T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, February 8, 2008, Vol. 9, No. 28 Headlines A U S T R I A ABLEITINGER LLC: Claims Registration Period Ends February 25 BRUNNER RUDOLF: Claims Registration Period Ends February 18 COLOURS & BEAUTY: Claims Registration Period Ends March 19 ING. CHRISTIAN: Claims Registration Period Ends February 18 IPP FINANZMANAGEMENT: Claims Registration Period Ends March 19 SCHOENGRUNDNER LLC: Claims Registration Period Ends February 20 TRANSPORTE-MANINGER: Claims Registration Period Ends February 29 WELLE-BAU: Claims Registration Period Ends March 13 B E L G I U M AVNET INC: Operating Unit Signs Global Distribution Deal w/ Alps SOLUTIA INC: Files Suit to Enforce Exit Financing Commitment C Z E C H R E P U B L I C CHEMOPROJECKT: Inks Pact with Setuza; Cancels Bankruptcy Request F R A N C E GENERAL CABLE: Picks Brian Robinson as EVP, CFO & Treasurer SPANSION INC: Posts US$49.5 Mil. Net Loss in 2007 Fourth Quarter TEMBEC INC: Furnishes Updates on Proposed Recapitalization TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend G E R M A N Y ATU AUTO-TEILE-UNGER: S&P Cuts Rating to B-; Retains Watch ANNETT REINELT: Claims Registration Ends March 4 BAAN THAI: Claims Registration Ends March 4 BARFIN GMBH: Claims Registration Period Ends March 3 BAUER-VERWALTUNG: Claims Registration Period Ends March 3 BAUGESCHAFT PETERSON: Claims Registration Period Ends March 3 BBT FERRO: Claims Registration Ends March 4 BUV BAUGESELLSCHAFT: Claims Registration Ends March 4 CITY COLOR: Claims Registration Period Ends March 3 CSS SANIERUNGSTECHNIK: Claims Registration Period Ends March 3 GEORGIUS BAD: Claims Registration Period Ends March 3 JACKEL MASSIVBAU: Claims Registration Period Ends March 3 JEREBITZ GMBH: Creditors' Meeting Slated for March 11 MIS LOGISTICS: Claims Registration Ends March 4 OPTIK SOMMER: Claims Registration Period Ends March 3 ROYAL FITNESS: Claims Registration Period Ends February 21 G R E E C E WIND HELLAS: Fitch Removes Negative Watch and Holds B Rating I R E L A N D CHATTEM INC: Earns US$59.7 Million in Fiscal Year Ended Nov. 30 I T A L Y ALITALIA SPA: Chairman Warns of Possible Bankruptcy ALITALIA SPA: Lazio Court to Hear AirOne Appeal February 20 ALITALIA SPA: Presents Summer Network Schedule for 2008 FIAT SPA: Keeps Position on Jaguar/Land Rover Acquisition FIAT SPA: Unit Signs PoU to Boost & Develop Verrone Plant PARMALAT SPA: Sees Up to EUR550 Million Net Profit for 2007 K A Z A K H S T A N BUMERANG-SK LLP: Proof of Claim Deadline Slated for March 7 DINARA-BUSINESS LLP: Creditors Must File Claims by March 7 HLEBOBULOCHNY COMBINATE: Claims Filing Period Ends March 7 KAZKOMMERTSBANK JSC: Tajikistan Subsidiary Gets Banking License KSM-SERVICE XXI: Creditors' Claims Due on March 7 RETAIL TRADE: Claims Registration Ends March 7 RIS LLP: Creditors Must File Claims by March 7 ROHDE & LIESENFELD: Claims Filing Period Ends March 7 SOTSIALNYE INNOVATSIONNYE: Creditors' Claims Due on March 7 URAL MEH: Claims Registration Ends March 7 K Y R G Y Z S T A N DOOLET CONSULTING: Creditors Must File Claims by February 22 JS COMMERCIAL: Claims Filing Period Ends February 22 N E T H E R L A N D S BENCHMARK ELECTRONICS: Earns US$21 Mln in Fourth Quarter 2007 R U S S I A ELVIS-A CJSC: Creditors Must File Claims by February 28 NOVATEK OAO: Natural Gas Production Down in 2007 PHOENIX CJSC: Asset Sale Slated for February 25 RUSSIAN FACTORING: Fitch Puts RUR500 Million Facility at BB SO VYAZOVSKOE: Creditors Must File Claims by February 28 VOLZHSKIY FACTORY: Creditors Must File Claims by March 28 VYATSKAYA NEAR: Creditors Must File Claims by March 28 S P A I N BAUSCH & LOMB: Raymond Elliott & Richard Wallman Joins Board * Moody's Says Spanish RMBS Shows Delinquencies Hike in Q3 2007 U K R A I N E FORTUNA-97 LLC: Proofs of Claim Filing Deadline Set February 17 FORUM-COMPLEX LLC: Creditors Must File Claims by February 16 IMEKS CMBH: Creditors Must File Claims by February 16 KLONDIKE-SERVICE LLC: Creditors Must File Claims by February 17 LISSONTRADE LLC: Creditors Must File Claims by February 16 NIVA LLC: Creditors Must File Claims by February 16 SAMARA FOOTBALL: Creditors Must File Claims by February 16 SELECTION CENTER: Proofs of Claim Filing Deadline Set Feb. 17 SERVICE LLC: Creditors Must File Claims by February 17 VYBOR-UKRAINE LLC: Creditors Must File Claims by February 17 U N I T E D K I N G D O M BMP REALISATIONS: Brings In Liquidators from Deloitte & Touche CITELYNX TRAVEL: Taps Liquidators from BDO Stoy Hayward DENNIS RUABON TILES: Jumps Into Receivership With Lousy Sales DOWNS BUTCHERS: Calls In Liquidators from Tenon Recovery ELECTRONIC DATA: To Pay US$0.05 Per Share Dividend on March 10 EYESAGLOW LTD: Appoints Liquidators from KPMG FKI PLC: Melrose Confirms Making Preliminary Approach FORD MOTOR: Toyota & Ford Unaffected by Plastech's Bankruptcy GRAPHITE MORTGAGES: Fitch Affirms Ratings on 20 Tranches HABITUS SURVEYORS: Put into Liquidation by B&C Associates HOLYWELL MOTORS: Names Neil Francis Hickling Liquidator INDIGO FUSION: Brings In Administrators from Deloitte & Touche ING RE (UK): Scheme of Arrangement Effective February 1 ING RE (UK): Final Claims Submission Deadline is July 31 ING RE (UK): U.S. Court Recognizes Chapter 15 Petition KEATING GROUP: Appoints Ernst & Young as Administrators KRONOS INC: Paul Lacy to Quit as President LADBROKES PLC: Acquires Eastwood Bookmakers for GBP117.5 Million LANDSCAPE LTD: Joint Liquidators Take Over Operations NORTHERN ROCK: 1,000 Jobs May be Cut Under Virgin's Rescue Bid POLYONE CORP: Earns US$7.1 Million in 2007 Fourth Quarter PWS INTERNATIONAL: Taps Joint Administrators from PwC QUEBECOR WORLD: Printing Union Seeks Talk of Financial Woes QUEBECOR WORLD: BP Canada Wants to End Gas Supply to U.S. Plants QUEBECOR WORLD: Can File Schedules and Statements Until March 5 SAND TECH: Oct. 31 Balance Sheet Upside-Down by CDN$1.1 Million SAND TECHNOLOGY: Has CDN$881,951 Equity Deficit at July 31 SEA CONTAINERS: Inks Pact with Two Pension Schemes Trustees SETTEN AND DURWARD: Appoints Joint Administrators from PwC SEVERN VALLEY: Taps KPMG to Administer Assets SHEPLEY WINDOW: Appoints Deloitte as Joint Administrators WHINSTONE CAPITAL: Fitch Holds Low-B Ratings on Five Classes WISDOM SOLUTIONS: Claims Filing Period Ends March 28 * Moody's Says UK Prime RMBS Shows Stable Performance in Q4 2007 * BOOK REVIEW: How To Measure Managerial Performance ********* ============= A U S T R I A ============= ABLEITINGER LLC: Claims Registration Period Ends February 25 ------------------------------------------------------------ Creditors owed money by LLC Ableitinger (FN 201351f) have until Feb. 25, 2008 to file written proofs of claim to court-appointed estate administrator Heinrich Nagl at: Dr. Heinrich Nagl Pfarrgasse 5 3580 Horn Austria Tel: 02982/2278 Fax: 02982/4479 E-mail: dr.nagl.horn@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 8:30 a.m. on March 12, 2008 for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria Headquartered in Wien, Austria, the Debtor declared bankruptcy on Jan. 17, 2008 (Bankr. Case No. 9 S 3/08a). BRUNNER RUDOLF: Claims Registration Period Ends February 18 ----------------------------------------------------------- Creditors owed money by Private Entrepreneur BRUNNER Rudolf have until Feb. 18, 2008 to file written proofs of claim to court- appointed estate administrator Gerhard Scheidbach at: Dr. Gerhard Scheidbach Drevesstrasse 2 6800 Feldkirch Austria Tel: 05522/78000 Fax: 05522/78000-4 E-mail: office@advocaten.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 28, 2008 for the examination of claims. The meeting of creditors will be held at: The Land Court of Feldkirch Meeting Room 45 First Floor Feldkirch Austria Headquartered in Feldkirch, Austria, the Debtor declared bankruptcy on Jan. 17, 2008 (Bankr. Case No. 14 S 3/08s). COLOURS & BEAUTY: Claims Registration Period Ends March 19 ---------------------------------------------------------- Creditors owed money by LLC Colours & Beauty Handel have until March 19, 2008 to file written proofs of claim to court- appointed estate administrator Hannelore Pitzal at: Dr. Hannelore Pitzal c/o Mag. Katharina Pitzal Paulanergasse 9 1040 Vienna Austria Tel: 587 31 11 Fax: 587 87 50 50 E-mail: office@pitzal-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on April 2, 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 Jan. 17, 2008 (Bankr. Case No. 2 S 5/08k). Katharina Pitzal represents Dr. Pitzal in the bankruptcy proceedings. ING. CHRISTIAN: Claims Registration Period Ends February 18 ----------------------------------------------------------- Creditors owed money by LLC Ing. Christian Schaffer (FN 156277w) have until Feb. 18, 2008 to file written proofs of claim to court-appointed estate administrator Thomas Deschka at: Dr. Thomas Deschka Hauptplat z 11 Atrium Top 16 A 7400 Oberwart Austria Tel: 03352/31543 Fax: 03352/31543-20 E-mail: deschka@lawcenter.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on March 3, 2008 for the examination of claims. The meeting of creditors will be held at: The Land Court of Eisenstadt Hall F Eisenstadt Austria Headquartered in Kleinzicken, Austria, the Debtor declared bankruptcy on Jan. 17, 2008 (Bankr. Case No. 41 S 3/08s). IPP FINANZMANAGEMENT: Claims Registration Period Ends March 19 -------------------------------------------------------------- Creditors owed money by LLC IPP Finanzmanagement & Zukunftsvorsorge-Beratung (FN 218784t) have until March 19, 2008 to file written proofs of claim to court-appointed estate administrator Michael Guenther at: Dr. Michael Guenther c/o Dr. Susanne Fruhstorfer Seilerstatte 17 1010 Vienna Austria Tel: 512 57 76 E-mail: office@fg-lawyers.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on April 2, 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 Jan. 17, 2008 (Bankr. Case No. 2 S 6/08g). Susanne Fruhstorfer represents Dr. Guenther in the bankruptcy proceedings. SCHOENGRUNDNER LLC: Claims Registration Period Ends February 20 --------------------------------------------------------------- Creditors owed money by LLC Schoengrundner (FN 63725p) have until Feb. 20, 2008 to file written proofs of claim to court- appointed estate administrator Claudia Sorgo at: Mag. Claudia Sorgo Gartengasse 19 8200 Gleisdorf Austria Tel: 03112/6644 Fax: 03112/6644-20 E-mail: office@ra-sorgo.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 3:25 p.m. on March 6, 2008 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 230 Hall L Graz Austria Headquartered in Eggersdorf, Austria, the Debtor declared bankruptcy on Jan. 17, 2008 (Bankr. Case No. 25 S 6/08g). TRANSPORTE-MANINGER: Claims Registration Period Ends February 29 ---------------------------------------------------------------- Creditors owed money by LLC Transporte-maninger (FN 154893i) have until Feb. 29, 2008 to file written proofs of claim to court-appointed estate administrator Heimo Hofstatter at: Dr. Heimo Hofstatter OEG Hofstatter & Kohlfuerst Rechtsanwalte Marburgerkai 47 8010 Graz Austria Tel: 0316/815454 Fax: 0316/815454-22 Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on March 6, 2008 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 222 Second Floor Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Jan. 17, 2008 (Bankr. Case No. 26 S 6/08i). WELLE-BAU: Claims Registration Period Ends March 13 --------------------------------------------------- Creditors owed money by LLC Welle-bau (FN 262212g) have until March 13, 2008 to file written proofs of claim to court- appointed estate administrator Stefan Jahns at: Mag. Stefan Jahns Gonzagagasse 15 1010 Vienna Austria Tel: 532 17 11 Fax: 532 17 11 11 E-mail: kanzlei@jahns.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on March 27, 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 Jan. 16, 2008 (Bankr. Case No. 5 S 8/08y). ============= B E L G I U M ============= AVNET INC: Operating Unit Signs Global Distribution Deal w/ Alps ---------------------------------------------------------------- Avnet Inc.'s operating group, Avnet Electronics Marketing, and Alps Electric Co. Ltd., a Japan-based developer and manufacturer of electronic devices and components, have entered into a global distribution agreement. Under the agreement, Avnet will distribute the full line of Alps products, including switches and encoders, sensors, potentiometers, connectors, direct thermal printers, radio frequency and optical devices on a worldwide basis. Alps Electric is guided by a development concept that blends core and proprietary technologies to produce a sophisticated and highly functional line of devices for the broadcasting and telecommunications fields. Alps products enhance human-to- machine interface and enable the comfortable operation of appliances for unsurpassed machine-to-machine interface. "Alps understands and embraces the concept of �art of electronics,� which results in a unique and advanced line of products for seamless designs," said Tom McCartney, senior vice president of IP&E business development worldwide for Avnet Electronics Marketing. "Together, Avnet and Alps will work with customers, from the design stage to production and around the globe, to assure products meet their unique needs in a functional and cost-effective way." "We are delighted to combine the broad global presence of Avnet and the outstanding quality performance of our products," said Yasuo Sasao, general manager strategic sales and marketing operations for Alps Electric. "This combination will create synergy and lead to a great success in marketing the growing range of Alps products across global markets, especially also in adding service values and by creating new customer relationships across all geographies." About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. SOLUTIA INC: Files Suit to Enforce Exit Financing Commitment ------------------------------------------------------------ Solutia Inc. on Wednesday filed a complaint in the United States Bankruptcy Court for the Southern District of New York against the three banks that had executed a firm commitment to fund a $2 billion exit financing package for Solutia, but to date have refused to meet this commitment. These banks are Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. Solutia is seeking a court order requiring the banks to meet their commitment and fund Solutia's exit from bankruptcy. The complaint also asserts that the banks should be stopped from invoking the clause they claim relieves them of their obligation due to their improper conduct and misrepresentations to the company, and further claims that the banks fraudulently induced Solutia to enter into the initial engagement by promising that the financing was firmly committed. Solutia and the banks have agreed that Solutia's claim to require immediate funding of the $2 billion package should be heard by the Court on an expedited basis, with the trial to conclude by the end of February -- prior to the expiration of the banks' commitment. "This is not a 'best efforts' agreement," said Jeffry N. Quinn, chairman, president and CEO of Solutia Inc. "Solutia agreed to pay the banks an enhanced fee in exchange for their firm commitment to fund the full $2 billion exit financing facility -- regardless of the results of the syndication process. We are extremely disappointed by their refusal to meet this commitment and have no choice but to pursue all of our legal remedies." On Oct. 25, 2007, the banks executed a firm commitment to fund a $2 billion exit financing package for Solutia. These substantial, custom credit facilities and arrangements were specifically tailored to facilitate Solutia's prompt emergence from Chapter 11. On Nov. 20, 2007, the bankruptcy court approved the exit financing package. Nine days later, in reliance on the banks' firm lending commitment, the court found the plan of reorganization to be feasible and confirmed the plan. However, in late January -- shortly before the anticipated closing of the exit facility and Solutia's long- awaited emergence from Chapter 11 -- the banks notified Solutia that they were refusing to provide the funding, citing a so- called "market MAC" provision in their commitment letter and asserting that there has been a change in the markets since entering into the commitment. "It is a well-documented fact that the ongoing conditions in the credit markets began in the summer of 2007," said Quinn. "Well before the banks committed to Solutia's exit financing, they stated in public filings and through professional advice to Solutia that the credit markets were in disarray, and that the credit crisis would continue for months to come. Despite their concerns and negative outlook, the banks entered into a firm commitment to provide Solutia with this exit financing. The willingness of these banks to offer committed financing that was not subject to a successful syndication was a major factor in deciding to award them this business." Quinn added, "Solutia is ready to emerge from Chapter 11. We have successfully repositioned our company, we have confirmed a plan of reorganization that brings significant value to our constituents, and our businesses are performing well. We now look to the banks to meet their commitment." About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. =========================== C Z E C H R E P U B L I C =========================== CHEMOPROJECKT: Inks Pact with Setuza; Cancels Bankruptcy Request ---------------------------------------------------------------- Chemoprojekt has entered into a contract with Setuza, the Financial Times Ltd. reports citing Access Czech Republic Business Bulletin. Under the agreement, Chemoprojekt has agreed to cancel its bankruptcy motion. The company had applied for bankruptcy after it was not able to pay invoices worth CZK3.5 million related to its oil methylester producing plant, the report adds. Setuza, the report relates, had already paid for the invoices. About Setuza Based in Usti nad Labem, Czech Republic, Setuza is chemical and food company. About Chemoprojeckt Based in Prague, Czech Republic, Chemoprojekt, a. s. -- http://www.chemoprojekt.cz/-- is a Czech design, engineering and contracting company. The company has been operating since 1950 as a leading supplier for the organic and inorganic chemistry sector, petrochemistry, crude oil refining, natural gas processing, pulp and paper production, power generation and environmental protection. After 1992, Chemoprojekt has been focusing on the complex engineering activities and turn-key projects, mainly in the area of production of nitric acid, urea, oil & gas and biodiesel. =========== F R A N C E =========== GENERAL CABLE: Picks Brian Robinson as EVP, CFO & Treasurer ----------------------------------------------------------- General Cable Corporation's Board of Directors has elected Brian J. Robinson to the post of Executive Vice President, Chief Financial Officer and Treasurer effective immediately. Mr. Robinson will continue to report to Gregory B. Kenny, President and Chief Executive Officer of General Cable. "This is a well-deserved recognition by the Board of the value that the Company places on Brian�s operating and strategic leadership," said Gregory B. Kenny, President and Chief Executive Officer of General Cable. "Since January 2007, Brian has led our Corporate Finance Team through two debt issuances totaling over $800 million, and four acquisitions, including the $1.2 billion of revenues PDIC business. He has also been instrumental in driving improved controls and best practices in our global finance organization." Mr. Robinson has held the title of Senior Vice President, Chief Financial Officer and Treasurer since January 2007. Mr. Robinson became Controller for General Cable in 2000 and assumed the additional responsibility of Senior Vice President and Treasurer in March 2006. He began his career at Deloitte & Touche LLP in 1991, and in 1997 moved from Cincinnati, Ohio to London, England, where he served as Audit Manager focused on accounting services for global companies. In 1999, Mr. Robinson joined General Cable as Assistant Controller. Mr. Robinson holds a Bachelor of Science degree in Accounting from the University of Dayton and received his CPA certification in 1993. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power gimail ntransmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. * * * In September 2007, Moody's Investors Service assigned a rating of B1 to the proposed US$400 million senior unsecured convertible notes of General Cable Corporation. SPANSION INC: Posts US$49.5 Mil. Net Loss in 2007 Fourth Quarter ---------------------------------------------------------------- Spansion Inc. reported a net loss of US$49.5 million for the fourth quarter ended Dec. 30, 2007, compared to a net loss of US$71.6 million in the previous quarter. For the fourth quarter of 2007, the company reported net sales of US$652.8 million, an increase of 7.0% compared to net sales of US$611.1 million in the third quarter of 2007. For the fourth quarter of 2007 gross margin rose to 20.0% compared to 18.0% percent in the third quarter of 2007 and sequential operating loss decreased by US$13.0 million, or 22.0%, to US$46.2 million. "The fourth quarter reflected significant operational improvement as gross margin improved. The overall pricing environment was encouraging and the book-to-bill ratio was strong at 1.3," said Bertrand Cambou, president and chief executvie officer, Spansion Inc. "The strategic investment plan for our 300mm, SP1 facility is on track and we expect to begin recognizing revenue in the first quarter as we are already qualified at leading customers." Annual Highlights For the fiscal year ended Dec. 30, 2007, net sales declined 3.0% to US$2.5 billion from US$2.58 billion in the same time period last year. Net loss for fiscal year 2007 was US$263.5 million, compared to a net loss of US$147.8 million for fiscal year 2006. Net loss for fiscal year 2007 includes approximately US$60.0 million in operating costs related to the strategic investment in SP1, the company�s new 300mm, 65nm, wafer fabrication facility. Balance Sheet At Dec. 30, 2007, the company's consolidated balance sheet showed US$3.81 billion in total assets, US$2.18 billion in total liabilities, and US$1.63 billion in total stockholders' equity. About Spansion Inc. Headquartered in Sunnyvale, California, Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- designs, develops, manufactures, markets and sells flash memory solutions for wireless, automotive, networking and consumer electronics applications. The company has European operations in France, Asia-Pacific facilities in Japan, China, Malaysia and Thailand, as well as sales offices in Latin American countries including Brazil and Mexico. * * * To date, Spansion Inc. still carries Moody's 'B3' long term corporate family rating last placed on Dec. 5, 2005. Outlook is Stable. TEMBEC INC: Furnishes Updates on Proposed Recapitalization ---------------------------------------------------------- Tembec Inc. yesterday provided an update on its proposed recapitalization transaction disclosed on Dec. 19, 2007. -- Additional noteholders have executed support agreements in which they agreed to vote in favor of and to support the recapitalization. Noteholders have now agreed to vote in excess of US$795 million of notes in favor of and to support the recapitalization, representing in excess of 66% of the total amount of notes outstanding. -- As contemplated in the key terms of the recapitalization announced on December 19, all additional backstop deals with Tembec have now been completed. -- Tembec received written notice from the financial advisors to the informal committee of noteholders, confirming the committee's continuing support for the recapitalization and advising Tembec that they have informed Jolina Capital Inc. and its advisors of such views in respect of the recapitalization. Tembec stakeholders are also reminded of these: -- As previously stated, a management proxy circular relating to the recapitalization was mailed to registered noteholders of Tembec Industries Inc. and registered shareholders of Tembec Inc. on Jan. 29, 2008. -- Qualifying noteholders who wish to participate in the new US$300 million loan to Tembec Industries Inc. must deliver properly executed new loan participation forms to Computershare Investor Services prior to Feb. 15, 2008. Details regarding participation in the new loan are contained in the proxy circular. -- A special meeting of shareholders and a meeting of noteholders will be held on Feb. 22, 2008 relating to the approval of the recapitalization. Proxies for the meetings must be received by Computershare Investor Services prior to 5:00 p.m. (Toronto time) on Feb. 20, 2008. -- A hearing for the court order approving the recapitalization has been set for Feb. 27, 2008. Implementation of the recapitalization is expected to occur on Feb. 29, 2008. Tembec indicated that it will continue to solicit and obtain further support for the recapitalization. Questions regarding the meetings or participation in the new loan should be directed to Georgeson Shareholder Communications Canada Inc. through telephone numbers, 1-866-783-6756. Jolina Capital Proposal Last week, Jolina Capital Inc. has presented the terms of its proposal for the recapitalization of Tembec Inc. at a meeting of the holders of Tembec Industries Inc. unsecured senior notes respectively due June 2009, February 2011 and March 2012. The meeting was convened after Tembec's rejection of the Jolina Proposal and Tembec's invitation to Jolina to make the details of its proposal available to Tembec's stakeholders through a public statement. Bondholders Balk at Jolina Proposal The Canadian Press stated Tuesday that a number of bondholders have united to object to Tembec Inc.'s recapitalization as offered by Jolina Capital. This rejection, based on the report, may likely lead Tembec to go into bankruptcy under Companies Creditors' Arrangment Act (Canada) to allow the company get other refinancing. According to Canadian Press, creditors who were at last week's meeting with Jolina Capital asserted that "a disproportionate power" will be bestowed upon Jolina chairman Emanuele Saputo when the recapitalization is completed. Mr. Saputo was once part of Tembec's board of directors and presently owns about 19.4% stake at Tembec, according to the news. But many speculate that Mr. Saputo will gain influence over Tembec's US$1.2 billion recapitalization at a Feb. 22, 2008 meeting if the plan earns at least one-third of the votes, report related. About two-thirds of bondholders and shareholders must support the recapitalization during separate conventions, Canadian Press said. Mr. Saputo's consultant, Neil Rothschild told Canadian Press that his client remains indecisive. Tembec refused to comment about the possibility of CCAA filing, Canadian Press added. About Tembec Headquartered in Montreal Quebec, Tembec Inc. (TSC:TBC) -- http://www.tembec.com/-- operates an integrated forest products business. The company's operations consist of four business segments: forest products, pulp, paper and chemicals. The forest products segment consists primarily of forest and sawmills operations, which produce lumber and building materials. The pulp segment includes the manufacturing and marketing activities of a number of different types of pulps. The paper segment consists primarily of production and sales of newsprint and bleached board. The chemicals segment consists primarily of the transformation and sale of resins and pulp by- products. As of Sept. 29, 2007, Tembec operated manufacturing facilities in New Brunswick, Quebec, Ontario, Manitoba, Alberta, British Columbia, the states of Louisiana and Ohio, as well as in Southern France. * * * Standard & Poor's placed Tembec Inc.'s long term foreign and local issuer credit ratings at 'CC' in Dec. 20, 2007. TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend -------------------------------------------------------------- Timken Company's board of directors has declared a quarterly cash dividend of 17 cents per share. The dividend is payable on March 4, 2008, to shareholders of record as of Feb. 15, 2008. It will be the 343rd consecutive dividend paid on the common stock of the company. About Timken Co. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * The Timken Company still carries Moody's Investors Service's Ba1 senior unsecured deb rating on US$300 million Medium Term Notes, Series A. ============= G E R M A N Y ============= ATU AUTO-TEILE-UNGER: S&P Cuts Rating to B-; Retains Watch ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Germany-based auto parts retailer and integrated workshop operator A.T.U Auto-Teile-Unger to 'B-' from 'B'. At the same time, S&P lowered to 'CCC' from 'CCC+' the debt rating on the EUR150 million subordinated bond, maturing 2014, issued by finance vehicle A.T.U Auto-Teile-Unger Investment GmbH & Co. KG. The ratings remain on CreditWatch with negative implications where they were placed on Jan. 11, 2008. "The downgrade reflects the ongoing weak market environment due to mild weather conditions that have heightened concerns that ATU might breach the covenants under its senior secured facilities," said Standard & Poor's credit analyst Anna Stegert. ATU is currently revising its strategy in response to the adverse operating trends and its high dependence on weather- related winter-tire sales. The ratings continue to reflect S&P's expectations that management will seek ways to adapt the capital structure to compensate for the weak operating performance. The company's already weak operating performance for the first three quarters of 2007 continued in the traditionally strong fourth quarter of the year. ATU's credit protection measures for the 12 months ended Sept. 30, 2007, were down significantly on 2006, with net debt to earnings before interest, taxes, depreciation, amortization, and rents (EBITDAR) up to 6.9x from 6.1x, and funds from operations (FFO) to debt down to 7% from 9%. Leverage could increase further as a result of the reduced earnings guidance. In September 2007, the company reset its covenants, as headroom became tight under previous covenants after difficult trading in 2007. Nevertheless, there is uncertainty whether it will be able to comply with the new requirements in view of the steeper- than-expected decline in earnings. "Failure to comply with financial covenants could lead to restrictions on drawings under the revolving credit facilities, which would further impair the company's liquidity situation," said Ms. Stegert. To resolve the CreditWatch placement, S&P will seek detailed information on the company's revised business plan and the consequent implications for the capital structure. ANNETT REINELT: Claims Registration Ends March 4 ------------------------------------------------ Creditors of Annett Reinelt Hausverwaltungs GmbH have until March 4, 2008 to register their claims with court-appointed insolvency manager Steffi Radack-Mueller. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on April 3, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin 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: Steffi Radack-Mueller Franzoesische Strasse 9-12 10117 Berlin Germany The District Court of Neuruppin opened bankruptcy proceedings against Annett Reinelt Hausverwaltungs GmbH on Jan. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Annett Reinelt Hausverwaltungs GmbH Attn: Reiner Reinelt, Manager Albertstrasse 6 16540 Hohen Neuendorf Germany BAAN THAI: Claims Registration Ends March 4 ------------------------------------------- Creditors of Baan Thai Restaurant GmbH Hamburg have until March 4, 2008 to register their claims with court-appointed insolvency manager Veit Schwierholz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 4, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Meeting Hall B 405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Veit Schwierholz Heuberg 1 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Baan Thai Restaurant GmbH Hamburg on Jan. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Baan Thai Restaurant GmbH Hamburg Attn: Bhandit Sukondhavat and Sompongvadee Vikitsreth, Managers Gansemarkt 50 20354 Hamburg Germany BARFIN GMBH: Claims Registration Period Ends March 3 ---------------------------------------------------- Creditors of BARFIN GmbH Aerosols & Cosmetics have until March 3, 2008 to register their claims with court-appointed insolvency manager Stephan Ammann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 101 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stephan Ammann Barthstr. 16 80339 Munich Germany Tel: 089/8589633 Fax: 089/85896350 The District Court of Munich opened bankruptcy proceedings against BARFIN GmbH Aerosols & Cosmetics on Jan. 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BARFIN GmbH Aerosols & Cosmetics Seidlstr. 18 a 80335 Munich Germany BAUER-VERWALTUNG: Claims Registration Period Ends March 3 --------------------------------------------------------- Creditors of BAUER-Verwaltung GmbH have until March 3, 2008 to register their claims with court-appointed insolvency manager Hans-Joerg Laudenbach. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 26, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Marburg/Lahn Hall 157 Universitatsstrasse 48 35037 Marburg/Lahn 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. Hans-Joerg Laudenbach Fach 62 Carlo-Mierendorff-Strasse 15 35398 Giessen Germany Tel: 0641/98292-15 Fax: 0641/98292-16 The District Court of Marburg/Lahn opened bankruptcy proceedings against BAUER-Verwaltung GmbH on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BAUER-Verwaltung GmbH Lahnstrasse 16 35091 Coelbe Germany BAUGESCHAFT PETERSON: Claims Registration Period Ends March 3 ------------------------------------------------------------- Creditors of Baugeschaft Peterson GmbH have until March 3, 2008 to register their claims with court-appointed insolvency manager Stefanie Luethje. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on April 4, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Verden (Aller) Hall 214 Main Building Johanniswall 8 27283 Verden (Aller) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefanie Luethje Ostertorsteinweg 74/75 28203 Bremen Germany Tel: 0421/79257-0 Fax: 0421/7925757 The District Court of Verden (Aller) opened bankruptcy proceedings against Baugeschaft Peterson GmbH on Jan. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Baugeschaft Peterson GmbH Poggenmoorstr. 12 27283 Verden Germany BBT FERRO: Claims Registration Ends March 4 ------------------------------------------- Creditors of BBT Ferro GmbH have until March 4, 2008 to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on April 15, 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 Gera Hall 317 Rudolf-Diener-Str. 1 Gera Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rolf Rombach Magdeburger Allee 159 99086 Erfurt Germany The District Court of Gera opened bankruptcy proceedings against BBT Ferro GmbH on Jan. 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BBT Ferro GmbH Talstrasse 84 07743 Jena Germany BUV BAUGESELLSCHAFT: Claims Registration Ends March 4 ----------------------------------------------------- Creditors of BuV Baugesellschaft mbH have until March 4, 2008 to register their claims with court-appointed insolvency manager Dieter Rasehorn. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on April 1, 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle 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: Dieter Rasehorn Muehlweg 16, D 06108 Halle Germany Tel: 0345/478228124 Fax: 0345/478228119 The District Court of Halle-Saalkreisopened bankruptcy proceedings against BuV Baugesellschaft mbH on Jan. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BuV Baugesellschaft mbH Hauptstr. 16 06333 Greifenhagen Germany CITY COLOR: Claims Registration Period Ends March 3 --------------------------------------------------- Creditors of City Color GmbH Malerfachbetrieb have until March 3, 2008 to register their claims with court-appointed insolvency manager Gunter Tarkotta. Creditors and other interested parties are encouraged to attend the meeting on April 14, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Fuerstenstrasse 21-23 09130 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Gunter Tarkotta Boernichsgasse 4 09111 Chemnitz Germany Tel: (0371) 2783650 Fax: (0371) 27836529 E-mail: dmp@derra-c.de The District Court of Chemnitz opened bankruptcy proceedings against City Color GmbH Malerfachbetrieb on Jan. 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: City Color GmbH Malerfachbetrieb Attn: Frank Tautenhahn, Manager Rosinenberg 4 08112 Wilkau-Hasslau Germany CSS SANIERUNGSTECHNIK: Claims Registration Period Ends March 3 -------------------------------------------------------------- Creditors of CSS Sanierungstechnik GmbH have until March 3, 2008 to register their claims with court-appointed insolvency manager Stefan Denkhaus. Creditors and other interested parties are encouraged to attend the meeting at 9:35 a.m. on April 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefan Denkhaus Jungfernstieg 30 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against CSS Sanierungstechnik GmbH on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CSS Sanierungstechnik GmbH Attn: Ronald Seifert, Manager Bramfelder Chaussee 64 22177 Hamburg Germany GEORGIUS BAD: Claims Registration Period Ends March 3 ----------------------------------------------------- Creditors of Georgius BAD-DESIGN GmbH have until March 3, 2008, to register their claims with court-appointed insolvency manager Christian Beck. Creditors and other interested parties are encouraged to attend the meeting at 2:20 p.m. on March 31, 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 Dessau Hall 123 Willy-Lohmann-Str. 33 Dessau 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: Christian Beck Hansering 1 06108 Halle Germany Tel: 0345/21222400 Fax: 0345/21222436 The District Court of Dessau opened bankruptcy proceedings against Georgius BAD-DESIGN GmbH on Jan. 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Georgius BAD-DESIGN GmbH An der Hermine 15 06792 Sandersdorf Germany JACKEL MASSIVBAU: Claims Registration Period Ends March 3 --------------------------------------------------------- Creditors of Jackel Massivbau GmbH have until March 3, 2008, to register their claims with court-appointed insolvency manager Carsten Koch. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 9, 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 Marburg/Lahn Hall 157 Universitatsstrasse 48 35037 Marburg/Lahn 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: Carsten Koch Wilhelmshoeher Allee 270 34131 Kassel Germany Tel: 0561/3166-311 Fax: 0561/3166-312 The District Court of Marburg/Lahn opened bankruptcy proceedings against Jackel Massivbau GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Jackel Massivbau GmbH Im Hermersgrund 7 34637 Schrecksbach Germany JEREBITZ GMBH: Creditors' Meeting Slated for March 11 ----------------------------------------------------- The court-appointed insolvency manager for Jerebitz GmbH & Co. KG, Peter Theiss, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:45 a.m. on March 11, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Saarbruecken Area Hall 13 First Floor Vopeliusstrasse 2 66280 Sulzbach Germany The Court will also verify the claims set out in the insolvency manager's report at 8:45 a.m. on March 25, 2008, at the same venue. Creditors have until April 3, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Peter Theiss Dudweiler Strasse 4 66111 Saarbruecken Germany Tel: (0681) 9404 180 Fax: (0681) 9404 181 The District Court of Saarbruecken opened bankruptcy proceedings against Jerebitz GmbH & Co. KG on Jan. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Jerebitz GmbH & Co. KG Metzer Str. 105 66802 Ueberherrn-Felsberg Germany MIS LOGISTICS: Claims Registration Ends March 4 ----------------------------------------------- Creditors of MIS Logistics GmbH have until March 4, 2008 to register their claims with court-appointed insolvency manager Torsten Gutmann. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on April 8, 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover 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: Torsten Gutmann Kriegerstrasse 44 30161 Hannover Germany Tel: 0511 2206268-0 Fax: 0511 2206268-9 The District Court of Hannover opened bankruptcy proceedings against MIS Logistics GmbH on Jan. 21, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MIS Logistics GmbH Lilienthalstrasse 13 30179 Hannover Germany Attn: Michael Mass, Manager Jordanstr. 18A 301713 Hannover Germany OPTIK SOMMER: Claims Registration Period Ends March 3 ----------------------------------------------------- Creditors of Optik Sommer GmbH Augenoptik & Optometrie have until March 3, 2008, to register their claims with court- appointed insolvency manager Sabine Prager. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on April 1, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Sabine Prager Nymphenburgerstr. 139 80636 Munich Germany Tel: 089/120260 Fax: 089/12026137 The District Court of Munich opened bankruptcy proceedings against Optik Sommer GmbH Augenoptik & Optometrie on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Optik Sommer GmbH Augenoptik & Optometrie Riesstr. 59 80993 Munich Germany ROYAL FITNESS: Claims Registration Period Ends February 21 ---------------------------------------------------------- The court-appointed insolvency manager for Royal Fitness Centrum GmbH, Dr. Bernd Peters, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on Feb. 21, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on April 17, 2008, at the same venue. Creditors have until March 4, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Bernd Peters Am Wall 146 28195 Bremen Germany Tel: 0421/2440090 Fax: 0421/24400929 E-Mail: dr.peters@dr-peters.org The District Court of Bremen opened bankruptcy proceedings against Royal Fitness Centrum GmbH on Jan. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Royal Fitness Centrum GmbH Groepelinger Heerstr. 251-257 28237 Bremen Germany =========== G R E E C E =========== WIND HELLAS: Fitch Removes Negative Watch and Holds B Rating ------------------------------------------------------------ Fitch Ratings removed Greek mobile operator WIND Hellas Telecommunications S.A.'s ratings from Rating Watch Negative where they were placed on Oct. 19, 2007. Fitch has affirmed the company's Long- and Short-term Issuer Default ratings at 'B' and assigned a Stable Outlook to the Long-term IDR. The instrument ratings are also affirmed, as listed below. The ratings reflect the company's proven free cash flow generation capability in the Greek mobile market as the third- ranked operator and its rising market share at the expense of Vodafone Greece, as well as the potential growth prospects for the local loop unbundling (LLU) segment at newly-acquired fixed- line business Tellas. The agency expects the company's existing cash balance and EUR250m committed Revolving Credit Facility will provide adequate liquidity for Wind Hellas's share of short-term funding requirements at Tellas until the consolidated group returns to positive FCF generation. Though the agency takes comfort in the strong mobile franchise of Wind Hellas, Fitch also notes that there is a high level of execution risk for the fixed-line business of Tellas, for which 2008 will be a critical year on the LLU front. Fitch has reviewed Wind Hellas assuming the Tellas business is consolidated, but notes that funding requirements of Tellas will be shared with the minority owner, Wind Telecommunications SpA (rated 'BB-' (BB minus)/Negative Outlook). WIND Hellas' Long-term IDR of 'B' was predicated on Fitch's expectation of rapid deleveraging of the company to approximately 6x EBITDA by end-2007 or early-2008 from 7.1x at YE06. Whilst the company had met this target by Q307 on an adjusted EBITDA basis, pro forma for the Tellas acquisition in Q407, Fitch estimates an increase in adjusted net leverage to 7x by YE07. In addition, the additional funding and capital expenditure requirements for the development of Tellas's LLU business is expected to postpone the further deleveraging of the combined group until 2009. The agency believes that although the credit metrics may be stretched for a 'B'-rated credit in the short-term, the leverage levels are expected to decline towards the 6x level in the next 18 months, which is deemed acceptable for maintenance of the current rating. However, Fitch also notes that failure to delever to less than 6x (net) within the next 18 months or the implementation of further debt- funded acquisitions to bolster the company's position in the LLU segment would be detrimental to the rating. The future success of Tellas's fixed-line business in Greece will depend on the quality of its fixed network, rising competition in the sector, wholesale line rental and LLU rates, as well as its ability to access the exchanges of the incumbent (Hellenic Telecommunications Organization (OTE), rated 'BBB'/Stable Outlook). Greek broadband penetration is still low by western European standards, so there is opportunity for alternative providers to make an impact in the medium-term. Fitch also notes that the recent measures adopted by the Greek regulator have lowered the barriers to entry to the LLU segment and encouraged competition. WIND Hellas is the third-largest mobile operator in Greece and also owns the number-four operator Q-Telecom, with a combined 4.4 million customers at Q307. At Q307, Wind Hellas reported LTM total revenues and proforma adjusted EBITDA of EUR1,223m and EUR453m, respectively. WIND Hellas Ratings: WIND Hellas Telecommunications S.A.: Long-term IDR: affirmed at 'B'; removed from RWN; Stable Outlook assigned Short-term IDR: affirmed at 'B'; removed from RWN Hellas Telecommunications (Luxembourg) V senior revolving credit facility: affirmed at 'B+'/'RR3'; removed from RWN Hellas Telecommunications (Luxembourg) V senior secured floating rate notes due 2012: affirmed at 'B+' /'RR3'; removed from RWN Hellas Telecommunications (Luxembourg) III senior notes due 2013: affirmed at 'B+'/'RR3'; removed from RWN Hellas Telecommunications (Luxembourg) II subordinated floating- rate notes due 2015: affirmed at 'CCC+'/'RR6'; removed from RWN ============= I R E L A N D ============= CHATTEM INC: Earns US$59.7 Million in Fiscal Year Ended Nov. 30 --------------------------------------------------------------- Chattem Inc. reported net income of US$59.7 million for the fiscal year ended Nov. 30, 2007, compared to net income of US$45.1 million for fiscal 2006. Net income for fiscal 2007 included a loss on early extinguishment of debt and SFAS 123R employee stock option expense. Net income for fiscal 2006 included a debt extinguishment charge, litigation settlement items and SFAS 123R employee stock option expense. As adjusted to exclude these items, net income for fiscal 2007 was US$65.1 million, compared to US$37.5 million for fiscal 2006. Total revenues for fiscal 2007 rose to US$423.4 million, an increase of 40.9%, compared to total revenues of US$300.5 million in fiscal 2006. Revenue growth for the fiscal year was driven by the five acquired brands and continued growth of the Gold Bond and Icy Hot businesses, offset by declines in the Icy Hot Pro-Therapy(R) and Dexatrim(R) franchises, the latter of which was impacted by unprecedented competition in the weight loss category as well as difficult comparisons to the fiscal 2006 launch period of Dex Max2O(R). Excluding the impact of the acquired brands and Icy Hot Pro-Therapy, total revenues increased 5.0% compared to fiscal 2006. "The company experienced the most successful year in its 128 year history," said Zan Guerry, Chattem's chairman and chief executive officer. "Early in the year, we made the exciting acquisition of five brands from Johnson & Johnson and were able to integrate those brands into our organization smoothly and ahead of schedule. The acquisition, combined with the growth of our existing business, resulted in a 41.0% increase in total revenues for the year to a record US$423.0 million and even more impressive earnings growth," Guerry stated. "In reference to the balance sheet," Guerry commented further, "we were able to finance the acquisition of the five brands on very favorable terms and have put in place a very solid and effective capital structure. Our strong operating cash flows for fiscal 2007 enabled us to reduce debt more rapidly than we anticipated at the time of the acquisition while also repurchasing over 400,000 shares of our common stock for US$23.6 million, or an average cost of US$58.98 per share." Fourth Quarter Financial Results Total revenues for the fourth quarter of fiscal 2007 were US$100.6 million, compared to total revenues of US$65.1 million in the prior year quarter, representing a 54.5% increase. Revenue growth for the quarter was led by the five acquired brands as well as strong performances from Gold Bond and Icy Hot. Offsetting these increases was a reduction in sales of Dexatrim and lower sales of Icy Hot Pro-Therapy. Excluding the impact of the acquired brands and Icy Hot Pro-Therapy, total revenues increased 3.0% compared to the prior year quarter. Net income for the quarter rose to US$14.8 million, compared to net income of US$4.9 million for the prior year quarter. Net income for the fourth quarter of fiscal 2007 included SFAS 123R employee stock option expense. Net income for the fourth quarter of fiscal 2006 included litigation settlement items and SFAS 123R employee stock option expense. As adjusted to exclude these items, net income for the fourth quarter of fiscal 2007 was US$15.8 million, compared to US$6.0 million for the prior year quarter. In the fourth quarter of fiscal 2007, the company increased the reserves for Icy Hot Pro-Therapy retail and in-house inventory exposure by approximately US$7.0 million, which resulted in lower revenue and reduced gross margins during the fourth quarter of fiscal 2007. Cash Flows and EBITDA For the fiscal year, cash flows from operations increased 59.4% to US$86.7 million compared to US$54.4 million for fiscal 2006. Free cash flow was US$80.4 million, up 61.8%, compared to US$49.7 million for fiscal 2006. EBITDA increased 139.0% to US$32.2 million, or 32.0% of total revenues, for the quarter and increased 82.6% to US$133.9 million, or 31.6% of total revenues, for the fiscal year, compared to US$73.3 million, or 24.4% of total revenues in fiscal 2006. Total Debt Since acquiring the five brands on Jan. 2, 2007, the company has reduced total debt by US$62.5 million to US$508.0 million as of Nov. 30, 2007. During that same period, the company funded the purchase of a net bond hedge of US$12.1 million in connection with the issuance of the 1.625% senior convertible notes in April 2007; acquired the ACT business in Western Europe and the worldwide trademark rights to ACT for US$4.1 million; and repurchased 400,129 shares of the company's common stock for US$23.6 million, or an average cost of US$58.98 per share. Balance Sheet At Nov. 30, 2007, the company's consolidated balance sheet showed US$780.6 million in total assets, US$578.9 million in total liabilities, and US$201.7 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the fiscal year ended Nov. 30, 2007, are available for free at http://researcharchives.com/t/s?27ca About Chattem Chattem Inc. (NASDAQ: CHTT) -- http://www.chattem.com/-- markets and manufactures a broad portfolio of a broad portfolio of brandedover the counter healthcare products, toiletries and dietarysupplements. The company's portfolio of products includes well-recognized brands such as Icy Hot, Gold Bond, Selsun Blue, ACT, Cortizone-10 and Unisom. Chattem conducts a portion of its global business through subsidiaries in the United Kingdom, Ireland and Canada. * * * To date, Chattem Inc. still carries Moody's Investors Service 'Ba3' corporate family and 'B2' senior subordinate ratings. Outlook is Stable. ========= I T A L Y ========= ALITALIA SPA: Chairman Warns of Possible Bankruptcy --------------------------------------------------- Alitalia S.p.A. may file for bankruptcy if the sale of the Italian government's 49.9% stake to Air France-KLM SA is blocked, Bloomberg News reports citing Il Sole 24 Ore as its source. According to Il Sole 24 Ore, Alitalia chairman Maurizio Prato told stock market regulator Commissione Nazionale per le Societa e la Borsa that the exclusive sale talks with Air France is currently threatened by the current political crisis and the recently filed appeal by AirOne S.p.A. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. As reported in the TCR-Europe on Feb. 5, 2008, AP Holding S.p.A., the investment arm of AirOne, has filed an appeal with the Italian Regional Administration Court of Lazio to declare null and void a Dec. 28, 2007, decision of Italy's Ministry of Economy and Finance to commence exclusive talks to sell the Italian government's 49.9% stake to Air France-KLM SA. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Lazio Court to Hear AirOne Appeal February 20 ----------------------------------------------------------- The Italian Regional Administration Court of Lazio will convene on Feb. 20, 2008, to hear an appeal filed by AP Holding S.p.A., investment arm of AirOne S.p.A., to declare null and void a Dec. 28, 2007, decision of Italy's Ministry of Economy and Finance to commence exclusive talks to sell the government's 49.9% stake to Air France-KLM SA, Agenzia Giornalistica Italia reports. Lawyers for the parties have agreed not to take any action that may prejudice the situation before a verdict is reached, AGI relates. Slated to appear on the hearing are the regional government of Lombardy, Air France and Codacons. As reported in the TCR-Europe on Feb. 7, 2008, AirOne said it would present a binding offer for Italy's stake once it wins its appeal. AirOne said its offer will be financially backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc. TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera may join AirOne in its Alitalia bid. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Presents Summer Network Schedule for 2008 ------------------------------------------------------- Alitalia S.p.A. disclosed that its new summer schedule will come into force on March 31, 2008. The network for the 2008 summer season has been drawn up according to the guidelines set out in the 2008-2010 Business Plan approved by the Board of Directors in September 2007. The new network design is the first action, that can't be deferred, envisaged by the Plan. The actions contained in it, Alitalia says, are the result of compulsory choices, dictated by: * a trend of accumulated losses together with prospects which are less and less sustainable under the current situation; * the impossibility for the Company, as things stand, to manage two hubs efficiently and productively, from the competitive and economic points of view; and * the resulting urgent need to redefine Alitalia's positioning and business approach, through radical changes to the network, the quality of the product, operating costs, and Company organization. New Strategic Positioning Alitalia said it chose to return to its traditional mission, as a carrier serving Italy, placing Italy at the center of its network, by offering better schedules and connections between all the main Italian cities and the rest of the world and vice versa. With the new Alitalia network, Italy is no longer a transit point for passengers coming from other routes and traveling towards other destinations. With the current network, most of the intercontinental traffic on Malpensa is made up of connecting flights -� passengers for whom Milan is neither the origin nor the destination of their journeys; direct flights from/to Malpensa, less than half the traffic (38%), are used by Milanese customers, while most of the flights are operated by foreign airlines. Currently, most Alitalia flights on Malpensa from the rest of Italy are required not so much for passengers traveling from/to Milan, as to channel passengers (traveling beyond Milan) to Malpensa airport, which does not have a natural catchment area. For Alitalia, this system represents a burdensome and unsustainable duplication of flights for traffic from/to Milan, which is already served by the conveniently central airport of Milan Linate. The new business mission for Alitalia is based on: * choosing Rome Fiumicino as the main reference hub, in the middle of Italy and a "natural" catchment area for traffic, in order to take maximum advantage of Rome's special feature as a large destination market and natural point of inter-connection for Italian traffic and North- South routes; * suspending flights on non-remunerative routes and increasing connecting flights and frequencies; * relaunching the Alitalia brand in Italy and worldwide, in line with the new network positioning; * focusing product and marketing investments on the main markets of origin/destination from/to Italy: United States, Canada, Japan, South America and the Mediterranean area. Fiumicino as Main Reference Hub The reasons for choosing Fiumicino as main reference hub are: * under current conditions, it is impossible to run a dual- hub system efficiently because of the continuing accumulation of business losses, most of which are related to Malpensa airport; * focusing on Fiumicino radically improves service from the main Italian cities in north and south Italy, with more flights and better connections compared to the current situation at Malpensa; * Rome is the largest natural catchment area in Italy for air traffic demand from/to Italy; in Europe it is the third largest, after London and Paris; * 62% of passengers originating from the Milan area and 92% of passengers originating from north Italy do not use Malpensa as their departure airport for intercontinental flights; * Malpensa airport is difficult to get to (by car or train). Suspending Flights on Non-Remunerative Destinations Alitalia says destinations where the Company operated at a loss have been suspended for the 2008 network. These routes involve these airports: * in Italy, Rimini, Olbia (currently operated by Air Alps) and Perugia; * Zagreb, Sarajevo, Skopje; Minsk, Lyons, Copenhagen and Stockholm on the international market. -- service to Krakow and Timisoara is operated by the Group's low-cost company Volareweb; -- service to Copenhagen and Stockholm may also be operated by Volareweb); -- Dakar, Shanghai, Mumbai and Delhi, on the intercontinental market. These destinations will be re-instated as soon as conditions make it possible. Increasing Number of Flights Alitalia's 2008 network, while reducing the number of destinations, is strengthened in terms of the number of flights, with growth concentrated on Rome. Weekly frequencies from Fiumicino will go up from 1,406 to 1,601. The Company's network will be: * domestic market: 24 destinations, 44 routes, 1,265 frequencies a week; * international market: 45 destinations, 73 routes, 928 frequencies a week; * intercontinental market: 14 destinations, 17 routes, 101 frequencies a week. Quicker Connections Optimizing the network makes it possible to reduce considerably the connecting time on the hub for flights departing from Italian cities to intercontinental destinations, with transit via Fiumicino: * Turin-Buenos Aires: -30 minutes, * Turin-Miami: -15 minutes, * Verona-New York: -60 minutes, * Verona-Tunis: -95 minutes, * Bari-Miami: -70 minutes, * Catania-Sao Paulo: -60 minutes. Connectivity also improves for people from abroad who want to get to an Italian city, passing through Rome. Main reasons: Italian market * developing an international and intercontinental product from Rome with more destinations and flights; * improving flight schedules leaving from Rome, with more opportunities to use Alitalia for round-trip flights in one day from Fiumicino to destinations in Italy; * increasing the offer of flights from all over Italy to Rome, and increasing the opportunities of international connections from Italy to the rest of the world, and vice versa. * increasing the number and frequency of flights from Milan Linate to destinations in Italy and Europe; * improving schedules and flight times for the Milanese market both from Linate and from Malpensa for the routes served; * improving the quality of the product offered by means of redefining "feeder" operations previously carried out mainly by small aircraft of the regional type (turbo-props and small jets), now using larger and more comfortable aircraft (MD80 and Airbus); and * launching the low-cost Volareweb product for flights from/to Malpensa and domestic north-south flights. Main Reasons: Foreign Market * focusing the network on the main originating markets for travel from/to Italy: United States, Canada, Japan, South America and the Mediterranean area; * valorising Rome as a natural gateway destination for traffic to Italy and the Mediterranean area; * re-opening the historical Rome-Los Angeles route (also under study, boosting service to Brazil, as of the 2008 winter season); * Malpensa remains a key airport for Alitalia passenger transport, with a network design which, for the first time, is devoted to the needs of passengers traveling from/to Milan. Malpensa also becomes a focal point for cargo transport; A new marketing approach re-instating the traditional link with Italy Alitalia's market positioning also depends on relaunching the Alitalia brand, to be carried out by a number of actions. In Italy, the main ones are: * national and regional advertising campaign, multimedia and multi-channel, aimed at telling customers about the features of the Alitalia network; * more commercial agreements with the regions; * commercial events in all Italian airports; * recreating the link with Italy by means of producing a new set of images to complete the brand design system, focused on the three-color flag; * relaunching the MilleMiglia programme in its new edition, as of Jan. 1, 2008, which is more advantageous for frequent flyers, confirming its reputation as "top generous program." In the World, the main actions are: * advertising campaigns in the main countries served by Alitalia aimed at promoting the offer of flights to Rome and the many connections to the rest of Italy; * press conferences abroad on the new network; and * broadening commercial agreements with foreign markets. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. FIAT SPA: Keeps Position on Jaguar/Land Rover Acquisition --------------------------------------------------------- Fiat S.p.A. reiterated its previously stated position that it would not participate in the bidding process for the acquisition of Jaguar/Land Rover and would not buy these assets. The issued statement answered recent press speculations on Fiat's involvement with Tata Motors in its discussions regarding the acquisition of the marques. According to a Fiat spokesman, Fiat has not had discussions, directly or indirectly, with Tata regarding this potential transaction or its participation in it and it has not offered to purchase any assets or technologies from Tata if the transaction is completed. "Fiat nonetheless considers Tata as a strategic partner, and is considering other collaboration alternatives which do not involve the Jaguar/Land Rover assets," a Fiat spokesman said. In a report by Adrian Michaels for the Financial Times, Tata Motors is the frontrunner in negotiations to acquire Jaguar/Land Rover in a deal worth around US$2 billion. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the Troubled Company Reporter-Europe on Jan. 28, 2008, Moody's Investors Service affirmed Fiat SpA's Ba1 Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook was maintained. The short term Not Prime rating remains unchanged. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. FIAT SPA: Unit Signs PoU to Boost & Develop Verrone Plant --------------------------------------------------------- Fiat S.p.A.'s Fiat Powertrain Technologies (FPT) signed a protocol of understanding with the Region of Piedmont, the Province of Biella and the City of Verrone, that aimed at boosting and developing the Verrone plant. A new transmission named the C635 will be produced there for use in mid-sized cars. It is estimated that FPT will invest approximately EUR500 million between fixed assets and research and development costs, which will permit achieving a production capacity of about 800,000 transmissions in 2012. Once it is in full operation, it could employ 1,100 workers, or about 600 more than current levels. Production of the manual version of the new C635 transmission is planned to begin in June 2009, while production of the Dual Dry Clutch version will begin in September 2009 and the robotized version in 2010. The C635 DDCT transmission introduces a new technology in the automatic transmission sector and will be able to replace both current robotized transmissions and traditional transmissions. One of its special features is that it will significantly reduce fuel consumption as compared with traditional automatic transmissions. By signing the Protocol of Understanding, the common objective of FPT, the Region of Piedmont, the Province of Biella, and the City of Verrone is to establish certain general principles, commitments, and procedures for future implementation by means of instruments that will be defined over time. The Region of Piedmont, the Province of Biella, and the City of Verrone support this project on account of the social, economic, and employment impact that it can have on the industrial system of the Biella area and all of Piedmont. The participating local entities promise to reduce the time for administrative procedures and authorizations necessary for realization of the investment planned by FPT to a minimum. The Province of Biella and the City of Verrone will promote and organize a series of initiatives principally for transport and city planning. Furthermore, the Region of Piedmont promises to submit the Protocol of Understanding to the Ministry of Research and the Ministry of Economic Development for signing of joint program agreements in support of the initiative. A joint technical committee will also be set up at the Region of Piedmont Department of Productive Activities. This committee will be responsible for full implementation of the initiative. Fiat Powertrain Technologies is the Fiat Group company that embraces all the powertrain activities of Fiat Group Automobiles, Iveco, CRF, and Elasis. Around 25% of its revenues are generated by sales to non-captive customers. With annual production of approximately 3.1 million engines and 2.5 million transmissions, 20,000 employees, 15 plants, and 10 research and development centers in seven countries, FPT is one of the world�s most important powertrain makers. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the Troubled Company Reporter-Europe on Jan. 28, 2008, Moody's Investors Service affirmed Fiat SpA's Ba1 Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook was maintained. The short term Not Prime rating remains unchanged. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. PARMALAT SPA: Sees Up to EUR550 Million Net Profit for 2007 ----------------------------------------------------------- Parmalat S.p.A.'s Board of Directors approved its preliminary results at Dec. 31, 2007, which show further gains in the Group's operating performance and a marked improvement in its net financial position. The Parmalat Group posted EUR367.1 million in EBITDA on EUR3.86 billion in net revenues for the financial year ended Dec. 31, 2007, compared with EUR347.7 million in EBITDA on EUR3.63 billion in net revenues for the same period in 2006. The Parmalat Group expects EUR545 million to EUR550 million in net profit for full year 2007, compared with EUR125.6 million in net profit for 2006. Parmalat attributed the improved results largely to: * an aggressive pricing policy designed to offset the impact of higher raw material costs; * a shift in the product mix toward items with greater value added; * an increase in manufacturing and operating efficiency; and * successful marketing programs. As of Dec. 31, 2007, the Group had EUR857 million in net financial assets, compared to EUR170 million in net borrowings as at Dec. 31, 2006. The Group attributed the positive impact on the net financial position to: * EUR754.6 million in cash flow from operations, proceeds from settlements with credit institutions; * EUR247.8 million in divestitures of non-strategic assets; Other developments that had negative impact on the net financial position include: * EUR55 million in costs incurred to pursue lawsuits; * EUR40 million in tax payments; and * EUR43.4 million in distribution of dividends. Parmalat S.p.A. For full year 2007, Parmalat S.p.A. posted EUR78.4 million in EBITDA on EUR869.4 million, compared with EUR69.5 million in EBITDA on EUR841.9 million for full year 2006. Parmalat expects the net profit for the period to range between EUR545 million and EUR550 million, mainly due to settlements with financial institutions. As of Dec. 31, 2007, Parmalat had EUR1.23 billion in net financial assets, compared to EUR341.4 million in net financial assets at Dec. 31, 2006. Parmalat attributed the improvement to a positive cash flow from operations and proceeds generated by lawsuit settlements and divestitures of non-strategic assets. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debt