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 15, 2008, Vol. 9, No. 33 Headlines A U S T R I A AB-YZ LLC: Claims Registration Period Ends March 19 ALFRED GATTRINGER: Claims Registration Period Ends March 18 ALPHA INSPECT: Claims Registration Period Ends March 19 BAUMEISTER ING. MULLY: Claims Registration Period Ends March 11 IMMO-MARKETING: Claims Registration Period Ends March 11 LOG-TRANS: Claims Registration Period Ends March 17 B E L G I U M CHIQUITA BRANDS: Completes US$200MM Offering of 4.25% Sr. Notes LEVI STRAUSS: Nov. 25 Balance Sheet Upside-Down by US$398 Mln POPE & TALBOT: Trout Lake Property Put to InterFor APA POPE & TALBOT: Asks Court to Set April 3 as Claims Bar Date POPE & TALBOT: Can Sell Pulp Business Assets to PT Pindo Deli POPE & TALBOT: Can Sell Remaining Wood Products to Fox Lumber SOLUTIA INC: Lenders Seek Clarification of Funding Commitment SOLUTIA INC: Resolves EPA Environmental Claim for US$3,600,000 F R A N C E ALCATEL-LUCENT: Forms Long-Term Evolution Joint Venture with NEC BOSTON SCIENTIFIC: Will Pay US$431 Mln in Stent Patent Dispute GENERAL CABLE: Earns US$208.6 Million in Full Year 2007 INTELSAT LTD: Appoints Messrs. Spengler & Guillemin as EVP & SVP G E O R G I A BANK OF GEORGIA: Share Offering Raises US$100 Million G E R M A N Y DELME BAU: Claims Registration Period Ends March 5 DIE BRILLE: Claims Registration Period Ends March 5 DIELER & TREPPKE: Claims Registration Period Ends March 11 FEIL WARENHANDEL: Claims Registration Period Ends March 5 HM FACHMARKTE: Claims Registration Period Ends March 10 HOLZBISCHOFF GMBH: Claims Registration Period Ends March 11 IKB DEUSTCHE: German Government Pioneers EUR1.5 Billion Bail-Out INTER OBJEKT: Claims Registration Period Ends March 11 IPAK GMBH: Claims Registration Ends March 11 LICH VERWALTUNGS: Claims Registration Period Ends March 3 MICAS GMBH: Claims Registration Period Ends March 11 MOEBEL-THATE AUGUST: Creditors' Meeting Slated for February 28 MULTITEC SYSTEM: Claims Registration Period Ends March 11 MUSICSELLER 24: Claims Registration Ends March 10 REDA IMPORT: Claims Registration Ends March 10 REHN & BUSCH: Claims Registration Period Ends March 3 SPECTRUM BRANDS: Dec. 30 Bal. Sheet Upside-Down by US$141.2 Mln SUPREME ITALY: Claims Registration Ends March 10 WAT-AUTOTEILE GMBH: Claims Registration Ends March 10 H U N G A R Y PROPEX INC: Gets Access to Additional US$40 Mln of DIP Financing PROPEX INC: IRS Demands Filing of Form 941 for Third Qtr. 2007 PROPEX INC: Shaw and IRS Balk at BNP Paribas DIP Fund Agreement I R E L A N D HALYARD CDO I: Credit Deterioration Cues Moody's to Cut Ratings I T A L Y ALITALIA SPA: Trims Pretax Losses to EUR362.92 Million in 2007 BERRY PLASTICS: Completes Acquisition of Captive Plastics Inc. CARROZZERIA BERTONE: Turin Court Declares Firm Insolvent FIAT SPA: Joint Venture with Credit Agricole Earns EUR119 Mln K A Z A K H S T A N AGRO KONA-INVEST: Proof of Claim Deadline Slated for March 14 AKBAZJAN LLP: Creditors Must File Claims by March 14 ANA-INSHAAT LLP: Claims Filing Period Ends March 14 INTIS AGRO: Creditors' Claims Due on March 14 LEX BUSINESS: Claims Registration Ends March 14 MFS GLOBENET: Proof of Claim Deadline Slated for March 14 RETRO STROY: Creditors Must File Claims by March 14 K Y R G Y Z S T A N BISHFU LLC: Claims Filing Period Ends February 22 SKAP VOSTOK: Creditors Must File Claims by February 28 L U X E M B O U R G MILLICOM INTERNATIONAL: Earns US$697.1 Million in Full Year 2007 N O R W A Y NORTEL NETWORKS: Plans Joint Venture with Motorola R U S S I A CHULMAN LLC: Tatarstan Bankruptcy Hearing Slated for April 15 ENTERPRISE ECOLOGICAL: Creditors Must File Claims by February 28 KHAKASSKIY DIARY: Creditors Must File Claims by March 28 METALLURG-STROY: Creditors Must File Claims by February 28 ROSNEFT OIL: BP Joint Venture Lulls Sakhalin Drilling Operations STAVROSS-AGRO: Stavropol Bankruptcy Hearing Slated for March 20 TIMASHEVSKIY OJSC: Asset Sale Slated for February 26 VELIZH-FLAX OJSC: Court Starts Bankruptcy Supervision Procedure S W I T Z E R L A N D AAR BAUMONTAGEN: Thurgau Court Closes Bankruptcy Proceedings C-UNO JSC: Creditors' Liquidation Claims Due by Feb. 21 RS GASTRO: Creditors' Liquidation Claims Due by Feb. 28 SHOE SHINE: Creditors' Liquidation Claims Due by Feb. 21 SOURCING CENTRE: Creditors' Liquidation Claims Due by Feb. 25 TOP SPECIAL: Thurgau Court Closes Bankruptcy Proceedings TWIN FALLS: Creditors' Liquidation Claims Due by Feb. 22 TWINLOGIC LLC: Creditors' Liquidation Claims Due by Feb. 20 U K R A I N E IZIUMAL AGRICULTURAL: Creditors Must File Claims by February 27 KOZHANKA SUGAR: Creditors Must File Claims by February 27 LAN-AGRIKO LLC: Proofs of Claim Deadline Set February 24 PERVOMAYSKY AGRICULTURAL: Creditors Must File Claims by Feb. 27 RINGO-TRADE LLC: Creditors Must File Claims by February 27 SVITANOK LLC: Creditors Must File Claims by February 27 TRADING HOUSE: Creditors Must File Claims by February 24 U N I T E D K I N G D O M AFC BOURNEMOUTH: Enters Into Administration BLUE ROOM: Names Neil Francis Hickling Liquidator CHRYSLER LLC: U.S. Bankruptcy Court Evaluates Tooling Request COLLINS & AIKMAN: Bayer Unit Buys IP Rights on Thermoplastics CONCORDIA BUS: S&P Raise Ratings to B- in Line with Parent COTT CORP: Net Loss Rises to US$76.8MM in Quarter Ended Dec. 29 CUMMINS INC: Board Declares 12.5 Cents Per Share Dividend ELECTRONIC DATA: Bob Hershey to Lead SAP Consulting Practice FARROW INVESTMENTS: HSBC Bank Brings In PwC as Receivers FORD MOTOR: Backs Up Chrysler's Tooling Request from Plastech GAMEKEEPA FEEDS: Taps Milner Boardman as Administrators GENERAL MOTORS: Backs Up Chrysler's Request to Recover Equipment INVENSYS PLC: Will Redeem Outstanding Bonds on March 17 LDA INTERIOR: Claims Filing Period Ends March 14 MANCHESTER MARBLE: Names Administrators from Milner Boardman MARTIN EVANS: Brings In Liquidators from Mazars MAXJET AIRWAYS: Taps M. Beyer as Expert Valuation Consultants MIDLAND SHEETMETAL: Taps Liquidators from PricewaterhouseCoopers MTB EQUIPMENT: NatWest Bank Taps Menzies as Receivers OAKLEY HOTELS: Calls In Liquidators from Tenon Recovery PACKAGING ROLLER: Appoints Joint Administrators from Menzies SCO GROUP: Eyes 26% Job Cuts to Reduce Expenses SUN MICROSYSTEMS: Signs Stock Purchase Deal with innotek SUN MICROSYSTEMS: To Launch Sun Vietnam With Frontline Tech TATA MOTORS: Plans to Bring Hybrid Nano to Europe in Four Years TATA MOTORS: Awards Speed Sensor Supply Deal to TT Electronics WR GRACE: Seeks Court OK to Extend DIP Facility Until April 2010 WR GRACE: Asbestos Claims Estimation Trial to Resume March 24 WR GRACE: Wants to Contribute US$17 Million to Pension Plan * BOOK REVIEW: A Legal History of Money in the United States ********* ============= A U S T R I A ============= AB-YZ LLC: Claims Registration Period Ends March 19 --------------------------------------------------- Creditors owed money by LLC AB-YZ (FN 151497s) have until March 19, 2008, to file written proofs of claim to court- appointed estate administrator Arno Maschke at: Dr. Arno Maschke c/o Dr. Peter Schulyok Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: maschke@sup.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:10 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. 24, 2008 (Bankr. Case No. 2 S 9/08y). Peter Schulyok represents Dr. Maschke in the bankruptcy proceedings. ALFRED GATTRINGER: Claims Registration Period Ends March 18 ----------------------------------------------------------- Creditors owed money by LLC Alfred Gattringer Moebel- Fachwerkstatte (FN 82374p) have until March 18, 2008, to file written proofs of claim to court-appointed estate administrator Gerhard Nathschlager at: Mag. Gerhard Nathschlager Eisenhandstrasse 15 4020 Linz Austria Tel: 0732/775544-13 Fax: 0732/775544-10 E-mail: insolvenz@bzp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on April 1, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Hall 522 Fifth Floor Linz Austria Headquartered in Steyregg, Austria, the Debtor declared bankruptcy on Jan. 23, 2008 (Bankr. Case No. 17 S 6/08v). ALPHA INSPECT: Claims Registration Period Ends March 19 ------------------------------------------------------- Creditors owed money by LLC ALPHA INSPECT Warenpruefung (FN 152206h) have until March 19, 2008, to file written proofs of claim to court-appointed estate administrator Klemens Dallinger at: Dr. Klemens Dallinger c/o Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Austria Tel: 513 28 33 E-mail: dallinger@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:10 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. 23, 2008 (Bankr. Case No. 2 S 8/08a). Guenther Hoedl represents Dr. Dallinger in the bankruptcy proceedings. BAUMEISTER ING. MULLY: Claims Registration Period Ends March 11 --------------------------------------------------------------- Creditors owed money by LLC Baumeister Ing. MULLY & Partner Bau (FN 81817w) have until March 11, 2008, to file written proofs of claim to court-appointed estate administrator Katharina Twaroch- Nowak at: Mag. Katharina Twaroch-Nowak Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei.twaroch@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on March 25, 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 Jan. 23, 2008 (Bankr. Case No. 28 S 12/08f). IMMO-MARKETING: Claims Registration Period Ends March 11 -------------------------------------------------------- Creditors owed money by KEG IMMO-MARKETING Boigner (FN 127105w) have until March 11, 2008, to file written proofs of claim to court-appointed estate administrator Guenther Hoedl at: Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Austria Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on March 25, 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 Jan. 23, 2008 (Bankr. Case No. 28 S 155/07h). LOG-TRANS: Claims Registration Period Ends March 17 --------------------------------------------------- Creditors owed money by LLC LOG-TRANS Transport (FN 103131p) have until March 17, 2008, to file written proofs of claim to court-appointed estate administrator Gerhard Wagner at: Dr. Gerhard Wagner Spittelwiese 6 4020 Linz Austria Tel: 77 58 00 Fax: 77 58 00 - 15 Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on March 31, 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 Haid bei Ansfelden, Austria, the Debtor declared bankruptcy on Jan. 23, 2008 (Bankr. Case No. 12 S 3/08s). ============= B E L G I U M ============= CHIQUITA BRANDS: Completes US$200MM Offering of 4.25% Sr. Notes --------------------------------------------------------------- Chiquita Brands International, Inc., closed its offering of US$200 million aggregate principal amount of 4.25% Convertible Senior Notes, including the full exercise by the underwriters of the US$25 million overallotment option granted by the company. Net proceeds of approximately US$194 million will be used to repay a portion of the outstanding amounts under the company's Term Loan C of its senior secured credit facility. The convertible senior notes mature in 2016 and will bear interest at a rate of 4.25% per annum, payable semi-annually in arrears, beginning Aug. 15, 2008. The Notes are convertible, under certain circumstances described in the prospectus, at an initial conversion rate of 44.5524 shares of common stock per US$1,000 original principal amount of Notes, equivalent to an initial conversion price of approximately US$22.45 per share of Chiquita common stock, subject to adjustment. This represents an initial premium of approximately 32.5% to the last reported sale price of Chiquita's common stock on Feb. 6, 2008, of US$16.94. The Notes are unsecured unsubordinated obligations of Chiquita Brands International, Inc., and rank equally with any unsecured unsubordinated indebtedness Chiquita may incur. Beginning Feb. 19, 2014, Chiquita may call the Notes for redemption if the common stock trades above 130% of the conversion price, or initially approximately US$29.19 per share, for at least 20 of the 30 trading days preceding the redemption notice. The offer and sale of the convertible senior notes were made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. were the joint book-running managers for the offering. A prospectus relating to the offering may be obtained from: Goldman, Sachs & Co. Prospectus Department 85 Broad Street New York, New York 10004 Fax: 212-902-9316 or E-mail: prospectus-ny@ny.email.gs.com A prospectus may also be obtained from: Morgan Stanley & Co. Inc. Prospectus Department 180 Varick Street New York, New York 10014 Tel: 1-866-718-1649 E-mail: prospectus@morganstanley.com Cincinnati, Ohio-based Chiquita Brands International Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Belgium, Columbia, Germany, Panama, Philippines, among others. * * * Chiquita Brands International Inc. continues to carry Moody's Investors Service's B3 long-term corporate family and Caa2 senior unsecured debt ratings which were placed on November 2006. The outlook is negative. LEVI STRAUSS: Nov. 25 Balance Sheet Upside-Down by US$398 Mln ------------------------------------------------------------- Levi Strauss & Co.'s balance sheet, as of Nov. 25, 2007, showed total assets of US$2.85 billion and total liabilities of US$3.24 billion, resulting in a US$398 million stockholders' deficit. For the full year of 2007, the company reported US$460.3 million of net income on US$4.1 billion of net sales compared to US$239 million of net income on US$4.2 billion of net sales in 2006. Net revenues for the fourth quarter improved 2 percent to US$1.3 billion compared to the same period last year, and increased 4 percent to US$4.4 billion for fiscal 2007 compared with the previous year on a reported basis. Excluding currency effects, net revenues decreased by 2 percent in the quarter compared with the same period in 2006, reflecting declining sales in North America. For the fiscal year, net revenues increased 1 percent excluding currency effects compared to 2006, driven by sales growth in Asia-Pacific emerging markets, Europe and the U.S. Levi's(R) brand. Income before income tax increased 9 percent to US$376 million for fiscal 2007 compared with US$345 million in fiscal 2006. Net income increased in the fourth quarter by 179 percent or US$171 million to US$267 million compared to the same period last year. "In 2007 we continued to make good progress on growing the Levi's(R) brand around the world, upgrading our Levi's(R) and Dockers(R) products, and expanding our retail network, said John Anderson, president and chief executive officer. "I'm particularly pleased with the solid performance of our European business. Although the company had a challenging fourth quarter, we improved our financial strength in 2007." "Looking ahead, we anticipate a difficult retail environment in several markets around the world. We will focus on product innovation, retail expansion and optimizing our global presence in more than 110 countries," said Mr. Anderson. "We continued to improve our financial strength in 2007, delivering solid operating margins while investing in our brands and systems. We also reduced debt by more than US$250 million and secured lower interest rates in our debt restructuring actions taken during the year, helping us further reduce interest expense, said Hans Ploos van Amstel, Chief Financial Officer. "In 2008, we are continuing to focus on cash flow and building our brands. Our improved financial strength will help us as we face the economic uncertainty ahead. About Levi Strauss & Co. Headquartered in San Francisco, California, Levi Strauss & Co. - - http://www.levistrauss.com/-- is a branded apparel company. The company designs and markets jeans and jeans-related pants, casual and dress pants, tops, jackets and related accessories for men, women and children under its Levi's, Dockers and Levi Strauss Signature brands in markets around the world. Levi Strauss & Co. distributes its Levi's and Dockers products primarily through chain retailers and department stores in the United States, and through department stores, specialty retailers and franchised stores abroad. The company distributes its Levi Strauss Signature products through mass channel retailers in the United States and abroad. The company employs a staff of approximately 10,000 worldwide, including approximately 1,010 at the company's San Francisco, California headquarters. Levi Strauss Europe is headquartered in Brussels, Belgium, while Levi's Asia Pacific division is based in Singapore. Levi's has operations in Brazil, Mexico, Chile and Peru. * * * In October 2007, Fitch Ratings assigned a 'BB+' rating to Levi Strauss & Co.'ssecond amended and restated US$750 million 5-year Asset-Based Revolving Credit Facility. The rating outlook is stable. Levi Strauss carries Fitch's BB- Issuer Default Rating; BB+ Bank Credit Facility rating; and BB- Senior Unsecured Notes rating. POPE & TALBOT: Trout Lake Property Put to InterFor APA ------------------------------------------------------ PricewaterhouseCoopers Inc., as monitor of the proceedings commenced by Pope & Talbot Ltd. and its subsidiaries under the Companies' Creditors Arrangement Act, reports that through negotiations with the British Columbian Government with respect to required approvals for the sale of the Applicants' wood business assets to International Forest Products Limited, the Applicants' Trout Lake property was added to the InterFor Asset Purchase Agreement to maintain it as part of a tree farm license. The Trout Lake property was originally part of the Applicants' surplus lands sales process, and had an asking price of CDN$595,000. The Applicants and the Monitor believe this in an equitable transaction. The Monitor notes that based on discussions it had with the British Columbian Government and the Applicants, the various B.C. Government approvals for the transfer of certain licenses, permits, leases and freehold lands appears to be progressing towards an early April 2008 date. As reported in the Troubled Company Reporter on Jan. 14, 2008, the U.S. Bankruptcy Court for the District of Delaware approved the sale, pursuant to an amended purchase agreement, of the Debtors' wood products business to InterFor for US$69,000,000. Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. Markets for the company's products include the US, Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expired 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Asks Court to Set April 3 as Claims Bar Date ----------------------------------------------------------- To address the potential inconsistency between the treatment of claims incurred but not paid by Pope & Talbot Inc. and its debtor-affiliates between the October 28 Canadian Filing Date and the November 19 Chapter 11 Petition Date, the Debtors obtained permission of the U.S. Bankruptcy Court for the District of Delaware to pay Gap Claims in the same manner as if the Claims had arisen after the Petition Date. The Debtors do not believe that any Gap Claims remain unpaid, Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, states. "The Debtors expect to sell all of their operating assets by the end of the first quarter of 2008. Although it is not yet clear how much the Debtors will realize from the sale of their assets, the Debtors anticipate that the proposed sales will enable them to provide a distribution to their unsecured creditors pursuant to a plan of liquidation." Rule 3003(c)(2) of the Federal Rules of Bankruptcy Procedure provides that any creditor whose claim is not scheduled or whose claim is scheduled as disputed, contingent or unliquidated must file a proof of claim. Accordingly, the Debtors ask the Court to establish: -- April 3, 2008, as the deadline for creditors to assert claims arising on or before the Petition Date against the Debtors to file original, written proofs of claim; and -- May 19, 2008, as the last day by which governmental units must file claims against any of the Debtors. Ms. Jones relates that creditors should be required to submit proofs of claim only with respect to claims that arose prior to the Oct. 28, 2008 Canadian Filing Date, and not the Chapter 11 Petition Date. "Utilization of the Canadian Filing Date is appropriate to facilitate coordination of the Insolvency Proceedings," she maintains. The Debtors propose that the Bar Dates should not apply to the certain categories of claims or interests, including: (a) Administrative expenses, (b) GAP Claims, (c) Properly Scheduled Claims, (d) Previously filed claims, (e) Interests, (f) Previously Allowed Claims, (g) Intercompany Claims, (h) Claims arising on account of Notes, (i) Paid Claims, (j) Claims Against Non-Debtor Affiliates, (k) Claims relating to rejected executory contracts, and (l) Prepetition Agents' claims on non-default interest. Claims Protocol Coordination of the claims process is essential and should, among other things, maximize the efficiency of the claims process, reduce the associated costs, and avoid duplication of effort on the part of the British Columbia Supreme Court and the Bankruptcy Court, the Debtors, and the Debtors' creditors, Ms. Jones points out. The Debtors propose that any of their creditor or equity security holder may file a proof of claim or interest with either Kurtzman Carson Consultants LLC, the Debtors' claims agent, or the Monitor in the Canadian Proceedings. If a creditor files a claim with both KCC and the Monitor, the last timely filed claim will govern. The Bankruptcy Court will be the forum to determine all claims asserted against the Debtors arising principally out of their operations in the United States, and the Canadian Court will be the forum to determine all claims asserted against the Applicants, arising principally out of their operations in Canada. KCC and the Monitor will seek to establish a common list of creditor claims in respect of each of the Debtors as far as reasonably practicable. In resolving disputes relating to the terms, intent or application of the Claims Protocol, the Bankruptcy and Canadian Courts will hold a joint hearing to resolve any dispute, unless all parties involved consent to the resolution of the dispute by a single Court. As reported in the Troubled Company Reporter-Europe on Dec. 6, 2007, the Debtors asked the U.S. Bankruptcy Court for authority to implement a proposed cross-border insolvency protocol to govern the administration of the Debtors' dual proceedings between the Bankruptcy Court and the Canadian Court. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, said that a cross-border protocol is needed to ensure that: -- the Debtors' Chapter 11 cases and the CCAA insolvency proceedings are coordinated to avoid inconsistent, conflicting or duplicative activities; -- all parties are informed adequately of key issues in the Chapter 11 cases and the CCAA proceedings; -- the substantive rights of all parties are protected; and -- the jurisdictional integrity of the Bankruptcy Court and the Canadian Court is preserved. As reported in the The Troubled Company Reporter-Europe on Dec. 28, 2007, the Debtors' proposed cross-border insolvency protocol was approved by both the U.S. Bankruptcy Court and the Canadian Court. Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. Markets for the company's products include the US, Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expired 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Can Sell Pulp Business Assets to PT Pindo Deli ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Pope & Talbot Inc. and its debtor-affiliates to sell their pulp business assets to PT Pindo Deli Pulp and Paper Mills for US$105,290,000, subject to certain adjustments, pursuant to an asset purchase agreement dated Jan. 8, 2008. The Hon. Christopher S. Sontchi approved in its entirety the terms and conditions of the Pindo Deli APA, and the transactions contemplated by the APA, including: -- the sale of the Debtors' Pulp Business Assets to Pindo Deli, free and clear of all liens or any other interest of any entity attaching to the proceeds of the Sale, except for certain permitted encumbrances other than mechanics liens; -- the Debtors' assumption and assignment to Pindo Deli of certain assigned contracts; -- Pindo Deli's assumption of certain liabilities; and -- the parties' performance under a transition services agreement which will be entered into before the closing date of the Sale, in a form reasonably satisfactory to Pindo Deli, the Official Committee of Unsecured Creditors and the Debtors' DIP Agents. The Court held that the liens and security interests of the lenders under the Debtors' DIP Loan Agreement and Prepetition Credit Agreement will attach to the proceeds of the Sale, with the same priority, validity, force and effect as the interests existed immediately prior to the closing of the Sale. In accordance with the APA, Pindo Deli has elected to exclude certain transactions from the Assigned Contracts. Judge Sontchi authorized and directed Pindo Deli to pay the Debtors, at the Closing Date, certain cure costs with respect to each Assigned Contracts, which will be deducted from the Purchase Price. Other Provisions Prior to the Court's approval of the Pindo Deli APA, 10 parties objected to the Debtors' then proposed cure amounts, in connection with the assumption and assignment of certain leases to Pindo Deli. In disputing the Debtors' Cure Amount Schedule, the Objecting Parties submitted their individual computations of the "correct amounts", most of which, provides for the additional amount of arrears that have accrued or may accrue during the Debtor's Chapter 11 proceedings. The Objecting Parties are: (1) Western Forest Products Inc., (2) Automotive Rentals, Inc., (3) ARI Financial Services Inc., (4) Georgia Pacific LLC, (5) Georgia Pacific Corporation, (6) Georgia Pacific West Inc., (7) James River Paper Company Inc., (8) James River Paper Corporation of Virginia, (9) Winthrop Resources Corporation, and (10) Canadian Forest Products Ltd. The Debtors will attempt to resolve timely objections to any cure costs. IGI Resources Inc., and BP Energy Company objected to the proposed assumption and assignment of an IGI gas management services contract, without the assumption and assignment of a related IGI gas supply contract. "To avoid confusion, the Debtors should clarify their intent by identifying properly both contracts to be assumed and assigned," Craig A. Wolfe, Esq., at Kelley Drye & Warren LLP, in New York asserted, on IGI's behalf. Linn County, Oregon and Multnomah County, Oregon are holders of secured tax claims in the Debtors' Chapter 11 proceedings. At the request of Linn County and Multnomah County, the Court held that the liens that secure the Tax Claims will attach to the sale proceeds with the same priority, validity, force and effect as existed on the Petition Date. According to Judge Sontchi, the alleged amount of Linn County's Tax Claims for the year 2007 - 2008 for US$353,440, and the alleged amount of Multnomah County's Tax Claims for the year 2007 - 2008 for US$7,998, will be escrowed, or otherwise deposited in trust or segregated by the Debtors pending release, until further order of the Court or the individual consent of Linn County and Multnomah. Judge Sontchi will decide on the objections asserted by Winthrop Resources Corporation at a hearing to be held on Feb. 26, 2008. Winthrop Resources does not object to the Debtors' decision to sell the Pulp Business Assets to Pindo Deli. Winthrop, however, does not consent to the assumption and assignment of its equipment lease with the Debtors to Pindo Deli, because the Debtors are seeking to assume and assign only a portion of the Equipment Lease which is applicable to the Debtors' Pulp Business. The Equipment Lease also applies to the Debtors' other assets and business operations, Mary F. Caloway, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, stated, on Winthrop's behalf. Moreover, she noted, the Debtors have not provided Winthrop with adequate assurance that Pindo Deli will be able to perform the lessee's obligations under the Lease. Lawson Software Inc., disputed the "assignability" of a software product license agreement and services agreement it entered into with the Debtors. The firm maintained that copyright licenses cannot be assigned without the permission of the copyright owner. No consent from any third party is required to effectuate the assumption and assignment of the Assigned Contracts, Judge Sontchi ruled. The Court also authorized the Debtors 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. A full-text copy of the Pulp Business Sale Order is available for free at http://researcharchives.com/t/s?27ff 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 net purchase price and other asset net realizations for the Debtors' Pulp Business Assets Sale total US$211,000,000. The Monitor believes that the Debtors' estimate should be US$3,000,000 lower as a result of certain Cure Amounts not fully provided for by the Debtors. Thus, the Monitor's revised estimate is US$208,000,000. As part of estimating the net purchase price, the Debtors have provided for a potential purchase price reduction related to the Cure Amounts. The Debtors are not yet certain which contracts Pindo Deli will assume and, therefore, the amount cannot be determined yet. The Debtors have estimated the maximum Cure Amounts to total US$7,000,000. The Monitor has reviewed this estimate, and believes that the total Cure Costs are likely understated by US$3,000,000, as a result of disputed arrears as between the Debtors and certain creditors that have not been included. Accordingly, the Monitor has estimated the Cure Amounts to aggregate US$10,000,000. Through the Chapter 11 proceedings, the Debtors sent a notice of cure amounts to all contract holders. The amounts currently claimed by creditors total US$10,000,000 -- US$7,000,000 for Canadian creditors and approximately US$3,000,000 for U.S. creditors. As noted in the Monitor's Sixth Report to the Canadian Court, there are differences in U.S. and Canadian law in relation to contracts to be assigned and the treatment of those contracts. The ultimate effect of the Pindo Deli APA may see some creditors paid prepetition debt by reason of the selection by Pindo Deli to continue their contract, the Monitor notes. The effect of the payments may be inconsistent with Canadian insolvency Law, the Monitor adds. The Debtors initially targeted to complete the Pindo Deli transaction by Feb. 15, 2008, as required by the DIP loan agreement. Certain government approvals for transferring licenses and freehold land remain to be accomplished though, according to the Monitor. It is clear that the transaction will not be completed by February 15, based on the government approvals, the Monitor points out. "The end of March appears to be the earliest that the transaction could reasonably be completed." The Pindo Deli APA provides an exclusion of any environmental liabilities that exist at the time of closing. It may not be possible to exclude this liability contractually, the Monitor points out. The Monitor maintains that had any further time been provided to the bidding process, it would not have created a financially superior transaction than the Pindo Deli transaction. Accordingly, the Monitor supports the Pindo Deli APA. As reported in the Troubled Company Reporter on Jan. 28, 2008, the Debtors sought and obtained the Court'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. Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. Markets for the company's products include the US, Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expired 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Can Sell Remaining Wood Products to Fox Lumber ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Pope & Talbot Inc. and its debtor-affiliates to sell their remaining wood products business to Fox Lumber Sales Inc. for US$750,000. Fox Lumber was highest and best bidder at an auction held on Feb. 5, 2008. The Hon. Christopher S. Sontchi approved in its entirety the asset purchase agreement between the Debtors and Fox Lumber, and the transactions contemplated by the APA, including: -- the sale of the the Debtors' Remaining Wood Products Business to Fox Lumber, free and clear of all liens and encumbrances, with any other interest of any entity attaching to the proceeds of the Sale; -- the Debtors' assumption and assignment of certain assigned contracts to Fox Lumber; and -- Fox Lumber's assumption of certain liabilities. The liens and security interests of the lenders under the Debtors' DIP Loan Agreement and Prepetition Credit Agreement will attach to the proceeds of the Sale, with the same priority, validity, force and effect as the interests existed immediately prior to the closing of the Sale, the Court ruled. So long as any amounts remain outstanding under the DIP Loan Agreement and Prepetition Credit Agreement, the proceeds from the Sale will not be used by the Debtors absent the consent of the DIP Agents and Lenders, Judge Sontchi clarified. The Court also authorized and directed the Debtors to pay, by the Closing Date, any cure costs with respect to the Assigned Contracts. No consent from any third party is required to effectuate assumption and assignment of the Assigned Contracts. All objections to the Court's Sale Order that have not been withdrawn, waived, adjourned, resolved or settled, and all reservations of rights, are overruled. Canadian Proceedings The Applicants sought the authority of the British Columbia Supreme Court to sell their Remaining Wood Products Business to Fox Lumber. Kathy L. Mah, Esq., at Stikeman Elliott LLP, in Toronto, Canada, told the Court that the Sale would provide the Applicants with the best opportunity to realize value from their Remaining Wood Products Business, and would provide immediate cash recovery to the Applicants' creditors. A full-text copy of the Remaining Wood Products Sale Bankruptcy Order is available for free at: http://researcharchives.com/t/s?2800 As reported in the Troubled Company Reporter on Jan. 28, 2008, Pope & Talbot Inc. asked the Court's authority to sell their remaining wood products business to the highest and best bidder at an auction on Feb. 5, 2008. Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. Markets for the company's products include the US, Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expired 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Lenders Seek Clarification of Funding Commitment ------------------------------------------------------------- Citigroup Global Markets Inc., Goldman Sachs Credit Partners LP, Deutsche Bank Trust Company Americas and Deutsche Bank Securities Inc., are seeking a declaratory judgment that: (a) their funding obligations are conditioned upon satisfaction of the "Adverse Market Change Provision"; (b) they are not in breach of the Commitment Letter because all conditions precedent to the commitment of each Commitment Party for closing of the "Facilities" have not been met; and (c) Solutia Inc., remains obligated under the Commitment Letter to indemnify the Commitment Parties in connection with any investigation, litigation or proceeding related to the Commitment Letter or the documentation and transaction contemplated, including the cost of the Adversary Proceeding, as well as for transaction costs. D. J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, counsel for the Commitment Parties, contends that Solutia "goes to great lengths to create a smokescreen of alleged extraneous and irrelevant matters in order to distract from the fact that the Commitment Letter is a simple contract with unambiguously clear, concise and enforceable terms and conditions which have not been satisfied." These terms and conditions were heavily negotiated and agreed to in writing by the parties, Mr. Baker argues, saying that the Commitment Letter is "explicit and unequivocal." Mr. Baker also notes that one important condition to each Commitment Party's obligation to assume the risk of completing syndication and fund the loan was that there not be "any adverse change since the date of this Commitment Letter, Oct. 25, 2007, in the loan syndication, financial or capital markets generally that, in the reasonable judgment of such Commitment Party, materially impairs syndication of the Facilities." According to Mr. Baker, when the market disruptions developed in July and August, Solutia temporarily suspended its exit financing search. Solutia resumed its efforts when the markets showed signs of improvement in September. At that time, he notes, Solutia recommenced its exit financing solicitation, and each of the Commitment Parties submitted separate and independent proposals, which included an adverse market change provision. Indeed, Citigroup explicitly advised Solutia that the inclusion of an adverse market change provision was a condition for approval of the financing by its credit committee, Mr. Baker tells the U.S. Bankruptcy Court for the Southern District of New York. The precise wording of the Adverse Market Change Provision was specifically negotiated over a period of days, and several proposals and counter-proposals were exchanged, as Solutia and its advisors tried to narrow and limit the Adverse Market Change Provision, before the parties agreed to the version that appears in the executed contract, he relates. Mr. Baker further states that "there can be no doubt that the markets have changed adversely since Oct. 25, 2007" -- a fact recognized by the Federal Reserve Board, and "virtually every financial regulator, newspaper, commentator and practitioner in the world." Under the Commitment Letter, Solutia agreed to provide certain information necessary for the Commitment Parties to offer the Facilities to the market. Mr. Baker alleges that Solutia did not provide the required information until early January. Due to the adverse changes in the markets that had occurred since October 25, and despite the Commitment Parties' diligent efforts, few potential buyers have shown interest in the syndication, he avers. Mr. Baker maintains that the Commitment Parties have not breached the Commitment Letter and related agreements, and are entitled to have those agreements enforced according to their express terms. The Commitment Parties' judgment that the adverse market changes have materially impaired the syndication is "eminently reasonable" and is supported not only by their inability to syndicate the deal, but by objective evidence and views of market experts, insists Mr. Baker. Solutia Wants Counterclaims Barred Solutia tells the Court that the Counterclaims of the Commitment Parties should be barred, in whole or it part: (i) because the Commitment Parties have failed to state a claim upon which relief can be granted; (ii) by the equitable doctrine of unclean hands; and (iii) by the doctrines of estoppel, and waiver or ratification. Any recovery by the Commitment Parties would constitute unjust enrichment, Richard I. Werder, Jr., Esq., at Quinn Emanuel Urquhart Oliver & Hedges LLP, in New York, asserts, on Solutia's behalf. Solutia, at all relevant times, acted in good faith and with reasonable diligence, he says. Mr. Werder argues that the Commitment Parties' counterclaim for indemnity fails because the Commitment Letter provides, in part, that parties may not seek indemnification "to the extent such actual claim, damage, loss, liability or expense (x) is caused by the bad faith, gross negligence or willful misconduct of such Indemnified Party, as determined by a final judgment of a court of competent jurisdiction . . ." Solutia reserves the right to assert defenses, whether affirmative or otherwise, about which it presently lacks knowledge or information, but which may become available to it during the course of the Adversary Proceeding. Solutia also reserves the right to amend its answer. Retirees Committee Seeks to Intervene The Official Committee of Retirees in the Debtors' Chapter 11 cases relates that Solutia has consented to the panel's intervention as a plaintiff in the Adversary Proceeding. Representing the Retirees Committee, Daniel D. Doyle, Esq., at Spencer Fane Britt & Browne LLP, in St. Louis, Missouri, states that, as the representative of approximately 20,000 retirees who are claimholders under the Debtors' confirmed Fifth Amened Joint Plan of Reorganization, the Retirees Committee has an unconditional right to intervene in the Adversary Proceeding. The Retirees Committee also has a right to permissive intervention under Federal Rule of Civil Procedure 24 (a) or (b), Mr. Doyle adds. The outcome of the Adversary Proceeding will directly affect the Plan and will, therefore, affect future benefits to be provided to the retirees, says Mr. Doyle. Pursuant to Bankruptcy Rule 7024(c), the Retirees Committee adopts the same claims asserted in the Complaint, and adopts the Complaint as its pleading setting forth the claims for which the Retirees Committee seeks intervention as a plaintiff. Solutia Wants Testimonies Solutia seeks to compel the deposition of corporate representatives of the Commitment Parties and Citigroup Chief Executive Officer Vikram Pandit. Mr. Werder tells the Court that the Commitment Parties have refused to produce corporate representatives in response to Rule 30(b)(6) of the Federal Rules of Civil Procedure deposition notices to produce a person most knowledgeable on certain limited topics. According to Mr. Werder, the Commitment Parties have stated that, at this point, they will not designate 30(b)(6) witnesses at all. After all percipient depositions are completed, the Commitment Parties "will" consider the request to designate these witnesses. Mr. Werder argues that the Commitment Parties' actions are improper because: -- the Commitment Parties are required to produce the witness that have properly been noticed; -- the Rules do not afford a party discretion to choose who they want to testify; and -- percipient witnesses are not the same as corporate representatives. Mr. Werder notes that percipient witnesses might be third parties or employees who just happened to be in the right place at the right time to have relevant information. A 30(b)(6) witness, on the other hand, must testify about information not only known to himself, but also information known or reasonably available to the organization, he explains. The Commitment Parties' refusal to comply with Rule 30(b)(6) is "a stall tactic" to delay discovery with the hope that the clock will expire in this expedited proceeding before the deposition of their corporate representatives can be taken, Mr. Werder contends. The Court has ordered that fact witness depositions will be completed no later than Feb. 18, 2008. The 30(b)(6) notices called for the designation of witnesses to testify about: (a) the history and extent of each Commitment Party's use of Adverse Change Provisions or Market MAC Provisions in commitment letters, agreements, and other documents relating to the provision of financing; (b) all instances in which each Commitment Party has declined, refused or failed to fund a loan facility or loan facilities by invoking, citing, or otherwise relying on an Adverse Change Provision or Market MAC Provision, and all instances in which each Commitment Party has threatened to call a MAC; and (c) the reason that each Commitment Party decided not to fund Solutia's Exit Financing package. With respect to Mr. Pandit, Solutia has noticed the need to depose the CEO on Feb. 7, 2008. However, counsel to Citigroup said in a conference call to Solutia's counsel that Citigroup would not produce Mr. Pandit because Solutia had no good faith basis to assert the CEO was involved in any issue relevant to the case. According to Susheel Kirpalani, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, in New York, the decision not to fund Solutia's Exit Financing was made by none other than Mr. Pandit himself. Only Mr. Pandit possesses unique knowledge as to the decision he himself made to withdraw from fund the Exit Financing in reliance upon market conditions -- a first ever for Citigroup, Mr. Kirpalani tells the Court. The Exit Financing is crucial to Solutia's hope to emerge from Chapter 11 as planned, and to financially support its confirmed Plan, Mr. Kirpalani asserts. The possibility that Citigroup may not believe Mr. Pandit has sufficiently relevant information to justify his disposition is simply not a basis to withhold him, Mr. Kirpalani maintains. * * * To accommodate Solutia's financing needs, the Court agreed to commence the trial with respect to the Complaint on Feb. 21, 2008, and conclude it on February 26, Rosemary L. Klein, Solutia's senior vice president, general counsel and secretary, disclosed in a filing with the Securities and Exchange Commission. As previously reported, funding of the obligations under the Commitment Letter by the Commitment Parties is a condition to consummation of Solutia's confirmed Plan. The equity commitment letter with respect to the creditor rights offering contains closing conditions including that the effective date of Solutia's Plan will have occurred by Feb. 28, 2008, according to Ms. Klein. No assurance can be given that Solutia will prevail in its dispute with the Commitment Parties or that the Court will enter an order in time to force closing by Feb. 28, 2008, Ms. Klein states. Even if a timely order is entered, no assurance can be given that the Commitment Parties would not be able to obtain a stay pending appeal. Any of these factors could cause Solutia to fail to meet a closing condition under the creditor rights offering commitment, she adds. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on Dec. 11, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed $1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed $400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. SOLUTIA INC: Resolves EPA Environmental Claim for US$3,600,000 -------------------------------------------------------------- Judge Prudence Carter Beatty of the U.S. Bankruptcy Court for the Southern District of New York approved a settlement agreement between Solutia Inc. and the Environmental Protection Agency, giving the government a US$3,600,000 unsecured claim to compensate for costs incurred to clean a toxic industrial site on Ferry Street in St. Louis, Missouri. The original environmental claim -- Claim No. 11276 -- asserted contamination charges for US$9,800,000. The Allowed EPA Claim and its remaining portions will be treated in accordance with Solutia's Consensual Plan of Reorganization, as confirmed on Nov. 29, 2007. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on Dec. 11, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. =========== F R A N C E =========== ALCATEL-LUCENT: Forms Long-Term Evolution Joint Venture with NEC ---------------------------------------------------------------- Alcatel-Lucent SA and NEC Corporation have decided to form a joint venture that will focus on the development of Long Term Evolution (LTE) wireless broadband access solutions. These solutions will support the network evolution of leading customers around the world, such as NTT DoCoMo, who has already selected NEC as a vendor for commercial service deployment of its Super 3G (LTE) project, and Verizon, with whom Alcatel- Lucent has already initiated a LTE trial program. Through this joint development effort, the two companies intend to accelerate the availability of next-generation wireless solutions. Leveraging the common LTE product strategy and platform of the joint venture, Alcatel-Lucent and NEC will each manage delivery, project execution and dedicated support to their respective customers. Under this joint venture, the two companies will pool their existing research & development resources and leverage market- proven expertise in key technologies on which next-generation wireless access is based, such as IP, multiple input/multiple output and orthogonal frequency division multiple access. Through this joint development effort, Alcatel-Lucent and NEC are affirming their R&D investment commitments and combining them to accelerate product innovation, differentiation and performance. The goal of the two companies is to achieve faster commercial availability of LTE solutions, serve an expanded, global customer base, and establish a leading position in the early development phase of the LTE market. The two companies will make first commercial releases available in 2009, and will leverage their field-proven wireless expertise to ensure smooth integration of LTE technology with the existing W-CDMA/HSPA and CDMA/EV-DO networks of their respective customers. "By leveraging complementary portfolios, robust research and innovation capabilities, and strong market positions in Japan and around the globe, the partnership is well positioned to hasten the evolution towards the next-generation of mobile services," said Philip Marshall, who heads up technology research at Yankee Group. "This is a smart pairing that will help accelerate the availability of LTE by capitalizing on early market implementations that we expect to occur in Japan and North America." "This strategic collaboration with NEC is driven by scale, time- to-market, and product excellence objectives, and it will put us in a strong position to ride the next wave of transformation in the wireless industry," said Patricia Russo, CEO of Alcatel- Lucent. "By drawing upon our combined innovation capabilities, we will be able to effectively accompany leading operators as they migrate their network to next-generation wireless broadband technology, hence sustaining the value of their networks well into the future," she added. "This collaboration gives us the potential to open up new market opportunities for advanced wireless services globally," said Kaoru Yano, President of NEC Corporation. "Moreover, NEC's core competence lies in integrated IT/network solutions business. Through this alliance, we intend to explore the potential for collaboration with Alcatel-Lucent to best leverage both companies' market-leading capabilities in a wide range of fields. We expect this partnership to contribute to the execution of our next-generation network business strategy by expanding our reach into global markets." In the future, the collaboration is expected to expand into end- to-end third-generation CDMA-based solutions, as well as a wide range of advanced IP-based solutions, such as optical transmission, IP service routing, and IMS-based communications services. Alcatel-Lucent and NEC will also investigate collaborating in developing IT solutions for service providers - such as service application solutions (e.g. streaming, e- commerce, etc.) -- together with the servers and storage products on which those solutions depend. About NEC NEC Corporation provides Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 150,000 people worldwide. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BOSTON SCIENTIFIC: Will Pay US$431 Mln in Stent Patent Dispute -------------------------------------------------------------- The U.S. District Court jury in Marshall, Tex., found that Boston Scientific Corporation's TAXUS Express, and TAXUS Liberte drug-eluting stent products infringe Dr. Bruce Saffran's patent and that the patent is valid. No injunction was requested, but the jury awarded damages of US$431 million. The company says that the jury verdict is unsupported by both the evidence and the law. On these grounds, the company plans to seek to overturn the verdict in post-trial motions before the District Court and, if unsuccessful, to appeal to the U.S. Court of Appeals for the Federal Circuit. The company relates it will prevail on appeal. Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. * * * As reported in the Troubled Company Reporter-Europe on Jan. 14, 2008, Standard & Poor's Ratings Services said that the announcement by Boston Scientific Corp. that the Court of Appeals for the Federal Circuit affirmed a District Court ruling that found the NIR stent infringed one claim of a patent owned by Johnson & Johnson, does not affect its ratings or outlook for Boston Scientific. Boston Scientific's corporate credit rating is rated 'BB+' by S&P with a negative outlook. GENERAL CABLE: Earns US$208.6 Million in Full Year 2007 ------------------------------------------------------- General Cable Corporation has reported US$46.7 million of net income for the three months ended Dec. 31, 2007, compared to US$35.4 million of net income for the same period in 2006. For the full year of 2007, the company earned US$208.6 million compared to 2006 net earnings of US$135.3 million. Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, "I am extremely pleased with the strong financial results that the Company continues to deliver for our shareholders. The Company has succeeded in substantially expanding its global manufacturing platform, improved its financial flexibility and liquidity, and is reporting today record revenues and earnings. Over the last twelve months the Company has completed several strategically important acquisitions. These have given the Company a significant presence in the developing economies of the world, access to important undersea power and communication technologies, and exceptional management experience. While we are proud of our roots in the United States, today approximately 65% to 70% of our revenues are generated outside the country. Fourth Quarter Results Net sales for the fourth quarter of 2007 were US$1,297.8 million, an increase of US$377.1 million or 41.0% compared to the fourth quarter of 2006 on a metal-adjusted basis. This growth was principally due to the company's exposure to global electrical infrastructure markets, the acquisition of PDIC, as well as favorable foreign exchange translation. Revenues from acquired businesses contributed US$271.5 million in the fourth quarter. Without the benefit of revenues from acquired businesses, revenues would have increased 11.5% on a metal- adjusted basis. Fourth quarter 2007 operating income before charges was US$93.0 million compared to operating income of US$57.5 million in the fourth quarter of 2006, an increase of US$35.5 million or 61.7%. Operating margin before charges was 7.2% in the fourth quarter of 2007, an increase of approximately 100 basis points from the operating margin percentage of 6.2% in the fourth quarter of 2006 on a metal-adjusted basis. This improvement was principally due to better price realization in many of the company's product lines, cost improvements from LEAN initiatives, and the continued profitable expansion of the Silec, ECN, and NSW businesses. "We have also seen strong recovery in our LAN cable products with new product designs and strong business leadership. I am also pleased to see significant progress at our Silec facility with respect to product throughput as well as their LEAN manufacturing skills. The integrations of ECN and NSW have been absolutely seamless and performance ahead of our investment case," Mr. Kenny said. Preferred Stock Dividend In accordance with the terms of the company's 5.75% Series A Convertible Redeemable Preferred Stock, the Board of Directors has declared a regular quarterly preferred stock dividend of approximately US$0.72 per share. The dividend is payable on Feb. 22, 2008, to preferred stockholders of record as of the close of business on Jan. 31, 2008. The Company expects the quarterly dividend payment to approximate US$0.1 million. First Quarter 2008 Outlook "The Company continues to benefit from its strategic investments in new products and geographies more than offsetting the ongoing weakness in certain product lines in the developed economies. For the first quarter, the Company expects to report earnings per share of US$1.05 or more compared to an adjusted earnings per share of US$1.01 in the first quarter of 2007, on revenues of approximately US$1.5 billion, Mr. Kenny concluded. 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. INTELSAT LTD: Appoints Messrs. Spengler & Guillemin as EVP & SVP ---------------------------------------------------------------- Intelsat Ltd. announced a number of executive appointments, effective immediately. Intelsat Chief Executive Officer Dave McGlade has appointed Stephen Spengler to the position of Executive Vice President, Sales & Marketing, and Thierry Guillemin to the position of Senior Vice President & Chief Technical Officer, both new roles. These roles replace the Chief Operating Officer position vacated by James Frownfelter, who submitted his resignation from Intelsat on Feb. 8 2008. Mr. Spengler most recently served as Intelsat's Senior Vice President, Europe, Middle East, Africa & Asia Pacific Sales, and has over 25 years experience in the telecommunications industry. Since joining Intelsat in 2003, Mr. Spengler has served in a number of sales leadership positions, and led Intelsat's Global Marketing and Sales organizations immediately prior to Intelsat's acquisition of PanAmSat in 2006. As Executive Vice President, Sales & Marketing, Mr. Spengler will have responsibility for Intelsat's global marketing and sales efforts, which include providing services to media and network services customers in approximately 200 countries and territories. Mr. Guillemin most recently served as Intelsat's Vice President of Satellite Operations & Engineering, where he was responsible for the service availability of Intelsat's in-orbit fleet of 54 satellites. Mr. Guillemin has over 25 years experience in the satellite industry, in disciplines including spacecraft development, launch and operations. As Senior Vice President & Chief Technical Officer, Mr. Guillemin will be responsible for customer operations, space systems management and planning, and satellite operations. In announcing the appointments, Mr. McGlade said, "Over the past several years, Intelsat has built a highly skilled management team, one that understands the needs of our global customer base and that is fully capable of profitably growing the business. I am proud of the bench strength we enjoy throughout the organization, and today's appointments reflect Intelsat's leadership in this respect. We thank Jim Frownfelter for his years of service to PanAmSat, and for his contributions to our successful merger integration progress. About Intelsat Headquartered in Bermuda, Intelsat, is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. * * * As reported in the Troubled Company Reporter-Europe on Jan. 31, 2008, Moody's Investors Service downgraded Intelsat Ltd.'s corporate family rating by two notches to Caa1. ============= G E O R G I A ============= BANK OF GEORGIA: Share Offering Raises US$100 Million ----------------------------------------------------- JSC Bank of Georgia disclosed the results of the offering of its four million new ordinary shares in the form of global depositary receipts, each GDR representing one ordinary share of the bank. The bank has sold four million new ordinary shares in the form of GDRs at a price of US$25 per GDR. The offering raised gross proceeds of US$100 million. The proceeds (after fees and expenses) will provide required capital for the bank's planned domestic growth and for international expansion. The bank has agreed to a lock-up of three months with respect to the issuance of new equity, subject to standard exceptions. The offering represents approximately 14.7% of the issued share capital before the offering. The offer price is equal to a 1.6% discount to the prevailing closing market price on the date of the offering. ING Bank acted as sole bookrunner for the offering. Unicredit Group was joint lead manager and Galt and Taggart Securities, the bank's brokerage subsidiary, acted as selling agent. "We are pleased to announce the successful offering of our shares," Nicholas Enukidze, acting chairman of the Supervisory Board of the Bank of Georgia, said. "The funds raised enable us to work for the consolidation of our position in the Georgian market and provides funding for international expansion. On behalf of the Bank, we thank our existing shareholders for their continued support and take this opportunity to welcome our new investors." About Bank of Georgia Bank of Georgia, a leading universal Georgian bank with operations in Georgia and Ukraine, is the largest bank by assets, loans and equity in Georgia. The major component of the Galt & Taggart Index, the bank has 117 branches and over 705,000 retail and approximately 64,000 corporate current accounts. The bank offers a full range of retail banking and corporate and investment banking services to its customers across Georgia. It also provides a wide range of corporate and retail insurance products through its wholly owned subsidiary, BCI, as well as asset & wealth management services. * * * As of Feb. 11, 2008, Bank of Georgia carries 'B+/B' rating with a stable outlook from Standard & Poor's; 'B3/NP' (FC) and 'Ba1/NP (LC) ratings with a stable outlook from Moody's Investors Service; and a 'B+/B' credit rating with a stable outlook from Fitch Ratings. ============= G E R M A N Y ============= DELME BAU: Claims Registration Period Ends March 5 -------------------------------------------------- Creditors of Delme Bau Beteiligungs-GmbH have until March 5, 2008, to register their claims with court-appointed insolvency manager Hermann Berding. Creditors and other interested parties are encouraged to attend the meeting at 2:50 p.m. on April 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Delmenhorst Hall 2 Branch 1 Cramerstrasse 183 27749 Delmenhorst 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: Hermann Berding Jammertal 1 D 49661 Cloppenburg Germany Tel: 04471/91260 Fax: 04471/82997 The District Court of Delmenhorst opened bankruptcy proceedings against Delme Bau Beteiligungs-GmbH on Jan. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Delme Bau Beteiligungs-GmbH Hansastrasse 86 27751 Delmenhorst Germany Attn: Peter Garbade, Manager Wildeshauser Str. 12 27243 Harpstedt Germany DIE BRILLE: Claims Registration Period Ends March 5 --------------------------------------------------- Creditors of Die Brille 21 Burkhard Dietz GmbH have until March 5, 2008, to register their claims with court-appointed insolvency manager Norbert Weber. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.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 Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Norbert Weber Friedrich-Ebert-Strasse 146 42117 Wuppertal Germany Tel: 0202/30 20 71 Fax: 0202/31 47 08 The District Court of Wuppertal opened bankruptcy proceedings against Die Brille 21 Burkhard Dietz GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Die Brille 21 Burkhard Dietz GmbH Schuchardstr. 21 42275 Wuppertal Germany Attn: Burkhard Dietz, Manager Wittelsbacher Str. 31 a 42287 Wuppertal Germany DIELER & TREPPKE: Claims Registration Period Ends March 11 ---------------------------------------------------------- Creditors of Dieler & Treppke Heizung-Sanitar GmbH have until March 11, 2008, to register their claims with court-appointed insolvency manager Mechthild Greve. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 11, 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 Koblenz Hall 123 Main Court Karmeliterstrasse 14 56068 Koblenz 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: Mechthild Greve Josef-Goerres-Platz 5 56068 Koblenz Germany Tel: 0261/30479-0 Fax: 0261/9114729 E-mail: info@lieser-rechtsanwaelte.de Web: http://www.lieser-rechtsanwaelte.de/ The District Court of Koblenz opened bankruptcy proceedings against Dieler & Treppke Heizung-Sanitar GmbH on Jan. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dieler & Treppke Heizung-Sanitar GmbH Ohlenfeldstrasse 7 56154 Boppard-Buchholz Germany FEIL WARENHANDEL: Claims Registration Period Ends March 5 --------------------------------------------------------- Creditors of Feil Warenhandel GmbH have until March 5, 2008, to register their claims with court-appointed insolvency manager Gerhard Fichter. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Heilbronn Hall 4 Ground Floor Rollwagstr. 10a 74072 Heilbronn 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: Gerhard Fichter Uhlandstrasse 4 74072 Heilbronn Germany Tel: 07131/888666 Fax: 07131/888667 The District Court of Heilbronn opened bankruptcy proceedings against Feil Warenhandel GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Feil Warenhandel GmbH Attn: Hans Feil, Manager Untere Halde 10 74257 Untereiesesheim Germany HM FACHMARKTE: Claims Registration Period Ends March 10 ------------------------------------------------------- Creditors of HM Fachmarkte GmbH i.L. have until March 10, 2008, to register their claims with court-appointed insolvency manager Alexander Kaesebier. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.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 Hildesheim Hall 124 Main Building Kaiserstrasse 60 31134 Hildesheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Alexander Kaesebier Grothstr. 2 31787 Hameln Germany Tel: 05151-821252 Fax: 05151-821253 The District Court of Hildesheim opened bankruptcy proceedings against HM Fachmarkte GmbH i.L. on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HM Fachmarkte GmbH i.L. Attn: Dr. Susanne Rauth, Manager Herbert-Quandt-Str. 8 31135 Hildesheim Germany HOLZBISCHOFF GMBH: Claims Registration Period Ends March 11 ----------------------------------------------------------- Creditors of holzbischoff gmbh have until March 11, 2008, to register their claims with court-appointed insolvency manager Thomas Linse. Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Coburg Meeting Hall K First Floor Coburg 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: Thomas Linse Rosenauer Str. 22 96450 Coburg Germany Tel: 09561/80340 Fax: 09561/803434 The District Court of Coburg opened bankruptcy proceedings against holzbischoff gmbh on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: holzbischoff gmbh Industriestr. 7 96484 Meeder Germany IKB DEUSTCHE: German Government Pioneers EUR1.5 Billion Bail-Out ---------------------------------------------------------------- The German government has decided to infuse EUR1.5 billion in fresh capital into IKB Deutsche Industriebank AG, various reports say, citing government officials. According to Thomson Financial, Finance Minister Peer Steinbrueck said the government pledged to provide EUR1 billion of the rescue fund, while the local banking industry will furnish EUR500 million. "An insolvency of IKB would have had unforeseeable consequences on the German financial market," Mr. Steinbrueck was quoted by the Financial Times as saying. Mr. Steinbrueck, however, said Germany will not provide "unlimited support" to IKB. "We have agreed to do everything to ensure that IKB can stay in business," Economy Minister Michael Glos was quoted by Bloomberg News as saying. "Part of the agreement is an appeal to banks to make their own contribution to help create the preconditions which would enable us to keep IKB alive." "There have been talks with third parties," Thomas Steg, spokesman for Chancellor Angela Merkel, was quoted by Bloomberg as saying. As reported in the TCR-Europe on Feb. 14, 2008, State-owned KfW Bankengruppe may issue a convertible bond on its 31% stake in Deutsche Post World Net AG to raise EUR1 billion in fresh funds for capital-depleted IKB, in which KfW holds a 37.8% stake. IKB is reportedly needing up to EUR2 billion in fresh capital, EUR500 million of which is needed in the short term. KfW may have to bail out IKB for the third time after the bank's other shareholders refused to finance the company's restructuring. KfW had agreed in July 2007 to take over all of IKB's obligations related to Rhineland Funding when the vehicle's commercial paper couldn't be sold to investors following the U.S. subprime crisis. In December 2007, a KfW-led banking pool agreed to cover US$520 million in risks for IKB, which brought the cost of the rescue to EUR6.15 billion. IKB had notified Bundesbank and BaFin that it could face more liquidity problems if it fails to secure necessary financing. IKB warned in September 2007 that it may post EUR700 million in losses for fiscal year ending March 31, 2008. About IKB Deutsche Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Jan. 25, 2008, Moody's Investors Service downgraded the bank financial strength rating of IKB Deutsche Industriebank to E+ from D-. The outlook on the BFSR is now developing. As reported in the TCR-Europe on Jan. 9, 2008, Fitch Ratings has upgraded IKB Deutsche Industriebank AG's Individual rating to 'E' from 'F'. The TCR-Europe also reported on Dec. 13, 2007, that Fitch Ratings downgraded the loan facilities provided by IKB Deutsche Industriebank AG and IKB International S.A. to Havenrock II Limited as: -- US$165,000,000 loan provided by IKB International: downgraded to 'CC/DR2' from 'BBB+' Outlook Negative; -- US$404,875,000 Facility C loan provided by IKB: downgraded to 'CC/DR2' from 'BBB+'; Outlook Negative; -- US$43,750,000 Facility B loan provided by IKB: downgraded to 'CC/DR2' from 'B+'; Outlook Negative; and -- US$11,375,000 Facility A loan provided by IKB: downgraded to 'CC/DR2' from 'CCC'; Outlook Negative. INTER OBJEKT: Claims Registration Period Ends March 11 ------------------------------------------------------ Creditors of Inter OBJEKT GmbH i.L. have until March 11, 2008, to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 1:30 p.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 Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt 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 Erfurt opened bankruptcy proceedings against Inter OBJEKT GmbH i.L. on Jan. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Inter OBJEKT GmbH i.L. Ziegelei 18 99091 Erfurt Germany IPAK GMBH: Claims Registration Ends March 11 -------------------------------------------- Creditors of ipak GmbH & Co. KG have until March 11, 2008, to register their claims with court-appointed insolvency manager Frank-Michael Rhode. Claims will be verified at 9:30 a.m. on April 24, 2008, at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Frank-Michael Rhode Graf-Moltke-Str. 62 28211 Bremen Germany Tel: 0421/3485212/213 Fax: 0421/341078 E-mail: info@rhode.de Web site: http://www.rhode.de/ The District Court of Bremen opened bankruptcy proceedings against ipak GmbH & Co. KG on Dec. 1, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ipak GmbH & Co. KG Karl-Buecher Str. 5 28307 Bremen Germany Attn: Andreas Karl-Heinz Kriese, Manager Mahndorfer Deich 10 28307 Bremen Germany LICH VERWALTUNGS: Claims Registration Period Ends March 3 --------------------------------------------------------- Creditors of Lich Verwaltungs- und Beteiligungs GmbH have until March 3, 2008, to register their claims with court-appointed insolvency manager Tim Schneider. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 13, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Giessen Hall 406 Building B Gutfleischstrasse 1 35390 Giessen 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: Tim Schneider Marktlaubenstrasse 9 35390 Giessen Germany Tel: 0641/93243-0 Fax: 0641/932-4350 The District Court of Giessen opened bankruptcy proceedings against Lich Verwaltungs- und Beteiligungs GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lich Verwaltungs- und Beteiligungs GmbH Attn: Michael Lich, Manager Giessener Strasse 15 35466 Rabenau Germany MICAS GMBH: Claims Registration Period Ends March 11 ---------------------------------------------------- Creditors of MICAS GmbH have until March 11, 2008, to register their claims with court-appointed insolvency manager Oliver Reichelt. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on March 18, 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 Weilheim i.OB Meeting Hall E 007 Waisenhausstr. 5 Weilheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Oliver Reichelt Ohmstr. 13/III 80802 Munich Germany Tel: 089/3838710 Fax: 089/338308 The District Court of Weilheim i.OB opened bankruptcy proceedings against MICAS GmbH on Jan. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MICAS GmbH Puetrichstr. 30-32 82362 Weilheim Germany MOEBEL-THATE AUGUST: Creditors' Meeting Slated for February 28 -------------------------------------------------------------- The court-appointed insolvency manager for Moebel-Thate August Thate GmbH & Co., Axel Gerbers will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:15 a.m. on Feb. 28, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Old Building Hall 50 Domsheide 16 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 11:15 a.m. on April 24, 2008, at: