T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, February 25, 2008, Vol. 9, No. 41 Headlines A U S T R I A BOS COMPUTERHANDEL: Claims Registration Period Ends March 21 ELEKTROTECHNIK4YOU LLC: Claims Registration Period Ends March 26 HEW MASCHINENPRODUKTION: Claims Registration Ends March 26 JOZSEF FENYVESI: Claims Registration Period Ends March 19 KAHRAMAN TRANSPORT: Claims Registration Period Ends March 17 KW IMMOBILIEN: Claims Registration Period Ends April 8 B E L G I U M CHIQUITA BRANDS: S&P Rates on US$400 Million Senior Loan at B+ URS CORP: Bags Construction Management Contract from NY SCA F R A N C E DELPHI CORP: Hephaestus Unit Wins Bearings Business Auction DELPHI CORP: Gets Court Nod for US$2.7BB Steering Business Sale FEDERAL-MOGUL: Says Objections to Plan A Changes are Meritless G E R M A N Y BSC ENTSORGUNG: Claims Registration Ends March 17 CG CONCEPT: Claims Registration Period Ends March 7 CITYBACK GMBH: Claims Registration Ends March 17 DANLU FERTIGHAUS: Claims Registration Ends March 17 DDH TROCKENBAU: Claims Registration Ends March 17 ENERVATION GMBH: Claims Registration Ends March 17 FRUCHTWINKEL HANDELS: Claims Registration Ends March 17 GRUNDSTUECKSGESELLSCHAFT OBJEKT: Claims Period Ends March 10 HORN MUENCHEN: Claims Registration Period Ends March 10 IKB DEUTSCHE: Restates Figures for Year Ended March 31, 2007 KOEHLER & KRENZER: Unit Sells 74.9% Marcona-Kleidung Stake LEVENTIC ABBRUCHUNTERNEHMEN: Claims Registration Ends March 14 LINDENHOF GMBH: Claims Registration Period Ends March 14 LMT-LUEFTUNGSMONTAGETECHNIK: Claims Registration Ends March 14 LZ SYNAPSIS: Claims Registration Period Ends March 14 MAX. SICHERHEITSFAHRSCHULE: Claims Period Ends March 10 POLLAND GMBH: Claims Registration Period Ends March 14 POLLAND VERWALTUNGS: Claims Registration Period Ends March 14 RKW IMMOBILIEN: Claims Registration Period Ends March 14 ROLITH BAU: Claims Registration Period Ends March 14 STAN TEC: Claims Registration Period Ends March 14 TALISMAN-3 FINANCE: Fitch Ups Ratings & Says Outlook is Positive TECHNOTEAM GMBH: Claims Registration Period Ends March 14 TELEMEDIA GMBH: Claims Registration Period Ends March 11 TK-BAU GMBH: Claims Registration Period Ends March 14 UHG UNIVERSAL: Claims Registration Period Ends March 14 G R E E C E WIND HELLAS: Fitch Affirms 'B' Ratings with Stable Outlook I R E L A N D SANMINA-SCI: PC Business Exit Won't Affect S&P's B+ Rating SAPHIR FINANCE: Moody's Cuts Rating on GBP400 Million Notes * Fitch May Act Selectively on UK, Irish, Spanish Lender Ratings I T A L Y ALITALIA SPA: AirOne SpA Appeals Lazio Court Ruling FIAT SPA: Expects to Sell 8,000 High Performance Cars Annually PARMALAT SPA: Banca Monte dei Paschi Settles for EUR79.5 Million TISCALI SPA: Market Underwrites EUR150 Million Capital Increase * Fitch Says Italian Life Market's Rating Outlook is Negative K A Z A K H S T A N AGROTECHINVEST LLP: Creditors Must File Claims by March 25 ALTYNAI LLP: Claims Deadline Slated for March 18 AMADEI INVEST: Claims Filing Period Ends March 21 BALTIK LLP: Creditors' Claims Due on March 25 BDO & NAKYP: Claims Registration Ends March 21 KOP-STROY LLP: Creditors Must File Claims by March 21 TAMYZ-K LLP: Claims Deadline Slated for March 18 USENSTROY SERVICE: Claims Filing Period Ends March 18 K Y R G Y Z S T A N DIGESTA LLC: Claims Filing Period Ends March 14 SWEET LIFE: Creditors Must File Claims by March 18 R U S S I A COMSTAR-UNITED: Reveals Development Strategy for Southern Russia EVRAZ GROUP: Fitch Affirms Ratings on Planned Delong Acquisition FACTORY OF TRAILED: Asset Sale Slated for March 4 MAGNITOGORSK IRON: Shareholders' Meeting Slated for April 25 MOBILE TELESYSTEMS: To Extend Product Portfolio with Microsoft MTS-COMPLECT: Court Names S. Chizhov as Insolvency Manager NOMOS-BANK: Fitch Takes Rating Action on RUR3 Billion Bond OIL-PROCESSING CO: Court Starts Bankruptcy Supervision Procedure SPETS-STROY-SERVICE: Court Starts Bankruptcy Supervision Process UST’-LABINSK-SORT-SEM-OVOSH: Claims Filing Period Ends March 12 VIMPEL-COMMUNICATIONS: S&P Holds BB+ LT Corporate Credit Rating VOLGA-SPIRIT: Tula Bankruptcy Hearing Slated for June 4 VORONEZHSKAYA DIARY: Creditors Must File Claims by March 12 YUKAMENSKIY: Court Names A. Chernov as Insolvency Manager * Fitch Says Ore Price Rise Could Impact Steelmakers' Profits S P A I N CABLEUROPA SAU: S&P Holds Long-Term Corporate Credit Rating at B * Fitch May Act Selectively on UK, Irish, Spanish Lender Ratings S W I T Z E R L A N D AURAMED INTERNATIONAL: Creditors Must File Claims by Feb. 29 CAVITEC JSC: Creditors' Liquidation Claims Due by March 31 F. STUDER JSC: Creditors' Liquidation Claims Due by Feb. 29 G + M GERUSTBAU: Creditors' Liquidation Claims Due by Feb. 28 JOHANN WIESER: Creditors' Liquidation Claims Due by Feb. 28 MOULIN & CIE: Creditors' Liquidation Claims Due by Feb. 28 NEVANEX LTD: Creditors' Liquidation Claims Due by March 14 PA PAPIER: Creditors' Liquidation Claims Due by Feb. 28 RIDA LLC: Creditors' Liquidation Claims Due by Feb. 29 SOMENTE HANDEL: Creditors' Liquidation Claims Due by Feb. 28 T U R K E Y BANK TURANALEM: Changes Name to BTA Bank JSC U K R A I N E GORYN-INVEST LLC: Creditors Must File Claims by March 3 KOLODIANKA BACON: Creditors Must File Claims by March 3 MAGNUS LLC: Creditors Must File Claims by March 3 MINUET LLC: Creditors Must File Claims by March 3 ODESSKOYE LLC: Claims Filing Deadline Set March 3 OLAM-INVEST LLC: Creditors Must File Claims by March 3 REMINO LLC: Creditors Must File Claims by March 3 SLAVUTA WOLLEN-GOODS: Claims Filing Deadline Set March 3 VECTOR-7 LLC: Creditors Must File Claims by March 3 U N I T E D K I N G D O M 2K2 ELECTRONIC: Appoints Joint Administrators from Menzies ABITIBIBOWATER INC: Reschedules Release of 2007 Results ABITIBIBOWATER INC: Fitch Cuts Issuer Default Rating to CCC BRITISH AIRWAYS: Enters Conciliation Process Over Strike Action CHRYSLER LLC: Plastech to Continue Supplying Parts Until Feb. 27 CHRYSLER LLC: Plastech Needs Tooling to Keep Afloat, Court Says CHRYSLER LLC: Magna's Hopes of Acquiring Tooling Fade CRS CONTRACT: Brings In Joint Administrators from PKF DANE PAPER: Names Joint Administrators from Moore Stephens DESTINATIONS ESTATE: Brings In Liquidators from Tenon Recovery EVESHAM TECHNOLOGY: PCC Intends to Sell Brand After Deal GLADE SOLUTIONS: Undergoing Winding-Up Procedures HOURGLASS DESIGN: High Court Closes Advertising Firm for Fraud LEEDS UNITED: Calls In Liquidators from KPMG MEAD LTD: Taps Liquidators from Moore Stephens NO CATCH: Fish Farm Placed Into Administration NORTHERN ROCK: Nationalization Bill Becomes Law NORTHERN ROCK: Fitch Says Nationalization Won't Impact Granite PETROLEOS DE VENEZUELA: To Operate Dacion Field with ENI PETROLEOS DE VENEZUELA: Needs Exxon Nod to Sell Chalmette Stake PETROLEOS DE VENEZUELA: Asks Exxon to Stop Asset Freeze Scheme PORTWAY PROPERTY: Hires Liquidators from Vantis SRT ELECTRICAL: Taps Joint Administrators from Begbies Traynor SUDBURYS PANEL: Brings In Tenon to Administer Assets SWIFT FM: Appoints Smith & Williamson to Administer Assets TATA MOTORS: To Roll Out Nano in October, Managing Director Says TATA MOTORS: Starts Selling Sumo Grande in Domestic Market TIF COLLECTIONS: Appoints Liquidators from Grant Thornton WEST CORP: Ratings Unaffected by Genesys Acquisition, S&P Says WHISTLEJACKET CAPITAL: Standard Chartered Withdraws Proposals WHISTLEJACKET CAPITAL: Moody's Cuts Ratings on Debt Programmes * Six Companies Put Under Liquidation by Court * Fitch May Act Selectively on UK, Irish, Spanish Lender Ratings * BOND PRICING: For the Week Feb. 17 to Feb. 21, 2008 ********* ============= A U S T R I A ============= BOS COMPUTERHANDEL: Claims Registration Period Ends March 21 ------------------------------------------------------------ Creditors owed money by LLC BOS Computerhandel (FN 32025x) have until March 21, 2008, to file written proofs of claim to court- appointed estate administrator Guenther Hoedl at: Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Austria Tel: 513 16 55 Fax: 513 55 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on April 4, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 1, 2008 (Bankr. Case No. 28 S 19/08k). ELEKTROTECHNIK4YOU LLC: Claims Registration Period Ends March 26 ---------------------------------------------------------------- Creditors owed money by LLC Elektrotechnik4you (FN 283829x) have until March 26, 2008, to file written proofs of claim to court- appointed estate administrator Katharina Twaroch-Nowak at: Mag. Katharina Twaroch-Nowak c/o Dr. Walter Kainz Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei.twaroch@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on April 9, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 31, 2008 (Bankr. Case No. 2 S 16/08b). Walter Kainz represents Mag. Twaroch-Nowak in the bankruptcy proceedings. HEW MASCHINENPRODUKTION: Claims Registration Ends March 26 ---------------------------------------------------------- Creditors owed money by LLC HEW Maschinenproduktion (FN 257172w) have until March 26, 2008, to file written proofs of claim to court-appointed estate administrator Ferdinand Bruckner at: Dr. Ferdinand Bruckner c/o Dr. Elisabeth Zonsics-Kral Schubertstrasse 10/3/5/9 2100 Korneuburg Austria Tel: 02262/72 9 39 Fax: 02262/72 9 39 15 E-mail: bruckner@raedrb-drz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on April 9, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Korneuburg, Austria, the Debtor declared bankruptcy on Jan. 31, 2008 (Bankr. Case No. 36 S 10/08z). Elisabeth Zonsics-Kral represents Dr. Bruckner in the bankruptcy proceedings. JOZSEF FENYVESI: Claims Registration Period Ends March 19 --------------------------------------------------------- Creditors owed money by LLC Jozsef FENYVESI (FN 294471x) have until March 19, 2008, to file written proofs of claim to court- appointed estate administrator Helmut Platzgummer at: Dr. Helmut Platzgummer c/o Dr. Wolfgang Leitner Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Fax: 533 19 39 39 E-mail: helmut.platzgummer@law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on April 2, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 31, 2008 (Bankr. Case No. 4 S 15/08w). Wolfgang Leitner represents Dr. Platzgummer in the bankruptcy proceedings. KAHRAMAN TRANSPORT: Claims Registration Period Ends March 17 ------------------------------------------------------------ Creditors owed money by LLC KAHRAMAN Transport (FN 276299y) have until March 17, 2008, to file written proofs of claim to court- appointed estate administrator Katharina Pitzal at: Mag. Katharina Pitzal c/o Dr. Hannelore Pitzal Paulanergasse 9 1040 Vienna Austria Tel: 587 31 11, 587 31 12 Fax: 587 87 50-50 E-Mail: office@pitzal-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 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 Feb. 1, 2008 (Bankr. Case No. 3 S 10/08b). Hannelore Pitzal represents Mag. Pitzal in the bankruptcy proceedings. KW IMMOBILIEN: Claims Registration Period Ends April 8 ------------------------------------------------------ Creditors owed money by LLC KW Immobilien (FN 249793v) have until April 8, 2008, to file written proofs of claim to court- appointed estate administrator Guenther Grassner at: Dr. Guenther Grassner c/o Dr. Norbert Mooseder Suedtirolerstrasse 4-6 4020 Linz Austria Tel: 0732/77 08 15 Fax: 770816 E-mail: lawfirm@gltp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on April 22, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Steyr Hall 7 Second Floor Steyr Austria Headquartered in Wolfern, Austria, the Debtor declared bankruptcy on Feb. 1, 2008 (Bankr. Case No. 14 S 13/08x ). Norbert Mooseder represents Dr. Grassner in the bankruptcy proceedings. ============= B E L G I U M ============= CHIQUITA BRANDS: S&P Rates on US$400 Million Senior Loan at B+ -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to LLC's US$400 million senior secured credit facility. The facility consists of a proposed US$200 million six-year senior secured revolving credit facility and US$200 million six- year senior secured term loan, and is rated 'B+' (two notches above the corporate credit rating on parent holding company Chiquita Brands International Inc.), with a recovery rating of '1', indicating the expectation for very high (90%-100%) recovery in the event of a payment default. URS CORP: Bags Construction Management Contract from NY SCA ----------------------------------------------------------- URS Corp. has been awarded a contract by the New York City School Construction Authority to provide construction management services for the Authority's Mentor Program, which is designed to increase, facilitate and encourage the participation of minority, women-owned and locally-based enterprises in school construction projects. Along with its subconsultants on the contract, Noble Strategy LLC and Bradford Construction Company, URS will mentor these contractors so they may learn and improve on the skills necessary to take on larger and more complex projects. The goal is to graduate Mentor contractors out of the program so they may be able to obtain bonding and financing to pursue projects outside of SCA's Mentor Program; provide technical assistance and training in general business skills, organizational and personnel development, and marketing and business development. In addition, the company will help oversee the Authority's Small Contractor Lending Program. The three-year contract has a maximum value of US$100 million to the URS team. Commenting on the contract award, Gary V. Jandegian, President, URS Division, said: "We look forward to assisting the SCA with this important program, which has successfully aided in the growth and development of minority, women-owned and New York City-based construction firms. URS has worked closely with the SCA since the inception of the agency in 1988, providing construction management as an extension of SCA staff on numerous school construction programs, as well as supporting the Authority's Mentoring Program. Recently, we were named 'Construction Manager of the Year,' by the SCA for these efforts. URS is one of the largest engineering design firms in the world and has helped thousands of public and private sector enterprises successfully complete large, complex infrastructure assignments. This contract provides a great opportunity for us the share the knowledge and experience we have gained." Headquartered in San Francisco, California, URS Corp. (NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program and construction management, and operations and maintenance services for transportation, facilities, environmental, water/wastewater, industrial infrastructure and process, homeland security, installations and logistics, and defense systems. The company operates in more than 20 countries with approximately 29,500 employees providing engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries. The company also has offices in Argentina, Australia, Belgium, China, France, Germany, and Mexico, among others. * * * In December 2007, Moody's Investors Service downgraded the Corporate Family Rating of URS Corporation to Ba2 from Ba1 following the company's acquisition of Washington Group International, Inc. Moody's said the ratings outlook is stable. =========== F R A N C E =========== DELPHI CORP: Hephaestus Unit Wins Bearings Business Auction ----------------------------------------------------------- Delphi Corporation entered into a purchase agreement with Kyklos, Inc., a wholly owned subsidiary of Hephaestus Holdings, Inc., for the sale of its bearings business. The agreement follows Kyklos being declared the successful bidder in an auction conducted on Feb. 21, 2008, as part of a sale process under Section 363 of the United States Bankruptcy Code. As reported in the Troubled Company Reporter on Jan. 18, 2008, Delphi Automotive Systems LLC and Delphi Technologies, Inc., debtor-subsidiaries of Delphi Corp., planned to sell their global bearings business to ND Acquisition Corp., or to another party submitting a higher and better offer for the business. ND Acquisition, a wholly owned subsidiary of private equity investment firm Resilience Capital Partners LLC, agreed to submit a stalking horse bid of US$44,200,000, subject to adjustments, for the Bearings Business. The sale of the bearings business is subject to certain customary closing conditions, including approval by the U.S. Bankruptcy Court for the Southern District of New York at a hearing on March 19, 2008. The closing of this transaction is targeted to occur on or before April 30, 2008. 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. DELPHI CORP: Gets Court Nod for US$2.7BB Steering Business Sale --------------------------------------------------------------- Delphi Corporation received final approval from the U.S. Bankruptcy Court for the Southern District of New York to sell its global steering and halfshaft business to Steering Solutions Corporation, an affiliate of Platinum Equity, LLC. The sale includes all facets of the US$2.7 billion global steering and halfshaft business, which produces electric and hydraulic steering systems, steering columns, halfshafts and constant velocity joints for original equipment manufacturers around the world. The final closing of the global steering business sale is targeted for March 31, 2008. More information on the final sale approval and the court filing is available at http://www.delphidocket.com/ 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. FEDERAL-MOGUL: Says Objections to Plan A Changes are Meritless -------------------------------------------------------------- Federal-Mogul Corp. and its reorganized debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to: (a) approve the Plan A Settlement, which is attached as an addendum to the Debtors' Fourth Amended Joint Plan of Reorganization; and (b) overrule all objections to the Plan A Settlement modifications. The Reorganized Debtors further ask the Court to deny certain Plan A Objectors' requests for further discovery in connection with the Plan A Modifications. Few of the "lengthy" objections to the recent modifications to the Plan A Settlement have anything to do with the Modifications themselves, James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, contends. Most just re-hash arguments concerning the construction and applicability of Section 524(g) of the Bankruptcy Code, most of which have already been dealt with by the Reorganized Debtors and rejected by the Court, Mr. O'Neill says. The Objections that do concern the Plan A Modifications are meritless, the Reorganized Debtors argue. The Reorganized Debtors maintain that the Plan A Modifications make Plan A entirely neutral as to the objecting insurers and PepsiAmericas Inc. Thus, the objecting insurers and PepsiAmericas have no standing to object to Court approval of Plan A. Contrary to the Plan A Objectors' contentions, third party injunctive relief depends on (i) satisfying a set of precise, statutorily-defined relationships, and (ii) a judicial assessment of a third party's contribution to a trust that benefits present and future asbestos claimants, not the Debtors, Mr. O'Neill asserts. "These are the only necessities for third party injunctive relief under Section 524(g)." The Plan A Objectors, according to Mr. O'Neill, entirely ignored the fact that Congress enacted Section 524(g) not only for the benefit of reorganizing companies, but equally to promote the interests of victims of asbestos exposure. Congress, he points out, determined that extending the availability of a Section 524(g) injunction to third parties would serve to maximize the amount of money available to pay existing and future asbestos claimants. Mr. O'Neill argues that contradictory to DaimlerChrysler Corp.'s and Volkswagen of America, Inc.'s assertions, the text of Section 524(g)(1)(A) does not mandate that a third party injunction must enhance a debtor's fresh start. "The plain meaning of Section 524(g)(1)(A) is that it permits the court to enter an injunction that enjoins activities beyond those covered by a discharge injunction under Section 524(a), so long as the other requirements of Section 524(g) are satisfied. To construe Section 524(g)(1) as restricting the issuance of a third party injunction to those instances that further a debtor's fresh start or discharge, as suggested by DaimlerChrysler and Volkswagen, is contrary to the fundamental principle of statutory construction that a court must interpret a statute, if possible, so as to give meaning to every provision," Mr. O'Neill elaborates. Section 524(g) also does not condition the issuance of a third party injunction on a showing that such an injunction is necessary to a debtor's reorganization, Mr. O'Neill continues. He points out that the Court has already determined that "Section 524(g)(a)(ii) does not require the necessity element with respect to issuing that injunction as to third parties." Certain objecting insurers themselves concede that "necessity" does not constitute a requisite for issuing a Section 524(g) injunction in favor of non-debtors, Mr. O'Neill relates. The Reorganized Debtors maintain that Pneumo Abex LLC, Cooper Industries, LLC, and the rest of the Pneumo Protected Parties qualify for a Section 524(g) injunction because they are alleged to be liable for asbestos-related claims arising out of Abex Corp.'s brake business. Those asbestos claims comprise claims against the debtor within the meaning of Section 524(g)(4)(A)(ii), Mr. O'Neill asserts. Certain of the Plan A Objectors contended that Court approval of Plan A is an impermissible modification of a substantially confirmed Chapter 11 plan, and thus, prohibited by Section 1127 of the Bankruptcy Code. "The underlying premises of this objection are demonstrably incorrect, both as a matter of law and as a matter of fact," Mr. O'Neill argues. He emphasizes that "the Plan A Settlement is not a modification of the [Debtors' confirmed Fourth Amended Joint Plan of Reorganization] within the meaning of Section 1127(b). Rather, Plan A is entirely consistent with, and does not contradict, affect, amend, alter, or re-open the [Fourth Amended] Plan in any respect . . . It is of no moment that the [Fourth Amended] Plan has been substantially consummated." "Section 1127(b) does not apply where the Court is not asked to modify a confirmed plan, but simply to approve a settlement that is consistent with and contemplated by the Plan. Approving the Plan A Settlement and extending the injunction to the Pneumo Protected Parties is no different, in principle, than issuing an injunction to a settling insurer post-confirmation pursuant to the confirmed Fourth Amended Plan," Mr. O'Neill explains. Several Plan A Objectors, including Mt. McKinley Insurance Company and PepsiAmericas, argued that the Plan A Settlement documents still embody an assignment of the Pneumo Asbestos Insurance Policies to the Asbestos Personal Injury Trust because the Trust is to own the equity interests in Pneumo Abex LLC. Mr. O'Neill clarifies that Plan A has always embodied the contribution by PCT International Holdings Inc., Pneumo Abex's current owner, to the Asbestos Trust of its membership interests in Pneumo Abex. "When Plan A is implemented, the Trust will own Pneumo Abex. Nothing in Plan A changes this long-standing aspect of the deal. It is a fundamental axiom of corporate law that ownership of the equity interests in an entity does not constitute ownership of the entity's individual assets, and a transfer of ownership interests does not constitute a sale of the entity's assets." The elimination of certain objected-to provisions, as pointed out by Mt. McKinley and PepsiAmericas, is not a basis for extending these proceedings by months to take additional discovery, Mr. O'Neill contends. "It is impossible to see how the deletion of certain Plan A provisions, which were done in response to the Court's and the Plan A Objectors' own comments, could conceivably give rise to any new issues of fact that warrant additional discovery. "The Court should see through the [Plan A] Objectors' transparent tactics and overblown rhetoric, and approve the Plan A Settlement." Plan A is fair, equitable, and fully satisfies the requirements of Section 524(g) and Rule 9019 of the Federal Rules of Bankruptcy Procedure, Mr. O'Neill avers. About Federal-Mogul Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (OTCBB: FDMLQ) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has operations in other locations which includes, among others, Mexico, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. * * * As reported in the Troubled Company Reporter-Europe on Jan. 11, 2008, Moody's Investors Service confirmed the ratings of the reorganized Federal-Mogul Corporation -- Corporate Family Rating, Ba3; Probability of Default Rating, Ba3; and senior secured bank credit facilities, Ba2. The outlook is stable. The financing for the company's emergence from Chapter 11 bankruptcy protection has been funded in line with the structure originally rated by Moody's in a press release dated Nov. 28, 2007. As reported in the Troubled Company Reporter-Europe on Jan. 8, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Southfield, Michigan-based Federal- Mogul Corp. following the company's emergence from Chapter 11 on Dec. 27, 2007. The outlook is stable. ============= G E R M A N Y ============= BSC ENTSORGUNG: Claims Registration Ends March 17 ------------------------------------------------- Creditors of BSC Entsorgung GmbH & Co. KG i. L. have until March 17, 2008 to register their claims with court-appointed insolvency manager Prof. Rolf Rattunde. Creditors and other interested parties are encouraged to attend the meeting at 2:10 p.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 Potsdam Hall 301 Third Floor Nebenstelle Lindenstrasse 6 14467 Potsdam 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: Prof. Rolf Rattunde Kurfuerstendamm 26 a 10719 Berlin Germany The District Court of Potsdam opened bankruptcy proceedings against BSC Entsorgung GmbH & Co. KG i. L. on Feb. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BSC Entsorgung GmbH & Co. KG i. L. Dorfstrasse 50 14913 Niedergoersdorf Germany CG CONCEPT: Claims Registration Period Ends March 7 --------------------------------------------------- Creditors of CG Concept Gruppe GmbH & Co. KG have until March 7, 2008, to register their claims with court-appointed insolvency manager Dr. Mark Zeuner. Creditors and other interested parties are encouraged to attend the meeting at 9:45 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 Schwerin Hall 7 Demmlerplatz 14 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. Mark Zeuner Beethovenstr. 13 19053 Schwerin Germany The District Court of Schwerin opened bankruptcy proceedings against CG Concept Gruppe GmbH & Co. KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CG Concept Gruppe GmbH & Co. KG Ringstrasse 9 19258 Boizenburg Germany CITYBACK GMBH: Claims Registration Ends March 17 ------------------------------------------------ Creditors of Cityback GmbH have until March 17, 2008 to register their claims with court-appointed insolvency manager Matthias Kielwein. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 28, 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 Mannheim Hall 232 Second Floor Schloss 68149 Mannheim 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: Matthias Kielwein O 6, 7 68161 Mannheim Tel: 0621/1569830 Germany The District Court of Mannheim opened bankruptcy proceedings against Cityback GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cityback GmbH Attn: Viorica Tehei, Manager Bachgasse 46 69502 Hemsbach Germany DANLU FERTIGHAUS: Claims Registration Ends March 17 --------------------------------------------------- Creditors of DANLU Fertighaus GmbH have until March 17, 2008 to register their claims with court-appointed insolvency manager Prof. Rolf Rattunde. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.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 Potsdam Hall 301 Third Floor Nebenstelle Lindenstrasse 6 14467 Potsdam 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: Prof. Rolf Rattunde Kurfuerstendamm 26 a 10719 Berlin Germany The District Court of Potsdam opened bankruptcy proceedings against DANLU Fertighaus GmbH on Feb. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DANLU Fertighaus GmbH Attn: Herrn Uwe Lucht, Manager Wasserturm 6 14624 Dallgow-Doeberitz Germany DDH TROCKENBAU: Claims Registration Ends March 17 ------------------------------------------------- Creditors of DDH Trockenbau GmbH have until March 17, 2008 to register their claims with court-appointed insolvency manager Karl-Heinrich Lorenz. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 28, 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 Mannheim Hall 232 Second Floor Schloss 68149 Mannheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karl-Heinrich Lorenz Theodor Heuss-Anlage 12 68165 Mannheim Germany Tel: 0621/422900 The District Court of Mannheim opened bankruptcy proceedings against DDH Trockenbau GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DDH Trockenbau GmbH Attn: Peter Daumann, Manager Oelhafenstrasse 20-22 68169 Mannheim Germany ENERVATION GMBH: Claims Registration Ends March 17 -------------------------------------------------- Creditors of Enervation GmbH have until March 17, 2008 to register their claims with court-appointed insolvency manager Cathleen Tetzel. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on April 15, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall 13 Breiter Weg 203-206 39104 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: 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 Enervation GmbH on Feb. 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Enervation GmbH Maxim-Gorki-Str. 31 - 37 39108 Magdeburg Germany Attn: Dirk Mensing, Manager Friedrich-Engels-Str. 3 39175 Biederitz Germany FRUCHTWINKEL HANDELS: Claims Registration Ends March 17 ------------------------------------------------------- Creditors of "Fruchtwinkel" Handelsgesellschaft mbH have until March 17, 2008 to register their claims with court-appointed insolvency manager Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Meeting Hall B405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dirk Decker Julius-Vosseler-Strasse 42 22527 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against "Fruchtwinkel" Handelsgesellschaft mbH on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: "Fruchtwinkel" Handelsgesellschaft mbH Attn: Andre Froehlich, Manager Grossmarkt Stand 399 20097 Hamburg Germany GRUNDSTUECKSGESELLSCHAFT OBJEKT: Claims Period Ends March 10 ------------------------------------------------------------ Creditors of Grundstuecksgesellschaft Objekt Wolfratshauser Turm GmbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Michael George. Creditors and other interested parties are encouraged to attend the meeting at 8:55 a.m. on April 10, 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 Wolfratshausen Meeting Room 3/I Station Route 18 Wolfratshausen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael George Hans-Urmiller-Ring 11 82515 Wolfratshausen Germany Tel: 08171/38730-100 Fax: 08171/38730-222 The District Court of Wolfratshausen opened bankruptcy proceedings against Grundstuecksgesellschaft Objekt Wolfratshauser Turm GmbH on Feb. 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Grundstuecksgesellschaft Objekt Wolfratshauser Turm GmbH Sonnenlangstr. 26 83623 Dietramszell Germany HORN MUENCHEN: Claims Registration Period Ends March 10 ------------------------------------------------------- Creditors of Horn Muenchen GmbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Stephan Ammann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stephan Ammann Barthstr. 16 80339 Muenchen Germany Tel: 089/8589633 Fax: 089/85896350 The District Court of Munich opened bankruptcy proceedings against Horn Muenchen GmbH on Feb. 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Horn Muenchen GmbH Sonnenstr. 23 80331 Muenchen Germany IKB DEUTSCHE: Restates Figures for Year Ended March 31, 2007 ------------------------------------------------------------ The sub-prime crisis and the findings of a special report by PricewaterhouseCoopers, IKB Deutsche Industriebank AG's newly appointed Board of Managing Directors resolved to restate the group’s consolidated financial statements for the financial year 2006-2007 ending March 31, 2007, as well as the financial statements of IKB AG. IKB announced on Oct. 16, 2007, that these changes were expected to reduce IKB's operating results for the financial year 2006/07 by up to EUR180 million on group level. The changes that were applied relate in particular to the consolidation of Rhineland Funding and on parts of an issuing entity whose securities serve as a vehicle for IKB’s proprietary investments. The process of consolidating Rhineland Funding in retrospect has been extremely complex and time-consuming, as it involved 28 entities each preparing their own annual and interim financial statements. IKB presents the restated financial statements, which fulfilled the requirements for the invitation to its Annual General Meeting for the financial year 2006/07. Restated Figures for Financial Year 2006/07 The retrospective changes in accounting for IKB's financial year 2006/07 (April 1, 2006, to March 31, 2007) resulted in an operating result of EUR115 million in the Group’s consolidated accounts, which is EUR148 million lower than the figure of EUR263 million reported originally. This decline was primarily due to the valuation of derivatives, which were included within the first-time consolidation of an issuing entity, and of Rhineland Funding (and Havenrock in particular). The previous figures for the 2005/06 financial year have also been adjusted accordingly, reducing the operating profit for that year from EUR233 million to EUR171 million. The restated consolidated financial statements 2006/07 report consolidated net interest income of EUR678 million. The positive difference of EUR32 million compared to the EUR646 million originally disclosed for the financial year 2006/07 originates in particular from the interest income of Rhineland Funding. Provisions for possible loan losses of EUR259 million remain unchanged; accordingly, net interest income after provisions for possible loan losses increased by the same amount as net interest income (+EUR32 million), to EUR419 million. Net commission income disclosed in the restated consolidated financial statements amounts to EUR52 million. The difference of EUR56 million to net commission income of EUR108 million initially reported for the 2006/07 financial year is explained in particular by commission income IKB received from Rhineland Funding. As a result of the consolidation of Rhineland Funding commission income is now shown as interest income in the consolidated financial statements. Net income from financial instruments at fair value was restated at -EUR41 million. The negative difference of –EUR121 million to net income from financial instruments at fair value originally reported for the financial year 2006/07 (EUR80 million) resulted largely from changes in the market value of securities and derivatives, which were included as a result of the consolidation of Rhineland Funding referred to above, as well as parts of an issuing entity. Net income from investment securities of EUR7 million was not affected by the restatement, whilst general administrative expenses decreased by EUR1 million, to EUR316 million. The cost/income ratio deteriorated to 45.8% (37.8% prior to restatement). The pre-tax return on equity was 9.4% (20.6%). IKB has not restated its quarterly results for the financial years 2005/06 and 2006/07. Segment Reporting Segment reporting for the market-facing segments Corporate Clients, Real Estate Clients, and Structured Finance -– which will continue to comprise IKB’s core business segments in the future -– was unaffected by the restatement. At EUR34 million, the Securitization segment, which included portfolio investments and the securitization of risks from assets carried on the Bank’s books, reported a significantly lower operating result compared to the original figure reported for 2006/07 (EUR108 million). This decline was mainly attributable to the negative fair-value result of -EUR49 million (original result for 2006/07: EUR10.1 million). Balance sheet Total assets increased by EUR11.5 billion to EUR63.5 billion as of March 31, 2007, in particular due to the consolidation of Rhineland Funding. Total assets as of 31 March 2006 rose by EUR9.1 billion, to EUR53.3 billion, for the same reason. Annual General Meeting and Dividends The Annual General Meeting will be convened on March 27, 2008. No net retained profit (Bilanzgewinn) as of March 31, 2007 will be shown in IKB's restated financial statements of IKB AG in accordance with the German Commercial Code (HGB); therefore, no dividends will be distributed. IKB had originally planned to distribute a dividend of EUR0.85 per share. Conversion of Convertible Bond by KfW The convertible bond, which was issued on Jan. 7, 2008, and subscribed by KfW has been converted in the mean time. On Feb. 28, 2008 IKB will deliver the shares to KfW. Thereby, the number of IKB shares will increase by 8,794,661 shares to 96,794,661 shares. IKB's core capital will increase to EUR247.8 million (from EUR225.3 million). Following the conversion, KfW will have a 43.4% stake in IKB. Outlook The previous forecast of a consolidated loss of up to EUR700 million for the IKB Group is changed due to two important reasons: * the major part of the mark-to-market losses of around EUR950 million resulting from the revaluation of the portfolio investments, as reported on Feb. 13, 2008, need to be recognized in the profit and loss account, in accordance with IFRS; and * on the basis of the current market situation IKB expects a reverse (positive) valuation effect of EUR770 million, of which only a small portion is considered sustainable. The background to this is that IKB has opted for a valuation at fair value under IFRS for a large part of its liabilities. These liabilities have lost heavily in market value due to the crisis and are therefore booked at a lower market value on the balance sheet. Under IFRS, this valuation gain is reflected in the profit and loss account for the group. As long as it is not booked against permanent interest and capital losses of hybrid liabilities, such gain will dissolve until the liabilities are reimbursed and lead to a corresponding expense. If the fair value of these liabilities rises due to an improvement in IKB's capital market standing, this expense may also occur at a much earlier stage. Overall, the Board of Managing Directors expects the Group to record a loss for the 2007/08 financial year (according to IFRS) of EUR550 million. The current estimate of results is still subject to significant uncertainty. This is due to the fact that the audit of the half-year report as at Sept. 30, 2007 has not yet been completed. The partial sale of portfolio investments may also result in higher losses. The Board of Managing Directors expects the net loss in the financial statements of IKB AG to amount to EUR750 million. This figure reflects higher losses from the revaluation of portfolio investments, which were offset to some extent by loss- sharing on profit-participation certificates and silent partnership contributions. About IKB Deutsche Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Jan. 25, 2008, Moody's Investors Service downgraded the bank financial strength rating of IKB Deutsche Industriebank to E+ from D-. The outlook on the BFSR is now developing. As reported in the TCR-Europe on Jan. 9, 2008, Fitch Ratings has upgraded IKB Deutsche Industriebank AG's Individual rating to 'E' from 'F'. The TCR-Europe also reported on Dec. 13, 2007, that Fitch Ratings downgraded the loan facilities provided by IKB Deutsche Industriebank AG and IKB International S.A. to Havenrock II Limited as: US$165,000,000 loan provided by IKB International: downgraded to 'CC/DR2' from 'BBB+' Outlook Negative; US$404,875,000 Facility C loan provided by IKB: downgraded to 'CC/DR2' from 'BBB+'; Outlook Negative; US$43,750,000 Facility B loan provided by IKB: downgraded to 'CC/DR2' from 'B+'; Outlook Negative; and US$11,375,000 Facility A loan provided by IKB: downgraded to 'CC/DR2' from 'CCC'; Outlook Negative. KOEHLER & KRENZER: Unit Sells 74.9% Marcona-Kleidung Stake ---------------------------------------------------------- Koehler & Krenzer Fashion AG said that on Feb. 19, 2008, its subsidiary, K&K Fashion GmbH & Co KG sold 74.9% of Marcona- Kleidung Heinz Ostermann GmbH & Co KG to Miro Radici AG for an undisclosed amount. According to Koehler & Krenzer, the proceeds of the sale will be used to pay creditors and shop assistants of K&K Fashion first and then the creditors of Koehler & Krenzer. K&K Fashion GmbH & Co KG is 100% owned by Koehler & Krenzer Fashion AG. As previously reported in the TCR-Europe, the District Court of Fulda opened bankruptcy proceedings against Koehler & Krenzer Fashion AG on Feb. 18, 2008. Headquartered in Ehrenberg, Germany, Koehler & Krenzer Fashion AG -- http://www.koehler-krenzer.de/-- manufactures women's outerwear. The company positions itself in the market niche for ladies' clothing in the medium-price segment for women aged 35 and over. The company's principal subsidiaries include Marcona-Kleidung Heinz Ostermann GmbH & Co. KG and Koehler & Krenzer GmbH Bekleidungfabrik, both engaged in the marketing and sale of women's outerwear garments. Other three indirect subsidiaries are K & K Fashion GmbH & Co. KG, K & K Fashion Verwaltungs GmbH and Marcona Verwaltungs-GmbH. Its collections include ISABELL, which offers jackets, outdoor clothing and coordinates and MARCONA, offering outdoor clothing and coordinates. The Company's main export markets are the European Union states, Switzerland and Russia. LEVENTIC ABBRUCHUNTERNEHMEN: Claims Registration Ends March 14 -------------------------------------------------------------- Creditors of Leventic Abbruchunternehmen GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Soenke Hansen. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on April 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 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: Soenke Hansen Moenckebergstrasse 17 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Leventic Abbruchunternehmen GmbH on Feb. 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Leventic Abbruchunternehmen GmbH Moorfleeter Deich 111 22113 Hamburg Germany LINDENHOF GMBH: Claims Registration Period Ends March 14 -------------------------------------------------------- Creditors of Lindenhof GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Dr. Eckard Pongratz. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on April 16, 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 Mosbach Meeting Hall 12 Lohrtalweg 2 74821 Mosbach 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. Eckard Pongratz Steinbachtal 2b 97082 Wuerzburg Germany Tel: 0931/991560 The District Court of Mosbach opened bankruptcy proceedings against Lindenhof GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lindenhof GmbH wh. Hauptstr. 59 69429 Waldbrunn Germany LMT-LUEFTUNGSMONTAGETECHNIK: Claims Registration Ends March 14 -------------------------------------------------------------- Creditors of LMT-Lueftungsmontagetechnik GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Rainer M. Bahr. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Leipzig Hall 056 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rainer M. Bahr Prager Strasse 34 04317 Leipzig Germany Tel: 0341/486930 Fax: 0341/4869393 E-mail: leipzig@hbml.de The District Court of Leipzig opened bankruptcy proceedings against LMT-Lueftungsmontagetechnik GmbH on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LMT-Lueftungsmontagetechnik GmbH Merseburger Strasse 189 04179 Leipzig Germany LZ SYNAPSIS: Claims Registration Period Ends March 14 ----------------------------------------------------- Creditors of LZ Synapsis GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Detlef Siwonia. Creditors and other interested parties are encouraged to attend the meeting at 1:30 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 Neubrandenburg Hall 1 Fr.-Engels-Ring 15-18 Neubrandenburg 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: Detlef Siwonia Am Muehlenberg 8 17192 Waren Germany The District Court of Neubrandenburg opened bankruptcy proceedings against LZ Synapsis GmbH on Feb. 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LZ Synapsis GmbH Steinstr. 10 a 17033 Neubrandenburg Germany MAX. SICHERHEITSFAHRSCHULE: Claims Period Ends March 10 ------------------------------------------------------- Creditors of max. Sicherheitsfahrschule Zehn GmbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Dr. Dirk Wittkowski. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on April 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Dirk Wittkowski Kirchblick 11 14129 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against max. Sicherheitsfahrschule Zehn GmbH on DATE. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: max. Sicherheitsfahrschule Zehn GmbH Kapweg 3-51 3405 Berlin Germany POLLAND GMBH: Claims Registration Period Ends March 14 ------------------------------------------------------ Creditors of Polland GmbH & Co KG have until March 14, 2008, to register their claims with court-appointed insolvency manager Peter Houben. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on April 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Moenchengladbach Meeting Hall A 14 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Houben Sternstrasse 58 40479 Duesseldorf Germany Tel: 0211/491440 Fax: +492114914461 The District Court of Moenchengladbach opened bankruptcy proceedings against Polland GmbH & Co KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Polland GmbH & Co KG Blumenweg 6 41569 Rommerskirchen Germany POLLAND VERWALTUNGS: Claims Registration Period Ends March 14 ------------------------------------------------------------- Creditors of Polland Verwaltungs-und Dienstleistungs GmbH have until March 14, 2008, to register their claims with court- appointed insolvency manager Michael Bremen. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Moenchengladbach Meeting Hall A 14 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Bremen Sternstrasse 58 40479 Duesseldorf Germany Tel: 0211/491440 Fax: +492114914461 The District Court of Moenchengladbach opened bankruptcy proceedings against Polland Verwaltungs-und Dienstleistungs GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Polland Verwaltungs-und Dienstleistungs GmbH Blumenweg 6 41569 Rommerskirchen Germany RKW IMMOBILIEN: Claims Registration Period Ends March 14 -------------------------------------------------------- Creditors of RKW Immobilien GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Marcus Goebel. Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Landshut Meeting Hall 8/I Maximilianstrasse 22-24 Landshut 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. Marcus Goebel Marschallstr. 19 84028 Landshut Tel: 0871/430944-0 Fax: 0871/430944-22 The District Court of Landshut opened bankruptcy proceedings against RKW Immobilien GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RKW Immobilien GmbH Attn: Gerhard Wagenbauer, Manager Alte Roemerstrasse 147 85435 Erding Germany ROLITH BAU: Claims Registration Period Ends March 14 ---------------------------------------------------- Creditors of ROLITH Bau GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Bjoern Junge. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rostock Hall 330 Zochstrasse 18057 Rostock 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: Bjoern Junge Graf-Schack-Strasse 14 18055 Rostock Germany The District Court of Rostock opened bankruptcy proceedings against ROLITH Bau GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ROLITH Bau GmbH Hauptstrasse 103 18107 Lichtenhagen/Elmenhorst Germany STAN TEC: Claims Registration Period Ends March 14 -------------------------------------------------- Creditors of StAn Tec GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Heinrich C. Friedhoff. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on April 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Moenchengladbach Meeting Hall A 14 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Heinrich C. Friedhoff Karl-Oberbach-Strasse 50 41515 Grevenbroich Germany Tel: 02181/21306-10 Fax: 02181/21306-17 The District Court of Moenchengladbach opened bankruptcy proceedings against StAn Tec GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: StAn Tec GmbH Michael Dinter Kampweg 77 41751 Viersen Germany TALISMAN-3 FINANCE: Fitch Ups Ratings & Says Outlook is Positive ---------------------------------------------------------------- Fitch Ratings has upgraded Talisman-3 Finance Plc's notes due 2015 and revised their Outlooks to Positive from Stable. * EUR37.5m class A (XS0256114033) affirmed at 'AAA', Outlook Stable * EUR10,000 class X (XS0256114546) affirmed at 'AAA', Outlook Stable * EUR19.6m class B (XS0256114892) upgraded to 'AAA' from 'AA', Outlook revised to Stable from Positive * EUR19.6m class C (XS0256115436) upgraded to 'AA' from 'A', Outlook revised to Positive from Stable * EUR42.7m class D (XS0256115865) affirmed at 'BBB', Outlook revised to Positive from Stable * EUR10m class E (XS0256116327) affirmed at 'BB', Outlook revised to Positive from Stable * EUR5m class F (XS0256116673) affirmed at 'B', Outlook Stable The upgrades reflect the high level of prepayments within this transaction, which have resulted in improved credit enhancement. Since closing in June 2006, eight loans have prepaid. Jointly, they accounted for approximately 80% of the closing date balance. As of the October interest payment date, all repayments and prepayments are allocated on a fully sequential basis, after the sequential prepayment trigger was breached, and this, in turn, has greatly improved credit enhancement. Until July 2010, neither Class E nor Class F will receive any pro-rata principal. As a result of the prepayment of eight loans, there is a significant concentration risk with regards to the tenant base, as there is now less tenant diversification over fewer loans. The largest tenant is now VBG (within the Dresden loan), a government-supported entity, representing 32.9% of the total rent; this is compared to 27.5% at closing. The top three tenants of the pool, as of January 2008, accounted for approximately 87.0% of the current rental income; this includes residential tenants in the Waterloo loan. Consequently, despite the significantly improved advance rate on class C notes, this will only warrant an upgrade to 'AA', along with a Positive Outlook for the subordinated class D and E notes. The Positive Outlook reflects the upcoming maturities in 2010 for the Trier loan, and the Berlin and Dresden loan (the largest remaining loan) as well as the amortisation of the remaining loans over the next 18-24 months. Following the implementation of the German Tax Reform in January 2008, the borrower within the Bastion loan has converted part of the shareholder loans into equity to minimise the impact the new tax laws could have on the loan. This change completed before 31 December 2007. The Waterloo loan has seen an increase in the vacancy rate across its portfolio in the last quarter. The current vacancy rate is 7.2%, up from 6.2% in October 2007, which has led to a decrease of EUR10,000 in rental income. The Trier loan is fully let to four tenants with an additional 67 car parking spaces. However, due to an increase in non- recoverable expenses in the last quarter, there has been a slight decrease in net operating income at the January 2008 IPD from October 2007 IPD. TECHNOTEAM GMBH: Claims Registration Period Ends March 14 --------------------------------------------------------- Creditors of TechnoTeam GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 2:15 a.m. on April 1, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Meppen Hall 1 Obergerichtsstrasse 20 49716 Meppen 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: Andreas Sontopski Gnoiener Platz 10 48493 Wettringen Germany Tel: 02557-93840 Fax: 02557-938450 The District Court of Meppen opened bankruptcy proceedings against TechnoTeam GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TechnoTeam GmbH Attn: Andre Houben, Manager Bahnhofstr. 8 49716 Meppen Germany TELEMEDIA GMBH: Claims Registration Period Ends March 11 -------------------------------------------------------- Creditors of Telemedia GmbH have until March 11, 2008, to register their claims with court-appointed insolvency manager Jan Gartner. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on April 22, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jan Gartner Weisseritzstrasse 3 01067 Dresden Az.: 1971-G, Germany Website: www.worako.de The District Court of Dresden opened bankruptcy proceedings against Telemedia GmbH on Feb. 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Telemedia GmbH OT Niedergurig Gewerbepark 8 02694 Malschwitz Germany TK-BAU GMBH: Claims Registration Period Ends March 14 ----------------------------------------------------- Creditors of TK-Bau GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on April 1, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Meppen Hall 1 Obergerichtsstrasse 20 49716 Meppen 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: Andreas Sontopski Gnoiener Platz 10 48493 Wettringen Germany Tel: 02557-93840 Fax: 02557-938450 The District Court of Meppen opened bankruptcy proceedings against TK-Bau GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TK-Bau GmbH Thyssenstr. 15 49744 Geeste-Dalum Germany UHG UNIVERSAL: Claims Registration Period Ends March 14 ------------------------------------------------------- Creditors of UHG Universal Hochbau GmbH have until March 14, 2008, to register their claims with court-appointed insolvency manager Stefan Denkhaus. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on April 21, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schwerin Hall 3 Demmlerplatz 14 19053 Schwerin Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefan Denkhaus Jungfernstieg 30 20354 Hamburg Germany The District Court of Schwerin opened bankruptcy proceedings against UHG Universal Hochbau GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: UHG Universal Hochbau GmbH Attn: Dr. Detlef Thomsen, Manager Otto-Weltzien-Strasse 15 19061 Schwerin Germany =========== G R E E C E =========== WIND HELLAS: Fitch Affirms 'B' Ratings with Stable Outlook ---------------------------------------------------------- Fitch Ratings affirmed Greek mobile operator WIND Hellas Telecommunications S.A.'s Long- and Short-term Issuer Default ratings at 'B'. The Outlook for the Long-term IDR remains Stable. The instrument ratings are also affirmed. The company stated in its earnings call on February 19, 2008 that the funding requirements of its 50%-owned fixed-line subsidiary, Tellas, would be met from WIND Hellas cashflow and resources, without contribution from the minority shareholder, Wind Telecomunicazioni SpA (rated 'BB-' (BB minus)/Negative Outlook). This strategy represents a change to information previously provided to the agency by the company, in that the funding requirement was originally expected to be shared. However, Fitch affirmed WIND Hellas's ratings, reflecting the better-than-expected improvement in mobile revenue and EBITDA generation in the fourth quarter, which resulted in an uplift in trailing twelve months adjusted EBITDA levels to EUR466m at YE07 from EUR453m at Q307, and an increase in the cash balance to EUR110m. Fitch's projected credit metrics for 2008 therefore remain relatively unchanged. Pro forma for the prepayment of EUR35m under the Revolving Credit Facility which took place in January 2008, Wind Hellas had available undrawn committed facilities of EUR65m and cash of EUR75m, which Fitch believes should be sufficient for the needs of the combined business through 2008-09. In addition, the company indicated that the parent entity, Weather Investments SpA, would be willing to fund additional requirements at Tellas if liquidity at WIND Hellas were lacking. The 'B' LT IDR reflects the agency's confidence in the proven cashflow generating abilities of the core mobile business, as well as the growth potential of the fixed-line business, which is expected to contribute positively in the medium-term. However, any underperformance in EBITDA or cashflow in the fixed line business of Tellas, which Fitch views as involving a higher level of execution risk,will likely result in a negative outlook or downgrade of the ratings, especially if combined with an exercise of the call option on the minority shares in Tellas which is exercisable until 2010. WIND Hellas ratings: WIND Hellas Telecommunications S.A.: -- Long-term IDR: affirmed at 'B'; Stable Outlook -- Short-term IDR: affirmed at 'B'; Hellas Telecommunications (Luxembourg) V senior revolving credit facility: -- affirmed at 'B+'/'RR3'; Hellas Telecommunications (Luxembourg) V senior secured floating rate notes due 2012: -- affirmed at 'B+' /'RR3'; Hellas Telecommunications (Luxembourg) III senior notes due 2013: -- affirmed at 'B+'/'RR3'; Hellas Telecommunications (Luxembourg) II subordinated floating- rate notes due 2015: -- affirmed at 'CCC+'/'RR6' Fitch will re-issue its latest Credit Update on Wind Hellas Telecommunications S.A. to reflect the above developments. ============= I R E L A N D ============= SANMINA-SCI: PC Business Exit Won't Affect S&P's B+ Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on San Jose, California-based Sanmina-SCI Corp. (B+/Negative/--) are not affected by the company's announcement that it has exited the PC business. Sanmina has reached an agreement to sell certain of its PC-related assets to a subsidiary of Hon Hai Precision Industry Co. Ltd. (A-/Stable/--) and to transfer responsibility of its Monterrey, Mexico operation to Lenovo Group Ltd. Proceeds from the sale are expected to total about US$90 million. Although Sanmina has made some progress in reducing debt and improving profitability, the company remains leveraged, with adjusted debt to EBITDA at about 6.5x in the trailing 12 months ended Dec. 31, 2007. In addition, its track record of improved profit margin remains short, about three quarters, and revenues continue to decline gradually. Still, if Sanmina sustains current trends and uses proceeds to reduce debt, prospects for an outlook revision to stable are strengthened in the near-to- mid term. SAPHIR FINANCE: Moody's Cuts Rating on GBP400 Million Notes ----------------------------------------------------------- Moody's has downgraded the Series 2006-7 GBP400,000,000 Perpetual Non-Cumulative Notes issued by Saphir Finance plc to C from B3. The Notes are secured by the GBP400,000,000 Series A Fixed/Floating Rate Non-Cumulative Callable Preference Shares of Northern Rock plc. The rating on the 2006-7 Notes reflects that of the underlying credit which was yesterday downgraded to C from B3. Saphir Finance plc is a bankruptcy remote vehicle incorporated in Ireland under the Irish Companies Acts 1963-2001 (as amended). * Fitch May Act Selectively on UK, Irish, Spanish Lender Ratings ---------------------------------------------------------------- Fitch Ratings expects that a continued deterioration in the UK, Spanish and Irish housing markets will place pressure on some mortgage lenders in 2008, and selective rating actions on specific issuers cannot be ruled out, according to three special reports published last week. Banks' credit losses are likely to increase from an unsustainably strong position, but Fitch believes that difficulties for the lenders should be contained. Overall, Fitch considers that residential mortgages are low risk, because they are supported by a fragmented borrower base, high quality collateral and positive demographic trends. Banks in all three markets have benefited from good economic and lending growth and from low levels of impaired loans. They also relaxed some credit criteria to varying degrees. Since August 2007, more expensive and less easily available funding has curbed lenders' appetites for growth and coincides with weaker house prices. In the near term, economic growth in these countries may be more subdued. In the UK, Fitch expects the recent trend of lower house prices to continue, though the scale of this adjustment remains hard to predict. Fitch does not expect a collapse in UK house prices. "A weakening housing market may place pressure on some UK mortgage lenders, although a rebalancing of the market is likely to offer opportunities to those with the best access to funding," said Alexandre Birry, Director in Fitch's Financial Institutions Group, based in London. "Rating actions may occur if a lender shows more vulnerability to a weakening housing market than is currently anticipated. In particular, the performance of certain non-conforming residential loans in a more difficult market represents a key uncertainty. However, we do not expect a wave of material downgrades among UK mortgage lenders." Irish banks are more exposed to real estate than most other western European banks. This concentration makes Irish banks vulnerable to significant weakness in the sector. "If the Irish economy achieves a soft landing, which Fitch regards as the most likely scenario, most Irish institutions should be capable of rising to the challenge without the need for rating action," said Matthew Taylor, Senior Director in Fitch's Financial Institutions Group, based in London. "In the case of a more severe contraction in economic growth, a wider range of rating actions on Irish banks may be required." In Spain, banks have significantly increased their exposure to the real estate sector in the last 5 years making them more vulnerable to the sector slowdown. However, some comfort can be taken from banks' sustained sound fundamentals backed by their strong retail franchise, good earnings and cost efficiency, healthy asset quality and sound risk management systems. Fitch sees more rating pressure on some savings banks in Spain, rather than large and more diversified universal banks. "Selective negative rating actions cannot be ruled out for weaker and more exposed institutions should the housing sector slowdown become more severe and if the liquidity shortage in the capital markets is prolonged," says Cristina Torrella, Director in Fitch's Financial Institutions Group in Barcelona. "Such actions are most likely to be limited to banks that have displayed above- average real estate developer loan growth in recent years, and/or have high risk concentrations, particularly in individual entities." ========= I T A L Y ========= ALITALIA SPA: AirOne SpA Appeals Lazio Court Ruling --------------------------------------------------- AirOne S.p.A. has filed an appeal to the Feb. 20, 2008, ruling by the Italian Regional Administration Court of Lazio that rejected it petition to declare null and void a Dec. 28, 2007, decision of Italy's Ministry of Economy and Finance to commence exclusive talks to sell the government's 49.9% stake to Air France-KLM SA, Guy Dinmore writes for the Financial Times. According to FT, the Lazio court is also expected to reject AirOne's petition to oblige Alitalia to restart negotiation with each other. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. Air France said it 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. Air France managing director Pierre Henri Gourgeon that the exclusive talks may go beyond the April elections due to various procedural steps, Radiocor relates. AirOne said it would present a binding offer once it wins its appeal, adding that its offer would be financially backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc. TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera may join AirOne in its Alitalia bid. Reuters said MyChef may also participate in the offer. AirOne chairman Carlo Toto is inviting businessmen from the Lombardy region to join the airline's bid. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. FIAT SPA: Expects to Sell 8,000 High Performance Cars Annually -------------------------------------------------------------- Luca De Meo, Fiat SpA Chief Marketing Officer, said that the company expects to sell 8,000 high-performance Abarth cars annually, Bloomberg reports. Since its introduction in October 2007, 1,500 orders have been placed. Abarth was founded in 1949 and acquired by Fiat in 1971. Abarth currently has 35 dealers in Italy and plans to put up 60 showrooms in 12 countries. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in the TCR-Europe on Nov. 6, 2007, Moody's Investors Service changed the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate Family Rating to positive from stable and affirmed its Ba3 long-term senior unsecured ratings as well as the short-term non-Prime rating. On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. PARMALAT SPA: Banca Monte dei Paschi Settles for EUR79.5 Million ---------------------------------------------------------------- Parmalat S.p.A. and Banca Monte dei Paschi di Siena S.p.A. have reached an agreement that settles all reciprocal claims that led to litigation arising from operations in the period preceding th