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 Tuesday, March 4, 2008, Vol. 9, No. 45 Headlines A U S T R I A AIR KERALA: Claims Registration Period Ends March 25 AYDO TRADING: Claims Registration Period Ends April 8 EHMANN + SALLMUTTER: Claims Registration Period Ends March 31 ELEKTRO-PROFI: Claims Registration Period Ends March 17 PADMA GROUP: Claims Registration Period Ends March 17 SCIENTIFIC GAMES: Earns US$16.4 Million in Fourth Quarter 2007 WUS METALLBAU: Claims Registration Period Ends March 10 B E L G I U M CHIQUITA BRANDS: To Hold Annual Shareholders' Meeting on May 22 SOLUTIA EUROPE: S&P Lifts and Then Withdraws Ratings SOLUTIA INC: Can Pay DTE US$773,364 to Cure PrePetition Default SOLUTIA INC: Moody's Assigns B2 Rating on US$400 Mln Facility F I N L A N D FREESTAR TECH: Posts US$4.5 Mil. Net Loss in Qtr. Ended Dec. 31 F R A N C E ENERSYS INC: Holders Agree to Sell 5 Mln Shares to Goldman Sachs PERNOD RICARD: To Reopen Braeval Distillery in July 2008 G E R M A N Y ALM GMBH: Creditors' Meeting Slated for March 14 DEMAPA VERWALTUNGS: Claims Registration Ends March 20 E & S SIEBRAND: Claims Registration Ends March 20 EM BAU: Claims Registration Period Ends March 20 FROM GMBH: Claims Registration Period Ends March 19 H & S SPEDITION: Claims Registration Period Ends March 25 HANSEN-BAU GMBH: Claims Registration Period Ends March 19 HKB TRAUMHAUS: Claims Registration Period Ends March 26 HOHEISEL & BENNER: Claims Registration Period Ends March 26 INIT NETWORKS: Claims Registration Ends March 20 KAYA HEIMBAU: Claims Registration Period Ends March 25 KDV GMBH: Claims Registration Period Ends March 26 LIMIT GMBH: Claims Registration Period Ends March 10 MOLKEREI MIEHE: Claims Registration Period Ends March 20 METALLBAU MEHLICH: Claims Registration Period Ends March 26 METALLVERARBEITUNG WEIHERHAMMER: Claims Filing Ends March 26 MOECKEL FEUERUNGSTECHNIK: Claims Registration Ends March 25 NICK NAME: Claims Registration Period Ends March 25 NORBERT BRANDT: Creditors' Meeting Slated for March 20 SCHULDNERIN BIOCONNECT: Claims Registration Ends March 24 VICTORIA HAUSHALTSMASCHINEN: Claims Period Ends March 10 H U N G A R Y PROPEX INC: Section 341(a) Creditors' Meeting Set for March 11 PROPEX INC: Wants Court Nod on Sale Process of Dalton Property I R E L A N D BALLANTYNE RE: Fitch Holds Ratings on US$300 Million Notes COLTRANE CLO: Fitch Cuts Ratings to "CC" on 4 Classes of Notes WELLMAN INC: Organizational Meeting Scheduled for March 10 WELLMAN INC: Wants to Employ Lazard Freres as Financial Advisor I T A L Y ALITALIA SPA: Hikes Net Debt to EUR1.28 Billion in January 2008 ALITALIA SPA: Air France-KLM to Offer for Part of AZ Servizi MILACRON INC: Dec. 31 Balance Sheet Upside-Down by US$51.1 Mil. K A Z A K H S T A N ARMA INVESTMENT: Creditors Must File Claims by April 4 KOKJAR LLP: Claims Deadline Slated for April 4 LEKO-KAZAKHSTAN LLP: Claims Filing Period Ends April 1 PAVLODARSKAYA PROMYVOCHNO: Creditors' Claims Due on April 4 SAEZ-MARKET LLP: Claims Registration Ends March 28 SK SOVREMENNY: Creditors Must File Claims by March 28 STROYTRANS-ASIA LLP: Claims Deadline Slated for April 4 K Y R G Y Z S T A N KELECHEK PAHTA: Creditors Must File Claims by March 28 PANFILOVSKAYA TSENTRALNAYA: Claims Filing Period Ends April 1 L U X E M B O U R G AMERICAN AXLE: Union Members Rally to Preserve Well-Paying Jobs N E T H E R L A N D S BIOMET INC: Taps Jon Serbousek as President for Orthopedics Unit X5 RETAIL: Names Marina Yanina as Government Relations VP P O R T U G A L MYLAN INC: J. Dore' Joins as Matrix Labs CEO & Managing Director R U S S I A ALLIANCE-3 LLC: Creditors Must File Claims by April 16 BAYKAL LLC: Creditors Must File Claims by March 16 BUILDER OJSC: Court Names K. Garkanov as Insolvency Manager EVROFINANCE MOSNARBANK: Fitch Holds Ratings with Stable Outlook EXPOBANK: Moody's Puts B3 Deposit Ratings Under Review ISAKLINSKAYA OJSC: Court Names E. Kasatkin as Insolvency Manager PSB FINANCE: Fitch Rates US$100 Million 12.5% Notes at B- RUS’ LLC: Creditors Must File Claims by April 16 SARATOV-AGRO-PROM-ENERGO: Creditors Must File Claims by April 16 STAROKULATKINSK-AGRO-TEKH-SNAB: Claims Filing Set March 16 X5 RETAIL: Names Marina Yanina as Government Relations VP S W I T Z E R L A N D BAR VENEZIA: Creditors' Liquidation Claims Due by March 10 DORFZENTRUM WILEN: Creditors' Liquidation Claims Due by March 31 DRIESSEN SERVICES: Creditors' Liquidation Claims Due by March 25 FC FASHION: Creditors' Liquidation Claims Due by March 28 HI HANDELS: Creditors' Liquidation Claims Due by March 10 INCONSULT MANAGEMENT: Zug Court Starts Bankruptcy Proceedings NP LLC: Zug Court Starts Bankruptcy Proceedings ST. GALLER: Creditors' Liquidation Claims Due by March 11 TERRA DIGITAL: Creditors' Liquidation Claims Due by March 18 U K R A I N E AVIKTON 77: Creditors Must File Claims by March 13 CATRAN-MANAGEMENT LLC: Creditors Must File Claims by March 13 ENTERPRISE GOSPODAR: Creditors Must File Claims by March 13 LOGISTIC GROUP: Creditors Must File Claims by March 13 U N I T E D K I N G D O M BAA LTD: Investors Eye Company's Scottish Airports CHRYSLER LLC: Idles Plant in Ontario Due to TRW's Workers Strike CONSTELLATION BRANDS: Completes US$134 Mln Sale of Wine Brands DARCY INDUSTRIES: Brings In Liquidators from KPMG GMAC (U.K.): Fitch Holds Short-Term Issuer Default Rating at B INTELSAT LTD: ViewAfrica Extends Contract to Up Channel Offering MCGRATH PLANT: Appoints Begbies Traynor as Administrators MYATT MUSIC: Brings In Administrators from Vantis NEMUS II: Fitch Holds Rating on GBP1.13 Million Class F Notes NORTHERN ROCK: David Baker Set to Retire in May 2 SOUTH MIDLANDS: Taps Liquidators from Grant Thornton TOTAL MORTGAGE: Calls In Liquidators from KPMG WILLIAM COCHRANE: Taps Joint Administrators from Begbies Traynor * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= AIR KERALA: Claims Registration Period Ends March 25 ---------------------------------------------------- Creditors owed money by LLC Air Kerala (FN 209842t) have until March 25, 2008, to file written proofs of claim to court- appointed estate administrator Alexander Illedits at: Dr. Alexander Illedits Gonzagagasse 14 1010 Vienna Austria Tel: 533 77 04 Fax: 533 77 05 E-mail: office@law-wire.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on April 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 12, 2008 (Bankr. Case No. 4 S 18/08m). AYDO TRADING: Claims Registration Period Ends April 8 ----------------------------------------------------- Creditors owed money by LLC AyDo Trading (FN 272549h) have until April 8, 2008, to file written proofs of claim to court- appointed estate administrator Hubert Just at: Dr. Hubert Just c/o Dr. Erich Bernoegger Hauptplatz 7 4560 Kirchdorf/Krems Austria Tel: 07582/62 0 74 E-mail: kanzlei@hubertjust.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:45 p.m. on April 22, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Steyr Hall 7 Second Floor Steyr Austria Headquartered in Wartberg an der Krems, Austria, the Debtor declared bankruptcy on Feb. 12, 2008 (Bankr. Case No. 14 S 15/08s). Erich Bernoegger represents Dr. Just in the bankruptcy proceedings. EHMANN + SALLMUTTER: Claims Registration Period Ends March 31 ------------------------------------------------------------- Creditors owed money by LLC Ehmann + Sallmutter (FN 211070y) have until March 31, 2008, to file written proofs of claim to court-appointed estate administrator Regina Schedlberger at: Dr. Regina Schedlberger Andritzer Reichsstrasse 42 8045 Graz Austria Tel: 0316/69 51 00 Fax: 0316/69 51 00-9 E-mail: regina.schedlberger@chello.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on April 15, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Hall K Room 205 Second Floor Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Feb. 12, 2008 (Bankr. Case No. 40 S 9/08h). ELEKTRO-PROFI: Claims Registration Period Ends March 17 ------------------------------------------------------- Creditors owed money by LLC Elektro-Profi (FN 141570t) have until March 17, 2008, to file written proofs of claim to court- appointed estate administrator Thomas Humer at: Dr. Thomas Humer Ringstrasse 4 4600 Wels Austria Tel: 07242/47240 Fax: 07242/68650 E-mail: office@hofer-humer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on March 27, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Marchtrenk, Austria, the Debtor declared bankruptcy on Feb. 12, 2008 (Bankr. Case No. 20 S 14/08x). PADMA GROUP: Claims Registration Period Ends March 17 ----------------------------------------------------- Creditors owed money by LLC padma group & textiles (FN 279516d) have until March 17, 2008, to file written proofs of claim to court-appointed estate administrator Peter Heigenhauser at: Dr. Peter Heigenhauser Wiesinger Strasse 3 4820 Bad Ischl Austria Tel: 06132/25581 Fax: 06132/25581-5 E-mail: dr.peter.heigenhauser@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on March 27, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Bad Ischl, Austria, the Debtor declared bankruptcy on Feb. 12, 2008 (Bankr. Case No. 20 S 13/08z). SCIENTIFIC GAMES: Earns US$16.4 Million in Fourth Quarter 2007 -------------------------------------------------------------- Scientific Games Corporation reported fourth quarter 2007 revenues of US$268 million, up 15 percent from US$232.1 million in the fourth quarter of 2006. Net income was US$16.4 million up from net income of US$7.9 million in the fourth quarter of 2006. Non-GAAP adjusted net income excluding a net loss from the start-up in Mexico, Peru lottery disposal costs, employee termination costs, the reversal of purchase accounting reserves and stock compensation expense, was US$25.5 million compared to non-GAAP adjusted net income of US$24 million in the fourth quarter of 2006. EBITDA for the fourth quarter of 2007 was US$73.7 million, up 53 percent from US$48.3 million in the fourth quarter of 2006. Adjusted EBITDA increased 29 percent to US$84.6 million for the fourth quarter of 2007, compared to adjusted EBITDA of US$65.7 million for the fourth quarter of 2006. During the quarter ended Dec. 31, 2007, the company reported a net loss of US$2.8 million from its Mexican operations, a benefit of US$3.9 million from the reversal of purchase accounting reserves and US$6.9 million in charges for stock compensation costs. In addition, following the rationalization of its global Printed Products Group operations in Germany and Peru in the third quarter 2007, the company reported additional disposal costs and asset impairment charges of US$3 million in the fourth quarter, and employee termination costs of US$3.6 million. For the full year ended Dec. 31, 2007, revenues were US$1,046.7 million, compared to US$897.2 million for the full year ended Dec. 31, 2006, an increase of 17 percent. Net income was US$65.4 million compared to US$66.8 million in 2006. Non-GAAP adjusted net income, excluding a net loss from the company's Mexican operations, Peru lottery disposal costs, employee termination costs, the reversal of purchase accounting reserves, asset impairment charges and stock compensation expense, was US$111 million compared to non-GAAP adjusted net income of US$98.8 million for the full year ended Dec. 31, 2006. For the full year ended Dec. 31, 2007, EBITDA increased 28 percent to US$307.5 million, compared to US$239.5 million in 2006. Adjusted EBITDA increased 25 percent to US$340.6 million, compared to US$273 million in 2006. Printed Products Printed Products Group revenue increased by 17 percent overall to US$137.7 million in the fourth quarter of 2007. Printed Product service revenue for the quarter of 2007 was US$127.5 million, 23 percent ahead of the fourth quarter of 2006. Excluding the impact of licensed products, the re-pricing of the Pennsylvania cooperative services program contract and revenues from Oberthur Gaming Technologies (OGT) of US$24.6 million, "same store" sales growth in the quarter was just under 8%. International instant ticket sales, especially in the United Kingdom and Italy, were particularly strong. Licensed product sales, which tend to exhibit far more quarter-to-quarter volatility than core instant tickets sales, declined by US$5.6 million in the fourth quarter of 2007 due primarily to the seasonality of some brands in the fourth quarter 2006. Conversely, the company believes that 2008 promises to be a very strong year for licensed products in general with nearly a 50 percent increase in the total number of licensed games, including Major League Baseball(R), Deal or No Deal(TM) and the World Poker Tour(R) games in particular. Overall margins in the Printed Products Group declined from 45 percent in the fourth quarter of 2006 to 39 percent in the fourth quarter of 2007. However, if the impact of both OGT and phone cards is eliminated from revenue and gross margin, then the resulting overall gross margin for the quarter was 45 percent. As of the end of the fourth quarter of 2007, OGT's annualized San Antonio production of 4.5 billion tickets had been relocated to Alpharetta, Georgia, a consolidation that is expected to yield improved margins throughout 2008. Rationalization of Printed Products operations in Germany and Peru, which was initiated in the third quarter of 2007, is expected to further improve margins in 2008. In the third quarter the company recorded a depreciation and amortization charge of US$26.1 million related to asset write-downs in these operations and in the fourth quarter the company recorded an additional charge of US$6.6 million for associated shutdown and employee termination expenses. Overall, the rationalization of the German and Peru operations negatively impacted 2007 earnings per share by approximately US$0.25, most of which was non-cash. After the close of the fourth quarter, the company announced two important agreements involving the China Sports Lottery. Scientific Games will design, install and operate a national instant ticket network comprising a central monitoring and control system, a national call center, and 90,000 validation terminals, for which it will be paid on the basis of a percentage of retail sales. Sales are expected to begin during the first quarter of 2008 in four of the wealthiest provinces in China. In one of these provinces, Shandong, the company will be providing traditional "cooperative services" support through a joint-venture partnership. The company also is working with China Sports Lottery Printing, Ltd. to establish a state-of-the- art instant ticket production facility in China that is expected to supply tickets to all 30 Sports Lottery operations in China. Additionally, in connection with the company's activities in China, the company has broadened its relationship with REXCAPITAL Financial Holdings Limited, its partner in the Guard Libang joint venture that services the China Welfare Lottery, to include a strategic alliance to pursue other gaming and lottery related opportunities in China. Management intends to discuss the range of activities in China in considerable detail during tomorrow's conference call. Lottery Systems Group Lottery Systems revenue and gross margins for the fourth quarter increased by 21 percent and 31 percent, respectively, year over year, with the largest increase coming in the international market. Lottery Systems international revenue increased by 41 percent to US$30.5 million in the fourth quarter of 2007. A sale of terminals to Golden Casket in Australia was an important contributor to international revenue growth. Overall Lottery Systems margins improved from 43 percent in 2006 to 47 percent in 2007. Notwithstanding these improvements, the Televisa Mexican lottery contract continued to be a significant drag on earnings in 2007. The fourth quarter and full year impacts on the company were approximately US$0.03 and US$0.10, respectively, in earnings per share, including an allocation of interest expense. As the company has previously indicated, it believes that the launch of instant tickets is the key to the eventual turnaround of this venture. At the present time, the company has begun to see meaningful progress in this regard and is cautiously optimistic that there will be a launch of instant tickets in the second half of 2008. Diversified Gaming As previously disclosed at the end of the third quarter, the change in gaming regulations that were introduced in Great Britain in September 2007 continued to have a very positive impact on Global Draw in the fourth quarter, and this has carried over into the first quarter of 2008. Global Draw's "same store" sales were up 17% in the fourth quarter of 2007 versus 2006; in January of this year, Global Draw's average gross win per shop and per terminal were up 40 percent and 20 percent respectively over January 2007. On the strength of this performance, Global Draw was awarded a contract by William Hill PLC to supply a minimum of 548 betting shops with approximately 2,100 new state-of-the-art dual screen Nevada(TM) terminals, which are specifically designed to allow both the legacy B2 and newly introduced B3 games on all terminals. The terminals are being installed during the first quarter of 2008 and should be 100% operational by the beginning of the second quarter. Also during the fourth quarter, Global Draw expanded importantly outside of the U.K. by signing a contract to supply 1,500 multi- game server-based gaming terminals to Corporacion Interamericana de Entretenimiento in Mexico. Given the very high fixed cost nature of this business, the company expects that these additional 3,600 terminals will have very high levels of marginal profitability. Games Media has announced agreements to supply an integrated digital gaming and entertainment solution for commercial distribution with six of the largest public house retailers in the U.K. -- Enterprise Inns, Spirit Group, Orchid Group, Admiral Taverns, Greene King and Marston's -- which together control approximately 16,000 venues representing approximately 30 percent of the total U.K. pub market. Installations took place during October and November 2007 in a total of 63 pub retail outlets, incorporating 275 machines, including gaming and entertainment terminals and digital juke boxes. Performance from all products was in line with management's expectations and ahead of comparable competitive offers, and the company is confident that as it continues to hit target performance levels, the base of machines will continue to expand. Racing-related revenues and gross margin declined slightly in the fourth quarter, reflecting the continued secular decline in racetrack-based attendance and wagering handle. Several important developmental opportunities were completed during the fourth quarter, suggesting that expansion via non-traditional products, markets and distribution channels has the potential to reverse the recent revenue trend. During the fourth quarter the company was awarded a racebook contract by the Oneida Bingo & Casino in Wisconsin, a contract to provide an internet wagering platform and an interactive voice response telephone wagering system for New Jersey Account Wagering LLC and a tote/keno agreement with Loteria Electronica Internacional Dominicana, S.A. throughout the Dominican Republic. In addition, the company was awarded its first contract in Brazil by Comtech Telecommunications Corp. calling initially for three upscale off-track wagering facilities growing potentially to 30 sites by 2009, and potentially to include sports betting as well. Convertible Debentures A market price event did not occur for the quarter ended Dec. 31, 2007, and accordingly, the Convertible Debentures are not convertible during the current quarter ending March 31, 2008. During the fourth quarter of 2007, the average price of the company's common stock exceeded the specified conversion price of US$29.10 of the Convertible Debentures. Because of this, 1,506,960 shares of common stock underlying the Convertible Debentures have been included in the weighted average number of diluted shares for the fourth quarter of 2007. For the full year 2007, the company has included 1,357,207 shares of common stock in its weighted average number of diluted shares. Although the company purchased a hedge in December 2004 to mitigate the potential dilution from the conversion of the Convertible Debenture, the company is precluded from reflecting this hedge in the GAAP weighted average number of diluted shares because the effect would be anti-dilutive. However, to the extent the Convertible Debentures are converted during the term of the hedge, the diluted share amount will decrease because the hedge will offset the dilution from conversion of the Convertible Debentures. About Scientific Games Headquartered in New York City, Scientific Games Corporation (Nasdaq: SGMS) - http://www.scientificgames.com/-- is an integrated supplier of instant tickets, systems and services to lotteries worldwide. The company is a supplier of fixed odds betting terminals and systems, amusement and skill with prize betting terminals, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine and the Netherlands and is a supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries. The company has additional productions and operating facilities located in Austria, Brazil, Peru, Mexico and the United Kingdom. * * * On Jan. 4, 2007, Moody's Investor Services assigned a Ba1 rating to Scientific Games Corp.'s term loan and affirmed its Ba2 Corporate Family Rating. Moody's said the rating outlook is stable. WUS METALLBAU: Claims Registration Period Ends March 10 ------------------------------------------------------- Creditors owed money by LLC Wus Metallbau, Fassadenbau und Schmiede (FN 262264h) have until March 10, 2008, to file written proofs of claim to court-appointed estate administrator Axel Reckenzaun at: Dr. Axel Reckenzaun Annenstrasse 10/1 8020 Graz Austria Tel: 0316/713353 Fax: 0316/713353-30 E-mail: office@boehm-reckenzaun.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 3:40 p.m. on March 27, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 230 Hall L Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Feb. 12, 2008 (Bankr. Case No. 25 S 15/08f). ============= B E L G I U M ============= CHIQUITA BRANDS: To Hold Annual Shareholders' Meeting on May 22 --------------------------------------------------------------- Chiquita Brands International Inc. will hold its Annual Meeting of Shareholders on May 22, 2008, at the Hilton Cincinnati Netherland Plaza. The record date for determining shareholders entitled to vote at the meeting will be April 1, 2008. The company will mail to shareholders of record in mid-April a notice of the meeting and related proxy materials. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Belgium, Columbia, Germany, Panama, Philippines, among others. * * * Chiquita Brands International Inc. continues to carry Moody's Investors Service's B3 long term corporate family and Caa2 senior unsecured debt ratings which were placed on Nov. 6, 2006. The outlook is negative. SOLUTIA EUROPE: S&P Lifts and Then Withdraws Ratings ---------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Belgium-based specialty chemicals group Solutia Europe S.A./N.V. to 'B+' from 'B'. The rating has been equalized with that of parent company Solutia Inc. (Solutia; B+/Stable/NR) following Solutia's successful emergence from Chapter 11 bankruptcy. At the same time, all ratings, including the 'B' short-term corporate credit rating, were removed from CreditWatch, where they were originally placed on Dec. 4, 2007. The outlook is stable. The ratings on SESA were subsequently withdrawn at the company's request. "Concerns that the bankruptcy could have a negative impact on the financial risk profile of SESA have been resolved by Solutia Inc.'s successful emergence from Chapter 11," said Standard & Poor's credit analyst Sophia Dedemadis. Solutia Inc. was able to reach an agreement with lead arrangers of the bank syndicate providing the exit financing, who at one stage had sought to cancel their obligations, to provide Solutia's credit facilities, citing that an adverse change in the credit markets had impaired their ability to syndicate. As part of the exit financing package, the EUR160 million senior secured loan issued by subsidiary Solutia Services International SCA was paid out and cancelled. SOLUTIA INC: Can Pay DTE US$773,364 to Cure PrePetition Default --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved the stipulation between Solutia Inc., and Detroit Edison Company, doing business as DTE Energy. As previously reported, Solutia Inc. and DTE are parties to: -- an energy purchase agreement for the sale and supply of electric power, as amended; -- a general service water agreement; and -- an amended and restated steam services agreement. Solutia wanted to assume the DTE Contracts with a proposed cure amount of US$327,917. DTE objected to Solutia's assumption of the contracts and asserted that US$773,364 was the prepetition amount due and owing by Solutia under the DTE contracts. The parties have agreed that Solutia will pay US$773,364 to cure any and all remaining prepetition defaults under the DTE contracts. Upon approval from the Court of the Stipulation, DTE's objection will be deemed withdrawn, with prejudice, without any further action from the parties. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Moody's Assigns B2 Rating on US$400 Mln Facility ------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to a US$400 million, unsecured bridge facility of Solutia Inc., a company headquartered in St. Louis, Missouri. Moody's also affirmed Soultia's existing ratings and withdrew its rating on a proposed senior unsecured note that will be replaced by the bridge facility. The ratings outlook is stable. The ratings assigned are subject to a complete review by Moody's of the credit facility, term loan and senior note documents and are also subject to the transactions being closed in a manner and with terms that are substantially identical to those that have been shared with Moody's. Issuer: Solutia Inc. Assignments: -- Senior Unsecured Bridge Facility, B2 (LGD5, 70%) Ratings Affirmed: -- Corporate Family Rating, B1 -- Probability of Default Rating, B1 -- Speculative Grade Liquidity Rating, SGL-3 -- Senior Secured Bank Credit Facility, Ba1 (LGD2, 16%) -- Senior Secured Bank Term Loan, B1 (LGD4, 54%) Ratings Withdrawn: -- Senior Unsecured Note, B2 (LGD4, 69%) The B1 corporate family rating reflects the company's initially high leverage and weak credit metrics along with the material uncertainty surrounding its environmental remediation activities upon exiting bankruptcy. An additional concern centers on the high proportion of Solutia's revenue base that is concentrated in low margin commodity businesses and a material percentage of EBITDA that is derived from a single product with concentrated customers. Following the refinancing and exit from bankruptcy, Solutia will be highly leveraged, particularly after adjusting debt for rent and pensions, which adds roughly US$60 million and US$180 million, respectively. Moody's projected coverage for fiscal year 2008 (based on Moody's adjusted debt model), as measured by EBITDA/Interest, is only 2.1 times while projected leverage as measured by adjusted Debt/EBITDA is 5.2 times. In Moody's model, adjusted debt is estimated at slightly above US$1.9 billion and pro forma adjusted debt to book capital would be just above 62% at Dec. 31, 2007. Moody's notes that even with fresh start accounting, tangible net worth is likely to be negative. While Moody's recognizes that good progress has been made in the elimination, classification and/or sharing of environmental, legal and pension liabilities, there remains a noteworthy level of uncertainty as to the ultimate scope of these liabilities, particularly the environmental liabilities. Moody's believes that these environmental liabilities are subject to changing governmental policy and regulations, discovery of unknown conditions, judicial proceedings, method and extent of remediation, existence of other potentially responsible parties and future changes in both measurement and remediation technologies. Moody's also has some concerns over Solutia's business profile as a high percentage of revenues, about 55%, are generated by the relatively low margin (7%-8% EBITDA) integrated nylon business, a sector that is going through a fair amount of turmoil. Moody's also note that a significant percentage of pro forma 2007 EBITDA is derived from a single reasonably stable product line, Crystex(R), that also has a high degree of customer concentration with the bulk of EBITDA being derived from tire manufacturers. Positive factors supporting the ratings include: -- strong geographic, product and operational diversity; -- sizeable market leadership in the markets Solutia serves; -- sizeable revenue base - projected to exceed US$3.5 billion in 2007; -- the reduction in pre-bankruptcy liability exposure in the range of US$1.3 billion; -- improvement in pro forma revenues and EBITDA over the last four years excluding reorganization costs; -- the ability to share on a 50/50 basis with Monsanto environmental liabilities at certain sites if the costs exceed US$325 million. Moody's views management's track record and actions to effectively cut costs and to improve Solutia's business profile during the bankruptcy period as positive factors supporting the ratings. Moody's also believes that the acquisition of Flexsys was a logical and strong strategic fit for the company. Moody's believes that a continued focus on efficiencies and maintaining market share is critical to succeeding in the company's highly competitive markets, which Moody's expects may face some pricing pressures in the face of a potentially weaker global market, particularly in the construction and automotive markets. The Ba1 rating recognizes that the asset-based credit facilities are secured by a first lien on inventory and receivables and a second lien on assets securing the term loan. The B1 rating on the term loan recognizes the high proportion of the term loan in Solutia's capital structure and the limited security provided the first lien on assets not securing the asset-based credit facility and the second lien on inventories and receivables. In Moody's opinion the collateral package for the term loan may not adequately cover the loan in a default scenario. The B2 rating on the unsecured bridge facility reflects their junior position in the capital structure and the prospect of limited protection after the first and second lien lenders have been provided for in a distressed scenario. The speculative grade liquidity SGL-3 rating reflects the company's adequate liquidity and Moody's expectation of reasonable retained cash flow, in excess of US$150 million, for the fiscal year ending 2008. The rating is supported by Solutia's favorable debt maturity profile and flexibility under the financial covenants for the company's asset backed credit facility. A factor limiting the SGL rating is that the only external source of liquidity is the revolving credit facility, although the size has been increased from US$400 million to US$450 million. Moody's anticipates that this facility will initially have modest outstandings in 2008. Revolver borrowings are dictated by a borrowing base formula. Solutia's stable outlook considers the strength of its franchise in terms of its market positions and long-lived customer relationships. If operating performance is weaker than anticipated or material increases in environmental liabilities were to occur, the outlook or rating could turn negative. To the extent that Solutia reduces debt faster than expected, such that debt/EBITDA metrics improve to less than 4.0 times on a permanent basis or if environmental liabilities were deemed to be much improved a positive change in outlook or rating could occur. Solutia, headquartered in St. Louis, Missouri, produces and sells a diverse portfolio of performance materials and specialty chemicals. End markets for Solutia's products include automotive, architectural (residential and commercial), aerospace, process manufacturing, construction, electronic/electrical, and industrial. Net sales for 2007 were US$3.5 billion. Solutia filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in January of 2004 and emerged from bankruptcy on Feb. 28, 2008. ============= F I N L A N D ============= FREESTAR TECH: Posts US$4.5 Mil. Net Loss in Qtr. Ended Dec. 31 --------------------------------------------------------------- FreeStar Technology Corp. recorded a net loss of US$4,568,270 for the second quarter ended Dec. 31, 2007, compared to a net loss of US$3,124,456 for the three months ended Dec. 31, 2006, an increase of US$1,443,814 or approximately 46%. Ciaran Egan, FreeStar's chief financial officer, commented that "approximately US$2,300,000 of this amount consisted of non-cash compensation in the form of stock, stock options, and warrants issued to consultants and employees. We continue to launch new innovative products and expand our geographical market for increased growth opportunities in 2008. We believe that our investment program in our product and sales and marketing programs together with our growing pipelines will drive revenue growth in 2008." Revenue for the three months ended Dec. 31, 2007, was US$1,448,713 compared to US$811,902 for the three months ended Dec. 31, 2006, an increase of US$636,811 or approximately 78%. Revenue consisted of transaction processing and related revenue of US$512,782; consulting services revenue of US$683,862 and hardware and related revenue of US$252,069. FreeStar Technology president and chief executive officer Paul Egan said, "We expect to see continued increased hardware related sales to our expanding customer base, but also recognize increasing revenue streams from annual maintenance fees and service initiation fees. "Our cross border payments processing has now expanded to Spain, Iceland, Denmark, Sweden and the U.K. We are seeing a steady increase in DCC (Dynamic Currency Conversion) Transactions from our partner, Global Refunds. We have successfully deployed terminals in Dominican Republic and see continuing growth in the region. Our International projects are nearing deployment and can expect to see a large increase in processing revenues throughout the remainder of fiscal 2008." Balance Sheet At Dec. 31, 2007, the company's consolidated balance sheet showed US$8,201,305 in total assets, US$3,509,597 in total liabilities, US$407,398 in minority interest, and US$4,284,310 in total stockholders' equity. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$1,945,907 in total current assets available to pay US$3,509,597 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2007, are available for free at http://researcharchives.com/t/s?288f Going Concern Disclaimer As reported in the Troubled Company Reporter on Oct. 4, 2007, New York-based RBSM LLP expressed substantial doubt about FreeStar Technology Corp.'s ability to continue as a going concern after auditing the company's financial statements for the year ended June 30, 2007. The auditing firm said the company is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. About FreeStar Technology Based in Dublin, Ireland, FreeStar Technology Corp. (OTC BB: FSRT) -- http://www.freestartech.com/-- provides electronic payment processing services, including credit and debit card transaction processing, point-of-sale related software applications and other value-added services. The company was incorporated in the State of Nevada. The company also has offices in Helsinki, Finland; Stockholm, Sweden; Geneva, Switzerland; and Santo Domingo, the Dominican Republic. =========== F R A N C E =========== ENERSYS INC: Holders Agree to Sell 5 Mln Shares to Goldman Sachs ---------------------------------------------------------------- EnerSys Inc. disclosed that certain of its stockholders, including affiliates of Metalmark Capital LLC and certain other institutional stockholders, have agreed to sell 5,000,000 shares of its common stock to Goldman Sachs & Co. All net proceeds from the sale of the common stock will be received by the selling stockholders. EnerSys will not receive any of the proceeds. The shares are being sold by the selling stockholders in an at-the-market offering pursuant to an effective shelf registration statement. The copy of the prospectus relating to these securities may be obtained, when available, from: Goldman Sachs & Co. Attn: Prospectus Dept. 85 Broad Street New York, NY 10004 Fax (212) 902-9316 Email prospectus-ny@ny.email.gs.com For more information, contact: Richard Zuidema Executive Vice President, EnerSys P.O. Box 14145 Reading, PA 19612-4145 Tel (800) 538-3627 About EnerSys Inc. Headquartered in Reading, Pennsylvania, EnerSys Inc. (NYSE: ENS) -- http://www.enersys.com/-- manufactures industrial battery through 21 manufacturing and assembly facilities worldwide. The company provides expertise in designing, building, installing and maintaining a comprehensive stored energy solution for industrial applications throughout the world. The company's products and services are focused on two primary markets: Motive Power (North & South America) or (Europe) and Reserve Power (Worldwide), (Aerospace & Defense) or (Speciality Batteries). The company's facilities are located at China, France, Mexico, Germany, and the United Kingdom, among others. * * * Standard & Poor's Ratings Services placed EnerSys Inc.' long term foreign and local issuer credit ratings at 'BB' in August 2004. The ratings still hold to date with a stable outlook. PERNOD RICARD: To Reopen Braeval Distillery in July 2008 -------------------------------------------------------- Pernod Ricard S.A. plans to reopen its Braeval distillery, near Tomintoul, Scotland, in July 2008 to boost its Speyside whisky production, the Scotsman reports. According to the report, Pernod, whose first half profits soared 18% to EUR588 million, opted to reopen the distillery following a surge in demand for its premium whisky brands. The company, the Scotsman relates, intends to install a new mash tun, six new stills and eight new "washbacks" at the Braeval plant, which has lain dormant for the past six years, the Scotsman relates. "Demand for Scotch whisky is at a record high. This latest investment will enable us to meet our growing demand as well as demonstrate our commitment to developing our business in Scotland," Chivas chief executive Christian Porta was quoted by the Scotsman as saying. The expansion plans are yet to submitted to Moray Council, the paper adds. About Pernod Ricard Headquartered in Paris, France, Pernod Ricard -- http://www.pernod-ricard.com/-- produces and distributes spirits and wines. The Company operates in Europe, North America, Central and South America, and the Asia-Pacific region. * * * Pernod Ricard carries Standard & Poor's local and foreign currency ratings of BB+/Stable/B. ============= G E R M A N Y ============= ALM GMBH: Creditors' Meeting Slated for March 14 ------------------------------------------------ The court-appointed insolvency manager for alm GmbH, Dr. Udo Michalsky will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on March 14, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Saarbruecken Meeting Hall 13 First Floor Vopeliusstrasse 2 66280 Sulzbach Germany The Court will also verify the claims set out in the insolvency manager's report at 8:55 a.m. on April 15, 2008 at: The District Court of Saarbruecken Meeting Hall 24 Second Floor Vopeliusstrasse 2 66280 Sulzbach Germany Creditors have until March 25, 2008 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Udo Michalsky Kaiserstrasse 77 66386 St. Ingbert Germany Tel: (06894) 3876 311 Fax: (06894) 382 185 The District Court of Saarbruecken opened bankruptcy proceedings against alm GmbH on Feb. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: alm GmbH Attn: Dr. Hans-Wolfgang Seeliger, Manager Gewerbepark Eschberger Weg Building 10 66121 Saarbruecken Germany DEMAPA VERWALTUNGS: Claims Registration Ends March 20 ----------------------------------------------------- Creditors of DeMaPa Verwaltungs GmbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Thomas Bueckmann. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on April 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Hall C207 Second Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Thomas Bueckmann Kohlenkamp 39 45468 Muelheim an der Ruhr Germany The District Court of Duisburg opened bankruptcy proceedings against DeMaPa Verwaltungs GmbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DeMaPa Verwaltungs GmbH Attn: Nikolaos Patidis, Manager Parsevalstr. 115 45470 Muelheim an der Ruhr Germany E & S SIEBRAND: Claims Registration Ends March 20 ------------------------------------------------- Creditors of E & S Siebrand Bodenbelage GmbH have until March 20, 2008 to register their claims with court-appointed insolvency manager Veit Schwierholz. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on April 22, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Meeting Hall B 405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Veit Schwierholz Heuberg 1 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against E & S Siebrand Bodenbelage GmbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: E & S Siebrand Bodenbelage GmbH Walddoerferstrasse 416 22047 Hamburg Germany EM BAU: Claims Registration Period Ends March 20 ------------------------------------------------ Creditors of EM Bau GmbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Mechthild Bruche. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on April 22, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Nuernberg Meeting Hall 152/I Flaschenhofstr. 35 Nuernberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Mechthild Bruche Stahlstrasse 17 90411 Nuernberg Germany Tel: 0911/951285-0 Fax: 0911/951285-10 The District Court of Nuernberg opened bankruptcy proceedings against EM Bau GmbH on Feb. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EM Bau GmbH Attn: Meesmann und Andreas Bartl, Managers Schweiggerstrasse 19 90478 Nuernberg Germany FROM GMBH: Claims Registration Period Ends March 19 --------------------------------------------------- Creditors of FROM GmbH have until March 19, 2008, to register their claims with court-appointed insolvency manager Dr. Heiner Buss. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on April 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leer Hall 101 Woerde 5 26789 Leer 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. Heiner Buss Hauptstr. 169 26639 Wiesmoor Germany Tel: 04944/1033 Fax: 04944/912035 The District Court of Leer opened bankruptcy proceedings against FROM GmbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FROM GmbH Zinnstrasse 12 26789 Leer Germany Attn: Dirk Hamel, Manager Eschenweg 10 26789 Leer Germany H & S SPEDITION: Claims Registration Period Ends March 25 --------------------------------------------------------- Creditors of H & S Spedition Buschow GmbH have until March 25, 2008, to register their claims with court-appointed insolvency manager Bruno M. Kuebler. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.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 Potsdam Hall 301 Third Floor Nebenstelle Lindenstrasse 6 14467 Potsdam Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bruno M. Kuebler Einemstrasse 24 10785 Berlin Germany The District Court of Potsdam opened bankruptcy proceedings against H & S Spedition Buschow GmbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: H & S Spedition Buschow GmbH Wald 9 14715 Markisch Luch OT Buschow 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 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 Stampfmuellerstrasse 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 HKB TRAUMHAUS: Claims Registration Period Ends March 26 ------------------------------------------------------- Creditors of HKB Traumhaus GmbH have until March 26, 2008, to register their claims with court-appointed insolvency manager Michael Krause. Creditors and other interested parties are encouraged to attend the meeting at 8:10 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 Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Krause Putlitzer Strasse 30 16928 Pritzwalk Germany The District Court of Neuruppin opened bankruptcy proceedings against HKB Traumhaus GmbH on Jan. 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HKB Traumhaus GmbH Attn: Frau Helga Kasemann Ziegeleiweg 4 16727 Oberkramer OT Neu Vehlefanz Germany HOHEISEL & BENNER: Claims Registration Period Ends March 26 ----------------------------------------------------------- Creditors of Hoheisel & Benner Personalmanagement GmbH have until March 26, 2008, to register their claims with court- appointed insolvency manager Stephan Neubauer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.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 Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stephan Neubauer Spitalerstrasse 4 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Hoheisel & Benner Personalmanagement GmbH on Jan. 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hoheisel & Benner Personalmanagement GmbH Oberwerder Damm 6 20539 Hamburg Germany INIT NETWORKS: Claims Registration Ends March 20 ------------------------------------------------ Creditors of init networks gmbH Planungsbuero fuer Computervernetzung have until March 20, 2008, to register their claims with court-appointed insolvency manager Franz-Joachim Sessig. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 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: Franz-Joachim Sessig Fuggerstr. 9 86150 Augsburg Germany The District Court of Augsburg opened bankruptcy proceedings against init networks gmbH Planungsbuero fuer Computervernetzung on Feb. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: init networks gmbH Planungsbuero fuer Computervernetzung Attn: Erich Bauer and Michael Petermann, Manager Muenchener Str. 1 86949 Windach Germany KAYA HEIMBAU: Claims Registration Period Ends March 25 ------------------------------------------------------ Creditors of Kaya Heimbau GmbH have until March 25, 2008, to register their claims with court-appointed insolvency manager Karina Schwarz. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on April 23, 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karina Schwarz Ernst-August-Platz 10 30159 Hannover Germany Tel: 0511 475339-0 Fax: 0511 475339-9 The District Court of Hannover opened bankruptcy proceedings against Kaya Heimbau GmbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kaya Heimbau GmbH Am Hafen 23 30629 Hannover Germany Attn: Nurettin Yavsan, Manager Harburgerstr. 27 29303 Bergen Germany KDV GMBH: Claims Registration Period Ends March 26 -------------------------------------------------- Creditors of KDV GmbH have until March 26, 2008, to register their claims with court-appointed insolvency manager Stephan Michels. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Osnabrueck Hall N 301 Kollegienwall 10 49074 Osnabrueck Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stephan Michels c/o PLUTA Rechtsanwalts GmbH Ludgeristr. 54 48143 Muenster Germany Tel: 0251/162830 Fax: 0251/16283-11 E-mail: muenster@pluta.net The District Court of Osnabrueck opened bankruptcy proceedings against KDV GmbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KDV GmbH Attn: Andreas Kramer, Manager Franz Lenzstr. 6 49084 Osnabrueck Germany LIMIT GMBH: Claims Registration Period Ends March 10 ---------------------------------------------------- The court-appointed insolvency manager for Limit GmbH, Christoph Goergen, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 a.m. on March 10, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Saarbruecken Area Hall 13 First Floor Vopeliusstrasse 2 66280 Sulzbach Germany The Court will also verify the claims set out in the insolvency manager's report at 8:45 a.m. on April 21, 2008, at the same venue. Creditors have until March 26, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Christoph Goergen Beethovenstrasse 13 66606 St. Wendel Germany Tel: (06851) 4066 Fax: (06851) 4068 The District Court of Saarbruecken opened bankruptcy proceedings against Limit GmbH on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Limit GmbH St. Annen-Strasse 18 66606 St Wendel Germany MOLKEREI MIEHE: Claims Registration Period Ends March 20 -------------------------------------------------------- Creditors of Molkerei Miehe Frischdienst GmbH have until March 20, 2008, to register their claims with court-appointed insolvency manager Dr. Martin Moderegger. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on April 22, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Martin Moderegger Schiffgraben 23 30159 Hannover Germany Tel: 0511 763529-0 Fax: 0511 763529-43 The District Court of Hannover opened bankruptcy proceedings against Molkerei Miehe Frischdienst GmbH on Feb. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Molkerei Miehe Frischdienst GmbH Siemensstrasse 3 30916 Isernhagen Germany Attn: Ursula Miehe, Manager C/o Stiemerling Senioren-Residenz Hattorf Gerhart-Hauptmann-Weg 5 37197 Hattorf Germany METALLBAU MEHLICH: Claims Registration Period Ends March 26 ----------------------------------------------------------- Creditors of Metallbau Mehlich GmbH have until March 26, 2008, to register their claims with court-appointed insolvency manager Carsten Morgenstern. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 24 Fuerstenstrasse 21-23 09130 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Carsten Morgenstern Michaelstrasse 71 09116 Chemnitz Germany Tel: (0371) 381770 Fax: (0371) 3817730 E-mail: chemnitz@hww-kanzlei.de The District Court of Chemnitz opened bankruptcy proceedings against Metallbau Mehlich GmbH on Feb. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Metallbau Mehlich GmbH Attn: Frank Strangmueller, Manager Zwoenitzufer 9 09125 Chemnitz Germany METALLVERARBEITUNG WEIHERHAMMER: Claims Filing Ends March 26 ------------------------------------------------------------ Creditors of Metallverarbeitung Weiherhammer Weigend GmbH have until March 26, 2008, to register their claims with court- appointed insolvency manager Christian Adolf. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on May 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Weiden Room 219/II Ledererstrasse 9 92637 i.d.OPf. Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christian Adolf Stahlstrasse 17 90411 Nuremberg Germany Tel: 0911 / 951285-0 Fax: 0911 / 951285-10 The District Court of Weiden opened bankruptcy proceedings against Metallverarbeitung Weiherhammer Weigend GmbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Metallverarbeitung Weiherhammer Weigend GmbH Attn: Weigend Horst, Manager Parksteiner Weg 15 92655 Grafenwoehr-Huetten Germany MOECKEL FEUERUNGSTECHNIK: Claims Registration Ends March 25 ----------------------------------------------------------- Creditors of Moeckel Feuerungstechnik fuer Hochgeschwindigkeitsluftreaktoren GmbH have until March 25, 2008, to register their claims with court-appointed insolvency manager Robert Wartenberg. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on April 16, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bamberg Meeting Hall 317 Synagogenplatz 1 96047 Bamberg 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: Robert Wartenberg Friedrichstrasse 15 96047 Bamberg Germany Tel: 0951/29743-0 Fax: 0951/29743-29 The District Court of Bamberg opened bankruptcy proceedings against Moeckel Feuerungstechnik fuer Hochgeschwindigkeitsluftreaktoren GmbH on Feb. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Moeckel Feuerungstechnik fuer Hochgeschwindigkeitsluftreaktoren GmbH In der Au 5 96154 Burgwindheim Germany NICK NAME: Claims Registration Period Ends March 25 --------------------------------------------------- Creditors of Nick Name Fashion GmbH Woman Sportswear & Designer Mode have until March 25, 2008, to register their claims with court-appointed insolvency manager Frank Imberger. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on May 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 Bochum Hall A29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum 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: Frank Imberger Huestrasse 34 44787 Bochum Germany The District Court of Bochum opened bankruptcy proceedings against Nick Name Fashion GmbH Woman Sportswear & Designer Mode on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Nick Name Fashion GmbH Woman Sportswear & Designer Mode Huestr. 17- 19 44787 Bochum Germany NORBERT BRANDT: Creditors' Meeting Slated for March 20 ------------------------------------------------------ The court-appointed insolvency manager for Norbert Brandt Malereibetrieb GmbH, Susanne Oelbermann will present her first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m. on March 20, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Old Building Hall 50 Domsheide 16 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 10:30 a.m. on May 8, 2008 at: The District Court of Bremen New Building Hall 115 Ostertorstr. 25-31 28195 Bremen Germany Creditors have until March 25, 2008 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Susanne Oelbermann Ostertorsteinweg 74/75 28203 Bremen Germany Tel: 792570 Fax: 7925757 The District Court of Bremen opened bankruptcy proceedings against Norbert Brandt Malereibetrieb GmbH on Feb. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Norbert Brandt Malereibetrieb GmbH Muenchener Str. 7 28215 Bremen Germany Attn: Norbert Brandt, Manager Osterdeich 144 28205 Bremen Germany SCHULDNERIN BIOCONNECT: Claims Registration Ends March 24 --------------------------------------------------------- Creditors of Schuldnerin BioConnect Grafts & Implants GmbH & Co KG have until March 24, 2008 to register their claims with court-appointed insolvency manager Bardo M. Sigwart. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 23, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bingen am Rhein Hall 9 Mainzer Strasse 52 55411 Bingen am Rhein 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: Bardo M. Sigwart Ahornweg 12 55218 Ingelheim Germany Tel: 06132/88949 Fax: 06132/896498 The District Court of Bingen am Rhein opened bankruptcy proceedings against Schuldnerin BioConnect Grafts & Implants GmbH & Co KG on Feb. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schuldnerin BioConnect Grafts & Implants GmbH & Co KG Mainzer Str. 346 55411 Bingen am Rhein Germany Attn: Richard Donaca, Manager Heinrich-Becker-Str. 19 55411 Bingen/Rhein Germany VICTORIA HAUSHALTSMASCHINEN: Claims Period Ends March 10 -------------------------------------------------------- Creditors of Victoria Haushaltsmaschinen Vertriebsgesellschaft mbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Hans-Peter Burghardt. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Detmold Meeting Room 12 Ground Floor Gerichtsstr. 6 32756 Detmold Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Peter Burghardt Bunsenstr. 3 32052 Herford Germany The District Court of Detmold opened bankruptcy proceedings against Victoria Haushaltsmaschinen Vertriebsgesellschaft mbH on DATE. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Victoria Haushaltsmaschinen Vertriebsgesellschaft mbH Attn: Michael Delker Lemgo und Lars Kinkeldey Steinheim, Managers Max-Planck-Str. 62-64 32107 Bad Salzuflen Germany ============= H U N G A R Y ============= PROPEX INC: Section 341(a) Creditors' Meeting Set for March 11 -------------------------------------------------------------- Richard F. Clippard, the U.S. Trustee for Region 8, will convene a meeting of creditors of Propex, Inc., and its debtor- affiliates on Tuesday, March 11, 2008, at 10:00 a.m. prevailing Eastern Time, at the U.S. Bankruptcy Court, Basement Room 18, 31 East 11th Street, Chattanooga, Tennessee. The meeting may be continued until April 8, 2008, and is expected to conclude after the filing of the Debtors' Schedules and Statements of Financial Affairs. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in the Debtors' bankruptcy cases. The Section 341 meeting in the Debtors' cases was originally set for March 4. Attendance by the Debtors' creditors at the meeting is welcome, but not required. The Sec. 341(a) meeting offers the creditors a one-time opportunity to examine the Debtors' representative under oath about the Debtors' financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Wants Court Nod on Sale Process of Dalton Property -------------------------------------------------------------- Propex Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Tennessee to: (a) after an initial and interim hearing, approve the proposed auction and sale process for a proposed Dalton Property sale; (b) authorize them to modify and assume an Auction Listing Contract with Potts Brothers; (c) after a final hearing, authorize the sale of the Dalton Property to the highest bidder; (d) allow them to pay a real estate commission to Potts Brothers in the event the Dalton Property is successfully consummated; and (e) rule that a sale arising from the proposed sale process be deemed to be exempt from any sales or transfer taxes. The Debtors own a certain real property located at 821-835 Shugart Road, in Dalton, Whitfield County, Georgia. The Dalton Property is comprised of approximately 12.5 acres of real property, where three industrial buildings that were formerly used by the Debtors as a warehousing and distribution center are located. In early 2007, the Debtors determined that the Dalton Property is not necessary or beneficial to their business and operations. Thereafter, they ceased operations at the Dalton Property, and since then, the property has been largely unused and vacant. The Debtors though currently store a small amount of inventory at the Dalton Premises. Mark W. Wege, Esq., at King & Spalding, LLP, in Houston, Texas, asserts that a sale of the Dalton Property would permit the Debtors to monetize the asset for distribution to creditors and would facilitate a successful reorganization. The Debtors believe that a sale of the Dalton Property would yield significant benefits for their creditors and estates. Potts Brothers Contract In connection with their efforts to sell the Dalton Property to the highest bidder, the Debtors entered into an auction listing contract with Potts Brothers Land and Auction, LLC, on Sept. 28, 2007. Potts Brothers agreed to "provide necessary auction personnel, labor, sales information, plats, property packages, photos and signs" related to the auction of the Dalton Property. In compensation for its efforts, the parties agreed that Potts Brothers would receive an 8% "buyer's premium" from the proceeds of the auction sale. In the event of a "No Sale," the Debtors would reimburse Potts Brothers for advertising costs and any costs related to surveying the Dalton Property. Potts Brothers then advertised and marketed the Dalton Property for a Jan. 31, 2008 auction pursuant to an advertising and marketing plan it agreed upon with the Debtors. As a result of those marketing efforts, 11 potential buyers expressed interest in the Dalton Property, with eight of those potential buyers conducting some preliminary due diligence with respect to the Property. However, prior to the scheduled Auction, the Debtors filed for bankruptcy protection and instructed Potts Brothers to cancel the January 31 Auction and to temporarily cease its advertising and marketing efforts pending further instructions from the Court. Mr. Wege states that the Auction Listing Contract currently sets March 1, 2008 as the "outside date" for closing the sale of the Dalton Property to the successful bidder at auction. Because the Debtors' proposed sale process contemplates a Closing Date after March 1, 2008, the Debtors and Potts Brothers desire for the outside date to be amended to June 30, 2008. This amendment should ensure that the sale of the Dalton Property will be closed before the outside date under the Auction Listing Contract. Proposed Sale Process To fully maximize the value to be realized from the proposed sale, the Debtors developed a process for auctioning the Dalton Property. The Debtors seek to sell and transfer the Dalton Property to a prevailing bidder, on an "as is" and "where is" basis. Potts Brothers will implement a marketing process for the sale of the Dalton Property until the Auction date. Potts Brothers will conduct an auction with respect to the sale of the Dalton Property on May 16, 2008, at 10:00 a.m. The Dalton Property has been divided into three tracts pursuant to a survey conducted by Allied Surveying Inc. in October 2007 at the behest of Potts Brothers and the Debtors. * At the Auction, the Potts Brothers will first offer for bidding each of the three separate tracts on an individual basis. * After Potts Brothers determines the highest or best bid for each of the three individual tracts, it will offer for bidding the three tracts together. * After the bidding is complete for the three tracts together, Potts Brothers will determine, subject to Bankruptcy Court approval, the bid or combination of bids for the Dalton Property that represent the highest or best offer for the Dalton Property and the determination will be announced by Potts Brothers at the Auction, together with the final bid amount inclusive of the 8% "buyer's premium" covering Potts Brothers' commission. * On the day of the Auction, each party submitting a Prevailing Bid will pay by cashiers' or certified check a deposit equal to 10% of the amount of its Prevailing Bid. * All bidding for the Dalton Property will be concluded at the Auction and there will be no further bidding at the Sale Hearing. The Debtors propose that the Auction will be conducted as a "reserve auction." In the event that no bid or combination of bids are received at the Auction that are satisfactory to the Debtors in their sole and absolute discretion, Potts Brothers will announce that there is no successful bidder for the Dalton Property and no Prevailing Bid will be presented to the Court. If the Debtors select a Prevailing Bid or Bids at the Auction, within one day of completion of the Auction, the Debtors will (a) file a notice with the Court setting forth the identity of each Prevailing Bidder and the amount of each Prevailing Bid, and (b) serve the Bid Notice on the parties on the master service list in the case. Prior to a sale hearing, the Debtors will provide the Official Committee of Unsecured Creditors with information made available to it at the Auction regarding the Prevailing Bidders, and will confer and consult with the Creditors Committee regarding the Prevailing Bids after the Debtors' acceptances. The Debtors further ask the Court to set a hearing on May 21, 2008, at 9:00 a.m. local time in Chattanooga, Tennessee, to consider approval of the Dalton Property sale. The Debtors intend to present the Prevailing Bid or Bids for approval at the Sale Hearing. The Debtors will be deemed to have accepted a bid only when that bid has been approved by the Court at the Sale Hearing. Upon the failure to consummate a sale of the Dalton Property after the Sale Hearing because of the occurrence of a breach or default under the terms of the Prevailing Bid: (1) the next highest or otherwise best bid, as disclosed at the Sale Hearing, will be deemed the Prevailing Bid without further Court order, and the parties will be authorized and directed to consummate the transaction contemplated by the backup Prevailing Bid; and (2) the Debtors will be entitled to retain the defaulting bidder's deposit as liquidated damages. At all times during the Proposed Sale Process, the Debtors seek to retain full discretion and right to determine, in their sole discretion, which bid or bids constitute the highest or otherwise best offer for the purchase of the Dalton Property, and which bid or bids should be selected as Prevailing Bid or Bids, if any, all subject to final approval by the Court. The Debtors reserve their rights to, at any time before the entry of a Court order approving a Prevailing Bid, reject any bid that they determine is (i) inadequate or insufficient, (ii) contrary to the requirements of the Bankruptcy Code or the Proposed Sale Process, or (iii) contrary to the best interests of their estates and creditors. The Debtors propose that all closings related to the sale of the Dalton Property will take place no later than 30 days after the Court approves the sale. About Propex Inc. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= I R E L A N D ============= BALLANTYNE RE: Fitch Holds Ratings on US$300 Million Notes ---------------------------------------------------------- Fitch Ratings affirmed the ratings of Ballantyne Re Plc as: -- US$250,000,000 class A-1 floating-rate notes at 'BB'; -- US$10,000,000 class B-1 subordinated notes at 'B'; -- US$40,000,000 class B-2 subordinated floating-rate notes at 'B'. Ballantyne Re holds significant amounts of subprime residential asset- and mortgage-backed (ABS/RMBS) securities in the asset portfolios supporting its reserves. These assets have experienced material mark-to-market declines, which previously resulted in the deferral and accrual of interest on the class B- 1 and B-2 notes and a substantial write-down of the accrued interest and principal of Ballantyne Re's class C notes. Fitch notes that the rate of decline in the market value of residential ABS/RMBS has slowed in recent months and remains within the range Fitch anticipated when the Ballantyne Re securities were last reviewed in December 2007. Fitch continues to be concerned that the life insurance reserves on Ballantyne Re's block of business have not yet reached their peak. If the market values of Ballantyne Re's assets continue to decline as its reserves continue to grow, there is increasing potential that funds may not be available for payment of interest to the class A-1 notes. The 'AAA' ratings of Ballantyne Re's class A-2 floating-rate guaranteed notes series B are not affected. The 'AA' ratings of Ballantyne Re's class A-2 series A and its A-3 floating-rate guaranteed notes are not affected and remain on Rating Watch Negative. Those ratings are linked to the financial strength of the relevant financial guarantors. Ballantyne Re is a special purpose public limited company incorporated and registered in Ireland. The company was established for the limited purpose of entering into a reinsurance agreement with Scottish Re (US) Inc., and conducting activities related to the notes' issuance. Under the reinsurance agreement, SRUS ceded a block of business to Ballantyne Re. Ballantyne Re issued the notes to finance excess reserve requirements under Regulation XXX for the ceded block of business. COLTRANE CLO: Fitch Cuts Ratings to "CC" on 4 Classes of Notes -------------------------------------------------------------- Fitch Ratings has downgraded 4 classes of notes issued by Coltrane CLO p.l.c. All classes remain on Rating Watch Negative by Fitch. These rating actions are effective immediately: -- EUR26,000,000 class B notes to 'CC' from 'CCC'; -- EUR45,000,000 class C notes to 'CC' from 'CCC'; -- EUR1,750,000 class D-1 notes to 'CC' from 'CCC'; -- EUR2,000,000 class D-2 notes to 'CC' from 'CCC'. On Feb. 25, 2008, Fitch received notice that Coltrane CLO p.l.c. had entered into an Event of Default as a result of a Threshold Value Event which remained uncured for five business days. Fitch has not received confirmation that the Controlling Class or the Trustee plan to liquidate the underlying loan collateral in the immediate near term. In the event that the Controlling Class or the Trustee chooses to liquidate the underlying loan collateral, subsequent rating action may be taken. Of note, since the last rating action on Feb. 20, 2008 in which Fitch downgraded 24 classes from nine total rate of return collateralized loan obligations, loan prices in the secondary market, as reported by the Loan Syndications and Trading Association, have remained relatively stable, slightly increasing to 86.84 as of Feb. 26, 2008 from 86.27 as of Feb. 15, 2008. As a result, the cushions in the transactions which have not yet breached their TRS termination or liquidation triggers remain relatively stable. Also, Fitch has confirmed that three transactions have enacted amendments or entered into agreements outside of the transaction to avoid breaching a termination trigger, or to prevent a liquidation of the portfolio in the case where a termination trigger has been breached. WELLMAN INC: Organizational Meeting Scheduled for March 10 ---------------------------------------------------------- Diana G. Adams, the U.S. Trustee for Region 2, has scheduled an organizational meeting of creditors in the Chapter 11 cases of Wellman, Inc., and its debtor-affiliates, on March 10, 2008, 1:00 p.m. at the U.S. Trustee's Meeting Room, 80 Broad Street, 4th floor, in New York City. The sole purpose of the meeting will be to form a committee or committees of creditors in the Debtors' case. The meeting is not a meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. Headquartered in Fort Mill, South Carolina, Wellman Inc. -- http://www.wellmaninc.com/-- manufactures and markets 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. The company and its debtor-affiliates filed for Chapter 11 protection on Feb. 22, 2008 (Bankr. S.D. N.Y. Case No. 08- 10595). Jonathan S. Henes, Esq., at Kirkland & Ellis, LLP, in New York City, represents the Debtors. Wellman Inc., in its bankruptcy petition, listed total assets of US$124,277,177 and total liabilities of US$600,084,885, as of Dec. 31, 2007, on a stand-alone basis. Debtor-affiliate ALG, Inc., listed assets between US$500 million and US$1 billion on a stand-alone basis at the time of the bankruptcy filing. Debtor-affiliates Fiber Industries Inc., Prince Inc., and Wellman of Mississippi Inc., listed assets between US$100 million and US$500 million at the time of their bankruptcy filings. On a consolidated basis, Wellman Inc., and its debtor-affiliates listed US$498,867,323 in assets and US$684,221,655 in liabilities as of Jan. 31, 2008. (Wellman Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) WELLMAN INC: Wants to Employ Lazard Freres as Financial Advisor --------------------------------------------------------------- Wellman Inc. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Lazard Freres & Co. LLC, as their investment bankers and financial advisors. The Debtors selected Lazard because of its extensive experience in providing high quality financial advisory and investment banking services to debtors and creditors in Chapter 11 cases and other restructuring. The firm is also familiar with the Debtors' financial affairs, debt structure, operations and related matters as a result of the prepetition work performed on behalf of the Debtors. As investment bankers and financial advisors, Lazard is expected to: (a) review and analyze the Debtors' business, operations and financial projections; (b) evaluate the Debtors' potential debt capacity in light of its projected cash flows; (c) assist in determining a capital structure for the Debtors; (d) assist in the determination of a range of values for the Debtors on a going concern basis; (e) advise the Debtors on tactics and strategies for negotiating with the stakeholders; (f) rendering financial advice and participate in meetings or negotiations with the stakeholders, rating agencies or