18.0 million in the same period in 2006. Net sales in the third quarter of 2007 decreased 8.8% to US$184.1 million compared to US$201.8 million in the corresponding period last year. The reduction in sales was primarily due to production delays in Asia that resulted in at least US$15.0 million of orders not shipped, as well as lower shipments of MAGNETIX products. For the nine-month period ended Sept. 30, 2007, net sales increased 3.5% to US$395.7 million compared to US$382.5 million in the same period last year. Gross profit in the third quarter of 2007 drop to US$35.8 million compared to US$90.5 million in the third quarter of 2006. Gross margin declined to 19.5% compared to 44.8% in the third quarter of last year. Excluding the impact of sales of excess inventory of US$19.0 million and the recording of a non-cash inventory revaluation adjustment of approximately US$20.0 million, the gross margin was 38.1% for the quarter ended Sept. 30, 2007. For the nine-month period ended Sept. 30, 2007, gross profit was US$92.5 million compared to US$167.0 million for the same period in 2006. Excluding the MAGNETIX product recall and other charges of US$30.5 million, the sale of excess inventory and the recording of a non-cash inventory revaluation adjustment, the gross margin was 41.3% compared to 43.7% in the same period of the prior year. Loss from operations amounted to US$5.1 million for the third quarter of 2007 compared to earnings from operations of US$26.4 million in the corresponding 2006 period. For the nine-month period ended Sept. 30, 2007, the loss from operations was US$31.7 million compared to an operating profit of US$40.7 million in the corresponding period of 2006. This amount includes the MAGNETIX product recall and other charges and litigation expenses of US$36.2 million, once the recovery of US$3.6 million in product liability settlement from the company's insurers is netted. It also includes the inventory related charges totaling approximately US$35.0 million. Interest and other expenses in the third quarter of 2007 were US$7.0 million compared to US$6.1 million in the same 2006 period. For the nine months ended Sept. 30, 2007, interest and other expenses amounted to US$19.8 million compared to US$16.4 million in the prior year. Income taxes for the third quarter ended Sept. 30, 2007, amounted to a recovery of US$1.0 million, compared to an expense of US$2.3 million in the corresponding period of the prior year. For the nine months ended Sept. 30, 2007, the income tax recovery was US$20.6 million compared to an income tax expense of US$1.7 million in the prior year. Long-Term Debt Total long-term debt at the end of September 2007 was US$321.6 million compared to US$312.0 million at the end of 2006. The increase in long-term debt is mainly related to working capital requirements. As at Sept. 30, 2007, the company's long-term debt was comprised mainly of US$9.6 million under its Term A facility maturing in 2009, US$254.8 million under its Term B facility maturing in 2012 and US$60.6 million drawn against its US$120.0 million revolving credit facility, offset partially by unamortized deferred financing costs of US$3.9 million. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed US$811.9 million in total assets, US$520.5 million in total liabilities, and US$291.4 million in total stockholders' equity. About Mega Brands Inc. MEGA Brands Inc. (TSE: MB) -- http://www.megabrands.com/-- designs, manufactures and markets high quality toys and stationery products. Headquartered in Montreal, the company has approximately 4,500 employees with offices, manufacturing facilities or distribution centers in Belgium, United Kingdom, Germany, France, Spain, Mexico, Australia, among others. The Corporation's products are sold in over 100 countries. * * * As reported in the Troubled Company Reporter on Jan. 28, 2008, Standard & Poor's Ratings Services lowered its corporate credit and bank loan ratings on 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. POPE & TALBOT: Auction of Remaining Wood Products Business Set -------------------------------------------------------------- Pope & Talbot Inc. asks the U.S. Bankruptcy Court for the District of Delaware's authority to sell their remaining wood products business to the highest and best bidder at an auction to be held at 10:00 a.m. (Eastern time), on Feb. 5, 2008, at the New York offices of Shearman & Sterling LLP. Unlike the Debtors' sale of their wood products business assets to International Forest Products Limited, and the proposed sale of their pulp business assets to PT Pindo Deli Pulp & Paper Mills, there is no stalking horse for their Remaining Wood Products Business, Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, informs the Hon. Christopher S. Sontchi. Instead, the Auction is expected to be a fully open auction. Pursuant to the Court-approved Remaining Wood Products Business Bid Procedures, the Debtors served a cure cost notice on certain non-debtor counterparties to various assigned contracts, providing notice of (i) the Debtors' intent to assume and assign the Assigned Contracts to the successful bidder at the Auction, (ii) the Debtors' determination of the Cure Cost with respect to each Assigned Contract, (iii) procedures governing the filing of objections, if any, to the proposed Cure Costs; and (iv) procedures governing resolution of disputes, if any, regarding Cure Costs. In the event more than one acceptable qualified bid is submitted at the Auction, the Debtors will, at a sale hearing, seek the Court's approval of the Successful Bid, and if applicable, the back-up bid procedures. Ms. Jones asserts that time is of the essence with respect to the approval of the sale of the Debtors' Remaining Wood Products Business. The sale of the Assets will afford the Debtors greater certainty regarding their ability to make distributions to secured or unsecured creditors, she says. The Debtors also seek the Court's authority to: (i) assume and assign to the Successful Bidder, effective on the closing date, certain contracts; and (ii) execute and deliver to the Successful Bidder, the documents or other instruments as may be necessary to cure, transfer and assign the Assigned Contracts. The Debtors reserve the right to exclude any Assigned Contract identified in a form asset purchase agreement, and identify the contract as an excluded asset in a select purchase agreement. Some of the Assigned Contracts are shared contracts, which generally comprise two or more individual contracts, which set forth specific terms and conditions; and a master agreement that governs each of the individual contracts. Ms. Jones clarifies that the Debtors will assume and assign only those parts of the Shared Contracts which are related to their Remaining Wood Products Business. If any monetary defaults exist under any Assigned Contract, the Debtors will cure any default prior to the assumption and assignment of the Assigned Contract, to the extent that U.S. law and Canadian law applies to the assumption and assignment of the contracts. Any non-monetary default that exist under a non-residential real property lease that is an Assigned Contract will be cured by the Successful Bidder, by performance at the time of and after assumption and assignment of the lease, pursuant to the terms of the Selected APA, to the fullest extent required under applicable law. For avoidance of doubt, nothing in the Sale Motion will be deemed an admission that U.S. law applies to the assumption and assignment of any of the Assigned Contracts. A full-text copy of the Debtors' proposed APA for their Remaining Wood Products Business is available for free at: http://researcharchives.com/t/s?2768 As reported in the Troubled Company Reporter on Jan. 3, 2008, the British Columbia Supreme Court approved the Debtors' proposed bidding procedures for the sale of their remaining wood products business. The Canadian Court likewise authorized the Debtors to schedule an auction, if necessary, to solicit bids for their Remaining Wood Products Business. As reported in the Troubled Company Reporter on Dec. 14, 2007, the U.S. Court had earlier approved in all respects the Debtor's bidding and sale procedures with respect to the sale of certain wood products assets not contemplated to be sold to International Forest Products and the assumption of related liabilities, including: (1) the submission, consideration, qualification and acceptance of Qualified Overbids submitted to the Debtors; (2) the Auction; and (3) the identification and determination of the Successful Bid and the Back-Up Bid. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the U.S. and Canada. Markets for the company's products include the U.S., Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expires on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Shearman & Sterling LLP is the Debtor's bankruptcy counsel, while Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. represents the Debtors as bankruptcy co-counsel. The Official Committee of Unsecured Creditors selected Fried, Frank, Harris, Shriver & Jacobson LLP as its bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Pulp Business Amended Bidding Procedures Approved ---------------------------------------------------------------- Pope & Talbot Inc. and debtor-affiliates sought and obtained the U.S. Bankruptcy Court for the District of Delaware's approval of amended bidding procedures for the sale of their pulp business assets located in Halsey, Oregon; Nanaimo, British Columbia; and Mackenzie, British Columbia. The Amendment included provisions for an asset purchase agreement the Debtors entered into on Jan. 8, 2008, with PT Pindo Deli Pulp & Paper Mills, as the stalking horse bidder, with respect to the Pulp Business Assets. The Court has ruled that Pindo Deli is entitled to a US$3,800,000 Break-up Fee, which will be deemed as an allowed administrative priority expense without the need for the filing of any claim. The Court notes that Pindo Deli will be paid the Break-up Fee if, among other things: -- Pindo Deli is not selected as the "successful bidder" for the Debtors' Pulp Business; -- Pindo Deli is selected as the Successful Bidder, but the transaction approval orders have not been entered by the Bankruptcy Court and Canadian Court by Feb. 13, 2008; -- the closing of the sale will not have occurred by the sale termination date; -- the Debtors adjourn or continue the auction to a date after Feb. 5, 2008, without the prior consent of the Purchaser; or -- the Debtors determine to pursue one or more transactions other than pursuant to the Procedures Order. The Break-up Fee is approximately 3.6% of the cash Purchase Price, without regard to liabilities being assumed or adjustments to the Purchase Price. The U.S. Trustee and the Official Committee of Unsecured Creditors tried to block the Court's approval of the Debtors' proposed Break-up Fee. Kelly Beaudin Stapleton, the United States Trustee for Region 3, complained that the Break-up Fee is "excessive." The Creditors Committee objected to various aspects of the Break-up Fee that are "designed to chill bidding and impede value maximization." On the other hand, Ableco Finance LLC, as agent for itself and the other term lenders party to the DIP loan agreement, reserves its rights with respect to any determination regarding whether the Pulp Business asset should be sold, and which offer is highest or the best. The Debtors estimate that the exercise by Pindo Deli of an option to purchase their limited partnership interests in Halsey CL02 Limited Partnership will result in an adjustment to the Purchase Price of approximately US$5,200,000. The Debtors will conduct an auction of their right, title and interest in the Pulp Business Assets, including certain executory contracts and unexpired leases, at 10:00 a.m. (prevailing Eastern time), on Feb. 5, 2008, at the New York offices of Shearman & Sterling LLP. No provision in the APA Approval Order will be deemed to constitute the consent of the Debtors' secured lenders, or the Official Committee of Unsecured Creditors, to any bid, the Hon. Christopher S. Sontchi clarifies. The Court likewise approved the amendments to the APA, which reflects certain modification on the requirements for "qualified bids". The modifications include the Auctions Overbid Protections, and the requirement that Qualified Bidders submit marked versions of the Asset Purchase Agreement with their bids. A full-text copy of Judge Sontchi's Pulp Business Amended Bid Procedures Order is available for free at: http://researcharchives.com/t/s?2765 Monitor's Comments PricewaterhouseCoopers Inc., as monitor of the proceedings commenced by Pope & Talbot Ltd. and its subsidiaries under the Companies' Creditors Arrangement Act, reports that the Canadian Debtors are also seeking the British Columbia Supreme Court's approval of Pindo Deli's offer as the stalking horse bid, as well as amendments to the Pulp Business bidding procedures. The Monitor considers the amendments to the bidding procedures as minor administrative modifications. The Monitor discloses that the Purchase Price for the Debtors' Pulp Business includes US$39,000,000 for non-finished goods inventory, subject to adjustments based on the inventory at the date of closing. Upon analysis, the Debtors and their financial advisor, Rothschild Inc., estimate the net proceeds from a combination of the transaction completion and the liquidation of the remaining assets to total US$205,000,000. Assumed liabilities for US$15,000,000 and potential realizations from the sale of certain refundable tax credits for roughly US$5,000,000, are estimated to increase the overall transaction value to US$225,000,000. The Pindo Deli APA requires approvals: (1) from the U.S. Bankruptcy and Canadian Courts; (2) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the Competition Act; (3) under the Investment Canada Act; (4) from federal, provincial and state governments; and (5) for the transfer of permits and licenses. While the Court-approved process provides for a closing of Feb. 15, 2008, the Debtors believe that a closing in mid March 2008 is more realistic. The Monitor acknowledges that the Break-up Fee is higher than is customarily provided for in stalking horse situations. Pindo Deli, however, has not additionally requested a reimbursement of due diligence costs. "The due diligence requirements for a pulp mill can be substantial compared to other type of asset," the Monitor relates. Debtors Seek Approval of Pindo Deli Transaction In a separate request filed on Jan. 23, 2008, the Debtors asked Judge Sontchi to approve: -- the sale of substantially all of their Pulp Business Assets to Pindo Deli for US$105,290,000, subject to certain adjustments; and -- the assumption and assignment of various executory contracts and unexpired leases. Pursuant to the Pulp Procedures Order, the Debtors served a notice on certain non-debtor counterparties of (i) their intent to assume and assign certain contracts to Pindo Deli or the highest and best bidder at the Auction, (ii) their of the Cure Cost with respect to each Assigned Contract, (iii) procedures governing the filing of objections, if any, to the proposed Cure Costs; and (iv) procedures governing resolution of disputes, if any, regarding Cure Costs. The Debtors intend to cure any monetary defaults that exist under any Assigned Contract to Pindo Deli as a condition to the assumption and assignment of an Assigned Contract and to the extent that U.S. law and Canadian law apply to the assumption and assignment of the contracts. Any non-monetary defaults that exist under a non-residential real property lease that is an Assigned Contract will be cured by Pindo Deli, by performance at the time of and after assumption and assignment of the lease. A full-text copy of the the Debtors' Pulp Business APA is available for free at: http://researcharchives.com/t/s?2766 A full-text copy of the Debtors' Leases and Cure Costs to be assigned and assumed may be accessed at no charge at: http://researcharchives.com/t/s?2767 Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, asserts that time is of the essence with respect to the approval of the sale of the Debtors' Pulp Business. She notes that under the DIP Final Order, the Debtors are required to conduct the auction for the Pulp Business Assets by Feb. 5, 2008; obtain an order approving the sale of the Pulp Business Assets by February 12; and consummate no later than February 15 one or more sales of the Pulp Business Assets. Moreover, Ms. Jones tells Judge Sontchi that the Pindo Deli APA contains numerous schedules and exhibits, which the Debtors have determined to be confidential in nature. Thus, the Debtors seek the Court's authority to file under seal certain exhibits that relate to: -- Key Employees, -- Unqualified Retirement Benefit Liabilities, -- Customers and Suppliers, -- Labor Matters, -- Conduct of Business Prior to the Closing, -- Salaried Employees, -- Key Contracts, and -- Fiber Presentation. In a statement released by the Debtors with respect to the sale of their Pulp Business Assets, the Debtors discloses that Pindo Deli is an affiliate within the Sinar Mas Group. "We are delighted with this development, as this is an important milestone in maximizing value for our stakeholders." said Harold Stanton, Pope & Talbot president and chief executive officer. "The past 6 months have been very trying on our folks and it is exciting that they will have the opportunity to join a world class pulp and paper producer like Sinar Mas Group." Sinar Mas Group is a global enterprise with significant interests in pulp and paper in Indonesia, China and elsewhere. Sinar Mas is the largest producer of pulp and paper in Asia and is one of the top five in the world. A spokesperson for Sinar Mas Group stated that "Sinar Mas is pleased to have entered into this agreement since it represents an important step in our global strategy for pulp and paper. We look forward to working closely with management, labor unions and employees to ensure that the pulp business of Pope & Talbot is stabilized, strengthened and enhanced through the obvious synergies and growth potential presented by our existing pulp and paper business." As reported in the Troubled Company Reporter on Jan. 3, 2008, the Canadian Court approved the Debtors' proposed bidding procedures for their pulp business assets, and authorized the Debtors to schedule an auction, if necessary. As reported in the Troubled Company Reporter on Dec. 14, 2007, Judge Sontchi had earlier approved in all respects the Debtors' bidding and sale procedures with respect to the sale of their pulp business assets, including: (1) the submission, consideration, qualification and acceptance of Qualified Overbids submitted to the Debtors; (2) the Auction; and (3) the identification and determination of the Successful Bid and the Back-Up Bid. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the U.S. and Canada. Markets for the company's products include the U.S., Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expires on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Shearman & Sterling LLP is the Debtor's bankruptcy counsel, while Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. represents the Debtors as bankruptcy co-counsel. The Official Committee of Unsecured Creditors selected Fried, Frank, Harris, Shriver & Jacobson LLP as its bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Pwc Recommends Extension of Stay Period ------------------------------------------------------- PricewaterhouseCoopers Inc., the Court-appointed Monitor in Pope & Talbot Inc. and its debtor-affiliates' CCAA proceedings, recommends to the British Columbia Supreme Court that the Canadian Debtors' request for an extension of the Stay Period to Feb. 15, 2008, be granted. On Dec. 3, 2007, the Canadian Court ruled that until and including Jan. 16, 2008, no proceeding or enforcement process in any court or tribunal will be commenced or continued against or in respect of the Debtors, the Partnerships or PricewaterhouseCoopers Inc., or affecting the Debtors' business or property except with the written consent of the Debtors, the Partnerships and the Monitor, or with leave of the CCAA Court. The Monitor relates that the Debtors continue to work closely with their DIP Lenders with respect to certain Material Adverse Deviations, and have not exceeded their anticipated borrowing requirements. According to the Monitor, the DIP Loan Agreement currently expires on Feb. 15, 2008, and the cash flows previously filed with the Court extend to the end of February 2008. The Debtors, however, assert that they need additional time to proceed with the realization of assets and to negotiate an extension of the DIP Loan Agreement. "An extension of the Stay Period is needed to provide the stability required during that time," the Monitor states. The Monitor believes that, based on the information currently available, creditors would not be materially prejudiced by an extension of the Stay Period to Feb. 15, 2008. "The Applicants have acted and are acting in good faith and with due diligence and that circumstances exist that make an extension of the Stay Period appropriate," the Monitor maintains. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the U.S. and Canada. Markets for the company's products include the U.S., Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expires on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Shearman & Sterling LLP is the Debtor's bankruptcy counsel, while Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. represents the Debtors as bankruptcy co-counsel. The Official Committee of Unsecured Creditors selected Fried, Frank, Harris, Shriver & Jacobson LLP as its bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). QUEBECOR WORLD: Bankruptcy Won't Affect Quebecor Inc. and Units --------------------------------------------------------------- Quebecor Inc., Quebecor Media Inc. and its subsidiaries are not affected in any way by the decision of Quebecor World to seek court protection from creditors under the Companies' Creditors Arrangement Act. Quebecor Inc. said that Quebecor World is an independent company, distinct from the two other entities, and its current situation will have no effect on the normal, continuing operations of Quebecor Inc. and Quebecor Media Inc. "In recent weeks, Quebecor Inc., the principal shareholder of Quebecor World, actively tried to find a solution that would have avoided the CCAA action. A major partner, Brookfield, had been identified and a serious offer was made to the bank creditors of Quebecor World. The banks rejected the conditions of this offer and Quebecor Inc. decided that it would not be in the interest of its shareholders to pursue further offers that could have increased unreasonably the risks it might assume," said Pierre Karl PEladeau, President and Chief Executive Officer of Quebecor Inc. "Quebecor and Quebecor Media are both in excellent financial health and the outlooks for the future of the businesses are excellent." Quebecor Inc. formally advised Quebecor World a week ago that it must remove "Quebecor" from its corporate name. This measure is intended to eliminate any confusion in the public. Quebecor Inc. Severing Ties with QWorld According to Seeking Alpha, UBS analyst Jeffrey Fan informed clients that Quebecor World's decision to seek bankruptcy protection in Canada and the U.S., and the recent request for removal of "Quebecor" from Quebecor World's corporate name reflect Quebecor Inc.'s decision to surrender control of Quebecor World. He added that the likelihood of Quebecor providing further funding to Quebecor World has been significantly reduced. Quebecor Inc., together with Tricap Partners, previously offered a US$400,000,000 Rescue Financing Proposal to Quebecor World on January 11, 2008. The proposal, however, was rejected by Quebecor World's secured lenders. Quebecor World and its affiliates have filed for creditor protection before the Quebec Superior Court of Justice (Commercial Division) and U.S. Bankruptcy Court for the Southern District of New York. The company has presented a proposed US$1,000,000,000 DIP financing agreement with Credit Suisse. About Quebecor Inc. Quebecor Inc. (TSX: QBR.A, QBR.B) is a communications company with operations in North America, Europe, Latin America and Asia. It has two operating subsidiaries, Quebecor World Inc. and Quebecor Media Inc. Quebecor World is one of the largest commercial print media services companies in the world. Quebecor Media owns operating companies in numerous media related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's largest national chain of tabloids and community newspapers; TVA Group Inc., operator of the largest French language over the air television network in Quebec, a number of specialty channels, and the English language over the air station Sun TV; Canoe Inc., operator of a network of English and French language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., the largest chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron Ltd., a chain of video and video game rental and retail stores. Quebecor Inc. has operations in 18 countries. 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: Taps Richard Kibbe as Conflicts Counsel ------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for authority to employ Richard Kibbe & Orbe LLP as their conflicts counsel, nunc pro tunc to Jan. 21, 2008. Jeremy Roberts, Senior Vice-President Corporate Finance and Treasurer of Quebecor World (USA) Inc., states that aside from hiring Arnold & Porter LLP as bankruptcy counsel, the Debtors seek to employ Richard Kibbe & Orbe as counsel with respect to matters which are not appropriately handled by A&P because of potential conflicts of interest or alternatively, matters which the Debtors believe are more efficient for RK&O to handle. "The Debtors believe that rather than resulting in any extra expense to the Debtors' estates, the coordination of efforts between A&P and RK&O will greatly add to the effective administration in these chapter 11 cases" Mr. Roberts avers. Mr. Roberts adds that the members and associates of the firm have considerable experience in bankruptcy cases and have acted in a professional capacity as counsel in numerous chapter 11 cases like Mirant Corporation, Tower Automotive, Inc., Metalforming Technologies Inc., Intrepid U.S.A. Inc., and Galey & Lord Inc. In order for RK&O to act effectively in the Chapter 11 cases, the Debtors propose that the firm be tasked to perform these non-exhaustive functions: (a) take all necessary action to protect and preserve the estates of the Debtors, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estates; (b) prepare on behalf of the Debtors, as debtors-in- possession, all necessary motions, applications, answers, orders, reports and other papers in connection with the administration of the Debtors' estates; (c) negotiate on behalf of the Debtors with their creditors and other parties-in-interest; and (d) perform all other necessary legal services in connection with the prosecution and administration of the Chapter 11 cases. RK&O will be paid on an hourly basis at its customary hourly rates: Partners US$525 to US$775 per hour Associates US$300 to US$475 per hour Paralegals US$190 to US$250 per hour RK&O will further charge the Debtors with expenses incurred in connection to its chapter 11 cases like telephone tolls, mail charges and court filing fees. Mr. Joon Hong, a member RK&E, identified several current and former clients that are parties-in-interest in the Chapter 11 cases -- Ernst & Young, Newpage Corp., Morgan Stanley, Citibank, N.A., and Delloitte & Touche LLP. Mr. Hong, however, assures the Court that with respect to each connection between RK&O and its relevant clients, RK&O will not represent any of the relevant entities and will not hold an interest that is adverse to the Debtors' estates. Mr. Hong asserts that the firm does not hold any interest adverse to the Debtors, their estates or their creditors. 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. Donlin, Recano & Company, Inc. serves as the Debtors claims, notice and balloting agent. 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 Donlin Recano as Claims and Noticing Agent ---------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for authority to employ Donlin, Recano & Company, Inc. as their claims, notice and balloting agent. Jeremy Roberts, Senior Vice-President Corporate Finance and Treasurer of Quebecor World (USA) Inc., states that Bankruptcy Clerk is not equipped to distribute notices, process all of the proofs of claim filed, and assist in the balloting process in the Debtors' Chapter 11 cases. Thus, an independent third party is needed to act on these related administrative tasks, he says. Louis Recano, a principal of Donlin, Recano & Company, Inc., relates that the company has served more than 200 clients for Chapter 11 cases globally and their services include noticing solutions, claims administration, solicitation planning and balloting, and plan distribution and tracking. The Debtors wish to engage with Donlin Recano under terms and conditions provided in a Standard Claims Administration and Noticing Agreement. As set forth in the Agreement, Donlin Recano will: (a) notify all potential creditors of the filing of the Debtors' bankruptcy petitions and of the setting of the first meeting of creditors; (b) maintain an official copy of the Debtors' schedules of assets and liabilities and statement of financial affairs; (c) notify all potential creditors of the existence and amount of their respective claims; (d) furnish a notice of the last day for the filing of proofs of claim and a form for the filing of a proof of claim; (e) file with the Clerk an affidavit or certificate of service which includes a copy of the notice, a list of persons to whom it was mailed, and the date the notice was mailed; (f) docket all claims received, maintain the official claims registers for each of the Debtors on behalf of the Clerk, and provide the Clerk with certified duplicate unofficial Claims Registers on a monthly basis, unless otherwise directed; (g) specify, in the applicable Claims Register, the following information for each claim docketed: (i) the claim number assigned, (ii) the date received, (iii) the name and address of the claimant and agent, if applicable, who filed the claim, (iv) the filed amount of the claim, if liquidated, and (v) the classification(s) of the claim; (h) relocate, by messenger, all of the actual proofs of claim filed to Donlin, Recano, not less than weekly; (i) record all transfers of claims and provide any notices of the transfers; (j) make changes in the Claims Register; (k) upon completion of the docketing process for all claims received to date by the Clerk's office, turn over to the Clerk copies of the Claims Registers for the Clerk's review; (1) maintain the Claims Register for public examination without charge during regular business hours; (m) maintain the official mailing list for each Debtor of all entities that have filed a proof of claim; (n) assist with, among other things, solicitation, calculation, and tabulation of votes and distribution, as required in furtherance of confirmation of the Plan; (0) provide and maintain a Web site where parties can view claims filed, the status of claims, and pleadings or other documents filed with the Court by the Debtors; (p) 30 days prior to the close of the cases, an order dismissing Donlin Recano would be submitted terminating its services upon completion of its duties and responsibilities; and (q) at the close of the case, box and transport all original documents in proper format, as provided by the Clerk's office, to the Federal Records Center. The Debtors may further utilize other services offered by Donlin Recano, including assisting the Debtors in preparing the master creditor lists, gathering data related to the Debtors' schedules and maintenance of a post office box for receiving claims. The Debtors have paid Donlin Recano a retainer of US$50,000. The firm will charge the Debtors at these rates: Senior Bankruptcy Consultant US$205-250 per hour Case Manager US$180-200 per hour Technology/Programming Consultant US$115-195 per hour Senior Analyst US$115-175 per hour Jr. Analyst US$70-110 per hour Clerical US$40-65 per hour The firm will also charge the Debtors for other services at their regular rates, including laser printing at US$0.12 per page, Web hosting at US$250 per month, among other things. Mr. Recano asserts that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code and holds no interest adverse to the Debtors or their estates for the matters for which the firm is to be employed. The firm can be reached at: Donlin Recano & Company, Inc. 419 Park Avenue South New York, NY 10016 Tel: (212) 481-1411 Fax: (212) 481-1416 http://www.donlinrecano.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) TENNECO INC: Incurs US$72 Million Net Loss in Fourth Quarter ------------------------------------------------------------ Tenneco has reported a fourth quarter net loss of US$72 million, or US$1.57 per diluted share, versus net income of US$15 million, or 31-cents per diluted share in fourth quarter 2006. The loss was due to previously announced charges taken in the fourth quarter for actions that advance the company's financial strategy. These include costs for refinancing a portion of the company's debt, which will reduce interest expense, and non-cash tax charges for realigning the European ownership structure, which more effectively aligns the company's American and European assets and revenues with liabilities and expenses. This action will reduce cash taxes and accelerates the use of United States net operating losses. Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) -- http://www.tenneco.com/-- manufactures automotive ride and emissions control products and systems for both the original equipment market and aftermarket. Brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, with its European operations headquartered in Brussels, Belgium. The company has approximately 19,000 employees worldwide. * * * As reported in the Troubled Company Reporter-Europe on Nov. 6, 2007, Fitch Ratings assigned a rating of 'BB-' to Tenneco Inc.'s new senior unsecured notes due 2015. The new notes replace a portion of the company's existing US$475 million in 10.25% senior secured second-lien notes for which the company is tendering. Fitch said the rating outlook is positive. ============= D E N M A R K ============= BLOCKBUSTER INC: Movie Gallery Acquisition Unlikely, COO Says ------------------------------------------------------------- Acquiring Movie Gallery, Inc., is not part of Blockbuster, Inc.'s "reshaping" plans for 2008, according to Blockbuster chairman and chief operating officer James Keyes, reports The Wall Street Journal. Mr. Keyes said he wants to stay away from the financially troubled Movie Gallery and focus more on building Blockbuster's business. "We are actually hoping for the ultimate resolution of Movie Gallery's fate, that they will somehow find a way to survive, because, frankly, good competition is healthy for an industry," Mr. Keyes said in an interview, reports WSJ. "Blockbuster's challenge is to fix its core business before considering any sort of aggressive asset or acquisition," Mr. Keyes said. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores that rent and sell DVDs, videocassettes and video games. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of US$891,993,000 and total liabilities of US$1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have asked the Court to extend their plan-filing exclusive periods to June 13, 2008. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- is a leading global provider of in-home movie and game entertainment, with over 7,800 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Thailand, Australia, among others. (Movie Gallery Bankruptcy News Issue No. 15; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Europe on Dec. 28, 2007, Fitch Ratings affirmed Blockbuster Inc.'s long-term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. The rating outlook is stable. The company had approximately US$991 million of debt outstanding as of Sept. 30, 2007. =========== F R A N C E =========== DELPHI CORP: To Sell Steering Business to Platinum Equity --------------------------------------------------------- Delphi Corporation said it will seek approval from the U.S. Bankruptcy Court for the Southern of New York to sell its steering and halfshaft businesses to an affiliate of Platinum Equity at a sale hearing on Feb. 21, 2008. Delphi said, in a news release, plans to conclude the sale as soon as all regulatory approvals have been received. Divestiture solutions firm Platinum Equity, LLC -- http://www.platinumequity.com/-- through affiliate Steering Solutions Corp., has offered to purchase Delphi's global steering and halfshaft businesses for US$447,000,000. Delphi previously disclosed in January 2007 that it was working on finalizing a sale and purchase agreement with Platinum Equity regarding the sale of the businesses. Pursuant to a Master Sale And Purchase Agreement dated December 10, 2007, have agreed to sell the global steering and halfshaft businesses to Platinum Equity, but subject to competitive bidding at an auction scheduled for January 28, 2008. Delphi said that Platinum Equity was the sole bidder for the subject assets. Steering Holding, LLC, previously opposed to Platinum Equity's designation as stalking horse bidder on grounds that (i) the proposed break up fee and expense reimbursements, which could reach up to US$8,000,000, is not justified; and (ii) it could provide a better offer for Delphi's steering and halfshaft businesses. The Court, however, denied Steering Holding's objection, but the party was entitled to submit a competing bid by January 18, 2008, under the Court-approved protocol. Under its steering and halfshaft businesses, Delphi designs and manufactures steering and driveline systems and components for automotive vehicle manufacturers and adjacent markets. The businesses operate 22 manufacturing plants in 15 locations worldwide, five regional systems engineering centers, and 11 local customer support enters. In addition, the businesses employ approximately 9,700 individuals globally, about 5,625 of whom work in the U.S. The businesses' customer base includes major domestic, transnational, and international original equipment manufacturers, including General Motors Corp., Fiat, Ford, DaimlerChrysler, and Chevy. In 2006, the businesses generated US$2,530,000,000 in revenues. 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 convened hearings to consider confirmation of the Plan beginning Jan. 17, 2008. The Court entered an order confirming the Plan on January 25, 2008. (Delphi Bankruptcy News, Issue No. 109; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DELPHI CORP: Bankruptcy Court Confirms Amended Chapter 11 Plan -------------------------------------------------------------- The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York entered an order on Jan. 25, 2008, confirming the First Amended Joint Plan of Reorganization, as modified, of Delphi Corporation and certain of its affiliates. The Court ruled that Delphi had met all of the statutory requirements to confirm its Plan. "Today's confirmation represents one of the most significant events of a very complex business reorganization to be completed during a challenging time in the automotive industry," said Robert S. "Steve" Miller, Delphi's executive chairman. "The industry-changing accomplishments contemplated by this Plan could not have been achieved without the hard work and continued focus of our employees, the support of our customers, suppliers and other stakeholders, and the dedication of our professionals." Delphi plans to emerge during the current calendar quarter following the syndication and closing of approximately US$6.1 billon of exit financing facilities and satisfaction of other conditions to the Effective Date of the Plan including completing the rights offerings provided for under the Plan, closing of the Investment Agreement with the Plan Investors and consummation of the Global Settlement Agreement with General Motors Corp. "Delphi has substantially achieved all of the objectives that we identified in our 2006 transformation plan," said Rodney O'Neal, Delphi's CEO and President. "Since the chapter 11 cases were filed in late 2005, we have negotiated amended collective bargaining agreements with our U.S. unions resulting in more competitive U.S. operations; entered into comprehensive settlement and restructuring agreements with General Motors; made substantial progress in divesting or winding down facilities and business lines that are not core to Delphi's future plans; implemented initiatives in our organizational cost structure to achieve important cost savings and rationalize our salaried workforce to competitive levels; and obtained pension funding waivers from the Internal Revenue Service which will permit Delphi to fund its defined benefit pension plans following emergence from chapter 11." Delphi earlier announced broad-based stakeholder support for the Plan. Eighty-one% of all voting creditors aggregated across classes voted to accept the Plan. Of the total amount voted by all general unsecured creditor classes, 78% voted to accept the Plan. More than 70% of the ballots cast and 70% of the total dollar amount voted by Delphi's senior note claims, TOPrS claims, and all other claims (including trade claims) segments each voted separately to accept the Plan. One hundred% of the ballots cast in the GM and MDL classes voted to accept the Plan. Of the approximately 217,000,000 shares voted by shareholders, 78% voted to accept the Plan. While one class each in two lower tier Delphi subsidiaries did not accept the Plan, the Bankruptcy Court confirmed the Plan over the vote of the two subsidiary dissenting classes holding that Delphi was entitled to confirm and implement the Plan for several reasons including based on "new value" contributed by Delphi to the subsidiaries. Details of the Plan can be found by accessing the Delphi Legal Information Web site at http://www.delphidocket.com/ 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 convened hearings to consider confirmation of the Plan beginning Jan. 17, 2008. (Delphi Bankruptcy News, Issue No. 109; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GOODYEAR TIRE: European Unit Eyes Production Cuts in France ----------------------------------------------------------- The Goodyear Tire & Rubber Company disclosed that its European Union business unit is planning to reduce tire production at its two factories in Amiens, France, because their costs are not competitive. The action will result in a reduction of up to 500 employees at the plants and follows a rejection in October 2007 by employees of company plans to modernize and renovate the plants. "We have communicated extensively with the trade unions, explaining the need for major changes," Serge Lussier, Goodyear's Europe, Middle East and Africa vice president of manufacturing, said. "These changes would increase our competitiveness. Unfortunately, they have rejected the plan to improve competitiveness. Therefore, we have no choice but to reduce our costs as the plants are currently uncompetitive." Goodyear said production of some tires impacted by the move would be transferred to other, lower-cost factories in Europe and elsewhere. Some products will be eliminated. Mr. Lussier said the plan presented in October 2007, requiring an investment of approximately US$75 million in the two plants, would allow them to become more competitive, particularly through the supply of high performance tires. This would require a new work pattern, involving four rotating crews working eight-hour shifts, including weekends. The plants would run for 350 days a year, maximizing their usage. Goodyear employs about 3,800 people in France, of which 2,700 are in the Amiens plants. About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear's operations are located in Argentina, Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica, Peru, Russia, among others. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. The ratings still apply to date. HEXCEL CORP: Net Income Down to US$13 Million in Fourth Quarter --------------------------------------------------------------- Hexcel Corporation reported results for the fourth quarter and full year of 2007. Net sales from continuing operations during the quarter were US$317.6 million, 20.8% higher than the US$262.9 million reported for the fourth quarter of 2006. Related operating income for the fourth quarter was US$20.8 million, compared to US$17.5 million for the same quarter last year. Included within the 2007 operating income figure is US$9.4 million of pension settlement expense associated with the termination of Hexcel's U.S. defined benefit pension plan and US$3.2 million of impairment costs on certain purchased technology and fixed assets, incurred as part of its portfolio realignment. Net income from continuing operations for the fourth quarter of 2007 was US$13.0 million compared to US$17.7 million in 2006. Net income from continuing operations for the fourth quarter of 2007 was US$0.20 per share excluding one-time items of the termination of Hexcel's U.S. defined pension plan, the impairment costs and favorable tax adjustments. Net income for the fourth quarter of 2006 included the benefit from an after-tax gain of US$9.6 million on the sale of a joint venture interest. Adjusted net income in the fourth quarter of 2006 was US$6.9 million. Chief Executive Officer David E. Berges commented, "This was a very good closing quarter to a successful year of significant transition for Hexcel. Fourth quarter sales were at record levels, led by the extremely strong growth in revenues from aerospace (both commercial and defense) and assisted by strong sales in the wind energy markets. Our diluted earnings per share for the quarter were a solid US$0.20 excluding the one- time items, as compared to US$0.08 last year." "For the year, we not only met all of our financial targets, we accomplished or made great progress on all of our strategic goals. Our portfolio realignment is now complete and has resulted in a more focused Company with better long-term growth prospects. Over 80% of our markets and submarkets delivered double digit growth this year and have the potential to continue doing so for years to come. Our restructuring programs have resulted in a single, lean entity, down from three business units in 2005. Our capacity expansion programs are all on track, new product introductions are being embraced and we are well positioned for the A350XWB." "Despite the distractions presented by the restructuring and business sale transactions, we are pleased with our financial progress, particularly in the second half. Adjusted operating income margin was up for the fourth year in a row, at 11.5% of sales, 40 basis points better than 2006, despite 30 basis points of compression from exchange rates. We have also achieved our longstanding goal of reducing our net debt to EBITDA leverage ratio below two times." "As described in our 2008 Outlook, published in December 2007, we expect the good growth trends to continue through at least the next three years, thanks to sustained increases in wind energy markets and in aircraft production, plus incremental new programs from customers such as at Airbus, Boeing and USEC. We expect continued improvement of our financial performance. While the impact of the recently announced delays of the 787 have not yet been determined, we are targeting to offset any negative effects and do not expect it to cause a change in our 2008 earnings outlook of US$0.90 to US$0.95 per diluted share." About Hexcel Corp. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * In April 2007, Moody's Investors Service has raised the ratings of Hexcel Corporation, Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. Moody's said the ratings outlook is stable. IMMI BAROSTAR: Besancon Court Orders Administration --------------------------------------------------- The Commercial Court of Besancon decided to place IMMI Barostar SAS under administration, the Financial Times Ltd. reports citing Les Echos. According to the report, the court gave the company six months to work on a rescue plan. IMMI blamed slow market performance and a weak dollar for its financial woes. FT said that Altitude, Barostar, and Schatz, IMMI's subsidiaries were financially sound. Headquartered in Morteau, France, IMMI Barostar SAS manufactures barometer. It has 40 workers. PRIDE INT'L: Awards Ultra-Deepwater Drillship Deal to Samsung ------------------------------------------------------------- Pride International said in a statement that it has awarded Samsung Heavy Industries a contract to construct an ultra- deepwater drillship for Brazilian state-run oil firm Petroleo Brasileiro SA. Business News Americas relates that the vessel would be delivered from the shipyard in the first quarter 2011, after construction, commissioning and system integrated testing. According to BNamericas that Petroleo Brasileiro will use the unit. The firm has the option to sign a firm contract for up to seven years. Pride International told BNamericas that it will get a fixed daily rate and performance bonus of up to 17% of the daily rate from Petroleo Brasiliero. Contract revenues could range from US$916 million to US$1.24 billion. The rig will initially be equipped for drilling in water depths of up to 10,000 feet. The estimated construction cost of the rig, which includes commissioning and system integrated testing but excludes capitalized interest, is US$720 million, BNamericas states, citing Pride International. About Samsung Heavy Industries Headquartered in South Korea, Samsung Heavy Industries Company Limited's principal activity is the manufacturing of ships, conveyance machines, chemical equipment and construction equipment. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, and distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. About Pride International 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 of Nov. 22, 2007, Pride International Inc. carries BB+ corporate credit and unsecured debt ratings to from Standard & Poor's Ratings Service. S&P said the outlook is stable. ============= G E R M A N Y ============= AMCO TONTRAGER: Claims Registration Ends Feb. 19 ------------------------------------------------ Creditors of AmCo Tontrager Vertriebs-GmbH & Co. KG have until Feb. 19, 2008, to register their claims with court-appointed insolvency manager Michael Bremen. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 341 Third Floor Muehlenstrasse 34 40213 Duesseldorf 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: Michael Bremen Sternstr. 58 40479 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against AmCo Tontrager Vertriebs-GmbH & Co. KG on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AmCo Tontrager Vertriebs-GmbH & Co. KG Loh 38 40668 Meerbusch Germany Attn: Marcel Neidl, Manager Oberkasseler Strasse 36 g 40545 Duesseldorf Germany BAUCENTER ANDREAS: Claims Registration Period Ends Feb. 18 ---------------------------------------------------------- Creditors of baucenter Andreas GmbH & Co. KG have until Feb. 18, 2008, to register their claims with court-appointed insolvency manager Bruno M. Kuebler. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.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 Moenchengladbach Meeting Hall A 14 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach 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. Bruno M. Kuebler Berger Dorfstrasse 35 41189 Moenchengladbach Germany Tel: 02166/989020 Fax: 02166/9890229 The District Court of Moenchengladbach opened bankruptcy proceedings against baucenter Andreas GmbH & Co. KG on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: baucenter Andreas GmbH & Co. KG Odenkirchener Strasse 249 41236 Moenchengladbach Germany DENTAL EXCELLENCE: Claims Registration Ends Feb. 19 --------------------------------------------------- Creditors of Dental Excellence GmbH have until Feb. 19, 2008, to register their claims with court-appointed insolvency manager Markus Froehlich. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on March 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kempten Hall 144/I. Residenzplatz 4-6 87435 Kempten 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 Froehlich Ehlersstr. 11 88046 Friedrichshafen Germany Tel: (07541) 7008-70 Fax: (07541) 7008-78 The District Court of Kempten opened bankruptcy proceedings against Dental Excellence GmbH on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dental Excellence GmbH Europaplatz 1 88131 Lindau Germany ELEKTRO MELZER: Claims Registration Period Ends Feb. 6 ------------------------------------------------------ Creditors of Elektro Melzer GmbH have until Feb. 6, 2008, to register their claims with court-appointed insolvency manager Sandra Schiffmann. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on March 5, 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 Magdeburg Hall 13 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: Sandra Schiffmann Hegelstr. 39 39104 Magdeburg &n