/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080220.mbx 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 Wednesday, February 20, 2008, Vol. 9, No. 36 Headlines A U S T R I A GRAF & MUELLER: Claims Registration Period Ends April 8 HEDOC AUTOMOBIL: Claims Registration Period Ends March 18 KFZ-SCHADEN: Claims Registration Period Ends March 17 PEWA HANDEL: Claims Registration Period Ends March 27 PSM GASTROEVENT: Claims Registration Period Ends March 12 UBT BAU: Claims Registration Period Ends March 27 B E L A R U S BELAGROPROMBANK JSC: Moody's Places Bank FSR at E+ B E L G I U M MEGA BRANDS: Works with Intertek to Develop Ingestion Gauge SOLUTIA INC: Court Delays Ruling on Citigroup CEO's Depostion F R A N C E CHARLES JOURDAN: Receiver Inviting Bidders for Assets DELPHI CORP: Wants Bankruptcy Court to Keep Stay of ERISA Case RHODIA SA: Pascal Juery Appointed as President for Novecare SORT ET CHASLE: Undergoes Compulsory Liquidation THOMSON SA: Posts EUR23 Million Net Loss for 2007 THOMSON SA: Inks Joint Venture Agreement with NXP Semiconductors THOMSON SA: Moody's Puts Ratings Under Review & May Downgrade G E R M A N Y AMBRE GERMANYP: Claims Registration Period Ends March 15 AUTO KRUEGER: Claims Registration Period Ends March 4 BALZAT WERKZEUGMASCHINENFABRIK: Claims Filing Ends March 15 COLLECTION VIDEO: Claims Registration Ends March 20 DEMHARTER NATURSTEIN: Claims Registration Ends March 20 DHI GMBH: Claims Registration Period Ends March 18 FFH GMBH: Claims Registration Ends March 20 GRAND AZUR: Claims Registration Period Ends March 18 HS & S LOGISTIK: Claims Registration Period Ends March 3 RICH GERMANY: Claims Registration Period Ends February 27 RIEDIGER GMBH: Claims Registration Period Ends March 15 S & H GRAU: Creditors' Meeting Slated for March 6 TEN VERLAGS-UND: Creditors' Meeting Slated for February 29 UNITED FOODS: Claims Registration Period Ends March 3 * Fitch Says Interest Deduction Barrier Could Increase Defaults I R E L A N D SITEL WORLDWIDE: Moody's Gives Negative Outlook; Holds B2 Rating TRIVIRIX INTERNATIONAL: Creditors Must File Claims by March 17 I T A L Y ALITALIA SPA: Air France to Infuse EUR3 Billion in Three Years BERRY PLASTICS: Inks US$520MM Sr. Secured Bridge Loan Agreement BERRY PLASTICS: Posts US$31.3 Mln Net Loss in Qtr. Ended Dec. 29 GOODYEAR TIRE: Earns US$602 Million in 2007 K A Z A K H S T A N AUTO SERVER-2004: Proof of Claim Deadline Slated for March 18 DSK LINE LLP: Creditors Must File Claims by March 21 HAMKI LLP: Claims Filing Period Ends March 18 INVEST-STROYPROGRESS LLP: Creditors' Claims Due on March 25 KAZINCOM CENTRE: Claims Registration Ends March 21 PAVLODAR-STROYPOLUS LLP: Claims Deadline Slated for March 25 ROSBELTEKS LLP: Creditors Must File Claims by March 18 ROSSISKO-KAZAKHSTANSKAYA COMPANIYA: Claims Period Ends March 25 TECHNOSTROY & K LLP: Creditors' Claims Due on March 25 TENGIZ & K LLP: Claims Registration Ends March 21 K Y R G Y Z S T A N ATTANDR LLC: Creditors Must File Claims by March 7 CONTROL-LINE LLC: Claims Filing Period Ends March 7 STROYGRAD LLC: Claims Registration Ends March 7 L U X E M B O U R G EVRAZ GROUP: To Buy 51% of Delong Holdings from Best Decade R O M A N I A TIMKEN CO: To Hike Carbon & Alloy Tubing Prices on April 1 R U S S I A ATOLL OJSC: Creditors Must File Claims by March 28 BALASHOV-GRUZ-AVTO-TRANS: Creditors Must File Claims by March 28 CAUCASIA TOUR: Creditors Must File Claims by March 28 DON-XXI CJSC: Creditors Must File Claims by February 28 EVRAZ GROUP: To Buy 51% of Delong Holdings from Best Decade VIMPEL-COMMUNICATIONS: Unit Closes Golden Telecom Tender Offer KRASNOZNAMENSKOE OJSC: Creditors Must File Claims by March 28 MOBILE TELESYSTEMS: Buys Remaining 9% Stake in Mobilnye Sistemy OGK-5 OAO: Enel SpA Sees 60% Stake Following Tender Offer OGK-5 OAO: May Issue Bonds to Finance Operations PETERSBURG FRUIT: Creditors Must File Claims by March 28 ROSNEFT OIL: Plans 12-Year RUR600-Bln Investment to Hike Output SHELF AND CO: Creditors Must File Claims by February 28 SIBIRTELECOM OAO: Fitch Affirms Long-term IDR at 'B+ YUG-AGRO LLC: Creditors Must File Claims by February 28 * Fitch Says Liquidity Poses Constraint for Telecom Incumbents S E R B I A & M O N T E N E G R O * Fitch Says Kosovo Declaration Won't Affect Serbia's Ratings * S&P Says Kosovo Declaration Won't Affect Serbia's Ratings S W I T Z E R L A N D HARTMANN PEOPLECARE: Creditors Must File Claims by Feb. 27 LADERACH CONSULTING: Creditors Must File Claims by Feb. 28 RAMEX LLC: Creditors' Liquidation Claims Due by Feb. 27 RESTAURANT HIRSCHEN: Creditors Must File Claims by Feb. 28 ROHA HARTMANN: Creditors' Liquidation Claims Due by Feb. 27 SEMURA HANDEL: Creditors' Liquidation Claims Due by Feb. 28 THEBLUEBOX.CH LLC: Zug Court Starts Bankruptcy Proceedings T-CREATION BAU: Zurich Court Starts Bankruptcy Proceedings T U R K E Y TOPLU KONUT: Moody's Puts Local & Foreign Currency Rating at Ba3 U K R A I N E ALIGATOR LLC: Claims Filing Deadline Set February 29 BALTAZAR-CLASS LLC: Creditors Must File Claims by February 29 BIAS CJSC: Creditors Must File Claims by February 29 CAPITAL-PLUS LLC: Creditors Must File Claims by February 29 CHEMER DISTILLERY: Claims Filing Deadline Set February 29 EKO-SERVICE LLC: Creditors Must File Claims by February 29 INDUSTRIAL ELECTROEQUIPMENT: Creditors' Claims Due Feb. 29 INTELVID LLC: Creditors Must File Claims by February 29 MARIAGVA BSM: Creditors Must File Claims by February 29 MONTI LLC: Creditors Must File Claims by February 29 ZARIA LLC: Creditors Must File Claims by February 29 U N I T E D K I N G D O M 3CL REALISATIONS: Calls In Liquidators from Tenon Recovery AXIUM INT'L: Entertainment Partners Completes Acquisition CHALLENGER SYNDICATESHIPS: Appoints Begbies as Administrators CHRYSLER LLC: Court Denies Plea to Pull Out Tooling Equipment CLEAR CHANNEL: Expects CC Media Merger to Close by March 31 CLEAR CHANNEL: Sues to Compel Providence Equity to Close TV Deal CLEAR CHANNEL: Required by DOJ to Shed Off Radio Stations CLOCKWORX LTD: Taps PwC to Administer Assets ELVI INVESTMENTS: Hires Joint Administrators from Baker Tilly GLOBAL TRADER EUROPE: Opts for Administration Due to Deficit GLOBAL TRADER EUROPE: Smith & Williamson Named as Administrators INTELSAT LTD: S&P Chips Rating to B on Highly Leveraged Profile KRISPY KREME: Standard Pacific Divests 6.1% Stake in Company LIFEBACK CLINIC: Taps Liquidators from Tenon Recovery MONEY PARTNERS: Moody's Cuts Rating on EUR15 Mln Notes to Ba2 NEWARK FINANCE: Appoints Administrators from Ernst & Young NORTHERN ROCK: David Cameron Calls for Chancellor's Resignation NORTHERN ROCK: Temporary Public Ownership Right Move, PM Says NORTHERN ROCK: Rescue Plans Carry Risks, Ron Sandler Says NORTHERN ROCK: S&P Downgrades Preference Shares' Rating to C OWL VISUAL: Brings In Administrators from Vantis POWERHOUSE SAFETY: Hires Joint Administrators from KPMG QUEBECOR WORLD: Wants to Pay Accrued Prepetition Commissions QUEBECOR WORLD: U.S. Trustee Revises Creditors' Committee QUEBECOR WORLD: Creditors' Panel Selects Akin Gump as Counsel RAVEN HEALTHCARE: Brings In Liquidators from Moore Stephens REED AUTOMOTIVE: Joint Liquidators Take Over Operations REFCO INC: Ex-CEO Phillip Bennett Admits Fraud Charges SMITH & FRANCIS: Taps Joint Administrators from Vantis SPIRIT AEROSYSTEMS: Inks Service Contract with Cathay Pacific TANNER KROLLE: Names Joint Administrators from Baker Tilly UNIT HEATING: Appoints Liquidators from Baker Tilly VANILLA SHOES: Hires Liquidators from Vantis VOGUE ESTATES: Claims Filing Period Ends April 8 VOGUE MARINE: Claims Filing Period Ends April 8 WHISTLEJACKET CAPITAL: S&P Junks Issuer Credit Rating WHITE PINE: S&P Downgrades Rating on Capital Notes to CC * Fitch Says European CMBS Performance Remained Stable in 2007 ********* ============= A U S T R I A ============= GRAF & MUELLER: Claims Registration Period Ends April 8 ------------------------------------------------------- Creditors owed money by LLC Graf & Mueller Immobilienentwicklung (FN 281690a) have until April 8, 2008, to file written proofs of claim to court-appointed estate administrator Valentin Piskernik at: Mag. Valentin Piskernik Hochstrasse 31 2380 Perchtoldsdorf Austria Tel: 01/86 93 888 Fax: 01/869 16 60 33 E-mail: anwalt@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on April 22, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Giesshuebl bei Wien, Austria, the Debtor declared bankruptcy on Jan. 30, 2008 (Bankr. Case No. 11 S 14/08g). HEDOC AUTOMOBIL: Claims Registration Period Ends March 18 --------------------------------------------------------- Creditors owed money by LLC Hedoc Automobil Handel (fka LLC Auto Docsek U.S.- Automobil Import) (FN 112924s) have until March 18, 2008, to file written proofs of claim to court- appointed estate administrator Eva-Maria Bachmann-Lang at: Dr. Eva-Maria Bachmann-Lang c/o Dr. Christian Bachmann Opernring 8 1010 Vienna Austria Tel: 512 87 01 Fax: 513 82 50 E-mail: bachmann.rae@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on April 1, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 28, 2008 (Bankr. Case No. 4 S 13/08a). Christian Bachmann represents Dr. Bachmann-Lang in the bankruptcy proceedings. KFZ-SCHADEN: Claims Registration Period Ends March 17 ----------------------------------------------------- Creditors owed money by Kfz-schaden-verein have until March 17, 2008, to file written proofs of claim to court- appointed estate administrator Stefan Jahns at: Mag. Stefan Jahns c/o Mag. Beate Holper Gonzagagasse 15 1010 Vienna Austria Tel: 532 17 11 Fax: 532 17 11 11 E-mail: kanzlei@jahns.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on March 31, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 29, 2008 (Bankr. Case No. 3 S 9/08f). Beate Holper represents Mag. Jahns in the bankruptcy proceedings. PEWA HANDEL: Claims Registration Period Ends March 27 ----------------------------------------------------- Creditors owed money by LLC Pewa Handel (FN 269796i) have until March 27, 2008, to file written proofs of claim to court- appointed estate administrator Martina Simlinger-Haas at: Dr. Martina Simlinger-Haas Reisnerstrasse 31 1030 Vienna Austria Tel: 713 99 46 Fax: 713 99 46 22 E-mail: ra.reisnerstr31@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on April 10, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 29, 2008 (Bankr. Case No. 6 S 11/08x). PSM GASTROEVENT: Claims Registration Period Ends March 12 --------------------------------------------------------- Creditors owed money by LLC Psm Gastroevent (fka LLC W. M. Nossal) (FN 72148a) have until March 12, 2008, to file written proofs of claim to court-appointed estate administrator Erwin Senoner at: Dr. Erwin Senoner Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@just.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on March 23, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 29, 2008 (Bankr. Case No. 38 S 6/08x). UBT BAU: Claims Registration Period Ends March 27 ------------------------------------------------- Creditors owed money by LLC Ubt Bau (FN 291282g) have until March 27, 2008, to file written proofs of claim to court- appointed estate administrator Stephan Riel at: Dr. Stephan Riel c/o Dr. Johannes Jaksch Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on April 3, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 28, 2008 (Bankr. Case No. 5 S 10/08t). Johannes Jaksch represents Dr. Riel in the bankruptcy proceedings. ============= B E L A R U S ============= BELAGROPROMBANK JSC: Moody's Places Bank FSR at E+ -------------------------------------------------- Moody's Investors Service assigned these global scale ratings to Belagroprombank: -- an E+ Bank Financial Strength Rating, -- Ba1 long-term and Not-Prime short-term local currency deposit ratings, and -- B2 long-term and Not Prime short-term foreign currency deposit ratings. All of the bank's ratings carry a stable outlook. Belagroprombank's E+ BFSR, which translates into a Baseline Credit Assessment of B2, is underpinned by the bank's strong market position as the country's second-largest bank by assets, capital and retail deposits, as well as good capital adequacy, a low level of delinquent loans and acceptable profitability. The rating is constrained by the bank's fairly weak corporate governance due to the high level of government interference in the bank's business, as well as a very large exposure to the agricultural sector. The bank's Ba1/Not-Prime long-term/short-term local currency deposit ratings factor in a very high probability of systemic support in the event of a stress situation given: (a) the bank's 90.8% direct ownership by the Belarus government, (b) its important role in realizing the government programs for financing agricultural sector, which is a priority industry for Belarus, as well as (c) the bank's strong position in the country's banking system, represented by its 19% share of total assets and 11% share of retail deposits at the end of Q3 2007. As a result, this rating receives a four-notch uplift from the bank's B2 Baseline Credit Assessment. Belagroprombank's B2 long-term foreign currency deposit rating is constrained by the foreign currency country ceiling for Belarus. About 55% of Belagroprombank's loan portfolio is attributable to Belarus' agricultural sector, which is a priority industry for the country. Most of the loans to this sector are provided as part of government programmes and are partly funded by the government via general capital contributions and deposits. Although the performance of agricultural loans has been quite strong over the past several years, the underwriting standards for such loans might not fully capture all key risks inherent in the relevant borrowers' (collective farms) business model. According to Moody's, Belagroprombank's BFSR could be upgraded if the bank significantly diversifies its loan book outside the agricultural sector and demonstrates good asset quality and profitability. Conversely, downward rating pressure on the bank's BFSR could arise from a significant weakening in asset quality and/or increasing borrower concentration. Belagroprombank's local currency deposit rating is expected to change in tandem with the bank's BFSR. The bank's foreign currency deposit rating could be upgraded in the event of an upgrade of Belarus' foreign currency deposit ceiling. However, a downgrade is unlikely over the medium term as it is already constrained by that ceiling. Based in Minsk, Belarus, Belagroprombank reported total IFRS consolidated assets, shareholders' equity and net income of US$2.89 billion, US$514 million and US$53.8 million, respectively, at the end of Q3 2007 (US$2.17 billion, US$408 million and US$43.5 million, respectively, at year-end 2006). ============= B E L G I U M ============= MEGA BRANDS: Works with Intertek to Develop Ingestion Gauge ----------------------------------------------------------- MEGA Brands Inc. has teamed up with Intertek to develop a first of its kind ingestion gauge, and that they will unveil a new line of magnetic construction toys at New York Toy Fair. The announcements are being made jointly since the partnership between MEGA Brands and Intertek on the new ingestion gauge led to the development of MEGA Brands' latest magnetic construction system, MagNext. This new safety gauge will ensure that MEGA Brands' magnetic construction system exceeds all current magnetic toy safety standards. Intertek's Risk Analysis and Management team used 20 years worth of research and data from 47 children's hospitals around the world focusing on the size, shape, and consistency of ingested objects along with the outcome, to recommend MEGA Brands' sophisticated gauge criteria. The result is MagNext, a product line that meets a strict safety criteria based on size, shape, weight and design. MagNext will set a new standard in the toy industry, both in terms of safe magnetic play and innovation in the magnetic construction category. This revolutionary system has been designed to have no magnetic parts that can be swallowed. MagNext will allow for the safest possible magnetic play and will make it possible for children to create bigger, stronger and faster builds. "We are dedicated to the mission of developing a magnetic construction system with no small parts that contain magnets," says MEGA Brands President and Chief Executive Officer, Marc Bertrand. "Magnets in toys provide children with magical play possibilities and, as the leader in the category, we are committed to making it the safest play experience possible." The design of the core MagNext pieces has been tested and analyzed by Intertek. In addition to leading the way in safety with the new ingestion test, the manufacturing process for these parts has improved. The magnets are now insert-molded into the plastic parts. "We're proud to say that we worked with MEGA Brands to help them achieve their ambitious goal of developing a new zero design defects program that will exceed the highest safety standard in the toy industry," expressed Intertek Vice-President, Gene Rider. About Intertek Intertek -- http://www.intertek.com/-- is an international provider of quality and safety services to a wide range of global and local industries. The company has the experience, expertise, resources and global reach to support its customers through its extensive network of laboratories and offices and over 20,000 people in more than 100 countries around the world. About MEGA Brands MEGA Brands Inc. (TSE: MB) -- http://www.megabrands.com/-- designs, manufactures and markets high quality toys and stationery products. Headquartered in Montreal, the company has approximately 4,500 employees with offices, manufacturing facilities or distribution centers in Belgium, United Kingdom, Germany, France, Spain, Mexico, Australia, among others. The Corporation's products are sold in over 100 countries. * * * As reported in the Troubled Company Reporter on Jan. 28, 2008, Standard & Poor's Ratings Services lowered its corporate credit and bank loan ratings on Mega Brands Inc. to 'B' from 'B+'. The ratings remain on CreditWatch with negative implications, where they were placed Nov. 9, 2007. The '3' recovery rating on the bank loan is unchanged. SOLUTIA INC: Court Delays Ruling on Citigroup CEO's Depostion ------------------------------------------------------------- The Hon. Prudence Carter Beatty of the U.S. Bankruptcy Court in the Southern District of New York has delayed a decision on the deposition of Citigroup Inc. CEO Vikram Pandit over the bank's decision to back out from its commitment to fund the company's US$2 billion exit financing, The Associated Press reports. Judge Beatty said Solutia's attorneys need to talk to executives at Goldman Sachs Group Inc. and Deutsche Bank AG before she rules on whether Mr. Pandit should be deposed. "I'm still a little uncertain whether Pandit is the person who has actual knowledge that would be useful in this case," Judge Beatty was quoted by AP as saying. On Oct. 31, 2007, Solutia received a fully underwritten commitment for US$2 billion in exit financing from Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P. and Deutsche Bank Securities Inc., who would act as joint lead arrangers and joint bookrunners for the exit facility. Solutia would use the loan to pay certain creditors upon its emergence from Chapter 11 and for the ongoing operations of the company after emergence. The exit financing package includes a US$400 million senior secured asset-based revolving credit facility, a US$1.2 billion senior secured term loan facility, and a US$400 million senior unsecured bridge facility. Denial "I did not make the decision personally and have no personal knowledge of how that decision was reached," Mr. Pandit said in an affidavit. Solutia said in court documents that a Citigroup lawyer told the company's financial adviser Todd Snyder of Rothschild Inc. that the Mr. Pandit made the decision to back out from the deal, AP relates. J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, denied naming Mr. Pandit as the decision- maker, AP says. In an affidavit, Mr. Milmoe recalled telling Mr. Snyder that the withdrawal "was not a casual or ad hoc decision by Citi." Mr. Milmoe added that though Mr. Pandit's name was mentioned during the conversation, he doesn't know how high up the Citigroup chain of command the decision was made. Judge Beatty said it's "unclear" if the conversation has occurred. "Maybe he thought he heard something he didn't hear," Judge Beatty was quoted by AP as saying. * * * 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. * * * 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. =========== F R A N C E =========== CHARLES JOURDAN: Receiver Inviting Bidders for Assets ----------------------------------------------------- The official receiver for Charles Jourdan, in inviting investors to bid on the company's assets, the Financial Times Ltd. reports citing a report by Florentin Collomp of Le Figaro. Included in the assets to be sold at an auction are: -- the brand, -- industrial equipment, -- some 20,000 pairs of footwear, -- the commercial leases of the company's shops, and -- foreign subsidiaries. According to the report, bids for the all of the company's assets have also been offered. The receiver, the report adds, will have until mid-March 2008 to study the offers. Headquartered in Romans Sur Isere, France, Charles Jourdan -- http://www.charles-jourdan.fr/-- manufactures luxury footwear. As reported in the TCR-Europe, the commercial court in Romans- sur-Isere placed Charles Jourdan into liquidation on Dec. 17, 2007, after U.S. firm Omniscent withdrew its offer to acquire the company's assets. The court placed Charles Jourdan in compulsory administration on Sept. 12, 2007, after it filed for redressment judiciaire, the French equivalent of Chapter 11 bankruptcy protection, for the second time. The company first filed for bankruptcy on Aug. 22, 2005. Avendis and Finaluxe bought the company on Nov. 2, 2005. DELPHI CORP: Wants Bankruptcy Court to Keep Stay of ERISA Case -------------------------------------------------------------- Delphi Corporation asks the U.S. Bankruptcy Court for the Southern District of New York to deny a request by three former employees to allow them to commence a lawsuit against Delphi under the Employee Retirement Income Security Act. Jimmy Mueller, David Gargis, and Keith Livingston want the automatic stay under Section 362 of the Bankruptcy Code lifted so that they could pursue claims against Delphi in the U.S. District Court for the Northern District of Alabama. Section 362 bars parties from filing lawsuits against companies undergoing Chapter 11 reorganization. Messrs. Mueller, Gargis, and Livingston said they agreed to be transferred from being hourly employees to salaried employees because certain high level managers made a promise that the employees could retransfer to hourly employment at any any time. They were also assured that they would not lose years of service as hourly employees, hence their pension benefits would not be affected. They sought to go back to being hourly employees, but the Debtor refused to allow the transfers. According to Delphi, Messrs. Mueller, Gargis and Livingston are current or former non-degreed quality reliability engineers employed at Delphi's production facility in Athens, Alabama. They sought to return to hourly-employee status so that they may participate in one of the special hourly attrition programs negotiated by the UAW, Delphi, and General Motors Corp. "Delphi was decreasing, not increasing, the hourly workforce, and was not willing to incur increased incentive attrition program costs or to hire three replacements for the three salaried positions," John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, explains. Delphi asserts that it has sole discretion to determine whether regular, full-time salaried employees will be transferred to hourly status. "The lawsuit that the [Messrs. Mueller, Gargis, and Livingston] are contemplating is precisely the kind of postpetition litigation against a debtor that the automatic stay was intended to preclude," Mr. Butler contends. "As a threshold matter, [Messrs. Mueller, Gargis, and Livingston] have failed to carry their burden to provide an initial showing that cause exists under [Section 362(d)(1) of the Bankruptcy Code] to lift the automatic stay . . . [Messrs. Mueller, Gargis, and Livingston] have offered only a series of unsupported conclusory pronouncements," he argues. In the complaint they propose to file in the Alabama District Court, the three employees seek a court order that allows each of them the same benefits to which hourly employees are allowed and have been allowed since the date of their requests for retransfer. Messrs. Mueller, Gargis, and Livingston's sought benefits include those provided under the 2006 UAW-GM-Delphi Special Attrition Programs or the 2007 program provided in the June 22, 2007, memorandum of understanding among the UAW, Delphi, and GM, Mr. Butler notes. The Bankruptcy Court, however, has retained exclusive jurisdiction over the UAW Settlement Agreement and matters related thereto. Thus, the Bankruptcy Court is the only forum in which the Messrs. Mueller, Gargis, and Livingston may properly file their Draft Complaint, Mr. Butler asserts. Delphi asks the Bankruptcy Court to deny Messrs. Mueller, Gargis, and Livingston's request. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As previously reported in the Troubled Company Reporter-Europe, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. Standard & Poor's Ratings Services in the meantime said it expects to assign its 'B' corporate credit rating to Delphi upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. RHODIA SA: Pascal Juery Appointed as President for Novecare ----------------------------------------------------------- Rhodia S.A. appointed Pascal Juery as president of the company's Novecare Enterprise. Prior to his appointment Mr. Juery was the group purchasing vice president, Jose Matias succeeded this function. Mr. Juery and Mr. Matias are members of Rhodia's executive committee. Rhodia Novecare serves selected consumer care and industrial market segments and holds leading positions in the surfactants, phosphorus derivatives, natural polymers, synthetic polymers and monomers technologies, and sovents. Growth is driven by innovation, customer intimacy and global reach. Rhodia Novecare's areas of expertise are protection, surface modification, active delivery and improvement of formulations and processes. the enterprise has global sales of EUR945 million. About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. The group generated sales of EUR4.8 billion in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As of Feb. 19, 2008, Rhodia S.A. carries Moody's long-term corporate family rating of Ba3 and senior unsecured debt rating of B1 with positive outlook. The company also carries Standard & Poor's BB- long-term foreign and local issuer credit ratings, and B short-term foreign and local issuer credit ratings. The ratings outlook is stable. Fitch Ratings assigned long-term issuer default rating at BB- and senior unsecured debt rating at BB- with outlook positive. SORT ET CHASLE: Undergoes Compulsory Liquidation ------------------------------------------------ Sort et Chasle has entered compulsory liquidation, the Financial Times Ltd. reports citing Les Echos. The company will continue to be operational for the next three months, the report adds. Based in Nantes, France, Sort et Chasle is a plaster specialist. The company has a turnover of EUR7 million annually. THOMSON SA: Posts EUR23 Million Net Loss for 2007 ------------------------------------------------- Thomson S.A. reported that for 2007, net revenues for the Group was EUR5,630 million compared to EUR5,781 million in 2006. Of this total, Thomson's Core Business contributed EUR5,620 million compared to EUR5,747 million in 2006. Currency movements, principally the weaker US$, decreased Core Business revenues for the year by EUR247 million. Core Business revenues for the year excluding currency movements increased 2.1% year-on-year. Perimeter effects from 2007 acquisitions were immaterial. A 3Q06 acquisition in Network Services contributed EUR53 million to Services Division revenues in 2007, compared to EUR14 million in 2006. Core Business EBIT for 2007 was EUR346 million (2006, ?504 million), representing a Core Business EBIT margin of 6.2%. This reflected notably a higher level of restructuring costs in the Services Division and sharply lower profitability in the Systems Division: in particular the Broadcast & Networks activities were loss-making in 2007. Research and development expenditure charged in the Core Business (net of external funding) rose slightly from EUR279 million for 2006 to EUR288 million for 2007. Cost and liability reduction programs focused on restructuring, particularly in DVD Services, and on post-retirement obligations. Restructuring charges in the Core Business totaled negative EUR85 million for the year compared to negative EUR36 million in 2006, of which negative EUR71 million was in the Services Division. During 2007 the Group continued to implement the realignment of medical and healthcare plans begun in 2006. The actuarial liability for post-retirement obligations on the Group's balance sheet reduced by EUR169 million to EUR403 million, and a gain of EUR63 million was credited to EBIT from continuing operations, of which EUR13 million was credited to Core Business EBIT (mainly in the Systems Division) and EUR50 million to Other continuing operations. With the benefit of this credit, Other continuing operations recorded a profit of EUR3 million before tax and financial result in 2007 compared to EUR23 million in 2006. Overall, the Group's consolidated profit from continuing operations before tax and financial result reached EUR349 million in 2007 as compared to EUR527 million in 2006. Other Highlights -- A slow fourth quarter for revenues limited growth in 2007 Core Business revenues to 2.1% at constant currency and impacted 2007 Core Business EBIT which came in at EUR346 million -- Core Business free cash flow for 2007 was robust at EUR387 million, leading to a significant improvement in net Group operating and investing cash flow to a net inflow of EUR142 million in 2007 from an outflow of EUR51 million in 2006 -- Net debt reduced by EUR113 million and aggregate net financial liabilities by EUR282 million compared to end- 2006 -- A net loss of EUR23 million for the full year - following exit from AVA businesses -- Board proposes a dividend of EUR0.33 -- Following the exit from the AVA businesses in December 2007, the Group will revert to a split Chairman/Chief Executive Officer structure, with Frank E. Dangeard as Chairman. -- Group focus for 2008 is on cash generation and cost reduction, whilst pursuing opportunities for profitable organic growth. About Thomson Headquartered in Paris, France, Thomson S.A. Euronext Paris: 18453; NYSE: TMS) -- http://www.thomson.net/-- (provides technology, services, and systems to the Media, Entertainment & Communications players - content creators, content distributors and broadcasters - and supports them in order to help them to improve their commercial offers and their performance in a rapidly changing technology environment. THOMSON SA: Inks Joint Venture Agreement with NXP Semiconductors ---------------------------------------------------------------- Thomson S.A. and NXP Semiconductors have signed a Memorandum of Understanding to combine their can tuner modules operations in a joint venture. Thomson will appoint the CFO of this new venture, while NXP will appoint the CEO. NXP and Thomson expect that the definitive joint venture agreements will be finalized and the transaction will close in the second quarter of 2008, subject to closing conditions, including social and regulatory approvals. "By combining their operations, NXP and Thomson create a business that has the scale and focus to be a long-term winner in the can tuner modules market," commented Christos Lagomichos, executive vice president and general manager of NXP's Home business unit. "The combination of these two highly complementary businesses will generate significant operational synergies that will free up resources to address new market opportunities for RF modules. At the same time the deal will enable NXP to focus the Home business unit on Digital TV, Set Top Box and silicon tuner activities." "Digital can tuners remain strategic components at a time when broadcast and broadband distribution infrastructures look to advanced delivery technologies such as DVB-S2, DVB-T, DVB-H and new cable modulation technologies," said Thomson CTO Jean- Charles Hourcade. "This combination will benefit our customers as the digital terrestrial roll-out accelerates in the US and in Europe." About NXP NXP Semiconductors - http://www.nxp.com/-- is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of EUR 5 billion in 2006. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. About Thomson Headquartered in Paris, France, Thomson S.A. Euronext Paris: 18453; NYSE: TMS) -- http://www.thomson.net/-- (provides technology, services, and systems to the Media, Entertainment & Communications players - content creators, content distributors and broadcasters - and supports them in order to help them to improve their commercial offers and their performance in a rapidly changing technology environment. THOMSON SA: Moody's Puts Ratings Under Review & May Downgrade ------------------------------------------------------------- Moody's Investor's Service placed the Baa3 long-term issuer rating for Thomson S.A. and the Ba2 rating for Thomson's perpetual junior subordinated bonds under review for possible downgrade. Oliver Giani, Senior Analyst at Moody's said: "In fiscal year 2007, Thomson has failed to meet Moody's financial criteria for a Baa3 rating. Whereas the company was able to reduce net debt by approximately EUR200 million, the generation of retained cash flow fell materially behind expectations. The ratio of retained cash flow over net debt as defined by Moody's, one key debt protection metric, fell from mid year last-twelve-months level of 16% further to an estimated level of 12% compared to a minimum of 20% set for this metric. Moody's had expected that Thomson's fiscal year 2007 would set the stage for a substantial turnaround of performance, towards financial metrics that would better reflect Thomson's elevated business risk profile compared to the average industrial company. Such a positive trend is not apparent in the recent results and the potential for a strong upturn in 2008 will be the main focus of the rating review". The review process will consider management's strategy for stimulating growth in the business, for returning the loss making Broadcast & Networks operations to profitability, and for strengthening margins in the other operations through further cost reductions. Moody's will also focus on the sustainability of Thomson's business model through the digital transformation of media content and delivery and consequently on the company's ability to deliver a sustained increase in cash-flow and debt reduction to bring the core credit metrics more in line with Moody's expectation for a Baa3 investment grade rating. On Review for Possible Downgrade: Issuer: Thomson S.A. * Issuer Rating, Placed on Review for Possible Downgrade, currently Baa3 * Junior Subordinated Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Ba2 Outlook Actions: Issuer: Thomson S.A. * Outlook, Changed To Rating Under Review From Stable The last rating action for Thomson has been on September 25, 2007, when Moody's downgraded the issuer rating to Baa3 from Baa2 and the rating on Thomson's perpetual junior subordinated bonds to Ba2 from Ba1. Headquartered in Paris, France, Thomson is a leading provider of technology, systems and service solutions for integrated media and entertainment companies operating in three business segments: Thomson's Services division offers end-to-end management of services for the media and entertainment industry, from finishing movie content (post-production) to content replication of film and DVD and distribution. The Systems division provides professional broadcasting and network equipment for TV stations and other network operators as well as broadband access products. The Technology division combines Thomson's research and exploitation of its patent portfolio through licensing programs. In fiscal year 2007 the company generated revenues from continuing operations of EUR5.6 billion. ============= G E R M A N Y ============= AMBRE GERMANYP: Claims Registration Period Ends March 15 -------------------------------------------------------- Creditors of Ambre Germany GmbH have until March 15, 2008, to register their claims with court-appointed insolvency manager Tobias Hoefer. Creditors and other interested parties are encouraged to attend the meeting at 2:20 p.m. on April 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Pforzheim Mannheimer Str. 17 75179 Pforzheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tobias Hoefer Soldnerstr. 2 68219 Mannheim Germany The District Court of Pforzheim opened bankruptcy proceedings against Ambre Germany GmbH on Jan. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ambre Germany GmbH Tunnelstr. 23 75172 Pforzheim Germany AUTO KRUEGER: Claims Registration Period Ends March 4 ----------------------------------------------------- Creditors of Auto Krueger & Co. GmbH have until March 4, 2008, to register their claims with court-appointed insolvency manager Cathleen Tetzel. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on April 3, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall 14 Justizzentrum Magdeburg Breiter Weg 203-206 39104 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Cathleen Tetzel Halberstadter Strasse 115 39112 Magdeburg Germany Tel: 0391-7276484 Fax: 0391-7276486 E-mail: t-s-insolvenzverwaltung@primacom.net The District Court of Magdeburg opened bankruptcy proceedings against Auto Krueger & Co. GmbH on Feb. 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto Krueger & Co. GmbH Seegrabenstr. 1 a 39326 Wolmirstedt Germany BALZAT WERKZEUGMASCHINENFABRIK: Claims Filing Ends March 15 ----------------------------------------------------------- Creditors of Balzat Werkzeugmaschinenfabrik GmbH have until March 15, 2008, to register their claims with court-appointed insolvency manager Hans-Gerd Jauch. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 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 Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Gerd Jauch Sachsenring 81 50677 Cologne Germany Tel: 0221/33660130 Fax: +492213366085 The District Court of Cologne opened bankruptcy proceedings against Balzat Werkzeugmaschinenfabrik GmbH on Jan. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Balzat Werkzeugmaschinenfabrik GmbH Zum Frenser Feld 1 50127 Bergheim Germany COLLECTION VIDEO: Claims Registration Ends March 20 --------------------------------------------------- Creditors of Collection Video und Mediastore Handels GmbH have until March 20, 2008 to register their claims with court- appointed insolvency manager Udo Feser. Claims set out in the insolvency manager's report will be verified at 11:35 a.m. on May 20, 2008 at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Udo Feser Uhlandstr. 165/166 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Collection Video und Mediastore Handels GmbH on Dec. 21, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Collection Video und Mediastore Handels GmbH Berliner Strasse 3O/31 10715 Berlin Germany DEMHARTER NATURSTEIN: Claims Registration Ends March 20 ------------------------------------------------------- Creditors of Demharter Naturstein GmbH & Co. KG have until March 20, 2008 to register their claims with court-appointed insolvency manager Werner Schneider. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 23, 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 Augsburg Meeting Hall 162 Alten Einlass 1 86150 Augsburg 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: Werner Schneider Eserwallstr. 1-3 86150 Augsburg Germany The District Court of Augsburg opened bankruptcy proceedings against Demharter Naturstein GmbH & Co. KG on Jan. 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Demharter Naturstein GmbH & Co. KG Attn: Ludwig Rif, Manager Humboldtstr. 13 86316 Friedberg Germany DHI GMBH: Claims Registration Period Ends March 18 -------------------------------------------------- Creditors of DHI GmbH have until March 18, 2008, to register their claims with court-appointed insolvency manager Stephan Schlegel. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 29, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.326 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Stephan Schlegel Hauptstrasse 336 65760 Eschborn Germany Tel: 06173/9394-0 Fax: 06173/9394-20 The District Court of Darmstadt opened bankruptcy proceedings against DHI GmbH on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DHI GmbH Egerlander Strasse 2 a 64319 Pfungstadt Germany FFH GMBH: Claims Registration Ends March 20 ------------------------------------------- Creditors of FFH GmbH Foelschnitzer Fussboden u. Estrichbau have until March 20, 2008 to register their claims with court- appointed insolvency manager Thomas Hofmann. Creditors and other interested parties are encouraged to attend the meeting at 1:05 p.m. on April 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof, 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 Hofmann Schleizer Str. 1 95111 Rehau Germany The District Court of Hof opened bankruptcy proceedings against FFH GmbH Foelschnitzer Fussboden u. Estrichbau on Jan. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FFH GmbH Foelschnitzer Fussboden u. Estrichbau Attn: Matthias Wiskott, Manager Hauptstr. 30 95182 Doehlau Germany GRAND AZUR: Claims Registration Period Ends March 18 ---------------------------------------------------- Creditors of Verwaltungsgesellschaft Grand Azur mbH have until March 18, 2008, to register their claims with court-appointed insolvency manager Peter-Alexander Borchardt. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on April 8, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter-Alexander Borchardt Deichstrasse 1 20459 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Verwaltungsgesellschaft Grand Azur mbH on Jan. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Verwaltungsgesellschaft Grand Azur mbH Attn: Dirk Leifert, Manager Grosse Elbstrasse 145c 22767 Hamburg Germany HS & S LOGISTIK: Claims Registration Period Ends March 3 -------------------------------------------------------- Creditors of HS & S Logistik GmbH Spedition have until March 3, 2008, to register their claims with court-appointed insolvency manager Joerg Nerlich. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on March 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 341 Third Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on March 28, 2008, at the same venue. The insolvency manager can be reached at: Dr. Joerg Nerlich Louise-Dumont-Str. 25 40211 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against HS & S Logistik GmbH Spedition on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HS & S Logistik GmbH Spedition Attn: Frank Schunk, Manager Ottostrasse 9 41540 Dormagen Germany RICH GERMANY: Claims Registration Period Ends February 27 --------------------------------------------------------- Creditors of Rich Germany GmbH have until Feb. 27, 2008, to register their claims with court-appointed insolvency manager Ulrich Pfeifer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The District Court of Nuremberg Meeting Hall 152/I Flaschenhofstr. 35 Nuremberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Pfeifer Am Stadtpark 2 90409 Nuremberg Germany Tel: 0911/999099-0 Fax: 0911/999099-50 The District Court of Nuremberg opened bankruptcy proceedings against Rich Germany GmbH on Jan. 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rich Germany GmbH Am Stadtpark 2 90409 Nuremberg Germany RIEDIGER GMBH: Claims Registration Period Ends March 15 ------------------------------------------------------- Creditors of Riediger GmbH have until March 15, 2008, to register their claims with court-appointed insolvency manager Dr. Martin Mildenberger. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 14, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Offenburg Hall 0.005 Hindenburgstr. 5 77654 Offenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Martin Mildenberger Bertha-von-Suttner-Str. 3 77654 Offenburg Germany The District Court of Offenburg opened bankruptcy proceedings against Riediger GmbH on Jan. 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Riediger GmbH hauptstr. 104 77652 Offenburg Germany S & H GRAU: Creditors' Meeting Slated for March 6 ------------------------------------------------- The court-appointed insolvency manager for S & H Grau GmbH, Boris A. Schmidt-Burbach will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on March 6, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Marburg/Lahn Hall 159 Universitatsstrasse 48 35037 Marburg/Lahn Germany The Court will also verify the claims set out in the insolvency manager's report at 11:00 a.m. on April 16, 2008, at the same venue. Creditors have until March 18, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Boris A. Schmidt-Burbach Fach 25 Wilhelmstrasse 17 35037 Marburg Germany Tel: 06421/30499-0 Fax: 06421/30499-20 The District Court of Marburg/Lahn opened bankruptcy proceedings against S & H Grau GmbH on Jan. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: S & H Grau GmbH Kirchberg 20 35085 Ebsdorfergrund Germany TEN VERLAGS-UND: Creditors' Meeting Slated for February 29 ---------------------------------------------------------- The court-appointed insolvency manager for Ten Verlags- und Vertriebsgesellschaft mbH,Joachim Voigt-Salus, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:25 a.m. on Feb. 29, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:25 a.m. on May 16, 2008, at the same venue. Creditors have until March 17, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Joachim Voigt-Salus Rankestrasse 33 10789 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Ten Verlags- und Vertriebsgesellschaft mbH on Jan. 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ten Verlags- und Vertriebsgesellschaft mbH Rankestrasse 33 10789 Berlin Germany UNITED FOODS: Claims Registration Period Ends March 3 ----------------------------------------------------- Creditors of United Foods Import & Export GmbH have until March 3, 2008, to register their claims with court-appointed insolvency manager Dietrich Hauser. Creditors and other interested parties are encouraged to attend the meeting at 10:45 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 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: Dietrich Hauser Edisonstrasse 19 74076 Heilbronn Germany Tel: 07131/64281-0 Fax: 07131/64281-28 The District Court of Heilbronn opened bankruptcy proceedings against United Foods Import & Export GmbH on Feb. 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: United Foods Import & Export GmbH Wilhelmstrasse 46 74074 Heilbronn Germany * Fitch Says Interest Deduction Barrier Could Increase Defaults --------------------------------------------------------------- Fitch Ratings said in a special report published Monday that the newly introduced interest deduction barrier on German commercial mortgage loans could increase the likelihood of a borrower defaulting. Until December 2007, interest expenses of corporations were fully deductible under the German corporate income tax regime. "The new rule could result in a lower post tax interest coverage ratio, increasing the risk of a borrower default," says Stefan Baatz, Director in Fitch's European Structured Finance Group. "However, due to the individual characteristics of each borrower structure the potential impact of the interest deduction barrier will vary on a case-by-case basis," adds Dr. Gabriele Herbst, Associate Director in Fitch's Structured Finance team in Frankfurt. The report focuses on how this tax change could affect borrowing SPVs involved in German CMBS transactions and outlines how it affects Fitch's analysis of CMBS transactions. The report entitled "Interest Deductions Barrier - Negative Impact on German Commercial Mortgage Loans?" is available on the agency's website http://www.fitchratings.com/ ============= I R E L A N D ============= SITEL WORLDWIDE: Moody's Gives Negative Outlook; Holds B2 Rating ---------------------------------------------------------------- Moody's Investors Service changed the outlook of Sitel Worldwide Corporation (B2 CFR) to negative from stable. The negative outlook underscores Sitel's weak liquidity position, which may require the company to seek relief in an available equity cure under its credit agreement from its shareholders. The negative outlook also reflects Moody's belief that despite the equity cure, the company's EBITDA cushion under its financial covenants (which are scheduled to step up/down quarterly over the next twelve months) will remain very tight, and a shortfall in the company's 2008 anticipated performance could require the company to seek further equity cure or other relief. These ratings are affirmed: -- Corporate family rating: B2 -- Probability of default rating: B3 -- US$85 million first lien revolving credit facility: B2, LGD-3, 35% -- US$675 million first lien term loan: B2, LGD-3, 35% Sitel's B2 corporate family rating reflects some on-going integration risk, liquidity constrained by financial covenants under the company's credit facility, break even to negative free cash flow, and moderate client concentration. The ratings are supported by the company's scale and position as one of the largest provider within the highly competitive call center outsourcing industry, and the favorable outlook for the call center outsourcing industry. Headquartered in Nashville, Tennessee, Sitel Worldwide Corp. -- http://www.sitel.com/-- is a customer care business process outsourcing vendor for voice services. It competes with larger multinational companies (i.e. EDS, Accenture, and IBM) and a host of like size companies (including Convergys, West, Teletech, and Sykes) in the customer care call center and business process outsourcing industry. The company has an approximate 80:20 ratio of on/near shore to off shore operating capacit and operates more than 155 locations in 27 countries, including Belgium, Brazil, Mexico, Ireland, the Philippines, among others. Sitel has pro forma LTM December 2007 revenues of approximately US$1.9 billion TRIVIRIX INTERNATIONAL: Creditors Must File Claims by March 17 -------------------------------------------------------------- Through an order of the High Court of Justice in Northern Ireland Chancery Division dated May 14, 2007, it is the intention of Tom Keenan and John Reid, as Joint Administrators of Trivirix International Limited, to declare and pay a dividend to creditors. The distribution will be made within four months of March 17, 2008. Creditors must submit their claims in writing by the March 17 deadline to: TRIVOL/TMK/JMWA Tom Keenan, Joint Administrator Deloitte & Touche LLP 19 Bedford Street Belfast, BT2 7EJ ========= I T A L Y ========= ALITALIA SPA: Air France to Infuse EUR3 Billion in Three Years -------------------------------------------------------------- Air France-KLM S.A. will inject EUR3 billion into Alitalia S.p.A. over six years should it acquire the Italian government's 49% stake in the financially troubled carrier, Costas Paris writes for the Wall Street Journal, citing the French carrier's vice-chairman Leo M. van Wijk. Mr. van Wijk told WSJ that Alitalia "needs new capital and it needs to be refleeted." The vice-chairman added that if a sale agreement is reached, Air France will also commence a buyout offer to acquire all shares at Alitalia and afterwards delist the Italian carrier. Mr. Van Wijk noted that any deal struck depends on the new Italian government and on whether it will support Alitalia's plan to downsize operations at Milan's Malpensa airport. "If the Malpensa hub is not significantly downsized, we don't see a reason for a deal," Mr. Van Wijk told WSJ. As reported in the TCR-Europe on Feb. 18, 2008, Air France-KLM will seek approval from the new Italian government chosen following the April 13-14, 2008, snap elections, for any agreement to acquire Italy's stake in Alitalia. "If the position of the next government is favorable for an agreement with Air France-KLM we will go ahead," Mr. Gourgeon was quoted by Radiocor as saying. "In the case it is not favorable, we will stop there." Air France managing director Pierre Henri Gourgeon that the exclusive talks may go beyond the April elections due to various procedural steps, Radiocor relates. The Forza Italia opposition party, headed by former Prime Minister Silvio Berlusconi and seen to win the upcoming election, said it will respect the possible sale of stake in Alitalia to Air France if it emerges as the victor. Forza Italia, however, would like the outgoing government, headed by Prime Minister Romano Prodi, to avoid an agreement and leave the decision to the next government. Alitalia and Air France-KLM SA have until mid-March to complete exclusive talks and present a final binding offer to the Italian government, which thereafter will decide whether to sell its stake to the French carrier. As previously reported in the TCR-Europe, Alitalia and Italy commenced exclusive sale talks with Air France-KLM. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. BERRY PLASTICS: Inks US$520MM Sr. Secured Bridge Loan Agreement --------------------------------------------------------------- Berry Plastics Corporation disclosed that it obtained a US$520.0 million bridge loan facility, pursuant to a Senior Secured Bridge Loan Credit Agreement which it entered into on Feb. 5, 2008, with Bank of America N.A., as administrative agent and collateral agent, and various lenders, to finance its purchase from Captive Holdings LLC of 100% of the outstanding capital stock of Captive Holdings Inc., the parent company of Captive Plastics Inc. Berry Plastics' obligations under the bridge facility are guaranteed by each of Berry Plastics' existing and future direct or indirect domestic subsidiaries that is a restricted subsidiary, subject to certain exceptions, and are secured by pledges of certain of the assets of Berry Plastics and such subsidiaries. The bridge facility contains negative covenants substantially identical to those in the indenture relating to Berry Plastics' existing second-priority notes, and contains affirmative covenants, representations and warranties and events of default substantially identical to those in Berry Plastics' existing term loan facility. The bridge facility matures on the one-year anniversary of the closing date thereof. On that date, provided that an event of default is not continuing with respect to Berry Plastics' existing term loan facility, revolving facility or second priority notes, and provided that no bankruptcy event of default is continuing with respect to the bridge facility, any outstanding bridge loans will convert into senior secured term loans, and loans thereunder that mature on the seventh anniversary of the closing date of the bridge facility. A full-text copy of the Senior Secured Bridge Loan Credit Agreement dated as of Feb. 5, 2008, is available for free at: http://researcharchives.com/t/s?2806 About Berry Plastics Headquartered in Evansville, Nebraska, Berry Plastics Corporation -- http://www.berryplastics.com/-- is a manufacturer and supplier of a diverse mix of rigid plastics packaging products focusing on the open top container, closure, aerosol overcap, drink cup and housewares markets. The company sells a broad product line to over 12,000 customers. Berry Plastics concentrates on manufacturing high quality, value-added products sold to marketers of institutional and consumer products. In 2004, the company created its international division as a separate operating and reporting division to increase sales and improve service to international customers utilizing existing resources. The international segment includes the company's foreign facilities and business from domestic facilities that is shipped or billed to foreign locations. Berry has 25 manufacturing facilities worldwide, including in Italy, England, and Hong Kong and more than 6,800 employees. * * * As reported in the Troubled Company Reporter-Europe on Feb. 14, 2008, Moody's Investors Service affirmed the B3 Corporate Family Rating of Berry Plastics Corporation and downgraded certain instrument ratings. The outlook is stable. BERRY PLASTICS: Posts US$31.3 Mln Net Loss in Qtr. Ended Dec. 29 ---------------------------------------------------------------- Berry Plastics Corp. reported a net loss of US$31.3 million for the thirteen weeks ended Dec. 29, 2007, versus a net loss of US$30.8 million in the comparable period of 2006. Net sales increased 8.0% to US$762.7 million for the first quarter of fiscal 2008 from US$703.6 million for the same quarter in fiscal 2007. This US$59.1 million increase is primarily the result of strong base business organic volume growth of 4.0% and 2.0% acquisition volume growth. Gross profit increased US$22.4 million to US$108.8 million for the first quarter of fiscal 2008 from US$86.4 million for the same quarter of fiscal 2007. Selling, general and administrative expenses increased US$7.3 million to US$81.8 million primarily as a result of a US$4.2 million increase in stock compensation expense, a US$4.1 million increase in amortization of intangible assets, and increased expenses as a result of the organic and acquisition volume growth partially offset by realization of synergies from the Berry Covalence Merger. Restructuring and impairment charges were US$3.5 million in the first quarter of fiscal 2008 primarily as a result of costs incurred associated with the plant consolidations within the flexible films segment. Other expenses increased from US$4.1 million in the first quarter of fiscal 2007 to US$13.0 million in the first quarter of fiscal 2008 primarily as a result of expenses associated with the integration of Old Covalence and the corresponding achievement of synergies. Net interest expense increased US$1.6 million to US$61.5 million primarily as a result of increased borrowings to finance the Rollpak acquisition. The company recorded an income tax benefit of US$19.7 million or an effective tax rate of 38.6%, which is a slight change from the income tax benefit of US$19.5 million or an effective tax rate of 37.1% in the prior quarter. At Dec. 29, 2007, the company's cash balance was US$21.8 million, and the company had unused borrowing capacity of US$297.2 million under its revolving line of credit. Balance Sheet At Dec. 29, 2007, the company's consolidated balance sheet showed US$3.90 billion in total assets, US$3.48 billion in total liabilities, and US$420.3 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the thirteen weeks ended Dec. 29, 2007, are available for free at http://researcharchives.com/t/s?2809 About Berry Plastics Headquartered in Evansville, Nebraska, Berry Plastics Corporation -- http://www.berryplastics.com/-- is a manufacturer and supplier of a diverse mix of rigid plastics packaging products focusing on the open top container, closure, aerosol overcap, drink cup and housewares markets. The company sells a broad product line to over 12,000 customers. Berry Plastics concentrates on manufacturing high quality, value-added products sold to marketers of institutional and consumer products. In 2004, the company created its international division as a separate operating and reporting division to increase sales and improve service to international customers utilizing existing resource. The international segment includes the company's foreign facilities and business from domestic facilities that is shipped or billed to foreign locations. Berry has 25 manufacturing facilities worldwide, including in Italy, England, and Hong Kong and more than 6,800 employees. * * * As reported in the Troubled Company Reporter-Europe on Feb. 14, 2008, Moody's Investors Service affirmed the B3 Corporate Family Rating of Berry Plastics Corporation and downgraded certain instrument ratings. The outlook is stable. GOODYEAR TIRE: Earns US$602 Million in 2007 ------------------------------------------- The Goodyear Tire & Rubber Company reported record sales for the fourth quarter and the full year of 2007. Goodyear's sales for 2007 were a record US$19.6 billion, a 5% increase over 2006 despite a 6.2% decline in tire unit volume. All four of the company's tire businesses outside of North America achieved all-time record annual sales during 2007. Segment operating income was US$1.2 billion, compared to US$712 million in 2006. Goodyear's income from continuing operations of US$139 million in 2007 compares to a 2006 loss of US$373 million. Including discontinued operations, Goodyear had 2007 net income of US$602 million, compared to a loss of US$330 million last year. Improvements in pricing and product mix of approximately US$639 million offset higher raw material costs, which increased 3.5%, or approximately US$195 million, compared to 2006. Revenue per tire increased 8% compared to 2006. Fourth Quarter 2007 Goodyear's fourth quarter 2007 sales were US$5.2 billion, an 11% increase compared with the 2006 quarter, offsetting lower volumes with higher prices and a richer product mix. The company estimates that a 12-week strike at its North American facilities in 2006 reduced fourth quarter 2006 sales by US$318 million. Improved pricing and product mix drove revenue per tire up 10% over the 2006 quarter. Lower volumes reflect weak winter tire sale demand in Europe and the company's exit from certain segments of the private label tire business in North America along with weak conditions in several key markets. Fourth quarter segment operating income was US$313 million in 2007. This compares to a segment operating loss of US$86 million in the strike-impacted 2006 period. Segment operating income benefited from improved pricing and product mix of US$119 million in the fourth quarter of 2007, which more than offset increased raw material costs of US$8 million. Favorable foreign currency translation positively impacted sales by US$315 million and segment operating income by US$45 million in the quarter. Gross margin was 19.4% for the 2007 quarter compared to 11.3% in last year's strike-impacted quarter. Fourth quarter 2007 income from continuing operations was US$61 million. This compares to a loss of US$310 million in the strike-impacted fourth quarter of 2006. Including discontinued operations, Goodyear had fourth quarter net income of US$52 million, compared to a net loss of US$358 million last year. Financial Position The company's balance sheet as of Dec. 31, 2007, showed total assets of US$17.2 billion, total liabilities of US$14.3 billion, and total shareholders' equity of US$2.9 billion. The company had total current assets of US$10.2 billion and total current liabilities of US$4.6 billion as of Dec. 31, 2007. At Dec. 31, 2007, it had US$3.4 billion in cash and cash equivalents as well as US$2.2 billion of unused availability under our various credit agreements, compared to US$3.9 billion and US$533 million, respectively, at Dec. 31, 2006. Cash and cash equivalents decreased primarily due to US$2.3 billion of repayments on its borrowings. In aggregate, we had credit arrangements of US$7.4 billion available at Dec. 31, 2007, of which US$2.2 billion were unused, compared to US$8.2 billion available at Dec. 31, 2006, of which US$533 million were unused. A full-text copy of Goodyear's annual and fourth quarter financial report for the period ended Dec. 31, 2007, is available fro free at http://ResearchArchives.com/t/s?280c Management's Comment "Our fourth quarter results show significant gains as we drive sales of our higher-margin premium product lines," said Robert J. Keegan, chairman and chief executive officer. "This is especially true in our emerging markets businesses in Eastern Europe, Asia and Latin America. In aggregate, these three businesses grew sales 20% and segment operating income 41% in the quarter," he said. "Excluding the impact of the strike, North American Tire's focus on innovative new products helped it achieve its highest full- year segment operating income since 2000," he said. "Our new product engine will provide additional growth opportunities in 2008 and beyond." Goodyear made further progress during the fourth quarter on its plan to achieve US$1.8 billion to US$2 billion in gross cost savings by the end of 2009. "We have now achieved more than US$1 billion in savings in 2006 and 2007 and clearly remain on target to reach our four-year goal," Mr. Keegan said. "During 2007, we also made substantial progress on improving our balance sheet with net debt decreasing more than US$2 billion," he said. "We remain on track to achieve our next stage financial metrics, which include an 8 percent segment operating income return on sales globally, a 5% segment operating income return on sales in North America and a target of 2.5 times debt- to-EBITDA." About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear's operations are located in Argentina, Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica, Peru, Russia, among others. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. The ratings still apply to date. =================== K A Z A K H S T A N =================== AUTO SERVER-2004: Proof of Claim Deadline Slated for March 18 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Auto Server-2004 insolvent. Creditors have until March 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabayev Str. 109-415 Petropavlovsk North Kazakhstan Kazakhstan DSK LINE LLP: Creditors Must File Claims by March 21 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP DSK Line insolvent. Creditors have until March 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Tolstoy Str. 74 Kostanai Kazakhstan HAMKI LLP: Claims Filing Period Ends March 18 --------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Hamki insolvent. Creditors have until March 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabayev Str. 109-415 Petropavlovsk North Kazakhstan Kazakhstan INVEST-STROYPROGRESS LLP: Creditors' Claims Due on March 25 ----------------------------------------------------------- LLP Construction Company Invest-Stroyprogress has declared insolvency. Creditors have until March 25, 2008, to submit written proofs of claims to: LLP Construction Company Invest-Stroyprogress Suvorov Str. 13 Pavlodar Kazakhstan KAZINCOM CENTRE: Claims Registration Ends March 21 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Kazincom Centre insolvent. Creditors have until March 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan PAVLODAR-STROYPOLUS LLP: Claims Deadline Slated for March 25 ------------------------------------------------------------ LLP Pavlodar-Stroypolus has declared insolvency. Creditors have until March 25, 2008, to submit written proofs of claims to: LLP Pavlodar-Stroypolus Severnaya Promzona Pavlodar Kazakhstan ROSBELTEKS LLP: Creditors Must File Claims by March 18 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Rosbelteks insolvent. Creditors have until March 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (3252) 52-02-36 8 (3252) 52-19-32 ROSSISKO-KAZAKHSTANSKAYA COMPANIYA: Claims Period Ends March 25 --------------------------------------------------------------- LLP Rossisko-Kazakhstanskaya Companiya has declared insolvency. Creditors have until March 25, 2008, to submit written proofs of claims to: LLP Rossisko-Kazakhstanskaya Companiya Aimanov Str. 50-66 140000, Pavlodar Kazakhstan TECHNOSTROY & K LLP: Creditors' Claims Due on March 25 ------------------------------------------------------ LLP Technostroy & K has declared insolvency. Creditors have until March 25, 2008, to submit written proofs of claims to: LLP Technostroy & K Lenin Str. 96 Stepnyak Enbekshildersky Akmola Kazakhstan TENGIZ & K LLP: Claims Registration Ends March 21 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Tengiz & K insolvent. Creditors have until March 21, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan =================== K Y R G Y Z S T A N =================== ATTANDR LLC: Creditors Must File Claims by March 7 -------------------------------------------------- LLC Attandr (INN 00104199810338) has declared insolvency. Creditors have until March 7, 2008 to submit written proofs of claim to: LLC Attandr Mamyrov Str. 86v Osh Kyrgyzstan Tel: (0-773) 42-20-16 CONTROL-LINE LLC: Claims Filing Period Ends March 7 --------------------------------------------------- LLC Control-Line has declared insolvency. Creditors have until March 7, 2008 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 28-29-79. STROYGRAD LLC: Claims Registration Ends March 7 ----------------------------------------------- LLC Construction Company Stroygrad has declared insolvency. Creditors have until March 7, 2008 to submit written proofs of claim. Inquiries can be addressed to (0-543) 86-09-70. =================== L U X E M B O U R G =================== EVRAZ GROUP: To Buy 51% of Delong Holdings from Best Decade ----------------------------------------------------------- Evraz Group S.A. has entered into a Share Purchase Agreement with Best Decade Holdings Limited and the shareholders of Best Decade, to acquire from Best Decade up to approximately 51% of the issued share capital of Delong Holdings Limited over an agreed period of time. This transaction is subject to anti-trust clearance by the Ministry of Commerce and the State Administration of Industry and Commerce of the People's Republic of China. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As of Nov. 20, 2007, Evraz Group carries Ba3 Corporate Family and Probability-of-Default ratings and B2 Senior Unsecured Debt rating from Moody's Investor Service. Moody's said the Outlook is Positive. Evraz also carries BB- Local and Foreign Issuer Credit ratings from Standard & Poor's. S&P said the Outlook is Positive. The company carries BB Issuer Default and Senior Unsecured ratings and B Short-Term IDR. Fitch said the Outlook is Stable. ============= R O M A N I A ============= TIMKEN CO: To Hike Carbon & Alloy Tubing Prices on April 1 ---------------------------------------------------------- The Timken Company will increase prices on carbon and alloy seamless mechanical tubing by up to 15 percent, depending on the size and product specification. This price increase is effective with shipments beginning on April 1, 2008. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * The Timken Company still carries Moody's Investors Service's Ba1 senior unsecured deb rating on US$300 million Medium Term Notes, Series A. =========== R U S S I A =========== ATOLL OJSC: Creditors Must File Claims by March 28 -------------------------------------------------- Creditors of OJSC Atoll have until March 28, 2008, to submit proofs of claim to: E. Malykhin Insolvency Manager Post User Box 5 GOS 6 Griboedova 3 390006 Ryazan Russia The Arbitration Court of Ryazan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A54-1875/2007-S20. The Court is located at: The Arbitration Court of Ryazan Pochtovaya Str. 43/44 Ryazan Russia The Debtor can be reached at: OJSC Atoll Building 27 Yuzhnyj Promuzel 6 390011 Ryazan Russia BALASHOV-GRUZ-AVTO-TRANS: Creditors Must File Claims by March 28 ---------------------------------------------------------------- Creditors of OJSC Balashov-Gruz-Avto-Trans (TIN 6440000732) have until March 28, 2008, to submit proofs of claim to: R. Perepletov Insolvency Manager Post User Box 1531 410000 Saratov Russia The Arbitration Court of Saratov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-9285B/07-8. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: OJSC Balashov-Gruz-Avto-Trans Balashov Saratov Russia CAUCASIA TOUR: Creditors Must File Claims by March 28 ---------------------------------------------------- Creditors of OJSC Caucasia Tour (TIN 010446688) have until March 28, 2008, to submit proofs of claim to: R. Khagundokov Insolvency Manager Post User Box 15 Krasnooktyabrskaya Str. 20 Maykop 385000 Adygeya Russia The Arbitration Court of Adygeya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A01-B-50-2007-11. The Court is located at: The Arbitration Court of Adygeya Krasnooktyabrskaya Str. 15 Maykop Adygeya Russia The Debtor can be reached at: OJSC Caucasia Tour Abakan Adygeya Russia DON-XXI CJSC: Creditors Must File Claims by February 28 ------------------------------------------------------- Creditors of CJSC Don-XXI have until Feb. 28, 2008, to submit proofs of claim to: G. Shirkin Temporary Insolvency Manager Office 317 Serafimovicha 58 344002 Rostov-na-Donu Russia The Arbitration Court of Rostov commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A53-143/08-S1-30. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: CJSC Don-XXI Druzhby Str. 63 Matveevo-Kurganskiy Rostov Russia EVRAZ GROUP: To Buy 51% of Delong Holdings from Best Decade ----------------------------------------------------------- Evraz Group S.A. has entered into a Share Purchase Agreement with Best Decade Holdings Limited and the shareholders of Best Decade, to acquire from Best Decade up to approximately 51% of the issued share capital of Delong Holdings Limited over an agreed period of time. This transaction is subject to anti-trust clearance by the Ministry of Commerce and the State Administration of Industry and Commerce of the People's Republic of China. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As of Nov. 20, 2007, Evraz Group carries Ba3 Corporate Family and Probability-of-Default ratings and B2 Senior Unsecured Debt rating from Moody's Investor Service. Moody's said the Outlook is Positive. Evraz also carries BB- Local and Foreign Issuer Credit ratings from Standard & Poor's. S&P said the Outlook is Positive. The company carries BB Issuer Default and Senior Unsecured ratings and B Short-Term IDR. Fitch said the Outlook is Stable. VIMPEL-COMMUNICATIONS: Unit Closes Golden Telecom Tender Offer -------------------------------------------------------------- OJSC Vimpel-Communications disclosed of the success of the tender offer by its indirect wholly owned subsidiary, Lillian Acquisition, Inc., for any and all of the outstanding shares of common stock of Golden Telecom, Inc. at a purchase price of US$105.00 per share in cash. Based on preliminary information from the depositary for the offer, as of the expiration of the offer at midnight on Feb. 15, 2008, stockholders had tendered and not withdrawn 36,533,255 shares of Golden Telecom common stock (including 1,239,567 shares delivered through notices of guaranteed delivery), representing approximately 90.5% of the outstanding shares of Golden Telecom's common stock. "We are very pleased that the overwhelming majority of Golden Telecom's stockholders have found this offer to be compelling," Mr. Alexander Izosimov, the Chief Executive of VimpelCom, said. "The transaction truly transforms VimpelCom into a leading integrated telecom operator in Russia and the CIS with established positions in rapidly growing broadband, data and mobile markets. We are looking forward to growing the combined business together with the management of Golden Telecom and to benefiting from our respective expertise and strengths. Indeed, we have already started planning our integration activities and are confident of realizing significant additional value for our shareholders." Lillian Acquisition has accepted for payment all shares of Golden Telecom common stock that were validly tendered during the initial offering period and will make payment to the depositary for the accepted shares promptly. Lillian Acquisition has elected to provide a subsequent offering period for all remaining shares of Golden Telecom common stock to permit stockholders who have not yet tendered their shares, due to technical difficulties in the tendering process or otherwise, the opportunity to do so. This subsequent offering period will commence immediately and will expire at 5:00 p.m., New York City time, on Tuesday, Feb. 26, 2008. All shares of Golden Telecom common stock properly tendered during the subsequent offering period will be accepted, and tendering stockholders will receive the same price of US$105.00 per share in cash. No shares of Golden Telecom common stock tendered during the initial offering period or the subsequent offering period may be withdrawn. Following the subsequent offering period, VimpelCom Finance B.V., a direct wholly owned subsidiary of VimpelCom, and Lillian Acquisition intend to effect a merger of Lillian Acquisition into Golden Telecom. In connection with the merger, all remaining Golden Telecom stockholders who did not tender their shares in the tender offer (other than those, if any, properly perfecting dissenters' rights) will receive the same US$105.00 per share in cash paid in the tender offer. About Golden Telecom Headquartered in Moscow, Russia, Golden Telecom Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The Company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including around 287 combined access points in Russia and other countries of the CIS. The Company offers cellular communication services in Kiev and Odessa, Ukraine. About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications (NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K- mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. * * * As of Oct. 8, 2007, OJSC Vimpel-Communication carries Ba2 Corporate Family, Probability-of-Default and Senior Unsecured Debt Ratings from Moody's Investors Service. The company also carries BB+ long-term corporate credit rating from Standard & Poor's Ratings Services. KRASNOZNAMENSKOE OJSC: Creditors Must File Claims by March 28 ------------------------------------------------------------- Creditors of OJSC Krasnoznamenskoe have until March 28, 2008, to submit proofs of claim to: A. Voroshilova Insolvency Manager Office 3 Profinterna Str. 39 Barnaul 656002 Altay Russia The Arbitration Court of Altay commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-5265/07-B. The Debtor can be reached at: OJSC Krasnoznamenskoe Krasnoznamenka Kuryinskiy Altay Russia MOBILE TELESYSTEMS: Buys Remaining 9% Stake in Mobilnye Sistemy --------------------------------------------------------------- Mobile TeleSystems OJSC announced on Feb. 15, 2008, that it has acquired the remaining 9% stake in Mobilnye Sistemy Svyazi (MSS). In line with the company's strategy of consolidating ownership in its subsidiaries, MTS has purchased an additional 9% stake in its Omsk subsidiary, Mobilnye Sistemy, from a private investor, Fri-Consulting Limited, for US$16 million. As a result of this transaction, MTS' ownership in the subsidiary increased to 100%. Initially, the MTS purchased a 51.0% stake in 2000 followed by acquisitions in 2001 and 2004 of additional 32.5% and 7.5% stakes respectively. The subsidiary provides GSM 900/1800 services under the MTS brand and is one of the leading wireless service providers in the Omsk region with a population of 2.1 million, located in Central Siberia. Headquartered in Moscow, Russia, OJSC Mobile TeleSystems (NYSE:MBT) -- http://www.mtsgsm.com/-- is the largest wireless telecommunications operator in Russia and the CIS. For the first six months of 2007, MTS reported revenues of US$3.7 billion and an OIBDA margin of 51.8%. MTS has 79.12 million total subscribers as of August 2007. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT) * * * As reported in the TCR-Europe on Oct. 11, 2007, Moody's Investors Service upgraded the corporate family and existing bond ratings of Mobile TeleSystems to Ba2 from Ba3. The outlook on the ratings is positive. OGK-5 OAO: Enel SpA Sees 60% Stake Following Tender Offer --------------------------------------------------------- Enel S.p.A. expects its stake in OAO OGK-5 to reach around 60% following the completion of its mandatory public tender offer, Adam Freeman writes for Bloomberg News. Carlo Tamburi, Enel's head of international operations, told Bloomberg News that the Italian utility is still tallying the results of the tender offer, which ended Feb. 4, 2008. Mr. Tamburi added Enel will conduct review of OGK-5's financial position and may infuse more capital if needed, Blomberg News relates. Mr. Tamburi, however, clarified Enel has no plans to raise cash by selling its shares. According to Mr. Tambuli, Enel has to wait OGK-5's current procurement arrangement expires in 2012 before the Italin firm can use the Siberian gas assets it acquired in 2007 to supply the company's plants. As reported in the TCR-Europe on Nov. 21, 2007, Enel Investment Holding B.V., Enel's wholly owned Dutch unit, launched a mandatory public tender offer for the entire share capital of the generation company OGK-5 following the clearance received by the Russian financial markets regulator. The duty to launch the offer arises from overcoming the 30% ownership threshold of OGK-5's share capital by EIH, after the acquisition of about 7.15% stake completed on Oct. 26, 2007. The tender offer affects about 22,231 million OGK-5 shares (equal to 62.85% of the Russian company's share capital, net of the 37.15% already owned by EIH) and has been launched at a price of 4.4275 rubles per share, fully payable in cash. Enel is a vertically integrated Group in Russia. In addition to the stake in OGK-5, the Enel Group currently owns 40% of the Severnaya Energia consortium (previously named Enineftegaz), with Eni holding the remaining 60%. The consortium has acquired a number of promising natural gas assets (OAO Arcticgaz, Urengoil and OAO Neftegaztechnologia). Moreover, the Enel Group also holds 49.5% of RusEnergoSbyt, the country's leading independent electricity supplier. About OGK-5 Headquartered in Ekaterinburg, Russia, OAO OGK-5 -- http://www.ogk-5.com/-- generates electricity and heat energy. The Company owns and operates four power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Reftinskaya GRES, and Sredneuralskaya GRES. * * * As of Nov. 20, 2007, OAO OGK-5 carries Ba3 Corporate Family and Probability-of-Default ratings from Moody's Investors Service. Moody's said the Outlook is Stable. OGK-5 OAO: May Issue Bonds to Finance Operations ------------------------------------------------ OAO OGK-5's Board of Directors has passed the resolution on the possible issuance of non-convertible interest-bearing certified exchange-traded bearer bonds in 2008 with mandatory centralized custody on MICEX, to be placed through public subscription. During the discussion of the given issue it was declared that activities related to raising loan capital in the following three years will be the core financial activity of OGK-5. Besides financing capital costs and costs related to the implementation of the extensive investment program, it is necessary to have tools for working capital financing. The Board of Directors ordered the Director General of OGK-5 to develop exchange bond issue parameters, hold necessary procedures on selection of candidates to organize the security issue and present said materials to the Board of Directors of the Company for future consideration. Mikhail Krupin, the CFO of JSC OGK-5, noted that exchange-traded bonds is the new tool on the Russian financial market, while on developed markets there has long been the analogue of this tool -- commercial papers, which are very popular among market participants. "Considering the current credit history, credit rating and financial performance, we believe that OGK-5's exchange-traded bonds will be able to find its investor even on the developing market, which will help the Company fairly quickly raise the required capital if needed," Mr. Krupin said. About OGK-5 Headquartered in Ekaterinburg, Russia, OAO OGK-5 -- http://www.ogk-5.com/-- generates electricity and heat energy. The Company owns and operates four power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Reftinskaya GRES, and Sredneuralskaya GRES. * * * As of Nov. 20, 2007, OAO OGK-5 carries Ba3 Corporate Family and Probability-of-Default ratings from Moody's Investors Service. Moody's said the Outlook is Stable. PETERSBURG FRUIT: Creditors Must File Claims by March 28 -------------------------------------------------------- Creditors of LLC Petersburg Fruit Terminal (TIN 7802163901) have until March 28, 2008, to submit proofs of claim to: B. Egudkin Insolvency Manager Apt. 92 Building 2 Komendantskiy Pr. 43 197373 St. Petersburg Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-44708/2007. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Petersburg Fruit Terminal Mezhevoj Kanal 5 198035 St. Petersburg Russia ROSNEFT OIL: Plans 12-Year RUR600-Bln Investment to Hike Output --------------------------------------------------------------- OAO Rosneft Oil Co. will invest RUR600 billion in a 12-year period to hike its annual oil output to 170 million tons in 2020, various reports say, citing CEO Sergei Bogdanchikov. Mr. Bogdanchikov said bulk of the investment will be used to develop its eastern Siberia oil fields, which will account for 60% to 70% of the increase in production, Bloomberg News says. The CEO said Rosneft plans to start production at its Vankor oil field in eastern Siberia by August 2008. Vankor crude will be pumped via Eastern Siberia-Pacific Ocean pipeline. The company has invested RUR70 billion in the Vankor field. "Vankor will play the paramount role in our strategy," Bloomberg News quoted Mr. Bogdanchikov as saying. Under Rosneft's planned development strategy until 2020, RIA Novosti cites Mr. Bogdanchikov, the company foresees production to reach: * 130 million tons by 2010, * 160 million tons by 2015, and * 170 million tons by 2020. Rosneft produced 102 millions tons of oil in 2007. Mr. Bogdanchikov told RIA Novosti that Rosneft plans to sell less crude and double its refining capacity, adding that the company expects to around 50 million tons of refined petroleum products by 2020. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines, and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * As of Feb. 7, 2008, OAO Rosneft Oil Co. carries a BB+ long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is positive. SHELF AND CO: Creditors Must File Claims by February 28 ------------------------------------------------------- Creditors of OJSC Shelf and Co have until Feb. 28, 2008, to submit proofs of claim to: Y. Kotik Insolvency Manager Birzhevoj Spusk 8 Taganrog Rostov Russia Tel/Fax: (8634) 38-34-00 The Arbitration Court of Rostov will convene at 12:30 p.m. on April 4, 2008, to hear the company's bankruptcy proceedings after finding it insolvent. The case is docketed under Case No. A53-8188/2007-S1-43. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: OJSC Shelf and Co Dzerzhinskogo Str., 111/2 Taganrog Rostov Russia SIBIRTELECOM OAO: Fitch Affirms Long-term IDR at 'B+ ---------------------------------------------------- Fitch Ratings has affirmed OAO Sibirtelecom's Long-term Issuer Default Rating at 'B+' with Stable Outlook and Short-term IDR at 'B'. The ratings reflect Sibir's dominant market position in its area of operations in eastern and much of western Siberia. Sibir controls about 80% of fixed lines in its operating territory and its market share by revenue is high. As the company owns the most developed last mile and backbone network in the area its market share in the residential segment is likely to remain unrivalled. However, competition in the business segment is likely to intensify in the medium- to long-term. Sibir holds a fairly stable market share in the mobile segment; it is the third leading mobile operator in the Siberian Federal Region of Russia. The company continues to demonstrate subscriber growth, which, coupled with healthy profitability margins in the mobile segment, contributes positively to Sibir's overall profitability and cash generation. The ratings also take into consideration the company's high internet access market share and the broadband segment's growing contribution to profitability. The Stable Outlook reflects Fitch's expectations that Sibir will be able to largely sustain its shares in the local services and mobile markets and to grow its broadband and other 'new services' ahead of competition. Despite increasing cash flow from operations, Sibir is likely to remain free cash flow- negative in the next two years due to investments in fixed-line digitisation, mobile network maintenance and broadband network roll-out. Its high investment budget has led to an increase in net debt to RUB19bn at end H107, while leverage (measured as net debt/EBITDA on LTM basis) remained at 2.2x. Fitch does not expect leverage to have significantly declined in 2007; although gradual de-leveraging after 2007 is possible as capex needs decline. The agency notes that capex for fixed-line digitisation is scalable without significant loss of margins and profitability; capex may be significantly cut with positive implications for cash flow generation and liquidity. At end-H107, short-term debt (less than one year) was reported at 49% of Sibir's total, up from 33% at end-2006. Though this figure may fluctuate, it is, in Fitch's view, unlikely to have gone below 30% at end-2007. Representing a significant share of the short-term debt is a RUB3bn domestic bond maturing in April 2008. Though Fitch expects Sibir to rely on state-owned banks for refinancing, such new debt is likely to be short term, reflecting liquidity pressure in the Russian banking system. As a result, refinancing risks would remain. Fitch notes there is another RUB2bn domestic bond maturing in May 2009. Sibir's strategy is largely shaped by its majority shareholder, government-controlled Svyazinvest. The ratings reflect Svyazinvest's strong influence on the decision-making process at Sibir and its lobbying support. YUG-AGRO LLC: Creditors Must File Claims by February 28 ------------------------------------------------------- Creditors of LLC Yug-Agro (TIN 6143062493) have until Feb. 28, 2008, to submit proofs of claim to: O. Rayabokon Temporary Insolvency Manager Office 1 Stachki Pr. 249 Rostov-na-Donu 423834 Rostov Russia The Arbitration Court of Rostov commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A53-9205/07-S1-30. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: LLC Yug-Agro Gorkogo Str. 70, 77 Volgodonsk 347360 Rostov Russia * Fitch Says Liquidity Poses Constraint for Telecom Incumbents -------------------------------------------------------------- Fitch Ratings said Monday that weak liquidity management and a high reliance on short-term financing are a key credit constraint for Russian fixed-line telecom incumbents. Fitch views this heavy reliance on short-term debt as a negative rating factor as it exposes Russian telecoms incumbents to significant refinancing risks, and in the current tight debt market environment liquidity issues are a major concern. "Although many of the incumbents achieved significant operational improvements and face reasonably strong growth prospects on the back of rapid broadband roll-out, suggesting a potential upward rating momentum, material short-term refinancing risks are not consistent with a higher rating level," says Nikolay Lukashevich, Senior Director in Fitch's TMT team. Liquidity concerns are exacerbated by the industry's negative free cash flow generation as a result of unsustainably high infrastructure capex, which account for about 30% of revenues. Fitch notes, however, that telecom capex is highly scalable. Exceptionally heavy investments in 2004-2007 mean operators have the flexibility to make significant capex cuts if needed, without materially affecting their competitiveness, market shares and service quality. Although high capex is partially driven by the regulatory requirement to fully digitise local exchange infrastructure by end-2009, Fitch understands that this deadline is flexible and that penalties for breaching it are highly unlikely. The agency estimates that capex cuts may be sufficient to return free cash flow generation to positive territory and provide a modest liquidity cushion. As Russian telecoms incumbents are ultimately controlled by the government, they benefit from strong relationships with state- controlled banks, such as Sberbank ('BBB+'/Stable) and VTB ('BBB+'/ Stable), their dominant providers of bank debt financing. Fitch expects these banks will continue to be key lenders to the industry. However, direct financial support from the incumbents' parent holding, Svyazinvest, is unlikely. Fitch also does not expect Svyazinvest will be willing, or able, to tap the cash flows of strongly performing subsidiaries to support their vulnerable counterparts. In Fitch's view, incumbent operators' operating cash flows are stable and visible while their leverage is moderate for their ratings, making them quality domestic corporate borrowers. Fitch believes underlying operating strengths make these companies attractive bank clients. However, domestic longer- term borrowing has become increasingly scarce, shortening these operators' debt maturity profiles. Fitch's ratings will increasingly factor in the ability of regional incumbents to maintain sufficient back-up bank credit lines on a rolling basis. Individual liquidity and refinancing risks differ significantly across the industry. North-West Telecom ('BB-' (BB minus)/Stable) benefits from considerable cash inflow after it sold its 15% stake in Telecominvest for USD410m in October 2007, while Volgatelecom's ('BB-' (BB minus/Stable) debt maturities are well-spread, with only 18% of its debt being short-term (less than one year) at end-H107 and a modest 1.5x net debt/EBITDA at end-2006. Refinancing risks are much higher for Uralsvyazinform ('B+'/Stable) and Sibirtelecom ('B+'/Stable) with short-term debt accounting for 42% and 49%, respectively, of total at end- H107. The share of short-term debt at Centertelecom ('B'/Positive) was at an acceptable 16% at end-H107 although this is compromised by its lower flexibility to cut capex given relative under- investment in 2005-2006. At end-September 2007, 27% of Dalsvyaz's ('B+'/Stable) debt was short-term while its leverage was moderate at 1.8x at end-2006, mitigating refinancing concerns. ===================================== S E R B I A & M O N T E N E G R O ===================================== * Fitch Says Kosovo Declaration Won't Affect Serbia's Ratings ------------------------------------------------------------- Fitch Ratings on Monday said Kosovo's unilateral declaration of independence from the Republic of Serbia on Feb. 17, 2008, has been well signposted and will not lead to an immediate change in Serbia's ratings. However, it risks setting off a messy and unpredictable chain of events that could increase political and economic instability in Serbia. If a downside scenario were to materialise then negative rating actions could follow. Kosovo's declaration of independence from Serbia is expected to be swiftly recognised by the US and leading European powers including France, Germany and the UK, bringing about a restricted and supervised form of de facto sovereignty. However, Serbia remains bitterly opposed, Russia is blocking an agreement at the United Nations and some member states are preventing formal EU recognition. The EU will take over from the UN in supervising the government, but the legal basis of Kosovo's independence and the EU's mandate are unclear. The political and economic future of Kosovo looks challenging. The destabilising influence of Kosovo has been one of the reasons Fitch has factored in a high degree of political risk into Serbia's Long-term foreign and local currency Issuer Default ratings (IDRs) of 'BB-' (BB minus) with Stable Outlooks assigned in May 2005. Kosovo's independence and its disputed recognition carry various risks. It could further inflame nationalist sentiment within Serbia; although the recent Serbian presidential election was won by the reformist, pro-EU candidate, Boris Tadic, the nationalist Tomislav Nikolic of the Serbian Radical Party (SRS) won a disconcerting 48% of the vote. The failure of the EU and Serbia to reach an agreement over the future of Kosovo and on-going divisions could threaten Serbia's path towards EU accession. And differences within the Serbian coalition government over the handling of Kosovo and EU relations could precipitate early elections and potentially see the SRS enter the government. Serbia's credit strengths include its relatively high level of human capital and GDP per capita, which Fitch estimates at US$5,760 in 2007 (at market exchange rates), well above the 'BB' range median of US$3,190. Fitch estimates the economy grew by 7.3% in 2007. Serbia has continued to recognise and service US$1.25bn (around 3% of GDP) of public debt related to the province of Kosovo accumulated prior to 1999. The secession of Kosovo could, therefore, see a reduction in Serbia's general government debt, which Fitch estimates at around 31% of GDP at end-2007. However, Serbia's substantial current account deficit, which Fitch estimates at around 16.8% of GDP in 2007, is a significant rating weakness. If Serbia were to turn its back on EU integration that would likely adversely affect foreign direct investment and other capital inflows, exacerbating external financing risks. The treatment of Kosovo will aggravate relations between Russia and the West, and could be seen to set a precedent and have unfavourable consequences for other countries. It could risk destabilising or thwart attempts to re-integrate breakaway territories in Georgia (Long-term foreign currency IDR of 'BB-' (BB minus)) and Moldova ('B-' (B minus)). The Republika Srpska entity could threaten to secede from Bosnia. It could also spark tensions in the Republic of Macedonia ('BB+') between ethnic Albanians and Macedonians. * S&P Says Kosovo Declaration Won't Affect Serbia's Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services said that the declaration of independence by Kosovo's authorities on Feb. 17, 2008, would not have any immediate impact on the sovereign credit ratings on the Republic of Serbia (BB-/Stable/B). However, Standard & Poor's emphasized that the response of the Serbian government to the political pressures created by the declaration, and to the process of EU integration, will be of crucial importance for the sovereign ratings. "We don't anticipate the declaration of independence, which is expected to be recognized by the U.S. and major EU countries early this week, to cause large-scale violence or political instability in Serbia," Standard & Poor's credit analyst Sladana Tepic said. "It does, however, heighten the possibility of increased political tensions within Serbia's less-than-a-year old ruling coalition. This may bring early elections in 2008, and cause uncertainty about future policy choices." If Serbia's reaction to Kosovo's independence leads to an antagonistic relationship towards the EU and a loss of EU prospects, the sovereign ratings would quickly come under pressure. ===================== S W I T Z E R L A N D ===================== HARTMANN PEOPLECARE: Creditors Must File Claims by Feb. 27 ---------------------------------------------------------- Creditors of LLC Hartmann PeopleCare have until Feb. 27, 2008, to submit their claims to: LLC Meyer Lustenberger Rechtsanwalt Liquidator Forchstrrasse 452 Mail box: 1432 8032 Zurich Switzerland The Debtor can be reached at: LLC Hartmann PeopleCare Zurich Switzerland LADERACH CONSULTING: Creditors Must File Claims by Feb. 28 ---------------------------------------------------------- Creditors of JSC Laderach Consulting have until Feb. 28, 2008, to submit their claims to: Andreas Byland Bundesgasse 26 3001 Bern Switzerland The Debtor can be reached at: JSC Laderach Consulting Frauenkappelen Laupen BE Switzerland RAMEX LLC: Creditors' Liquidation Claims Due by Feb. 27 ------------------------------------------------------- Creditors of LLC Ramex have until Feb. 27, 2008, to submit their claims to: Werner Benninger Liquidator Vissaulastrasse 2 3280 Murten See FR Switzerland The Debtor can be reached at: LLC Ramex Murten See FR Switzerland RESTAURANT HIRSCHEN: Creditors Must File Claims by Feb. 28 ---------------------------------------------------------- Creditors of LLC Restaurant Hirschen have until Feb. 28, 2008, to submit their claims to: Walter Steiner Friloweg 502 4950 Huttwil Trachselwald BE Switzerland The Debtor can be reached at: LLC Restaurant Hirschen Krauchthal Burgdorf BE Switzerland ROHA HARTMANN: Creditors' Liquidation Claims Due by Feb. 27 ----------------------------------------------------------- Creditors of LLC roha Hartmann Consulting have until Feb. 27, 2008, to submit their claims to: LLC Meyer Lustenberger Rechtsanwalt Liquidator Forchstrrasse 452 Mail box: 1432 8032 Zurich Switzerland The Debtor can be reached at: LLC roha Hartmann Consulting Zurich Switzerland SEMURA HANDEL: Creditors' Liquidation Claims Due by Feb. 28 ----------------------------------------------------------- Creditors of JSC Semura Handel und Verwaltung have until Feb. 28, 2008, to submit their claims to: JSC Alleedo Treuhand 8034 Zurich Switzerland The Debtor can be reached at: JSC Semura Handel und Verwaltung Zurich Switzerland THEBLUEBOX.CH LLC: Zug Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Service of Zug commenced bankruptcy proceedings against LLC thebluebox.ch on Jan. 8, 2008. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: LLC thebluebox.ch 6340 Baar ZG Switzerland T-CREATION BAU: Zurich Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Service of Altstetten-Zurich commenced bankruptcy proceedings against LLC T-Creation Bau on Nov. 20, 2007. The Bankruptcy Service of Altstetten-Zurich can be reached at: Bankruptcy Service of Altstetten-Zurich 8048 Zurich Switzerland The Debtor can be reached at: LLC T-Creation Bau Badenerstrasse 698 8048 Zurich Switzerland =========== T U R K E Y =========== TOPLU KONUT: Moody's Puts Local & Foreign Currency Rating at Ba3 ---------------------------------------------------------------- Moody's Investors Service assigned issuer ratings of Ba3 (Global Scale, local and foreign currency) and Baa1.tr (Turkey National Scale), with stable outlook, to Toplu Konut Idaresi Baskanligi, the housing development administration of Turkey. "TOKI's ratings primarily reflect its strategic role in the implementation of the Turkish government's housing policies and its strong linkages to the government's institutions, as reflected by the legislative framework regulating its duties and powers", says Francesco Soldi, Moody's lead analyst for TOKI. TOKI is a State Agency affiliated with the Turkish Prime Ministry, with a broad range of powers and duties in the housing sector. It was established by Mass Housing Law n.2985 as a public corporate entity outside Turkey's state budget; it has no share capital, and it cannot be made bankrupt or liquidated. The agency, which does not pursue profit as a business objective, operates under a mandate from the central government, with its mission being to develop housing projects, grant subsidised housing credits, and support renovation projects. The management structure and governance clearly point to a high degree of operational integration with the government, as well as its budgeting process and auditing procedures. "As such, its rating is closely tied to that of the Turkish Republic," explains Mr. Soldi. The ratings also take into account TOKI's financial fundamentals and improving financial performance. Moreover, the ratings incorporate TOKI's business model, which entails good operational efficiency and management of risks associated with a building-for-sale model. Moody's also notes that TOKI has been able to manage its rapidly increasing budget, although large investments have led to a narrowing liquidity position. Over the past five years, increased housing sales have reduced reliance on government grants as a source of revenue, reflecting the government's attitude to support TOKI's operations through land allocation rather than grants. TOKI's improving operating margins reflect its business model and increasing returns from revenue-sharing projects with third parties. "TOKI has managed its financial exposure to date, but its large investment programme for social housing is expected to require external sources of funding. Such new borrowings can be supported by the agency's capacity for leverage," says Mr. Soldi. TOKI's Ba3/Baa1.tr issuer ratings and stable outlook also incorporate a high likelihood of extraordinary support from the central government should the agency approach a default situation. ============= U K R A I N E ============= ALIGATOR LLC: Claims Filing Deadline Set February 29 ---------------------------------------------------- Creditors of LLC Aligator (code EDRPOU 30474943) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Ivano-Frankovsk Shevchenko Str. 16a 76000 Ivano-Frankovsk Ukraine The Economic Court of Ivano-Frankovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. B-21/261. The Debtor can be reached at: LLC Aligator Gnat Hotkevich Str. 54/269 Ivano-Frankovsk Ukraine BALTAZAR-CLASS LLC: Creditors Must File Claims by February 29 ------------------------------------------------------------- Creditors of LLC Baltazar-Class (code EDRPOU 35066416) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 22, 2008. The case is docketed under Case No. 14/792/07. The Debtor can be reached at: LLC Baltazar-Class Office 507 Heroes of Stalingrad Avenue 91 Nikolaev Ukraine BIAS CJSC: Creditors Must File Claims by February 29 ---------------------------------------------------- Creditors of CJSC Science-Technological Association Bias (code EDRPOU 23713323) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/536-b. The Debtor can be reached at: CJSC Science-Technological Association Bias Pobeda Avenue 19 03055 Kiev Ukraine CAPITAL-PLUS LLC: Creditors Must File Claims by February 29 ----------------------------------------------------------- Creditors of LLC Capital-Plus (code EDRPOU 35106186) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 22, 2008. The case is docketed under Case No. 14/794/07. The Debtor can be reached at: LLC Capital-Plus Pushkinskaya Str. 31 Nikolaev Ukraine CHEMER DISTILLERY: Claims Filing Deadline Set February 29 --------------------------------------------------------- Creditors of State Enterprise Chemer Distillery (code EDRPOU 00375355) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Chernigov Mir Avenue 20 14000 Chernigov Ukraine The Economic Court of Chernigov commenced bankruptcy supervision procedure on the company on Jan. 3, 2008. The case is docketed under Case No. 4/85b. The Debtor can be reached at: State Enterprise Chemer Distillery Industrial Str. 10 Chemer Kozeletsky District 17036 Chernigov Ukraine EKO-SERVICE LLC: Creditors Must File Claims by February 29 ---------------------------------------------------------- Creditors of LLC Eko-Service (code EDRPOU 30675783) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 21, 2008. The case is docketed under Case No. 49/244-b. The Debtor can be reached at: LLC Eko-Service Kikvidze Str. 21 01103 Kiev Ukraine INDUSTRIAL ELECTROEQUIPMENT: Creditors' Claims Due Feb. 29 ---------------------------------------------------------- Creditors of LLC Industrial Electroequipment (code EDRPOU 32202636) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 12, 2007. The case is docketed under Case No. 15/547-b. The Debtor can be reached at: LLC Industrial Electroequipment Borispol Str. 8 02099 Kiev Ukraine INTELVID LLC: Creditors Must File Claims by February 29 ------------------------------------------------------- Creditors of LLC Intelvid (code EDRPOU 21454797) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 23/533-b. The Debtor can be reached at: LLC Intelvid Artem Str. 46 04053 Kiev Ukraine MARIAGVA BSM: Creditors Must File Claims by February 29 ------------------------------------------------------- Creditors of LLC Norwegian-Ukrainian Company Mariagva BSM (code EDRPOU 32819512) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 22, 2008. The case is docketed under Case No. 14/800/07. The Debtor can be reached at: LLC Norwegian-Ukrainian Company Mariagva BSM Apartment 80 Sovetskaya Str. 9 Nikolaev Ukraine MONTI LLC: Creditors Must File Claims by February 29 ---------------------------------------------------- Creditors of LLC Monti (code EDRPOU 21592430) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 11, 2007. The case is docketed under Case No. 23/534-b. The Debtor can be reached at: LLC Monti Gogolevskaya Str. 39 04053 Kiev Ukraine ZARIA LLC: Creditors Must File Claims by February 29 ---------------------------------------------------- Creditors of Agricultural LLC Zaria (code EDRPOU 05525167) have until Feb. 29, 2008, to submit written proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 10, 2008. The case is docketed under Case No. 5/16-08. The Debtor can be reached at: Agricultural LLC Zaria Gagarin Str. 22 Gavrishovka Vinnica Ukraine =========================== U N I T E D K I N G D O M =========================== 3CL REALISATIONS: Calls In Liquidators from Tenon Recovery ---------------------------------------------------------- J. Parker and T. J. Binyon of Tenon Recovery were appointed joint liquidators of 3CL Realisations Ltd. (formerly Three Cooks Ltd.) on Feb. 6 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Sherlock House 73 Baker Street London W1U 6RD England AXIUM INT'L: Entertainment Partners Completes Acquisition --------------------------------------------------------- Entertainment Partners has completed its acquisitions of certain assets of Axium International, Carolyn Giardina of the Hollywood Reporter discloses. As reported in the Troubled Company Reporter-Europe on Feb. 5, 2008, Axium sold its remaining assets to Entertainment Partners for $7.05 million. Ensemble Chimes Global, the company's wholly-owned subsidiary, had sold its assets to MPS Group Inc. Axium International Inc. -- http://www.axium.com/-- provides payroll solutions for production. It offers various financial services and technology for the entertainment industry through Axium Global and Axium Global Workforce. It serves companies ranging from mid-market to Fortune 500. Axium International has offices in Los Angeles, New York, Burbank, Hollywood, Las Vegas, Toronto, Vancouver and London. The company filed for protection under Chapter 7 of the Bankruptcy Code on Jan. 8, 2008 (Bankr. C.D. Calif. Case No. 08-10277). Howard M. Ehrenberg, a partner at SulmeyerKupetz, has been appointed as Chapter 7 Trustee. CHALLENGER SYNDICATESHIPS: Appoints Begbies as Administrators ------------------------------------------------------------- D.F. Wilson and J.N.R. Pitts of Begbies Traynor were appointed joint administrators of Challenger Syndicateships Ltd. (Company Number 03444668) on Jan. 11, 2008. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: Challenger Syndicateships Ltd. Hampton Park Farmhouse Red Lane Hampton Evesham Worcestershire WR11 2RF England Tel: 01386 424 386 Web site: http://www.challengersyndicatecars.com/ CHRYSLER LLC: Court Denies Plea to Pull Out Tooling Equipment ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan denied Chrysler LLC's request to pull out the tooling equipment from Plastech Engineered Products Inc. and its debtor- affiliates' plants. The decision came after a two-day hearing last week, with Chrysler and Plastech presenting their cases about the tooling dispute. Chrysler spokesperson, Kevin Frazier, commented, "We are obviously disappointed with this decision. We cannot provide further information at this time. However, we will continue to work with all parties to ensure that our plants continue to receive deliveries of parts." As reported in the Troubled Company Reporter on Feb. 14, 2008, the Debtors opposed Chrysler's request for lifting of the automatic stay that would allow it to take possession of the tooling. If Chrysler's proposal is granted, the Debtors contended, they would immediately lose approximately 15% of their annual revenues, considering that Chrysler accounts for about $200,000,000 of Plastech's annual revenues. In addition, the Debtors argued that Chrysler has no right to take the tooling equipment away, since pursuant to their financial accomodation agreements, the tooling is property of the Debtors' estate. As previously reported, Chrysler LLC reacted to Plastech's argument that the tooling equipment is property of the estate. Chrysler argued that the objections of the Debtors and various of the Debtors' lenders, which share a common theme -- that Chrysler's entitlement to possession of the Tooling is somehow conditioned on Chrysler proving "ownership" of the Tooling -- miss the mark. "Possession of the Tooling, not ownership, is the issue before the Court," Chrysler's counsel argued. Representatives for General Motors Corp. and Ford Motor Co. as well as for auto supplier Johnson Controls Inc. told the Court that they believe Chrysler has the right to reclaim their own equipment under their contracts with Plastech. About Plastech Engineered Dearborn, Michigan-based Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling $729,000,000 and total liabilities of $695,000,000. About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CLEAR CHANNEL: Expects CC Media Merger to Close by March 31 ----------------------------------------------------------- Clear Channel Communications Inc. reported that there are no remaining regulatory approvals needed to close merger agreement it had with Thomas H. Lee Partners LP and Bain Capital Partners on Sept. 25, 2007. The company anticipates closing of the merger on or before March 31, 2008. The company's shareholders approved the adoption of the merger agreement, as amended, in which Clear Channel would be acquired by CC Media Holdings Inc., a corporation formed by private equity funds co-sponsored by Lee Partners and Bain Capital. As reported in the Troubled Company Reporter-Europe on Dec. 6, 2007 Clear Channel provided an update on the status of its merger with an affiliate of a private equity group. Both parties continue to actively pursue the satisfaction of the conditions to closing of the merger. The remaining material condition to be satisfied is obtaining the expiration or termination of the waiting period under the Hart Scott Rodino Act. In connection with the proposed acquisition, the company agreed with the United States Department of Justice to enter into a Final Judgment and Hold Separate Agreement in accordance with and subject to the Tunney Act. The applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired on Wednesday, Feb. 13, 2008. About Bain Capital Boston, Massachussetts-based Bain Capital Partners LLC -- http://www.baincapital.com/-- is a private investment firm with approximately US$40 billion in assets under management. Its family of funds includes private equity, venture capital, public equity and leveraged debt assets. Absolute Return Capital LLC is the global macro affiliate of Bain Capital. Bain Capital Private Equity has raised nine funds and invested in more than 200 companies. Bain Capital (Europe) Limited, an affiliate, is dedicated to investment opportunities in the European market. Bain Capital Venture Partners LLC is the venture capital arm of Bain Capital. Sankaty Advisors LLC, the credit affiliate of Bain Capital LLC, is a private manager of high-yield debt obligations. In October 2006, Michaels Stores Inc. announced the completion of its merger with affiliates of Bain Capital Partners LLC and The Blackstone Group. As a result, Bain Capital Partners LLC and Blackstone own equal stakes in Michaels, and funds affiliated with Highfields Capital Management own a minority stake. About Thomas Lee Partners Boston, Massachussetts-based Thomas H. Lee Partners LP -- http://www.thlee.com/-- Thomas H. Lee Partners is the teddy bear at the gate. Known as a "friendly" leveraged buyout (LBO) firm, the company uses a mix of debt, funds from institutional investors, and its own money to buy companies. Unlike the fearsome LBO outfits of the 1980s, Thomas H. Lee Partners eschews the axe for the handshake; it builds up a stake and courts management cooperation. Lee then usually sells the revamped acquisitions or takes them public. Thomas H. Lee, who founded Thomas H. Lee Partners in 1974, left his namesake firm in 2006 to start a long-planned rival hedge fund and private equity venture. The company has teamed up with Bain Capital to buy media titan Clear Channel for almost US$20 billion. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * As reported in the Troubled Company Reporter-Europe on Jan. 31, 2008, Standard & Poor's Ratings Services said its ratings on Clear Channel Communications Inc., including the 'B+' corporate credit rating, remain on CreditWatch with negative implications. S&P originally placed them on CreditWatch on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. CLEAR CHANNEL: Sues to Compel Providence Equity to Close TV Deal ---------------------------------------------------------------- Clear Channel Communications Inc. filed a lawsuit against Providence Equity Partners Inc., to compel the private equity firm to complete its acquisition of Clear Channel's 56 television stations, various sources say. The Associated Press reports that Providence Equity was "surprised and disappointed" by the lawsuit filed on Friday by Clear Channel. According to the contract terms, the litigation has rendered the break-up fee void. As reported in the Troubled Company Reporter-Europe on April 24, 2007, Clear Channel agreed to sell its Television Group to Providence Equity for approximately US$1.2 billion. The sale includes 56 television stations, including 18 digital multicast stations, located in 24 markets across the United States. Also included in the sale are the stations' associated Web sites, the Television Operations Center, and Inergize Digital Media, which manages the Television Group's online and wireless initiatives. In November, the TCR-Europe reported that Providence had reservations about the transaction because of its view of the long-term prospects of Clear Channel's local TV stations. Providence may try to renegotiate the purchase price, and should the deal fails, it would have to pay a US$45 million break-up fee. According a filing with the Securities and Exchange Commission, Clear Channel disclosed that the definitive agreement is in full force and effect, has not been terminated and contains customary closing conditions. There have been no allegations that Clear Channel has breached any of the terms or conditions of the definitive agreement or that there is a failure of a condition to closing the acquisition. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * As reported in the Troubled Company Reporter-Europe on Jan. 31, 2008, Standard & Poor's Ratings Services said its ratings on Clear Channel Communications Inc., including the 'B+' corporate credit rating, remain on CreditWatch with negative implications. S&P originally placed them on CreditWatch on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. CLEAR CHANNEL: Required by DOJ to Shed Off Radio Stations --------------------------------------------------------- The U.S. Department of Justice has required Clear Channel Communications Inc. to divest radio stations in four cities in order for a group of private equity investors led by Bain Capital and Thomas H. Lee Partners to proceed with their acquisition of a controlling interest in Clear Channel. The DOJ said that the transaction, as originally proposed, likely would have resulted in higher prices to purchasers of radio advertising in Cincinnati, Houston, Las Vegas and San Francisco because Bain and THL already have substantial ownership interests in two firms that compete with Clear Channel in those cities. The DOJ's Antitrust Division recently filed a civil lawsuit in the U.S. District Court in Washington, D.C., to block the proposed acquisition. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the lawsuit and the DOJ's competitive concerns. The divestitures are required to assure continued competition in markets where the transaction would otherwise result in a significant loss of competition. According to the complaint, radio stations owned by Clear Channel and Cumulus compete head- to-head in Cincinnati and Houston. In addition, Clear Channel and Univision own competing Spanish-language radio stations in Houston, Las Vegas and San Francisco. THL and Bain's acquisition of a controlling interest in Clear Channel\u2014combined with their existing ownership interests in Cumulus and THL's ownership interest in Univision\u2014gives them the incentive and the ability to reduce competition between Clear Channel and Cumulus and Univision, which would result in increased prices and reduced levels of service in the sale of radio advertising time. Under the terms of the proposed settlement, Clear Channel must divest stations in Cincinnati, Houston, Las Vegas and San Francisco to buyers approved by the Department\u2019s Antitrust Division. "Without the divestitures obtained by the Department, advertisers that rely on radio advertising in the affected cities likely would have faced higher prices," said Thomas O. Barnett, Assistant Attorney General in charge of the Department\u2019s Antitrust Division. "The divestitures will ensure that advertisers will continue to receive the benefits of competition." As reported in the Troubled Company Reporter-Europe on Feb. 1, 2008, the buyers remained undaunted in their plans to buy Clear Channel for US$39.20 per share amid market's worries. Clear Channel said that the pending deal will be completed by March 2008, as previously planned. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * As reported in the Troubled Company Reporter-Europe on Jan. 31, 2008, Standard & Poor's Ratings Services said its ratings on Clear Channel Communications Inc., including the 'B+' corporate credit rating, remain on CreditWatch with negative implications. S&P originally placed them on CreditWatch on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. CLOCKWORX LTD: Taps PwC to Administer Assets -------------------------------------------- Robert William Birchall and Michael David Gercke of PricewaterhouseCoopers LLP were appointed joint administrators of Clockworx Ltd. (Company Number 5114698) on Jan. 31, 2008. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. The company can be reached at: Clockworx Ltd. Unit 5-7 Park Royal Road London W3 6XA England Tel: 0870 061 0000 Fax: 0870 762 1426 ELVI INVESTMENTS: Hires Joint Administrators from Baker Tilly ------------------------------------------------------------- Lynn Robert Bailey, Lindsey Jane Cooper and Simon Peter Bower of Baker Tilly Restructuring and Recovery LLP were appointed on Feb. 7, 2008, joint administrators of: -- Elvi Ltd. (Company Number 00489332); -- Elvi Investments Ltd. (Company Number 00416970); and -- Elvi Holdings Ltd. (Company Number 03338735). Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. The companies can be reached at: Elvi Investments Ltd. 17 Oxleasow Road Redditch Worcestershire B98 0RE England Tel: 01527 506 300 Fax: 01527 515 126 GLOBAL TRADER EUROPE: Opts for Administration Due to Deficit ------------------------------------------------------------ Global Trader Europe Limited disclosed that it experienced a regulatory capital deficit as a result of a single client margin call default. Thus, under these circumstances GT Europe applied, at the close of business on Wednesday, Feb. 13, 2008, to the Financial Services Authority in the United Kingdom for a Variation of Permission - the official method by which companies change the terms of their authorization, limiting principal activities to closing existing trades. Purple Capital, together with the Board and management of GT Europe, continues to evaluate alternatives for the re- capitalisation of the company, including the possible introduction of an international equity partner. However, to ensure that the various alternatives can be evaluated within an orderly operational structure and regulated financial exposure, GT Europe, on Feb. 15, 2008, applied, with the permission of the FSA, to be managed under Administration. No Effect on South African Operations Global Trader's South African operations, being independently held, is unaffected legally or economically by the circumstances of GT Europe. GTSA is performing very well and has traded profitably throughout the recent period of adverse market movements and volatility. In fact, GTSA's client base has grown at an annual rate of 34% since the effective date of the acquisition, whilst turnover has grown by 117% year-on-year for the same period. GTSA generates in excess of 80% of group profitability and cash flows and remains well positioned as the leading CFD and Spread Trading derivatives operation in South Africa. GTSA's expansion plans into a full-service brokerage remain on track for 2008. Shareholders are advised to exercise caution when dealing in the company's shares until final details of GT Europe's restructuring are certain, at which time a detailed announcement will be made. Purple Capital's Shares Diversification As a result of Global Trader Europe Limited's insolvency, Purple Capital Ltd.'s shares last week fell by around 18%, Bloomberg reports. Global Trader Europe Global Trader Europe Limited is held independently as the owner of the international operations of the Global Trader group. Global Trader -- http://www.gt247.co.za/-- is a pioneering international financial institution offering a Spread Trading and a Contract for Difference execution and advisory service to both institutional and private clients investing in international and domestic markets. Global Trader was founded in Europe in 2000. Since then it has grown its global reach into South Africa, North America and Asia, with a physical presence in the United Kingdom, South Africa, Thailand, Canada and Russia. Worldwide, Global Trader is authorized and regulated by the Financial Services Authority in the United Kingdom. Global Trader is an authorized Financial Services Provider by the Financial Services Board of South Africa and registered as a derivatives dealer with the Securities and Exchange Commission of Thailand. Global Trader is a Member of the London Stock Exchange and is a derivative member of the JSE Limited. Global Trader is run by a group of market professionals who share a common goal to redefine trading. Applying their extensive financial backgrounds with leading Global Investment banks and software houses, the management team have built Global Trader into an international trading house. Global Trader is 100% owned by Purple Capital Limited -- http://www.purplecapital.co.za/-- a financial services investment holding company. GLOBAL TRADER EUROPE: Smith & Williamson Named as Administrators ---------------------------------------------------------------- Stephen Robert Cork and Joanne Elizabeth Milner of Smith and Williamson Limited were appointed joint administrators of Global Trader Europe Limited on Feb. 15, 2008 and the Affairs, Business and Property of the company are being managed by them. The joint administrators contract as agents of the company and without personal liability. For inquiries regarding th administration, contact: Smith and Williamson Limited 25 Moorgate London, EC2R 6AY. Tel: 0207 131 4000 Global Trader Europe Global Trader Europe Limited is held independently as the owner of the international operations of the Global Trader group. Global Trader -- http://www.gt247.co.za/-- is a pioneering international financial institution offering a Spread Trading and a Contract for Difference execution and advisory service to both institutional and private clients investing in international and domestic markets. Global Trader was founded in Europe in 2000. Since then it has grown its global reach into South Africa, North America and Asia, with a physical presence in the United Kingdom, South Africa, Thailand, Canada and Russia. Worldwide, Global Trader is authorized and regulated by the Financial Services Authority in the United Kingdom. Global Trader is an authorized Financial Services Provider by the Financial Services Board of South Africa and registered as a derivatives dealer with the Securities and Exchange Commission of Thailand. Global Trader is a Member of the London Stock Exchange and is a derivative member of the JSE Limited. Global Trader is run by a group of market professionals who share a common goal to redefine trading. Applying their extensive financial backgrounds with leading Global Investment banks and software houses, the management team have built Global Trader into an international trading house. Global Trader is 100% owned by Purple Capital Limited -- http://www.purplecapital.co.za/-- a financial services investment holding company. INTELSAT LTD: S&P Chips Rating to B on Highly Leveraged Profile --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. The outlook is stable. Concurrent with the new bridge financing utilized in the acquisition of the company by an investor group led by BC Partners, Intelsat used the accordion feature under its Intelsat Corp. credit facility to issue a US$150 million incremental term loan B-2. In light of this fact, Standard & Poor's also lowered the rating on the company's senior secured credit facility to 'BB-', while leaving the recovery rating unchanged at '1', indicating expectations of very high (90%-100%) recovery in the event of a payment default to this new term loan. "The downgrade reflects the significant increase in leverage resulting from the leveraged buyout," said Standard & Poor's credit analyst Naveen Sarma. "It is only the fundamentally sound business profile that enables Intelsat to warrant the `B' corporate credit rating in light of this excessive leverage." The ratings on Intelsat Ltd. reflect a very highly leveraged financial profile that allows for little financial flexibility over the medium term and overwhelms very attractive business characteristics. A strong business risk profile reflects the company's global scale, strong geographic diversification, and a strong revenue backlog that provides for significant cash flow visibility. This enables the company to support such high levels of leverage at this rating level. KRISPY KREME: Standard Pacific Divests 6.1% Stake in Company ------------------------------------------------------------ Standard Pacific Capital, LLC, an investment adviser, disclosed in regulatory filings with the Securities and Exchange Commission that it has completely sold off its Krispy Kreme Doughnuts, Inc. common shares. Prior to that, Standard Pacific Capital beneficially owned 3,934,499, or 6.1%, of the outstanding shares of Krispy Kreme. Standard Pacific Capital did not provide an explanation. Standard Pacific Capital also did not identify who acquired the shares. Tony Plath, a finance professor at UNC Charlotte, said that the investment group "could have transferred the ownership stake to the name of the party that really bought it, since there's no transaction price listed in the filing," The Winston-Salem Journal reports. Meanwhile, Kuwait-based Mohamed Abdulmohsin Al Kharafi & Sons W.L.L., disclosed in a separate filing that it has acquired 9,064,800 Krispy Kreme shares, representing a 13.8% equity stake in the company. Mohamed Abdulmohsin Al Kharafi & Sons W.L.L., is a limited liability company organized under the laws of the state of Kuwait. Krispy Kreme has 65,532,322 shares of common stock issued and outstanding, as reported in the company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2007. About Krispy Kreme Headquartered in Winston-Salem, North Carolina, Krispy Kreme Doughnuts Inc. (NYSE: KKD) -- http://www.krispykreme.com/-- retails doughnuts. There are about 411 Krispy Kreme stores including satellites operating system-wide in 41 U.S. states, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, the Republic of South Korea, the United Arab Emirates and the United Kingdom. * * * As reported in the Troubled Company Reporter-Europe on Sept. 18, 2007, Moody's Investors Service lowered Krispy Kreme Doughnut Corporation's Speculative Grade Liquidity rating to SGL-4 from SGL-3, indicating weak liquidity. Concurrently Moody's revised the rating outlook to negative while affirming Krispy Kreme's Caa1 corporate family rating and B3 rating of its US$160 million senior secured credit facilities. LIFEBACK CLINIC: Taps Liquidators from Tenon Recovery ----------------------------------------------------- Stanley Donald Burkett-Coltman and Nigel Ian Fox of Tenon Recovery were appointed joint liquidators of The Lifeback Clinic (U.K.) Ltd. (formerly The Sudell Lifeback Clinic (U.K.) Ltd.) on Feb. 6 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England MONEY PARTNERS: Moody's Cuts Rating on EUR15 Mln Notes to Ba2 ------------------------------------------------------------- Moody's Investors Service placed on review for downgrade the Class M2a and M2b Notes and downgrades the Class B1 Notes issued by Money Partners Securities 2 PLC: - Class M2a GBP 16 Million, Current rating A2, on review for possible downgrade; - Class M2b, EUR 4 Million Current Rating A2, on review for possible downgrade; - Class B1, EUR 15 Million, Current Rating Baa2, downgraded to Ba2. The rating actions have been prompted by worse-than-expected collateral performance leading to above market average delinquency, repossession and loss levels. After twenty-four months since issuance, the cumulative losses are equal to 1.11% of the original pool balance, and the 90+ arrears correspond to approximately 15.40% of the current pool balance. Following an updated loan-by-loan analysis, and on the basis of the performance experienced by the portfolio so far, Moody's has increased the portfolio's expected loss assumption modeled at closing by 1.5 -- 2.0 percent and further increased its credit support expectations for the rating levels assigned. In particular in its revised assumptions, Moody's has also taken into consideration the rising loss severity of repossessed second lien mortgage loans which, in the last quarter, amounted to approximately 80%. Money Partners Securities 2 plc closed in November 2005. In this transaction, the Originator (Money Partners Limited for first charge mortgages and Money Partners Loans Limited for second charge mortgages) securitised a portfolio of 2830 first ranking and 5581 second ranking mortgage loans secured on residential properties located in England, Wales, Scotland and Northern Ireland, for an overall amount of GBP 400.0 million. The second lien loans correspond to 15% of the current pool balance (28.6% at closing) and the current pool factor is 51%. This transaction benefits from interest rate swaps as well as from a cash collateralization of fixed and discount rate loans. The current deposit amounts have been assessed for coverage of the fixed rate shortfalls. The incorporated detachable coupons entitled to receive interest on the relevant Class A Notes have been reviewed based on applicable outstanding Class A Notes amount, interest rate and payment date. As of the last interest payment date, the Class B2 Notes have been fully redeemed through available excess spread. The resulting overcollateralisation has been considered in the current rating review analysis by Moody's. It is expected that the transaction will switch from sequential to pro-rata amortization in the next quarters. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's will continue to monitor closely the performance of this transaction and will accordingly complete the review. NEWARK FINANCE: Appoints Administrators from Ernst & Young ---------------------------------------------------------- Alan Michael Hudson and Margaret Elizabeth Mills of Ernst & Young LLP were appointed joint administrators of Newark Finance Ltd. (Company Number 5313439) on Feb. 8, 2008. Ernst & Young -- http://www.ey.com/-- provides broad array of services relating to audit and risk-related services, tax, and transactions across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. The company can be reached at: Newark Finance Ltd. Old North Road Sutton on Trent Newark Nottinghamshire NG23 6QN England NORTHERN ROCK: David Cameron Calls for Chancellor's Resignation --------------------------------------------------------------- UK Conservative Party Leader David Cameron is demanding the resignation of Chancellor Alistair Darling, who is putting forward a legislation to nationalize Northern Rock plc, BBC News reports. Nationalization Bill According to a TCR-Europe report, the legislation will enable the Government to acquire the bank's shares. It will provide for compensation to be determined by an independent valuer. It will allow for the running of the bank and for the eventual transfer back into the private sector as soon as it is right to do so. The bill also gives the Government a general power to acquire the shares in, or assets and liabilities, of institutions. But the government is clear that this legislation is only being introduced now because there is a need to bring Northern Rock into temporary public ownership. The bill has deliberately been drafted to ensure that a bank can only be acquired in certain tightly defined circumstances. And that power will only last for twelve months. The Chancellor has previously announced a consultation, which will lead to permanent legislation to deal with situations like this in the future. Mr. Cameron, BBC relates, alleged Mr. Darling did "not now have any credibility as Chancellor," arguing "the nationalization of Northern Rock is a disaster for the taxpayer, a disaster for this government and a disaster for our country. Mr. Cameron, however, wants the Chancellor to remain in his post until the legislation passes parliament, BBC adds. Mr. Cameron, who favors Bank of England-led administration for Northern Rock, declared the Tories would vote against the legislation as it is opposed to nationalization, although he noted his party would not use every parliamentary device to obstruct the bill, Breakingnews says. Meanwhile, Treasury spokesman George Osborne, declared Mr. Darling is politically a dead man walking, adding "this Chancellor has given us weakness and indecision. We can safely say he will never recover his reputation for competence," Bloomberg News discloses. Liberal Democrat Treasury spokesman Vince Cable, on the other hand, expressed its support for the Northern Rock's nationalization. "It is clearly preferable to take this bank into temporary public ownership rather than have a bad private sale to somebody like Sir Richard Branson under which the taxpayer would continue to have all the risks and the liabilities and a private owner would take all the benefit," Mr Cable was quoted by BBC as saying. As reported in the TCR-Europe on February 19, 2008, the Government decided to bring forward legislation that will enable Northern Rock to be taken into a period of temporary public ownership. The Government has taken this decision after full consultation with the Bank of England and the Financial Services Authority. The Government's financial adviser, Goldman Sachs, has concluded from a financial point of view that a temporary period of public ownership better meets the Government's objective of protecting taxpayers. In the meantime, the Chancellor made clear that a temporary period of public ownership remained an option, and that any solution would need to represent good value for money for the taxpayer. Two detailed private sector proposals were received: one from the Virgin Consortium and the other, a Northern Rock led restructuring plan. These were considered alongside temporary public ownership. Both proposals involve a degree of risk for taxpayers and very significant implicit subsidy from the Treasury, involving a payment below the market rate to the Government for continuation of its guarantee arrangements and for the financing the Government would be putting in place. Each proposal has pros and cons. The Virgin proposal would have brought a new brand and management. However, the taxpayer would only have seen any share of the private sector's return if the value of the business to its investors had reached at least GBP2.7 billion. The Board's proposal would have involved a similar level of subsidy. But it had other disadvantages, compared with Virgin, including: it would bring in less new capital, providing less "buffer" protecting the taxpayer from risk; and the business would have been dependent on Government guarantees for new retail deposits for longer. A subsidy on the scale required would not, in the Government's judgment, provide value for money for the taxpayer, in circumstances where the private sector rather than the taxpayer would secure the vast majority of the value created over the period ahead. This would be a poor reflection of the balance of risk borne by the two sides. By contrast, under public ownership the Government will secure the entire proceeds from the future sale of the business in return for bearing the risks in this period of market uncertainty. The Government has concluded that the private sector alternatives do not meet the test of protecting the taxpayer's interest, when compared with the alternative. Accordingly, and taking all the wider considerations into account, the Government has concluded that the right approach is to take the company into a period of temporary public ownership. It is also the Government's clear assessment that, under the approach the Government is taking, the taxpayer will see its outstanding loans to Northern Rock repaid in full, with interest -- and that the business can and will be returned to the private sector as financial markets stabilize. About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported in the TCR-Europe on Dec. 20, 2007, Moody's Investors Service downgraded to E+ from D+ Northern Rock's Bank Financial Strength Rating. The E+ maps into a Baseline Credit Assessment of B1. The bank's dated subordinated debt was downgraded to B1 from Baa1 and the undated subordinated debt and Tier-1 securities were downgraded to B3 from Baa1 and Baa3 respectively. All of these ratings have negative outlooks. Northern Rock's short- term rating was affirmed at Prime-1. As reported in the TCR-Europe on Sept. 28, 2007, Standard & Poor's Ratings Services placed its 'A-/A-1' counterparty credit ratings on U.K. bank Northern Rock PLC on CreditWatch with developing implications. At the same time, the 'BBB' subordinated, 'BB' junior subordinated, and 'A-' senior unsecured debt ratings were placed on CreditWatch with developing implications. NORTHERN ROCK: Temporary Public Ownership Right Move, PM Says ------------------------------------------------------------- British Prime Minister Gordon Brown has stressed that the UK Government "will and always has put the interests of the taxpayer first" in dealing with the troubled Northern Rock bank. Speaking at his monthly press conference in Downing Street, Mr. Brown said that placing Northern Rock plc in temporary public ownership was "the right decision" and that it would have been wrong to accept a private bid whose conditions were not appropriate. The move to acquire the bank was announced on Sunday, February 17, 2008, by the Chancellor, Alistair Darling. The Prime Minister added that the Government was right to intervene when Northern Rock ran into difficulties last summer, ensuring that the bank did not fail and that instability did not spread throughout the economy. "We have steered a course of stability through difficult times and so my message is: stability is our watchword and will remain so; to protect savers and to secure the best interests of taxpayers; we have the strength to take the long-term decisions and the strength to see them through," the Prime Minister said. Mr. Brown said that developments in the Government's handling of the Northern Rock crisis should be seen in the wider context of the impact of the credit crunch across the globe. There had been a sharp downturn in the US economy, some of the biggest write-offs in the history of the financial sector, and state intervention in the rescuing of three German banks. The UK had been put in a strong position to deal with the current global economic turbulence due to low inflation and low interest rates, achieved in part through the disciplined staging of public sector awards, he added. Asked about the running of Northern Rock in public ownership, the Chancellor said it would operate independently and "at arms length from government," with newly appointed chairman Ron Sandler free to make "normal commercial decisions". The Prime Minister added that it was the Government's attention to return the bank to private sector ownership "as quickly as possible" but only when market conditions were right. Temporary Public Ownership As reported in the TCR-Europe on February 19, 2008, the Government decided to bring forward legislation that will enable Northern Rock to be taken into a period of temporary public ownership. The Government has taken this decision after full consultation with the Bank of England and the Financial Services Authority. The Government's financial adviser, Goldman Sachs, has concluded from a financial point of view that a temporary period of public ownership better meets the Government's objective of protecting taxpayers. In the meantime, the Chancellor made clear that a temporary period of public ownership remained an option, and that any solution would need to represent good value for money for the taxpayer. Two detailed private sector proposals were received: one from the Virgin Consortium and the other, a Northern Rock led restructuring plan. These were considered alongside temporary public ownership. Both proposals involve a degree of risk for taxpayers and very significant implicit subsidy from the Treasury, involving a payment below the market rate to the Government for continuation of its guarantee arrangements and for the financing the Government would be putting in place. Each proposal has pros and cons. The Virgin proposal would have brought a new brand and management. However, the taxpayer would only have seen any share of the private sector's return if the value of the business to its investors had reached at least GBP2.7 billion. The Board's proposal would have involved a similar level of subsidy. But it had other disadvantages, compared with Virgin, including: it would bring in less new capital, providing less "buffer" protecting the taxpayer from risk; and the business would have been dependent on Government guarantees for new retail deposits for longer. A subsidy on the scale required would not, in the Government's judgment, provide value for money for the taxpayer, in circumstances where the private sector rather than the taxpayer would secure the vast majority of the value created over the period ahead. This would be a poor reflection of the balance of risk borne by the two sides. By contrast, under public ownership the Government will secure the entire proceeds from the future sale of the business in return for bearing the risks in this period of market uncertainty. The Government has concluded that the private sector alternatives do not meet the test of protecting the taxpayer's interest, when compared with the alternative. Accordingly, and taking all the wider considerations into account, the Government has concluded that the right approach is to take the company into a period of temporary public ownership. It is also the Government's clear assessment that, under the approach the Government is taking, the taxpayer will see its outstanding loans to Northern Rock repaid in full, with interest -- and that the business can and will be returned to the private sector as financial markets stabilize. Nationalization Bill The Government will also introduce a Bill that will enable the bank to be brought into temporary public ownership. Full details will be provided to Parliament. The legislation will enable the Government to acquire the bank's shares. It will provide for compensation to be determined by an independent valuer. It will allow for the running of the bank and for the eventual transfer back into the private sector as soon as it is right to do so. The Bill gives the Government a general power to acquire the shares in, or assets and liabilities, of institutions. But the Government is clear that this legislation is only being introduced now because there is a need to bring Northern Rock into temporary public ownership. The Bill has deliberately been drafted to ensure that a bank can only be acquired in certain tightly defined circumstances. And that power will only last for twelve months. The Chancellor has previously announced a consultation, which will lead to permanent legislation to deal with situations like this in the future. About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported in the TCR-Europe on Dec. 20, 2007, Moody's Investors Service downgraded to E+ from D+ Northern Rock's Bank Financial Strength Rating. The E+ maps into a Baseline Credit Assessment of B1. The bank's dated subordinated debt was downgraded to B1 from Baa1 and the undated subordinated debt and Tier-1 securities were downgraded to B3 from Baa1 and Baa3 respectively. All of these ratings have negative outlooks. Northern Rock's short- term rating was affirmed at Prime-1. As reported in the TCR-Europe on Sept. 28, 2007, Standard & Poor's Ratings Services placed its 'A-/A-1' counterparty credit ratings on U.K. bank Northern Rock PLC on CreditWatch with developing implications. At the same time, the 'BBB' subordinated, 'BB' junior subordinated, and 'A-' senior unsecured debt ratings were placed on CreditWatch with developing implications. NORTHERN ROCK: Rescue Plans Carry Risks, Ron Sandler Says --------------------------------------------------------- Northern Rock plc's new executive chairman Ron Sandler has warned that all rescue plans drawn up for the bank carry risks, claiming there is no guarantee they will succeed, BBC News reports. Mr. Sandler, whose comments came after the UK government unveiled its decision to nationalize Northern Rock, declared "nothing is guaranteed in this world," although he said there was a good platform from which to stabilize the bank and repay billions of pounds of loans, which would take years, BBC relates. "It is clearly unrealistic to talk about months," Mr. Sandler was quoted by the BBC as saying. "We are clearly talking about a period of some years." Mr. Sandler, however, refused to discuss on job cuts, BBC adds. Meanwhile, Breakingnews reveals, Northern Rock is likely to reduce its current market-leading savings rates as it would have to operate under European Union rules on state aid, which according to Mr. Sandler would put "restraints" on the bank. Chris Gilchrist, director of Churchill Investments, told Breakingnews "there are quite strong arguments from other banks that there is an element of subsidy. We suspect they will be forced to offer slightly less attractive rates." Concerns over Northern Rock's competitive advantage resulting from the government guarantee and loan are also speculated to arise, Breakingnews discloses. According to James Invine, a research analyst at Dresdner Kleinwort, "Northern Rock will gain from Government ownership. No private bank can match the perception of deposit safety of a Government-owned bank," adding "this means that Northern Rock's battered deposit franchise has a competitive advantage, particularly over the smaller banks, Alliance & Leicester and Bradford & Bingley, where consumers may perceive slightly higher risk," Breakingnews says. Kevin Mountford, head of savings at moneysupermarket.com, on the other hand, stated "the new management team, headed by financial services stalwart Ron Sandler, will be keen to not only retain retail funds but attract more, so savers should keep a watching brief as we may well see some good rates offered in the coming months," Breakingnews notes. Temporary Public Ownership As reported in the TCR-Europe on February 19, 2008, the Government decided to bring forward legislation that will enable Northern Rock to be taken into a period of temporary public ownership. The Government has taken this decision after full consultation with the Bank of England and the Financial Services Authority. The Government's financial adviser, Goldman Sachs, has concluded from a financial point of view that a temporary period of public ownership better meets the Government's objective of protecting taxpayers. In the meantime, the Chancellor made clear that a temporary period of public ownership remained an option, and that any solution would need to represent good value for money for the taxpayer. Two detailed private sector proposals were received: one from the Virgin Consortium and the other, a Northern Rock led restructuring plan. These were considered alongside temporary public ownership. Both proposals involve a degree of risk for taxpayers and very significant implicit subsidy from the Treasury, involving a payment below the market rate to the Government for continuation of its guarantee arrangements and for the financing the Government would be putting in place. Each proposal has pros and cons. The Virgin proposal would have brought a new brand and management. However, the taxpayer would only have seen any share of the private sector's return if the value of the business to its investors had reached at least GBP2.7 billion. The Board's proposal would have involved a similar level of subsidy. But it had other disadvantages, compared with Virgin, including: it would bring in less new capital, providing less "buffer" protecting the taxpayer from risk; and the business would have been dependent on Government guarantees for new retail deposits for longer. A subsidy on the scale required would not, in the Government's judgment, provide value for money for the taxpayer, in circumstances where the private sector rather than the taxpayer would secure the vast majority of the value created over the period ahead. This would be a poor reflection of the balance of risk borne by the two sides. By contrast, under public ownership the Government will secure the entire proceeds from the future sale of the business in return for bearing the risks in this period of market uncertainty. The Government has concluded that the private sector alternatives do not meet the test of protecting the taxpayer's interest, when compared with the alternative. Accordingly, and taking all the wider considerations into account, the Government has concluded that the right approach is to take the company into a period of temporary public ownership. It is also the Government's clear assessment that, under the approach the Government is taking, the taxpayer will see its outstanding loans to Northern Rock repaid in full, with interest -- and that the business can and will be returned to the private sector as financial markets stabilize. About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported in the TCR-Europe on Dec. 20, 2007, Moody's Investors Service downgraded to E+ from D+ Northern Rock's Bank Financial Strength Rating. The E+ maps into a Baseline Credit Assessment of B1. The bank's dated subordinated debt was downgraded to B1 from Baa1 and the undated subordinated debt and Tier-1 securities were downgraded to B3 from Baa1 and Baa3 respectively. All of these ratings have negative outlooks. Northern Rock's short- term rating was affirmed at Prime-1. As reported in the TCR-Europe on Sept. 28, 2007, Standard & Poor's Ratings Services placed its 'A-/A-1' counterparty credit ratings on U.K. bank Northern Rock PLC on CreditWatch with developing implications. At the same time, the 'BBB' subordinated, 'BB' junior subordinated, and 'A-' senior unsecured debt ratings were placed on CreditWatch with developing implications. NORTHERN ROCK: S&P Downgrades Preference Shares' Rating to C ------------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term counterparty credit rating on U.K. bank Northern Rock PLC to 'A' from 'A-'. At the same time, the 'A-1' short-term counterparty credit rating was affirmed. The outlook is positive. Furthermore, the rating on Northern Rock's lower Tier 2 dated subordinated debt was raised to 'BBB+' from 'BBB'. At the same time, the counterparty credit ratings and the rating on the lower Tier 2 debt were removed from CreditWatch, where they had been placed with developing implications on Sept. 26, 2007. Additionally, the rating on Northern Rock's GBP400 million preference shares, and the rating on the GBP400 million notes issued by Saphir Finance PLC and secured over those preference shares, were lowered to 'C' from 'B'. At the same time, Standard & Poor's revised its CreditWatch placement of these preference shares and the related Saphir Finance notes to negative from developing, where they had originally been placed on Sept. 26, 2007. Furthermore, the 'BB' ratings on Northern Rock's other Tier 1 instruments and all upper Tier 2 issues remain on CreditWatch, where they had been placed with developing implications on Sept. 26, 2007. "These rating actions follow [Sun]day's announcement by the U.K. government that Northern Rock will be nationalized through legislation to be introduced [Mon]day. The government concluded that the takeover proposals from the Virgin-led consortium and Northern Rock's management offered insufficient value to taxpayers, and that a period of temporary public ownership was a preferable outcome. The government intends to sell the bank to a private sector buyer once financial market conditions have stabilized," said Standard & Poor's credit analyst Richard Barnes. A new senior management team has been appointed to run Northern Rock as a commercial organization at arm's length from the government. Its future strategy has yet to be determined, and will be subject to restrictions set by the European Commission in connection with its expected approval of the government's submission for state aid approval. At the very least, it appears likely that Northern Rock's residential mortgage book will be managed down from the current level. The existing guarantee arrangement -- covering Northern Rock's deposits, wholesale funding, and other specified obligations -- remains in place. The ratings on Northern Rock's covered bond and securitization transactions are unaffected by the nationalization announcement. "The positive outlook reflects the potential for the long-term counterparty credit rating to be upgraded once further information is available on the support that will be provided to Northern Rock while it remains in public ownership. The availability of capital support is a key factor for a potential upgrade, and we will seek to obtain further details on this from the government and/or Northern Rock," added Mr. Barnes. We will also look for information on Northern Rock's future business strategy. A downgrade is not considered likely while the bank remains in government ownership. If/when the bank is returned to the private sector, the ratings will depend on the financial strength of the buyer(s) as well as Northern Rock's stand-alone credit profile at that time. S&P does not exclude the possibility that a buyer cannot be found and the government consequently has to place Northern Rock into run-off. OWL VISUAL: Brings In Administrators from Vantis ------------------------------------------------ Christopher David Stevens and Colin Ian Vickers of Vantis Business Recovery Services were appointed joint administrators of Owl Visual Systems Ltd. (Company Number 02513105) on Feb. 5, 2008. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be reached at: Owl Visual Systems Ltd. 15-16 Horsted Square Bellbrook Industrial Estate Uckfield East Sussex TN22 1QG England Tel: 01825 766 123 Fax: 01825 760 246 POWERHOUSE SAFETY: Hires Joint Administrators from KPMG ------------------------------------------------------- Andrew Stephen McGill and Mark Jeremy Orton of KPMG LLP were appointed joint administrators of Powerhouse Safety International Ltd. (Company Number 03301587) on Feb. 6, 2008. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. The company can be reached at: Powerhouse Safety International Ltd. 2 The Street Old Basing Basingstoke Hampshire RG24 7BH England QUEBECOR WORLD: Wants to Pay Accrued Prepetition Commissions ------------------------------------------------------------ Quebecor World Inc. and its affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's approval to pay accrued prepetition commissions due and owing as of Feb. 1, 2008, to their sales representatives. Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, relates that the Debtors' sales representatives are located in plants or in regional offices throughout North America, Europe and Latin America, and customers are able to coordinate simultaneous printing throughout the Debtors' network through a single sales representative. The Debtors' sales representatives are compensated primarily on a commission basis and are paid from 30 to 90 days after a sale actually occurred. Accordingly, the sales representatives may go for long periods without receiving commissions, at which point they may be entitled to several months worth of commissions. According to Mr. Canning, the Debtors owe 59 sale representatives, as of February 1, US$1,792,993. Of this amount, US$1,234,641 reflects amounts in excess of US$10,950 per employee, with the proposed prepetition payments per employee ranging from US$933 to US$117,868. Mr. Canning says that if the Debtors are unable to immediately make the payments, these commissioned employees may seek alternative employment, which would seriously hamper the Debtors' reorganization efforts. While these payments sought to be authorized exceed the US$10,950 priority limitation per employee contained in Section 507(a)(4) of the Bankruptcy Code, Mr. Canning asserts that these payments are authorized by Section 105 because they are critical to the maintenance of a strong and dedicated work force. The Debtors say they will make available to the Office of the United States Trustee and counsel to the Official Committee of Unsecured Creditors a schedule showing for each employee scheduled to receive sales commissions on Feb. 1, 2008, the amount of payment and the amount of additional compensation previously received by the employee on account of 2007. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. They obtained creditor protection until Feb. 20, 2008. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay expires on Feb. 20, 2008. (Quebecor World Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Europe on Feb. 13, 2008 Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: U.S. Trustee Revises Creditors' Committee --------------------------------------------------------- Diana G. Adams, the United States Trustee for Region 2, changed Abitibi-Consolidated Inc. to Abitibi Consolidated Sales Corp. The Committee is now composed of: (1) Wilmington Trust Company Attn: Suzanne Macdonald 520 Madison Avenue, 33rd floor New York, NY 10022 Tel: (212) 415-0500 (2) Pension Benefit Guaranty Corp. Attn: Suzanne Kelly 1200 K Street, NW Washington, DC 20005 Tel: (212) 326-4070 x6367 (3) The Bank of New York Mellon Attn: David M. Kerr 101 Barclay Street - 8 West New York, NY 10286 Tel: (212) 815-5650 (4) MEGTEC Systems Inc. Attn: Gregory R. Linn 830 Prosper Rd. De Pere, WI 54115 Tel: (920) 337-1568 (5) Abitibi Consolidated Sales Corp. Attn: Madeleine Fequiere 1155 Metcalfe Street, Suite 800 Montreal, Quebec H3B 5H2 CANADA Tel: (514) 394-3638 (6) International Paper Company Attn: Steve K. Dunn 6285 Tri-Ridge Blvd. Loveland, OH 45140 Tel: (513) 965-2943 (7) Cellmark Paper, Inc. Attn: Dominick J. Merole 300 Atlantic Street Stamford, CT 06901 Tel: (203) 251-9026 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. They obtained creditor protection until Feb. 20, 2008. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay expires on Feb. 20, 2008. (Quebecor World Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Europe on Feb. 13, 2008 Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Creditors' Panel Selects Akin Gump as Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Quebecor World Inc.'s Chapter 11 cases seeks permission from the U.S. Bankruptcy Court for the Southern District of New York to retain Akin Gump Strauss Hauer & Feld LLP as its counsel, nunc pro tunc to Jan. 31, 2008. The Committee believes that Akin Gump possesses extensive knowledge and expertise in the areas of law relevant to bankruptcy cases, and that Akin Gump is well qualified to represent the Committee in the Debtors' chapter 11 cases. Akin Gump was founded by Robert S. Strauss and Richard A. Gump in 1945 and is one of the world's largest firms, providing legal services to their clients on a 24/7 basis. Akin Gump has 1,050 lawyers and professionals, and has offices in 15 cities worldwide. Akin Gump has been involved in various chapter 11 cases including: (a) Allegiance Telecom, Inc.; (b) American Commercial Lines LLC; (c) ATA Holdings Corp.; (d) Collins & Aikman Corporation; and (e) Delta Air Lines. As counsel to the Committee, Akin Gump will: (a) advise the Committee with respect to its rights, duties and powers in the Debtors' chapter 11 cases; (b) assist and advise the Committee in its consultations with the Debtors relative to the administration of the chapter 11 cases; (c) assist the Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and in negotiating with holders of claims and equity interests; (d) assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and of the operation of the Debtors' businesses; (e) assist the Committee in its analysis of, and negotiations with, the Debtors or any third party concerning matters related to the assumption or rejection of certain leases of non-residential real property and executory contracts, asset dispositions, financing of other transactions and the terms of one or more plans of reorganization for the Debtors and accompanying disclosure statements and related plan documents; (f) assist and advise the Committee as to its communications to the general creditor body regarding significant matters in the Debtors' chapter 11 cases; (g) represent the Committee at all hearings and other proceedings before the Court and other courts; (h) review and analyze applications, orders, statements of operations and schedules filed with the Court and advise the Committee for any course of action to be taken; (i) advise and assist the Committee with respect to any legislative, regulatory or governmental activities; (j) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interests and objectives; (k) assist the Committee in its review and analysis of the Debtors' various commercial agreements; (l) assist the Committee in developing and implementing protocols for the coordination of the chapter 11 cases with the restructuring cases filed on behalf of the Debtors in Canada, and coordinating with counsel in those cases; (m) prepare, on behalf of the Committee, any pleadings, including motions, memoranda, complaints, adversary complaints, objections and comments; (n) investigate and analyze any claims against the Debtors' non-debtor affiliates; and (o) perform other legal services as may be required by the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code, Bankruptcy Rules or other applicable law. Akin Gump will charge the Committee based on its hourly rates: Billing Category Range ---------------- ----- Partners US$460 - US$1,050 Special Counsel and Counsel US$250 - US$810 Associates US$175 - US$580 Paraprofessionals US$75 - US$250 The current hourly rates of attorneys who will have primary responsibility for providing services to the Committee are: Attorney Hourly Rate -------- ----------- Ira S. Dizengoff US$825 David H. Botter US$775 Shuba Satyaprasad US$580 Alexis Freeman US$530 Ryan C. Jacobs US$500 Joanna F. Newdeck US$460 Christina M. Moore US$410 Brad M. Kahn US$325 Ira S. Dizengoff, Esq., a member of Akim Gump Strauss Hauer & Feld LLP, assures the Court that his firm does not hold any adverse interest and is not related to the Debtors, their creditors, or any parties-in-interest; and that his firm is capable of fulfilling its fiduciary duty to the Committee and the unsecured creditors that the Committee represents. "Based upon information available to me, I believe that Akin Gump is a 'disinterested person' within the meaning of the Bankruptcy Code," Mr. Dizengoff says. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. They obtained creditor protection until Feb. 20, 2008. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay expires on Feb. 20, 2008. (Quebecor World Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Europe on Feb. 13, 2008 Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. RAVEN HEALTHCARE: Brings In Liquidators from Moore Stephens ----------------------------------------------------------- Nigel Price and Mark Elijah Thomas Bowen of Moore Stephens LLP were appointed joint liquidators of Raven Healthcare & Hygiene Ltd. on Feb. 4 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Moore Stephens LLP Beaufort House 94-96 Newhall Street Birmingham B3 1PB England REED AUTOMOTIVE: Joint Liquidators Take Over Operations ------------------------------------------------------- Robert C. Keyes and Paul W. Ellison of Tenon Recovery were appointed joint liquidators of Reed Automotive Ltd. on Jan. 25 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Dukesbridge House 23 Duke Street Reading Berkshire RG1 4SA England REFCO INC: Ex-CEO Phillip Bennett Admits Fraud Charges ------------------------------------------------------ Phillip Bennett, Refco Inc.'s former CEO and chairman, pleaded guilty to 20 charges that includes conspiracy to commit securities fraud, wire fraud, bank fraud, money laundering and making false filings to the U.S. Securities and Exchange Commission, various reports say. "I know I was wrong, and I deeply regret it," Mr. Bennett was quoted by Bloombeg News as saying before Judge Naomi Buchwald of the U.S. District Court for the Southern District of New York. "I take full responsibility for my conduct. I wish to publicly apologize to my family and to all those I've harmed." Under federal sentencing guidelines, Mr. Bennett faces a maximum 315 years in prison and as forfeiture of US$2.4 billion in assets, Bloomberg News reports citing prosecutors. Mr. Bennett's sentencing is set for May 20, 2008, English Business News says. Prosecutors had requested Judge Buchwald to take Mr. Bennett into immediate custody, saying that US$50 million bail he had posted was insufficient, English Business News relates. Judge Buchwald, however, rejected the request after raising the bail amount, Bloomberg News reports. Mr. Bennett was set to face trial on March 17, 2008, along with Robert Trosten, Refco's former chief financial officer, and Tone Grant, Refco's former president, Bloomberg News reports. Messrs. Trosten and Grant have pleaded not guilty to helping Mr. Bennett. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. SMITH & FRANCIS: Taps Joint Administrators from Vantis ------------------------------------------------------ Geoffrey Paul Rowley and Nicholas Hugh O'Reilly of Vantis Business Recovery Services were appointed joint administrators of Smith & Francis Ltd. (Company Number 02084343) on Feb. 7, 2008. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be reached at: Smith & Francis Ltd. 13-15 New Road Porthcawl Mid Glamorgan CF36 5DL Wales Tel: 01656 784 171 Fax: 01656 771 746 SPIRIT AEROSYSTEMS: Inks Service Contract with Cathay Pacific ------------------------------------------------------------- Spirit AeroSystems Inc. has been awarded a contract to provide overhaul, repair, and modification services for Cathay Pacific Airways' fleet of 777 Trent 800 thrust reversers. Spirit, the Trent 800 nacelle and thrust reverser original production manufacturer, will oversee the administration, supply the rotable assets, and team with Hong Kong Aircraft Engineering Company Limited to perform the actual service work. Repairs and overhauls for this Cathay Pacific program will be supported from both Spirit's Wichita repair station and HAECO's component workshop in Tseung Kwan O. "Spirit AeroSystems is pleased to contract with Cathay Pacific to overhaul their entire fleet of Trent 800 thrust reversers. This relationship with HAECO will enable us to reduce logistics and transportation for this program while providing optimal support to our customer," Carolyn Harms, vice president -- general manager of Spirit's Aftermarket Customer Support business unit, explained. For Spirit, the program is the latest example of its growing maintenance, repair, and overhaul presence to complement its established original production manufacturer position. Headquartered in Wichita, Kansas, Spirit AeroSystems Inc. -- http://www.spiritaero.com/-- with facilities in Wichita, Tulsa and McAlester, Oklahoma, and Prestwick, Scotland, designs and manufactures fuselages, struts, nacelles, thrust reversers and other complex components for Boeing and Airbus. * * * As reported in the Troubled Company Reporter on Jan. 21, 2008, Standard & Poor's Ratings Services revised its outlook on the company's subsidiary, Spirit AeroSystems Inc., to negative from positive. At the same time, Standard & Poor's affirmed Spirit AeroSystems Inc.'s BB corporate credit rating. TANNER KROLLE: Names Joint Administrators from Baker Tilly ---------------------------------------------------------- Geoffrey Lambert Carton-Kelly and Michael David Rollings of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of Tanner Kroelle Ltd. (Company Number 04380938) on Feb. 8, 2008. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. The company can be reached at: Tanner Krolle Ltd. 43 Berkeley Square London W1J 5AP England Tel: 020 7493 7853 Fax: 020 7691 7898 UNIT HEATING: Appoints Liquidators from Baker Tilly --------------------------------------------------- J. D. Ariel and A. White of Baker Tilly Restructuring and Recovery LLP were appointed joint liquidators of Unit Heating Systems Ltd. on Feb. 8 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Baker Tilly Restructuring and Recovery LLP 12 Gleneagles Court Brighton Road Crawley West Sussex RH10 6AD England VANILLA SHOES: Hires Liquidators from Vantis -------------------------------------------- Christopher David Stevens and Colin Ian Vickers of Vantis Business Recovery Services were appointed joint liquidators of Vanilla Shoes Ltd. (t/a Vanilla) on Feb. 7 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Vantis Business Recovery Services Fourth Floor Southfield House 11 Liverpool Gardens Worthing West Sussex BN11 1RY England VOGUE ESTATES: Claims Filing Period Ends April 8 ------------------------------------------------ Creditors of Vogue Estates (U.K.) Ltd. have until April 8, 2008 to detail their names and addresses (and solicitors if applicable) together with particulars of their debts or claims, in writing, or in person, to: Duncan R. Beat Liquidator Tenon Recovery 75 Springfield Road Chelmsford Essex CM2 6JB England Duncan R. Beat of Tenon Recovery was appointed liquidator of the company on Feb. 8 for the creditors' voluntary winding-up procedure. VOGUE MARINE: Claims Filing Period Ends April 8 ----------------------------------------------- Creditors of Vogue Marine Ltd. have until April 8, 2008 to detail their names and addresses (and solicitors if applicable) together with particulars of their debts or claims, in writing, or in person, to: Duncan R. Beat Liquidator Tenon Recovery 75 Springfield Road Chelmsford Essex CM2 6JB England Duncan R. Beat of Tenon Recovery was appointed liquidator of the company on Feb. 8 for the creditors' voluntary winding-up procedure. WHISTLEJACKET CAPITAL: S&P Junks Issuer Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services on Feb. 15, 2008, lowered its issuer credit rating on Whistlejacket Capital Ltd., the structured investment vehicle that was created as a result of the merger of Whistlejacket Capital Ltd. and Whistlejacket Capital LLC with White Pine Corp. Ltd. and White Pine Finance LLC. Standard & Poor's also lowered its ratings on Whistlejacket's commercial paper and medium-term notes. The issuer credit, CP, and MTN ratings remain on CreditWatch with negative implications, where they were placed Feb. 12, 2008. Standard & Poor's also lowered its ratings on the capital notes issued by Whistlejacket and White Pine. The ratings on the capital notes also remain on CreditWatch with negative implications, where they were placed Dec. 7, 2007. On Feb. 15, 2008, S&P received notification that the receiver had elected not to pay the MTNs maturing Feb. 15, 2008. These notes have a three-day grace period and, therefore, the payment default will take effect on Thursday, Feb. 21, 2008. The 'CCC-' rating on the MTNs reflects S&P's analysis of the information that S&P received from the receiver stating that the SIV sponsor, Standard Chartered Bank, has made a restructuring proposal. The rating reflects S&P's view that there is uncertainty associated with how events will unfold next week as the receiver interacts with the courts to address the insolvency of Whistlejacket. As reported in Feb. 12, 2008, Whistlejacket breached the 50% net asset value test. As a result, Standard Chartered Bank's efforts to establish a restructuring had to be referred through the receiver. Ratings Lowered and Remaining on Creditwatch Negative Whistlejacket Capital Ltd. Rating ------ To From -- ---- Issuer credit CCC-/Watch Neg BB/Watch Neg/B CP C/Watch Neg B/Watch Neg MTNs CCC-/Watch Neg BB/Watch Neg Capital notes CC/Watch Neg CCC-/Watch Neg White Pine Corp. Ltd. Rating ------ To From -- ---- Capital notes CC/Watch Neg CCC-/Watch Neg WHITE PINE: S&P Downgrades Rating on Capital Notes to CC -------------------------------------------------------- Standard & Poor's Ratings Services on Feb. 15, 2008, lowered its issuer credit rating on Whistlejacket Capital Ltd., the structured investment vehicle that was created as a result of the merger of Whistlejacket Capital Ltd. and Whistlejacket Capital LLC with White Pine Corp. Ltd. and White Pine Finance LLC. Standard & Poor's also lowered its ratings on Whistlejacket's commercial paper and medium-term notes. The issuer credit, CP, and MTN ratings remain on CreditWatch with negative implications, where they were placed Feb. 12, 2008. Standard & Poor's also lowered its ratings on the capital notes issued by Whistlejacket and White Pine. The ratings on the capital notes also remain on CreditWatch with negative implications, where they were placed Dec. 7, 2007. On Feb. 15, 2008, S&P received notification that the receiver had elected not to pay the MTNs maturing Feb. 15, 2008. These notes have a three-day grace period and, therefore, the payment default will take effect on Thursday, Feb. 21, 2008. The 'CCC-' rating on the MTNs reflects S&P's analysis of the information that S&P received from the receiver stating that the SIV sponsor, Standard Chartered Bank, has made a restructuring proposal. The rating reflects S&P's view that there is uncertainty associated with how events will unfold next week as the receiver interacts with the courts to address the insolvency of Whistlejacket. As reported in Feb. 12, 2008, Whistlejacket breached the 50% net asset value test. As a result, Standard Chartered Bank's efforts to establish a restructuring had to be referred through the receiver. Ratings Lowered and Remaining on Creditwatch Negative Whistlejacket Capital Ltd. Rating ------ To From -- ---- Issuer credit CCC-/Watch Neg BB/Watch Neg/B CP C/Watch Neg B/Watch Neg MTNs CCC-/Watch Neg BB/Watch Neg Capital notes CC/Watch Neg CCC-/Watch Neg White Pine Corp. Ltd. Rating ------ To From -- ---- Capital notes CC/Watch Neg CCC-/Watch Neg * Fitch Says European CMBS Performance Remained Stable in 2007 -------------------------------------------------------------- Fitch Ratings disclosed in a report published Monday that the overall performance of European CMBS transactions in 2007 remained relatively stable. Throughout the year, 463 tranches have been affirmed, 62 upgraded and only 10 downgraded. Furthermore, 93% of all Outlooks assigned to European CMBS tranches are currently Stable, 4% Positive and 2% Negative. The remaining 1% is on Rating Watch Negative (RWN), due to credit- linkage to entities on RWN. The reports also gives an update on the underperforming loans and transactions introduced in last quarter's performance update, as well as an overview of the latest interest deferrals, available funds cap hits, liquidity facility drawings and the circumstances which lead to such actions. The involved transactions (which only form a small fraction of all current CMBS transactions) include issuances from the DECO, Taurus and Titan Europe conduits, as well as one-off transactions, such as Deutsche Hypothekenbank (Actiengesellschaft), Hannover. Finally, the report describes the latest developments to influence the CMBS market, such as the review of all UK transactions originated in 2006 and 2007 with respect to the ongoing downturn of the UK property market and the potential effects of the German Business Tax Reform 2008 on German CMBS transactions. To date, 38 UK transactions have been reviewed to assess the refinance risk related to the loans forming the collateral. Out of 230 tranches, only five tranches in four transactions (equalling 2% by number) have had their Outlooks revised to Negative from Stable. This was due to the concerns over the ability of certain borrowers in these transactions to repay their debt at loan maturity via refinancing or property sale, given the current state of the financial and property markets. Fitch intends to update this report quarterly, providing the latest rating actions, CMBS trends and developments, especially for watch-listed loans and distressed transactions. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jason Nieva, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Patrick Abing and Marites Claro, Editors. Copyright 2008. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *