/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080227.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 27, 2008, Vol. 9, No. 43 Headlines A U S T R I A M. REITER: Claims Registration Period Ends March 10 PETER BERGER: Creditors' Meeting Slated for March 4 PETER BERGER & CO: Claims Registration Period Ends March 4 PLEYERS FLIESENZENTRUM: Claims Registration Period Ends March 18 ROCK & MORE: Claims Registration Period Ends March 21 SCHICHER BAU: Claims Registration Period Ends March 20 B E L G I U M TIMKEN CO: Adds Steel Products; Completes Boring Acquisition B U L G A R I A BULGARIAN AMERICAN: S&P Puts BB/B Ratings Under Positive Watch D E N M A R K AVNET INC: Moody's Ups Ratings on Improving Operating Efficiency KALMAR STRUCTURED: Moody's Puts Notes' Rating Under Review EASTMAN KODAK: Dennis Strigl Elected to Board of Directors EASTMAN KODAK: Fitch Revises Ratings Outlook to Stable F R A N C E AXCAN INTERMEDIATE: Moody's Holds B1 Ratings on Capital Changes DELPHI CORP: Must Pay Professionals US$49 Mln in Fees & Expenses TEMBEC INC: Lenders, Shareholders OK Recapitalization WELLMAN INC: Files for Chapter 11 Protection in New York WELLMAN INC: Case Summary & 30 Largest Unsecured Creditors WELLMAN INC: Moody's Lowers Ratings on Bankruptcy Filing G E R M A N Y AOL ANWENDERORIENTIERTE: Claims Registration Ends March 20 AUTOHAUS BASMANN: Claims Registration Period Ends March 20 BACHMANN GMBH: Claims Registration Period Ends March 20 BERGKAMENER HOCHBAU: Claims Registration Period Ends March 19 BERND NEUHAUSEL: Claims Registration Period Ends March 20 BESTRO MODEVERTRIEB: Claims Registration Period Ends March 4 CHRISTIANE GERTURD: Claims Registration Period Ends March 20 CONTRABAU HUMME: Claims Registration Period Ends March 19 D. A. CORDS: Claims Registration Period Ends March 19 DOERKEN STAHL: Claims Registration Period Ends March 20 DOHNAER HOCH: Claims Registration Period Ends March 4 DUERR AG: Earns EUR21 Million for Year Ended December 31 GELATERIA CONTI: Claims Registration Period Ends March 19 GESCHWISTER WOLBER: Claims Registration Period Ends March 18 HANSEN-BAU GMBH: Claims Registration Period Ends March 19 HEINRICH SCHNEIDER: Claims Registration Ends March 20 HELGE ALTSOHN: Claims Registration Ends March 20 JEWO FLEISCHWARENHANDELS: Claims Registration Ends March 20 KURIOS BETRIEBS: Claims Registration Ends March 20 LODER GMBH: Claims Registration Period Ends March 4 MARQUARDT MASCHINENBAU: Claims Registration Ends March 20 META - LOG GMBH: Claims Registration Ends March 20 PEUCKER & FILLERS: Claims Registration Period Ends March 13 SWS GMBH: Claims Registration Period Ends March 18 I R E L A N D INTERNATIONAL SECURITIES: Collins Stewart to Take Over Company LUNAR FUNDING V: Moody's Lowers Ratings on 11 Note Classes PALMER SQUARE 2: Moody's Cuts Ratings on Three Note Classes PALMER SQUARE 3: Cuts Ratings on Five Classes & Maintains Review VALENCE TECH: Names G. H. Fischer as Chief Financial Officer I T A L Y ALITALIA SPA: Denies Seeking EUR300-Million Bridging Loan ALITALIA SPA: January Traffic Shows Year-on-Year Decrease DANA HOLDING: Directors and Officers Named IT HOLDING: Joins Italian Stock Exchange's STAR Segment K A Z A K H S T A N ALEX INVEST: Creditors Must File Claims by March 28 BAITEREK LLP: Claims Deadline Slated for March 21 DINAS LLP: Claims Filing Period Ends March 28 DOUL INTERNATIONAL: Creditors' Claims Due on March 28 GIDROSPETSSTROY JSC: Claims Registration Ends March 28 JAS-JAN LLP: Creditors Must File Claims by March 28 KAMKOR CJSC: Claims Deadline Slated for March 28 KURYLYS CONSTRUCTION: Claims Filing Period Ends March 21 PET CO: Creditors' Claims Due on March 28 STROYSVYAZ DRUJBA: Claims Registration Ends March 28 K Y R G Y Z S T A N BUSINESS GARANT: Creditors Must File Claims by March 14 ULUK AND ASSOCIATES: Claims Filing Period Ends March 21 L U X E M B O U R G AMERICAN AXLE: Declares 1st Qtr. 2008 Div. Payable on March 28 HUNTSMAN CORP: Incurs US$172.1 Million Net Loss in 2007 N E T H E R L A N D S CLASSIC I: Moody's Cuts Rating on S. 2006-1 Class A2 Notes FOOT LOCKER: Allowable Dividend Payments Increased to US$95 Mln MOBILE MINI: To Merge with Mobile Storage in US$701.5 Mln Deal MOBILE MINI: Earns US$12.4 Million in Quarter Ended December 31 MOBILE MINI: Mobile Storage Deal Cues Moody's Ratings Review MOBILE MINI: Mobile Storage Deal Cues S&P's Negative Watch P O L A N D BUCYRUS INTERNATIONAL: Amends RAG Coal Share Purchase Deal R U S S I A AMBASSADOR LLC: Creditors Must File Claims by March 12 AVTO-TRANS CJSC: Creditors Must File Claims by March 12 BELOVSKIY COAL: Court Names A. Taranenko as Insolvency Manager B.I.N.BANK: S&P Says Ratings Unaffected By Likely Owner Change DORONINO LLC: Court Starts Bankruptcy Supervision Procedure EAST CJSC: Kemerovo Bankruptcy Hearing Slated for June 9 EASTERN OIL-LOADING: Names E. Ugolnikov as Insolvency Manager ENTAZIS CJSC: Creditors Must File Claims by March 12 INTER-PROM-GARANT: Court Starts Bankruptcy Supervision Procedure IZMAYLOVSKIY PARK: Court Starts Bankruptcy Supervision Procedure KIZNERSKOE REPAIR: Creditors Must File Claims by March 12 MOTOR ENTERPRISE 1: Bankruptcy Hearing Slated for April 10 NEFAZ-CENTRE LLC: Court Starts Bankruptcy Supervision Procedure PROGRESS OJSC: Asset Sale Slated for March 11 SEPTEMBER CJSC: Court Names A. Gudkov as Insolvency Manager TRANSPORT COMPANY: Creditors Must File Claims by March 12 S P A I N TDA 25: Fitch Holds BB- Rating on Class D with Negative Outlook VALENCIA HIPOTECARIO: Fitch Puts CCC Rating on Class D Notes S W I T Z E R L A N D WEST CORP: Plans to Purchase Genesys for US$269 Million T U R K E Y TURKIYE VAKIFLAR: Fitch Holds Issuer Default Rating at BB- U K R A I N E DINA LLC: Creditors Must File Claims by March 6 MIUZI LLC: Creditors Must File Claims by March 6 NAFTOGAZ UKRAINY: Ukraine Cabinet Opposes Gazprom Joint Ventures ONIS LLC: Creditors Must File Claims by March 6 SVITANOK LLC: Creditors Must File Claims by March 6 VIA PRINT: Creditors Must File Claims by March 6 VICTORIYA LLC: Creditors Must File Claims by March 6 ZLAGODA LLC: Creditors Must File Claims by March 6 U N I T E D K I N G D O M AVEBURY FINANCE: Moody's Junks Rating on Class D Notes BAA LTD: Eyes GBP1 Billion Loan to Repay Increasing Debt BAA LTD: Heathrow Incident Cuts January 2008 Traffic BANTRY BAY: Moody's Junks Ratings on Two Note Classes BLENDON COMMUNICATIONS: Taps Liquidators from Smith & Williamson CAPTIVE MINDS: Claims Filing Period Ends March 31 CLARIS IV LIMITED: Moody's Lowers Ratings on Three Note Classes DURA AUTOMOTIVE: Court OKs Amendments to Revolving DIP Debt Pact DURA AUTOMOTIVE: Must Appear at Final Hearing to OK Bonus Plan EIRLES TWO: Moody's Cuts Rating on US$150 Million Notes to Ba1 FAXTOR HG 2007-1: Moody's Lowers Rating on Six Note Classes FORD MOTOR: Announcement of Tata Motors Deal Sets March 6 or 7 G SQUARE 2007-1: Moody's Cuts Ratings on Six Note Classes G SQUARE 2006-2: Moody's Lowers Rating on Five Note Classes GENERAL MOTORS: Inks Settlement Pact with UAW and Union Retirees GETTY IMAGES: Hellman & Friedman Acquires Firm for US$2.4 Bln GLOBAL TRADER: Appoints Smith & Williamson to Administer Assets HOOPER GIBSON: Brings In Liquidators from Mazars I-FLOOR DESIGN: Names Joint Administrators from Grant Thornton LOGAN CDO II: Moody's Junks Ratings on Three Note Classes LOGAN CDO III: Moody's Lowers Ratings on Eight Note Classes LONDON DRAWING: Taps Begbies As Joint Administrators MARC CDO I: Moody's Puts Junk Rating on Three Note Classes MAXJET AIRWAYS: Bid Deadline Extended Until February 27 MAXJET AIRWAYS: Court OKs Morten Beyer as Valuation Consultants MILL REEF: Moody's Lowers Ratings on Six 2005-1 Note Classes MOBILE STORAGE: Inks US$701.5 Mln Merger Deal with Mobile Mini MOBILE STORAGE: Mobile Mini Deal Prompts S&P's Positive Watch NORTHERN ROCK: Holds First Board Meeting After Nationalization NOW SHOES: Brings In Administrators from Begbies Traynor PETROLEOS DE VENEZUELA: Asset Freeze to be Extended PETROLEOS DE VENEZUELA: Reaches Settlement with Total & Statoil P.S. SURFACING: Appoints KPMG to Administer Assets QUEBECOR WORLD: Final Auction Prices of Bonds Reach 41.25% QUEBECOR WORLD: Court Agrees Payment of Prepetition Commissions QUEBECOR WORLD: Various Entities Disclose Stake in Company REFCO INC: SEC Sues Ex-CEO Bennett for Orchestrating Fraud ROADRUNNERS TRANSPORT: Hires Liquidators from Vantis RUTLAND RATED: Moody's Junks Rating on S. 55 Class B-2L Notes R W GIBBS: Calls In Liquidators from Tenon Recovery SCOTTISH RE: S&P's 'B' Rating Unaffected by New Strategic Focus TATA MOTORS: Concludes Meeting with Jaguar & Land Rover Union TATA MOTORS: Mandates Banks to Raise US$2.5 Bil., Report Says VIRGIN MEDIA: Appeals Competition Commission's ITV Stake Ruling YVONNE PALMER: Names Joint Administrators from PKF * Moody's Take Various Ratings Actions on US$550MM European CDOS ********* ============= A U S T R I A ============= M. REITER: Claims Registration Period Ends March 10 --------------------------------------------------- Creditors owed money by LLC M. Reiter & Co (FN 118797b) have until March 10, 2008, to file written proofs of claim to court- appointed estate administrator Franz Seid at: Dr. Franz Seidl Schloss 4/1 2542 Kottingbrunn Austria Tel: 02252/71 199 Fax: 02252/71 199-20 E-mail: ra-f.seidl@teletronic.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on March 20, 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 Baden bei Wien, Austria, the Debtor declared bankruptcy on Feb. 5, 2008 (Bankr. Case No. 10 S 15/08x). PETER BERGER: Creditors' Meeting Slated for March 4 --------------------------------------------------- Creditors owed money by LLC Peter Berger (FN 31613s) are encouraged to attend the first creditors' meeting at 10:10 a.m. on March 4, 2008. The creditors' meeting will be held at: The Land Court of Graz Room 205 Hall K Second Floor Graz Austria The Court will also examine the claims at 9:30 a.m. on April 15, 2008, at the same venue. Creditors have until April 1, 2008, to file written proofs of claim to court-appointed estate administrator Gertraude Carli at: Dr. Gertraude Carli Raimund Obendrauf Strasse 9 8230 Hartberg Austria Tel: 03332/62240 Fax: 03332/62240-8 E-mail: ra.carli-carli@gmx.at Headquartered in Graz, Austria, the Debtor declared bankruptcy on Feb. 5, 2008 (40 S 7/08i). PETER BERGER & CO: Claims Registration Period Ends March 4 ---------------------------------------------------------- Creditors owed money by LLC PETER BERGER & Co KG (FN 32932f) are encouraged to attend the first creditors' meeting at 10:10 a.m. on March 4, 2008. The creditors' meeting will be held at: The Land Court of Graz Room 205 Hall K Second Floor Graz Austria The Court will also examine the claims at 9:15 a.m. on April 15, 2008, at the same venue. Creditors have until April 1, 2008, to file written proofs of claim to court-appointed estate administrator Gertraude Carli at: Dr. Gertraude Carli Raimund Obendrauf Strasse 9 8230 Hartberg Austria Tel: 03332/62240 Fax: 03332/62240-8 E-mail: ra.carli-carli@gmx.at Headquartered in Filzmoos, Austria, the Debtor declared bankruptcy on Feb. 5, 2008 (40 S 6/08t). PLEYERS FLIESENZENTRUM: Claims Registration Period Ends March 18 ---------------------------------------------------------------- Creditors owed money by LLC pleyers Fliesenzentrum (FN 81092d) have until March 18, 2008, to file written proofs of claim to court-appointed estate administrator Walter Anzboeck at: Dr. Walter Anzboeck Stiegengasse 8 3430 Tulln Austria Tel: 02272/61 600 Fax: 02272/61 600-20 E-mail: anwalt@anzboeck.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on April 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in St. Georgen am Steinfeld, Austria, the Debtor declared bankruptcy on Feb. 5, 2008 (Bankr. Case No. 14 S 11/08w). ROCK & MORE: Claims Registration Period Ends March 21 ----------------------------------------------------- Creditors owed money by LLC Rock & More Beteiligung (FN 274723f) have until March 21, 2008, to file written proofs of claim to court-appointed estate administrator Bernhard Eder at: Dr. Bernhard Eder Brucknerstrasse 4 1040 Vienna Austria Tel: 505 78 61 Fax: 505 78 61 9 E-mail: eder@rechtsanwaelte.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 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. 5, 2008 (Bankr. Case No. 28 S 21/08d). SCHICHER BAU: Claims Registration Period Ends March 20 ------------------------------------------------------ Creditors owed money by LLC Schicher Bau (FN 140166b) have until March 20, 2008, to file written proofs of claim to court- appointed estate administrator Josef Flaschberger at: Dr. Josef Flaschberger Getreidegasse 13/2 9020 Klagenfurt Austria Tel: 0463/50 43 43 Fax: 0463/404582 E-mail: drflaschberger@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on March 31, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Conference Hall 225 Second Floor Klagenfurt Austria Headquartered in Kuehnsdorf, Austria, the Debtor declared bankruptcy on Feb. 5, 2008 (Bankr. Case No. 41 S 8/08m). ============= B E L G I U M ============= TIMKEN CO: Adds Steel Products; Completes Boring Acquisition ------------------------------------------------------------ The Timken Company has added leading steel products for oil and gas drilling operations, further extending its strong position in the growing market for high-performance energy products. Timken completed its acquisition of the assets of Boring Specialties Inc., a leading provider of a wide range of precision deep-hole oil and gas drilling and extraction products and services. Timken will operate the business as Timken Boring Specialties, LLC, from its current location in Houston, Texas. Timken will continue to invest in its ability to meet the needs of customers in the global energy market with hole-making, hole-finishing and related machining services. "We are continuing to make strategic investments in our steel capabilities to bring more value to customers in targeted markets, contributing to Timken's profitable growth," said Salvatore J. Miraglia, president of Timken's Steel Group. "The addition of Timken Boring Specialties to our portfolio is the latest in a series of investments to extend our differentiation in the marketplace." In 2007, Timken added new induction heat-treat capabilities and expanded the outer diameter of round steel bars and the length of steel tubing it offers to customers in global energy and other markets. The company is also building a new small-bar mill in Canton, Ohio, that will allow it to create high-quality alloy steel bars down to one-inch in diameter. The latest addition to Timken's steel portfolio, Timken Boring Specialties creates a unique, simplified and cost-effective supply chain by providing a single-point material and machining source for original equipment manufacturers and distributors. Customers will benefit from the combination of high-quality steel and value-added machining expertise for drilling, skiving, trepanning and honing operations. 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. =============== B U L G A R I A =============== BULGARIAN AMERICAN: S&P Puts BB/B Ratings Under Positive Watch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB/B' long- and short-term counterparty credit ratings on Bulgarian American Credit Bank on CreditWatch with positive implications. The rating action follows the announcement that Allied Irish Banks PLC (AIB; A+/Positive/A-1) has agreed to acquire a 49.99% shareholding in BACB. The acquisition is subject to regulatory approvals. "The CreditWatch placement on BACB reflects the potential for an improvement in the bank's creditworthiness, resulting from AIB becoming the single largest shareholder in BACB," said Standard & Poor's credit analyst Jerome Chui. In Standard & Poor's view, there is a good opportunity for BACB to benefit from future product, operational, managerial, and financial support from AIB. In turn, this could boost BACB's market franchise and financial strength in the highly competitive and fast-growing Bulgarian banking sector. If the transaction is successful, the ratings on BACB could initially be raised by one or two notches. S&P will assess BACB's strategic importance to AIB; its operational and financial commitment and support; the strategy that will be implemented; and the impact of these factors on the stand-alone and final ratings on BACB. "Standard & Poor's expects to resolve the CreditWatch placement on completion of the acquisition, including regulatory approval and after further discussions on strategy, funding, and managerial and financial support with AIB," added Mr. Chui. ============= D E N M A R K ============= AVNET INC: Moody's Ups Ratings on Improving Operating Efficiency ---------------------------------------------------------------- Moody's Investors Service raised the corporate family and senior unsecured ratings of Avnet Inc. to Baa3 from Ba1 with a stable outlook. "The upgrade reflects our expectation that Avnet's operating performance will continue to benefit from the secular outsourcing trend underway in the electronics OEM space, improved product mix, as ll as enhanced scale, increasing geographic diversity and an expanded line card with access to new customer relationships as a result of recent acquisitions," according to Moody's Vice President & Senior Analyst Gregory Fraser, CFA. Moody's cited the upgrade considers the solid execution, operating efficiency improvements and working capital management that have exceeded expectations resulting in operating margin and ROA expansion, improved credit protection measures, higher gross cash flow levels and an enhanced business model that has the propensity to deliver consistent levels of positive free cash flow especially during periods of industry akness. The steady improvement in financial leverage, which Moody's expects to continue, also supports the upgrade, as does Avnet's disciplined financial philosophy with respect to maintaining strong balance sheet liquidity and modest financial leverage. "Barring an extended period of economic weakness, we expect Avnet to continue to grow operating income at a faster pace than revenues and maintain a focus on balance sheet de-leveraging via either free cash flow generation targeted towards debt reduction or higher levels of operating cash flow," Mr. Fraser added. The stable ratings outlook reflects expectations for stable financial leverage and interest coverage metrics, relatively steady vendor/customer relationships, and maintenance of operating margins in the 2-4% range during an economic cycle. The rating outlook factors in Moody's expectation that debt to book capitalization will remain below 35% and retained cash flow to debt will remain above 25% in a downturn scenario. Despite Avnet's end market and geographic diversification, there is some concern that the current weak macro-economic environment could result in a broad-based corporate IT spending slowdown, potentially impacting Avnet's operating profitability. However, in a reasonable downside scenario, which is incorporated in the Baa3 rating, Moody's does not expect operating margins to fall below 2.5% based on Avnet's enhanced scale and current operating leverage. Additionally, given Avnet's ongoing focus on cost controls, Moody's believes the company should be less vulnerable during an industry retrenchment than in previous cycles. Nonetheless, the rating could experience downward pressure to the extent operating margins were to fall below 2.5% on a sustained basis (two to four quarters). The rating factors the volatility of inventory and payables usage which can be irregular from quarter to quarter given the working capital intensity of the business model driven by seasonal demands. Mitigating this concern is Avnet's improved working capital leverage and cash conversion cycle as well as higher absolute yearly gross cash flow levels that cushion periods of high working capital consumption. The company maintains very good liquidity and financial flexibility. This is driven by Avnet's US$417 million of cash, Moody's expectations for free cash flow generation of at least US$300 million in fiscal 2008, plus full access to a US$450 million accounts receivable securitization program (maturing 2008) and US$500 million unsecured revolver (maturing 2012). These ratings were upgraded: -- Corporate Family Rating to Baa3 from Ba1 -- Senior Unsecured Notes to Baa3 from Ba1 -- Senior / Subordinated Shelf Ratings to (P)Baa3 / (P)Ba1 from (P)Ba1 / (P)Ba2 Concurrently, Moody's has withdrawn these ratings and expects to withdraw the corporate family rating shortly as well, as these measures are applicable only for below investment grade companies: -- Probability of Default Rating -- All LGD Assessments Avnet, Inc., headquartered in Phoenix, Arizona, is one of the largest worldwide distributors of electronic components and computer products, primarily for industrial customers. Revenues and EBITDA for the twelve months ended Dec. 29, 2007 were US$17.0 billion and US$873 million, respectively. KALMAR STRUCTURED: Moody's Puts Notes' Rating Under Review ---------------------------------------------------------- Moody's Investors Service places under review for possible downgrade the Class C EUR 8,000,000 Secured Floating Rate Notes II due 2010 issued by Kalmar Structured Finance A/S, currently rated Ba3. This review for downgrade is the result of a credit migration in the underlying pool. EASTMAN KODAK: Dennis Strigl Elected to Board of Directors ---------------------------------------------------------- Eastman Kodak Company has elected Dennis F. Strigl, President and Chief Operating Officer of Verizon Communications, to its board of directors, effective Feb. 21, 2008. Mr. Strigl, 61, became President and COO of Verizon in January 2007. In 2000, he was responsible for bringing together the domestic wireless operations of Bell Atlantic, Vodafone AirTouch and GTE to form Verizon Wireless, for which he served as President and CEO until being named to his current position with the company. "I am pleased to welcome Denny Strigl to our board," said Antonio M. Perez, Kodak's Chairman and Chief Executive Officer. "Denny is widely recognized as one of the most prominent architects of the wireless communications industry. He launched the first cellular communications network in the U.S. while leading Ameritech's Mobile Communications business, and during his leadership at Verizon Wireless, increased the company's revenue by nearly 121 percent. Denny will bring a depth of experience to the board in an industry that is increasingly relevant to Kodak." Mr. Strigl received his bachelor's degree in business administration from Canisius College, and his MBA from Fairleigh Dickinson University. He began his career with New York Telephone and held positions at AT&T and Wisconsin Telephone before becoming Vice President of American Bell, Inc. His career took him to senior leadership positions at Ameritech Mobile Communications, Bell Atlantic, and Bell Atlantic Global Wireless, where he was named president and CEO in 1991. Mr. Strigl is past chairman of the Board of Directors of the Cellular Telecommunications and Internet Association, and serves on the boards of directors of Verizon Wireless, Anadigics Inc., PNC Financial Services Group and PNC Bank. He also serves as chairman of the Board of Trustees of Canisius College. Mr. Strigl's election brings the Kodak board to 12 members, 11 of whom are independent directors, with Antonio Perez serving as the only non-independent director. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. EASTMAN KODAK: Fitch Revises Ratings Outlook to Stable ------------------------------------------------------ Fitch Ratings revised Eastman Kodak Company's Rating Outlook to Stable from Negative and affirmed the ratings as: -- Issuer default rating at 'B'; -- Senior secured revolving credit facility at 'BB/RR1'; -- Senior unsecured debt at 'B/RR4'. Fitch's actions affect approximately $2.6 billion of total debt, including the company's undrawn $1 billion RCF. The revision of the Rating Outlook to Stable reflects Kodak's: -- Improving near-term free cash flow prospects, which are due primarily to declining cash restructuring payments following the completion of its significant 2004-2007 restructuring program; -- Revenue stabilization, as accelerating digital revenue growth has started to more than offset declines in traditional revenue; -- Improved credit protection measures and financial flexibility. Ratings concerns continue to center on: -- The ongoing decline of the traditional film business, which, in Fitch's estimate, generates the majority of the company's EBITDA; -- The significantly lower profit margins on digital technology, especially within the company's Consumer Digital Group, which continues to pressure the company's overall profitability. The ratings are supported by Kodak's: -- Strong credit protection metrics; -- Broad geographic revenue diversity; -- Strong brand name; -- Broad Consumer Digital Group product portfolio; -- Leading market position in traditional film market. Positive rating actions could occur if: -- Kodak exhibits consistent year-over-year improvement in digital profitability driven by a revenue mix shift toward higher-margin products, such as consumables for consumer inkjet printers and/or sustainable expense reductions; -- Significant improvement in free cash flow beyond Fitch's current expectations due to higher profitability as opposed to cash restructuring declines. Negative rating actions could occur if: -- The company undertakes significant debt-financed M&A or share repurchase activity; -- Ongoing deterioration in revenues and/or profitability resumes. Fitch believes liquidity at Dec. 31, 2007 was solid and supported by: approximately US$2.9 billion of cash and cash equivalents, and an undrawn US$1 billion senior secured RCF due October 2010 (approximately US$850 million net of letters of credit); and free cash flow from continuing operations, which is expected to improve in 2008 from a loss of US$52 million in 2007 due largely to the completion of the company's restructuring program, which required cash outlays of US$400 million-$600 million annually since 2004. Approximately US$150 million of residual cash restructuring payments are expected in 2008. Total debt as of Dec. 31, 2007 was approximately USUS$1.6 billion, consisting primarily of: US$250 million senior notes due May 2008, US$500 million senior notes due 2013, and US$575 million convertible senior notes due 2033, which have a conversion price of US$31.02 per share and which can be put to the company in October 2010. Fitch believes the US$250 million maturity in 2008 will be repaid with cash on hand. Fitch estimates total leverage and interest coverage of 1.5 times (x) and 7.8x, respectively, at Dec. 31, 2007, compared to 2.4x and 4.3x at Dec. 31, 2006. The Recovery Ratings (RR) reflect Fitch's belief that Kodak's enterprise value would be maximized in a liquidation, rather than a going-concern, scenario. In estimating liquidation, Fitch applies advance rates of 80%, 20%, and 10%, respectively, to Kodak's accounts receivables, inventories, and property, plant, and equipment balances as of the year ended Dec. 31, 2007. Fitch arrives at an adjusted reorganization value of US$1.6 billion after subtracting administrative claims. Based upon these assumptions, The 'RR1' recovery rating for Kodak's secured bank facility reflects Fitch's belief that 100% recovery is realistic. The 'RR4' recovery rating for the senior unsecured debt reflects Fitch's estimate that a recovery of only 31%-50% would be achievable. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. =========== F R A N C E =========== AXCAN INTERMEDIATE: Moody's Holds B1 Ratings on Capital Changes --------------------------------------------------------------- Moody's Investors Service affirmed the B1 Corporate Family and Probability of Default ratings of Axcan Intermediate Holdings, Inc., following changes to the capital structure that had originally been proposed in connection with the acquisition of Axcan Pharma Inc. The changes to the capital structure reflect difficult market conditions in the bank loan market. The ratings rationale was set out in a press release dated Jan. 25, 2008. Moody's took these rating actions: -- Withdrew the Ba2 (LGD 2, 26%) rating on the originally proposed US$350 million senior secured term loan B due 2015; -- Assigned Ba2 (LGD 2, 29%) to US$175 million senior secured term loan A due 2014; -- Assigned Ba2 (LGD 2, 29%) to US$228 million senior secured notes due 2015; -- Affirmed the B1 Corporate Family Rating; -- Affirmed the B1 Probability of Default Rating; -- Affirmed the Ba2 (LGD 2, 29%) rating on US$115 million senior secured revolving credit facility due 2014; -- Affirmed the B3 (LGD 5, 83%) rating on US$235 million senior unsecured notes due 2016; The ratings outlook is stable. Moody's also affirmed the Speculative Grade Liquidity Rating of SGL 2. Axcan Pharma Inc., based in Mont St-Hilaire, Quebec, is a specialty pharmaceutical company concentrating in the field of gastroenterology with operations in North America and Europe. Axcan had revenue of approximately US$349 million for the fiscal year ended Sept. 30, 2007. DELPHI CORP: Must Pay Professionals US$49 Mln in Fees & Expenses ---------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York directed Delphi Corp. and its debtor-affiliates to pay the professionals retained in the Debtors' bankruptcy cases approximately US$45,000,000 in fees and US$3,000,000 in expenses. Blake, Cassels & Graydon LLP seeks payment of CDNUS$16,920 for its professional fees for the period June 1, 2007, through Sept. 30, 2007, and reimbursement of CDNUS$1,312 for expenses incurred during the same period. Blake Cassels serves as the Debtors' Canadian counsel. 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. TEMBEC INC: Lenders, Shareholders OK Recapitalization ----------------------------------------------------- Tembec Inc.'s recapitalization transaction disclosed on Dec. 19, 2007, has been approved by the requisite majority of shareholders of Tembec and the requisite majority of holders of notes of Tembec Industries Inc. Tembec Inc. held a Special Meeting of Shareholders and Tembec Industries Inc. held a Meeting of Noteholders at which votes were held on matters relating to the approval of the Recapitalization. The Meetings were held in accordance with the Management Proxy Circular dated Jan. 25, 2008, and, with respect to the Meeting of Noteholders, an Order of the Ontario Superior Court of Justice made on Jan. 24, 2008. At the Special Meeting of Shareholders, all of the resolutions relating to the approval of the Recapitalization were approved by in excess of 95.34% of Shareholders who voted in person or by proxy. At the Meeting of Noteholders, all of the resolutions relating to the approval the Recapitalization were approved by in excess of 98.25% of Noteholders who voted in person or by proxy. "We are obviously pleased with the support shown by our shareholders and noteholders in favor of the recapitalization transaction," James Lopez, president and CEO of Tembec, said. "These approvals bring us one significant step closer towards the completion of the Recapitalization." Tembec also reached agreement with Investissement Quebec and the Societe generale de financement du Quebec in relation to the proposed recapitalization transaction. IQ and SGF currently own all of the preferred shares of Tembec and IQ is also a lender to Tembec. The Plan of Arrangement relating to the recapitalization transaction is subject to approval of the Ontario Superior Court of Justice and such approval hearing is being held on Feb. 27, 2008. The recapitalization transaction is expected to close on Feb. 29, 2008. About Tembec Headquartered in Montreal Quebec, Tembec Inc. (TSC:TBC) -- http://www.tembec.com/-- operates an integrated forest products business. The company's operations consist of four business segments: forest products, pulp, paper and chemicals. The forest products segment consists primarily of forest and sawmills operations, which produce lumber and building materials. The pulp segment includes the manufacturing and marketing activities of a number of different types of pulps. The paper segment consists primarily of production and sales of newsprint and bleached board. The chemicals segment consists primarily of the transformation and sale of resins and pulp by- products. As of Sept. 29, 2007, Tembec operated manufacturing facilities in New Brunswick, Quebec, Ontario, Manitoba, Alberta, British Columbia, the states of Louisiana and Ohio, as well as in Southern France. * * * Standard & Poor's placed Tembec Inc.'s long-term foreign and local issuer credit ratings at 'CC' in Dec. 20, 2007. WELLMAN INC: Files for Chapter 11 Protection in New York -------------------------------------------------------- Wellman Inc. and certain of its subsidiaries filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code for the Southern District of New York. The company intends to work with its constituencies to maximize the value generation for all of its stakeholders. "Although the company has taken numerous steps to reduce its debt and strengthen its balance sheet through the disposition of certain businesses, headcount reductions and other cost reductions, these actions were not sufficient to offset the deterioration in business conditions and the cost of our substantial debt obligations," Thomas Duff, Wellman's chairman and chief executive officer stated. "Filing for Chapter 11 allows us to continue operating our business without interruption while continuing to pursue our strategic alternative process." In conjunction with the filing, the company has received a commitment from its existing Revolving Credit Facility lenders for up to US$225 million in debtor-in-possession financing. Upon Court approval, the DIP financing, combined with cash from operations, will be used to fund post-petition operating expenses, including employee and supplier obligations. "I would like to thank our customers and vendors for their continued support during this process," Mr. Duff added. "We also appreciate the ongoing loyalty and support of our employees, whose dedication and hard work are critical to our success and to the future of the company. Our management team is committed to making this reorganization successful and leading Wellman toward a bright future." About Wellman Inc. Headquartered in Fort Mill, South Carolina, Wellman Inc. (OTC): WMAN.OB) -- http://www.wellmaninc.com/-- manufactures and markets high-quality polyester products, including PermaClear(R) brand PET (polyethylene terephthalate) packaging resins and Fortrel(R) brand polyester fibers. Wellman has recycling facilities in the US, Ireland, the Netherlands and France. WELLMAN INC: Case Summary & 30 Largest Unsecured Creditors ---------------------------------------------------------- Lead Debtor: Wellman, Inc. 1041 521 Corporate Center Drive, SC 29707 Tel: (212) 446-6411 Bankruptcy Case No.: 08-10595 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- P.T.A. Resources, L.L.C. 08-10596 Wellman Fibres, Ltd. 08-10598 A.L.G., Inc. 08-10599 M.R.F., Inc. 08-10600 Warehouse Associates, Inc. 08-10601 M.E.D. Resins, Inc. 08-10602 Carpet Recycling of Georgia, Inc. 08-10603 Prince, Inc. 08-10604 Wellman of Mississippi, Inc. 08-10605 Josdav, Inc. 08-10606 Fiber Industries, Inc. 08-10607 Type of Business: The Debtors manufacture and market packaging and engineering resins used in food and beverage packaging, apparel, home furnishings and automobiles. They manufacture resins and polyester staple fiber a three major production facilities. Wellman has recycling facilities in the US, Ireland, the Netherlands and France. See http://www.wellmaninc.com/ Chapter 11 Petition Date: February 22, 2008 Court: Southern District of New York (Manhattan) Judge: Stuart M. Bernstein Debtors' Counsel: Jonathan S. Henes, Esq. Kirkland & Ellis, L.L.P. Citigroup Center 153 East 53rd Street New York, NY 10022-4675 Tel: (212) 446-4927 Fax: (212) 446-4900 http://www.kirkland.com/ Wellman, Inc's Financial Condition as of December 31, 2007: Total Assets: US$124,277,177 Total Debts: US$600,084,885 Debtors' Consolidated List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ B.P. trade US$46,446,245 150 West Warrenville Road Naperville, IL 60563-8460 Equistar trade US$11,700,000 1221 McKinney, Suite 700 Houston, TX 77010 MEGlobal trade US$6,000,000 2020 Dow Center Midland, MI 48674 Graham Packaging trade US$986,701 2401 Pleasant Valley Road York, PA 17402 Plastipak trade US$690,787 9135 General Court Plymouth, MI 48170 San Miguel trade US$409,544 A.V. Industrial 491 Lima 1, Peru Western Container trade US$383,207 15 Smith Road, Suite 600 Midland, TX 79705 TransAtlantic trade US$303,217 P.O. Box 1660 Sydport Industrial Park Sydney, Nova Scotia B1P 6T7 G.E. Capital Financial trade US$296,473 2000 Corporate Ridge, Suite 1095 McLean, VA 22102 Mega Empack trade US$278,932 Via F.F.C.C. A. Tizimin N.O. 15682 Merida, Mexico 97160 A.&R. Transport, Inc. trade US$264,782 6253 North Foster Drive, Suite B Baton Rouge, LA 70805 Nilit America Corp. trade US$262,478 P.O. Box 2243 Greensboro, NC 27409 Columbia Recycling Corp. trade US$258,191 P.O. Box 2101 Dalton, GA 30722 Oracle Corp. trade US$224,889 Yoshino trade US$219,868 Hewlett Packard Financial trade US$202,048 Services Polivin trade US$185,196 Ahlstrom trade US$166,610 C.I.B.A. Specialty Chemicals trade US$152,827 Corp. Aspen Technology, Inc. trade US$146,091 Motion Industries, Inc. trade US$145,229 Honeywell International trade US$139,725 Saint Gobain Vetrotex Americas trade US$133,766 Plastic Technologies, Inc. trade US$104,856 Eastman Chemical Co. trade US$96,294 S.X.T. Transportation trade US$91,639 Technical Services, Inc. US$88,203 Linde Gas, L.L.C. trade US$87,605 Gulfpak, Inc. trade US$82,830 Coperian Corp. trade US$77,555 WELLMAN INC: Moody's Lowers Ratings on Bankruptcy Filing -------------------------------------------------------- Moody's Investors Service downgraded Wellman, Inc.'s corporate family rating to Ca from Caa2 and probability of default rating to D from Caa2, following the company's announcement that it has filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court, Southern District of New York. The ratings on the company's debt issues were also downgraded. The ratings will be withdrawn in the near future due to the bankruptcy. Wellman, Inc. -- Corporate family rating -- Ca from Caa2 -- Probability of default rating -- D from Caa2 -- US$185mm First lien term loan due 2009 -- Caa2 (LGD2, 29%) from B3 (LGD2, 29%) -- US$265mm Second lien term loan due 2010 -- C (LGD5, 79%) from Caa3 (LGD5, 79%) Wellman manufactures and markets PET (polyethylene terephthalate) packaging resins under the PermaClear brand name and polyester staple fibers under the Fortrel brand name. The company is headquartered in Fort Mill, South Carolina and had revenues from continuing operations of US$1.3 billion for the LTM ended September 30, 2007. Wellman, Inc. manufactures and markets high-quality polyester products, including PermaClear brand PET (polyethylene terephthalate) packaging resins and Fortrel brand polyester fibers. ============= G E R M A N Y ============= AOL ANWENDERORIENTIERTE: Claims Registration Ends March 20 ---------------------------------------------------------- Creditors of AOL Anwenderorientierte EDV-Loesungen Vertriebsgesellschaft mbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Bruno Fraas. Creditors and other interested parties are encouraged to attend the meeting at 10:15 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 Wuerzburg Room 14 Second Floor Justiznebenstelle Tiepolostr. 6 Wuerzburg 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: Bruno Fraas Heinestr. 7 b 97070 Wuerzburg Germany Tel: 0931/359 800 The District Court of Wuerzburg opened bankruptcy proceedings against AOL Anwenderorientierte EDV-Loesungen Vertriebsgesellschaft mbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AOL Anwenderorientierte EDV-Loesungen Vertriebsgesellschaft mbH Attn: Ulrich Dietzen, Manager Landwehrstr. 30 97249 Eisingen Germany AUTOHAUS BASMANN: Claims Registration Period Ends March 20 ---------------------------------------------------------- Creditors of Autohaus Basmann GmbH & Co. KG have until March 20, 2008, to register their claims with court-appointed insolvency manager Heinz-Juergen Kluesener. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Stade Hall 113 Main Building Wilhadikirchhof 1 21682 Stade 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: Heinz-Juergen Kluesener Kurze Strasse 3 21682 Stade Germany Tel: 04141-93040 Fax: 04141-930499 E-mail: kluesener@fricke-rechtsanwaelte.de The District Court of Stade opened bankruptcy proceedings against Autohaus Basmann GmbH & Co. KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Autohaus Basmann GmbH & Co. KG Gewerbering 35 27432 Bremervoerde Germany BACHMANN GMBH: Claims Registration Period Ends March 20 ------------------------------------------------------- Creditors of Bachmann GmbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Thorsten Fuest. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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. Thorsten Fuest Gerichtstr. 3 33602 Bielefeld Germany The District Court of Bielefeld opened bankruptcy proceedings against Bachmann GmbH on Feb. 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bachmann GmbH Attn: Matthias Bachmann, Manager August-Bebel-Str. 144 33602 Bielefeld Germany BERGKAMENER HOCHBAU: Claims Registration Period Ends March 19 ------------------------------------------------------------- Creditors of Bergkamener Hochbau GmbH have until March 19, 2008, to register their claims with court-appointed insolvency manager Thorsten Klepper. Creditors and other interested parties are encouraged to attend the meeting at 1:20 p.m. on April 20, 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 Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund 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: Thorsten Klepper Kleppingstrasse 20 44135 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Bergkamener Hochbau GmbH on Feb. 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bergkamener Hochbau GmbH Hafenweg 3 59192 Bergkamen Germany BERND NEUHAUSEL: Claims Registration Period Ends March 20 --------------------------------------------------------- Creditors of Bernd Neuhausel Baudekoration GmbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Peter Jost. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.m. on May 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 Koenigstein/Ts. Hall 106 Burgweg 9 61462 Koenigstein/Ts. 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 Jost Pfingstweidstrasse 3 D 60316 Frankfurt am Main Germany Tel: 069-2097390 Fax: 069-20973929 The District Court of Koenigstein/Ts. opened bankruptcy proceedings against Bernd Neuhausel Baudekoration GmbH on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bernd Neuhausel Baudekoration GmbH Attn: Ralf Neuhausel, Manager Joseph-Haydn-Strasse 12c 65812 Bad Sode Germany BESTRO MODEVERTRIEB: Claims Registration Period Ends March 4 ------------------------------------------------------------ Creditors of BESTRO Modevertrieb GmbH have until March 4, 2008, to register their claims with court-appointed insolvency manager Axel Bierbach. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on April 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Axel Bierbach Schwanthaler Str. 32 80336 Muenchen Germany Tel: 089/54511-0 Fax: 089/54511444 The District Court of Munich opened bankruptcy proceedings against BESTRO Modevertrieb GmbH on Feb. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BESTRO Modevertrieb GmbH Taunusstr. 45 80807 Munchen Germany CHRISTIANE GERTURD: Claims Registration Period Ends March 20 ------------------------------------------------------------ Creditors of Christiane Gerturd Horn GmbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Inge Rall. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on April 17, 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 Stuttgart Hall 4 Ground Floor Hauffstr. 5 (Am Neckartor) 70190 Stuttgart 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: Inge Rall Neckarstr. 144-146 70190 Stuttgart Germany Tel: 0711/120 900 00 Fax: 0711/120 900 09 The District Court of Stuttgart opened bankruptcy proceedings against Christiane Gerturd Horn GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Christiane Gerturd Horn GmbH Koenigstr. 22 70173 Stuttgart Germany CONTRABAU HUMME: Claims Registration Period Ends March 19 --------------------------------------------------------- Creditors of ConTraBau Humme GmbH have until March 19, 2008, to register their claims with court-appointed insolvency manager Siegfried Mueller. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Aachen Meeting Hall K 5 Third Floor Alter Posthof 1 52062 Aachen 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: Siegfried Mueller Zum Markt 10 53894 Mechernich Germany Tel: 02443/9812-0 Fax: 02443/9812-19 The District Court of Aachen opened bankruptcy proceedings against ConTraBau Humme GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ConTraBau Humme GmbH Rather Strasse 4 52385 Nideggen Germany D. A. CORDS: Claims Registration Period Ends March 19 ----------------------------------------------------- Creditors of D. A. Cords Soehne GmbH have until March 19, 2008, to register their claims with court-appointed insolvency manager Wolfgang Weidemann. Creditors and other interested parties are encouraged to attend the meeting at 8:35 a.m. on April 30, 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 Pinneberg Hall 3 First Floor Bahnhofstrasse 17 25421 Pinneberg 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: Wolfgang Weidemann Wendenstr. 4 20097 Hamburg Germany The District Court of Pinneberg opened bankruptcy proceedings against D. A. Cords Soehne GmbH on Feb.1 ,2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: D. A. Cords Soehne GmbH Attn: Thomas Rustige, Manager Kuhlenstrasse 9 25436 Uetersen Germany DOERKEN STAHL: Claims Registration Period Ends March 20 ------------------------------------------------------- Creditors of Doerken Stahl- und Anlagenbau GmbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Andreas Schoss. 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 Hagen Hall 259 Second Floor Heinitzstrasse 42/44 58097 Hagen 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 Schoss Alter Markt 9-13 42275 Wuppertal Germany The District Court of Hagen opened bankruptcy proceedings against Doerken Stahl- und Anlagenbau GmbH on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Doerken Stahl- und Anlagenbau GmbH Attn: Norbert Kasbach, Manager Lohmannstr. 6-8 58256 Ennepetal Germany DOHNAER HOCH: Claims Registration Period Ends March 4 ----------------------------------------------------- Creditors of Dohnaer Hoch- und Tiefbau GmbH have until March 4, 2008, to register their claims with court-appointed insolvency manager Andre Nickel. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m on April 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Andre Nickel Reicker Strasse 12 01219 Dresden Germany Website: www.schulz-nickel-schulz.de The District Court of Dresden opened bankruptcy proceedings against Dohnaer Hoch- und Tiefbau GmbH on Feb. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dohnaer Hoch- und Tiefbau GmbH Altenberger Str. 2 01809 Dohna Germany Ing. Falko Schneider, Manager Wachauer Str. 9 04299 Leipzig Germany DUERR AG: Earns EUR21 Million for Year Ended December 31 -------------------------------------------------------- The Duerr Group released preliminary financial results for fiscal year and fourth quarter ended Dec. 31, 2007. Duerr posted EUR21 million in net profit on EUR1.48 billion in net revenues for fiscal year 2007, compared with EUR8.2 million in net profit on EUR1.36 billion in net revenues for 2006. Duerr posted EUR28 million in EBIT on EUR461 billion in net revenues for fourth quarter 2007, compared with EUR18.8 million in EBIT on EUR377.3 billion in net revenues for the same period in 2006. As of Dec. 31, 2007, Duerr had EUR61 million in net financial debt and 5,936 employees. "2007 was a good year for Duerr," CEO Ralf W. Dieter said. "We delivered what we had announced. The effects of our Group-wide FOCUS program fed through fully in 2007. On the basis of the strong improvement in earnings we are proposing to the Supervisory Board that we pay a dividend to our shareholders for the first time since 2002." "The high level of incoming orders, especially from the growth regions, has continued in the first two months of 2008," Mr. Dieter. We succeeded in turning round the North America business in 2007, and won a number of orders which will assure a good level of capacity utilization until well into 2009." Outlook In view of the high order backlog, EUR1.08 billion as of Dec. 31, 2007, Group sales should increase by between 5% and 10% in 2008. Earnings should improve substantially thanks to more efficient processes. For 2008, the company targets an EBIT margin of 5%. About Duerr Headquartered in Stuttgard, Germany, The Duerr Group -- http://www.durr.com/en/-- supplies products, systems, and services for automobile manufacturing. Duerr designs and builds paint shops and final assembly plants. The Duerr Group also operates in Czech Republic, France, U.K., Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey, Australia, Brazil, China, India, Japan, Mexico, South Africa, South Korea and the U.S.A. * * * As of Nov. 19, 2007, Duerr AG carries B2 Corporate Family, B2 Probability of Default and Caa1 Senior Subordinate ratings from Moody's Investor Service. Moody's said the outlook is stable. The company also carries B Long-Term Foreign Issuer Credit and Local Issuer Credit ratings from Standard & Poor's. S&P said the Outlook is Stable. GELATERIA CONTI: Claims Registration Period Ends March 19 --------------------------------------------------------- Creditors of Gelateria Conti GmbH have until March 19, 2008, to register their claims with court-appointed insolvency manager Gerhard Brinkmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 30, 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 13 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: Gerhard Brinkmann Freiligrathstrasse 1 18055 Rostock Germany The District Court of Rostock opened bankruptcy proceedings against Gelateria Conti GmbH on Feb. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gelateria Conti GmbH Attn: Dirk Kaydan, Manager Breite Strasse 11 18055 Rostock Germany GESCHWISTER WOLBER: Claims Registration Period Ends March 18 ------------------------------------------------------------ Creditors of Geschwister Wolber GmbH have until March 18, 2008, to register their claims with court-appointed insolvency manager Markus Lehmkuehler. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 25, 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 Bonn Hall S 2.22 William-Strasse 23 53111 Bonn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Markus Lehmkuehler Wilhelmstr. 40 53111 Bonn Germany Tel: 0228/92 66 60 Fax: 92 66 699 The District Court of Bonn opened bankruptcy proceedings against Geschwister Wolber GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Geschwister Wolber GmbH Limbachstr. 12 53343 Wachtberg Germany Attn: Wilhelm Wolber, Manager Limbachstr. 7 53343 Wachtberg Germany HANSEN-BAU GMBH: Claims Registration Period Ends March 19 --------------------------------------------------------- Creditors of Hansen-Bau GmbH have until March 19, 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 30, 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 13 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: Dirk Decker Stampfm�llerstrasse 39 18057 Rostock Germany The District Court of Rostock opened bankruptcy proceedings against Hansen-Bau GmbH on Feb. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hansen-Bau GmbH Attn: Michael Hansen und Susanne Hansen, Managers Alte Dorfstrasse 1 18246 Steinhagen Germany HEINRICH SCHNEIDER: Claims Registration Ends March 20 ----------------------------------------------------- Creditors of Heinrich Schneider GmbH have until March 20, 2008 to register their claims with court-appointed insolvency manager Dr. Boris A. Schmidt-Burbach. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Marburg/Lahn Hall 157 Universitatsstrasse 48 35037 Marburg/Lahn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. 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 Heinrich Schneider GmbH on Jan. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heinrich Schneider GmbH Attn: Manfred Schneider, Manager Neue Kasseler Strasse 3 1/2 35039 Marburg Germany HELGE ALTSOHN: Claims Registration Ends March 20 ------------------------------------------------ Creditors of Helge Altsohn Verwaltungs GmbH have until March 20, 2008 to register their claims with court-appointed insolvency manager Heinz-Juergen Kluesener. Creditors and other interested parties are encouraged to attend the meeting at 9:45 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 Stade Hall 113 Main Building Wilhadikirchhof 1 21682 Stade 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: Heinz-Juergen Kluesener Kurze Strasse 3 21682 Stade Germany Tel: 04141-93040 Fax: 04141-930499 E-mail: kluesener@fricke-rechtsanwaelte.de The District Court of Stade opened bankruptcy proceedings against Helge Altsohn Verwaltungs GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Helge Altsohn Verwaltungs GmbH Gewerbering 35 27432 Bremervoerde Germany Attn: Helge Altsohn, Manager Acker 13 27432 Bremervoerde Germany JEWO FLEISCHWARENHANDELS: Claims Registration Ends March 20 ----------------------------------------------------------- Creditors of JEWO Fleischwarenhandelsgesellschaft mbH have until March 20, 2008 to register their claims with court-appointed insolvency manager Tim Brauer. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.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 Worms Hall 320 Main Building Hardtgasse 6 67547 Worms Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tim Brauer Alzeyer Strasse 31 67549 Worms Germany Tel: 06241/9106-0 Fax: 06241/910610 The District Court of Worms opened bankruptcy proceedings against JEWO Fleischwarenhandelsgesellschaft mbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: JEWO Fleischwarenhandelsgesellschaft mbH Attn: Peter Christian Jeckel, Manager Vangionenstrasse 5 67547 Worms Germany KURIOS BETRIEBS: Claims Registration Ends March 20 -------------------------------------------------- Creditors of KURIOS Betriebs- & Handels GmbH have until March 20, 2008 to register their claims with court-appointed insolvency manager Anke Keller. Creditors and other interested parties are encouraged to attend the meeting at 3:30 p.m. on April 29, 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 Muehldorf a. Inn Hall 112 Innstrasse 1 Muehldorf a. Inn 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: Anke Keller Leopoldstrasse 139 80804 Munich Germany The District Court of Muehldorf a. Inn opened bankruptcy proceedings against KURIOS Betriebs- & Handels GmbH on Feb. 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KURIOS Betriebs- & Handels GmbH Attn: Kurt Zauner, Manager Stadtplatz 51 84453 Muehldorf a. Inn Germany LODER GMBH: Claims Registration Period Ends March 4 --------------------------------------------------- Creditors of Loder GmbH have until March 4, 2008, to register their claims with court-appointed insolvency manager Oliver Schartl. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on April 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Oliver Schartl Schwanthalerstr. 32 80336 Muenchen Germany Tel: 089-545110 Fax: 089-54511-444 The District Court of Munich opened bankruptcy proceedings against Loder GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Loder GmbH Kappelhof 2 85247 Schwabhausen Germany Attn: Franz Eichinger, Manager Albertshof 1 85258 Weichs Germany MARQUARDT MASCHINENBAU: Claims Registration Ends March 20 --------------------------------------------------------- Creditors of Marquardt Maschinenbau GmbH have until March 20, 2008 to register their claims with court-appointed insolvency manager Andree Wernicke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 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: Andree Wernicke Grottenau 6 86150 Augsburg Germany The District Court of Augsburg opened bankruptcy proceedings against Marquardt Maschinenbau GmbH on Jan. 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Marquardt Maschinenbau GmbH Ostrachstr. 8 86159 Augsburg Germany Attn: Herbert Marquardt, Manager Dorffeldstr. 14 86316 Friedberg Germany META - LOG GMBH: Claims Registration Ends March 20 -------------------------------------------------- Creditors of Meta - Log GmbH have until March 20, 2008 to register their claims with court-appointed insolvency manager Dr. Sebastian Braun. Creditors and other interested parties are encouraged to attend the meeting at 1:45 p.m. on April 24, 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 Fuerth Hall 3 Office Building Ground Floor Baumenstrasse 32 Fuerth 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. Sebastian Braun Stoeckig 46 90765 Fuerth Germany Tel: 0911/9792491 Fax: 0911/9792492 The District Court of Fuerth opened bankruptcy proceedings against Meta - Log GmbH on Feb. 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Meta - Log GmbH Untere Fischerstr. 17 90762 Fuerth Germany PEUCKER & FILLERS: Claims Registration Period Ends March 13 ----------------------------------------------------------- Creditors of Peucker & Fillers Gross- und Einzelhandels GmbH have until March 13, 2008 to register their claims with court- appointed insolvency manager Dr. Winfried Andres. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on March 31, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen 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. Winfried Andres Heinrich-Held-Str. 16 45133 Essen Germany Tel: 0201 330550 The District Court of Essen opened bankruptcy proceedings against Peucker & Fillers Gross- und Einzelhandels GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Peucker & Fillers Gross- und Einzelhandels GmbH Alte Landstr. 5 45329 Essen Germany Attn: Christian Peucker, Manager Alte Landstr. 5 45329 Essen Germany SWS GMBH: Claims Registration Period Ends March 18 -------------------------------------------------- Creditors of SWS GmbH have until March 18, 2008, to register their claims with court-appointed insolvency manager Rolf Otto Neukirchen. 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 Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rolf Otto Neukirchen Zweigertstr. 28-30 45130 Essen Germany The District Court of Essen opened bankruptcy proceedings against SWS GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SWS GmbH Heinz-Backer-Str. 1 45356 Essen Germany ============= I R E L A N D ============= INTERNATIONAL SECURITIES: Collins Stewart to Take Over Company -------------------------------------------------------------- Collins Stewart Plc has entered into an agreement to acquire 100% of International Securities Trading Corp., Fergal O'Brien writes for Bloomberg News. Collins Stewart will inject EUR5 million in fresh capital into of capital into ISTC, the company said in a statement to Bloomberg News. "[The approval of the deal] will ensure that the company survives the examinership process and is in a position to develop the business into the future," ISTC told Bloombeg News. As reported in the TCR-Europe on Dec. 26, 2007, Hon. Peter Kelly of The High Court of Ireland placed ISTC under examinership and appointed John McStay as examiner. In January 2008, Justice Kelly extended ISTC's examinership after Ms. McStay confirmed the opinion of an independent accountant that the company has a reasonable prospect of survival. Headquartered in Dublin, Ireland, International Securities Trading Corporation Plc -- http://www.istcorporation.com/-- provides investment grade Tier 1 and Tier II hybrid bank capital via private placement issues and primary market participation. Acting as principal in private placement transactions, ISTC is uniquely positioned to offer bespoke solutions and certainty of execution to issuers. The company disclosed on Nov. 12, 2007, that given the uncertainty to ISTC's funding position, the company will enter into discussions with its providers of finance with the objective of making appropriate amendments to their respective financing terms. Pending the outcome of these negotiations, ISTC has decided to defer certain payments under financing obligations. LUNAR FUNDING V: Moody's Lowers Ratings on 11 Note Classes ---------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade 11 classes of notes issued by Securitized Product of Restructured Collateral Ltd, Lunar Funding V plc, and Linker Finance plc. These rating actions are a response to credit deterioration in the underlying portfolios, in some cases severe. The transactions are synthetic CDOs referencing, among other assets, US RMBS and/or US ABS CDOs of the 2005 and 2006 vintages. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Linker Finance plc: (1) US$28,500,000 Class C Floating Rate Secured Notes due 2045 Current Rating: A1, on review for downgrade Prior Rating: Aa2, on review for downgrade (2) US$18,000,000 Class D Floating Rate Secured Notes due 2045 Current Rating: Baa1, on review for downgrade Prior Rating: A2, on review for downgrade (3) US$18,000,000 Class E Floating Rate Secured Notes due 2045 Current Rating: Ba1, on review for downgrade Prior Rating: Baa2, on review for downgrade Lunar Funding V plc: (1) Series 2007-36 US$50,000,000 Notes due 2052 Current Rating: Aa1, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) Series 2007-37 US$100,000,000 Notes due 2052 Current Rating: Aa3, on review for downgrade Prior Rating: Aa2, on review for downgrade Securitized Product of Restructured Collateral Ltd SPC - Mustique Series 2007-1: (1) Class A2A EUR 9,620,000 Mustique 2007-1 Note Due December 2051 Current Rating: Caa2, on review for downgrade Prior Rating: Ba1, on review for downgrade (2) Class A2B EUR19,620,000 Mustique 2007-1 Note Due December 2051 Current Rating: Caa2, on review for downgrade Prior Rating: Ba1, on review for downgrade (3) Class B EUR19,620,000 Mustique 2007-1 Note Due December 2051 Current Rating: Caa3, on review for downgrade Prior Rating: Ba2, on review for downgrade (4) Class C EUR13,080,000 Mustique 2007-1 Note Due December 2051 Current Rating: Caa3, on review for downgrade Prior Rating: Ba2, on review for downgrade (5) Class D EUR19,620,000 Mustique 2007-1 Note Due December 2051 Current Rating: Ca, on review for downgrade Prior Rating: Ba3, on review for downgrade (6) Class E EUR8,175,000 Mustique 2007-1 Note Due December 2051 Current Rating: Ca, on review for downgrade Prior Rating: Ba3, on review for downgrade PALMER SQUARE 2: Moody's Cuts Ratings on Three Note Classes ----------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade four classes of notes issued by Classic I (Netherlands) B.V. and Palmer Square 2 plc. These rating actions are a response to credit deterioration in the underlying portfolios. The transactions are cash CDOs referencing, among other assets, US ABS CDOs of the 2005 and 2006 vintages. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Classic I (Netherlands) B.V. - Series 2006-1: (1) Series 2006- USD 49,281,000 Class A2 Secured Notes due October 2053 Current Rating: B3, on review for downgrade Prior Rating: Baa2, on review for downgrade Palmer Square 2 plc: (1) Class B-1 USD 19,875,000 Deferrable Floating Rate Notes due 2045 Current Rating: Aa3, on review for downgrade Prior Rating: Aa1, on review for downgrade (2) Class C USD 17,500,000 Deferrable Floating Rate Notes due 2045 Current Rating: Baa1, on review for downgrade Prior Rating: Aa3, on review for downgrade (3) Class D USD 12,500,000 Deferrable Floating Rate Notes due 2045 Current Rating: Ba2, on review for downgrade Prior Rating: A3, on review for downgrade PALMER SQUARE 3: Cuts Ratings on Five Classes & Maintains Review ---------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade five classes of notes and downgraded one class of notes issued by Palmer Square 3 Limited. These rating actions are a response to severe credit deterioration in the underlying portfolio. The transaction is a managed cash CDO of ABS, containing roughly 40% ABS CDOs and 27% sub-prime RMBS of the 2005, 2006, and 2007 vintages. Many of the assets in the portfolio have been downgraded, placed on review for downgrade, or both since October 2007. Moody's will continue to monitor all deals with exposure to US sub-prime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Palmer Square 3 Limited: (1) US$300,000,000 Class A2 Floating Rate Notes due 2052 Current Rating: Aa2, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) US$300,000,000 Class A3 Floating Rate Notes due 2052 Current Rating: Baa2, on review for downgrade Prior Rating: Aaa, on review for downgrade (3) US$116,000,000 Class A4 Floating Rate Notes due 2052 Current Rating: Ba3, on review for downgrade Prior Rating: Ba1, on review for downgrade (4) US$39,000,000 Class B Floating Rate Notes due 2052 Current Rating: B3, on review for downgrade Prior Rating: Ba2, on review for downgrade (5) US$18,000,000 Class C Deferrable Floating Rate Notes due 2052 Current Rating: Caa3, on review for downgrade Prior Rating: Ba3, on review for downgrade (6) US$17,000,000 Class D Deferrable Floating Rate Notes due 2052 Current Rating: C Prior Rating: B3, on review for downgrade VALENCE TECH: Names G. H. Fischer as Chief Financial Officer ------------------------------------------------------------ Valence Technology Inc. appointed Galen H. Fischer, CPA, as chief financial officer, effective March 3. Mr. Fischer will be replacing Thomas F. Mezger who has resigned from the company. "We are delighted to welcome Galen Fischer to the senior management team," Robert L. Kanode, president and CEO of Valence Technology, stated. "Galen brings more than 20 years of global finance, accounting and operations experience with companies ranging in size from venture-funded technology startups to a mature Fortune 100 financial services business. With his background in senior-level strategic and operational financial positions, as well as hands-on, day-to-day tactical execution skills, Galen is well prepared to lead Valence's expansion globally." "I also want to thank Tom Mezger for his dedicated service to the company over the last few years and wish him every success in his future endeavors," Mr Kanode added. Prior to joining Valence Technology, Mr. Galen held the title of corporate controller for Motive, a publicly traded global communications software company. Previous to his role with Motive, he was vice president of Finance with United Devices, a venture-funded, grid software company. During his 10 years as a private consultant, he also worked with vcfo Inc., a business consulting firm that specializes in helping early-stage, rapid-growth companies. His clients were high-tech, including software, hardware, contract manufacturing, and services. Prior to consulting, Mr. Galen was with NYLACOR for eight years, a subsidiary of New York Life. During his career with NYLACOR, he rose to the senior financial and operations positions and was responsible for Accounting, Finance, IT, Underwriting, Billing, Customer Service, Compliance, and Claims Processing. Mr. Galen started his career in public accounting and as the senior financial officer for companies in diverse industries. Mr. Galen, 52, is a Texas Certified Public Accountant and earned a BBA in Accounting from Texas State University San Marcos, and an MBA from The University of Texas at Austin. About Valence Technology Headquartered in Austin, Texas, Valence Technology Inc. (Nasdaq: VLNC) -- http://www.valence.com/-- develops and markets Lithium Phosphate Rechargeable Batteries. The company has facilities in Austin, Texas; Las Vegas, Nevada; Mallusk, Northern Ireland and Suzhou, China. Going Concern Doubt PMB Helin Donovan LLP, in Austin, Texas, expressed substantial doubt about Valence Technology Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's recurring losses from operations, negative cash flows from operations and net stockholders' capital deficit. At Sept. 30, 2007, the company's principal sources of liquidity were cash and cash equivalents of US$2.5 million. The company expects that its sources of liquidity will not be sufficient for the remaining fiscal year. ========= I T A L Y ========= ALITALIA SPA: Denies Seeking EUR300-Million Bridging Loan --------------------------------------------------------- Alitalia S.p.A. has denied published reports that it is seeking a EUR300 million emergency loan in June 2008 to remain afloat, Marco Bertacche writes for Bloomberg News. Il Sole 24 Ore, citing people privy with the carrier, reported that Alitalia may take a loan backed by the Italian government should its planned EUR700 million capital increase fails. The Italian daily added that Alitalia may also sell some assets as alternative to the loan. "It's an important denial, because it shows Alitalia doesn't want to resolve its liquidity problems with a loan but is instead still seeking to merge with a partner," Marco Aleni at IG Markets told Bloombeg News. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: January Traffic Shows Year-on-Year Decrease --------------------------------------------------------- Alitalia S.p.A. has released its traffic statistics for January 2008. January 2008 traffic data compared to the same period in 2007 showed a decrease in both passenger and cargo businesses. Passenger business showed a decrease in terms of traffic (-8.0%) with a decrease of capacity offered by 4.5% compared with the same period of 2007. To be noted that these figures reflect a change in the marketing strategy, which aims to increase profitability rather than preserve volumes, as clearly showed by the increase of Yield levels. January 2008 Cargo statistics, compared to January 2007, showed a decrease in terms of goods flown (-3.8%) with capacity offered down 7.6%. Passengers Operations Traffic, measured in Revenue Passenger Kilometers, decreased by 8.0% and the capacity, measured in Available Seat Kilometers, decreased by 4.5%. Load factor decreased by 2.5 percentage points reaching 64.5%. Alitalia carried 1.7 million passengers, down 5.2% compared to January 2007. Detailed comparisons with January 2007: * Domestic Passenger Network: traffic increased by 0.2% with offered capacity up 2.0%. Load factor was 54.3%; * International Passenger Network: traffic decreased by 8.4% and offered capacity decreased by 4.3%. Load factor was 57.8%; * Intercontinental Passenger Network: traffic decreased by 10.0% and offered capacity decreased by 7.0%. Load factor was 73.9%. Cargo Operations January 2008 Cargo performance showed, compared to January 2007, a traffic decrease by 3.8% (traffic, measured in terms of Revenue Ton Kilometers) while capacity was down 7.6%. Overall Load factor was 63.0% with an increase by 2.5 percentage points. Regarding the All-Cargo sector, Load factor was 77.7% with an increase by 13.6 percentage points compared with the same period of 2007. 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. DANA HOLDING: Directors and Officers Named ------------------------------------------ Dana Holding Corporation, successor to Dana Corporation, said in a regulatory filing with the U.S. Securities and Exchange Commission that it has appointed nine individuals to its Board of Directors: * Michael J. Burns, * Gary L. Convis, * John M. Devine, * Mark T. Gallogly, * Richard A. Gephardt, * Stephen J. Girsky, * Terrence J. Keating, * Mark A. Schulz, and * Jerome B. York. Subsequent to his election as member of the Board, on the Effective Date, Mr. Burns tendered his resignation as president, chief executive officer, chief operating officer and director, the SEC filing said. On Jan. 31, 2008, when the Third Amended Joint Plan of Reorganization of Old Dana and its debtor-affiliates effective, other former members of the Old Dana Board also resigned pursuant to the terms of the Plan. These resigned members are A. Charles Baillie, David E. Berges, Edmund M. Carpenter, Richard M. Gabrys, Samir G. Gibara, Cheryl W. Grise, James P. Kelly, Marilyn R. Marks and Richard B. Priory. Executive Officers On the Effective Date, Dana named John M. Devine as the company's executive chairman, and elected other executive officers: Executive Officer Position ----------------- -------- John M. Devine Executive Chairman Michael J. Burns President, Chief Executive Officer, and Chief Operating Officer Kenneth A. Hiltz Chief Financial Officer Richard J. Dyer Vice President & Chief Accounting Officer Ralf Goettel President, Europe & Engine Products Groups Paul E. Miller Vice President, Purchasing Nick L. Stanage President, Heavy Vehicle Products Thomas R. Stone President, Global Traction Products Group Robert H. Marcin Chief Administrative Officer In connection with his appointment as Dana's Executive Chairman, the Compensation Committee agreed to provide Mr. Devine: -- a US$1,000,000 annual salary; -- an annual target bonus of 150% of base salary based on the achievement of performance measures set by the Board; -- an initial grant of options to purchase 800,000 shares of Common Stock with an exercise price of US$12.75 based on the closing stock price on the grant date, one third of which will vest on each of Aug. 4, 2008, Aug. 4, 2009 and Aug. 4, 2010; -- an initial term of one year, subject to renewal for additional one-year terms; -- reimbursement for reasonable temporary residence expenses including use of private corporate aircraft up to 30 round trips; -- inclusion in future change of control agreements; and -- participation in life and disability insurance and other benefit programs of Dana generally applicable to senior executives. According to Marc S. Levin, Dana's general counsel and secretary, Mr. Devine's employment agreement will provide for severance payments in the event that his position with the company is involuntarily terminated without cause or terminated by Mr. Devine for "good reason," as well as payments following a change in control of the company. Indemnification Agreements Dana also entered into an indemnification agreement with each current member of the company's Board of Directors. The Indemnification Agreements generally provide that the company will indemnify the D&O to the fullest extent permitted or required by the laws of the state of Delaware, against any and all expenses, judgments, fines, penalties and amounts paid in settlement of the claim. About Dana Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. (Dana Corporation Bankruptcy News, Issue No. 70; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on Feb. 13, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. The outlook is negative. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. IT HOLDING: Joins Italian Stock Exchange's STAR Segment ------------------------------------------------------- IT Holding S.p.A. joined the Italian Stock Exchange's STAR segment reserved for medium caps that comply with specific requisites in terms of corporate information and corporate governance. The Italian Stock Exchange will put IT Holding's ordinary shares for trading on the STAR segment beginning Feb. 28, 2008. The STAR segment is the segment of the electronic stock market which sees trading of medium cap shares issued by companies that undertake to comply with strict requisites in terms of liquid assets, corporate governance and public information, so as to ensure greater transparency and protection of minority shareholders. "The assignment of STAR rating and admission to trading on said segment of the market is a consequence of the increased free float to 33%, recently achieved, and of the adoption, since last years, of corporate governance model, compliant to the Italian Stock Exchange recommendations," Tonino Perna, IT Holding chairman and CEO disclosed. "The access to this segment represents another warranty for our shareholders in terms of governance rules. In particular, we adopted a management incentive plan, linked to corporate targets, coopted independent directors and created an internal audit committee," Mr. Perna added. "We are confident that our joining the STAR segment can be appreciated by financial markets, allowing us to improve the share's liquidity, thanks also to appointment of UniCredit Markets & Investment Banking to the role of specialist," Mr. Perna said. Headquartered in Milan, Italy, IT Holding S.p.A. -- http://www.itholding.it/-- controls a group of companies that design, produce and distribute high-quality products under owned brands -- Ferre, Malo, Exte -- as well as under license agreements -- D&G, Versus, Versace Jeans Couture, Just Cavalli, C'N'C Costume National. Worldwide distributing network includes 29 directly operated stores, 111 other mono-brand stores and over 4,000 highly selected department and specialty stores. IT Holding has over 1,700 employees. It went public on November 1997 and its shares are traded on Milan Stock Exchange. * * * As of Feb. 12, 2008, IT Holding S.p.A. carries Moody's B3 Corporate Family and Probability-of-Default rating. Moody's said the outlook is stable. The company also carries Standard & Poor's B- long-term foreign issuer credit rating, 'B-' long-term local issuer credit rating with stable outlook. =================== K A Z A K H S T A N =================== ALEX INVEST: Creditors Must File Claims by March 28 --------------------------------------------------- LLP Microcredit Organization Alex Invest has declared insolvency. Creditors have until March 28, 2008, to submit written proofs of claims to: LLP Microcredit Organization Alex Invest Djangildin Str. 25-74 Saryarka Astana Kazakhstan BAITEREK LLP: Claims Deadline Slated for March 21 ------------------------------------------------- LLP Commercial-Manufacturing Company Baiterek has declared insolvency. Creditors have until March 21, 2008, to submit written proofs of claims to: LLP Commercial-Manufacturing Company Baiterek Pushkin Str. 129-62 Almaty Kazakhstan Tel: 8 (3272) 77-91-66 DINAS LLP: Claims Filing Period Ends March 28 --------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan has declared LLP Dinas insolvent on Jan. 22, 2008. Creditors have until March 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of West Kazakhstan Seifullin Str. 37 Uralsk West Kazakhstan Kazakhstan DOUL INTERNATIONAL: Creditors' Claims Due on March 28 ----------------------------------------------------- LLP Doul International Kazakhstan has declared insolvency. Creditors have until March 28, 2008, to submit written proofs of claims to: LLP Doul International Kazakhstan Novaya Str. 69 Koktobe Almaty Kazakhstan GIDROSPETSSTROY JSC: Claims Registration Ends March 28 ------------------------------------------------------ Representation of JSC Gidrospetsstroy in Astana has declared insolvency. Creditors have until March 28, 2008, to submit written proofs of claims to: JSC Gidrospetsstroy Abai ave. 64 Almaty Kazakhstan JAS-JAN LLP: Creditors Must File Claims by March 28 --------------------------------------------------- The Tax Committee of Almaty has ordered the compulsory liquidation of LLP Jas-Jan (RNN 09500030205). Creditors have until March 28, 2008, to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 KAMKOR CJSC: Claims Deadline Slated for March 28 ------------------------------------------------ CJSC Automoto Service and Trade Kamkor has declared insolvency. Creditors have until March 28, 2008, to submit written proofs of claims to: CJSC Automoto Service and Trade Kamkor Kentau, Panfilov Str. South Kazakhstan Kazakhstan KURYLYS CONSTRUCTION: Claims Filing Period Ends March 21 -------------------------------------------------------- LLP Kurylys Construction has declared insolvency. Creditors have until March 21, 2008, to submit written proofs of claims to: LLP Kurylys Construction Auezov Str. 2 Almaty Kazakhstan PET CO: Creditors' Claims Due on March 28 ----------------------------------------- Foreign Enterprise LLP Pet Co has declared insolvency. Creditors have until March 28, 2008, to submit written proofs of claims to: LLP Pet Co Jeltoksan Str. 153-2 Almaty Kazakhstan STROYSVYAZ DRUJBA: Claims Registration Ends March 28 ---------------------------------------------------- The Tax Committee of Almaty has ordered compulsory liquidation of LLP Stroysvyaz Drujba (RNN 091500004451). Creditors have until March 28, 2008, to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 =================== K Y R G Y Z S T A N =================== BUSINESS GARANT: Creditors Must File Claims by March 14 ------------------------------------------------------- LLC Financial Juridical Company Business Garant has declared insolvency. Creditors have until March 14, 2008 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 21-36-22. ULUK AND ASSOCIATES: Claims Filing Period Ends March 21 ------------------------------------------------------- LLC Uluk and Associates has declared insolvency. Creditors have until March 21, 2008 to submit written proofs of claim to: LLC Uluk and Associates Micro District 11, 12/1-40 Bishkek Kyrgyzstan Tel: (+996 312) 46-38-23 =================== L U X E M B O U R G =================== AMERICAN AXLE: Declares 1st Qtr. 2008 Div. Payable on March 28 -------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc. declared a cash dividend of US$0.15 per share payable on March 28, 2008 to stockholders of record on all of the company's issued and outstanding common stock as of March 7, 2008. Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * American Axle carries Moody's Investors Service's Corporate Family rating of Ba3. The company's notes and term loan also carries Moody's senior unsecured rating of Ba3. The outlook is stable and the Speculative Grade Liquidity rating of SGL-1 is renewed. HUNTSMAN CORP: Incurs US$172.1 Million Net Loss in 2007 ------------------------------------------------------- Huntsman Corp. has disclosed its 2007 fourth quarter and full year results. Fourth Quarter 2007 Highlights -- Revenues for the fourth quarter of 2007 were US$2,503.9 million, an increase of 17% as compared to US$2,147.8 million for the fourth quarter of 2006. -- Net income for the fourth quarter of 2007 was US$2.2 million as compared to net income of US$80.2 million for the same period in 2006. Adjusted net income from continuing operations for the fourth quarter of 2007 was US$47.7 million as compared to US$47.8 million or US$0.20 for the same period in 2006. -- Adjusted EBITDA from continuing operations for the fourth quarter of 2007 was US$192.3 million, an increase of 13 % as compared to US$170.8 million for the same period in 2006. 2007 Highlights -- Revenues for 2007 were US$9,650.8 million, an increase of 11% as compared to US$8,730.9 million for 2006. -- Net loss for 2007 was US$172.1 million as compared to net income of US$229.8 million for 2006. 2007 net loss includes US$217.1 million of loss from discontinued operations and US$209.8 million in merger related expenses while 2006 results includes US$132.9 of loss from discontinued operations. Adjusted net income from continuing operations for 2007 was US$261 million, an increase of 5% as compared to US$250 million for 2006. -- Adjusted EBITDA from continuing operations for 2007 was US$912.9 million as compared to US$923.7 million for 2006. -- Net interest expense declined by 19% to US$285.6 million in 2007 from US$350.7 million in 2006. Summarized earnings are: -- On Feb. 16, 2008, all of its outstanding mandatory convertible preferred stock converted into 12,082,475 shares of the company's common stock in accordance with the terms of the mandatory convertible preferred stock. -- On Jan. 25, 2008, the company announced that it had received notice from Hexion Specialty Chemicals, Inc. that Hexion will exercise its right under the Merger Agreement and Plan of Merger dated July 12, 2007 to extend the Termination Date by 90 days from April 5th to July 4th, 2008. Huntsman also announced on Oct. 4, 2007, that the company and Hexion had each received a request for additional information (commonly known as a "second request") from the Federal Trade Commission) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Huntsman and Hexion have agreed with the Federal Trade Commission to allow the commission additional time to review the merger, such that the merger is not expected to be completed before May 3, 2008. -- On Nov. 5, 2007, the company completed the sale of its U.S. base chemicals business to Flint Hills Resources. In connection with the sale it received approximately US$415 million in proceeds. The company previously completed the sale of its U.S. Polymers business in the third quarter of 2007 for approximately US$354 million in proceeds. Financial results of these businesses are classified as discontinued operations for all periods presented. President and Chief Executive Officer, Peter R. Huntsman stated: "I am very pleased with our fourth quarter results, as Adjusted EBITDA from continuing operations was up 13% as compared to the same period in 2006. With the exception of Pigments, where the continued weakness of the U.S. dollar and the recent softness in U.S. residential construction activity has constrained profitability, each of our segments posted very strong year- over-year increases in Adjusted EBITDA. Most notable however, was our Polyurethanes segment, where MDI sales volumes were up 5% as compared to the fourth quarter of last year resulting in a 32% increase in Adjusted EBITDA relative to the comparable period in 2006." Mr. Huntsman continued, "We continue to work closely with Hexion and the regulatory authorities in the U.S., Europe and elsewhere to secure the approvals necessary to complete the merger. Both parties have made receipt of these approvals a top priority and we would anticipate completing the merger shortly after they are received. While Huntsman and Hexion continue to operate as separate companies, our management teams continue working on an integration plan that will allow the combined organization to capitalize on opportunities to reduce costs and improve efficiencies, while also continuing to grow our businesses." Three Months Ended Dec. 31, 2007 as Compared to Three Months Ended Dec. 31, 2006 Revenues for the three months ended Dec. 31, 2007 increased to US$2,503.9 million from US$2,147.8 million during the same period in 2006. Revenues increased in the Polyurethanes, Performance Products and Pigments segments due to higher average selling prices and higher sales volumes. Revenues increased in the Materials and Effects segment due to higher average selling prices, partially offset by lower volumes. For the three months ended Dec. 31, 2007, EBITDA was US$102.3 million as compared to US$237.1 million in the same period in 2006. Adjusted EBITDA from continuing operations for the three months ended Dec. 31, 2007 was US$192.3 million, as compared to US$170.8 million for the same period in 2006. Polyurethanes: The increase in revenues in the Polyurethanes segment for the three months ended Dec. 31, 2007 compared to the same period in 2006 was due to higher average selling prices and higher sales volumes. MDI sales volumes increased 5% primarily as the result of strong demand in insulation-related applications and the adhesives and coatings markets, in particular Asia and Europe, partially offset by lower volumes in certain residential construction related end markets in North America. PO and co- product MTBE volumes increased due to improved productivity and demand while average selling prices were higher primarily due to higher raw materials costs. MDI average selling prices increased 8% primarily due to the strength of major European currencies versus the U.S. dollar, improved demand and higher raw material costs. The increase in EBITDA in the Polyurethanes segment was primarily the result of higher MDI volumes and increased margins as higher average selling prices more than offset higher raw material costs. In addition, the MDI joint venture facility in China was operational throughout the fourth quarter of 2007. In PO and co-product MTBE, higher average selling prices and sales volumes more than offset higher raw material costs. Materials and Effects: The increase in revenues in the Materials and Effects segment for the three months ended Dec. 31, 2007 compared to the same period in 2006 was due to higher average selling prices partially offset by lower sales volumes. Average selling prices increased by 12% as average selling prices were up 11% in textile effects and up 13% in advanced materials due to the strength of major European currencies versus the U.S. dollar and price increase initiatives in certain markets and regions. Total sales volumes decreased by 4% as advanced materials sales volumes decreased by 3% and textile effects sales volumes decreased by 6%. The advanced materials business contributed US$368.3 million in revenue for the three months ended Dec. 31, 2007, while the textile effects business contributed US$245 million in revenues for the same period. The increase in EBITDA in the Materials and Effects segment was primarily due to higher revenues discussed above partially offset by higher raw materials and increased manufacturing and selling, general and administrative costs. The advanced materials business contributed US$35.5 million of EBITDA for the three months ended Dec. 31, 2007, while the textile effects business contributed US$5.1 million for the same period. During the three months ended Dec. 31, 2007 the Materials and Effects segment recorded restructuring, impairment and plant closing costs of US$6.3 million in textile effects as compared to US$0.4 million for the same period in 2006. Performance Products: The increase in revenues in the Performance Products segment for the three months ended Dec. 31, 2007, compared to the same period in 2006 was the result of a 14% increase in sales volumes and 12% increase in average selling prices. The increase in sales volumes was primarily attributable to higher demand in performance specialties and improved demand and increased production at the company's Port Neches facility in its performance intermediates product group. In maleic anhydride and licensing, volumes benefited from improved demand relative to the 2006 period in certain UPR end markets. Average selling prices increased primarily due to the strength of major European and Australian currencies against the U.S. dollar and in response to higher raw material costs. The increase in EBITDA in the Performance Products segment was primarily due to the higher revenues discussed above, partially offset by higher raw materials and increased manufacturing and selling, general and administrative costs. In addition, the 2006 period included income related to insurance proceeds received for damages resulting from the 2005 U.S. Gulf Coast storms. Pigments: The increase in revenues in the Pigments segment for the three months ended Dec. 31, 2007 compared to the same period in 2006 was primarily due to an 11% increase in sales volumes. Average selling prices were unchanged as lower local currency selling prices were offset by the strength of the major European currencies versus the U.S. dollar. Sales volumes increased primarily due to increased customer demand in all regions. Average selling prices decreased in North American due to soft market conditions primarily in the coatings and construction related endmarkets, and in Europe, due to increased competition from imports. The decrease in EBITDA in the Pigments segment was primarily due to lower local currency selling prices in North America and Europe discussed above, together with higher raw materials, manufacturing and selling, general and administrative costs primarily due to the strength of the major European currencies versus the U.S. dollar. Discontinued Operations On Nov. 5, 2007 Huntsman completed the sale of the assets that comprise its U.S. base chemicals to Flint Hills Resources. On Aug. 1, 2007, the company completed the sale of the majority of the assets that comprise its Polymers segment to Flint Hills Resources. On Dec. 29, 2006, it completed the sale of its European petrochemicals business to SABIC. Results from these businesses have been classified as a discontinued operation. During the fourth quarter of 2007, the company recognized US$143.4 million of pretax loss on the sale of its U.S. base chemicals business, US$4 million of pretax loss on the sale of the U.S. polymers business and US$5.4 million of pretax gain on the sale of the European petrochemicals business. During the fourth quarter of 2006 it recognized US$21.6 million of pretax loss on the sale of the European petrochemicals business. Corporate and Other Corporate and other items include the results of Huntsman's Australia styrenics business, gain from the sale of its U.S. butadiene and MTBE business, unallocated corporate overhead, loss on the sale of accounts receivable, unallocated foreign exchange gains and losses, losses on the early extinguishment of debt, merger associated expenses, minority interest, unallocated restructuring costs, gain and loss on the disposition of assets, the extraordinary gain on the acquisition of a business and other non-operating income and expense. In the fourth quarter of 2007, the total of these items was income of US$17.4 million as compared to a loss of US$66.2 million in the 2006 period. The increase in EBITDA from these items was primarily the result of a US$69 million pretax gain recognized in the 2007 period related to the final payment received on the sale of the company's U.S. butadiene and MTBE business to Texas Petrochemical Corporation. Income Taxes In the fourth quarter of 2007, the company recorded US$3.4 million of income tax benefit as compared to US$65 million of income tax benefit in the comparable period of 2006. During the fourth quarter of 2007, it recorded income tax benefits from a number of non-recurring items as well as income tax benefits from changes in the tax jurisdiction location of the income and losses realized during the period. During the fourth quarter 2006, it recorded tax benefits of approximately US$44.2 million resulting from the release of tax contingencies in the U.S. and the U.K., US$7.9 million resulting from a change in the statutory tax rate in The Netherlands, and increased benefits from valuation allowance releases, including releases resulting from changes in the geographic location of the income earned during the period. Liquidity, Capital Resources and Outstanding Debt As of Dec. 31, 2007, Huntsman had approximately US$774 million in cash and unused borrowing capacity. Proceeds received from the sale of its U.S. base chemicals business and the receipt of additional proceeds related to the sale of the U.S. butadiene and MTBE business together with cash flow from operations were used to repay borrowings under the revolving loan, reduce borrowings under the accounts receivable securitization program, support an increase in working capital and to fund capital expenditures, including amounts related to the completion of the Port Arthur, Texas facility rebuild. For the three months ended Dec. 31, 2007, total capital expenditures were approximately US$198 million as compared to US$223 million for the same period in 2006. For the year ended Dec. 31, 2007, total capital expenditures were approximately US$665 million as compared to US$550 million for the same period in 2006. During 2007, the company spent approximately US$157 million in capital expenditures associated with the rebuild of the Port Arthur, Texas facility which was damaged by fire on April 29, 2006. Huntsman expect to spend approximately US$480 million on capital expenditures in 2008. As a result of the fire damage at its Port Arthur, Texas facility that occurred on April 29, 2006, the company have received, and anticipate receiving additional, settlements of insurance claims. Huntsman incurred significant expenditures to rebuild the facility. It substantially completed the rebuild and commissioning of the facility in the fourth quarter of 2007. As of Dec. 31, 2007, the company estimate that its remaining payment related to certain expenditures for the rebuild the former Port Arthur, Texas facility which have been substantially completed but not yet invoiced was approximately US$40 million, for which it have accrued a liability. The company expects to settle this obligation during the first half of 2008. To date, it has submitted proofs of loss totaling US$541 million, and the company anticipates submitting additional proofs of loss. As of Dec. 31, 2007, it received insurance recovery advances totaling US$305 million and entered into an agreement providing for an additional recovery advance of US$20 million, all of which was received by mid-February, 2008. Huntsman anticipates that the settlement of insurance claims will continue throughout 2008. Huntsman Corp. -- http://www.huntsman.com/-- manufactures and markets differentiated and commodity chemicals. Its operating companies manufacture products for a variety of global industries including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later for rapid and integrated growth in petrochemicals, Huntsman today has operations in 24 countries, including Argentina, Belarus, Japan, Luxembourg, Malaysia, Spain and the United Kingdom, among others. The company had 2006 revenues from all operations of over US$13 billion. * * * In June 2007, Moody's Investors Service placed the debt ratings and the corporate family ratings (CFR -- Ba3) for Huntsman Corporation and Huntsman International LLC, a subsidiary of Huntsman under review for possible downgrade. ===================== N E T H E R L A N D S ===================== CLASSIC I: Moody's Cuts Rating on S. 2006-1 Class A2 Notes ---------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade four classes of notes issued by Classic I (Netherlands) B.V. and Palmer Square 2 plc. These rating actions are a response to credit deterioration in the underlying portfolios. The transactions are cash CDOs referencing, among other assets, US ABS CDOs of the 2005 and 2006 vintages. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Classic I (Netherlands) B.V. - Series 2006-1: (1) Series 2006- USD 49,281,000 Class A2 Secured Notes due October 2053 Current Rating: B3, on review for downgrade Prior Rating: Baa2, on review for downgrade Palmer Square 2 plc: (1) Class B-1 USD 19,875,000 Deferrable Floating Rate Notes due 2045 Current Rating: Aa3, on review for downgrade Prior Rating: Aa1, on review for downgrade (2) Class C USD 17,500,000 Deferrable Floating Rate Notes due 2045 Current Rating: Baa1, on review for downgrade Prior Rating: Aa3, on review for downgrade (3) Class D USD 12,500,000 Deferrable Floating Rate Notes due 2045 Current Rating: Ba2, on review for downgrade Prior Rating: A3, on review for downgrade FOOT LOCKER: Allowable Dividend Payments Increased to US$95 Mln --------------------------------------------------------------- On Feb. 19, 2008, Foot Locker Inc. entered into an amendment of its Fifth Amended and Restated Credit Agreement dated as of April 9, 1997, and amended and restated as of May 19, 2004, to increase the amount permitted to be paid by the company as dividends during the 2008 fiscal year ending Jan. 31, 2009, from US$90.0 million to US$95.0 million. A full-text copy of the Amendment is available for free at: http://researcharchives.com/t/s?2869 About Foot Locker Headquartered in New York, Foot Locker, Inc. (NYSE: FL) --- http://www.footlocker-inc.com/-- is a specialty athletic retailer that operates approximately 3,800 stores in 21 countries in North America, Europe and Australia. * * * As reported in the Troubled Company Reporter-Europe on Oct. 11, 2007, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured ratings on New York City-based Foot Locker Inc. to 'BB' from 'BB+'. S&P have removed the ratings from CreditWatch, where they were placed with negative implications on Aug. 18, 2006. The outlook is negative. MOBILE MINI: To Merge with Mobile Storage in US$701.5 Mln Deal -------------------------------------------------------------- Mobile Mini, Inc. and Mobile Storage Group, Inc. of Glendale, California have entered into a definitive merger agreement, under which Mobile Storage will merge into Mobile Mini in a transaction valued at approximately US$701.5 million. The transaction will establish the combined company as a global provider of portable storage solutions in the United States and the United Kingdom. Upon consummation of the merger, Mobile Mini will significantly expand its geographic footprint and will be positioned to cover most major markets for portable storage in both the US and the UK. "This represents a highly strategic transaction for Mobile Mini," stated Mobile Mini's Chairman, President and Chief Executive Officer, Steven Bunger, "which substantially increases Mobile Mini's ability to service an expanded customer base, provides the employees of both companies with enhanced career opportunities, and offers our stockholders an opportunity to benefit from a transaction that we believe will be solidly accretive to our earnings in the first full year of the combination." The merged company will include senior executives from both companies. Steve Bunger will serve as Chairman, President and Chief Executive Officer and Larry Trachtenberg will continue as Chief Financial Officer. Doug Waugaman, CEO of Mobile Storage Group, will join Mobile Mini as COO of Integration, reporting directly to Mr. Bunger. Jody Miller, Bill Armstead and Ron Halchishak, senior executives at Mobile Storage Group, will also assume senior roles with the combined organization. "A key goal of this merger is to retain the top sales professionals, branch managers and operating field personnel of the combined organizations, both in the US and the UK, to position Mobile Mini with the most knowledgeable, experienced and motivated employee base in the portable storage industry," Mr. Bunger stated. "This merger is predicated on bringing together the best in class employees of our two organizations and I am excited by the expanded opportunities to be offered to much of our talented employee base," Mr. Waugaman added. Mobile Storage Group is majority owned by the private equity firm Welsh, Carson, Anderson & Stowe, who, together with the other equity holders, through this transaction, will be converting substantially all of their equity ownership of Mobile Storage group into Mobile Mini preferred stock. Following consummation of the merger, two WCAS representatives will be elected to Mobile Mini' Board of Directors. WCAS is one of the largest private equity investors in the US focused on the information & business services and healthcare industries. Since its founding in 1979, WCAS has organized 14 investment partnerships with total capital in excess of US$16 billion. Pursuant to the merger, Mobile Mini will assume approximately US$535.0 million of Mobile Storage Group's outstanding indebtedness and will acquire all outstanding shares of Mobile Storage Group for US$12.5 million in cash and shares of newly issued Mobile Mini convertible preferred stock with a liquidation preference of US$154.0 million. The convertible preferred stock will be convertible into approximately 8.55 million Mobile Mini common shares, representing a conversion price of US$18.00 per Mobile Mini share and resulting in fully diluted ownership in Mobile Mini of approximately 19.8% for Mobile Storage Group stockholders. The preferred stock will be mandatorily convertible into Mobile Mini common stock if, after the first year following the issuance of the preferred stock, Mobile Mini's common stock trades above US$23.00 share for a period of 30 consecutive days. The preferred stock will not have any cash or payment-in-kind dividends, will impose no covenants upon Mobile Mini, and will include an optional redemption feature following the tenth year after the issue date. The merger is expected to generate cost synergies of at least US$25 million on an annualized basis, which are expected to be fully realized by the end of fiscal 2009. The cost synergies are a result of the significant overlap in corporate functions and branch infrastructure. Mobile Mini believes that the combination with Mobile Storage will add 21 new locations in the US and 14 locations in the UK. This combination of new branches as well as proximate locations offers opportunities for both additional growth and substantial cost synergies via branch consolidation. The transaction is expected to be slightly accretive to earnings in 2008 (excluding merger-related expenses), and should generate substantial EPS accretion of 25% or more, over current analyst EPS estimates, in 2009, including the benefit of expected synergies. "As the integration of our companies is executed, we expect to achieve meaningful cost synergies by combining certain overlapping branch locations, consolidating corporate functions and headquarters and reducing certain combined operating expenses, which we estimate will ultimately generate a minimum of US$25 million of savings on an annualized basis," Mr. Bunger stated. "These cost synergies, in combination with an improved revenue growth potential through implementing Mobile Mini's growth model into newly acquired Mobile Storage Group branches, should add to Mobile Mini's future earnings growth." The transaction has been structured to maintain a strong balance sheet with sufficient liquidity after the combination. Pro forma for the acquisition, Mobile Mini estimates that total debt will approximate US$960 million. In 2007, Mobile Mini generated EBITDA of US$133.9 million (excluding stock compensation expense) and Mobile Storage Group generated EBITDA of US$86.1 million (adjusted for certain items and excluding stock compensation expense). With the US$25 million of forecast cost synergies, the adjusted EBITDA for 2007 is approximately US$245.0 million, resulting in pro forma leverage of approximately 3.9x. Going forward, management expects to fund both fleet expansion and debt reduction with cash flow from operations. In addition, Mobile Mini believes it will have excess availability of over US$300 million under its expected US$1.0 billion asset-based revolving credit facility at closing of the transaction. Closing of the transaction is subject to approval by Mobile Mini stockholders, obtaining required governmental approvals, receipt of a new US$1.0 billion asset-based revolving credit facility and customary closing conditions. Mobile Mini has received a fully underwritten commitment from Deutsche Bank AG, Bank of America and JP Morgan for a US$1.0 billion asset-based revolving credit facility to fund the transaction. A special meeting of Mobile Mini stockholders will be scheduled for the purpose of submitting the issuance of the preferred stock and related matters to Mobile Mini's stockholders for approval. No date for the stockholders meeting has been set. Depending on the timing of various disclosure requirements, the stockholder meeting, and regulatory approvals, the transaction is expected to close as early as June 2008. Oppenheimer & Co. Inc. and Deutsche Bank Securities Inc. acted as financial advisors to Mobile Mini, and White & Case LLP acted as legal counsel. Lehman Brothers Inc. acted as financial advisor to Mobile Storage Group and Kirkland & Ellis LLP acted as legal counsel. The company plans to update its 2008 guidance to factor in the Mobile Storage Group merger and related integration, consolidation and other costs around the time of closing. About Mobile Storage Headquartered in Burbank, California, Mobile Storage Group Inc. aka Mobile Services Group Inc. -- http://www.mbilestorage.com/ --provides portable storage in the United States and the United Kingdom. About Mobile Mini Headquartered in Tempe, Arizona, Mobile Mini Inc. (Nasdaq GS: MINI) -- http://www.mobilemini.com/-- provides portable storage solutions through its total fleet of over 165,000 portable storage units and portable offices with 66 branches in U.S., United Kingdom, Canada and The Netherlands. MOBILE MINI: Earns US$12.4 Million in Quarter Ended December 31 --------------------------------------------------------------- Mobile Mini Inc. reported financial results for the fourth quarter ended Dec. 31, 2007, as compared to results for the fourth quarter ended Dec. 31, 2006. The company's net income of US$12.4 million declined from last years US$14.0 million. Total revenues increased 9.0% to a quarterly record of US$83.6 million, up from US$76.7 million a year ago. Lease revenues increased 8.2% to US$74.2 million from US$68.6 million. Lease revenues comprised 88.9% of total revenues as compared to 89.5%. As of Dec. 31, 2007, the company's balance sheet showed total assets of US$1.0 billion and total liabilities of US$570.9 million, resulting in a US$457.8 million stockholders' equity. Equity, at Dec. 31, 2006, was US$442.0 million. 2007 Highlights * entered four new markets last year: Pittsburgh, Pennsylvania; Worcester, Vermont; and Windsor, Ontario and Vancouver, British Columbia; * redeemed US$97.5 million aggregate outstanding principal balance of our 9.5% Senior Notes due 2013 with the issuance of US$150 million 6.875% Senior Notes due 2015; and * repurchased 2,174,828 shares of common stock through Dec. 31, 2007 and there were no repurchases thereafter; the stock repurchase program has expired. Business Overview Mr. Bunger pointed out, "On a Company-wide basis, 2007 lease revenues continued to grow, 8.2% for the fourth quarter and 16.1% for the year as a whole. While Europe and certain regions in the U.S. are doing robust business, economic conditions in California, Arizona and Florida slowed the pace of our growth, and lease revenues came in slightly below expectations. 2007 EBITDA and diluted earnings per share were within the guidance ranges we previously provided, which is all the more satisfying considering the fleet optimization program and related costs underway. Mobile Mini#s after tax return on invested capital for the years ended December 31, 2007 and 2006 were 13.3% and 14.8%, respectively." Mr. Bunger continued, "One of the big advantages of the merger with Mobile Storage Group Inc. will be our ability to more easily move available units within our fleet to where they are needed and therefore we look forward to a significant reduction in capital expenditures. Going forward, the combined companies should be free cash flow positive. We are also delighted that in addition to Doug Waugaman, several key Mobile Storage Group executives are set to sign employment agreements with our combined company upon closing." He continued, "Moving forward, some of the metrics, such as internal growth rate, that we previously used in our quarterly reporting will become less relevant due to the scale, size and depth of our operations and industry position following the merger. While we expect first quarter 2008 EBITDA to be slightly below last year, we are confident that we will be able to achieve our prior 2008 diluted EPS guidance of between US$1.50 and US$1.60, excluding the impact of the Mobile Storage Group transaction. Lawrence Trachtenberg, Mobile Mini's Executive Vice President & CFO noted, "The above 2008 guidance does not factor in the combination with Mobile Storage Group, although we expect the merger to be slightly accretive in 2008 before merger related expenses. We need to point out that there will be a one-time charge, which we are currently estimating at between US$19 million and US$20 million, pre-tax, relating to the business combination, the consolidation of branches and the integration of the two companies, which we will record when the transaction closes. The integration and consolidation benefits, including US$25 million or more in cost savings, should be fully apparent in 2009. Additionally, the US$1 billion revolving credit facility that we have secured provides us with ample borrowing capacity, even after the repayment of Mobile Storage Group#s outstanding indebtedness and the cash portion of the purchase price." About Mobile Mini Headquartered in Tempe, Arizona, Mobile Mini Inc. (Nasdaq GS: MINI) -- http://www.mobilemini.com/-- provides portable storage solutions through its total fleet of over 165,000 portable storage units and portable offices with 66 branches in U.S., United Kingdom, Canada and The Netherlands. MOBILE MINI: Mobile Storage Deal Cues Moody's Ratings Review ------------------------------------------------------------ Moody's Investors Service placed all ratings of Mobile Mini, Inc. (Corporate Family at Ba3) on review for possible downgrade. In addition, Moody's placed all ratings of Mobile Services Group (Corporate Family at B2) on review for possible upgrade. The review was prompted by Mobile Mini's announcement that it has an agreement to merge with Mobile Services Group (also known as Mobile Storage Group) for approximately US$701.5 million. As a part of the transaction, Mobile Mini will assume approximately US$535 million of Mobile Services Group debt. The merged Mobile Mini and Mobile Services Group entity will combine the two largest modular storage companies in the United States. While there is significant overlap of facilities (from a city coverage perspective), the Mobile Services franchise will provide Mobile Mini an entry into new markets and increase its national scale. Where there is overlap, it is expected the company will close redundant operational facilities and realize significant synergies, which will help offset the substantial purchase price. The review for possible downgrade on Mobile Mini is based on the expectation that post-acquisition leverage will increase from current levels and that interest coverage will weaken. Mobile Mini has consistently operated with a conservative leverage profile and it is expected that the company will utilize excess cash flow for debt reduction. During its review, Moody's will analyze interest coverage and leverage at the outset of the merger and evaluate forecasts for potential improvements, in the context of targeted operating synergies. Moody's will also examine potential execution- related risks and expenses that could arise as a result of the transaction. The review for possible upgrade on Mobile Services Group reflects Moody's expectation that the rating profile of the merged companies will be no lower than the B2 rating currently assigned to Mobile Services Group. These ratings were placed on Review for Possible Downgrade: Mobile Mini, Inc.: -- Corporate Family RatingBa3 -- Senior NotesB1 These ratings were placed on Review for Possible Upgrade: Mobile Services Group, Inc -- Corporate Family RatingB2 Co-Issuers: Mobile Services Group, Inc and Mobile Storage Group, Inc -- Senior Unsecured NotesB3 Mobile Mini, Inc., headquartered in Tempe, Arizona, reported approximately US$1 billion in total assets as of Sept. 30, 2007. Mobile Services Group, Inc., headquartered in Burbank, CA, reported approximately US$843 million in total assets as of Sept. 30, 2007. MOBILE MINI: Mobile Storage Deal Cues S&P's Negative Watch ---------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Mobile Mini Inc., including the 'BB' long-term corporate credit rating, on CreditWatch with negative implications. "The rating action is based on Mobile Mini's announcement that it has entered into a definitive agreement under which Mobile Storage Group Inc., its major competitor in the leasing of portable storage units, will be merged into Mobile Mini," said Standard & Poor's credit analyst Betsy Snyder. "We expect the transaction, which will include Mobile Mini's assumption of approximately US$535 million of Mobile Storage's debt, to weaken Mobile Mini's already aggressive financial profile." If the transaction is successfully consummated, the combined entity would become the leading provider of portable storage units in the U.S. and U.K. Combining the two entities would also result in approximately US$25 million of annual cost synergies, expected to be fully realized by the end of 2009. Closing of the transaction is subject to approval by Mobile Mini stockholders, obtaining government approval, receipt of a new US$1 billion asset-based credit facility to fund the transaction, and customary closing conditions. Assuming all are met, the transaction is expected to close as early as June 2008. Standard & Poor's will assess Mobile Mini's business and financial profiles, pro forma for the acquisition of Mobile Storage, to resolve the CreditWatch. =========== P O L A N D =========== BUCYRUS INTERNATIONAL: Amends RAG Coal Share Purchase Deal ---------------------------------------------------------- On Feb. 18, 2008, Bucyrus International Inc. and its special- purpose acquisition subsidiary, DBT Holdings GmbH, entered into a Third Addendum to the Dec. 16, 2006 Share Purchase Agreement with RAG Coal International GmbH, pursuant to which the company purchased the shares of DBT GmbH on May 4, 2007. In accordance with this amendment, the parties agreed to a cash settlement of certain of the company's indemnification claims against the RAG Coal under the Agreement, in exchange for the company agreeing to an accelerated release of the lock-up and transfer restrictions on the 471,476 shares of the company's class A common stock issued to the RAG Coal pursuant to the Agreement. Under the original Agreement, with certain limited exceptions, RAG Coal could not, without the company's prior written consent, directly or indirectly sell or otherwise transfer (i) any of its company shares prior to May 4, 2008; (ii) more than 30% of its company shares prior to May 4, 2009; and (iii) more than 60% of its company shares prior to May 4, 2010. Under the terms of the Amendment, RAG Coal may now sell or transfer (subject to certain requirements to help ensure an orderly market distribution) up to 50% of its company shares beginning on Feb. 15, 2008, with the next 25% of its company shares eligible for sale on or after May 4, 2009, and the final 25% eligible for sale on or after May 4, 2010. About Bucyrus International Headquartered in South Milwaukee, Wisconsin, Bucyrus International Inc. (Nasdaq: BUCY) -- http://www.bucyrus.com/-- is a global manufacturer of electric mining shovels, walking draglines and rotary blasthole drills and provides aftermarket replacement parts and services for these machines. In 2006, it had sales of US$738 million. The company has operations in Brazil, Chile, China, Poland, and the United Kingdom. * * * Moody's Investor Service placed the company's long-term corporate family rating at 'Ba3' in April 2007. The rating still holds to date with a stable outlook. =========== R U S S I A =========== AMBASSADOR LLC: Creditors Must File Claims by March 12 ------------------------------------------------------ Creditors of LLC Ambassador(TIN 4900001100) have until March 12, 2008, to submit proofs of claim to: E. Baturin Insolvency Manager Post User Box 212 Central Post Office 685000 Magadan Russia The Arbitration Court of Magadan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A37-1206/2007-12b. The Court is located at: The Arbitration Court of Magadan Karl Marks prospect 62 685000 Magadan Russia The Debtor can be reached at: LLC Ambassador Room 408 Proletarskaya Str. 8 685000 Magadan Russia AVTO-TRANS CJSC: Creditors Must File Claims by March 12 ------------------------------------------------------- Creditors of CJSC Avto-Trans have until March 12, 2008, to submit proofs of claim to: V. Mikhaylenko Insolvency Manager Office 2 Moskovskaya Str. 85 410012 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-57-27?/03-32. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: V. Mikhaylenko Insolvency Manager Office 2 Moskovskaya Str. 85 410012 Saratov Russia BELOVSKIY COAL: Court Names A. Taranenko as Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Kemerovo appointed A. Taranenko as Insolvency Manager for LLC Trading House Belovskiy Coal. He can be reached at: A. Taranenko Sovetskaya Str. 48-9 Belovo 652600 Kemerovo Russia The Court will convene at noon on June 25, 2008, to hear the bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A27-5676/2007-4. The Court is located at: The Arbitration Court of Kemerovo Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: LLC Trading House Belovskiy Coal Yuznosti Str. 16-213 Belovo 652600 Kemerovo Russia B.I.N.BANK: S&P Says Ratings Unaffected By Likely Owner Change -------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B-/C' ratings and stable outlook on Russian B.I.N.BANK were unaffected by the likely change of shareholder. Vadim Moshkovich, the head of unrated RUSAGRO, should acquire a 99% stake in the bank from the previous owner. S&P expects the deal to close in April 2008. Until said closure, B.I.N.BANK's shareholder structure remains unchanged. The current ratings on B.I.N.BANK reflect its stand- alone position without additional uplift for expected shareholder support. S&P will closely review the new owner's strategic aims for the bank's development, as well as his commitment and capacity to provide financial support to the bank in case of a need. DORONINO LLC: Court Starts Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Omsk commenced bankruptcy supervision procedure on LLC Doronino. The case is docketed under Case No. A46-13824/2007. The Temporary Insolvency Manager is: S. Anisimov Pobedy Pr. 87 693008 Yuzhno-Sakhalinsk Russia The Debtor can be reached at: S. Anisimov Fedorova Str. 1a 454048 Chelyabinsk Russia EAST CJSC: Kemerovo Bankruptcy Hearing Slated for June 9 -------------------------------------------------------- The Arbitration Court of Kemerovo will convene at 11:30 a.m. on June 9, 2008, to hear the bankruptcy supervision procedure on CJSC East. The case is docketed under Case No. A27-11550/ 2007-4. The Temporary Insolvency Manager is: A. Samokhin Pionerskiy Pr. 40 Novokuznetsk 654007 Kemerovo Russia The Court is located at: The Arbitration Court of Kemerovo Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: CJSC East Pionerskiy Pr. 40 Novokuznetsk 654007 Kemerovo Russia EASTERN OIL-LOADING: Names E. Ugolnikov as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Primorye appointed E. Ugolnikov as Insolvency Manager for CJSC Eastern Oil-Loading Terminal. He can be reached at: E. Ugolnikov Post User Box 8/35 Central Post Office 680000 Khabarovsk Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A51-4827/2006-15-96. The Court is located at: Arbitration Court of Primorye Room 313 Svetlanovskaya Str. 54 Vladivostok Russia The Debtor can be reached at: CJSC Eastern Oil-Loading Terminal Makarova Str. 19 692929 Nakhodka Russia ENTAZIS CJSC: Creditors Must File Claims by March 12 ---------------------------------------------------- Creditors of CJSC Entazis have until March 12, 2008, to submit proofs of claim to: Y. Korepanov Insolvency Manager Savinykh Str. 3 634028 Tomsk Russia The Arbitration Court of Novosibirsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-15647/06-10/328. The Court is located at: The Arbitration Court of Novosibirsk Kirova Str. 3 630007 Novosibirsk Russia The Debtor can be reached at: CJSC Entazis Molodosti Str. 24-91 630056 Novosibirsk Russia INTER-PROM-GARANT: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Arbitration Court of Kurgan commenced bankruptcy supervision procedure on LLC Inter-Prom-Garant. The case is docketed under Case No. A-70-7133/3-2007. The Temporary Insolvency Manager is: A. Klykov K. Myagotina Str. 179-29 640000 Kurgan Russia Tel/Fax: 8 (3522) 41-38-46 The Court is located at: The Arbitration Court of Kurgan Sovetskaya Str. 192 640003 Kurgan Russia The Debtor can be reached at: A. Klykov K. Myagotina Str. 179-29 640000 Kurgan Russia Tel/Fax: 8 (3522) 41-38-46 IZMAYLOVSKIY PARK: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------------- The Arbitration Court of Sverdlovsk commenced bankruptcy supervision procedure on CJSC Izmaylovskiy Park. The case is docketed under Case No. A60-35377/2005-S11. The Temporary Insolvency Manager is: P. Veshev Post User Box 343 Onezhskaya Str. 12 620089 Ekaterinburg Russia The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia The Debtor can be reached at: CJSC Izmaylovskiy Park Kraulya Str. 168 620131 Ekaterinburg Russia KIZNERSKOE REPAIR: Creditors Must File Claims by March 12 --------------------------------------------------------- Creditors of OJSC Kiznerskoe Repair Technical Enterprise have until March 12, 2008, to submit proofs of claim to: V. Derendyaev Insolvency Manager Yubileynaya Str. 15 Norya Malopurginskiy 427811 Udmurtiya Russia The Arbitration Court of Udmurtiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A71-8667/2007-G9. The Court is located at: The Arbitration Court of Udmurtiya Lomonosova Str. 5 Izhevsk 426004 Udmurtiya Russia The Debtor can be reached at: OJSC Kiznerskoe Repair Technical Enterprise Krylova Str. 10 Kizner Kiznerskiy 427710 Udmurtiya Russia MOTOR ENTERPRISE 1: Bankruptcy Hearing Slated for April 10 ---------------------------------------------------------- The Arbitration Court of Volgograd will convene on April 10, 2008, to hear the bankruptcy supervision procedure on CJSC Motor Enterprise 1. The case is docketed under Case No. A12-15733/ 07-s55. The Temporary Insolvency Manager is: T. Kleshnina Post User Box 244 400005 Volgograd Russia The Debtor can be reached at: CJSC Motor Enterprise 1 Aviatorov Shosse 6 Volgograd Russia NEFAZ-CENTRE LLC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Bashkortostan commenced bankruptcy supervision procedure on LLC Nefaz-Centre. The case is docketed under Case No. A07-12115/07-G-NLV. The Temporary Insolvency Manager is: M. Sakaev Post User Box 16 Ufa-38 Bashkortostan Russia The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Nefaz-Centre Zlobina Str. 31 Ufa Bashkortostan Russia PROGRESS OJSC: Asset Sale Slated for March 11 --------------------------------------------- S. Vasilyev, the Insolvency Manager and Bidding Organizer for OJSC Biyrkiy Electromechanical Factory Progress, will open a public auction for the company's properties at 2:00 p.m. on March 11, 2008, at: OJSC Biyrkiy Electromechanical Factory Progress 2nd Floor Krasnoarmeyskaya Str. 5a Birsk Bashkortostan Russia The company has set a RUR2,035,000 million starting price for the assets on auction. Interested participants have until March 5, 2008, to deposit an amount equivalent to 10% of the starting price to: OJSC Biyrkiy Electromechanical Factory Progress Settlement Account 40702810501030000154 Correspondent Account 30101810900000000739 BIK 048073739 OGRN 1030201246910 TIN/KPP 0257006090/025701001 OJSC Sots-invest-bank Birsk Russia Bidding documents must be submitted to: S. Vasilyev Mustaya Karima Str. 41 Ufa Bashkortostan Russia Tel: 8-927-937-83-97 The Debtor can be reached at: OJSC Biyrkiy Electromechanical Factory Progress 2nd Floor Krasnoarmeyskaya Str. 5a Birsk Bashkortostan Russia SEPTEMBER CJSC: Court Names A. Gudkov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Saratov appointed A. Gudkov as Insolvency Manager for CJSC September. He can be reached at: A. Gudkov Post User Box 2493 410076 Saratov Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-18B/99-23-31. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: CJSC September Room 12 Stepnaya Str. 31V Balakovo Saratov Russia TRANSPORT COMPANY: Creditors Must File Claims by March 12 --------------------------------------------------------- Creditors of LLC Transport Company have until March 12, 2008, to submit proofs of claim to: S. Vasilyev Insolvency Manager Post User Box 1431 Zlatoust 456217 Chelyabinsk Russia The Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-8805/2007-52-51. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: LLC Transport Company Miass Russia ========= S P A I N ========= TDA 25: Fitch Holds BB- Rating on Class D with Negative Outlook --------------------------------------------------------------- Fitch Ratings has affirmed all classes of TDA 25, Fondo de Titulizacion despite a further draw on the reserve fund. The portfolio is backed by mortgage loans originated by Union de Credito Financiero Mobiliario e Inmobiliario and Banco Gallego in Spain. The rating actions are: -- Class A (ISIN ES0377929007) affirmed at 'AAA'; Outlook Stable -- Class NAS-IO (ISIN ESO377929049) affirmed at 'AAA'; Outlook Stable -- Class B (ISIN ES0377929015) affirmed at 'A'; Outlook Stable -- Class C (ISIN ES0377929023) affirmed at 'BBB-'(BBB minus); Outlook Negative -- Class D (ISIN ES0377929031) affirmed at 'BB-' (BB minus); Outlook Negative The affirmations follow a full loan-by-loan analysis of the current pool and take into account future draws on the RF. The latest RF draws were anticipated by Fitch at the time of the downgrade of the transaction on 29 October 2007. Since the downgrade, there has been a third draw on the RF and a further increase of three- month plus arrears and loans in default (defined as loans in arrears by more than 12 months). The latest draw reduced the RF to 0.44% of the original note balance, compared to a target 0.98%. The RF draws occurred due to available excess spread being reduced by a combination of the senior-ranking interest only (IO) notes attached to the class A notes and the high level of defaults to date. Nevertheless, recoveries from three defaulted loans have reduced the current net defaults in the last two monthly reports to 0.61% in December 2007 from a peak of 0.73% in October 2007. If recoveries increase they will moderate future draws of the RF. The Negative Outlook reflects that further RF draws are in prospect, given the current level of seven-month plus arrears and the presence of the IO, potentially fully depleting the RF over the next year. Principal payments would then be deferred but would not necessarily threaten the ratings as the deal is rated to reflect the ultimate payment of principal and timely payment of interest. On the other hand, a fully depleted RF will leave the senior notes exposed to commingling risk. Fitch notes that TDA25 experienced a sharp increase in three- month plus arrears compared to other Spanish RMBS transactions; it reached 1.36% just seven months after closing and stood at 1.49% of the collateral balance in December 2007. This led to defaults just 11 months after closing. All loans currently in default are originated by Credifimo and have an original loan-to-value ranging from 75% to 80%; at closing the weight average loan to value was 75.4%. Credifimo originated 76% of the pool and, as a specialist mortgage lender, charges higher-than-average margins, to medium- and low-income clients, who therefore have a higher probability of default. Rating Outlooks for European structured finance tranches provide forward-looking information to the market. An Outlook indicates the likely direction of any rating change over a one- to two- year period. VALENCIA HIPOTECARIO: Fitch Puts CCC Rating on Class D Notes ------------------------------------------------------------ Fitch Ratings assigned Valencia Hipotecario 4, FTA's notes totalling EUR978.5m due in April 2046 final ratings, as: -- EUR883.4m Class A: 'AAA'; Outlook Stable -- EUR42.8m Class B: 'A'; Outlook Stable -- EUR23.8m Class C: 'BBB'; Outlook Stable -- EUR28.5m Class D: 'CCC'; Outlook Stable This transaction is a cash flow securitisation of a EUR950m static pool of first ranking Spanish mortgage loans originated and serviced by Banco de Valencia (rated 'A'/ 'F1'/Outlook Stable). The ratings are based on the quality of the collateral, the underwriting and servicing of the mortgage loans, available credit enhancement, the integrity of the transaction's legal and financial structure and Europea de Titulizacion S.A., S.G.F.T.'s administrative capabilities. Initial CE for the Class A to C notes is provided by subordination and a reserve fund, which will be funded at closing using the proceeds of the Class D notes. The Class D notes are uncollateralised by mortgages, but will benefit from excess spread. The ratings address the payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B and C notes, as well as the repayment of principal at legal final maturity. Should the deferral trigger on the Class B and C notes be hit, interest on these notes will be deferred in the priority of payments. In this instance, interest payments might not be received for a period of time, but will be received by legal final maturity. The fund's sole purpose is to transform a portfolio of mortgages certificates (certificados de transmission de hipoteca, CTHs) acquired from Banco de Valencia into fixed-income securities. The CTHs are subscribed by Europea de Titulizacion S.A., S.G.F.T., whose sole function is to manage asset-backed notes on behalf of the fund. ===================== S W I T Z E R L A N D ===================== WEST CORP: Plans to Purchase Genesys for US$269 Million ------------------------------------------------------- West Corporation will seek to acquire Genesys and combine it with InterCall Inc., its subsidiary. West will make a cash offer of EUR2.50 per ordinary share and for the American Depositary Shares at the U.S. dollar equivalent. The total transaction value, excluding transaction expenses, is approximately EUR182.9 million or approximately US$268.8 million. For that purpose, West International Holdings Limited, a subsidiary of West, filed with the French Autorite des Marches Financiers a draft Tender Offer Prospectus. Genesys' board of directors has unanimously expressed support for this project and authorized the execution of a tender offer agreement between the two companies. Genesys' board of directors intends to recommend the offer to its shareholders. In accordance with French law and the tender offer agreement, such recommendation will be published in a draft Response Document to be filed by Genesys with the AMF within the next 10 business days. The tender offer price of EUR2.50 or approximately US$3.681 per share of common stock of Genesys, represents a premium of 50% above the closing price of Genesys' shares on Feb. 18, 2008, the last trading day prior to this disclosure, and a premium of 42% above the average closing price of Genesys' shares, volume- weighted over the last three months. The acquisition is expected to be funded with a combination of West's cash on hand and West's bank credit facilities. West expects to close the transaction during the second quarter. "West is committed to expanding InterCall's presence and this statement represents a significant step in achieving this goal," Thomas B. Barker, chief executive officer of West Corporation, stated. "When completed, this transaction will strengthen our leadership position and give our combined client base more collaboration solutions and personal attention in more locations than any other conferencing provider in the world." "Genesys has developed a leading multimedia conferencing solution for the global enterprise and is recognized by the industry as a leader in conferencing technology," Francois Legros, chairman and CEO of Genesys, said. "The board of directors and I are excited to see that the innovation and hard work of our employees and partners are validated and will now be part of a much bigger organization." Houlihan Lokey Howard & Zukin (Europe) Limited acted as financial advisor to Genesys and Lehman Brothers Inc. acted as financial advisor to West Corporation. Ricol Lasteyrie & Associes was appointed by Genesys as independent expert in accordance with Article 261-1 I� of the AMF General Regulations. The independent expert's report, once finalized, will be included in Genesys' draft Response Document. The transaction is to take the form of a tender offer subject to the standard procedure under applicable French laws and regulations for all Genesys shares and bonds redeemable in shares and all ADSs representing ordinary shares. The offer will only be opened for acceptance once the French regulatory authority, the AMF, has granted approval. The offer will be subject to these conditions: (i) Genesys securities tendered in the offer represent more than 66.66% of all the shares, including shares represented by ADSs, of Genesys on a fully diluted basis; and (ii) receipt of antitrust approvals in the United States, the United Kingdom and Germany. About Genesys Founded in 1986, Genesys (Euronext Eurolist: FR0004270270) -- http://www.genesys.com/-- is a provider of converged collaboration and communication services to thousands of organizations, including more than 250 of the Fortune Global 500. The company's flagship product, Genesys Meeting Center, provides an integrated multimedia conferencing solution that is easy to use and available on demand. With offices in more than 20 countries across North America, Europe and Asia Pacific. About West Corporation Headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- is a provider of outsourced communication solutions to many companies, organizations and government agencies. West has a team of 42,000 employees based in North America, Europe, and Asia. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. InterCall Inc. -- http://www.intercall.com/-- is a subsidiary of West Corporation, is a service provider in the world specializing in conference communications. Founded in 1991, InterCall helps people and companies be more productive by providing advanced audio, event, Web and video conferencing solutions that are easy-to-use and save them time and money. Along with a team of over 600 Meeting Consultants, the company employs more than 1,500 operators, customer service representatives, call supervisors, accounting, marketing and IT professionals. InterCall's U.S. presence, which includes four call centers and 26 sales offices, extends to Canada, Mexico, Latin America, the Caribbean, the United Kingdom, Ireland, France, Germany, Australia, New Zealand, India, Hong Kong, Singapore and Japan. As of Dec. 31, 2007, the company's balance sheet showed a stockholders' deficit of US$2.2 million. =========== T U R K E Y =========== TURKIYE VAKIFLAR: Fitch Holds Issuer Default Rating at BB- ---------------------------------------------------------- Fitch Ratings has affirmed Turkiye Vakiflar Bankasi T.A.O.'s ratings as follows -- Long-term foreign currency Issuer Default Rating (IDR): affirmed at 'BB-' (BB minus) -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'BB' -- Short-term local currency IDR: affirmed at 'B', -- National Long-term rating: affirmed at 'AA(tur)' -- Individual rating: 'C/D' -- Support rating: '4' -- Support Rating Floor: 'B+' The Outlooks for the Long-term IDRs and the National Long-term rating are Stable. Vakifbank's IDRs are driven by the bank's intrinsic financial strength, which is supported by its long-established franchise in Turkey, improved core deposit base and efficiency and adequate capitalisation. These are balanced by potential asset quality problems in a volatile operating environment. Increase in Vakifbank's net income was mainly driven by better trading results and one-off gains from tax rebates in 9M07. The net interest margin continued to narrow in 2006 and 9M07, reflecting higher competition. Vakifbank's fee and commission generation remains lower than that of its peers, representing a limited 11% of total operating revenue. The management plans to overcome this operational weakness by focusing more on cross- selling opportunities. Asset quality continued to improve in 2006 and Q307. The NPL ratio declined to 5.2% at end-Q307 (2006: 5.4%) with total reserve coverage of 112%. Vakifbank has a well-diversified core deposit base and also has good access to international capital markets. Vakifbank was adequately capitalised at end-Q307, with a consolidated Tier-1 CAR of 15%. Free capital continued to improve mainly as a result of reduced fixed assets and participations. Vakifbank is the sixth-largest bank in Turkey by assets, with 441 branches. Its main shareholder, with a 58.45% stake, is the General Directorate of Foundations, and 25.2% of the shares are listed at the Istanbul Stock Exchange, issued through an IPO. ============= U K R A I N E ============= DINA LLC: Creditors Must File Claims by March 6 ----------------------------------------------- Creditors of Agricultural LLC Dina (code EDRPOU 30763062) have until March 6, 2008, to submit written proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-19/266-07 The Debtor can be reached at: Agricultural LLC Dina 60 Years of October Str. 16 Izium Ukraine 64300 Kharkov MIUZI LLC: Creditors Must File Claims by March 6 ------------------------------------------------ Creditors of LLC Finance-Industrial Group Miuzi (code EDRPOU 32168538) have until March 6, 2008, to submit written proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 5, 2007. The case is docketed under Case No. B-24/240-07. The Debtor can be reached at: LLC Finance-Industrial Group Miuzi Kapitolovka Izium 64300 Kharkov Ukraine NAFTOGAZ UKRAINY: Ukraine Cabinet Opposes Gazprom Joint Ventures ---------------------------------------------------------------- The Ukrainian government's Cabinet is opposing plans to create joint ventures between NAK Naftogaz Ukrainy and OAO Gazprom, RIA Novosti says, citing Deputy Prime Miniter Oleksandr Turchinov. "We believe there is no need to create a JV to operate on the domestic market," Mr. Turchinov was quoted by RIA Novosti as saying. "Ukraine's national oil and gas company Naftogaz is capable of handling sales itself." As reported in the TCR-Europe on Feb. 19, 2008, Naftogaz Ukrainy and Gazprom entered into an agreement to create two joint ventures to handle domestic gas trade in Ukraine, as a result of a gas supply/debt repayment deal between the governments of Russia and Ukraine. RosUkrEnergo, a 50-50 joint venture owned by Gazprom and ARosgas Holding AG, currently holds a 50% stake in UkrGazEnergo, giving Gazprom a 25% share in Ukraine's domestic gas business. According to reports, the 50-50 joint ventures of Naftogaz and Gazprom will replace RosUkrEnergo and UkrGazEnergo, effectively increasing the Russian firm's presence in Ukraine's domestic gas business to 50%. Russian government-owned Gazprom had threatened to a cut a quarter of its gas supplies to its neighbor by 6:00 p.m. on Feb. 12, 2008, unless Ukraine reaches a debt settlement agreement with Russia, the Wall Street Journal relates. Gazprom claims Ukraine owes it US$1.5 billion for gas deliveries since November 2007. President Viktor Yushchenko said that under the agreement, Ukraine, via state-owned Naftogaz, will pay off US$1 billion of its debts from Feb. 14 to March 14, 2008. About Naftogaz Ukrainy Headquartered in Kiev, Ukraine, NAK Naftogaz Ukrainy -- http://www.naftogaz.com/-- processes gas, oil and condensate at the Company's five gas processing plants, which produce LPG, motor fuels and other types of petroleum products. Over 97% of the oil and gas in Ukraine is produced by the enterprises of the Company. * * * As reported in the TCR-Europe on Oct. 17, 2007, Fitch has placed the ratings of Naftogaz on Rating Watch Negative. The ratings include the company's Long-term foreign and local currency Issuer Default Ratings of 'B+', senior unsecured rating of 'B+' and Recovery Rating of 'RR4'. Naftogaz Ukraine also carries a Ba3 Corporate Family Rating, a Ba2 Senior Unsecured Debt rating, and a Ba3 Probability-of- Default rating from Moody's with a stable outlook. ONIS LLC: Creditors Must File Claims by March 6 ----------------------------------------------- Creditors of LLC Leasing Company Onis (code EDRPOU 32476172) have until March 6, 2008, to submit written proofs of claim to: Sergey Kolesnikov Liquidator Apartment 84 Kommunisticheskaya Str. 14-B 83044 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 16, 2008. The case is docketed under Case No. 45/124b. The court is located at: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Debtor can be reached at: LLC Leasing Company Onis Illich Avenue 44 83003 Donetsk Ukraine SVITANOK LLC: Creditors Must File Claims by March 6 --------------------------------------------------- Creditors of Agricultural LLC Svitanok (code EDRPOU 03731158) have until March 6, 2008, to submit written proofs of claim to: Anatoly Leschenko Liquidator Vinnica Ukraine October Square 2 Hotel Pivdenny Bug Apartment 217 The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent on Dec. 17, 2007. The case is docketed under Case No. 10/315-07. The Court is located at: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Debtor can be reached at: Agricultural LLC Svitanok Dmitrashkovka Pischansky District Vinnica Ukraine VIA PRINT: Creditors Must File Claims by March 6 ------------------------------------------------ Creditors of LLC Via Print (code EDRPOU 31086659) have until March 6, 2008, to submit written proofs of claim to: Denis Likhopiok Liquidator 49000 Dniepropetrovsk Ukraine P.O. Box 37 The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 22, 2008. The case is docketed under Case No. 15/698-b. The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Via Print Baseynaya Str. 5-b 01004 Kiev Ukraine VICTORIYA LLC: Creditors Must File Claims by March 6 ---------------------------------------------------- Creditors of LLC Victoriya (code EDRPOU 31436008) have until March 6, 2008, to submit written proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-48/61-07 The Debtor can be reached at: LLC Victoriya May Str. 6 Kupiansk 1 Kharkov Ukraine ZLAGODA LLC: Creditors Must File Claims by March 6 -------------------------------------------------- Creditors of LLC Zlagoda (code EDRPOU 30811016) have until March 6, 2008, to submit written proofs of claim to: Nikolay Kupriyenko Liquidator Apartment 18 Independency Square 1-B 36003 Poltava Ukraine The Economic Court of Poltava commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 17, 2008. The case is docketed under Case No. 18/86. The Court is located at: The Economic Court of Poltava Zigin Str. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC Zlagoda Rigi Lokhvitsa District Poltava Ukraine =========================== U N I T E D K I N G D O M =========================== AVEBURY FINANCE: Moody's Junks Rating on Class D Notes ------------------------------------------------------ Moody's Investors Service downgraded and left on review for further downgrade four classes of notes issued by Avebury Finance CDO Plc. These rating actions are a response to severe credit deterioration in the underlying portfolio. The transaction is a cash managed CDO containing 45% subprime RMBS and 18% ABS CDOs of the 2004, 2005, 2006, and 2007 vintages. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Avebury Finance CDO Plc: (1) US$55,000,000 Class A-2 Floating Rate Notes due 2051 Current Rating: Aa2, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) US$37,000,000 Class B Floating Rate Notes due 2051 Current Rating: Baa1, on review for downgrade Prior Rating: Aa1, on review for downgrade (3) US$14,000,000 Class C Deferrable Floating Rate Notes due 2051 Current Rating: Ba2, on review for downgrade Prior Rating: A2, on review for downgrade (4) US$6,000,000 Class D Deferrable Floating Rate Notes due 2051 Current Rating: Caa1, on review for downgrade Prior Rating: B3, on review for downgrade BAA LTD: Eyes GBP1 Billion Loan to Repay Increasing Debt -------------------------------------------------------- BAA Ltd., is seeking a GBP1 billion loan to refinance existing debt, Esteban Duarte writes for Bloombeg News, citing a banker bidding to arrange the deal. The loan, the source told Bloomberg News, will be secured on BAA's U.K. airports outside London including Edinburgh and Southampton. The company will announce the loan's arrangers in March 2008. According to Bloomberg News, increasing interest cost is compelling BAA to repay its GBP11.9 billion debts, which it took as part if its takeover by Grupo Ferrovial SA in 2006. The interest margin doubled to 212 basis points above interbank rates for GBP4.7 billion pounds borrowed in 2006, Bloombeg News cites data compiled by JPMorgan Chase & Co. "They have a big loan to refinance and bankers don't want to hold large loans on their books at present," Florian Grandcolas at AXA Investment Managers told Bloomberg News. "There's concern they might find it difficult to refinance." About BAA Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc) -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Heathrow, the world's busiest international airport, and Budapest Airport, serving 700 destinations by around 300 airlines. In June 2006, BAA was bought by a consortium led by Grupo Ferrovial SA, the Spanish construction company. Ferrovial is one of the world's leading construction groups, specializing in four strategic lines of business - airports, construction, transport infrastructure and services - throughout Spain, the U.K., Portugal and nine other countries in Europe and the rest of the world. The company has around 89,000 employees and a net revenue of EUR12.4 billion. * * * As reported in the TCR-Europe on Nov. 27, 2007, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on U.K.-based airports operator BAA Ltd. to 'BB-' from 'BBB+', reflecting delays in refinancing, as well as operating issues. BAA LTD: Heathrow Incident Cuts January 2008 Traffic ---------------------------------------------------- BAA Ltd.'s U.K. airports handled a total of 10.1 million passengers in January 2008, a decrease of 2.0% on the same month in 2007. Traffic losses arising from the British Airways incident at Heathrow, and from high winds late in the month, were contributing factors. Domestic traffic (-5.8%) saw the biggest downturn in the month, although European charter traffic (-5.6%) experienced a similar decrease. European scheduled traffic was down by 1.7% and North Atlantic by 1.4%. However, there was a significant increase of 18% in traffic to Hong Kong and China. In terms of individual airports, Edinburgh (+3.9%) and Gatwick (+1.0%) recorded increases in January. Heathrow passengers were down by 1.1% and Stansted recorded a drop of 9.3% due to some cutbacks in the winter schedule of both Ryanair and Air Berlin.. In Scotland Glasgow was 6.1% lower while Aberdeen dipped 4.7%. In total the number of air transport movements at BAA airports fell 3.2% in January while cargo activity experienced a strong rebound on recent trends with an overall increase of 7.2% and a 10.3% rise at Heathrow. About BAA Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc) -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Heathrow, the world's busiest international airport, and Budapest Airport, serving 700 destinations by around 300 airlines. In June 2006, BAA was bought by a consortium led by Grupo Ferrovial SA, the Spanish construction company. Ferrovial is one of the world's leading construction groups, specializing in four strategic lines of business - airports, construction, transport infrastructure and services - throughout Spain, the U.K., Portugal and nine other countries in Europe and the rest of the world. The company has around 89,000 employees and a net revenue of EUR12.4 billion. * * * As reported in the TCR-Europe on Nov. 27, 2007, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on U.K.-based airports operator BAA Ltd. to 'BB-' from 'BBB+', reflecting delays in refinancing, as well as operating issues. BANTRY BAY: Moody's Junks Ratings on Two Note Classes ----------------------------------------------------- Moody's Investors Service downgraded and left on review for downgrade six classes of notes issued by Bantry Bay CDO I Plc. These rating actions are a response to severe credit deterioration in the underlying portfolio as level as a sharp decrease in collateral par. The transaction is exposed to a portfolio comprised of 40% high yield CDOs and 60% US ABS CDOs primarily of the 2006 and 2007 vintages, which in turn are exposed to US RMBS. There has been significant further rating deterioration in many of the ABS CDOs underlying this transaction, including a number of defaults. Moody's will continue to monitor all deals with direct or indirect exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Bantry Bay CDO I Plc: (1) US$127,000,000 Class A-1 Floating Rate Notes Current Rating: Aa1, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) US$29,000,000 Class A-2 Floating Rate Notes, due 2052 Current Rating: A2, on review for downgrade Prior Rating: Aaa, on review for downgrade (3) US$28,000,000 Class A-3 Floating Rate Notes, due 2052 Current Rating: Baa3, on review for downgrade Prior Rating: Aaa, on review for downgrade (4) US$31,500,000 Class B Floating Rate Notes, due 2052 Current Rating: B3, on review for downgrade Prior Rating: Ba1, on review for downgrade (5) US$11,500,000 Class C Deferrable Floating Rate Notes, due 2052 Current Rating: C Prior Rating: Ba3, on review for downgrade (6) US$9,000,000 Class D Deferrable Floating Rate Notes, due 2052 Current Rating: C Prior Rating: B3, on review for downgrade BLENDON COMMUNICATIONS: Taps Liquidators from Smith & Williamson ---------------------------------------------------------------- Stephen Robert Cork and Anthony Murphy of Smith & Williamson Ltd. were appointed joint liquidators of Blendon Communications Ltd. on Feb. 12 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Smith & Williamson Ltd. Prospect House 2 Athenaeum Road London N20 9YU England CAPTIVE MINDS: Claims Filing Period Ends March 31 ------------------------------------------------- Creditors of Captive Minds Ltd. have until March 31, 2008 to prove their debts by sending to: Peter Hollis Liquidator Vantis Business Recovery Services Torrington House 47 Holywell Hill St. Albans Hertfordshire AL1 1HD England Peter Hollis of Vantis Business Recovery Services was appointed liquidator of the company on Feb. 15 for the creditors' voluntary winding-up procedure. CLARIS IV LIMITED: Moody's Lowers Ratings on Three Note Classes --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade three classes of notes issued by Claris IV Limited - Leibnitz. These rating actions are a response to severe credit deterioration in the underlying portfolio. This transaction is a managed synthetic CDO of ABS referencing a portfolio which contains 100% US RMBS of the 2005, 2006, and 2007 vintages. In addition, 2.24% of the portfolio by volume is currently rated Ca and below. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Claris IV Limited - Leibnitz: (1) The Series 8 US$39,000,000 Leibnitz 2006-1 Synthetic CDO of RMBS Variable Rate Notes due 2046 Current Rating: Aa3, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) The Series 9 US$49,000,000 Leibnitz 2006-1 Synthetic CDO of RMBS Variable Rate Notes due 2046 Current Rating: Baa2, on review for downgrade Prior Rating: Aa2, on review for downgrade (3) The Series 10 US$22,000,000 Leibnitz 2006-1 Synthetic CDO of RMBS Variable Rate Notes due 2046 Current Rating: Ba3, on review for downgrade Prior Rating: A2, on review for downgrade DURA AUTOMOTIVE: Court OKs Amendments to Revolving DIP Debt Pact ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted final approval to Amendment No. 5 to Revolving DIP Credit Agreement, dated as of Jan. 30, 2008, by and among the Debtors, as Borrowers and Guarantors; General Electric Capital Corporation, as Administrative Agent; Barclays Capital, the investment banking division of Barclays Bank PLC, as Joint Lead Arranger and Documentation Agent; and Bank of America, N.A., as Issuing Bank. As reported in the Troubled Company Reporter-Europe on Feb. 6, 2008, the Revolver Amendment amended the terms of the existing Revolving DIP Credit Agreement to, among other things, (i) extend its final maturity date from Jan. 31, 2008 to June 30, 2008; (ii) reduce the commitment from US$115,000,000 to US$90,000,000; (iii) delete the minimum EBITDA covenant and amend the budget compliance covenant to provide for a 25% cushion during the months of February and March and a 20% cushion thereafter, in each case with respect to the amount budgeted for revolver borrowings during the time; (iv) permit the Debtors to retain certain asset sale proceeds; (v) amend the Revolving DIP Credit Agreement to include certain representations, warranties and covenants contained in the New Term Loan DIP Agreement; (vi) include a covenant requiring the Debtors to meet certain milestones in their restructuring plan; (vii) amend the excess availability covenant to increase the minimum excess availability requirement to US$25,000,000 subject to subsequent decreases to US$20,000,000 and US$15,000,000 upon compliance with certain conditions set forth in the Revolver Amendment; and (viii) increase the interest rate set forth in the Revolving DIP Credit Agreement by 0.50%; provided that LIBOR Rate will not be available to the Debtors during the remaining term of the Revolving DIP Credit Agreement. In light of the Debtors' entry into the US$170,000,000 replacement facility, which was earlier given final approval by the Court, the Debtors have repaid the outstanding amounts under their Senior Secured Super-Priority Debtor In Possession Term Loan and Guaranty Agreement, dated as of October 31, 2006, with a syndicate of lenders led by Goldman Sachs Credit Partners L.P., as administrative agent. The Court said that the Existing Term DIP Facility is now terminated with the payment of the Debtors' obligations in full in cash. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Must Appear at Final Hearing to OK Bonus Plan -------------------------------------------------------------- The Hon. Kevin J. Carey agreed to approve a 2008 Bonus Plan after forcing DURA Automotive Systems Inc. and its debtor- affiliates to agree to come back for a final hearing before the Debtors pay key managers, should the company still be in bankruptcy in July 2008, Steven Church at Bloomberg News reported. According to Bloomberg, Judge Carey said the goal of a final hearing would be to find out whether a delay in the Debtors' plan to exit Chapter 11 in June 2008 is "attributable to the employees' performance." "I want to get to the heart of why the case is not out by then," Bloomberg quoted Judge Carey as saying. Bloomberg also reported that Judge Carey rejected an objection of the United Automotive Workers union to the Bonus Plan ruling that performance targets were reasonable. 2008 Annual Bonus Plan Filed The Debtors had asked the Court to approve the 2008 Bonus Plan. To address the concerns raised by the Official Committee of Unsecured Creditors, the Debtors entered into discussions with the Creditors Committee and, based on those discussions, produced a modified 2008 annual bonus plan for certain key management and other employees. The 2008 Annual Bonus Plan provides incentive bonus program for about 110 non-senior management and other key employees whom the Debtors employ in their North American operations. The 2008 ABP does not include bonus payments to the Debtors' chief executive officer, chief financial officer, chief operating officer, or the chief administrative officer. None of those officials will receive any payment under the 2008 ABP. The 2008 Bonus Plan will make available US$2,600,000, allocated as: -- US$1,680,000 if targets are met in timely completion of certain operational restructuring initiatives related to the "Metals Move;" and -- US$920,000 if the Debtors achieve its projected EBITDA targets. The Operational Restructuring Incentive Bonuses are designed to provide incentives for on-time, below budget execution of the production relocations from the Jacksonville, Florida; Moberly, Missouri; and Gladwin, Michigan, plants to Matamoros, Mexico. A bonus payment of US$700,000 will be awarded if the Jacksonville Donor Plant production relocation is completed on or before June 30, 2008. The US$700,000 Bonus Payment will not be awarded if the relocation is not completed before June 30. Each 2008 Bonus Plan Participant's EBITDA Incentive Bonus payment will vary proportionally from 50% of the target amount if 90% of the participant's target is met to 150% of the target if 120% of the participant's target is achieved. No EBITDA Incentive Bonus will be awarded if actual achievement is less than 90% of the target EBITDA. The Debtors will make the bonus payments as soon as practicable after their emergence from Chapter 11, provided that emergence will not be later than July 11, 2008, and further payments on Oct. 31, 2008, and Jan. 31, 2009. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, tells the Court that the 2008 Annual Bonus Plan is very similar in scope and intent to the Debtors' historic annual bonus plans, albeit certain frontloaded payments. The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, has objected to the Debtors' proposed 2008 key management incentive plan and asked the Court to deny approval of that incentive plan. The UAW asserted that: (a) the proposed 2008 KMIP operates quite differently from the Debtors' prepetition Annual Bonus Plan; (b) the proposed 2008 KMIP was prepared by senior management, including executives who sought to be covered under the program; (c) there is nothing in the 2008 KMIP that connects the payment of a bonus to any individualized or team performance goals; and (d) the Debtors are proposing the 2008 KMIP not because due diligence has revealed any specific need for a program but because the Debtors' exit from bankruptcy has been delayed and they do not want unhappy and disappointed managers. The Debtors, in response to UAW's objections, noted that the 2008 Annual Bonus Plan was developed, not only with the input of a multitude of compensation consultants, but also with an independent counsel as well as input of the Creditors Committee. The Creditors Committee withdrew its objection to the proposed 2008 KMIP as a result of the creation of the 2008 Bonus Plan. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). EIRLES TWO: Moody's Cuts Rating on US$150 Million Notes to Ba1 -------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade one class of notes issued by Eirles Two Limited. This rating action is a response to severe credit deterioration in the underlying portfolio. This transaction is a static synthetic CDO of ABS referencing a portfolio which contains 96% US RMBS of the 2005, 2006, and 2007 vintages. In addition, 11% of the portfolio by volume (all US RMBSs) is currently rated Ca and below. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating action is: Eirles Two Limited: (1) The US$150,000,000 Series 300 Secured Floating Rate Notes due September 2050 Current Rating: Ba1, on review for downgrade Prior Rating: Aa1, on review for downgrade FAXTOR HG 2007-1: Moody's Lowers Rating on Six Note Classes ----------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade six classes of notes issued by Faxtor HG 2007- 1 and by Faxtor HG 2007-1 Inc. These rating actions are a response to severe credit deterioration in the underlying portfolio. The transaction is a funded managed CDO referencing ABS and CDOs of ABS (ABS CDOs), containing 54% RMBS and 18% ABS CDOs of the 2004, 2005, 2006, and 2007 vintages. Of the entire portfolio, 23% of the assets by volume have been downgraded, placed on review for downgrade, or both since October 2007. In addition, 4.3% of the portfolio by volume (all ABS CDOs) is currently in default. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Faxtor HG 2007-1 and by Faxtor HG 2007-1 Inc: (1) US$1,050,000,000 Class A-1M Floating Rate Delayed Draw Secured Notes due 2049 Current Rating: Aa2 on review for downgrade Prior Rating: Aaa, on review for downgrade (2) US$83,000,000 Class A-2 Floating Rate Secured Notes due 2049 Current Rating: Baa3 on review for downgrade Prior Rating: Aaa, on review for downgrade (3) US$42,000,000 Class B-1 Floating Rate Secured Notes due 2049 Current Rating: B2 on review for downgrade Prior Rating: Aa1, on review for downgrade (4) US$40,000,000 Class B-2 Floating Rate Secured Notes due 2049 Current Rating: Caa1 on review for downgrade Prior Rating: Aa2, on review for downgrade (5) US$13,000,000 Class C Deferrable Floating Rate Secured Notes due 2049 Current Rating: Ca on review for downgrade Prior Rating: A2 on review for downgrade (6) US$12,500,000 Class D Deferrable Floating Rate Secured Notes due 2049 Current Rating: C Prior Rating: Baa2 under review for downgrade FORD MOTOR: Announcement of Tata Motors Deal Sets March 6 or 7 -------------------------------------------------------------- The announcement of the sale of Ford Motor Co.'s Jaguar and Land Rover luxury brands to Tata Motors Limited will be made on March 6 or 7, media reports say. Tata Motors became the front-runner to buy the two luxury brands, outbidding Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 1, 2008, Tata Motors is closing in on an agreement with Ford for the purchase. Last week, Tata and Ford met with British union leaders to resolve final details before drawing up a memorandum of understanding for the sale, AFX News said quoting a report by Automotive News. Media reports noted that the union is satisfied with Tata Motors assuring them, among others, of keeping employment in the United Kingdom at its current level. To pave the way for the final takeover, Tata Motors will sign a three-way Heads of Agreement with Ford and the Jaguar-Land Rover labor union Unite within a few days, The Times of India said citing Dave Osboerne, Motor Industry Leader for Unite. The HoA, a tripartite document, would outline the assurances and agreements reached among the three key players regarding the deal, Mr. Osboerne told the news agency. The parties will also enter into a final memorandum of understanding on the takeover soon, The Times added. Announcement of the deal could have been earlier than March 6 or 7, but it is being delayed so as not to overshadow the introduction of an updated Ford Fiesta at the Geneva auto show next week, Automotive News cited an unnamed source from Ford as saying. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Europe on Nov. 20, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. G SQUARE 2007-1: Moody's Cuts Ratings on Six Note Classes --------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade six classes of notes issued by G Square Finance 2007-1 Ltd.. These rating actions are a response to severe credit deterioration in the underlying portfolio. The transaction is a funded managed CDO referencing ABS and CDOs of ABS (ABS CDOs), containing 55% RMBS and 15% ABS CDOs of the 2004, 2005, 2006, and 2007 vintages. Of the entire portfolio, 33% of the assets by volume have been downgraded, placed on review for downgrade, or both since October 2007. In addition, 4.5% of the portfolio by volume (all ABS CDOs) is currently in default. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: G Square Finance 2007-1 Ltd: (1) US$1,583,000,000 Class A-1 Senior Secured Floating Rate Notes due 2052 Current Rating: Aa2 on review for downgrade Prior Rating: Aaa, on review for downgrade (2) US$20,000,000 Class A-2 Senior Secured Floating Rate Notes due 2052 Current Rating: Ba1, on review for downgrade Prior Rating: Aaa, on review for downgrade (3) US$45,000,000 Class B Senior Secured Floating Rate Notes due 2052 Current Rating: B3 on review for downgrade Prior Rating: Aa2, on review for downgrade (4) US$20,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2052 Current Rating: Caa3 on review for downgrade Prior Rating: A2, on review for downgrade (5) US$10,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2052 Current Rating: C Prior Rating: Baa2, on review for downgrade (6) US$7,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2052 Current Rating: C Prior Rating: Ba1, on review for downgrade G SQUARE 2006-2: Moody's Lowers Rating on Five Note Classes ----------------------------------------------------------- Moody's Investors Service downgraded, and left on review for downgrade, five classes of notes issued by G Square Finance 2006-2 Limited. These rating actions are a response to credit deterioration in the underlying portfolio. The transaction is a cash managed CDO containing 90% RMBS and 10% ABS CDOs of the 2004, 2005, 2006, and 2007 vintages. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: G Square Finance 2006-2 Limited: (1) US$45,000,000 Class A-2 Senior Secured Floating Rate Notes due 2046 Current Rating: Aa2, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) US$18,000,000 Class B Senior Secured Floating Rate N otes due 2046 Current Rating: Baa1, on review for downgrade Prior Rating: Aa1, on review for downgrade (3) US$20,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2046 Current Rating: Ba3, on review for downgrade Prior Rating: A2, on review for downgrade (4) US$12,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2046 Current Rating: Caa2, on review for downgrade Prior Rating: B3, on review for downgrade (5) US$2,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2046 Current Rating: Ca, on review for downgrade Prior Rating: Caa3, on review for downgrade GENERAL MOTORS: Inks Settlement Pact with UAW and Union Retirees ---------------------------------------------------------------- General Motors Corporation, the International Union, United Automobile, Aerospace and Agricultural Workers of America and the class representatives in a class action case filed with the U.S. District Court for the Eastern District of Michigan against GM on Sept. 26, 2007 by the UAW and putative class representatives of GM-UAW, entered into a settlement agreement on Feb. 21, 2008. The Settlement Agreement effects the transactions contemplated by the Memorandum of Understanding -- Post-Retirement Medical Care that was entered into between GM and the UAW on Sept. 26, 2007, in conjunction with the negotiation by GM and the UAW of a new national collective bargaining agreement governing the wages, hours and terms and conditions of employment for UAW- represented employees. "This proposed settlement will put into effect what we negotiated in 2007," UAW President Ron Gettelfinger said. "Through hard work and hard bargaining, we have negotiated an innovative way to secure health care benefits for UAW GM retirees." The VEBA trust, Mr. Gettelfinger said, "will be managed by independent trustees with expertise in health care, investments, finance and other key areas. We are confident it will have sufficient assets and sufficient cash flow to pay benefits to our retirees for the next 80 years. "The VEBA trust will protect our retirees. That's why we negotiated it last year, and that's why we're supporting this proposed settlement." The Settlement Agreement provides that on the later of Jan. 1, 2010 or final court approval of the Settlement Agreement, GM will transfer its obligations to provide covered UAW employees with post-retirement medical benefits to a new retiree health care plan to be established and funded by a newly established Voluntary Employee Beneficiary Association trust. GM will fund the New VEBA through a number of sources including: funds that are currently in existing voluntary employee beneficiary association trusts, GM-issued convertible and short term notes, as well as cash on hand or additional sources of liquidity. The parties to the Settlement Agreement have acknowledged that GM's obligations to pay into the New VEBA are fixed and capped as provided in the Settlement Agreement and that GM is not responsible for, and does not provide a guarantee of: (1) the payment of future benefits to plan participants, (2) the asset returns of the funds in the New VEBA, or (3) whether there will be sufficient assets in the New VEBA to fully pay the obligations of the New VEBA or New Plan. In the event the assets of the New VEBA are not sufficient to fully fund the obligations of the New Plan, the New VEBA and New Plan will be required to reduce benefits to plan participants. The Settlement Agreement is subject, in its entirety, to: obtaining a class certification order from the United States District Court for the Eastern District of Michigan such that the class in the certification order is defined in the same manner as Class is defined in the Settlement Agreement; obtaining Court approval in a form acceptable to GM, the UAW and the Class; completing discussions between GM and the Securities Exchange Commission regarding accounting treatment on a basis satisfactory to GM. The Settlement Agreement may be terminated by any party upon 30 days notice if, among other things, satisfactory class certification or Court approval has been received and such certification or Court approval is subsequently overturned on appeal. GM may immediately terminate the Settlement Agreement if, after discussions with the SEC, GM does not believe that the accounting treatment for the New VEBA and the New Plan is satisfactory to GM. The U.S. District Court has scheduled a hearing June 3, 208, in Detroit to consider approval of the proposed settlement. A full-text copy of the Settlement Agreement is available for free at: http://ResearchArchives.com/t/s?2875 Convertible Note On Feb. 22, 2008, GM issued US$4,372,500,000 principal amount of its 6.75% Series U Convertible Senior Debentures Due Dec. 31, 2012 to LBK, LLC, a Delaware limited liability company of which GM is the sole member, pursuant to the Settlement Agreement. LBK will hold the Convertible Note until it is transferred to the New VEBA in accordance with the terms of the Settlement Agreement. Interest on the Convertible Note is payable semiannually. In accordance with the Settlement Agreement LBK will transfer any interest it receives on the Convertible Note to a temporary asset account maintained by GM. The funds in the temporary asset account will be transferred to the New VEBA in accordance with the terms of the Settlement Agreement. The Convertible Note was issued pursuant to an indenture, dated as of Jan. 8, 2008, between GM and The Bank of New York, as trustee, as supplemented by the First Supplemental Indenture dated as of Feb. 22, 2008. The Convertible Note matures on Dec. 31, 2012 and will constitute a part of GM's senior debt and will rank equally with all of GM's other unsecured and unsubordinated debt. GM may redeem the Convertible Note, in whole or in part, at any time on or after Jan. 1, 2011 in cash at a price equal to 100% of the principal amount being redeemed plus (1) accrued and unpaid interest and (2) under certain circumstances if the Convertible Note is held by the New VEBA, an additional redemption adjustment amount. The Convertible Note will be initially convertible, subject to certain conditions, by a holder, other than LBK, into shares of GM common stock at a conversion rate of .625 shares of common stock per US$25 principal amount of the Convertible Note, representing an initial effective conversion price of US$40 per share. The conversion rate is subject to adjustment upon certain circumstances. Upon conversion, GM has the right to pay cash in lieu of any shares of common stock that otherwise would have been issuable. In conjunction with the issuance of the Convertible Note, GM and LBK have entered into certain cash-settled derivative instruments maturing on June 30, 2011 that will have the economic effect of reducing the conversion price of the Convertible Note from US$40 to US$36. These derivative instruments will also entitle GM to partially recover the additional economic value provided if GM's common stock price appreciates to between US$63.48 and US$70.53 per share and to fully recover the additional economic value provided if GM's common stock price reaches US$70.53 per share or above. Pursuant to the Settlement Agreement, LBK will transfer its interests in the derivatives to the New VEBA when the Convertible Note is transferred from LBK to the New VEBA. Short Term Note On Feb. 21, 2008, GM issued a short term note in the principal amount of US$4,015,187,871 to LBK pursuant to the Settlement Agreement. The Short Term Note pays interest at a rate of 9% and matures on the date that the face amount of the Short Term Note is paid with interest to the New VEBA in accordance with the terms of the Settlement Agreement. LBK will hold the Short Term Note until it matures. Upon maturity, and in accordance with the Settlement Agreement, GM will cause LBK to pay to the New VEBA in cash the face value of the Short Term Note, plus cash in an amount equal to the interest accrued on such amount from and including the date of the Short Term Note, but excluding the date of payment to the New VEBA. As a wholly owned consolidated subsidiary of GM, LBK will hold the convertible note, the short term note, and the derivatives until they are transferred or paid to the New VEBA. As such, these three securities will be effectively eliminated in GM's consolidated financial statements until they are transferred to the New VEBA. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Europe on Nov. 12, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. GETTY IMAGES: Hellman & Friedman Acquires Firm for US$2.4 Bln ------------------------------------------------------------- Getty Images Inc. has entered into a definitive merger agreement to be acquired by affiliates of the private equity firm Hellman & Friedman LLC in a transaction valued at around US$2.4 billion, including the assumption of existing debt. Under the terms of the agreement, Getty Images stockholders will receive US$34.00 in cash for each outstanding share of common stock they own. This price represents a premium of around 55% over the closing price on Jan. 18, 2008, the last trading day before the Company announced that it was exploring strategic alternatives. The Board of Directors of Getty Images has approved the merger agreement and resolved to recommend that Getty Images' stockholders approve the transaction. Completion of the transaction is subject to shareholder approval and other customary closing conditions. The transaction is not subject to a financing condition and is expected to close in the second quarter of 2008. "Our Board of Directors has thoroughly evaluated strategic alternatives for Getty Images and has determined that this outcome is in the best interests of our stockholders as it provides them with superior and certain value," said Jonathan Klein, co-founder and chief executive officer of Getty Images. "Furthermore, Hellman & Friedman brings specific industry expertise and support for the vision of the Company's management team that will benefit our employees, customers and partners." "Just over a decade ago we started Getty Images with little more than a vision and have achieved industry leadership due to the extraordinary talent, effort and commitment of our employees and partners," Mr. Klein added. "We are enthusiastic about entering the next phase of Getty Images' evolution by partnering with Hellman & Friedman as we continue to provide innovative offerings to businesses and consumers in a very dynamic digital media environment." "Getty Images is the leader and pioneer in the visual content and digital media business," Andy Ballard, managing director of Hellman & Friedman, said. We believe in the vision and execution capabilities of Jonathan Klein and his team, and share their commitment to the Company's stakeholders and customers. We look forward to working with all of Getty Images' employees to realize the full potential of its traditional businesses while furthering the evolution of Getty Images into a global digital media company." Financing commitments have been provided by Barclays Capital, GE Commercial Finance and RBS Greenwich Capital. In addition, Getty Investments and certain related parties, including the co- founder and chairman, Mark Getty, who collectively hold approximately 15% of the Company's shares, have agreed to vote in favor of the transaction and rollover their shares into the acquiring entity. Goldman, Sachs & Co. is acting as financial advisor to Getty Images. Barclays Capital and RBS Greenwich Capital are acting as financial advisors to Hellman & Friedman. Weil Gotshal & Manges LLP and Simpson Thacher & Bartlett LLP are serving as legal advisors to Getty Images and Hellman & Friedman, respectively. About Hellman & Friedman Hellman & Friedman LLC -- http://www.hf.com/-- is a leading private equity investment firm with offices in San Francisco, New York and London. The Firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including media and marketing services, financial services, professional services, information services, healthcare and energy. About Getty Images Headquartered in Seattle, Washington, Getty Images, Inc. -- http://corporate.gettyimages.com/-- creates and distributes visual content. The company has corporate offices in Australia, the United Kingdom and Argentina. * * * As reported in the TCR-Europe on Jan. 29, 2008, Standard & Poor's Ratings Services affirmed its ratings and outlook on Getty Images Inc., including its 'BB' corporate credit rating. GLOBAL TRADER: Appoints Smith & Williamson to Administer Assets --------------------------------------------------------------- Stephen Robert Cork and Joanne Elizabeth Milner of Smith & Williamson Ltd. were appointed joint administrators of Global Trader Europe Ltd. (Company Number 05108921) on Feb. 15, 2008. Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. The company can be reached at: Global Trader Europe Ltd. 1 Kingsway London WC2B 6XF England Tel: 020 7420 1200 Fax: 020 7420 1201 HOOPER GIBSON: Brings In Liquidators from Mazars ------------------------------------------------ Simon David Chandler and Alistair Steven Wood of Mazars LLP were appointed joint liquidators of Hooper Gibson Ltd. on Feb. 9 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Mazars LLP Lancaster House 67 Newhall Street Birmingham B3 1NG England I-FLOOR DESIGN: Names Joint Administrators from Grant Thornton -------------------------------------------------------------- Alistair Wardell and Nigel Morrison of Grant Thornton UK LLP were appointed joint administrators of I-Floor Design Ltd. (Company Number 03277730) on Feb. 12, 2008. Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- provides value-added professional services as assurance services, compensation and benefits, merger and acquisition transaction services, management advisory services, tax consulting and valuation services. The company can be reached at: I-Floor Design Ltd. Eagle Tower Montpellier Drive Cheltenham Gloucestershire GL50 1TA England Tel: 0870 264 3066 Fax: 0870 264 3077 LOGAN CDO II: Moody's Junks Ratings on Three Note Classes --------------------------------------------------------- Moody's Investors Service downgraded six classes of notes issued by Logan CDO II Limited and left four of them on review for further downgrade. These rating actions are a response to severe credit deterioration in the underlying portfolio. This transaction is a managed synthetic CDO of ABS referencing a portfolio which contains 23.9% RMBS and 20.72% ABS CDOs of the 2005, 2006, and 2007 vintages. In addition, 0.8% of the portfolio by volume (two US ABS CDOs) is currently rated Ca. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. Today's rating actions are as follows: Logan CDO II Limited: (1) The US$40,000,000 Class A-1 Floating Rate Credit Linked Secured Notes due 2051 Current Rating: Aa1, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) The US$49,000,000 Class A-2 Floating Rate Credit Linked Secured Notes due 2051 Current Rating: A2, on review for downgrade Prior Rating: Aaa, on review for downgrade (3) The US$22,000,000 Class B Floating Rate Credit Linked Secured Notes due 2051 Current Rating: Ba1, on review for downgrade Prior Rating: Aaa, on review for downgrade (4) The US$18,500,000 Class C Floating Rate Credit Linked Secured Notes due 2051 Current Rating: Caa2, on review for downgrade Prior Rating: Aa3, on review for downgrade (5) The US$12,000,000 Class D Floating Rate Credit Linked Secured Notes due 2051 Current Rating: C Prior Rating: Baa2, on review for downgrade (6) The US$5,000,000 Class E Floating Rate Credit Linked Secured Notes due 2051 Current Rating: C Prior Rating: Ba2, on review for downgrade LOGAN CDO III: Moody's Lowers Ratings on Eight Note Classes ----------------------------------------------------------- Moody's Investors Service downgraded eight classes of notes, and left on review for further downgrade six classes of notes issued by LOGAN CDO III Limited. These rating actions are a response to severe credit deterioration in the underlying portfolio. The transaction is a synthetic managed CDO referencing a portfolio of US assets, and consisting of 30% CDOs of ABS and 25% RMBS of the 2005, 2006, and 2007 vintages. In addition, one Credit Event has occured in this transaction but has not been settled yet. Moody's will continue to monitor all deals with exposure to ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to ABS CDO vintages becomes known. The rating actions are: LOGAN CDO III Limited: -- US$108,500,000 Class A-1 Floating Rate Credit Linked Secured Notes due 2057 Current Rating: A3, on review for downgrade Prior Rating: Aaa, on review for downgrade -- US$41,782,398 Class A-2A Floating Rate Credit Linked Secured Notes due 2057 Current Rating: B3, on review for downgrade Prior Rating: Aaa, on review for downgrade -- JPY1,000,000,000 Class A-2B Floating Rate Credit Linked Secured Notes due 2057 Current Rating: B3, on review for downgrade Prior Rating: Aaa, on review for downgrade -- US$19,250,000 Class B Floating Rate Credit Linked Secured Notes due 2057 Current Rating: Caa3, on review for downgrade Prior Rating: Aa1, on review for downgrade -- US$6,000,000 Class C-1A Floating Rate Credit Linked Secured Notes due 2057 Current Rating: Ca, on review for downgrade Prior Rating: Aa3, on review for downgrade -- US$8,500,000 Class C-1B Fixed up to Year 8 then Floating Rate Credit Linked Secured Notes due 2057 Current Rating: Ca, on review for downgrade Prior Rating: Aa3, on review for downgrade -- US$13,700,000 Class D Floating Rate Credit Linked Secured Notes due 2057 Current Rating: C Prior Rating: A3, on review for downgrade -- US$15,000,000 Class E Floating Rate Credit Linked Secured Notes due 2057 Current Rating: C Prior Rating: Ba1, on review for downgrade LONDON DRAWING: Taps Begbies As Joint Administrators ---------------------------------------------------- Timothy John Edward Dolder and Colin David Wilson of Begbies Traynor (South) LLP were appointed joint administrators of London Drawing Office (Docklands) Ltd. (Company Number 03092748) on Feb. 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: London Drawing Office (Docklands) Ltd. Unit C22 Poplar Business Park Prestons Road London E14 9RL England Tel: 020 7537 9411 Fax: 020 7537 7756 MARC CDO I: Moody's Puts Junk Rating on Three Note Classes ---------------------------------------------------------- Moody's Investors Service downgraded six classes of notes issued by Marc CDO I Plc and left four of them on review for further downgrade. These rating actions are a response to severe credit deterioration in the underlying portfolio. This transaction is a managed synthetic CDO of ABS referencing a portfolio which contains 55% US RMBS and 15% US ABS CDOs of the 2005, 2006, and 2007 vintages. In addition, 0.25% of the portfolio by volume is wrapped by monoline insurer FGIC, whilst 2.26% of the portfolio by volume (one US ABS CDO) is currently in default. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Marc CDO I Plc: (1) The US$38,000,000 Class A1 Secured Floating Rate Credit Linked Notes due 2053 Current Rating: Aa1, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) The US$20,000,000 Class A2 Secured Floating Rate Credit Linked Notes due 2053 Current Rating: A2, on review for downgrade Prior Rating: Aaa, on review for downgrade (3) The US$25,000,000 Class B Secured Floating Rate Credit Linked Notes due 2053 Current Rating: Ba2, on review for downgrade Prior Rating: Aa2, on review for downgrade (4) The US$13,000,000 Class C Secured Floating Rate Credit Linked Notes due 2053 Current Rating: Caa3, on review for downgrade Prior Rating: A1, on review for downgrade (5) The US$14,000,000 Class D Secured Floating Rate Credit Linked Notes due 2053 Current Rating: C Prior Rating: Baa2, on review for downgrade (6) The US$4,500,000 Class E Secured Floating Rate Credit Linked Notes due 2053 Current Rating: C Prior Rating: Ba2, on review for downgrade MAXJET AIRWAYS: Bid Deadline Extended Until February 27 ------------------------------------------------------- MAXjet Airways Inc. further extended the deadline for receipt of qualified bids to Wednesday Feb. 27, 2008, at 5:00 p.m. Eastern Time, thereafter, MAXjet will determine which offer is the winning bid, according to a Regulatory News Service report intercepted by Bloomberg News. The Debtor expects that all proceeds from the sale of its assets will be for the benefit of its creditors, but not for the shareholders, source reports. As previously reported in the Troubled Company Reporter-Europe, the Debtor wanted to set Feb. 6 as deadline for submission of initial bids and Feb. 11 for final bids. The Debtor proposed that the public auction will be held on Feb. 20, 2008, at the Wilmington, Delaware office of MAXjet's counsel, Pachulski Stang Ziehl & Jones LLP. The United States Bankruptcy Court for the District of Delaware approved the modified procedures for the auction and sale of the Debtor's asset, as reported in the Troubled Company Reporter on Feb. 5, 2008. Among the assets for sale are 27 operating certificates from the Federal Aviation Administration. The Debtor's ability to transfer its certificates are subject to approval by certain government entities, according to reports. Interested bidders may contact the Debtor's chief executive officer Bill Stockbridge at bstockbridge@maxjet.com. About MAXjet Airways Dulles, Virginia-based MAXjet Airways Inc. -- http://www.maxjet.com/-- is an all-business class, long-haul airline company. It has introduced scheduled services with flights from London Stansted Airport to New York. As of December, 2006, it leased five B767 aircraft. Its customers are both business and leisure travelers. At the airport, its product features check-in facilities located in primary terminals, security and a business class departure lounge and arrivals facility. Its flights features deep-recline seats (170 degree) spaced at a 60 inch pitch, portable entertainment systems, stowage space and business class catering. The Debtor filed for chapter 11 protection on Dec. 24, 2007 (Bankr. D. Del. Case No. 07-11912). The Debtor selected Pachulski Stang Ziehl & Jones LLP and Pillsbury Winthrop Shaw Pittman LLP as its bankruptcy counsels. Arent Fox LLP represents the Official Committee of Unsecured Creditors. The Debtor listed assets between US$10 million and US$50 million and debts between US$50 million and US$100 million when it filed for bankruptcy. MAXJET AIRWAYS: Court OKs Morten Beyer as Valuation Consultants --------------------------------------------------------------- MAXjet Airways Inc. asks the U.S. Bankruptcy Court for the District of Delaware for authority to employ Morten Beyer & Agnew as its expert valuation consultants, nunc pro tunc Jan. 11, 2008. As reported in the Troubled Company Reporter on Feb. 13, 2008, Morten Beyer will work closely with the Debtor and its professionals in providing advise with regard to a valuation of the Debtor's aviation assets. The firm is also expected to provide: a) maintenance adjusted appraisal of aircraft and engines at varying values with market commentary by aircraft type; b) line-by-line appraisal of rotable, repairable, and expendable parts with value type; c) industry analysis on a project-by-project basis, and d) expert witness and advisory support. Morten Beyer will bill the Debtor according to these fixed rates on a per item or per report basis: Project Rate ------- ---- Aircraft Appraisal US$1,353 for the first aircraft of each type and US$270 for each additional aircraft of the same type in the same report Engine Appraisal US$541 for the first engine of each type and US$270 for each additional engine of the same type in the same report Spare Part Appraisal US$4,000 minimum, total cost depending on the number of items and detail of data provided Industry Analysis Quoted by specific assignment General Consulting Principals US$400/hour EVP/SVP/Chief US$350/hour MD/VP/Sr. Associate US$275/hour Director/Associate US$200/hour Manager/Associate US$160/hour Analyst US$115/hour Administrative US$88/hour Expert Witness Consulting Principals/EVP/Chief US$450/hour SVP/VP/MD US$400/hour Other Staff US$325/hour To the best of the Debtor's knowledge, the firm holds no interest adverse to the Debtor and its estates and is "disinterested" as that term defined in Section 101(14) of the Bankruptcy Code. Dulles, Virginia-based MAXjet Airways Inc. -- http://www.maxjet.com/-- is an all-business class, long-haul airline company. It has introduced scheduled services with flights from London Stansted Airport to New York. As of December, 2006, it leased five B767 aircraft. Its customers are both business and leisure travelers. At the airport, its product features check-in facilities located in primary terminals, security and a business class departure lounge and arrivals facility. Its flights features deep-recline seats (170 degree) spaced at a 60 inch pitch, portable entertainment systems, stowage space and business class catering. The Debtor filed for chapter 11 protection on Dec. 24, 2007 (Bankr. D. Del. Case No. 07-11912). The Debtor selected Pachulski Stang Ziehl & Jones LLP and Pillsbury Winthrop Shaw Pittman LLP as its bankruptcy counsels. Arent Fox LLP represents the Official Committee of Unsecured Creditors. The Debtor listed assets between US$10 million and US$50 million and debts between US$50 million and US$100 million when it filed for bankruptcy. MILL REEF: Moody's Lowers Ratings on Six 2005-1 Note Classes ------------------------------------------------------------ Moody's Investors Service downgraded and left on review for further downgrade six classes of notes issued by Mill Reef SCDO 2005-1 Limited. These rating actions are a response to severe credit deterioration in the underlying portfolio. This transaction is a managed synthetic CDO of ABS with a cash flow allocation structure referencing a portfolio which contains 49% US RMBS and 18% US ABS CDOs of the 2005, 2006, and 2007 vintages. In addition, 2.6% of the portfolio by volume (all US ABS CDOs) is currently rated Ca. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Mill Reef SCDO 2005-1 Limited: (1) The US$155,625,000 Class A-1L Notes due 2039 Current Rating: Aa2, on review for downgrade Prior Rating: Aaa, on review for downgrade (2) The US$10,000,000 Class X Notes due 2039 Current Rating: Aa2, on review for downgrade Prior Rating: Aaa, on review for downgrade (3) The US$39,375,000 Class A-2L Notes due 2039 Current Rating: A3, on review for downgrade Prior Rating: Aa2, on review for downgrade (4) The US$30,000,000 Class A-3L Notes due 2039 Current Rating: Baa3, on review for downgrade Prior Rating: A2, on review for downgrade (5) The US$21,000,000 Class B-1L Notes due 2039 Current Rating: B1, on review for downgrade Prior Rating: Baa2, on review for downgrade (6) The EUR7,500,000 Class B-1E Notes due 2039 Current Rating: B1, on review for downgrade Prior Rating: Baa2, on review for downgrade MOBILE STORAGE: Inks US$701.5 Mln Merger Deal with Mobile Mini -------------------------------------------------------------- Mobile Mini, Inc. and Mobile Storage Group, Inc. of Glendale, California have entered into a definitive merger agreement, under which Mobile Storage will merge into Mobile Mini in a transaction valued at approximately US$701.5 million. The transaction will establish the combined company as a global provider of portable storage solutions in the United States and the United Kingdom. Upon consummation of the merger, Mobile Mini will significantly expand its geographic footprint and will be positioned to cover most major markets for portable storage in both the US and the UK. "This represents a highly strategic transaction for Mobile Mini," stated Mobile Mini's Chairman, President and Chief Executive Officer, Steven Bunger, "which substantially increases Mobile Mini's ability to service an expanded customer base, provides the employees of both companies with enhanced career opportunities, and offers our stockholders an opportunity to benefit from a transaction that we believe will be solidly accretive to our earnings in the first full year of the combination." The merged company will include senior executives from both companies. Steve Bunger will serve as Chairman, President and Chief Executive Officer and Larry Trachtenberg will continue as Chief Financial Officer. Doug Waugaman, CEO of Mobile Storage Group, will join Mobile Mini as COO of Integration, reporting directly to Mr. Bunger. Jody Miller, Bill Armstead and Ron Halchishak, senior executives at Mobile Storage Group, will also assume senior roles with the combined organization. "A key goal of this merger is to retain the top sales professionals, branch managers and operating field personnel of the combined organizations, both in the US and the UK, to position Mobile Mini with the most knowledgeable, experienced and motivated employee base in the portable storage industry," Mr. Bunger stated. "This merger is predicated on bringing together the best in class employees of our two organizations and I am excited by the expanded opportunities to be offered to much of our talented employee base," Mr. Waugaman added. Mobile Storage Group is majority owned by the private equity firm Welsh, Carson, Anderson & Stowe, who, together with the other equity holders, through this transaction, will be converting substantially all of their equity ownership of Mobile Storage group into Mobile Mini preferred stock. Following consummation of the merger, two WCAS representatives will be elected to Mobile Mini' Board of Directors. WCAS is one of the largest private equity investors in the US focused on the information & business services and healthcare industries. Since its founding in 1979, WCAS has organized 14 investment partnerships with total capital in excess of US$16 billion. Pursuant to the merger, Mobile Mini will assume approximately US$535.0 million of Mobile Storage Group's outstanding indebtedness and will acquire all outstanding shares of Mobile Storage Group for US$12.5 million in cash and shares of newly issued Mobile Mini convertible preferred stock with a liquidation preference of US$154.0 million. The convertible preferred stock will be convertible into approximately 8.55 million Mobile Mini common shares, representing a conversion price of US$18.00 per Mobile Mini share and resulting in fully diluted ownership in Mobile Mini of approximately 19.8% for Mobile Storage Group stockholders. The preferred stock will be mandatorily convertible into Mobile Mini common stock if, after the first year following the issuance of the preferred stock, Mobile Mini's common stock trades above US$23.00 share for a period of 30 consecutive days. The preferred stock will not have any cash or payment-in-kind dividends, will impose no covenants upon Mobile Mini, and will include an optional redemption feature following the tenth year after the issue date. The merger is expected to generate cost synergies of at least US$25 million on an annualized basis, which are expected to be fully realized by the end of fiscal 2009. The cost synergies are a result of the significant overlap in corporate functions and branch infrastructure. Mobile Mini believes that the combination with Mobile Storage will add 21 new locations in the US and 14 locations in the UK. This combination of new branches as well as proximate locations offers opportunities for both additional growth and substantial cost synergies via branch consolidation. The transaction is expected to be slightly accretive to earnings in 2008 (excluding merger-related expenses), and should generate substantial EPS accretion of 25% or more, over current analyst EPS estimates, in 2009, including the benefit of expected synergies. "As the integration of our companies is executed, we expect to achieve meaningful cost synergies by combining certain overlapping branch locations, consolidating corporate functions and headquarters and reducing certain combined operating expenses, which we estimate will ultimately generate a minimum of US$25 million of savings on an annualized basis," Mr. Bunger stated. "These cost synergies, in combination with an improved revenue growth potential through implementing Mobile Mini's growth model into newly acquired Mobile Storage Group branches, should add to Mobile Mini's future earnings growth." The transaction has been structured to maintain a strong balance sheet with sufficient liquidity after the combination. Pro forma for the acquisition, Mobile Mini estimates that total debt will approximate US$960 million. In 2007, Mobile Mini generated EBITDA of US$133.9 million (excluding stock compensation expense) and Mobile Storage Group generated EBITDA of US$86.1 million (adjusted for certain items and excluding stock compensation expense). With the US$25 million of forecast cost synergies, the adjusted EBITDA for 2007 is approximately US$245.0 million, resulting in pro forma leverage of approximately 3.9x. Going forward, management expects to fund both fleet expansion and debt reduction with cash flow from operations. In addition, Mobile Mini believes it will have excess availability of over US$300 million under its expected US$1.0 billion asset-based revolving credit facility at closing of the transaction. Closing of the transaction is subject to approval by Mobile Mini stockholders, obtaining required governmental approvals, receipt of a new US$1.0 billion asset-based revolving credit facility and customary closing conditions. Mobile Mini has received a fully underwritten commitment from Deutsche Bank AG, Bank of America and JP Morgan for a US$1.0 billion asset-based revolving credit facility to fund the transaction. A special meeting of Mobile Mini stockholders will be scheduled for the purpose of submitting the issuance of the preferred stock and related matters to Mobile Mini's stockholders for approval. No date for the stockholders meeting has been set. Depending on the timing of various disclosure requirements, the stockholder meeting, and regulatory approvals, the transaction is expected to close as early as June 2008. Oppenheimer & Co. Inc. and Deutsche Bank Securities Inc. acted as financial advisors to Mobile Mini, and White & Case LLP acted as legal counsel. Lehman Brothers Inc. acted as financial advisor to Mobile Storage Group and Kirkland & Ellis LLP acted as legal counsel. The company plans to update its 2008 guidance to factor in the Mobile Storage Group merger and related integration, consolidation and other costs around the time of closing. About Mobile Mini Headquartered in Tempe, Arizona, Mobile Mini Inc. (Nasdaq GS: MINI) -- http://www.mobilemini.com/-- provides portable storage solutions through its total fleet of over 165,000 portable storage units and portable offices with 66 branches in U.S., United Kingdom, Canada and The Netherlands. About Mobile Storage Headquartered in Burbank, California, Mobile Storage Group Inc. aka Mobile Services Group Inc. -- http://www.mbilestorage.com/ --provides portable storage in the United States and the United Kingdom. MOBILE STORAGE: Mobile Mini Deal Prompts S&P's Positive Watch ------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Mobile Storage Group Inc., including the 'B+' long-term corporate credit rating, on CreditWatch with positive implications. The rating action is based on the announcement that Mobile Storage has entered into a definitive agreement to be merged into Mobile Mini Inc. (BB/Watch Neg/--), its major competitor in the leasing of portable storage units. "If the transaction is successfully consummated, the combined entity would become the leading provider of portable storage units in the U.S. and U.K," said Standard & Poor's credit analyst Betsy Snyder. "In addition, we expect a combination of the two entities to result in a stronger pro forma financial profile than that of Mobile Storage on a stand-alone basis." Closing of the transaction, in which Mobile Mini will assume approximately $535 million of Mobile Storage's debt, is subject to approval by Mobile Mini stockholders, obtaining government approval, receipt of a new $1 billion asset-based credit facility to fund the transaction, and customary closing conditions. Assuming all are met, the transaction is expected to close as early as June 2008. Standard & Poor's will assess Mobile Storage's business and financial profiles, pro forma for the merger with Mobile Mini, to resolve the CreditWatch. NORTHERN ROCK: Holds First Board Meeting After Nationalization -------------------------------------------------------------- Northern Rock PLC's new executive chairman, Ron Sandler, and the other members of the new Board held their first board meeting following the company having entered into a period of temporary ownership on Feb. 22, 2008. Mr. Sandler and Ann Godbehere have joined Northern Rock's board as the new executive chairman and the new chief financial officer respectively. Mr. Sandler and Ms. Godbehere will work with the bank's existing management team during this transitional period. In addition Philip Remnant, Tom Scholar and Stephen Hester have also jointed the board as non-executive directors, with Mr. Hester filling the role of deputy chairman. Bryan Sanderson, Sir Ian Gibson, David Jones and Paul Thompson have each retired from the Board. Mr. Jones has agreed to continue as part of the management team. Andy Kuipers will remain on the board and will continue as chief executive. Simon Laffin, John Devaney and Laurie Adams will continue as non-executive directors. Michael Queen will be retiring from the board but has agreed to stay on as a non-executive director for three months to help provide continuity. "I know these past months have been a turbulent time for everyone at Northern Rock, both for the staff and its loyal customer base. It is therefore of great importance to me and the new board that as we go forward we create the stability to build a company operating on sound commercial principles that can be returned to the private sector, standing on its own two feet," Ron Sandler commented. On the appointments to the new board, Mr. Sandler said, "This is a combined team of great experience, drawn from both within Northern Rock and outside organizations. As well as ensuring all important continuity, this is a team that will bring new ideas and new ways of working to Northern Rock to the benefit of everyone." The board of Northern Rock noted that the legislation under which all the shares in the company have been acquired by the Treasury has come into effect and the company has moved into a period of temporary public ownership. The government has announced that during this period the company will operate at arm's length and on a commercial basis. The government has stated that this legislation allows 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. Northern Rock will continue to be open for business as usual for its customers and the government's guarantee arrangements remain in place. Depositors' money remains safe and secure. Effect of Transfer Order Share Transfers All the shares in the company have been transferred to the Treasury Solicitor, as nominee of the Treasury, by virtue of the Northern Rock plc Transfer Order 2008, which was made pursuant to the Banking Act 2008 and which came into effect at 00.01a.m. on Feb. 22, 2008. The listing of the company's ordinary and preference shares has now been canceled by the U.K. Listing Authority, trading of such shares on the London Stock Exchange has ceased and all shares have been disabled in CREST. All other rights or entitlements to receive or subscribe for shares in the Company have been extinguished by virtue of the Transfer Order. Changes to Tier 1 Notes If, during the period of temporary public ownership, the Northern Rock would otherwise have been obliged to issue shares under the terms of the GBP200,000,000 7.053% callable perpetual core tier one notes or to holders of the GBP300,000,000 8.399% step-up callable perpetual reserve capital instruments in order to satisfy entitlements to interest payments, the Transfer Order provides that the Treasury has a right to issue a notice the effect of which is that a right to be paid in cash arises or for there to be an issue of further debt by Northern Rock instead. The Northern Rock Foundation The Foundation Shares held by The Northern Rock Foundation have all been converted into and re designated as ordinary shares and are now owned by the Treasury along with all other shares in the Company. The Deed of Covenant with The Northern Rock Foundation has been terminated, but alternative arrangements will be put in place guaranteeing it a minimum income of GBP15 million per year in 2008, 2009 and 2010. Contractual Rights and Obligations The Transfer Order has the effect of modifying certain instruments, to which the company and its subsidiaries are party, to negate certain consequences which may otherwise arise as a result of the Transfer Order. For example, no party is entitled to terminate any arrangement, receive an increased or accelerated payment or decrease or defer any payment pursuant to any arrangement or otherwise amend the terms of any arrangement by virtue of, or in connection with, the Transfer Order. Compensation Arrangements Shareholders who held shares in the company immediately before they were transferred by the Transfer Order, persons whose rights to receive or subscribe for shares in the company were extinguished by the Transfer Order and persons whose contractual rights have been modified as a result of the Transfer Order shall each be entitled to compensation. A draft of the Northern Rock plc Compensation Scheme Order 2008, to be made pursuant to the Banking Act 2008, was laid before Parliament and is available from the Treasury's website at http://www.hm-treasury.gov.uk/. The Compensation Order is expected to come into force shortly. The determination of such compensation shall be made by an independent valuer appointed by the Treasury. In determining compensation, the valuer must assume that all financial assistance provided by the Bank of England or Treasury has been withdrawn and no such assistance would be provided in the future. The valuer must also assume that the Company is unable to continue as a going concern and is in administration. Further announcements relating to the Compensation Order will be made by the Treasury in due course. Employees There will be no change to the employment terms or conditions of any employees as a result of the Transfer Order. Listed Debt Securities The various classes of the Company's listed debt securities have not been acquired under the Transfer Order and their various listings will continue, with the only direct changes to the terms being those set out above in relation to the Tier 1 Notes. The provisions of the Transfer Order relating to contractual rights and obligations summarized above may indirectly affect certain classes of the listed debt securities. Annual Report and Accounts and Annual General Meeting As the shares in the Company are now all owned by the Treasury, the company will not hold an annual general meeting which is open to former shareholders or the general public. In compliance with its obligations as an issuer of listed debt securities and applicable company law, the company will continue to publish its annual financial report. 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 February 20, 2008, 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. In December 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. NOW SHOES: Brings In Administrators from Begbies Traynor -------------------------------------------------------- John A. Lowe and W. John Kelly of Begbies Traynor were appointed joint administrators of Now Shoes Ltd. (Company Number 04078254) on Feb. 14, 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: Now Shoes Ltd. 232 Leicester road Markfield Leicestershire LE67 9RG England Tel: 01530 242 727 PETROLEOS DE VENEZUELA: Asset Freeze to be Extended --------------------------------------------------- A U.K. court granted Exxon Mobil a temporary extension of an order freezing Petroleos de Venezuela SA's US$12-billion assets until a court hearing this week, Bloomberg News reports. John Fordham, Petroleos de Venezuela's legal representative in London, told Bloomberg News that his client didn't object to the extension, which lasts through a court hearing on the company's bid to overturn the order scheduled to start Feb. 27. According to Bloomberg News, the extension of the asset freeze was needed as the initial U.K. court order scheduled a hearing on Feb. 22 for Petroleos de Venezuela to respond. Venezuelan deputy oil minister Bernard Mommer commented to the Associated Press, "For the first time we will have a chance to respond. We''re preparing for the case." About Exxon Mobil Exxon Mobil Corporation operates as a petroleum and petrochemicals company. It primarily engages in the exploration, production, and sale of crude oil and natural gas; and manufacture, transportation, and sale of petroleum products. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * To date, Petroleos de Venezuela SA carries Fitch's BB- long term issuer default rating and local currency long term issuer default rating. Fitch said the ratings outlook was negative. PETROLEOS DE VENEZUELA: Reaches Settlement with Total & Statoil --------------------------------------------------------------- Venezuelan state-owned oil company Petroleos de Venezuela SA has reached a settlement with France's Total and Norway's StatoilHydro, AFX News reports. According to AFX News, Statoil and Total accepted the book price for the assets Petroleos de Venezuela confiscated last year. AFX News that these compensations were accepted: -- US$834 million to Total, and -- US$266 million to Statoil. The report adds that Italy's Eni accepted US$700 million. As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Petroleos de Venezuela SA signed a deal with Eni SpA for compensation for a Venezuelan oil field the government took over in 2006. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * To date, Petroleos de Venezuela SA carries Fitch's BB- long term issuer default rating and local currency long term issuer default rating. Fitch said the ratings outlook was negative. P.S. SURFACING: Appoints KPMG to Administer Assets -------------------------------------------------- Howard Smith and Richard Dixon Fleming of KPMG LLP were appointed joint administrators of P.S. Surfacing Ltd. (Company Number 04936241) on Feb. 15, 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: P.S. Surfacing Ltd. Belle Vue Business Centre Elm Tree Street Wakefield West Yorkshire WF1 5EP England Tel: 01924 820 004 QUEBECOR WORLD: Final Auction Prices of Bonds Reach 41.25% ---------------------------------------------------------- A Credit Event Auction for Quebecor World Inc. took place on Feb. 19, 2008, with 13 participating dealers. The auction was run in accordance with the ISDA 2008 Quebecor CDS Protocol. Markit Group Limited and Creditex Group Inc. acted as official auction administrators. The Credit Event Auction mechanism is designed to ensure orderly and operationally efficient trade settlement for credit derivatives by determining the final cash settlement price for defaulted Quebecor CDS contracts. During the Quebecor Credit Event Auction, major dealers submited orders electronically on the Creditex platform. Markit calculated and verified the auction results. The final price of Quebecor World's bonds is 41.25%. Karen Brettell of Reuters reported that based on the final price, this would mean that the amount of principal the Quebecor bonds recover would be 41.25% of par. "Thus a buyer of protection would be compensated 58.75% the amount of debt insured," Ms. Brettell wrote. The auction results are available at: http://ResearchArchives.com/t/s?2868 The Credit Event Auction process was launched in 2005 by Markit and Creditex in collaboration with ISDA and major credit derivative dealers to facilitate the settlement of credit derivative contracts in the event of a corporate default. 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: Court Agrees Payment of Prepetition Commissions --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York gave Quebecor World Inc. and its affiliates permission to pay accrued prepetition commissions due and owing as of Feb. 1, 2008, to their sales representatives. As reported in the Troubled Company Reporter-Europe on Feb. 20, 2008, Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, related 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. Mr. Canning said that 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. The Debtors intends to provide 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: Various Entities Disclose Stake in Company ---------------------------------------------------------- In separate filings with the United Stated Securities and Exchange Commission, several entities disclosed holding a stake in Quebecor World Inc.: 1. Ronald Gutfleish Ronald Gutfleish disclosed that he may be deemed to beneficially own 7,552,055 subordinate voting shares issued by Quebecor World Inc. Mr. Gutfleish is a managing member of Elm Ridge Capital Management LLC. 2. Avenue Capital, et al. Avenue Capital Management II LP, Avenue Capital Management II GenPar LLC, and Marc Lasry disclosed that each of them may be deemed to beneficially own 5,518,000 subordinate voting shares issued by Quebecor World Inc. On the same day, Avenue Capital, et al., filed an amendment stating that the number of subordinate voting shares each of them may now be deemed to beneficially own is down to 776,000 shares. Marc Lasry is a managing member of Avenue Capital Management II LP, and Avenue Capital Management II GenPar, LLC. Avenue Capital Management II GenPar is the general partner of Avenue Capital Management II LP. 3. Brandes Investment, et al. Brandes Investment Partners LP, Brandes Investment Partners Inc., Brandes Worldwide Holdings LP, Charles Brandes, Glenn Carlson, and Jeffrey Busy disclosed that each of them may be deemed to beneficially own 9,205,888 shares of Quebecor World Inc.'s common stock. Brandes entities' shares represent 10.82% of the 85,079,000 Quebecor World common shares outstanding as of February 1, 2008. They disclaim any direct ownership of the 9,205,888 shares. Brandes Investment Partners LP, is an investment adviser. Brandes Investment Partners Inc., Brandes Worldwide Holdings LP, Mr. Brandes, Mr. Carlson, and Mr. Busy are control persons of the investment adviser. Mr. Brandes is also the president of Brandes Investment Partners Inc. 4. Phillips, Hager & North Investment Management Ltd. Phillips, Hager & North Investment Management Ltd., disclosed that as of Dec. 31, 2007, his company was deemed to beneficially own 105,300 shares of Quebecor World Inc.'s common stock. Phillips Hager's shares represent 0.12% of the 85,079,000 shares of Quebecor World's common stock outstanding as of Feb. 1, 2008. 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. REFCO INC: SEC Sues Ex-CEO Bennett for Orchestrating Fraud ---------------------------------------------------------- The U.S. Securities and Exchange Commission filed on Feb. 19 a civil injunctive action in the United States District Court for the Southern District of New York against Phillip R. Bennett, the former chairman and chief executive officer of Refco Inc. and its corporate predecessor, Refco Group Ltd. The Commission's complaint alleges that Mr. Bennett orchestrated a scheme that periodically concealed hundreds of millions of dollars owed to Refco by a private entity that he controlled. The public revelation of Mr. Bennett's scheme in October 2005, two months after the company's initial public offering of common stock, caused hundreds of millions of dollars in losses to Refco shareholders. The complaint also alleges that Mr. Bennett directed practices that artificially inflated Refco's financial results. As a result, the complaint alleges, Mr. Bennett violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Exchange Act Rules 10b-5, 13b2-1, and 15d 14, and aided and abetted Refco's violations of Sections 13(b)(2)(A), 13(b)(2)(B), and 15(d) of the Exchange Act and Exchange Act Rules 15d-2 and 15d-13. According to the complaint, from at least 1998 to October 2005, Mr. Bennett's scheme periodically concealed debt owed to Refco by Refco Group Holdings, Inc., a non-Refco entity that he controlled. The debt was primarily the result of trading losses and operating expenses that Refco transferred over time to RGHI. Refco utilized a series of short-term loans that temporarily transferred the debt to third parties immediately prior to the ends of Refco fiscal periods. A few days after the fiscal periods ended, the transactions were reversed, and the debt was transferred back to RGHI. The Commission's complaint alleges that Mr. Bennett directed the fiscal period-end transactions and took certain actions to implement them, including executing many of the documents used in those transactions. The Commission's complaint also alleges that Mr. Bennett instituted practices that artificially inflated Refco's reported financial results in 2005. The practices involved Refco recording fictitious interest income and income from sham foreign exchange transactions. The inflation of financial results was undertaken by Mr. Bennett to make Refco more attractive to potential investors. The Commission's complaint further alleges that, in 2005, Refco filed with the Commission and provided to investors registration statements and periodic reports that contained materially false and misleading misstatements and omissions. The filings failed to disclose the debt and the period end transactions, and some of the filings reported income that had been fraudulently inflated. Mr. Bennett signed the registrations statements and periodic filings while knowing, or reckless in not knowing, that the filings were materially false and misleading. Moreover, Mr. Bennett explicitly certified the accuracy of the disclosures and financial statements in the periodic filings. The complaint seeks a permanent injunction enjoining Mr. Bennett from violating Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act, and Exchange Act Rules 10b-5, 13b2-1, and 15d 14, and from aiding and abetting violations of Sections 13(b)(2)(A), 13(b)(2)(B), and 15(d) of the Exchange Act and Exchange Act Rules 15d-2 and 15d-13. The complaint also seeks payment by Mr. Bennett of unjust enrichment that he received as a result of his actions, with prejudgment interest thereon, and imposition of civil money penalties against him pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act. The U.S. Attorney's Office for the Southern District of New York announced February 15, that Mr. Bennett has pleaded guilty to all twenty counts of a superseding indictment previously returned against him and charging him with conspiracy, securities fraud, making false filings with the Commission, wire fraud, making false statements to Refco's auditors, bank fraud, and money laundering, for his actions in connection with the Refco fraud. The Commission acknowledged the assistance and cooperation of the Office of the United States Attorney for the Southern District of New York, the United States Postal Inspection Service, and the Commodity Futures Trading Commission. The Commission's investigation is continuing. 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 USUS$16.5 billion in assets and USUS$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. ROADRUNNERS TRANSPORT: Hires Liquidators from Vantis ---------------------------------------------------- Paul Atkinson and Glyn Mummery of Vantis Business Recovery Services were appointed joint liquidators of Roadrunners Transport Ltd. on Feb. 14 for the creditors' voluntary winding- up proceeding. The joint liquidators can be reached at: Vantis Business Recovery Services 43-45 Butts Green Road Hornchurch Essex RM11 2JX England The company can be reached at: Roadrunners Transport Ltd. Unit 1D Hastingwood Trading Estate Harbet Road Edmonton London N18 3HT England RUTLAND RATED: Moody's Junks Rating on S. 55 Class B-2L Notes ------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade one class of notes issued by Rutland Rated Investments. This rating action is a response to severe credit deterioration in the underlying portfolio. This transaction is a managed synthetic CDO of ABS repacked from Mill Reef SCDO 2005-1 referencing a portfolio which contains 49% US RMBS and 18% US ABS CDOs of the 2005, 2006, and 2007 vintages. In addition, 2.6% of the portfolio by volume (all US ABS CDOs) is currently rated Ca. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating action is: Rutland Rated Investments: (1) The US$22,500,000 Series 55 Class B-2L due 2039 Current Rating: Ca, on review for downgrade Prior Rating: B3, on review for downgrade R W GIBBS: Calls In Liquidators from Tenon Recovery --------------------------------------------------- Nigel Ian Fox and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint liquidators of R W Gibbs Contamination Control Ltd. on Feb. 15 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 SCOTTISH RE: S&P's 'B' Rating Unaffected by New Strategic Focus --------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings and CreditWatch negative status on Scottish Re Group Ltd. (B/Watch Neg/--) and related entities were not affected by the company's announcement of a new strategic focus recognizing its deteriorated financial strength. On Jan. 31, 2008, Standard & Poor's lowered its ratings on Scottish Re and placed them on CreditWatch with negative implications because of the company's continuing exposure to increasing investment losses and meaningful risk of losing some reserve credits secured through Ballantyne Re plc. These concerns are not affected by the company's announcement. As previously stated, Standard & Poor's will resolve the CreditWatch when it completes the process of refining its view of expected losses and assesses the risk of the company incurring loss of reserve credits. If and when the company disposes of certain lines of business, the proceeds would likely provide only a modest offset to the erosion of capital caused by its investments in subprime and Alt-A MBS. In addition, in Standard & Poor's recent action, it noted that the "deterioration in the company's financial condition has severely disrupted Scottish Re's ability to generate new [insurance] business&." This observation anticipated the company's prospective focus on leveraging its non-risk-taking competencies to drive shareholder value. TATA MOTORS: Concludes Meeting with Jaguar & Land Rover Union ------------------------------------------------------------- According to a CNBC-TV 18 report, Tata Motors Limited's meeting with the main trade union of Jaguar and Land Rover is over. CNBC's unnamed sources asserted that the meeting was conclusive. The Troubled Company Reporter-Asia Pacific reported about the meeting on Feb. 8, 2008, which signaled that Tata Motors is nearing a deal with Ford Motor Co. Tata Motors became the front-runner to buy Jaguar and Land Rover when Ford announced on Jan. 3, that it has entered into "focused negotiations at a more detailed level" with the company. Tata Motors outbid Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. The last nuts and bolts are now falling into place, the CNBC report states. CNBC's sources expect a Memorandum of Agreement between Ford and Tata Motors by March 5 or 6. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the TCR-Europe on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. TATA MOTORS: Mandates Banks to Raise US$2.5 Bil., Report Says ------------------------------------------------------------- Tata Motors Ltd. has kick-started the process of raising US$2.5 billion by giving the mandate to various local and foreign banks, the Economic Times reports. According to ET, the list of banks includes Citigroup Inc., JP Morgan Chase & Co., Standard Chartered Plc, BNP Paribas S.A. and the State Bank of India. The amount that will be raised is believed to be used mostly for the acquisition of Ford Motor Co.'s Jaguar and Land Rover units. Merrill Lynch analysts originally evaluated Jaguar and Land Rover at around US$1.5 billion but later consultants estimate it to cost between US$2 billion to US$3 billion, ET relates. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 31, 2008, Tata Motors is closing in on an agreement with Ford's two luxury brands. On Feb. 8, Tata Motors met with the main trade union of the two brands. Tata Motors became the front-runner to buy the two brands when Ford announced on Jan. 3, that it has entered into "focused negotiations at a more detailed level" with the company. Tata Motors outbid Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. A Reuters report on Friday quoted Dave Osborne, national secretary for vehicle building at the Unite union, as saying, "We are confident our members' long-term future is best served by Tata." The Economic Times noted that the fund-raising coincides with the announcement of Ford's British workers' union that its is satisfied with the discussions with Tata Motors over the latter's proposed acquisition of the marquee brands. The entire fund is expected to be raised against the balance sheet of Tata Motors, ET states cites an unnamed banker close to the fund-raising exercise. The debt will therefore have an impact on the balance sheet of Jaguar and Land Rover, the news agency explains. In a Jan. 9 report, TCR-AP said that Tata Motors' bond risk rose to a record. The increase of the risk of Tata Motors defaulting on its bonds was brought about by the concern that it will borrow to fund its acquisition of Jaguar and Land Rover. Standard & Poor's Ratings Services, on Jan. 7, 2008, placed on CreditWatch with negative implications Tata Motors' BB+ ratings. S&P Credit Analyst Anshukant Taneja said that the acquisition of the Ford brands could potentially have a negative impact on the corporate credit ratings on the company, especially if it is heavily funded by debt. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the TCR-Europe on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd. on review for possible downgrade. VIRGIN MEDIA: Appeals Competition Commission's ITV Stake Ruling --------------------------------------------------------------- Virgin Media Inc. filed on Monday, February 25, 2008, an appeal with the Competition Appeal Tribunal requesting a review of the recent conclusions of the Competition Commission and the Secretary of State for Business Enterprise & Regulatory Reform relating to British Sky Broadcasting plc's acquisition of a 17.9% stake in ITV plc. Together with its work in relation to Ofcom's ongoing investigation into the pay TV market, the appeal is an important part of Virgin Media's commitment to fight for a more dynamic and competitive media landscape in the U.K. Virgin Media has consistently argued that BSkyB's actions were intended for the sole purpose of preventing the emergence of a stronger competitor and are against the public interest. The Competition Commission has determined that BSkyB's shareholding confers the ability to exert material influence over ITV's decision-making and that this has significantly compromised ITV's independence. The result is both a substantial lessening of competition and, in Virgin Media's view, an insufficient plurality in the U.K.'s media, notably in relation to the provision of news. While Virgin Media strongly supports the Competition Commission's conclusions that the acquisition has led to a substantial lessening of competition, it is appealing the Competition Commission's recommendation that a reduction of BSkyB's stake in ITV to 7.5% is adequate to address this problem. Virgin Media is also appealing the Competition Commission's conclusions that the acquisition has not materially affected the sufficiency of plurality in the U.K.'s media. BSkyB, together with its leading shareholder News International, and ITV are both very significant providers of news in the U.K. BSkyB's stake in ITV is exactly the kind of scenario that the media plurality provisions of the Enterprise Act 2003 were designed to address. This is the first time that these rules have been tested and Virgin Media believes the Competition Commission has made significant errors in interpreting and applying these rules. If not corrected, this error will undermine the future efficacy and objectives of the public interest regime set out in the Act. About Virgin Media Headquartered in London, England, Virgin Media Inc. (fka NTL Inc.) (NASDAQ: VMED) -- http://virginmedia.com/-- provides broadband, digital television, telephony, content and communications services, reaching over 50% of the U.K. homes and 85% of the U.K. businesses. * * * In November 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on U.K.-based telecommunications provider Virgin Media Inc. and related entities. The ratings were also removed from CreditWatch with negative implications where they were placed on July 3, 2007. The outlook is stable. In August 2007, Moody's Investors Service changed the outlook on the ratings of Virgin Media Inc. to negative from stable. The ratings affected are: Virgin Media Inc.'s Ba3 Corporate Family Rating; Virgin Media Investment Holdings Ltd.'s Ba2 rated Tranches A / B senior secured facility and B2 rated Trance C second lien facility; and Virgin Media Finance plc.'s B2 rated Senior notes. The company carries Moody's Ba3 Probability-of-Default rating. YVONNE PALMER: Names Joint Administrators from PKF -------------------------------------------------- Edward T. Kerr and Ian J. Gould of PKF (UK) LLP were appointed joint administrators of Yvonne Palmer Associates Ltd. (Company Number 01948148) on Feb. 14, 2008. PKF (U.K.) LLP -- http://www.pkf.co.uk/-- specializes in advising the management of developing private and public businesses. Its principal services include assurance & advisory; corporate finance; corporate recovery & insolvency; forensic; management consultancy and taxation. It also offers financial services through its FSA authorized company, PKF Financial Planning Limited. The company can be reached at: Yvonne Palmer Associates Ltd. 27-29 Lister Gate Nottingham Nottinghamshire NG1 7DE England Tel: 0115 958 8577 Fax: 0115 948 4205 * Moody's Take Various Ratings Actions on US$550MM European CDOS ---------------------------------------------------------------- Moody's Investors Service downgraded or placed on review for downgrade US$550 million of European CDOs. The rating actions are a response to credit deterioration of the underlying portfolios, which include significant exposure to CDOs of US ABS and to downgraded US subprime RMBS securities. A total of 20 tranches from five CDOs are affected, with defaults suffered ranging 1.25% to 9% in the individual portfolios. The average exposures of the affected CDOs to US RMBS securities and CDOs of ABS from the second half of 2005 to 2007 are 14.5% and 21% respectively. Moody's will continue to monitor all deals with exposure to US subprime RMBS and will take further actions in respect of all CDOs placed under review for downgrade once the full extent of actual downgrades to 2005 and 2007 US RMBS and ABS CDO vintages becomes known. The rating actions are: Cheyne ABS Investments I PLC: (1) US$56,000,000 Class A-1 Senior Floating Rate Notes due 2045 Current Rating: Aaa, on review for downgrade Prior Rating: Aaa (2) US$23,000,000 Class A-2 Senior Floating Rate Notes due 2045 Current Rating: Aa1, on review for downgrade Prior Rating: Aaa, on review for downgrade (3) US$43,000,000 Class B Deferrable Floating Rate Notes due 2045 Current Rating: A1, on review for downgrade Prior Rating: Aa1, on review for downgrade (4) US$20,000,000 Class C Deferrable Floating Rate Notes due 2045; Current Rating: Baa2, on review for downgrade Prior Rating: Aa3, on review for downgrade (5) US$19,000,000 Class D Deferrable Floating Rate Notes due 2045; Current Rating: Ba2, on review for downgrade Prior Rating: A3, on review for downgrade (6) US$20,000,000 Class P Combination Notes due 2045 Current Rating: A3, on review for downgrade Prior Rating: Aa2, on review for downgrade Menton II CDO PLC: (1) US$40,000,000 Class A1 Secured Floating Rate Credit Linked Notes due 2053 Current Rating: Aaa, on review for downgrade Prior Rating: Aaa (2) US$10,000,000 Class A2 Secured Floating Rate Credit Linked Notes due 2053 Current Rating: Aa2, on review for downgrade Prior Rating: Aaa (3) US$26,000,000 Class B Secured Floating Rate Credit Linked Notes due 2053 Current Rating: Baa3, on review for downgrade Prior Rating: Aa2 (4) US$10,000,000 Class C Secured Floating Rate Credit Linked Notes due 2053 Current Rating: Ca, on review for downgrade Prior Rating: A1, on review for downgrade (5) US$14,000,000 Class D Secured Floating Rate Credit Linked Notes due 2053 Current Rating: C Prior Rating: Baa2, on review for downgrade (6) US$4,500,000 Class E Secured Floating Rate Credit Linked Notes due 2053 Current Rating: C Prior Rating: Ba2, on review for downgrade Menton III CDO PLC: (1) US$54,000,000 Class A-1 Secured Floating Rate Notes due 2057 Current Rating: B3, on review for downgrade Prior Rating: Ba1, on review for downgrade (2) US$15,000,000 Class A-2 Secured Floating Rate Notes due 2057 Current Rating: Caa3, on review for downgrade Prior Rating: Ba2, on review for downgrade (3) US$37,000,000 Class B Secured Floating Rate Notes due 2057 Current Rating: C Prior Rating: Ba2, on review for downgrade (4) US$30,000,000 Class C Secured Floating Rate Notes due 2057 Current Rating: C Prior Rating: Ba3, on review for downgrade (5) US$27,700,000 Class D Secured Floating Rate Notes due 2057 Current Rating: C Prior Rating: B3, on review for downgrade (6) US$19,800,000 Class E Secured Floating Rate Notes due 2057 Current Rating: C Prior Rating: Caa3, on review for downgrade Salisbury International Investments Limited Series 2006-1: (1) The Series 2006-1 US$41,000,000 Class M-2 Secured Floating Rate Portfolio Credit Linked Notes due 2046 Current Rating: B1, on review for downgrade Prior Rating: Ba1, on review for downgrade Salisbury International Investments Limited Series 2006-16: (1) The Series 2006-16 US$41,000,000 Class M-2 Secured Floating Rate Portfolio Credit Linked Notes due 2051, Current Rating: C Prior Rating: B3, on review for downgrade ********* 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 * * *