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 Thursday, March 6, 2008, Vol. 9, No. 47 Headlines B E L G I U M SOLUTIA INC: Posts US$208 Mln Net Loss for Year Ended Dec. 31 SOLUTIA INC: Provides Status of Adversary Proceedings SOLUTIA INC: DuPont Disputes Need to Reexamine BDO's Report URS CORP: Earns US$132 Million in Fiscal Year Ended December 28 D E N M A R K NORTEL NETWORKS: Posts US$844MM Net Loss in Fourth Quarter 2007 F R A N C E DELPHI CORP: Court Extends Lease Decision Deadline to March 31 DELPHI CORP: Court Extends Deadline to Remove Civil Actions DELPHI CORP: Shareholder Settlement Hearing Set for April 29 MYLAN INC: Reports Revenues of US$1.16BB Quarter Ended Dec. 31 PRIDE INTERNATIONAL: Earns US$784.3 Million in 2007 PRIDE INTERNATIONAL: Uncovers Evidence of Bribery RHODIA SA: Earns EUR129 Million for Year Ended December 31 TEMBEC INC: Court Approves Plan of Arrangement Under CBCA TEMBEC INC: Completes Recapitalization; New Shares Listed on TSX TEMBEC INC: Unit’s Senior Notes Gets S&P's D Debt Issue Rating G E R M A N Y AIRPOINT GMBH: Creditors Must File Claims by March 31 AWVG WOHNUNGSVERWALTUNGSGESELLSCHAFT: Claims Due March 31 CAFE-RESTAURANT BREITENBERG: Claims Registration Ends March 28 CB MEZZCAP: Company No. 34 Files for Insolvency CITYCOM IMMOBILIEN: Claims Registration Period Ends March 28 CLAUSING GMBH: Claims Registration Period Ends March 28 COMDAX24 GMBH: Claims Registration Period Ends March 28 CUCINA LEGERE: Claims Registration Period Ends March 28 FLAGGEN & WERBUNG: Creditors Must File Claims by March 31 FR. NIEBURG: Claims Registration Period Ends March 28 FULLCAN-VERWALTUNGSGESELLSCHAFT: Claims Period Ends March 18 FULLTIME GMBH: Claims Registration Period Ends March 28 GASTSTATTE KARTOFFELHAUS: Creditors' Meeting Slated for March 20 GBT GLOBAL: Creditors' Meeting Slated for March 20 GECO GESELLSCHAFT: Creditors Must File Claims by March 31 GRUNKE HOTEL: Creditors' Meeting Slated for March 20 JPL POWER: Creditors Must File Claims by March 31 K. KELLER GMBH: Claims Registration Period Ends March 22 KULTUR- UND WEGEBAU: Claims Registration Ends March 30 MEDAUS GMBH: Claims Registration Period Ends March 22 NORBERT PUETZ: Claims Registration Period Ends March 28 NUSSER GMBH: Creditors Must File Claims by March 31 POLYPORE INTERNATIONAL: Buys Microporous for US$76 Million PROSIEBENSAT.1 MEDIA: To Buy Back Up to 1.127 Million Shares RICHTER BAU: Claims Registration Period Ends March 28 SALESMAN ADVANCED: Claims Registration Ends March 29 SOUND & VISION: Claims Registration Period Ends March 28 SYSTECO GMBH: Claims Registration Period Ends March 28 TANKSTORE GMBH: Claims Registration Period Ends March 20 TAXI STREHLOW: Claims Registration Ends March 31 WEBER BETONWERK: Claims Registration Period Ends March 20 I T A L Y ALITALIA SPA: State Council Nullifies Volare Group Takeover DANA CORP: Allowed Unsecured Claims Total US$2 Billion FIAT SPA: Delta Model Predicted to Raise Sales by Twenty Percent GOODYEAR TIRE: Redeems US$650 Million Senior Notes Due 2011 GOODYEAR TIRE: Fitch Lifts Issuer Default Rating to BB- HUGHES NETWORK: Net Income Up 161% to US$50 Million in 2007 K A Z A K H S T A N AERODINAMIKA LLP: Creditors Must File Claims by April 1 AKTSIYA-VYMPEL LLP: Claims Deadline Slated for March 28 JOSALY LLP: Claims Filing Period Ends April 1 MOBIL STROY: Creditors' Claims Due on April 4 SISTEMA TECHNIC: Claims Registration Ends March 28 K Y R G Y Z S T A N ALFA MOTORS: Creditors Must File Claims by March 28 AMAN OIL: Claims Filing Period Ends March 25 L U X E M B O U R G AGILENT TECH: To Buy TILL Photonics; Closes Colloidal Purchase P O L A N D AMERICAN AXLE: Work Stoppage of UAW Members Still in Effect SCO GROUP: Plan Proposed to Pay All Creditors in Full SCO GROUP: Disclosure Statement Hearing Set For April 2 P O R T U G A L BEARINGPOINT INC: Bags US$115 Million Contract from U.S. Army R U S S I A AKTAMYR OJSC: Bashkortostan Bankruptcy Hearing Slated for May 19 COMPANION CJSC: Creditors Must File Claims by April 16 COMSTAR-UNITED: Offering RUR36 Mln Bonds to Replace Unit's Issue COMSTAR-UNITED: Ukraine Unit Launches IP-TV Service MELKORM OJSC: Creditors Must File Claims by April 16 SAYANY-INVEST M: Krasnoyarsk Court Hearing Slated for May 19 SHEMAKHA CJSC: Court Names M. Lepin as Insolvency Manager TATA MOTORS: Likely to Close Sale Deal with Ford in 2nd Qtr. TIKHOMIROVSKOE LLC: Creditors Must File Claims by April 16 TMK: 2007 2nd Half Profitability Hit by PQF Mill Installation VERSO LLC: Creditors Must File Claims by April 16 VOLGOTANKER OAO: Moscow Court Declares Bankruptcy ZARYA OJSC: Creditors Must File Claims by April 16 U N I T E D K I N G D O M ACTUANT CORP: Acquires Superior Plant Services for US$57 Million ARQUEST LTD: Creditors' Meeting Slated for March 13 BLENDWORTH WINDOWS: Taps Liquidators from Tenon Recovery CHRYSLER LLC: Corrects Erroneously Reported US$2.7 Billion Loss CITY HI: Brings In Liquidators from Moore Stephens CLOROX COMPANY: Prices US$500 Mln Offering of 5% Senior Notes DUDLEY ENGINEERING: Calls In Liquidators from Moore Stephens DURA AUTOMOTIVE: Court Approves 2008 Annual Bonus Plan DURA AUTOMOTIVE: Court Approves US$2M Nyloncraft Settlement Pact EMI GROUP: Announces Senior Appointments to Key Units EXCLUSIVE DISTRIBUTION: Hires Liquidators from Vantis FKI PLC: Melrose Increases Indicative Offer to 85 Pence a Share GENERAL MOTORS: S&P Says AAM Strike Won't Affect Ratings KABASSA LTD: Appoints Liquidator from Mazars MOLSONS INTERIORS: Joint Liquidators Take Over Operations NORTHERN ROCK: FSA Head Admits Flaw in Supervision of Company PETROLEOS DE VENEZUELA: Exxon Wants Freeze Order Upheld PETROLEOS DE VENEZUELA: Eni to Invest Up to US$20MM in Junin 5 QUEBECOR WORLD: Creditors' Committee Taps Mesirow as Advisor QUEBECOR WORLD: Creditors' Panel Wants Jefferies & Co. as Banker QUEBECOR WORLD: Wants Creditor Information Protocol Approved SCOTTISH RE: Amends Employment Terms of CEO & CFO SCOTTISH RE: A.M. Best Cuts Issuer Credit Rating to bb from bbb- SELECT WINDOW : Appoints Joint Administrators from Vantis * Upcoming Meetings, Conferences and Seminars ********* ============= B E L G I U M ============= SOLUTIA INC: Posts US$208 Mln Net Loss for Year Ended Dec. 31 ------------------------------------------------------------- Solutia Inc. disclosed in its annual report for fiscal year ended Dec. 31, 2007, that it has a net loss of US$208,000,000 on net sales of US$3,535,000,000, compared with a net income of US$2,000,000 on net sales of US$2,795,000,000 in 2006, and net income of US$8,000,000 on net sales of US$2,645,000,000 in 2005. Solutia held US$173,000,000 in cash at Dec. 31, 2007, compared to US$150,000,000 in 2006, and US$107,000,000 in 2005. Solutia's net cash flow was US$23,000,000 in 2007; US$43,000,000 in 2006, and a negative cash flow of US$8,000,000 in 2005. Deloitte & Touche LLP, the Debtors' auditors, says that the financial statements have been prepared assuming that the company will continue as a going concern. However, the company's recurring losses from operations, negative working capital, and shareholders' deficit raise substantial doubt about its ability to continue as a going concern, Deloitte notes. The financial statements do not include adjustments that might result from the outcome of the uncertainty. A full-text copy of Solutia's 2007 Annual Report is available for free at http://ResearchArchives.com/t/s?28b6 As of Dec. 31, 2007, the Debtors' balance sheet showed total assets of US$2,640,000,000, total current liabilities of US$1,627,000,000, total liabilities not subject to compromise of US$2,313,000,000, liabilities subject to compromise of US$1,922,000,000, and shareholders' deficit of US$1,595,000,000. Cash and cash equivalents at the end of the year were US$173,000,000. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on March 3, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Solutia Inc. to 'B+' from 'D', following the company's emergence from bankruptcy on Feb. 28, 2008, and the implementation of its financing plan. The outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. SOLUTIA INC: Provides Status of Adversary Proceedings ----------------------------------------------------- Solutia Inc. disclosed in its 2007 annual report on Form 10-K submitted to the U.S. Securities and Exchange Commission that due to the size and nature of its business, it is party to numerous legal proceedings. According to Rosemary L. Klein, Solutia's senior vice president, general counsel and secretary, most of these proceedings have arisen in the ordinary course of business and involve claims for money damages. (1) Commitment Parties Adversary Proceeding On Feb. 6, 2008, the Debtors filed a complaint against Citigroup Global Markets Inc., Goldman Sachs Credit Partners, L.P., and Deutsche Bank Securities Inc., to require the lenders to meet their commitment under the Exit Financing Facility Commitment Letter that has been approved by the Court. On February 25, the parties reached an agreement on the terms of a revised exit financing package, which was approved by the Court on February 26. The Debtors' Effective Date was February 28. (2) JPMorgan Adversary Proceeding JPMorgan, as indenture trustee for debentures due 2027 and 2037, filed a complaint against Solutia asserting causes of action principally seeking declaratory judgment to establish the validity and priority of the purported security interest of the holders of the 2027 and 2037 Debentures. The Court ruled in favor of Solutia that the 2027/2037 Debentures were properly de- securitized under the express terms of the Prepetition Indenture and its related agreements. JPMorgan, the Ad Hoc Committee of Solutia Noteholders and individual Noteholders controlling at least US$300 in principal amount of the 2027/2037 Notes have agreed to stay their appeals to the Adversary Proceeding in consideration for the Noteholders' treatment under the the Debtors' confirmed Fifth Amended Joint Plan of Reorganization. The Plan provides that the adversary proceeding will be deemed dismissed and withdrawn with prejudice on the effective date of the Plan. (3) Equity Committee Adversary Proceeding The Official Committee of Equity Security Holders filed a complaint against, and objections to the proofs of claim filed by, Pharmacia Corporation and Monsanto Company in the Debtors' Chapter 11 cases. The complaint alleged, among other things, that Solutia's spin off from Pharmacia was a fraudulent transfer because Pharmacia forced Solutia to assume excessive liabilities and insufficient assets such that Solutia was destined to fail from its inception. The Equity Committee has agreed to stay the adversary proceeding in consideration for the treatment given to Equity Holders under the Plan. The Plan provides that they Adversary Proceeding will be deemed dismissed and withdrawn with prejudice on the Effective Date. (4) BNY Claim Solutia has filed an objection to the claim of Bank of New York, as indenture trustee for the 2009 Notes, seeking disallowance of the portion of the claim that represented original issue discount that would remain unearned as of the Effective Date. BNY opposed the disallowance, and further asserted that the allowed amount of the Claim should include damages arising from, among other things, Solutia's proposed payment of the Claim before the stated maturity of the 2009 Notes. The Court recently approved a settlement with BNY and the 2009 Noteholders, whereby the 2009 Noteholders will receive US$220,500,000 in cash, plus all accrued but unpaid interest through the Effective Date. Ms. Klein relates that Solutia is also party to around 14 legal proceedings outside the Debtors' Chapter 11 cases. A full-text copy of Solutia's 2007 Annual Report is available for free at http://ResearchArchives.com/t/s?28b6 About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on March 3, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Solutia Inc. to 'B+' from 'D', following the company's emergence from bankruptcy on Feb. 28, 2008, and the implementation of its financing plan. The outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. SOLUTIA INC: DuPont Disputes Need to Reexamine BDO's Report ----------------------------------------------------------- E.I. DuPont de Nemours and Company, Inc., questions the intent of Solutia Inc. and its debtor-affiliates to reexamine the Aug. 24, 2007 report of their third-party auditor BDO Seidman, LLP's, relative to DuPont's request for payment of a US$1,394,718 administrative claim. The Debtors objected to DuPont's payment request on the basis that they need to conduct unspecified discovery for unspecified reasons, Alan L. Hill, Esq., at Phillips Lytle LLP, in New York, representing DuPont, says. The Debtors did not set forth any specific reason why BDO Seidman's report should be reexamined, he says. Mr. Hill tells the Court that the third-party audit mechanism is set forth in the postpetition Second Amendment to the Contract dated March 1, 2006. The underlying contract was assumed by the Debtors during their Chapter 11 cases. The specific terms of the third party audit were established by the Debtors pursuant to a letter dated March 31, 2006. He asserts that there is no reason to justify allowing the Debtors a "second bite at the apple with respect to a contractual provision that they freely entered into" after the the bankruptcy filing. Moreover, the BDO Report does exactly what Solutia requested. It examines each provision of the "Meet or Release Clause" of the Contract in detail and provides a reason why each required provision is either met or not met. The BDO Report concludes that "Solutia [Inc.] did not comply with the terms of the Meet or Release Clause of the Contract," Mr. Hill says. Furthermore, the BDO Report was issued nearly six months ago. At no time before the filing of DuPont's Motion did the Debtors take any action to challenge the findings of the audit. It was the Debtors' obligation to challenge the report if they thought it was deficient as a matter of law, and they made no timely effort to do so, Mr. Hill points out. Solutia's response appears to be a delay tactic instead of a bona-fide objection to the merits of DuPont's claim, he contends. Solutia Challenges DuPont's Claims As reported in the Troubled Company Reporter on Feb. 15, 2008 E.I. DuPont de Nemours and Company, Inc., sought payment of a US$1,394,718 administrative claim, based on a contract pursuant to which DuPont sold certain product on an exclusive basis to Solutia Inc. Representing the Debtors, Thomas L. Kent, Esq., at Paul, Hastings, Janofsky & Walker LLP, in New York, stated that DuPont's Claim is invalid because DuPont's basis for the Claim is without merit. He insisted that Solutia complied with the requirements of the parties' contract and the second amendment to that contract is not "null and void." Until the Debtors have an opportunity to conduct discovery and have an opportunity to challenge Dupont's Claim, the U.S. Bankruptcy Court for the Southern District of New York should not allow it, Mr. Kent asserted. In the alternative, the Debtors asked the Court to set a discovery schedule to allow the Debtors to collect the necessary information to challenge BDO Seidman's finding. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- 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. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead 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 emerged from chapter 11 protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No. 120; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on March 3, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Solutia Inc. to 'B+' from 'D', following the company's emergence from bankruptcy on Feb. 28, 2008, and the implementation of its financing plan. The outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. URS CORP: Earns US$132 Million in Fiscal Year Ended December 28 --------------------------------------------------------------- URS Corporation reported its financial results for the fiscal year ended Dec. 28, 2007. Revenues increased 27% to US$5.38 billion from US$4.22 billion in fiscal 2006. Net income for fiscal 2007 was US$132.20 million, a 17% increase from US$113.0 million in fiscal 2006. The Company's fiscal 2007 results include six weeks of operations of the former Washington Group International, Inc., which URS acquired on Nov. 15, 2007. Excluding the results of the Washington Division, as well as costs associated with the acquisition, URS' EPS for the year would have been US$2.58, an 18% increase from fiscal 2006. As of Dec. 28, 2007, the Company's backlog was US$18.71 billion, compared to US$4.64 billion as of Dec. 29, 2006. The increase in backlog resulted from the acquisition of Washington Group and new contract awards during the year. "URS performed very well in 2007," Martin M. Koffel, Chairman and Chief Executive Officer, stated. "Our private sector and state and local government businesses were particularly robust as a result of favorable trends in the power market and strong infrastructure spending. We generated US$311.9 million in cash from operations. We repaid US$239 million in bank debt during the year, including US$125 million of the debt related to the Washington Group acquisition." Fourth Quarter 2007 Results For the fourth quarter of fiscal 2007, the Company reported revenues of US$1.74 billion and net income of US$26.40 million. For the fourth quarter of fiscal 2006, the Company reported revenues of US$1.08 billion and net income of US$26.3 million. Fiscal 2008 Earnings Outlook URS expects its fiscal 2008 revenues to be approximately US$9.8 billion. The Company expects that GAAP net income will be between US$187 and US$197 million and GAAP EPS will be in the range of US$2.24 to US$2.36 for fiscal 2008. Balance Sheet The company's balance sheet showed total assets of US$6.92 billion and total liabilities of US$3.42 billion, resulting in US$3.47 billion stockholders' equity. Equity at Dec. 29, 2006 was US$1.50 billion. About URS Corp. Headquartered in San Francisco, California, URS Corp. (NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program and construction management, and operations and maintenance services for transportation, facilities, environmental, water/wastewater, industrial infrastructure and process, homeland security, installations and logistics, and defense systems. The company operates in more than 20 countries with approximately 29,500 employees providing engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries. The company also has offices in Argentina, Australia, Belgium, China, France, Germany, and Mexico, among others. * * * In December 2007, Moody's Investors Service downgraded the Corporate Family Rating of URS Corporation to Ba2 from Ba1 following the company's acquisition of Washington Group International, Inc. Moody's said the ratings outlook is stable. ============= D E N M A R K ============= NORTEL NETWORKS: Posts US$844MM Net Loss in Fourth Quarter 2007 --------------------------------------------------------------- Nortel Networks Corp. reported financial and operating results for the fourth quarter and full year of 2007. The Company reported a net loss in the fourth quarter of 2007 of US$844 million, compared to net loss of US$80 million in the fourth quarter of 2006 and net income of US$27 million in the third quarter of 2007. Nortel reported a net loss for 2007 of US$957 million, compared to net earnings of US$28 million for the year 2006. Revenue was US$3.2 billion for the fourth quarter of 2007 compared to US$3.3 billion for the fourth quarter of 2006 and US$2.7 billion for the third quarter of 2007. In the fourth quarter of 2007, revenue increased by 18% compared to the third quarter of 2007 and excluding the impact of the UMTS Access divestiture, revenue increased by 2% compared with the year-ago quarter. For 2007, revenues were US$10.95 billion compared to US$11.4 billion for 2006. "Nortel continued to make strong progress in the fourth quarter as we completed a pivotal year in our transformation," Nortel President and CEO Mike Zafirovski said. "In a period of significant change for our industry, we have now reported six consecutive quarters of strong year over year improvement in operating margin, reflected in a 353 basis points improvement in the second half of 2006 and a 369 basis points improvement in 2007. Although our fourth quarter operating margin was below our target, it is the highest in 12 quarters. We also recorded a 386 basis point increase in gross margin to 43.7%, also the highest in 12 quarters. And most importantly, customers around the world are validating our strategic direction by signing up for multi-year engagements that leverage both our technological innovation and world-class know-how. We ended the year with a positive book to bill of 1.01 in the fourth quarter." Gross margin was 43.7% of revenue in the fourth quarter of 2007. This compared to gross margin of 39.8% for the fourth quarter of 2006 and 43.0% for the third quarter of 2007. Compared to the fourth quarter of 2006, gross margins benefited primarily from productivity improvements and mix. Cash balance at the end of the fourth quarter of 2007 was US$3.5 billion, up from US$3.13 billion at the end of the third quarter of 2007. The increase in cash was primarily driven by cash from operating activities of US$417 million and a positive impact from foreign exchange of US$16 million, partially offset by cash used in financing activities of US$23 million and cash used in investing activities of US$6 million. Outlook Nortel provided its financial outlook for the full year 2008, and expects: * Revenue to grow in the low single digits compared to 2007; * Gross Margin to be about our business model target of 43% of revenue; * Operating Margin as a percentage of revenue to increase by about 300 basis points compared to 2007. At Dec. 31, 2007, the company's balance sheet showed total assets of US$17.0 billion and total liabilities of US$13.4 billion, resulting in a US$2.7 billion, stockholders' equity. Equity, on Sept. 30, 2007, was US$2.9 billion and, on Dec. 31, 2006, was US$1.1 billion. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance By simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * Nortel Networks Corp. still carries Moody's Investors Service 'B3' Senior Unsecured Debt rating which was placed on March 22, 2007. =========== F R A N C E =========== DELPHI CORP: Court Extends Lease Decision Deadline to March 31 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York to further extended the time within Delphi Corp. and its debtor- affiliates may assume or reject unexpired leases of nonresidential real property through and including the earlier of: (a) the Effective Date of the Debtors' confirmed First Amended Joint Plan of Reorganization; and (b) May 31, 2008. If the Debtors file a subsequent motion to extend the Lease Decision Deadline before the expiration of the applicable deadline for a particular lease, and that motion is set for hearing on the next omnibus hearing date that is at least 20 days away or is filed in accordance with Rule 6006-1(c) of the Local Bankruptcy Rules for the U.S. Bankruptcy Court for the Southern District of New York, the Debtors' deadline to assume or reject the underlying lease is automatically extended until the later of: -- the date set forth in any subsequent Court order; -- three business days after the Court enters an order ruling on the Subsequent Motion; and -- May 31, 2008. As reported in the Troubled Company Reporter on Feb. 11, 2008, the Debtors are lessors or lessees with respect to roughly 80 unexpired leases of nonresidential real property, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates. Certain of the Real Property Leases, he noted, are among the Debtors' primary assets and are vital to their business. The First Amended Plan provides for the assumption of all of the Real Property Leases on the Plan Effective Date. The Debtors' Lease Decision Deadline expired Feb. 29, 2008. The Proposed Lease Decision Deadline will be subject to the terms of the Plan and Plan Confirmation Order, Mr. Butler assured the Court. The Proposed Deadline, he added, coincides with the Debtors' current deadline to solicit acceptances of a reorganization plan. The Debtors have remained and fully intend to remain current with respect to all outstanding postpetition rental obligations under the Real Property Leases, Mr. Butler continues. The non- debtor parties to the Real Property Leases will not be prejudiced by the proposed extension because the Debtors are making payments under the Real Property Leases as they come due, he said. If the Lease Decision Deadline is not extended, the Debtors may face uncertainty with respect to their ability to assume or reject the Real Property Leases if the Plan does not become effective by the current Feb. 29, 2008 Lease Decision Deadline, Mr. Butler maintained. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As previously reported in the Troubled Company Reporter-Europe, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. Standard & Poor's Ratings Services in the meantime said it expects to assign its 'B' corporate credit rating to Delphi upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Court Extends Deadline to Remove Civil Actions ----------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York extended Delphi Corp. and its debtor-affiliates' deadline to remove pending judicial and administrative proceedings through the earlier of: (a) 30 days after the effective date of the Debtors' Joint Plan of Reorganization; and (b) 30 days after the Court enters an order terminating the automatic stay with respect an action. As reported in the Troubled Company Reporter on Feb. 11, 2008, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, related, the Debtors are parties to more than 200 judicial and administrative actions pending in various courts or administrative agencies throughout the United States. The Debtors' deadline to remove Actions in accordance with Section 1452 of the Judiciary and Judicial Procedure Code and Rule 9027 of the Federal Rules of Bankruptcy Procedure expired on Feb. 29, 2008. The Debtors expect to emerge from Chapter 11 during the first quarter of the year. An extension, Mr. Butler asserted, was necessary in the event that the Debtors' bankruptcy emergence date is delayed beyond Feb. 29, 2008. An extension, he added, will afford the Debtors an opportunity to make fully informed and prudent decisions concerning the possible removal of the claims and causes of action in the Actions, thus protecting the Debtors' valuable right to adjudicate the Actions economically if current or future circumstances warrant their removal. The Debtors' request will not prejudice any party whose proceeding is removed from seeking remand under Section 1452(b) of the Bankruptcy Code, Mr. Butler pointed out. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As previously reported in the Troubled Company Reporter-Europe, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. Standard & Poor's Ratings Services in the meantime said it expects to assign its 'B' corporate credit rating to Delphi upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Shareholder Settlement Hearing Set for April 29 ------------------------------------------------------------ The Hon. Gerald E. Rosen of the U.S. District Court for the Eastern District of Michigan, Southern Division, will convene a hearing on April 29, 2008, to decide, among other things, final Court approval of a settlement providing for a recovery of US$38,250,000 to be paid by Deloitte & Touche LLP, Delphi Corp.'s outside auditor; and on the dismissal of claims against Deloitte & Touche. District Court Certifies Class The Court has preliminarily certified a class consisting of all persons and entities who purchased or acquired publicly traded securities issued by Delphi Trust I and Delphi Trust II between March 7, 2000, and March 3, 2005, inclusive, and who suffered damages thereby, including all entities who acquired shares of Delphi common and preferred stock in the secondary market and debt securities in Delphi. The case is in In re Delphi Securities, Derivative and ERISA Litigation, MDL No. 1725, Case No. 05-md-1725. The District Court also preliminarily approved the Deloitte & Touche Settlement providing for a recovery of US$38,250,000 to be paid by Deloitte & Touche LLP, Delphi Corp.'s outside auditor during the Class Period. The Class will receive an interest on the Deloitte & Touche Settlement Amount. Copies of the full printed Deloitte & Touche Notice and the Proof of Claim and Release form may be obtained at http://www.delphiclasssettlement.comor by contacting: In re Delphi Corporation Securities Litigation Settlement c/o The Garden City Group, Inc. Claims Administrator P.O. Box 9185 Dublin, OH 43017-4185 Inquiries may be made to the four co-lead counsel for the Lead Plaintiffs in the Securities Litigation: * Bradley E. Beckworth, Esq. Nix, Patterson & Roach, L.L.P. 205 Linda Drive Daingerfield, Texas 75638 * Sean Handler, Esq. Schiffrin Barroway Topaz & Kessler, LLP 280 King of Prussia Road Radnor, PA 19087 * Jeffrey N. Leibell, Esq. Bernsten Litowitz Berger & Grossmann, LLP 1285 Avenue of the Americas New York 10019 * Stuart Grant, Esq. Grant & Eisenhofer P.A. Chase Manhattan Centre Suite 2100 1201 N. Market St. Wilmington, DE 19801 Further information may also be obtained by writing to the Claims Administrator or calling 1-800-918-0998 toll-free. The Securities Litigation has been resolved with respect to the Debtors pursuant to the Court-approved Multidistrict Litigation Settlements between the Debtors and the Lead Plaintiffs. Under the terms of the MDL Settlements, the Debtors granted the Lead Plaintiffs claims that will be satisfied through Delphi's confirmed Plan of Reorganization. To participate in the Deloitte & Touche Settlement, parties-in- interest must have submitted a valid proof of claim in connection with the MDL Settlements or submit a valid proof of claim to the Claims Administrator postmarked not later than May 30, 2008. The deadline for filing objection and the receipt of requests for exclusions is April 15, 2008. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As previously reported in the Troubled Company Reporter-Europe, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. Standard & Poor's Ratings Services in the meantime said it expects to assign its 'B' corporate credit rating to Delphi upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. MYLAN INC: Reports Revenues of US$1.16BB Quarter Ended Dec. 31 -------------------------------------------------------------- Mylan Inc. reported its financial results for the three and nine months ended Dec. 31, 2007, provided an update on its synergy targets for the Merck Generics acquisition, and disclosed a number of strategic and operational initiatives. Financial Highlights -- Adjusted diluted cash EPS of US$0.11 and US$0.92 for the three and nine months ended Dec. 31, 2007, respectively, both of which exclude the impact of purchase accounting items related to the Matrix acquisition completed in January 2007 and the acquisition of Merck Generics completed in October 2007, as well as other non-recurring items as discussed in detail below; -- Total revenues of US$1.16 billion for the three months ended Dec. 31, 2007, an increase of US$753.6 million over the same prior year period; -- Total revenues of US$2.18 billion for the nine months ended Dec. 31, 2007, an increase of US$1.05 billion over the same prior year period; -- On a GAAP basis, a loss per diluted share of US$5.04 and US$4.49 for the three and nine months ended Dec. 31, 2007, respectively, as a result of purchase accounting adjustments including the write-off of US$1.27 billion of acquired in-process research and development, which was recorded without tax effect. Mylan's Vice Chairperson and Chief Executive Officer, Robert J. Coury commented: "The strength of this first quarter as a consolidated company showcases Merck Generics' contribution to our growth. The strong performance of Merck Generics bolstered the solid nine-month results of the legacy Mylan operations. Further, these strong results were achieved while tremendous progress was made, both on the integration and on achieving our targeted synergies. Looking forward, we will continue to execute on our strategies and leverage the additional opportunities and benefits that we see from the global platform created by the combination of Mylan, Merck Generics and Matrix." Synergy Update Mylan confirmed that it expects to realize its stated US$100 million synergy target for the Merck Generics acquisition for 2008 and it is on track to meet or exceed the targeted recurring annual synergies of US$300 million by the end of 2010, as outlined by the company during its investor day on Oct. 3, 2007. To achieve these results, the company announced that it has initiated the necessary actions within research and development (R&D) and manufacturing. The actions are expected to yield 75% of the overall US$300 million annual synergy target by the end of 2010. Chief Operating Officer and Chief Integration Officer, Heather Bresch said: "We are well ahead of our implementation schedule. Our efforts to date extend across all areas of the new combined company, including strengthening our leadership and organizational infrastructure, ensuring effective separation from Merck KGaA, building Mylan's brand equity globally and, most importantly, realizing value from the New Mylan by delivering on our synergy targets." Specific steps being taken to rationalize and optimize our global manufacturing and research and development platforms include: -- Discontinue manufacturing and R&D at Genpharm in Canada. The Commercial Operations, Packaging Unit, Quality Control Laboratory, Biopharm Department, Supply Chain Functions, and Regulatory Affairs at Genpharm will continue operation. -- Discontinue manufacturing of non-high potency products at Mylan's Puerto Rico location. High potency manufacturing operations will remain and be expanded in Puerto Rico, creating a "center of excellence" for high potency manufacturing at this facility. -- Discontinue R&D activities at Gerard Laboratories in Ireland. -- Discontinue R&D activities in Spain. -- Scale down R&D activities at Generics UK. Executive Vice President and Head of Global Technical Operations, Rajiv Malik commented: "The actions announced today will allow us to leverage the scale of our expanded global assets and optimize our operations. We expect that our new streamlined, consolidated and integrated R&D and manufacturing platforms will not only deliver the promised synergies, but also enable us to even more effectively execute on the growth strategy for our global business." Strategic Initiatives Mylan reported a number of key initiatives to enhance its strategic focus, specifically: -- Mylan has reached a definitive agreement with Forest Laboratories whereby Mylan will sell its rights to Nebivolol, a FDA approved product for the treatment of hypertension which is marketed by Forest under the brand name Bystolic(TM). Mylan will receive a one-time cash payment of US$370 million and will retain royalties for the product through 2010. -- Mylan will pursue strategic alternatives for Dey, including the potential sale of the business, Mylan's specialty pharmaceutical business acquired as part of the Merck Generics transaction. Dey is a leader in the nebulized respiratory and severe allergy markets with fully integrated capabilities in R&D, manufacturing and marketing and sales. -- The Board of Directors of Mylan's majority owned subsidiary, Matrix Laboratories, has authorized its management to explore strategic alternatives for Docpharma, its commercial operations in the Benelux region (Belgium, the Netherlands and Luxemburg), including a potential divestiture of the asset. -- Mylan has exercised its option with respect to Merck Generics' operations in Central and Eastern Europe, including such high-growth markets as Poland, Slovakia, Hungary, the Czech Republic and Slovenia. Mr. Coury added: "After conducting a further review of our global portfolio of businesses following the completion of the Merck Generics acquisition, we have decided to pursue several initiatives that will allow us to leverage the power of our global generics platform, focus on the successful execution of our integration, and meet our commitments to de-levering our balance sheet." "More specifically, during our recent post-closing review of Dey, it became clear that the launch of Perforomist(TM), which occurred concurrently with the closing of the Merck Generics acquisition, requires a redefined strategic approach. While Dey is already in the process of addressing this issue, the delay will result in slower growth and a longer timeframe to reach peak sales than was originally anticipated from this product. While we continue to believe that the Dey business, as a whole, represents a very exciting opportunity in specialty pharmaceuticals, we believe that our resources would be better allocated toward our core generics business. As a result, we have decided to consider a sale of Dey," Mr. Coury continued. The slower than expected launch of Perforomist(TM) is expected to have approximately a US$0.20 to US$0.25 negative impact on Mylan's diluted earnings per share in 2008, 2009 and 2010. Although the company is not in a position to update or revise guidance at this time, it will do so in conjunction with its 2008 first quarter earnings announcement. Mr. Coury said: "Notwithstanding the timing issue associated with the slower uptake of Perforomist(TM), the results of our initial quarter with Merck Generics continues to give us great confidence in the growth potential of our core generics business around the world. We continue to see strong performance across our global generics business and we expect that the further integration of our businesses will result in even greater potential opportunities for growth going forward." Detailed Financial Summary Mylan previously had two reportable segments, the "Mylan Segment" and the "Matrix Segment." With the acquisition of Merck Generics, Mylan now has three reportable segments: Generics Segment, Specialty Segment (or "Specialty") and the Matrix Segment. The former Mylan Segment is included within the Generics Segment. Additionally, certain general and administrative and research and development expenses not allocated to the segments, as well as litigation settlements and non-operating income and expenses, are reported in Corporate/Other. Total revenues for the quarter ended Dec. 31, 2007, increased by 188% or US$753.6 million to US$1.16 billion from US$401.8 million in the same prior year period. Approximately US$793.5 million represents amounts contributed through acquisitions. Generics Segment revenues are derived from sales in Europe, the Middle East & Africa (EMEA), North America and Asia Pacific. Revenues from North America were US$416.3 million for the three months ended Dec. 31, 2007, compared to US$401.8 million for the same prior year period, representing an increase of US$14.5 million or 4%. Revenues of approximately US$54.4 million were realized in North America as a result of the acquisition of Merck Generics. Revenues from EMEA and Asia Pacific, as well as revenues from the Specialty Segment, were all the result of the acquisition of Merck Generics. For EMEA, revenues for the quarter ended Dec. 31, 2007, were US$373.1 million, the majority of which are derived from the three largest markets; France, the United Kingdom and Germany. Revenues from Asia Pacific were US$170.9 million for the three months ended Dec. 31, 2007, and were derived from Mylan's newly acquired operations in Australia, Japan and New Zealand. For the Specialty Segment, total revenues for the three months ended Dec. 31, 2007, were US$102.1 million. The Specialty Segment consists of the Dey business that focuses on the development, manufacturing and marketing of specialty pharmaceuticals in the respiratory and severe allergy markets. The Matrix Segment reported total revenues of US$107.1 million, of which US$92.9 million represents sales to third parties. Gross profit for the three months ended Dec. 31, 2007, was US$356.1 million and gross margins were 30.8%. The decrease in gross margins is due primarily to the effects of purchase accounting items recorded during the quarter of approximately US$117.7 million, which consisted primarily of amortization related to purchased intangible assets and the amortization of the inventory step-up associated with the acquisition of Merck Generics. Excluding such items, gross margins were 41% compared to 55.9% for the three months ended Dec. 31, 2006. The company reported a loss from operations of US$1.27 billion for the three months ended Dec. 31, 2007. This loss from operations for the quarter included a US$1.27 billion one-time charge to write-off acquired in-process research and development, which is recorded without a tax effect, and excludes the US$117.7 million of purchase accounting items discussed above. Excluding these amounts, earnings from operations would have been US$118.5 million, a decrease of US$65.1 million from the prior year. Research and development (R&D) expense for the three months ended Dec. 31, 2007 was US$80.8 million compared to US$22.9 million in the same prior year period. R&D expense includes approximately US$53.9 million related to newly acquired entities, all of which was incremental to the comparable prior year period. The acquisition of Merck Generics and Matrix added US$170 million of incremental selling, general and administrative (SG&A) expense to the current period. Excluding this amount, SG&A expense increased by US$53.1 million or 101% to US$105.7 million compared to US$52.6 million in the comparable prior year period. The majority of this increase was realized by Corporate and Other and is the result of costs, such as professional and consulting fees, associated with the integration of Merck Generics, as well as higher payroll and related costs principally attributable to the build-up of additional corporate infrastructure as a direct result of the Merck Generics acquisition. Interest expense for the current quarter totaled US$133.4 million compared to US$10.5 million for the three months ended Dec. 31, 2006. The increase is due to the additional debt incurred to finance the acquisition of Merck Generics. Other (expense) income, net was expense of US$43.9 million for the three months ended Dec. 31, 2007 compared to income of US$32.4 million in the same prior year period. The most significant item in the current period was US$57.2 million related to the early repayment of certain debt and expensing certain financing fees, partially offset by other income attributable to interest and dividends. For the nine months ended Dec. 31, 2007 total revenues were US$2.18 billion compared to US$1.12 billion during the comparable nine-month period of the prior year. Approximately US$964.8 million of revenues for the nine-month period were contributed through acquisitions. For the nine-months ended Dec. 31, 2007, the Matrix Segment reported total revenues of US$293.8 million, of which US$264.2 million represented third party sales. As Mylan began consolidating the results of Matrix beginning on Jan. 8, 2007, all of this revenue is incremental to the results of the prior year. Gross profit for the nine months ended Dec. 31, 2007, was US$874.4 million and gross margins were 40.1%. The decrease in gross margins is due primarily to the effects of purchase accounting items of approximately US$148.9 million. Excluding such items, gross margins were 47% compared to 54.1% for the nine months ended Dec. 31, 2006. The loss from operations for the nine months ended Dec. 31, 2007 was US$988.3 million as a result of the purchase accounting items discussed above and the one-time charge to write-off acquired in-process research and development. Excluding these amounts, earnings from operations would have been US$429.7 million for the nine-month period, a decrease of US$5.7 million from the prior year. R&D expense for the nine months ended Dec. 31, 2007, excluding that incurred by newly acquired entities, was US$74.9 million compared to US$66.8 million in the same prior year period, an increase of US$8.1 million or 12%. SG&A expense, also excluding amounts contributed by new entities, increased by US$95.1 million or 62% to US$247.9 million compared to US$152.8 million in the comparable prior year period. The majority of this increase was realized by Corporate and Other, and is the result of costs, such as professional and consulting fees, associated with the integration of Merck Generics, as well as higher payroll and related costs principally attributable to the build-up of additional corporate infrastructure as a direct result of the Merck Generics acquisition. Interest expense for the nine months ended Dec. 31, 2007, totaled US$179.4 million compared to US$31.3 million for the nine months ended Dec. 31, 2006. The increase is due to the additional debt incurred to finance the acquisition of Merck Generics. Other income (expense), net was income of US$86.6 million for the nine months ended Dec. 31, 2007, compared to income of US$39.8 million in the same prior year period. The most significant items in the current period are net foreign exchange gains consisting mainly of US$85 million on a contract related to the acquisition of Merck Generics and US$57.2 million of expense related to the early repayment of certain debt and expensing certain financing fees as discussed previously, with the remainder of the other income attributable to interest and dividends. About Mylan Inc. Mylan Inc., formerly known as Mylan Laboratories Inc. (NYSE: MYL), -- http://www.mylan.com/-- is a global pharmaceutical company with market leading positions in generic pharmaceuticals, transdermal technology and unit dose packaged products. Mylan operates through three principal subsidiaries: Mylan Pharmaceuticals, a world leader in generic pharmaceuticals; Mylan Technologies, the largest producer of generic and branded transdermal patches for the U.S. market; and UDL Laboratories, the top U.S.-supplier of unit dose pharmaceuticals. Mylan also owns a controlling interest in Matrix Laboratories, one of the world's premier suppliers of active pharmaceutical ingredients. Mylan also has a European platform through Docpharma, a Matrix subsidiary, which is a marketer of branded generics in Europe. The company also has a production facility in Puerto Rico. * * * As reported in the Troubled Company Reporter-Europe on Nov. 19, 2007, Moody's Investors Service assigned B1 ratings to the new senior secured credit facilities of Mylan Inc. In addition, Moody's lowered Mylan's Corporate Family Rating to B1 from Ba1, concluding a rating review for possible downgrade initiated on May 14, 2007 and lowered the speculative grade liquidity rating to SGL-2 from SGL-1. PRIDE INTERNATIONAL: Earns US$784.3 Million in 2007 --------------------------------------------------- Pride International Inc. reported net income of US$135.0 million for the three months ended Dec. 31, 2007, compared to net income of US$68.9 million for the same period in 2006. Results for the fourth quarter of 2007 included income from discontinued operations of US$17.3 million primarily representing three tender-assist rigs that the company agreed to sell in August 2007 for US$213 million in cash. The sale of the three units was completed during the first quarter of 2008. In the fourth quarter of 2006, income from discontinued operations was US$36.9 million. For the full year of 2007, net income was a record US$784.3 million. The results reflected a gain of US$268.6 million resulting from the sale of the company's Latin America Land and E&P Services segments in August 2007. Cash flow from operating activities totaled US$685.0 million for the 12 months ended Dec. 31, 2007, while capital expenditures were US$656.4 million, including US$315.9 million invested in two advanced capability, ultra-deepwater drillships currently under construction. The company expected capital expenditures for the 12 months ended Dec. 31, 2008 to be US$995 million, with an estimated US$610 million relating to the ultra-deepwater drillship construction projects, including a third project announced in January 2008. Total debt at Dec. 31, 2007 was US$1,191.5 million, while net debt (total debt less cash and cash equivalents of US$890.4 million) was US$301.1 million. Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., stated, "We achieved record financial performance in 2007, with continued excellent operational execution and safety results. Equally important, and specific to our transition to a pure focus offshore drilling company, we achieved a number of strategic initiatives during 2007 and early 2008, including the disposal of approximately US$1.3 billion of non-strategic assets and the addition of three ultra-deepwater drillships currently under construction, which are expected to be available in 2010 and 2011. With the three projects, the company has now committed approximately US$2.8 billion since 2005 to the expansion of its deepwater presence. In addition, we have secured attractive, multi-year contracts on two of our new drillships. "We believe our investments in the deepwater market sector are timely, as we continue to witness exceptional activity levels with growing evidence that suggests the strong industry demand for deepwater capacity could remain well beyond 2010. Since the beginning of 2008, we have secured or extended contracts for four rigs representing revenues in excess of US$3.3 billion, inclusive of performance bonus opportunities, and totaling 22 rig years. With the recent contract extensions for the semisubmersible rigs Pride Rio de Janeiro and Pride Portland, we now have earnings visibility to 2017 and our total backlog of contracts is approaching a record US$8 billion, before performance bonus opportunities, representing an estimated 140 percent of our current market capitalization. This revenue backlog and the resulting expected cash flow represents a solid financial base to support further growth initiatives and offers the company valuable flexibility as we evaluate and execute strategies that increase shareholder value." Offshore Drilling Segment Results The company's Offshore Drilling Segment reported revenues for the three months ended December 31, 2007 of US$473.8 million, compared to US$509.7 million in the third quarter of 2007, while earnings from operations were US$202.3 million, compared to US$212.2 million over the same comparative period. Results for the quarter were negatively impacted by planned out-of-service time, repairs and maintenance involving several rigs in the company's deepwater, midwater and jackup fleets, resulting in a slight decline in fleet utilization to 72 percent in the fourth quarter of 2007 from 75 percent in the previous quarter of 2007. The earnings decline was partially offset by lower operating costs, which fell to US$242.9 million in the fourth quarter of 2007, from US$250.4 million in the third quarter of 2007. The three percent decline was attributable to reduced activity in both the company's jackup rig fleet, resulting in part from the mobilizations of two jackup rigs to Mexico from the U.S. Gulf, and the midwater rig fleet, resulting from shipyard programs on two rigs. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Europe on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. PRIDE INTERNATIONAL: Uncovers Evidence of Bribery ------------------------------------------------- Pride International Inc. has found evidence that company officials, from 2001 through 2005, made improper payments to government officials of some countries, including Mexico and, Venezuela, to handle customs, immigration and tax issues, published reports say. According to a U.S. Securities and Exchange Commission filing, the payments were used to clear jack-up rig and equipment through customs in Mexico and to get extensions on drilling contracts in Venezuela, Bloomberg News reports. The Venezuelan and Mexican payments amounted to less than US$1 million. Tom Fowler of Houston Chronicle relates that the company also discovered evidence suggesting that payments totaling less than US$2 million were directly or indirectly made from 2001 to 2005 to government officials in Saudi Arabia, Kazakhstan, Brazil, Nigeria, Libya, Angola, and the Republic of the Congo. Reports say that Pride's management and the audit committee deemed that senior operations management knew or should have known the improper payments. The company's former COO quit his job in 2006, and will stay as a worker during the investigation to assist inquiries and answer questions. Others have been terminated, resigned, or placed on leave. The company would likely face fines, and civil and criminal penalties Civil penalties under anti-bribery provisions; and fines and sanctions from foreign jurisdictions, reports state. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Europe on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. RHODIA SA: Earns EUR129 Million for Year Ended December 31 ---------------------------------------------------------- Rhodia S.A. released its financial report for the year ended Dec. 31, 2007. The company posted net profit of EUR129 million on EUR5.081 billion net sales for the year ended Dec. 31, 2007, compared with net profit of EUR62 million on EUR4.81 billion net sales for the same period in 2006. As of Dec. 31, 2007, Rhodia's net debt was EUR1.484 billion compared with EUR1.949 billion in Dec. 31, 2006. "In 2007 we have demonstrated that Rhodia is well positioned to meet future challenges and to deliver its profitable growth strategy," Jean-Pierre Clamadieu, Rhodia CEO disclosed. "Our solid performance together with our confidence looking ahead allows the Board to propose to shareholders the Group’s first dividend in 5 years," Mr. Clamadieu added. A full-text copy of Rhodia's financial results is available at no charge at http://ResearchArchives.com/t/s?28b8 About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. The group generated sales of EUR4.8 billion in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As of Feb. 19, 2008, Rhodia S.A. carries Moody's long-term corporate family rating of Ba3 and senior unsecured debt rating of B1 with positive outlook. The company also carries Standard & Poor's BB- long-term foreign and local issuer credit ratings, and B short-term foreign and local issuer credit ratings. The ratings outlook is stable. Fitch Ratings assigned long-term issuer default rating at BB- and senior unsecured debt rating at BB- with outlook positive. TEMBEC INC: Court Approves Plan of Arrangement Under CBCA --------------------------------------------------------- Tembec Inc. disclosed that the plan of arrangement under the Canada Business Corporations Act, relating to the recapitalization transaction, has been approved and sanctioned by the Ontario Superior Court of Justice. The Court determined that the Plan of Arrangement met all statutory requirements, that it was brought in good faith and that it was fair and reasonable in the circumstances. Accordingly, the Court issued a final order approving the Plan of Arrangement. "This is excellent news for the company and its stakeholders," James Lopez, president and CEO of Tembec, said. "Court approval of the Plan of Arrangement is the final step in advance of closing the transaction. With a secure financial footing and solid stakeholder support, the company that will emerge from this transaction will be very well positioned to pursue its business strategy. The immediate focus will be on improving the operating and financial performance of the company with the short-term goal of restoring free cash flow." Resolutions relating to the Recapitalization were approved by in excess of 95% of shareholders of Tembec and by in excess of 98% of noteholders of Tembec Industries Inc. at meetings held on Feb. 22, 2008. Court approval of the Plan of Arrangement was the final outstanding approval requirement prior to implementation of the Recapitalization. The closing and implementation of the Recapitalization is expected to occur today, Feb. 29, 2008. The company also disclosed that these individuals will serve on the board of directors of the new Tembec Inc. effective as at the time of closing, on Feb 29: -- Norman Betts, Storytown, New Brunswick -- James Brumm, New York, New York -- Jim Chapman, Greenwich, Connecticut -- Jim Continenza, Lakeville, Minnesota -- Jim Lopez, North Bay, Ontario -- Luc Rossignol, Témiscaming, Québec -- Fran Scirrico, Cold Spring Harbor, New York -- David Steuart, Burlington, Ontario -- Lorie Waisberg, Toronto, Ontario "I am pleased to have this accomplished group of individuals join our board," Mr. Lopez concluded. "The unique mix of skills and experience they bring will be very helpful in providing the guidance necessary as the company charts its course forward following this very important transaction." 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. TEMBEC INC: Completes Recapitalization; New Shares Listed on TSX ---------------------------------------------------------------- Tembec Inc. disclosed the completion of the recapitalization transaction presented on Dec. 19, 2007 and outlined in the company's Management Proxy Circular dated Jan. 25, 2008. New common shares of Tembec will be listed on the Toronto Stock Exchange "TSX" under the stock symbol "TMB". Warrants will also be listed and will trade under the symbol "TMB.WT". As reported in the Troubled Company Reporter on Dec. 27, 2007, Tembec disclosed a recapitalization transaction with these key elements: -- conversion of US$1.2 billion of Tembec's debt into new equity; -- implementation of a new 4-year term loan of US$250 million to US$300 million, final amount to be determined by Tembec, to provide additional liquidity; -- reduction of Tembec's annual interest expense by approximately US$67 million; -- business as usual for employees, trade creditors and customers, the customers will not be affected by the recapitalization; -- implementation of the recapitalization is expected to occur by the end of February 2008. The new capital structure will provide a stronger financial base for the execution of Tembec's operating strategy and enhance the long-term value of Tembec. The TCR-Europe reported Feb. 27 that Tembec's recapitalization transaction has been approved by the requisite majority of shareholders of Tembec and the requisite majority of holders of notes of Tembec Industries Inc. Tembec 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. The TCR said Feb. 29 that the plan of arrangement under the Canada Business Corporations Act, relating to the recapitalization transaction, has been approved and sanctioned by the Ontario Superior Court of Justice. The Court determined that the Plan of Arrangement met all statutory requirements, that it was brought in good faith and that it was fair and reasonable in the circumstances. Accordingly, the Court issued a final order approving the Plan of Arrangement. 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. TEMBEC INC: Unit’s Senior Notes Gets S&P's D Debt Issue Rating -------------------------------------------------------------- Standard & Poor's Ratings Services lowered the debt issue rating on Tembec Industries Inc.'s senior unsecured notes to 'D' from 'CC', following the endorsement of the recapitalization program by the courts, majority bondholders, and company shareholders. At the same time, S&P removed the notes from CreditWatch negative where they were placed Dec. 20, 2007. Tembec Industries is a subsidiary of Montreal-based Tembec Inc. and issued senior unsecured notes that are part of the recapitalization program. The recapitalization will convert into equity aggregate US$1.2 billion of senior unsecured debt issues due in 2009, 2011, and 2012. The long-term corporate credit ratings on Tembec Inc. and Tembec Industries Inc. are unchanged at 'CC'. S&P also revised the CreditWatch implications on both companies to positive from negative, as recapitalization will significantly deleverage the balance sheet and reduce the interest burden. Tembec Inc. and Tembec Industries were placed on CreditWatch with negative implications Dec. 20, 2007. Furthermore, a new US$300 million loan will provide the company with much needed liquidity. "Tembec should continue to face challenging market conditions in its forest products and paper divisions as the U.S. heads into a mild recession," said Standard & Poor's credit analyst Jatinder Mall. For the first quarter ended Dec. 29, 2007, parent Tembec Inc. generated negative cash flows led by depressed lumber and newsprint prices and a strong Canadian dollar. Tembec had US$128 million in liquidity as of Dec. 29, 2007. S&P will resolve the CreditWatch once S&P has had an opportunity to review the financial position of the recapitalized company. ============= G E R M A N Y ============= AIRPOINT GMBH: Creditors Must File Claims by March 31 ----------------------------------------------------- Creditors of Airpoint GmbH have until March 31, 2008, to register their claims with court-appointed insolvency manager Jochen Wagner. Creditors and other interested parties are encouraged to attend the meeting at 9:10 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 Munich Meeting Hall 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: Jochen Wagner Leonrodstr. 69 80636 Munich Germany The District Court of Munich opened bankruptcy proceedings against Airpoint GmbH on Feb. 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Airpoint GmbH Falkenweg 23 82008 Unterhaching Germany AWVG WOHNUNGSVERWALTUNGSGESELLSCHAFT: Claims Due March 31 --------------------------------------------------------- Creditors of AWVG Wohnungsverwaltungsgesellschaft mbH have until March 31, 2008, to register their claims with court-appointed insolvency manager Wilhelm Klaas. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 5, 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: Wilhelm Klaas Alter Posthof 15 52062 Aachen Germany The District Court of Aachen opened bankruptcy proceedings against AWVG Wohnungsverwaltungsgesellschaft mbH on Feb. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AWVG Wohnungsverwaltungsgesellschaft mbH Dorfstr. 9 52441 Linnich Germany CAFE-RESTAURANT BREITENBERG: Claims Registration Ends March 28 -------------------------------------------------------------- Creditors of Cafe-Restaurant Breitenberg GmbH & Co. KG have until March 28, 2008, to register their claims with court- appointed insolvency manager Dr. Olaf Buechler. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 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: Dr. Olaf Buechler Herrengraben 3 20459 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Cafe-Restaurant Breitenberg GmbH & Co. KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cafe-Restaurant Breitenberg GmbH & Co. KG Roter Hahn 40k 22159 Hamburg Germany CB MEZZCAP: Company No. 34 Files for Insolvency ----------------------------------------------- CB MezzCAP Limited Partnership, acting through its general partner CB MezzCAP Limited (issuer), has been informed by its financial advisor that the company mentioned as Company No. 34 in the offering circular has filed for the opening of insolvency proceedings on Feb. 22, 2008. Due to the reported financial difficulties of the company it might be the case that it defaults on its obligations to make payments of interests and/or principal under the participation right, which then might lead to reduced payments of the Issuer under the Class F Notes. The interest or principal payments of the Class A to E Notes are not affected by this insolvency. As stated in the last investor reports the issuer instructed the recovery advisor in July 2007 to analyze the situation of the company. In its latest report the recovery advisor concluded that the company had the potential for a successful restructuring to overcome the critical situation but that the banks and the company had not come to an agreement concerning the further financial structure. The issuer is currently trying to get detailed information regarding the reasons for the filing for insolvency. In compliance with applicable law, the issuer will make further announcements after having better knowledge of the financial situation of the company. Notes -- EUR 119,632,413 Class A Floating Rate Notes due 2036 (ISINXS0249999714); -- EUR20,000,000 Class B Floating Rate Notes due 2036 (ISIN XS0249999987); -- EUR10,500,000 Class C Floating Rate Notes due 2036 (ISIN XS0250000139); -- EUR14,500,000 Class D Floating Rate Notes due 2036 (ISIN XS0250000998); -- EUR7,700,000 Class E Floating Rate Notes due 2036 (ISIN XS0250001293); and -- EUR9,000,000 Class F 17% Notes due 2036 (ISIN XS0250001707). CB MezzCAP Limited Partnership is a German SME CLO transaction. CITYCOM IMMOBILIEN: Claims Registration Period Ends March 28 ------------------------------------------------------------ Creditors of CityCom Immobilien GmbH have until March 28, 2008, to register their claims with court-appointed insolvency manager F. Peters. Creditors and other interested parties are encouraged to attend the meeting at 10:20 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 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: F. Peters Deichstrasse 1 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against CityCom Immobilien GmbH on Feb. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CityCom Immobilien GmbH Poststrasse 33 VI 20354 Hamburg Germany CLAUSING GMBH: Claims Registration Period Ends March 28 ------------------------------------------------------- Creditors of Clausing GmbH & Co. KG have until March 28, 2008, to register their claims with court-appointed insolvency manager Marc Daniel Schulz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Bersenbrueck Meeting Hall 11 Main Building Stiftshof 8 49593 Bersenbrueck 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: Marc Daniel Schulz Ludgeristrasse 54 48143 Muenster Germany Tel: 0251/162830 Fax: 0251/1628311 E-mail: muenster@pluta.net The District Court of Bersenbrueck opened bankruptcy proceedings against Clausing GmbH & Co. KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Clausing GmbH & Co. KG Am Sagewerk 6 49565 Bramsche Germany COMDAX24 GMBH: Claims Registration Period Ends March 28 ------------------------------------------------------- Creditors of COMDAX24 GmbH have until March 28, 2008, to register their claims with court-appointed insolvency manager Holger Zbick. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 13 B Gerichtsstr. 2-6 48149 Muenster 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: Holger Zbick Marktplatz 2/4 48712 Gescher Germany Tel: 02542/9178-0 Fax: +492542917829 The District Court of Muenster opened bankruptcy proceedings against COMDAX24 GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: COMDAX24 GmbH Schueringsweg 5 48712 Gescher Germany CUCINA LEGERE: Claims Registration Period Ends March 28 ------------------------------------------------------- Creditors of Cucina Legere GmbH & Co. KG have until March 28, 2008, to register their claims with court-appointed insolvency manager Dr. Frank Kebekus. Creditors and other interested parties are encouraged to attend the meeting at noon 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 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: Dr. Frank Kebekus Diekampstrasse 26 44787 Bochum Germany The District Court of Bochum opened bankruptcy proceedings against Cucina Legere GmbH & Co. KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cucina Legere GmbH & Co. KG Harpener Feld 34 44787 Bochum Germany FLAGGEN & WERBUNG: Creditors Must File Claims by March 31 --------------------------------------------------------- Creditors of Flaggen & Werbung Sylt GmbH have until March 31, 2008, to register their claims with court-appointed insolvency manager Berthold Brinkmann. Creditors and other interested parties are encouraged to attend the meeting at 1:40 p.m. on April 14, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The Distict Court of Niebuell Meeting Hall 2 Justice Building Sylter Bogen 1 A 25899 Niebuell 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: Berthold Brinkmann Sechslingspforte 2 22087 Hamburg Germany The District Court of Niebuell opened bankruptcy proceedings against Flaggen & Werbung Sylt GmbH on Jan. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Flaggen & Werbung Sylt GmbH Frank Mazzurana Boetticherstr. 3 25980 Westerland Germany FR. NIEBURG: Claims Registration Period Ends March 28 ----------------------------------------------------- Creditors of Fr. Nieburg Moebelfabrik GmbH & Co KG have until March 28, 2008, to register their claims with court-appointed insolvency manager Hans-Achim Ernst. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on April 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Hans-Achim Ernst Bunsenstr. 3 32052 Herford Germany Tel: 05221/69306-0 Fax: +4952216930690 The District Court of Bielefeld opened bankruptcy proceedings against Fr. Nieburg Moebelfabrik GmbH & Co KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fr. Nieburg Moebelfabrik GmbH & Co KG Unterer Hellweg 2/4 32584 Loehne Germany FULLCAN-VERWALTUNGSGESELLSCHAFT: Claims Period Ends March 18 ------------------------------------------------------------ Creditors of FULLcan-Verwaltungsgesellschaft mbH have until March 18, 2008, to register their claims with court-appointed insolvency manager Dieter Rasehorn. 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 Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dieter Rasehorn Muehlweg 16 06108 Halle Germany The District Court of Erfurt opened bankruptcy proceedings against FULLcan-Verwaltungsgesellschaft mbH on Feb. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FULLcan-Verwaltungsgesellschaft mbH Attn: Axel Geyersbach und Frank Sobel, Manager Gutsstrasse 13 99310 Dornheim Germany FULLTIME GMBH: Claims Registration Period Ends March 28 ------------------------------------------------------- Creditors of Fulltime GmbH Personalservice have until March 28, 2008, to register their claims with court-appointed insolvency manager Matthias Bott. Creditors and other interested parties are encouraged to attend the meeting at 11:05 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 Konstanz Hall 102 First Floor Gerichtstrasse 9 78462 Konstanz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Matthias Bott Bodnegger Str. 19 88287 Gruenkraut Germany The District Court of Konstanz opened bankruptcy proceedings against Fulltime GmbH Personalservice on Feb. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fulltime GmbH Personalservice Byk-Gulden-Str. 18 78224 Singen Germany GASTSTATTE KARTOFFELHAUS: Creditors' Meeting Slated for March 20 ---------------------------------------------------------------- The court-appointed insolvency manager for Gaststatte Kartoffelhaus "Der Alte Fritz" Karl-Liebknecht-Strasse