/raid1/www/Hosts/bankrupt/TCREUR_Public/080312.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Wednesday, March 12, 2008, Vol. 9, No. 51
Headlines
A U S T R I A
BOGI PERSONALLEASING: Claims Registration Period Ends April 8
DOSTL & SCHRAMEL: Claims Registration Period Ends April 1
GENIX2 BAU: Claims Registration Period Ends April 8
HOLZ- UND MASSIVBAU: Creditors' Meeting Slated for March 26
REINDL & CO: Claims Registration Period Ends April 14
B E L G I U M
DELHAIZE GROUP: S&P Says Credit Rating Now Investment Grade
F R A N C E
AKERYS HOLDINGS: Moody's Holds Ba3 Rating on EUR300MM Notes
ALCATEL-LUCENT SA: Acquiring ReachView Technologies
ALCATEL-LUCENT SA: Costa Rican Utility Firm May Settle
ALCATEL-LUCENT SA: SanDisk Pursues Declaratory Suit vs Firm
KORREDEN SA: Moody's Holds Ba2 Corporate Family Rating
THOMSON SA: Moody's Lowers Long-Term Issuer Rating to Ba1
THOMSON SA: S&P Lowers Long-Term Corporate Credit Rating to BB
THOMSON: Ratings Actions Has Minimal Effect on Financing Plans
* Proskauer Rose Adds Jean L'Homme as Partner in Paris Office
G E R M A N Y
AKIN-PUTZ GMBH: Claims Registration Period Ends March 31
ALLHAUS IMMOBILIEN: Claims Registration Ends April 3
BAUFRANK CONSULT: Claims Registration Period Ends March 28
BECKER HOERGERATE: Claims Registration Period Ends March 20
BRUMM-ENGINEERING GMBH: Creditors' Meeting Slated for March 19
CENIMED GMBH: Creditors' Meeting Slated for April 15
CENIT BELEUCHTUNGSTECHNIK: Claims Registration Ends April 2
DGG DIENSTLEISTUNGS: Claims Registration Period Ends April 3
EBW GMBH: Claims Registration Ends April 2
F + H FACH: Creditors' Meeting Slated for March 6
FAM.BOS SPIELAUTOMATEN: Claims Registration Ends April 2
FCA FORSCHUNGSGESELLSCHAFT: Claims Period Ends March 27
GLT-BAUSERVICE: Claims Registration Period Ends April 2
HEIDELBERG GRUNDSTUECKSGESELLSCHAFT: Claims Filing Ends April 2
HENDRICKS PTFE: Claims Registration Period Ends April 2
J.P. PUPPE: Claims Registration Period Ends March 25
KLOECKNER PENTAPLAST: High Leverage Cues S&P to Cut Rating
LIGHTPROJECT GMBH: Claims Registration Period Ends March 28
TECHNOCLEAN VOGT: Claims Registration Period Ends April 2
H U N G A R Y
HUNGARIAN TELEPHONE: S&P Holds B+ Corporate Credit Rating
I R E L A N D
LUNAR FUNDING V: Moody's Cuts Rating on US$100 Mln Notes to Ba2
I T A L Y
ALITALIA SPA: Air France to Submit Bid Offer on Friday
K A Z A K H S T A N
AKTOBE MEL: Creditors Must File Claims by April 18
DURDANA LLP: Claims Deadline Slated for April 18
GAS SYSTEM: Claims Filing Period Ends April 18
GEIZER LLP: Creditors' Claims Due on April 18
INTERKOKS JSC: Claims Registration Ends April 18
NAVIGATOR REAL: Creditors Must File Claims by April 18
SJIJENY GAS: Claims Deadline Slated for April 18
T. CORPORATION LLP: Claims Filing Period Ends April 18
K Y R G Y Z S T A N
MARKETING-SERVICE BUREAU: Claims Filing Period Ends April 11
PINEROD METALS: Creditors Must File Claims by April 11
N E T H E R L A N D S
ELM BV: Moody's Junks Rating on Series 116 and 121 Notes
KHAMSIN CREDIT: S&P Downgrades Rating on LSS Notes to B+
R O M A N I A
FORD MOTOR: May Start Production at Romanian Plant End-2008
R U S S I A
FAR EASTERN SHIPPING: Moody's Holds B1 Corporate Family Rating
S P A I N
BANKINTER 16 FONDO: Moody's Rates EUR43 Million Notes at C
TDA 30 FONDO: Moody's Rates EUR8.2 Million Notes at (P)C
S W E D E N
BOMBARDIER INC: Unit Bags US$88.3MM Order from Three Airlines
S W I T Z E R L A N D
ABALONE JSC: Aargau Court Starts Bankruptcy Proceedings
CORTI RENOVATIONEN: Creditors Must File Claims by March 21
GASTHOF LOWEN: Aargau Court Starts Bankruptcy Proceedings
HEMA-CHEMIE LLC: Aargau Court Starts Bankruptcy Proceedings
KLADERA JSC: Creditors' Liquidation Claims Due by March 21
RONYA-TRANS LLC: Creditors' Liquidation Claims Due by March 21
SAROMA MAUERWERK: Aargau Court Starts Bankruptcy Proceedings
SUNSHINE PROPERTIES: Creditors Must File Claims by March 21
U K R A I N E
ACCESSORY LLC: Creditors Must File Claims by March 20
ATLANT CJSC: Creditors Must File Claims by March 20
DVS LLC: Creditors Must File Claims by March 20
HOROL MOVABLE: Creditors Must File Claims by March 20
KYIV CITY: S&P Rates Proposed US$250 Million Senior Bond at BB-
MANAGEMENT OF NON-DEPARTMENTAL: Creditors' Claims Due March 20
RADEKHOVSKY SUGAR: Creditors Must File Claims by March 20
UKRAINE-AGRO LLC: Creditors Must File Claims by March 20
UKRAINIAN INDUSTRIAL: Proofs of Claim Deadline Set March 20
U N I T E D K I N G D O M
ABITIBIBOWATER INC: Discloses Comprehensive Refinancing Plan
ABITIBIBOWATER INC: Commences Private Offer to Exchange Notes
ABITIBIBOWATER INC: Fitch Downgrades Unit's Debt Ratings
AIS REALISATIONS: Taps Joint Administrators from KPMG
ALLSAFE WINDOWS: Calls In Liquidators from Tenon Recovery
BAA LTD: To Transform Airports Amidst CAA Price Review
BATHROOM WORLD: Creditors' Meeting Slated for March 17
DUCIE COURT: Creditors' Meeting Slated for March 20
HOMECARE CONTRACTS: FFDR Saves Business from Liquidation
INITIAL CREDIT: High Court to Hear Winding-Up Petition on May 13
KEEN KLEEN: Brings In Liquidators from Mazars
NEW BOND: Moody's Junks Rating on Class D and E Notes
NORTHERN ROCK: Ends Sub-Prime Arrangements with Lehman Unit
SCOTTISH RE: Delays Filing of Form 10-K to April 1
SCOTTISH RE: Moody's Junks Preferred Stock Debt Rating
VISAGE CDO I: S&P Junks Ratings on All Notes Classes
* Fitch Says Further UK Non-conforming Reserve Fund Draws Likely
*********
=============
A U S T R I A
=============
BOGI PERSONALLEASING: Claims Registration Period Ends April 8
-------------------------------------------------------------
Creditors owed money by LLC BOGI Personalleasing (FN 236173p)
have until April 8, 2008, to file written proofs of claim to
court-appointed estate administrator Walter Kainz at:
Dr. Walter Kainz
Gusshausstrasse 23
1040 Vienna
Austria
Tel: 505 88 31
Fax: 505 94 64
E-mail: kanzlei@kainz-wexberg.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on April 22, 2008, for the
examination of claims.
The meeting of creditors will be held at:
The Trade Court of Vienna
Room 1607
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Feb. 20, 2008 (Bankr. Case No. 28 S 29/08f).
DOSTL & SCHRAMEL: Claims Registration Period Ends April 1
---------------------------------------------------------
Creditors owed money by OEG Dostl & Schramel (FN 278896t) have
until April 1, 2008, to file written proofs of claim to court-
appointed estate administrator Franz Hofbauer at:
Dr. Franz Hofbauer
Hauptplatz 6
3370 Ybbs/Donau
Austria
Tel: 07412/52731
Fax: 07412/52731-22
E-mail: dr.hofbauer@wibs.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on April 22, 2008, for the
examination of claims.
The meeting of creditors will be held at:
The Land Court of St. Poelten
Room 216
Second Floor
Old Building
St. Poelten
Austria
Headquartered in Wieselburg an der Erlauf, Austria, the Debtor
declared bankruptcy on Feb. 20, 2008 (Bankr. Case No. 14 S
15/08h).
GENIX2 BAU: Claims Registration Period Ends April 8
---------------------------------------------------
Creditors owed money by LLC GENIX2 Bau (FN 113404x) have until
April 8, 2008, to file written proofs of claim to court-
appointed estate administrator Georg Auteried at:
Dr. Georg Auteried
c/o Dr. Rainer W. Boehm
Altgasse 21/9
1130 Vienna
Austria
Tel: 876 47 98
Fax: 876 47 98 21
E-mail: office@auteried.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on April 22, 2008, for the
examination of claims.
The meeting of creditors will be held at:
The Trade Court of Vienna
Room 1606
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Feb. 20, 2008 (Bankr. Case No. 4 S 20/08f). Rainer W. Boehm
represents Dr. Auteried in the bankruptcy proceedings.
HOLZ- UND MASSIVBAU: Creditors' Meeting Slated for March 26
-----------------------------------------------------------
Creditors owed money by LLC Holz- und Massivbau (FN 257805a)
are encouraged to attend the first creditors' meeting at
11:45 a.m. on March 26, 2008.
The creditors' meeting will be held at:
The Land Court of Leoben
Hall IV
First Floor
Leoben
Austria
The Court will also examine the claims at 12:15 p.m. on April
16, 2008, at the same venue.
Creditors have until April 2, 2008, to file written proofs of
claim to court-appointed estate administrator Erwin Bajc at:
Dr. Erwin Bajc
Mittergasse 28
8600 Bruck an der Mur
Austria
Tel: 03862-51462
Fax: 03862-51462-10
E-mail: rechtsanwaelte@bzt.at
Headquartered in Kindberg, Austria, the Debtor declared
bankruptcy on Feb. 20, 2008 (18 S 2/08g).
REINDL & CO: Claims Registration Period Ends April 14
-----------------------------------------------------
Creditors owed money by LLC Reindl & Co KG (FN 25219m) have
until April 14, 2008, to file written proofs of claim to court-
appointed estate administrator Georg Buder at:
Dr. Georg Buder
Bethlehemstrasse 3
4020 Linz
Austria
Tel: 0732/771877
Fax: 0732/77187718
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on April 28, 2008, for the
examination of claims.
The meeting of creditors will be held at:
The Land Court of Linz
Room 522
Fifth Floor
Linz
Austria
Headquartered in Gallneukirchen, Austria, the Debtor declared
bankruptcy on Feb. 20, 2008 (Bankr. Case No. 12 S 9/08y).
=============
B E L G I U M
=============
DELHAIZE GROUP: S&P Says Credit Rating Now Investment Grade
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Belgian food retailer Delhaize Group
S.A. to 'BBB-' from 'BB+'. At the same time, S&P assigned an
'A-3' short-term corporate credit rating to Delhaize. The
outlook is stable.
"The upgrade reflects a steady improvement of the group's credit
metrics, which have now reached levels commensurate with an
investment-grade rating," said Standard & Poor's credit analyst
Nicolas Baudouin.
The ratings reflect Delhaize's solid regional positions, notably
through the U.S.-based Food Lion banner (51% of the store base),
which enjoys leading positions in southeastern and mid-Atlantic
markets and has a good track record of profitability. These
factors are mitigated by activity in the highly competitive U.S.
supermarket industry (70% of sales), the diversified formats it
operates in Belgium (23% of sales), higher operating margins but
smaller scale relative to major operators, and adequate debt
protection measures.
Delhaize reported total debt of EUR2.7 billion at year-end 2007.
"The stable outlook reflects Delhaize's good market position and
efficient operations, as well as the company's ability to
maintain adequate credit ratios despite the challenging climate
for supermarkets in the U.S.," said Mr. Baudouin. S&P expects
the company to use some of its internal cash flow for growth --
primarily through store development -- but free cash flow is set
to remain positive after dividends, so debt is likely to
continue decreasing gradually.
There is little leeway for substantial debt-financed
acquisitions and share buy-backs at the current rating level.
Furthermore, the outlook could be revised to negative if market
conditions deteriorate in the U.S., weakening cash flow
generation and financial measures. At current rating level,
Delhaize needs to maintain an adjusted FFO-to-debt ratio of more
than 25%, debt to EBITDA of less than 2.7x, and EBITDAR fixed
charge coverage in excess of 2.5x.
An outlook change to positive is unlikely, based on the
challenging U.S. operating environment for the retail industry
and assumptions that financial measures will only modestly
improve from the level achieved at year-end 2007.
===========
F R A N C E
===========
AKERYS HOLDINGS: Moody's Holds Ba3 Rating on EUR300MM Notes
-----------------------------------------------------------
Moody's Investors Service placed on review for possible
downgrade the Ba2 corporate family rating of Korreden
S.A.(consolidated with its subsidiaries), the ultimate holding
company for the French homebuilder Akerys, and the Ba3 rating
for the EUR300 million of Senior Floating Rate Notes due 2014
issued by Akerys Holdings S.A., a finance subsidiary of Korreden
S.A. The review was prompted by the increase in the company's
debt combined with a reduction in projected EBITDA for the
financial year ending June 2008. Furthermore, the weaker
operating environment facing homebuilders in France makes a
quick recovery unlikely.
Moody's says that the rating review will focus on these issues:
(1) the ability of the company to reduce physical
inventories going forward as a result of the slowing of
sales and the hike in cancellation rates thus far in
2008;
(2) the company's ability to continue generating positive
cash flow, thus safeguarding adequate liquidity;
(3) the company's ability to reduce costs sufficiently in
order to once again sustain profitable operations given
that house prices appear to be falling in France;
(4) the company's actions to take the necessary steps to
adjust its debt structure to the currently fragile
business environment; and
(5) the company's ability to substantially reverse its
current underperformance on key credit metrics before
2009, in particular, Net Adjusted Debt / EBITDA.
Headquartered in Toulouse, France, Akerys is the largest player
in the buy-to-let segment of the French homebuilding market with
8,571 housing units sold in 2006/07. The group's main
shareholder is investment holding company Qualis SCA (not
rated), with a 87% interest. At the end of the first half-year
2007/08, Dec. 31, 2007, the group reported revenues of
EUR385 million.
ALCATEL-LUCENT SA: Acquiring ReachView Technologies
---------------------------------------------------
Alcatel-Lucent SA has signed an agreement to acquire ReachView
Technologies.
Upon completion, this acquisition will enhance Alcatel-Lucent's
current professional services consulting practice, specifically,
OSS/BSS and software integration, enabling the company to
deliver advanced service assurance solutions to carriers and
industry and public sector customers.
"Communications service providers are looking for advanced
services assurance solutions, and by acquiring ReachView,
Alcatel-Lucent will be able to more quickly meet that need,"
said Andy Williams, President of Alcatel-Lucent's Services
business. "The skills of ReachView complement our own service
assurance competence centers. Together we will be able to offer
carriers the premier consulting and integration expertise they
are looking for, no matter where they are located."
"Carriers and large enterprises have complex networking,
services and business challenges, and they are looking for a
partner that can help them with their operations requirements
ReachView is excited to be joining Alcatel-Lucent to offer
customers our expertise in delivering quality of service and
service assurance solutions," said Ian Bresnahan, ReachView's
Chief Executive Officer. "Our combined skills, knowledge,
network expertise and access to multi-vendor labs, will give us
a competitive advantage in taking on very large and complex
transformation projects."
With approximately 85 employees, ReachView Technologies has
offices in Atlanta and Dallas. Bresnahan and the two other
principle partners, Todd Cochran and Josh Shipman, of ReachView
will continue with Alcatel-Lucent after the acquisition.
Alcatel-Lucent's service assurance solution provides tools to
ensure that end-user services provided by a carrier or
enterprise are continuously available and performing to service
level agreements and quality of service performance levels. The
tools monitor performance, availability and quality of
experience, detect possible failures while at the same time
assess services and impact on the user experience.
Alcatel-Lucent with ReachView will be able to provide a total
consulting practice that will help operators isolate, prioritize
and resolve network & server issues faster, through root cause
isolation and resolution management. These solutions are
tailored to match each operator's operational and business
process environment. Integrating a solution into an operator's
network, taking into consideration existing systems, service
definitions and adapting to the carrier's processes is a unique
competency of the combined companies.
The closing, which is subject to the satisfaction of certain
conditions, is expected to be April 1, 2008. The financial terms
of the agreement are not being disclosed.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors
Service downgraded to Ba3 from Ba2 the Corporate Family Rating
of Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
ALCATEL-LUCENT SA: Costa Rican Utility Firm May Settle
------------------------------------------------------
Costa Rican state-run electricity monopoly Instituto
Costarricense de Electricidad's legal director Giovanni Bonilla
told Business News Americas that the company is studying
Alcatel-Lucent SA's proposal to settle a judicial dispute with
the firm.
BNamericas relates that Instituto Costarricense demanded in
August 2007, that Alcatel-Lucent pay CRC31.2 billion for not
complying with a mobile telephony infrastructure contract
granted in 2002. Instituto Costarricense's executive president
Pedro Pablo Quiros had said that Alcatel-Lucent, which at the
time of the contract in question was called Alcatel, must
compensate the company for service failures and noncompliance of
the contract, BNamericas notes.
Mr. Bonilla told BNamericas that Alcatel-Lucent proposed to
install additional GSM lines, base stations, mobile coverage
improvement, and software developments for US$60 million.
The Alcatel-Lucent proposal has nothing to do with the
CRC10-billion Instituto Costarricense lawsuit for supposed
damages resulting from the scandal in which authorities were
allegedly bribed, BNamericas says, citing Mr. Bonilla.
Instituto Costarricense will continue seeking compensation for
damages through the pending lawsuit, Mr. Bonilla told
BNamericas.
According to BNamericas, Mr. Bonilla said that one of the
conditions to accepting the proposal is Instituto
Costarricense's assuming responsibility for the operations and
maintenance of the system due to the end of of its contractual
relationship with Alcatel-Lucent.
"We are analyzing the technical and legal aspects of the
proposal . . . We expect to reach a final solution in the next
weeks," Mr. Bonilla commented to BNamericas.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors
Service downgraded to Ba3 from Ba2 the Corporate Family Rating
of Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
ALCATEL-LUCENT SA: SanDisk Pursues Declaratory Suit vs Firm
-----------------------------------------------------------
SanDisk Corp. is pursuing an action seeking a declaratory
judgment of non-infringement and the invalidity of
Alcatel-Lucent SA's U.S. Patent Nos. 5,341,457 and RE39,080 in
the U.S. District Court for the Northern District of California.
Both patents relate to a technique for perceptual coding of
audio signals.
According to SanDisk, on May 11, 2007, it received notice from
Alcatel-Lucent alleging that its digital music players require a
license to the '457 and '080 patents.
SanDisk sued Lucent Technologies Inc. and Alcatel-Lucent on July
13, 2007, seeking declaratory judgment that it did not infringe
the two patents and that these patents are invalid.
Lucent and Alcatel-Lucent answered the SanDisk suit and
counterclaimed for infringement of the '080 patent. The two
companies also moved to dismiss the case without prejudice or
stay the case pending an appeal of a judgment involving the same
patent in the U.S. District Court for the Southern District of
California.
SanDisk has moved for summary judgment on its claims for
declaratory relief and for the dismissal of Lucent's patent
infringement counterclaim.
About Sandisk Corp.
Based in Milpitas, Calif., SanDisk Corp. designs, develops,
markets and manufactures products and solutions in a variety of
form factors using its flash memory, controller and firmware
technologies.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors
Service downgraded to Ba3 from Ba2 the Corporate Family Rating
of Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
KORREDEN SA: Moody's Holds Ba2 Corporate Family Rating
------------------------------------------------------
Moody's Investors Service placed on review for possible
downgrade the Ba2 corporate family rating of Korreden
S.A.(consolidated with its subsidiaries), the ultimate holding
company for the French homebuilder Akerys, and the Ba3 rating
for the EUR300 million of Senior Floating Rate Notes due 2014
issued by Akerys Holdings S.A., a finance subsidiary of Korreden
S.A. The review was prompted by the increase in the company's
debt combined with a reduction in projected EBITDA for the
financial year ending June 2008. Furthermore, the weaker
operating environment facing homebuilders in France makes a
quick recovery unlikely.
Moody's says that the rating review will focus on these issues:
(1) the ability of the company to reduce physical
inventories going forward as a result of the slowing of
sales and the hike in cancellation rates thus far in
2008;
(2) the company's ability to continue generating positive
cash flow, thus safeguarding adequate liquidity;
(3) the company's ability to reduce costs sufficiently in
order to once again sustain profitable operations given
that house prices appear to be falling in France;
(4) the company's actions to take the necessary steps to
adjust its debt structure to the currently fragile
business environment; and
(5) the company's ability to substantially reverse its
current underperformance on key credit metrics before
2009, in particular, Net Adjusted Debt / EBITDA.
Headquartered in Toulouse, France, Akerys is the largest player
in the buy-to-let segment of the French homebuilding market with
8,571 housing units sold in 2006/07. The group's main
shareholder is investment holding company Qualis SCA (not
rated), with a 87% interest. At the end of the first half-year
2007/08, Dec. 31, 2007, the group reported revenues of
EUR385 million.
THOMSON SA: Moody's Lowers Long-Term Issuer Rating to Ba1
---------------------------------------------------------
Moody's Investor's Service downgraded the long-term issuer
rating for Thomson S.A. to Ba1 from Baa3 and downgraded the
junior subordinated rating for Thomson's perpetual junior
subordinated bonds to Ba3 from Ba2 reflecting a LGD 6 loss given
default assessment given the deeply subordinated status of this
instrument. In accordance with its established practices,
Moody's concurrently assigned a Ba1 Corporate Family Rating to
Thomson S.A and expects to withdraw the long-term issuer rating
shortly. The outlook has been changed to stable.
Oliver Giani, Senior Analyst at Moody's said: "In fiscal year
2007, Thomson has failed to meet Moody's financial criteria for
a Baa3 rating. During the review process Moody's came to the
conclusion that it may take longer than originally anticipated
for Thomson to improve profitability and generation of cash flow
to a level appropriate for an investment grade company with high
business risk."
Thomson has largely completed its business transformation
process in 2007 which resulted in a few one-time factors
continuing during the year. Though Moody's recognizes that the
company has now built a portfolio of businesses with sound
competitive positions and a stable revenue stream from the
licensing portfolio, the agency also notes that Thomson still
has to prove that it can deliver on a sustainable basis a solid
operating performance from each of the components of its
business profile. In this context Moody's had expected Thomson
to achieve in 2007 a ratio of retained cash flow to net debt of
20% to defend the Baa3 long-term rating, a metric level which
was expected to be raised from 2008 onwards while operating
profit margin was expected to improve at least to mid single
digits. Actually, Thomson's 2007 performance was short of the
expectations built in the rating. Adjusted for one-time effects,
and contrary to Moody's anticipations, operating profit fell on
group level to EUR290 million, compared to EUR314 million
achieved in 2006 with an operating margin down to 5.1% (2006:
5.4%). Main reasons were a loss situation in the broadcast and
network business on the back of late product introductions and
inventory write-downs, lower pricing in the DVD business, start-
up costs in India and China in content services and a negative
currency translation effect, partly mitigated by the
implementation of cost cutting measures.
The negative trend in operating performance is mirrored in a
notably weakened generation of cash flow during 2007: Funds from
operations fell to EUR410 million (2006: EUR591 million),
retained cash flow fell to EUR303 million (2006: EUR478
million). The ratio of retained cash flow to net debt, one key
debt protection metric fell to 12% (2006: 18%) compared to the
20% level Moody's expected for 2007 for a stabilization at the
Baa3 rating level.
Management has taken a number of actions including the
continuation of cost cutting programs and operational measures
while continuing to build on the new business profile. Special
focus is given to the turnaround of the situation at Broadcast
and Networks: On the back of the introduction of new products,
cost cutting measures and in the absence of further inventory
write-downs at least a positive operating profit contribution
from this business should be achievable. However, despite the
fact that the 2007 results may be negatively affected by
exceptional effects, Moody's believes that the company in all
likelihood may be challenged to deliver during 2008 operating
performance and credit metrics commensurate with a Baa3 rating.
Going forward Moody's expects to see that the negative
development now has bottomed-out, but the improvements in key
credit metrics, most notably cash leverage and net debt
reduction, will take longer than previously expected.
Thomson's EUR500 million undated, deeply subordinated fixed-to-
float rate notes, issued in September 2005, rank junior to all
other creditors except shareholders. The junior subordinated
rating for this instrument of Ba3 deviates by one notch from the
outcome of Moody's LGD rating model to reflect the deterioration
of the credit profile of the company. Moody's also comments
that this notching is in line with its practice for deeply
subordinated hybrid instruments issued by a European corporate.
Downgrades:
Issuer: Thomson S.A.
-- Issuer Rating, Downgraded to Ba1 from Baa3
-- Junior Subordinated Regular Bond/Debenture, Downgraded to
Ba3 from Ba2
Assignments:
Issuer: Thomson S.A.
-- Probability of Default Rating, Assigned Ba1
-- Corporate Family Rating, Assigned Ba1
-- Junior Subordinated Regular Bond/Debenture, Assigned
97 - LGD6
Outlook Actions:
Issuer: Thomson S.A.
-- Outlook, Changed To Stable From Rating Under Review
The last rating action for Thomson has been on February 18,
2008, when Moody's placed the ratings under review for possible
downgrade.
Headquartered in Paris, France, Thomson is a leading provider of
technology, systems and service solutions for integrated media
and entertainment companies operating in three business
segments: Thomson's Services division offers end-to-end
management of services for the media and entertainment industry,
from finishing movie content (post-production) to content
replication of film and DVD and distribution. The Systems
division provides professional broadcasting and network
equipment for TV stations and other network operators as well as
broadband access products. The Technology division combines
Thomson's research and exploitation of its patent portfolio
through licensing programs. In fiscal year 2007 the company
generated revenues from continuing operations of EUR5.6 billion.
THOMSON SA: S&P Lowers Long-Term Corporate Credit Rating to BB
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating and senior unsecured rating on France-
based technology group Thomson to 'BB' from 'BBB-'. The outlook
is negative.
All ratings were removed from CreditWatch Negative, where they
were placed on Feb. 14, 2008, following the announcement of the
company's 2007 results and outlook for 2008.
The rating on Thomson's junior subordinated perpetual bond was
lowered to 'B' from 'BB' (three notches below the corporate
credit rating).
"The downgrade primarily reflects our concerns about the recent
margin and revenue trends at Thomson, which have resulted in
increasingly aggressive debt measures and lower covenant
headroom," said Standard & Poor's credit analyst Patrice
Cochelin.
Revenues grew by 2% at constant currencies in 2007, and
management did not commit to a higher growth rate for 2008
because of current demand uncertainties. The reported core
business EBITDA margin fell to 13.0% in 2007, from 16.5% in
2006, which was due in particular to a fall in the systems
business' margin to 5.4% from 9.1%. Although the company has
ongoing restructuring plans to support profitability over the
medium term, including notably cost cutting at the film
services, broadcast and network, and group overheads levels, and
has introduced new products in the systems division, S&P is
concerned about the maturity of the strongly cash-generative
physical media business, bulky orders in parts of the systems
division, and the need for ongoing support to the license-
producing patent portfolio. In addition, discontinued
operations are expected to constrain group cash flow generation
again in 2008.
THOMSON: Ratings Actions Has Minimal Effect on Financing Plans
--------------------------------------------------------------
Thomson SA disclosed that as a result of the release of its
annual results, the company's credit rating has been downgraded
from Baa3 to Ba1 by Moody's. The outlook has been changed from
negative to stable.
Standard & Poor's Ratings Services on the other hand, lowered
its long-term corporate credit rating and senior unsecured
rating on Thomson to 'BB' from 'BBB-'. The outlook is negative.
The Group's net interest costs are not expected to be
significantly affected by these changes, as none of the Group's
outstanding debt has costs linked to these rating changes. The
Group's interest charges are expected to decline in 2008 due to
lower US$ Libor rates.
Given the uncertain credit markets prevailing during the latter
half of 2007, Thomson took steps during 2007 and early 2008 to
raise additional long-term debt totaling EUR220 million. This
additional long-term debt, together with the Group's EUR1.75
billion syndicated facility, is expected to provide sufficient
liquidity to refinance to the Group's short-term and long-term
debt falling due in 2008 and 2009. The Group intends to improve
its ratios so as to return to investment grade, in line with its
financial policies.
Contrary to rumors, Thomson confirms that it has no plans for an
increase in its equity share capital.
The dividend proposed by the Board of Directors at EUR0.33 per
share was announced with Thomson's full year results on Feb. 14,
2008, and will be paid beginning of July, subject to approval
from the Annual General Meeting on 22 May 2008.
Thomson - World leader in digital video technologies
Thomson SA -- http://www.thomson.net/-- (Euronext Paris: 18453;
NYSE: TMS) provides technology, services, and systems to help
its Media, Entertainment & Communications clients - content
creators, content distributors and users of its technology -
realize their business goals and optimize their performance in a
rapidly changing technology environment.
* Proskauer Rose Adds Jean L'Homme as Partner in Paris Office
-------------------------------------------------------------
Jean L'Homme has joined Proskauer Rose LLP as a partner in
Paris.
Mr. L'Homme has particular experience in financial services
regulatory matters and project finance. He regularly advises a
wide range of major investment and commercial banks, hedge
funds, insurance companies, and investment service providers on
regulatory issues affecting their businesses and transactions
both in France and internationally, as well as governments and
governmental agencies around the world on the financing of
infrastructure projects, including many of the most recent,
high-profile projects in France and North Africa.
"We are extremely excited to add Jean to our corporate practice
and integrate his significant capabilities into our
international platform, which encompasses a growing range of
transactional, fund formation, financing, and regulatory work
across Europe and around the world," Yasmine Tarasewicz, head of
Proskauer's Paris office, said. "His presence will enable us to
continue our international expansion and demonstrates our
continued ability to attract the region's top legal talent."
Mr. L'Homme is the latest addition to Proskauer's Paris-based
corporate practice, which recently welcomed one of Europe's most
prominent groups of private equity lawyers, led by Daniel
Schmidt and Olivier Dumas. The firm also announced the
continued expansion of its new London office with the addition
of William Yonge, an experienced securities regulation and funds
lawyer, who joined as partner.
Mr. L'Homme joins Proskauer from the Paris office of Freshfields
Bruckhaus Deringer, where he was head of the firm's Finance and
Regulatory/Financial Services groups. He received his Business
and Tax Law degree from University of Paris II and is also a
graduate of the University of La Reunion.
Proskauer's Paris office provides legal advice to businesses and
entities in France, the European Union, and worldwide. Its core
practices include: general corporate transactions such as
mergers and acquisitions, private equity, corporate
restructurings, and joint ventures; commercial law including
competition law matters, distribution, and licensing; labor law,
with a particular emphasis on large corporate reorganizations
and litigation; tax including international taxation of
companies and individuals, tax structuring of corporate
transactions and investment funds, and personal tax planning;
and commercial litigation including appearances before various
French courts and international arbitration tribunals and acting
as "instructing solicitor" in cases before courts and
jurisdictions in which the firm is not admitted.
About Proskauer Rose
Founded in 1875, Proskauer Rose LLP - http://www.proskauer.com/
-- is an international law firm providing a wide variety of
legal services to clients worldwide from offices in Boca Raton,
Boston, London, Los Angeles, New Orleans, New York, Newark,
Paris, Sao Paulo, and Washington, D.C. The firm has wide
experience in all areas of practice important to businesses and
individuals including corporate finance, mergers and
acquisitions, general commercial litigation, corporate
governance matters, conducting internal corporate
investigations, white collar criminal defense, private equity
and fund formation, patent and intellectual property litigation
and prosecution, labor and employment law, real estate
transactions, bankruptcy and reorganizations, trusts and
estates, and taxation. Its clients span industries including
chemicals, entertainment, financial services, health care,
information technology, insurance, Internet, lodging and gaming,
manufacturing, media and communications, pharmaceuticals, real
estate investment, sports, and transportation.
=============
G E R M A N Y
=============
AKIN-PUTZ GMBH: Claims Registration Period Ends March 31
--------------------------------------------------------
Creditors of Akin-Putz GmbH have until March 31, 2008, to
register their claims with court-appointed insolvency manager
Henning Bosse.
Creditors and other interested parties are encouraged to attend
the meeting at 11:00 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 Braunschweig
E 01
Martinikirche 8
38100 Braunschweig
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:
Henning Bosse
Am Hafen 2
38112 Braunschweig
Germany
Tel: 0531/8891942
Fax: 0531/8891944
E-mail: braunschweig@brf-partner.de
The District Court of Braunschweig opened bankruptcy proceedings
against Akin-Putz GmbH on Feb. 21, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
Akin-Putz GmbH
Porschestrasse 52
38112 Braunschweig
Germany
ALLHAUS IMMOBILIEN: Claims Registration Ends April 3
----------------------------------------------------
Creditors of Allhaus Immobilien GmbH have until April 3, 2008 to
register their claims with court-appointed insolvency manager
Martin Schoebe.
Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on April 24, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Kempten
Hall 144/I
Residenzplatz 4-6
87435 Kempten
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:
Martin Schoebe
Ainmillerstr. 11
80801 Munich
Germany
Tel: 089/1893770
Fax: 089/18937750
The District Court of Kempten opened bankruptcy proceedings
against Allhaus Immobilien GmbH on Feb. 18, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
Allhaus Immobilien GmbH
Kemptener Strasse 10
87600 Kaufbeuren
Germany
BAUFRANK CONSULT: Claims Registration Period Ends March 28
----------------------------------------------------------
Creditors of Baufrank consult GmbH have until March 28, 2008, to
register their claims with court-appointed insolvency manager
Ralf-M. Doerr.
Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on May 16, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Ansbach
Meeting Room 1
Promenade 8
91522 Ansbach
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:
Ralf-M. Doerr
Merckstr. 5
91522 Ansbach
Germany
Tel: 0981/9531960
Fax: 0981/9531969
The District Court of Ansbach opened bankruptcy proceedings
against Baufrank consult GmbH on Feb. 26, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
Baufrank consult GmbH
Bahnhofstr. 37
91717 Wassertruedingen
Germany
BECKER HOERGERATE: Claims Registration Period Ends March 20
-----------------------------------------------------------
Creditors of Becker Hoergerate Handels- und Service GmbH have
until March 20, 2008, to register their claims with court-
appointed insolvency manager Norbert Kruse.
Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on April 10, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court Muenster
Meeting Hall 112 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:
Norbert Kruse
Bonhoefferstr. 10
48282 Emsdetten
Germany
Tel: 02572/875-0
Fax: +49257287533
The District Court of Court opened bankruptcy proceedings
against Becker Hoergerate Handels- und Service GmbH on
Feb. 22, 2008. Consequently, all pending proceedings against
the company have been automatically stayed.
The Debtor can be reached at:
Becker Hoergerate Handels- und Service GmbH
Matthiasstrasse 6
48431 Rheine
Germany
Attn: Ingeborg Becker, Manager
Freiherr-von-Beust-Strasse 9 a
48431 Rheine
Germany
BRUMM-ENGINEERING GMBH: Creditors' Meeting Slated for March 19
--------------------------------------------------------------
The court-appointed insolvency manager for Brumm-Engineering
GmbH i.L., Matthias Bayer will present his first report on the
Company's insolvency proceedings at a creditors' meeting at
10:30 a.m. on March 19, 2008.
The meeting of creditors and other interested parties will be
held at:
The District Court of Saarbruecken
Meeting Hall 13
First Floor
Vopeliusstrasse 2
66280 Sulzbach
Germany
The Court will also verify the claims set out in the insolvency
manager's report at 10:25 a.m. on April 25, 2008 at:
The District Court of Saarbruecken
Meeting Hall 24
Vopeliusstrasse 2
66280 Sulzbach
Germany
Creditors have until April 4, 2008 to register their claims with
the court-appointed insolvency manager.
The insolvency manager can be reached at:
Matthias Bayer
Kaiserstrasse 77
66386 St. Ingbert
Germany
Tel: (06894) 3876311
Fax: (06894) 382185
The District Court of Saarbruecken opened bankruptcy proceedings
against Brumm-Engineering GmbH i.L. on Feb. 12, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Brumm-Engineering GmbH i.L.
Attn: Raymond Brumm, Manager
Schlicht 28
66839 Schmelz
Germany
CENIMED GMBH: Creditors' Meeting Slated for April 15
----------------------------------------------------
The court-appointed insolvency manager for CENiMED GmbH, Hartwig
Albers will present his first report on the Company's insolvency
proceedings at a creditors' meeting at 11:40 a.m. on April 15,
2008.
The meeting of creditors and other interested parties will be
held at:
The District Court of Charlottenburg
Hall 218
Second Floor
Amtsgerichtsplatz 1
14057 Berlin
Germany
The Court will also verify the claims set out in the insolvency
manager's report at 11:25 a.m. on July 1, 2008, at the same
venue.
Creditors have until April 30, 2008, to register their claims
with the court-appointed insolvency manager.
The insolvency manager can be reached at:
Hartwig Albers
Luetzowstr. 100
10785 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy
proceedings against CENiMED GmbH on Feb. 27, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
CENiMED GmbH
Robert-Roessle-Str. 10
13125 Berlin
Germany
CENIT BELEUCHTUNGSTECHNIK: Claims Registration Ends April 2
-----------------------------------------------------------
Creditors of Cenit Beleuchtungstechnik GmbH have until April 2,
2008 to register their claims with court-appointed insolvency
manager Dr. Petra Mork.
Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on May 7, 2008, at which time the
insolvency manager will present her first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Dortmund
Meeting Hall 3.201
Second Floor
Gerichtsplatz 1
44135 Dortmund
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Dr. Petra Mork
Arndtstr. 28
44135 Dortmund
Germany
The District Court of Dortmund opened bankruptcy proceedings
against Cenit Beleuchtungstechnik GmbH on Feb. 20, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Cenit Beleuchtungstechnik GmbH
Robert-Bosch-Str. 2
59439 Holzwickede
Germany
Attn: Volker Werth, Manager
Altenhoferweg 64
58300 Wetter
Germany
DGG DIENSTLEISTUNGS: Claims Registration Period Ends April 3
------------------------------------------------------------
Creditors of DGG Dienstleistungs- und Gewerbepark Glashuette
GmbH have until April 3, 2008, to register their claims with
court-appointed insolvency manager Juergen Spliedt.
Creditors and other interested parties are encouraged to attend
the meeting at 10:05 a.m. on June 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 Charlottenburg
Hall 218
Second Floor
Amtsgerichtsplatz 1
14057 Berlin
Germany
The Court will also verify the claims set out in the insolvency
manager's report 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. Juergen Spliedt
Uhlandstr. 165/166
10719 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy
proceedings against DGG Dienstleistungs- und Gewerbepark
Glashuette GmbH on Jan. 3, 2008. Consequently, all pending
proceedings against the company have been automatically stayed.
The Debtor can be reached at:
DGG Dienstleistungs- und Gewerbepark Glashuette GmbH
Franzoesische Str. 8
10117 Berlin
Germany
EBW GMBH: Claims Registration Ends April 2
------------------------------------------
Creditors of EBW GmbH have until April 2, 2008 to register their
claims with court-appointed insolvency manager Dr. Klaus
Ortmueller.
Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on May 9, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Bonn
Meeting Hall S 2.22
Second Floor
Wilhelmstr. 23
53111 Bonn
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Dr. Klaus Ortmueller
Molzbergstrasse 1
57518 Betzdorf
Germany
Tel: 02741-9340-0
Fax: 02741-934033
The District Court of Bonn opened bankruptcy proceedings against
EBW GmbH on Feb. 13, 2008. Consequently, all pending
proceedings against the company have been automatically stayed.
The Debtor can be reached at:
EBW GmbH
Attn: Marion Wiesner, Manager
Elektrobau Waldbroel
Hillesberg 33 a
51545 Waldbroel
Germany
F + H FACH: Creditors' Meeting Slated for March 6
-------------------------------------------------
The court-appointed insolvency manager for F + H Fach + Handels
GmbH & Co. KG, Dr. Juergen Sander will present his first report
on the Company's insolvency proceedings at a creditors' meeting
at 9:25 a.m. on March 6, 2008.
The meeting of creditors and other interested parties will be
held at:
The District Court of Syke
Hall 112
Hauptstr. 5A
28857 Syke
Germany
The Court will also verify the claims set out in the insolvency
manager's report at 9:00 a.m. on May 15, 2008 at the same venue.
Creditors have until April 3, 2008 to register their claims with
the court-appointed insolvency manager.
The insolvency manager can be reached at:
Dr. Juergen Sander
Beeke 22
28844 Weyhe
Germany
Tel: 0421/806666
Fax: 0421/8066611
The District Court of Syke opened bankruptcy proceedings against
F + H Fach + Handels GmbH & Co. KG on Jan. 23, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
F + H Fach + Handels GmbH & Co. KG
Carl-Zeiss-Str. 18
28816 Stuhr
Germany
Attn: Carl Cirksena, Manager
Raherstr. 60
26605 Aurich
Germany
FAM.BOS SPIELAUTOMATEN: Claims Registration Ends April 2
--------------------------------------------------------
Creditors of Fam.Bos Spielautomaten GmbH have until April 2,
2008 to register their claims with court-appointed insolvency
manager Holger Zbick.
Creditors and other interested parties are encouraged to attend
the meeting at 8:25 a.m. on April 23, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Nordhorn
Hall 42
Seilerbahn 15
48529 Nordhorn
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: 02542/9178-10
Fax: 02542/9178-28
E-mail: inso@zbick-deckert.de
The District Court of Nordhorn opened bankruptcy proceedings
against Fam.Bos Spielautomaten GmbH on Feb. 28, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Fam.Bos Spielautomaten GmbH
Marienburger Strasse 27
48529 Nordhorn
Germany
Attn: Henk Bos, Manager
De Kalder 25
7576 WD Oldenzaal
Netherlands
FCA FORSCHUNGSGESELLSCHAFT: Claims Period Ends March 27
-------------------------------------------------------
Creditors of FCA Forschungsgesellschaft fuer Computeranwendungen
GmbH have until March 27, 2008, to register their claims with
court-appointed insolvency manager Horst Piepenburg.
Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on April 17, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Duesseldorf
Meeting Hall A 388
Muehlenstrasse 34
40213 Duesseldorf
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:
Horst Piepenburg
Heinrich-Heine-Allee 20
40213 Duesseldorf
Germany
The District Court of Duesseldorf opened bankruptcy proceedings
against FCA Forschungsgesellschaft fuer Computeranwendungen GmbH
on Feb. 25, 2008. Consequently, all pending proceedings against
the company have been automatically stayed.
The Debtor can be reached at:
Forschungsgesellschaft fuer Computeranwendungen GmbH
Hammer Dorfstrasse 39
40221 Duesseldorf
Germany
GLT-BAUSERVICE: Claims Registration Period Ends April 2
-------------------------------------------------------
Creditors of GLT-Bauservice GmbH have until April 2, 2008, to
register their claims with court-appointed insolvency manager
Stephan Mitlehner.
Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on May 14, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Potsdam
Hall 301
Third Floor
Nebenstelle Lindenstrasse 6
14467 Potsdam
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Stephan Mitlehner
Walter-Benjamin-Platz 6
10629 Berlin
Germany
The District Court of Potsdam opened bankruptcy proceedings
against GLT-Bauservice GmbH on Feb. 14, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
GLT-Bauservice GmbH
Rietzer Strasse 17
14776 Brandenburg
Germany
HEIDELBERG GRUNDSTUECKSGESELLSCHAFT: Claims Filing Ends April 2
---------------------------------------------------------------
Creditors of Heidelberg Grundstuecksgesellschaft mbH have until
April 2, 2008, to register their claims with court-appointed
insolvency manager Anja Geske.
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 her first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Braunschweig
Hall E 01
Martinikirche 8
38100 Braunschweig
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:
Anja Geske
Adolfstrasse 21
38102 Braunschweig
Germany
Tel: 0531-70733690
Fax: 0531-7075570
The District Court of Braunschweig opened bankruptcy proceedings
against Heidelberg Grundstuecksgesellschaft mbH on Feb. 4, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Heidelberg Grundstuecksgesellschaft mbH
Olfermannstrasse 7
38102 Braunschweig
Germany
HENDRICKS PTFE: Claims Registration Period Ends April 2
-------------------------------------------------------
Creditors of Hendricks PTFE Sonderbau GmbH have until April 2,
2008, to register their claims with court-appointed insolvency
manager Arne Meyer.
Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on April 23, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Cologne
Meeting Hall 14
Ground Floor
Luxemburger Strasse 101
50939 Cologne
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Arne Meyer
Bismarckstr. 27-29
50672 Cologne
Germany
The District Court of Cologne opened bankruptcy proceedings
against Hendricks PTFE Sonderbau GmbH on Feb. 14, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Hendricks PTFE Sonderbau GmbH
Oststr. 34-36
50189 Elsdorf
Germany
J.P. PUPPE: Claims Registration Period Ends March 25
----------------------------------------------------
Creditors of J.P. Puppe Bahnhofsbuchhandlung GmbH have until
March 25, 2008, to register their claims with court-appointed
insolvency manager Thomas Kloeckner.
Creditors and other interested parties are encouraged to attend
the meeting at 1:30 p.m. on April 15, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Weilheim
Meeting Hall E 007
Waisenhausstr. 5
Weilheim
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Thomas Kloeckner
Hans-Urmiller-Ring 11
82515 Wolfratshausen
Germany
Tel: 08171/38730100
Fax: 08171/38730222
The District Court of Weilheim opened bankruptcy proceedings
against J.P. Puppe Bahnhofsbuchhandlung GmbH on Feb. 26, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
J.P. Puppe Bahnhofsbuchhandlung GmbH
Possenhofener Str. 12
82319 Starnberg
Germany
KLOECKNER PENTAPLAST: High Leverage Cues S&P to Cut Rating
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Germany-based packaging company
Kloeckner Pentaplast S.A. to 'B-' from 'B'. The outlook is
stable.
"The rating action reflects sustained pressure on KP's earnings
and cash flows caused by high raw material costs and technical
problems," said Standard & Poor's credit analyst Jacob
Zachrison.
"Coupled with its highly leveraged capital structure, this makes
KP's financial position very weak, although we still expect the
group to continue to meet scheduled interest payments and adhere
to financial covenants in its loan documentation," he added.
The ratings on KP continue to reflect its highly leveraged
financial profile and exposure to high and volatile raw material
prices, factors that are partly offset by the group's leading
niche market position in Europe and North America, broad
geographic diversity and customer base, and stable end markets.
KP's recent performance has been weaker than expected, largely
as a result of high raw material costs, particularly in the U.S.
At the same time, efforts to increase prices have failed to
offset the negative effects on profitability.
Challenging operating conditions are expected to continue
through 2008 and could prevent improvement in the group's
profitability and cash flow protection measures.
The stable outlook reflects S&P's expectations that KP's
performance will stabilize, albeit at a weaker level than
before. This assumes a gradual pass through of input cost
inflation to customers and implementation of targeted cost
savings.
LIGHTPROJECT GMBH: Claims Registration Period Ends March 28
-----------------------------------------------------------
Creditors of Lightproject GmbH have until March 28, 2008, to
register their claims with court-appointed insolvency manager
Manfred Gottschalk.
Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on May 9, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Arnsberg
Meeting Room 328
Eichholzstr. 4
59821 Arnsberg
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:
Manfred Gottschalk
Wagenbergstr. 2
59759 Arnsberg
Germany
The District Court of Arnsberg opened bankruptcy proceedings
against Arnsberg on Feb. 25, 2008. Consequently, all pending
proceedings against the company have been automatically stayed.
The Debtor can be reached at:
Lightproject GmbH
Baufastrasse 19
58708 Menden
Germany
Attn: Norbert Kaltwasser, Manager
Baufastrasse 19
58708 Menden
Germany
TECHNOCLEAN VOGT: Claims Registration Period Ends April 2
---------------------------------------------------------
Creditors of TechnoClean Vogt Industriereinigungs- und
Wartungsgesellschaft mbH have until April 2, 2008, to register
their claims with court-appointed insolvency manager Christoph
Schulte-Kaubruegger.
Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on May 7, 2008, at which time the
insolvency manager will present his first report on the
insolvency proceedings.
The meeting of creditors will be held at:
The District Court of Dortmund
Hall 3.201
Second Floor
Gerichtsplatz 1
44135 Dortmund
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Dr. Christoph Schulte-Kaubruegger
Koenigswall 21
44137 Dortmund
Germany
The District Court of Dortmund opened bankruptcy proceedings
against TechnoClean Vogt Industriereinigungs- und
Wartungsgesellschaft mbH on Feb. 19, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
TechnoClean Vogt Industriereinigungs- und
Wartungsgesellschaft mbH
Attn: Ulrich Vogt, Manager
Stockumer Str. 167
44225 Dortmund
Germany
=============
H U N G A R Y
=============
HUNGARIAN TELEPHONE: S&P Holds B+ Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on Hungary-based fixed-line telecoms
operator Hungarian Telephone and Cable Corp. and all related
entities. The ratings were removed from CreditWatch, where they
were placed with negative implications on Dec. 21, 2007,
following the company's announcement of the purchase of 95.7% of
Austria-based Memorex Telex Communications AG (not rated), one
of the leading alternative telecom infrastructure providers in
Central and Eastern Europe, for EUR90.5 million (approximately
US$130.3 million). At the same time, Standard & Poor's affirmed
all ratings on HTCC's outstanding debt instruments. The outlook
is stable.
"The affirmation reflects HTCC's solid market position as the
incumbent operator in 14 of 54 concession areas in Hungary, its
strong progress in realizing cost synergies from the integration
of Invitel, acquired in April 2007, and the strengthened market
position and revenue diversification of HTCC's wholesale
business in Eastern and Southeastern Europe through the
acquisition of Memorex," said Standard & Poor's credit analyst
Matthias Raab.
The ratings are constrained by the group's need to offset
declining fixed-line voice revenues through growing wholesale
and broadband-Internet revenues, and its high leverage. In
addition, free operating cash flow generation is likely to be
restricted in 2008 by high capital expenditure requirements,
restructuring and integration costs, and hedging payments.
Pro forma the Memorex acquisition, lease-adjusted total debt
amounted to EUR726 million (EUR708 million unadjusted),
resulting in an adjusted total debt-to-EBITDA ratio of 5.1x and
4.5x, excluding one-time effects and restructuring costs at
fiscal year-end Dec. 31, 2007.
"The stable outlook reflects our expectation that HTCC can
extract significant cost synergies from the combination of
Invitel's and HTCC's operations, and to a lesser extent from the
integration of Memorex, which should allow the company to
increase its EBITDA from 2008 and gradually moderate its still
aggressive leverage," said Mr. Raab.
=============
I R E L A N D
=============
LUNAR FUNDING V: Moody's Cuts Rating on US$100 Mln Notes to Ba2
---------------------------------------------------------------
Moody's Investors Service downgraded and left on review for
further downgrade two classes of notes issued by Lunar Funding V
plc.
These rating actions are a response to credit deterioration in
the underlying portfolio of this synthetic CDO referencing
mainly US RMBS of the 2005 and 2006 vintages. Moody's will
continue to monitor all deals with exposure to US subprime RMBS,
and will take further actions in respect of all CDOs placed
under review for downgrade once the extent of actual downgrades
to US RMBS vintages becomes known.
The rating actions are:
(1) Series 2007-36 US$50,000,000 Notes due 2052
Current Rating: Baa3, under review for downgrade
Prior Rating: Aa1, under review for downgrade
(2) Series 2007-37 US$100,000,000 Notes due 2052
Current Rating: Ba2 under review for downgrade
Prior Rating: Aa3, under review for downgrade.
=========
I T A L Y
=========
ALITALIA SPA: Air France to Submit Bid Offer on Friday
------------------------------------------------------
The Board of Directors of Air France-KLM SA authorized on
March 10, 2008, the submission on March 14, 2008, an offer for
Alitalia S.p.A. subject to suspensive conditions, including
notably the commitment of the trade unions.
The integration of Alitalia into the Air France-KLM group will
reinforce its position as a European leader and will also help
Alitalia to regain its status as a national flag carrier.
Alitalia and Air France are in the last week of exclusive talks
and have until March 14, 2008, to present a final binding offer
to the Italian government, which thereafter will decide whether
to sell its stake to the French carrier.
Air France will seek approval from the new Italian government
chosen following the April 13-14, 2008, snap elections, for any
agreement to acquire Italy stake in Alitalia, since exclusive
talks may go beyond the April elections due to various
procedural steps.
The Forza Italia opposition party, headed by former Prime
Minister Silvio Berlusconi and seen to win the upcoming
election, said it will respect the possible sale of stake in
Alitalia to Air France if it emerges as the victor.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The carrier serves routes to Asia, Europe, North
America and South America.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
===================
K A Z A K H S T A N
===================
AKTOBE MEL: Creditors Must File Claims by April 18
--------------------------------------------------
JSC Aktobe Mel Complex has declared insolvency. Creditors have
until April 18, 2008, to submit written proofs of claims to:
JSC Aktobe Mel Complex
Eset-Batyr Str. 114a-4
Aktobe
Aktube
Kazakhstan
DURDANA LLP: Claims Deadline Slated for April 18
------------------------------------------------
The Specialized Inter-Regional Economic Court of Kyzylorda has
declared LLP Durdana insolvent on Jan. 23, 2008.
Creditors have until April 18, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of Kyzylorda
Jahaev Str. 71
Kyzylorda
Kazakhstan
Tel: 8 (32422) 27-23-65
GAS SYSTEM: Claims Filing Period Ends April 18
----------------------------------------------
LLP Gas System Kazakhstan has declared insolvency. Creditors
have until April 18, 2008, to submit written proofs of claims
to:
LLP Gas System Kazakhstan
Shuhov Str. 42a
Petropavlovsk
North Kazakhstan
Kazakhstan
GEIZER LLP: Creditors' Claims Due on April 18
---------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Geizer insolvent.
Creditors have until April 18, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of West Kazakhstan
Seifullin Str. 37
Uralsk
West Kazakhstan
Kazakhstan
INTERKOKS JSC: Claims Registration Ends April 18
------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared JSC Interkoks insolvent.
Creditors have until April 18, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of Karaganda
Jambyl Str. 9
Karaganda
Kazakhstan
NAVIGATOR REAL: Creditors Must File Claims by April 18
------------------------------------------------------
LLP Navigator Real Estate has declared insolvency. Creditors
have until April 18, 2008, to submit written proofs of claims
to:
LLP Navigator Real Estate
Furmanov Str. 76-30
Almaty
Kazakhstan
SJIJENY GAS: Claims Deadline Slated for April 18
------------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl has
declared JSC Sjijeny Gas insolvent on December 26, 2007.
Creditors have until April 18, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of Jambyl
Seleimenov Str. 17 (11a)
Taraz
Jambyl
Kazakhstan
Tel: 8 (7262) 45-25-52
T. CORPORATION LLP: Claims Filing Period Ends April 18
------------------------------------------------------
LLP T. Corporation has declared insolvency. Creditors have
until April 18, 2008, to submit written proofs of claims to:
LLP T. Corporation
Karasai batyr Str. 88
Almaty
Kazakhstan
===================
K Y R G Y Z S T A N
===================
MARKETING-SERVICE BUREAU: Claims Filing Period Ends April 11
------------------------------------------------------------
LLC Marketing-Service Bureau has declared insolvency. Creditors
have until April 11, 2008 to submit written proofs of claim to:
LLC Marketing-Service Bureau
Sumskoy Side Street 562
Bishkek
Kyrgyzstan
PINEROD METALS: Creditors Must File Claims by April 11
------------------------------------------------------
LLC Pinerod Metals Ltd. has declared insolvency. Creditors have
until April 11, 2008 to submit written proofs of claim.
Inquiries can be addressed to (0-545) 96-78-88.
=====================
N E T H E R L A N D S
=====================
ELM BV: Moody's Junks Rating on Series 116 and 121 Notes
--------------------------------------------------------
Moody's Investors Service downgraded EUR155 million of Constant
Proportion Debt Obligations exposed to portfolios of financial
names. The affected CPDOs represent 100% of the existing
"financial CPDOs" and 5.5% of all CPDOs rated by Moody's.
These downgrades reflect the negative Net Asset Value impact of
the continuing widening and the increased volatility of the
spreads associated with financial names underlying these CPDOs,
particularly monolines and investment banks. The weighted
average credit spread of the underlying portfolios widened by
approximately 90bps over the last 10 days.
The current ratings are mainly driven by the probability that
the NAV will reach the cash out triggers (around 10%) leading to
a total unwind of the structure, and an approximate 90% loss to
investors. The NAVs for all of these deals are currently in the
15% to 43% range. The NAV is the aggregate value of the assets
of the SPV. This is generally the sum of the cash deposit
account and the marked-to-market value of the leveraged credit
default swap position.
The rating action on series 104 takes into account the
restructuring which took place on 7th March 2007, deleveraging
the structure by 33%.
Moody's will continue to closely monitor the development of the
spreads of financial names.
The rating actions are:
Series 104 EUR135,000,000 Financial Basket Tyger Notes Due 2017
Issued By Elm B.V.
-- Current rating: Baa2
-- Prior rating: Aa3
Series 116 EUR15,000,000 Financial Basket Tyger Notes Due 2017
Issued By Elm B.V.
-- Current rating: Caa1
-- Prior rating: Aa3
Series 121 EUR5,000,000 Financial Basket Tyger Notes Due 2017
Issued By Elm B.V.
-- Current rating: Caa1
-- Prior rating: Aa3
KHAMSIN CREDIT: S&P Downgrades Rating on LSS Notes to B+
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on three
leveraged super-senior notes issued by:
* Credit and Repackaged Securities Ltd.'s series 2006-14,
* Khamsin Credit Products (Netherlands) B.V.'s series 10, and
* REVE SPC's series 2007-42.
S&P also removed the ratings from CreditWatch with negative
implications.
The rating actions follow an increase in spreads or loss
assumptions for the underlying assets over the past month.
LSS transactions contain both credit and market value risks
associated with the underlying portfolio. These transactions
have a loss and/or market value trigger that, if breached, would
lead to an unwind or deleveraging event. Market value triggers
are based on the weighted average portfolio spread and portfolio
losses at a given point in time. Loss triggers are generally
based on losses incurred by the referenced portfolios. Standard
& Poor's assesses the likelihood of breaching the attachment
point, or credit support available to the tranche (credit risk),
as well as the probability of breaching a specific spread
trigger (market value risk) when assigning a rating.
Ratings Lowered and Removed from Creditwatch Megative
Credit and Repackaged Securities Ltd.
Series 2006-14
Rating
------
Class To From
----- -- ----
Notes BBB AAA/Watch Neg
Khamsin Credit Products (Netherlands) B.V.
Series 10
Rating
------
Class To From
----- -- ----
LvrdSprSr B+ AAA/Watch Neg
REVE SPC
Series 2007-42
Rating
------
Class To From
----- -- ----
Notes A- AAA/Watch Neg
=============
R O M A N I A
=============
FORD MOTOR: May Start Production at Romanian Plant End-2008
-----------------------------------------------------------
Ford Motor Co. expects to commence production at its Automobile
Craiova site in Romania at the end of 2008 despite a recent
order from the European Commission compelling the government of
Romania to recover EUR27 million in illegal state aid from the
car maker, Adriana Turcu writes for the Nine o'Clock News.
Mihai Voicu, Romania's Minister for the relation with
Parliament, said the government and Ford will respect the
Commission's decision, Nine o'Clock News relates.
"From this point of view there have been no opinions against the
EC decision, neither from our side nor from Ford," Mr. Voicu was
quoted by Nine o'Clock as saying. "Of course the production in
Craiova could have started several months ago."
Varujan Vosganian, Romania's Minister of Economy and Finances,
said Ford will evaluate the Commission's demand and review what
it could receive as state aid, Nine o'Clock News relates.
Romania, in turn, will respect commitments taken by Ford.
Meanwhile, the Authority for State Asset Recovery will ask the
Commission to explain the method in determining the amount of
illegal state aid granted to Ford.
"We have an obscure point regarding the way in which the
Commission has calculated its quantum and we want to have that
point of view too in order to avoid erring again" Constantin
Botez, the AVAS deputy president for post-privatization, was
quoted by Mediafax as saying. "If the EC does not send us more
information, we will ask for clarifications. We want to see
what the European commissioners had in mind when they took the
decision, given that after the transaction is finalized AVAS
would have to monitor whether the contractual terms have been
respected by Ford."
Mr. Botez, however, clarified that AVAS is not contesting the
Commission's decision, but just want to see how it could recover
the state aid.
As reported in the TCR-Europe on Feb. 28, 2008, the European
Union executive ruled that Romania handed illegal state aid to
Daewoo Craiova, formerly Daewoo Automobile Romania S.A., during
the car's sale to Ford in September 2007. Following a five-
month probe, EC said that conditions binded to the sale of a 72%
stake in Craiova -- including minimum production level and
employment guarantees -- resulted to lower price than if the
sale was unconditional, which amounted to illegal aid.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F)
-- http://www.ford.com/-- manufactures or distributes
automobiles in 200 markets across six continents. With about
260,000 employees and about 100 plants worldwide, the company's
core and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The
company provides financial services through Ford Motor Credit
Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter-Europe on Feb. 18,
2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford
Motor Company and Ford Motor Credit Company at 'B', and
maintained the Rating Outlook at Negative.
As reported in the Troubled Company Reporter-Europe on Nov. 20,
2007, Moody's Investors Service affirmed the long-term ratings
of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior
secured, Caa1 senior unsecured, and B3 probability of default),
but changed the rating outlook to Stable from Negative and
raised the company's Speculative Grade Liquidity rating to SGL-1
from SGL-3. Moody's also affirmed Ford Motor Credit Company's
B1 senior unsecured rating, and changed the outlook to Stable
from Negative. These rating actions follow Ford's announcement
of the details of the newly ratified four-year labor agreement
with the UAW.
===========
R U S S I A
===========
FAR EASTERN SHIPPING: Moody's Holds B1 Corporate Family Rating
--------------------------------------------------------------
Moody's Interfax Rating Agency a A2.ru national scale rating to
Far Eastern Shipping Company.
Concurrently, Moody's Investors Service has affirmed the
company's existing global scale rating, namely the B1 corporate
family rating. The outlook on the ratings is stable. Moscow-
based Moody's Interfax is majority-owned by Moody's, a leading
global rating agency.
According to Moody's and Moody's Interfax, the B1 global scale
rating reflects the company's global default and loss
expectation, while the A2.ru NSR reflects the standing of the
company's credit quality relative to its domestic peers.
Headquartered in Moscow, FESCO is an integrated logistics group
active in three business segments: shipping (66% of H1 2007
revenues); container terminals (16%); and railway transportation
(18%). FESCO's main shareholder is Industrial Investors Group,
which controls 62.0% of the Russian group. Other important
shareholders are East Capital and Genesis Investment Management,
two investment funds with stakes of 9.8% and 3.0%, respectively,
and former shareholders of Transgarant (11.3%), which was
acquired by FESCO in 2006. The remaining shares are in free
float. In FY2006, FESCO reported revenues of USD571 million.
The A2.ru NSR reflects the same positive factors and is
constrained by the same challenges as the B1 corporate family
rating, with all the factors and challenges detailed in Moody's
Investors Service's earlier press release.
The global scale rating outlook remains stable incorporating
Moody's expectation that FESCO will continue to enjoy a strong
and stable operating profile and that its shareholders, as
indicated in FESCO's business plan, will provide equity
injections sufficient to maintain healthy leverage and to
prevent any liquidity problems in 2008. The upward and downward
drivers for the company's NSRs remain the same as those
previously identified by Moody's for its global scale rating.
=========
S P A I N
=========
BANKINTER 16 FONDO: Moody's Rates EUR43 Million Notes at C
----------------------------------------------------------
Moody's Investors Service assigned definitive credit ratings to
these classes of notes issued by Bankinter 16 Fondo de
Titulizacion de Activos:
-- Aaa to the EUR1,882.0 million Series A notes
-- Aa2 to the EUR46.0 million Series B notes
-- A3 to the EUR38.0 million Series C notes
-- Ba2 to the EUR34.0 million Series D notes
-- C to the EUR43.0 million Series E notes.
The transaction represents the securitisation of Spanish
residential mortgage loans originated by Bankinter (Aa3/P-1).
The assets supporting the notes are prime mortgage loans secured
on properties located in Spain. The portfolio will be serviced
by Bankinter.
The ratings of the notes are based upon the analysis of the
characteristics of the mortgage pool backing the notes, the
protection the notes receive from credit enhancement against
defaults and arrears in the mortgage pool, the legal and
structural integrity of the issue and the credit quality of the
parties involved in the transaction.
According to Moody's, this deal benefits from strong features,
including: (1) basis swap by which the index reference rates on
the assets are exchanged against the index reference rate on the
notes; (2) a reserve fund that is fully funded upfront to cover
a potential shortfall in interest and principal; (3) an 18-month
artificial write-off mechanism; (4) Good performance on previous
Bankinter deals; However, Moody's notes that the deal also has
weaknesses, including (1) excess spread is very limited; (2)
Pro-rata amortisation of the B, C and D Series of notes leads to
reduced credit enhancement of the senior class in absolute
terms; (3) 9.19% corresponds to second-lien residential
mortgages; (4) 43.82% of the portfolio corresponds to flexible
mortgages; (5) 5.7% of the portfolio corresponds to second homes
and (6) 5.4% of the portfolio corresponds to commercial
properties.
The definitive ratings address the expected loss posed to
investors by the legal final maturity. The structure allows for
timely payment of interest and ultimate payment of principal at
par on or before the legal final maturity date. Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed but may have a
significant effect on the yield to investors.
TDA 30 FONDO: Moody's Rates EUR8.2 Million Notes at (P)C
--------------------------------------------------------
Moody's Investors Service has today assigned provisional credit
ratings to four series of "Bonos de Titulizacion de Activos"
issued by TDA 30 Fondo de Titulizacion de Activos, a Spanish
Asset Securitisation Fund that has been created by Europea de
Titulizacion, S.G.F.T, S.A.
Moody's has assigned these ratings:
-- (P)Aaa to the EUR364.2 million Series A notes
-- (P) A1 to the EUR8.8 million Series B notes
-- (P)Baa2 to the EUR7 million Series C notes
-- (P)C to the EUR8.2 million Series D notes
TDA 30 represents the securitization of Spanish Prime
residential mortgages, with an average LTV of 62.45% originated
by Banca March; the portfolio will also be serviced by Banca
March.
Moody's provisional ratings address the expected loss posed to
investors by the legal final maturity. In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par on or before the rated final legal
maturity date on Series A/B/C, and for ultimate payment of
interest and principal at par on or before the rated final legal
maturity date on Class D. The ratings do not address full
redemption of the notes on the expected maturity date. Moody's
ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed,
but may have a significant effect on yield to investors.
Moody's ratings address only the credit risks associated with
the transaction. Other non-credit risks have not been addressed
but may have a significant effect on the yield to investors.
The ratings of the Notes are based upon the analysis of the
characteristics of the mortgage pool backing the Notes, the
protection the Notes receive from credit enhancement against
defaults and arrears in the mortgage pool, the legal and
structural integrity of the issue and the credit quality of the
parties involved in the transaction.
In Moody's opinion, the collateral backing the notes are of good
quality, yet there are certain issues that have been taken into
account in Moody's analysis: (1) some mortgages are granted to
non residents, (2) some mortgages are granted for the purpose of
financing secondary residences, (3) some mortgages are
originated via real estate brokers, (4) high LTV loans are
present in the portfolio (5) and there is a very strong regional
concentration in Canary Islands and in Balearic Islands.
Moody's based its rating on (1) a evaluation of the underlying
portfolio of mortgage loans securing the structure, and on (2)
the transaction's structural protections which include the
subordinate position of the Series B and C Subordinate notes
with respect to the Series A notes, the strength of the cash
flows, which include the reserve fund and any excess spread
available to cover losses.
Moody's issues provisional ratings in advance of the final sale
of securities and these ratings represent Moody's preliminary
opinion. Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavour to assign
definitive rating to the Notes. A definitive rating may differ
from a provisional rating.
===========
S W E D E N
===========
BOMBARDIER INC: Unit Bags US$88.3MM Order from Three Airlines
-------------------------------------------------------------
Bombardier Aerospace, a subsidiary of Bombardier Inc.,
disclosed that SAS Scandinavian Airlines and three of its
affiliate airlines have signed firm orders for 27 regional jets
and turboprops and have taken options on an additional 24
aircraft. Estonian Air of Tallinn, Estonia and SAS have placed
firm orders for 13 Bombardier CRJ900 NextGen regional jets and
have taken options on an additional 17, while Wideroe's
Flyveselskap A/S of Bodo, Norway and airBaltic of Riga, Latvia
have ordered 14 Q400 NextGen high-speed turboprop airliners and
have taken options on seven more.
The value of the combined firm orders based on CRJ900 NextGen
and Q400 NextGen list prices is approximately US$883 million.
The value of the orders could increase to approximately
US$1.75 billion if all options are exercised.
"The firm order for 27 aircraft will bring a rejuvenated premium
product to our customers," Mats Jansson, president and CEO, SAS
Group, said. "The CRJ900 and Q400 NextGen aircraft are well-
suited to our operations in Northern Europe, where our customers
expect comfortable and environmentally friendly travel."
"We are proud to extend our long-standing partnership with SAS
and its partner airlines," Steven Ridolfi, president, Bombardier
Regional Aircraft, said. "This order is not only a milestone in
terms of size and value, but is a testament to the strength of
our relationship. SAS has been a Bombardier customer for eight
years, Wideroe for 50 years, and now we welcome airBaltic and
Estonian Air to our family. We are also very pleased that SAS
and its affiliates have chosen our NextGen family, both
turboprops and jets, to augment their fleets."
Olev Schults, chairman, Supervisory Board, Estonian Air and
Mr. Jansson said their airlines require aircraft with less
capacity than their mainline jets. "The CRJ900 NextGen jet
offers the best combination of performance, operating economics
and passenger comfort," they said.
Per Arne Watle, president and chief executive officer of Wideroe
and Bertolt Flick, president and chief executive officer of
airBaltic said the features of the Q400 NextGen airliner made
the aircraft a very attractive addition to their fleets. "The
performance, comfort and superb operating economics make the
Q400 NextGen turboprop a highly effective product," they said.
"airBaltic will start substituting its current Fokker 50 fleet
with Q400 NextGen aircraft in 2009 thus increasing the capacity
and efficiency of the airline's regional operations," Mr. Flick
added.
The transactions increase firm orders for CRJ900/CRJ900 NextGen
airliners to 242 aircraft, with 145 delivered at Jan. 31, 2008.
Q400/Q400 NextGen aircraft firm orders now stand at 296
aircraft, with 190 delivered as of Jan. 31, 2008.
With regard to the Q400 landing gear incidents in 2007
Bombardier, SAS and Goodrich, the manufacturer of the landing
gear, have come to a mutually satisfactory agreement -- the
terms of which are confidential.
About Bombardier Inc.
Headquartered in Canada, Bombardier Inc. --
http://www.bombardier.com/-- (TSE:BBD.B) manufactures
innovative transportation solutions, from regional
aircraft and business jets to rail transportation equipment,
systems and services. The company also has offices in the U.S.,
Northern Ireland, United Kingdom, Germany, Switzerland, Sweden,
Austria, Australia and China.
* * *
As reported in the TCR-Europe on March 5, 2008, Standard &
Poor's Ratings Services said its ratings, including the 'BB'
long-term corporate credit rating, on Montreal-based Bombardier
Inc. remain on CreditWatch with positive implications, pending a
review of the company's future business and financial plans.
In January 2008, Fitch Ratings upgraded Bombardier Inc.'s
ratings, including the company's Issuer Default Rating to 'BB'
from 'BB- ', and removed the ratings from Rating Watch Positive
following the company's early redemption of approximately
US$1.0 billion of debt. The Rating Outlook is Positive.
=====================
S W I T Z E R L A N D
=====================
ABALONE JSC: Aargau Court Starts Bankruptcy Proceedings
-------------------------------------------------------
The Bankruptcy Service of Aargau commenced bankruptcy
proceedings against JSC Abalone on Feb. 11, 2008.
The Bankruptcy Service of Aargau can be reached at:
Bankruptcy Service of Aargau
Amtsstelle Baden
5402 Baden AG
Switzerland
The Debtor can be reached at:
JSC Abalone
Guterstrasse 9
8957 Spreitenbach
Baden AG
Switzerland
CORTI RENOVATIONEN: Creditors Must File Claims by March 21
----------------------------------------------------------
Creditors of JSC Corti Renovationen have until March 21, 2008,
to submit their claims to:
Stefano Dalla Sega
Liquidator
Klosterstrasse 19
8406 Winterthur ZH
Switzerland
The Debtor can be reached at:
JSC Corti Renovationen
Winterthur ZH
Switzerland
GASTHOF LOWEN: Aargau Court Starts Bankruptcy Proceedings
---------------------------------------------------------
The Bankruptcy Service of Aargau commenced bankruptcy
proceedings against LLC Gasthof Lowen on Feb. 6, 2008.
The Bankruptcy Service of Aargau can be reached at:
Bankruptcy Service of Aargau
Amtsstelle Brugg
5201 Brugg AG
Switzerland
The Debtor can be reached at:
LLC Gasthof Lowen
Alte Landstrasse 1
5027 Herznach
Laufenburg AG
Switzerland
HEMA-CHEMIE LLC: Aargau Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Service of Aargau commenced bankruptcy
proceedings against LLC Hema-Chemie on Feb. 11, 2008.
The Bankruptcy Service of Aargau can be reached at:
Bankruptcy Service of Aargau
Amtsstelle Brugg
5201 Brugg AG
Switzerland
The Debtor can be reached at:
LLC Hema-Chemie
Rutihofstrasse 162
5462 Siglistorf
Zurzach AG
Switzerland
KLADERA JSC: Creditors' Liquidation Claims Due by March 21
----------------------------------------------------------
Creditors of JSC Kladera have until March 21, 2008, to submit
their claims to:
Dr. Andreas Renggli
Baarerstrasse 8
6300 Zug
Switzerland
The Debtor can be reached at:
JSC Kladera
Zug
Switzerland
RONYA-TRANS LLC: Creditors' Liquidation Claims Due by March 21
--------------------------------------------------------------
Creditors of LLC Ronya-Trans have until March 21, 2008, to
submit their claims to:
Sonja Hug
Chaletweg 2
4853 Murgenthal
Zofingen AG
Switzerland
The Debtor can be reached at:
LLC Ronya-Trans
Murgenthal
Zofingen AG
Switzerland
SAROMA MAUERWERK: Aargau Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
The Bankruptcy Service of Aargau commenced bankruptcy
proceedings against LLC SAROMA Mauerwerk & Schalung on Feb. 11,
2008.
The Bankruptcy Service of Aargau can be reached at:
Bankruptcy Service of Aargau
Amtsstelle Brugg
5201 Brugg AG
Switzerland
The Debtor can be reached at:
LLC SAROMA Mauerwerk & Schalung
Landstrasse 71
4303 Kaiseraugst
Rheinfelden AG
Switzerland
SUNSHINE PROPERTIES: Creditors Must File Claims by March 21
-----------------------------------------------------------
Creditors of Sunshine Properties Holding Ltd. have until
March 21, 2008, to submit their claims to:
Dr. Franz J. Meng
Liquidator
Nordstrasse 19
8006 Zurich
Switzerland
The Debtor can be reached at:
Sunshine Properties Holding Ltd.
Zurich
Switzerland
=============
U K R A I N E
=============
ACCESSORY LLC: Creditors Must File Claims by March 20
-----------------------------------------------------
Creditors of LLC Accessory (code EDRPOU 33051880) have until
March 20, 2008, to submit written proofs of claim to:
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 31, 2008.
The case is docketed as 15/936-b.
The Debtor can be reached at:
LLC Accessory
Volinskaya Str. 48/50
03151 Kiev
Ukraine
ATLANT CJSC: Creditors Must File Claims by March 20
---------------------------------------------------
Creditors of CJSC Agricultural Trading House Atlant (code EDRPOU
30772370) have until March 20, 2008, to submit written proofs of
claim to:
The Economic Court of Poltava
Zigin Str. 1
36000 Poltava
Ukraine
The Economic Court of Poltava commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 31, 2008.
The case is docketed as 4/94.
The Debtor can be reached at:
CJSC Agricultural Trading House Atlant
Kremenchuk
Quarter 274, b. 2
39600 Poltava
Ukraine
DVS LLC: Creditors Must File Claims by March 20
-----------------------------------------------
Creditors of LLC Company DVS (code EDRPOU 34577012) have until
March 20, 2008, to submit written proofs of claim to:
The Economic Court of Kiev
B. Hmelnitskij Boulevard 44-B
01030 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 31, 2008.
The case is docketed as 15/935-b.
The Debtor can be reached at:
LLC Company DVS
P. Lumumba Str. 15-A
01042 Kiev
Ukraine
HOROL MOVABLE: Creditors Must File Claims by March 20
-----------------------------------------------------
Creditors of OJSC Horol Movable Mechanized Column170 (code
EDRPOU 01037502) have until March 20, 2008, to submit written
proofs of claim to:
The Economic Court of Poltava
Zigin Str. 1
36000 Poltava
Ukraine
The Economic Court of Poltava commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 15, 2008.
The case is docketed as 20/45.
The Debtor can be reached at:
OJSC Horol Movable Mechanized Column170
Kremenchuk Str. 42
Horol
37800 Poltava
Ukraine
KYIV CITY: S&P Rates Proposed US$250 Million Senior Bond at BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
'BB-' long-term local currency debt rating to the proposed
Ukrainian hryvnia 1.25 billion (about US$250 million) senior
unsecured bond to be issued by the Ukrainian capital City of
Kyiv (BB-/Negative/--). This rating is subject to final bond
documentation, including all necessary approvals.
"The proceeds from the bond will be used to finance the city's
capital program, including bridge construction, and to repay its
US$150 million and UAH100 million bonds due in 2008," said
Standard & Poor's credit analyst Boris Kopeykin.
The issue is expected to have quarterly fixed coupon payments of
less than 16.5% per year and five-year maturities. Placement of
the bond is planned for May 2008.
The rating on the bond mirrors that on the city, which reflects
Kyiv's limited fiscal flexibility, due to central government
control of major revenues, and evolving interbudgetary
relations. The rating is also constrained by significant
expenditure pressures, relatively high foreign exchange risk
related to bullet debt repayments, and the need for further
improvements in management sophistication and transparency.
The rating is supported by the city's position as the economic,
financial, and cultural center of Ukraine -- which results in
growing budget revenues -- and sound liquidity levels.
MANAGEMENT OF NON-DEPARTMENTAL: Creditors' Claims Due March 20
--------------------------------------------------------------
Creditors of LLC Management of Non-Departmental Defence of
Kharkov (code EDRPOU 32762488) have until March 20, 2008, to
submit written proofs of claims to:
The Economic Court of Kharkov
Derzhprom 8th Entrance
Svoboda Square 5
61022 Kharkov
Ukraine
The Economic Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed as B-39/193-07.
The Debtor can be reached at:
LLC Management of Non-Departmental Defence of Kharkov
Shevchenko Str. 233-A
Kharkov
Ukraine
RADEKHOVSKY SUGAR: Creditors Must File Claims by March 20
---------------------------------------------------------
The Economic Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 24, 2008.
The case is docketed as 29/169 (6/240-7/77).
Creditors of OJSC Radekhovsky Sugar Plant (code EDRPOU 05463785)
have until March 20, 2008, to submit written proofs of claim to:
The Economic Court of Lvov
Lichakivska Str. 81
79010 Lvov
Ukraine
The Debtor can be reached at:
OJSC Radekhovsky Sugar Plant
Yunost Avenue 39
Pavlov
Radekhovsky District
80250 Lvov
Ukraine
UKRAINE-AGRO LLC: Creditors Must File Claims by March 20
--------------------------------------------------------
Creditors of Agricultural LLC Ukraine-Agro (code EDRPOU
30839576) have until March 20, 2008, to submit written proofs of
claim to:
The Economic Court of Kiev
Komintern Str. 16
01032 Kiev
Ukraine
The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Jan. 10, 2008.
The case is docketed as B 11/447-07.
The Debtor can be reached at:
Agricultural LLC Ukraine-Agro
Lenin Str. 32
Brovary District
Gogolev
07452 Kiev
Ukraine
UKRAINIAN INDUSTRIAL: Proofs of Claim Deadline Set March 20
-----------------------------------------------------------
The Economic Court of Kharkov commenced bankruptcy supervision
procedure on the company. The case is docketed as B-31/100-06.
Creditors of LLC Ukrainian Industrial Metals (code EDRPOU
32032941) have until March 20, 2008, to submit written proofs of
claims to:
The Economic Court of Kharkov
Derzhprom 8th Entrance
Svoboda Square 5
61022 Kharkov
Ukraine
The Debtor can be reached at:
LLC Ukrainian Industrial Metals
Vishnevaya Str. 25
61035 Kharkov
Ukraine
===========================
U N I T E D K I N G D O M
===========================
ABITIBIBOWATER INC: Discloses Comprehensive Refinancing Plan
------------------------------------------------------------
AbitibiBowater Inc. disclosed last week that it has developed a
refinancing plan to address upcoming debt maturities and general
liquidity needs of its Abitibi-Consolidated Inc. subsidiary.
AbitibiBowater expects that this refinancing plan will
adequately address its upcoming liquidity needs at Abitibi-
Consolidated and will provide sufficient financial flexibility
to realize the benefits associated with an improving business
and operating environment.
The refinancing plan of approximately US$1.4 billion consists
of:
-- US$200-300 million of new senior unsecured exchange
notes of Abitibi- Consolidated Inc. due 2010,
-- US$400-500 million of new 364-day senior secured term
loan of Abitibi-Consolidated Inc. secured by working
capital and other assets,
-- Approximately US$400 million of new senior secured notes
or a term loan due 2011 of Abitibi-Consolidated Inc.
secured by fixed assets, and
-- US$200-300 million of new equity or equity-linked
securities of AbitibiBowater Inc.
Unit to Commence Exchange Offer
AbitibiBowater's subsidiary, Abitibi-Consolidated, intends to
promptly commence an exchange offer targeting approximately
US$500 million of its near term maturities. This combination of
new financings and exchange notes is aimed at retiring the 6.95%
Notes of Abitibi-Consolidated due April 1, 2008, the 5.25% Notes
of Abitibi-Consolidated Company of Canada due June 20, 2008 and
the 7.875% Notes of Abitibi-Consolidated due August 1, 2009.
Under the terms of the exchange offer, holders will be offered a
combination of cash and new senior unsecured exchange notes of
Abitibi-Consolidated due 2010. As part of the transaction,
certain credit facilities of Abitibi-Consolidated and its
subsidiaries are expected to be refinanced.
With respect to its proposed 364-day term loan, Abitibi-
Consolidated will commence the marketing of the new loan and
will be meeting with potential lenders in New York City next
week.
As part of its refinancing plan, AbitibiBowater will be seeking
an amendment to the existing revolving credit facility of its
Bowater Incorporated subsidiary to allow for, among other
things, the potential issuance of new equity-linked securities
of AbitibiBowater and a delay or modification to Bowater's
planned separation of its Catawba, South Carolina coated paper
facility. In this regard, AbitibiBowater no longer expects its
Bowater subsidiary to pursue a secured debt financing against
the Catawba facility at the present time.
The sale of Abitibi-Consolidated's Snowflake, Arizona mill,
originally announced in February, is currently expected to close
in mid-April. The sale is expected to result in US$161 million
of cash proceeds. AbitibiBowater believes the sale of its
Snowflake mill marks an important step in its efforts to achieve
its previously announced target of US$500 million in asset
sales. In addition, AbitibiBowater confirmed today that it is
actively exploring other non-core asset sales to generate
additional liquidity and further enhance its financial
flexibility.
There can be no assurance that the refinancing plan described in
this press release will be executed in the amounts and in the
timeframe required to address Abitibi-Consolidated's needs, if
at all. The current state of the credit and capital markets may
create a significant impediment to Abitibi-Consolidated's
financing efforts as well as the overall financing efforts of
its parent, AbitibiBowater. If Abitibi-Consolidated is unable
to refinance or restructure its near-term debt maturities that
are targeted by the refinancing plan described in this press
release on or before their maturities, Abitibi-Consolidated
would be in default under the indentures relating to those notes
and may be compelled to seek bankruptcy protection under
applicable law, which may negatively impact or disrupt the
operations of AbitibiBowater and its other principal subsidiary,
Bowater Incorporated.
About AbitibiBowater
AbitibiBowater Inc. -- http://www.abitibibowater.com/--
produces a wide range of newsprint and commercial printing
papers, market pulp and wood products. It is the eighth largest
publicly traded pulp and paper manufacturer in the world.
Following the required divestiture agreed to with the U.S.
Department of Justice, AbitibiBowater will own or operate 27
pulp and paper facilities and 35 wood products facilities
located in the United States, Canada, the United Kingdom and
South Korea. Marketing its products in more than 90 countries,
AbitibiBowater is also among the world's largest recyclers of
newspapers and magazines, and has more third-party certified
sustainable forest land than any other company in the world.
AbitibiBowater's shares trade under the stock symbol ABH on both
the New York Stock Exchange and the Toronto Stock Exchange.
ABITIBIBOWATER INC: Commences Private Offer to Exchange Notes
-------------------------------------------------------------
AbitibiBowater Inc. disclosed Monday the commencement of private
offers to exchange any and all of the following notes in a
private placement for a combination of cash and new 15.0% Senior
Notes due 2010 to be issued by Abitibi-Consolidated Company of
Canada.
Old notes include:
-- 6.95% Senior Notes due 2008 of Abitibi-Consolidated Inc.,
a wholly-owned subsidiary of AbitibiBowater;
-- 5.25% Senior Notes due 2008 of ACCC, a wholly-owned
subsidiary of Abitibi-Consolidated Canada; and
-- 7.875% Senior Notes due 2009 of Abitibi-Consolidated
Finance L.P., a wholly-owned subsidiary of Abitibi-
Consolidated Canada.
The exchange offers are being made only to qualified
institutional buyers and institutional accredited investors
inside the United States and to certain non-U.S. investors
located outside the United States.
Each exchange offer will expire at 11:59 p.m., New York City
time, on April 4, 2008, unless extended. Eligible holders who
validly tender and do not withdraw their old notes on or prior
to 5:00 p.m., New York City time, on March 26, unless extended,
will also receive additional cash payments in lieu of a portion
of the new notes.
The cash to be paid and principal amount of new notes to be
issued to eligible holders for each US$1,000 principal amount,
or principal amount at maturity, as applicable, of old notes
accepted in exchange as well as the cash to be paid to eligible
holders who validly tender their old notes on or prior to the
consent payment deadline is set forth in the table below.
The company is also soliciting consents to amend the
supplemental indentures governing the old notes and agreement
from the holders of the old notes not to exercise any remedies
under the old notes or their respective supplemental indentures
until April 8, 2008.
Notes for Exchange
Title of old note to be exchanged: 6.95% Senior Notes due 2008
CUSIP No.: 003924AA5
Aggregate Principal Amount Outstanding: US$195,612,000
* If tendered by the Consent Payment Deadline:
Principal Amount of new notes to be Issued: US$500
Cash Payment: US$500
* If tendered after the Consent Payment Deadline:
Principal Amount of new notes to be Issued: US$600
Cash Payment: US$400
Title of old note to be exchanged: 5.25% Senior Notes due 2008
CUSIP No.: 003669AB4
Aggregate Principal Amount Outstanding: US$150,000,000
* If tendered by the Consent Payment Deadline:
Principal Amount of new notes to be Issued: US$500
Cash Payment: US$500
* If tendered after the Consent Payment Deadline:
Principal Amount of new notes to be Issued: US$600
Cash Payment: US$400
Title of old note to be exchanged: 7.875% Senior Notes due 2009
CUSIP No.: 003672AA0
Aggregate Principal Amount Outstanding: US$150,000,000
* If tendered by the Consent Payment Deadline:
Principal Amount of new notes to be Issued: US$750
Cash Payment: US$250
* If tendered after the Consent Payment Deadline:
Principal Amount of new notes to be Issued: US$850
Cash Payment: US$150
The company discloses that the purpose of these private exchange
offers is to improve its financial flexibility by extending the
maturities of its overall indebtedness and reducing the amount
of its outstanding indebtedness with maturities in 2008 and
2009.
Tendered old notes may be validly withdrawn at any time prior to
5:00 p.m., New York City time, on March 26, 2008. Old notes
tendered after the consent payment deadline may not be
withdrawn.
Each of the exchange offers is conditioned upon, among other
things, there being validly tendered and not withdrawn prior to
the expiration of the exchange offers at least 90% principal
amount of each series of old notes tendered into the exchange.
New Notes
ACCC will enter into a registration rights agreement pursuant to
which it will agree to file an exchange offer registration
statement with the Securities and Exchange Commission with
respect to the new notes.
The new notes will be senior unsecured obligations of ACCC, and
will be guaranteed by ACI and ACF (they will not be guaranteed
by ABH), ranking equal in right of payment with old notes not
tendered in the exchange offers. The new notes will mature on
July 15, 2010, and will bear interest at a rate per annum equal
to 15.0%. Interest on the new notes will be payable on July 15
and January 15 of each year, beginning on July 15, 2008. The
other terms of the new notes will be substantially similar to
the terms of the 5.25% Senior Notes due 2008 of ACCC, except
that the new notes will be guaranteed by ACI and certain
subsidiaries and affiliates of ACI. The new notes have not been
and will not be registered under the Securities Act or any state
securities laws, may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements, and will therefore be subject to substantial
restrictions on transfer.
About AbitibiBowater
AbitibiBowater Inc. -- http://www.abitibibowater.com/--
produces a wide range of newsprint and commercial printing
papers, market pulp and wood products. It is the eighth largest
publicly traded pulp and paper manufacturer in the world.
Following the required divestiture agreed to with the U.S.
Department of Justice, AbitibiBowater will own or operate 27
pulp and paper facilities and 35 wood products facilities
located in the United States, Canada, the United Kingdom and
South Korea. Marketing its products in more than 90 countries,
AbitibiBowater is also among the world's largest recyclers of
newspapers and magazines, and has more third-party certified
sustainable forest land than any other company in the world.
AbitibiBowater's shares trade under the stock symbol ABH on both
the New York Stock Exchange and the Toronto Stock Exchange.
ABITIBIBOWATER INC: Fitch Downgrades Unit's Debt Ratings
--------------------------------------------------------
Fitch Ratings has downgraded the debt of Abitibi-Consolidated
Inc., (a subsidiary of AbitibiBowater Inc., as:
-- Issuer Default Rating to 'CC' from 'CCC';
-- Senior unsecured debt to 'CC/RR4 from 'CCC/RR4';
-- Secured revolver to 'CCC-/RR3' from 'CCC+/RR3'.
The ratings remain on Rating Watch Negative.
This rating action responds to the likelihood of a restricted
default/default in one or more series of ACI's securities
imminently approaching maturity and/or the likelihood that
holders of those securities, in order to avoid default, will
have to accept a package of notes carrying a 15% coupon and a
cash payment, the combined value of which is less than the
principal redemption of the securities.
ACI has coming due US$196 million of 6.95% notes on April 1,
2008, US$150 million of 5.25% notes on June 20, 2008 and US$150
million of 7.875% notes on August 1, 2009. ACI is offering, as
part of a broad refinancing plan, a package of cash and new
senior unsecured notes due in 2010 to accepting bondholders in
lieu of a cash redemption. Given the highly discounted market
value of ACI's debt, it is unlikely that the value of the
offered package equals the par value of the existing notes,
resulting in a loss for bondholders that is tantamount to a
partial default.
Fitch notes that the exchange could ultimately benefit ACI and
its parent, but Fitch also believes that a substantial sum of
additional finance at the ACI level needs to be accomplished in
what are still difficult financial markets.
The ratings of parent AbitibiBowater Inc., Bowater Inc. and
Bowater Canadian Forest Products Inc. remain unchanged and on
Watch Negative:
AbitibiBowater Inc.
-- IDR 'CCC'.
Bowater Incorporated
-- IDR 'CCC';
-- Senior unsecured debt 'CCC/RR4';
-- Secured revolver 'B/RR1'.
Bowater Canadian Forest Products Inc.
-- IDR 'CCC';
-- Senior unsecured debt 'B-/RR2';
-- Secured revolver 'B/RR1'.
AbitibiBowater Inc. is the largest newsprint producer in North
America, around 5.7 million tonnes annually, and a major
producer of supercalendered and specialty papers, light-weight
coated papers, pulp and lumber.
AIS REALISATIONS: Taps Joint Administrators from KPMG
-----------------------------------------------------
Andrew Stephen McGill and Allan Watson Graham of KPMG LLP were
appointed joint administrators of AIS Realisations Ltd. (Company
Number 05207546) on March 3, 2008.
KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit,
and tax-related services to customers in such target industries
as banking, media and entertainment, consumer products, health
care providers, insurance, and pharmaceuticals.
Headquartered in Birmingham, England AIS Realisations Ltd. (fka
ais Countdown Ltd.) sells and launders clean room garments and
associated consumable products, principally for the electronic,
pharmaceutical and other contamination sensitive industries.
ALLSAFE WINDOWS: Calls In Liquidators from Tenon Recovery
---------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Allsafe Windows Ltd. on March 3
for the creditors' voluntary winding-up proceeding.
The joint liquidators can be reached at:
Tenon Recovery
Tenon House
Ferryboat Lane
Sunderland
Tyne & Wear
SR5 3JN
England
BAA LTD: To Transform Airports Amidst CAA Price Review
------------------------------------------------------
BAA Ltd. disclosed that it remains committed to transforming
Britain's airports, and will spend GBP4.8 billion in the next
five years doing so, following the Civil Aviation Authority
Price Review announcement on March 11, 2008.
BAA believed, however, the review does not recognize:
-- the scale of the task being are embarked on;
-- the pressures of handling such large infrastructure
projects;
-- the full cost of the increased security requirements;
-- as well as the impact of the credit market turmoil.
As previously stated, BAA's intention is to effect a refinancing
by which it will adopt a financial structure consistent with
those successfully employed by other U.K. regulated businesses
for a number of years.
The publication by the CAA of the regulatory settlement for the
next quinquennium represents the passing of an important
milestone in the refinancing process for BAA and so enables BAA
to proceed to finalize the details of the refinancing for the
first time since the acquisition by ADIL.
BAA intends to implement the refinancing which includes a
migration of existing bondholders into an investment grade,
ring-fenced structure backed by the designated assets of the
group by the end of the second quarter of this year. Plans for
the refinancing are well advanced and BAA is actively engaging
with key parties including the rating agencies.
Conscious of the existing difficulties in the capital markets,
BAA is also working constructively on a bond and bank based
financing which can be effected within the same investment grade
securitization structure in order to improve the chance of
completing the refinancing in these challenging market
conditions.
BAA confirms its intention to start a formal consultation
process with leading bondholders under the auspices of the
Association of British Insurers in due course and will provide a
further update to bondholders at that time.
Civil Aviation Authority Price Review
The CAA published its decisions for price controls for Heathrow
and Gatwick airports for the five years from April 1, 2008 to
March 31, 2013.
The CAA's package of price caps and incentives will enable
and encourage BAA to deliver genuine service quality
improvements and to invest to raise the level of facilities and
service that can be delivered to passengers and airlines. The
outcome for passengers should be decently modern airports and
consistently high service standards.
The CAA has set the following maximum charges:
Heathrow
-- GBP12.80 per passenger in 2008/09, an increase of GBP2.44
on a like-for-like basis, representing a 23.5% increase in
real terms from the current price cap, with allowed
charges subsequently increasing in each of the following
four years by no more than retail price index inflation
plus 7.5% each year.
Gatwick
-- GBP6.79 per passenger in 2008/09, an increase of GBP1.18
on a like-for-like basis, representing a 21.0% increase in
real terms from the current price cap, with allowed
charges subsequently increasing in each of the following
four years by no more than RPI inflation plus 2.0%.
At both airports, the difference from the CAA's November 2007
proposals is in the first year increase, which is GBP0.83 per
passenger or 7 percentage points greater at Heathrow and GBP0.72
per passenger or 12 percentage points greater at Gatwick.
The main reasons for the differences since November 2007 are:
(i) additional investment, particularly at Heathrow, the need
for which has largely been endorsed by the airlines
operating at each airport; and
(ii) additional security costs at both airports, but with
greater impact at Gatwick, which, in the CAA's view, are
necessary both to reduce queues for passengers and to
meet Department for Transport security requirements and
the Government's drive to restore more normal
arrangements across the UK for passengers' hand baggage.
Otherwise, these decisions are aligned with the recommendations
made by the Competition Commission, updated for subsequent
airport-airline agreements, information received since the
Commission completed its report, and the final round of
consultation on the CAA's November 2007 proposals.
The CAA recognizes that the resulting increases in airport
charges are significant. However, these higher airport charges
are essentially paying for the modernization of Heathrow and
Gatwick, in terms of both facilities and service, for the direct
benefit of the passenger. At Heathrow, this entails paying for
the full capital and operating costs of Terminal 5 as it comes
into service on March 27, 2008, the construction of the Heathrow
East Terminal by 2013, and bringing the rest of the airport up
to comparable modern standards.
At Gatwick, the next quinquennium will see the construction of a
major new pier, the redevelopment of the South Terminal check-in
area and forecourt access, and a new baggage system.
In terms of service, the CAA's decision provides for shorter
security queuing times, enhanced levels of service across the
airports, and greater and more immediate information to
passengers from BAA of how it is performing against the
standards it has been set.
It is important that airlines and passengers receive the
services that they are paying for in airport charges. The CAA
therefore confirms its earlier proposals for stronger incentives
on each airport in the coming five-year period to deliver higher
and consistent service quality and improved infrastructure.
These stronger financial incentives include:
-- Investment
A greater proportion of the investment programme at each
airport will be subject to 'triggers', under which penalty
payments are incurred each month for late delivery of
specified outputs from projects. The CAA has decided to
set triggers covering over 60 per cent of Heathrow's and
Gatwick's respective capital programs for Q5, under
which around 5 and 4 per cent respectively of airport
charge revenue would be at risk during Q5 in the event
that these projects were not delivered on time.
-- Service quality
A broader range of services will be subject to financial
incentives, with enhanced targets most notably for ]
passenger security processing, which should deliver a
quicker and more reliable experience for passengers -
queues less than 5 minutes for 95 per cent of the whole
day. The CAA proposes to increase the maximum level of
rebates for poor service performance from 3 to 7 per cent
of total airport charge revenue. The CAA has also
introduced bonuses for performance above target, to
promote continuous improvement in service beyond the
enhanced minimum standards set by the CAA. These bonuses
can be up to 21/4 per cent of airport charge revenue for
passenger service performance above targets, delivered
consistently across all terminals.
The CAA has maintained its earlier proposals for the price caps
to be based on a pre-tax real weighted average cost of capital
of 6.2 per cent at Heathrow and 6.5 per cent at Gatwick as
recommended by the Competition Commission. Before doing so, the
CAA has analyzed recent turbulence in the financial markets, but
found that while there had been movement in some individual
components of the cost of capital, overall the Competition
Commission's recommendations remained valid.
Commenting on these decisions, which are informed by the
recommendations of the Competition Commission and build on
agreements reached between the airports and airlines, as well as
over two and half years of consultation, Dr. Harry Bush, CAA
Group Director, Economic Regulation, said:
"These decisions build on the enduring themes of the CAA's
previous regulatory proposals in this review. Passengers and
airlines deserve better than they have been provided with at
Heathrow and Gatwick in recent years. However, the
resulting improvements in airport facilities and service
standards - some GBP5 billion of investment over the next 5
years and a halving of security queuing times - have to be paid
for in increased charges."
"But airlines and passengers need to be sure that they are
getting the enhanced facilities and services that they are
paying for. Hence, the CAA's emphasis on greater financial
incentives - with BAA being penalized a lot more if it fails
service standards and earning bonuses if it exceeds them.
"The price caps have been carefully based on investment programs
emerging from airport-airline discussions and also on a shared
airline-airport desire to improve quality of service, in
particular for passengers at security. The CAA hopes that the
constructive engagement between airports and airlines that
underlies much of this pricing decision will continue in the
future to the benefit of their shared customers," Dr. Bush
added.
About BAA
Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc)
-- http://www.baa.com/-- owns and operates seven airports in
the United Kingdom, including Heathrow, the world's busiest
international airport, and Budapest Airport, serving 700
destinations by around 300 airlines.
In June 2006, BAA was bought by a consortium led by Grupo
Ferrovial SA, the Spanish construction company. Ferrovial is
one of the world's leading construction groups, specializing in
four strategic lines of business - airports, construction,
transport infrastructure and services - throughout Spain, the
U.K., Portugal and nine other countries in Europe and the rest
of the world. The company has around 89,000 employees and a net
revenue of EUR12.4 billion.
* * *
As reported in the TCR-Europe on Nov. 27, 2007, Standard &
Poor's Ratings Services has lowered its long-term corporate
credit rating on U.K.-based airports operator BAA Ltd. to 'BB-'
from 'BBB+', reflecting delays in refinancing, as well as
operating issues.
BATHROOM WORLD: Creditors' Meeting Slated for March 17
------------------------------------------------------
Creditors of Bathroom World Ltd. (Company Number 33381938) will
meet at 2:00 p.m. on March 17, 2008 at:
Tenon Recovery
Highfield Court
Tollgate
Chandlers Ford
Eastleigh
Hampshire
SO53 3TZ
England
Creditors who want to be represented at the meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims at noon on March 14, 2008 at:
Nigel Ian Fox and Carl Stuart Jackson
Joint Administrators
Tenon Recovery
Highfield Court
Tollgate
Chandlers Ford
Eastleigh
Hampshire
SO53 3TZ
England
Tenon Recovery -- http://www.tenongroup.com/-- provides
accounting and business advice to owner-managed and private
business.
DUCIE COURT: Creditors' Meeting Slated for March 20
---------------------------------------------------
Creditors of Ducie Court Ltd. (Company Number 3069369) will meet
at 11:00 a.m. on March 20, 2008 at:
BDO Stoy Hayward LLP
Commercial Buildings
11-15 Cross Street
Manchester
M2 1BD
England
Creditors who want to be represented at the meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims at noon on March 19, 2008 at:
M. Dunham
Joint Administrator
BDO Stoy Hayward LLP
Commercial Buildings
11-15 Cross Street
Manchester
M2 1BD
England
BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business
assurance (audit), corporate advisory, tax, and investment
management services, specializing in such industries as
charities, educational institutions, family businesses,
financial services, leisure, and hospitality. The company is
the U.K. arm of BDO International and has offices in more than
15 cities throughout the U.K.
HOMECARE CONTRACTS: FFDR Saves Business from Liquidation
--------------------------------------------------------
Loanhead, Scotland-based Homecare Contracts has been rescued
from liquidation after Fife, Scotland-based disaster recovery
firm FFDR bought the company for an undisclosed amount, saving
25 jobs, Scotsman reports, citing the Edinburgh Evening News.
According to FFDR founder Ronnie Klos, the acquisition will
expand FFDR's operations into the Scottish Borders, adding
around GBP1 million to its turnover and taking its payroll up to
around 100, the Scotsman relates.
INITIAL CREDIT: High Court to Hear Winding-Up Petition on May 13
----------------------------------------------------------------
The Secretary of State for Business Enterprise & Regulatory
Reform has presented a petition in the High Court to wind up
Initial Credit Support Limited in the public interest.
The company operated as a commercial debt collector offering a
debt recovery service to businesses it recruited by way of cold
calling.
The petition to wind up the company was presented following an
investigation carried out by Companies Investigation Branch
under section 447 of the Companies Act 1985 (as amended). The
Official Receiver has been appointed provisional liquidator of
the company. The case is now subject to High Court action and
no further information will be available until the petition is
heard on May 13, 2008.
The registered office and place of business of Initial Credit
Support Limited is at:
Antiques Triangle
128 Chester Street
Birkenhead
CH41 5DL
England
The company was incorporated in July 2006 and commenced trading
in October 2006.
KEEN KLEEN: Brings In Liquidators from Mazars
---------------------------------------------
Robert David Adamson and Alistair Steven Wood of Mazars LLP were
appointed joint liquidators of Keen Kleen Ltd. on April 16 for
the creditors' voluntary winding-up proceeding.
The joint liquidators can be reached at:
Mazars LLP
Mazars House
Gelderd Road
Gildersome
Leeds
England
NEW BOND: Moody's Junks Rating on Class D and E Notes
-----------------------------------------------------
Moody's Investors Service downgraded and left on review for
further downgrade five classes of notes issued by New Bond
Street CDO 2 Limited.
These rating actions are a response to significant credit
deterioration in the underlying portfolio. The transaction is a
managed cash CDO of ABS in respect of which some of the assets
in the portfolio have been downgraded, placed on review for
downgrade, or both since October 2007. In addition, US$40m of
the portfolio (all ABS CDOs) are currently in default.
Moody's will continue to monitor all deals with exposure to US
subprime RMBS and ABS CDOs, and will take further actions in
respect of all CDOs placed under review for downgrade once the
extent of actual downgrades to US RMBS and ABS CDO vintages
becomes known.
The rating actions are:
New Bond Street 2 Limited:
(1) US$100,000,000 Class A Floating Rate Notes due 2067
-- Current Rating: Aa1, on review for downgrade
-- Prior Rating: Aaa, on review for downgrade
(2) US$40,000,000 Class B Floating Rate Notes due 2067
-- Current Rating: Aa3, on review for downgrade
-- Prior Rating: Aaa, on review for downgrade
(3) US$25,000,000 Class C Deferrable Floating Rate Notes
due 2067
-- Current Rating: B3, on review for downgrade
-- Prior Rating: Aa2, on review for downgrade
(4) US$20,000,000 Class D Deferrable Floating Rate Notes
due 2067
-- Current Rating: Caa3, on review for downgrade
-- Prior Rating: Ba3, on review for downgrade
(5) US$15,000,000 Class E Deferrable Floating Rate Notes
due 2067
-- Current Rating: Caa3, on review for downgrade
-- Prior Rating: B3, on review for downgrade
NORTHERN ROCK: Ends Sub-Prime Arrangements with Lehman Unit
-----------------------------------------------------------
Northern Rock Plc said it would no longer gather up sub-prime
and "near-prime" mortgage customers for Southern Pacific
Mortgage Limited, a Lehman Brothers subsidiary, the Telegraph
reports.
Northern Rock disclosed that the arrangement with Pacific
Mortgage had ended by mutual consent, the report said.
In April 2007, Northern Rock had agreed to find customers with
impaired credit histories for Southern Pacific, the Telegraph
relates.
According to the report, Northern Rock earned fees for
originating the loans from brokers for Southern Pacific, though
it did not write the business or placed the mortgages on its
balance sheet. It did not reveal how much fee income it had
earned from the deal.
About Northern Rock plc
Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/mortgages/-- deals with
mortgages, savings accounts, loans and insurance. The company
also promotes secured loans to its existing mortgage customers.
The company had more than US$200 billion in assets at the end of
June 2007.
* * *
In December 2007, Moody's Investors Service downgraded to E+
from D+ Northern Rock's Bank Financial Strength Rating. The E+
maps into a Baseline Credit Assessment of B1.
The bank's dated subordinated debt was downgraded to B1 from
Baa1 and the undated subordinated debt and Tier-1 securities
were downgraded to B3 from Baa1 and Baa3 respectively. All of
these ratings have negative outlooks. Northern Rock's short-
term rating was affirmed at Prime-1.
SCOTTISH RE: Delays Filing of Form 10-K to April 1
--------------------------------------------------
Scottish Re Group Limited will delay the filing of its Form 10-K
for the year ended Dec. 31, 2007. The company will submit a
Form 12b-25 to the U.S. Securities and Exchange Commission for
an extension of time to file the Form 10-K and currently expects
to make the filing on or about April 1, 2008.
The company is unable to file the Form 10-K by the prescribed
due date of March 17, 2008, because of the additional work
necessary to complete the Dec. 31, 2007 financial statements and
address accounting and disclosure requirements related to the
company's holdings in sub-prime and Alt-A securities as well as
the company's recently announced change in strategic focus.
The company's independent auditors also need the additional time
to complete their audit of the financial statements and the
audit of internal control over financial reporting.
The company currently expects to report results for the fourth
quarter of 2007 after the market closes on Thursday, March 27,
2008 and expects to host an earnings conference call to discuss
the fourth quarter and full year results at 8:30 am Eastern Time
on Friday, March 28, 2008.
About Scottish Re
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
SCOTTISH RE: Moody's Junks Preferred Stock Debt Rating
------------------------------------------------------
Moody's Investors Service has downgraded the preferred stock
debt rating of Scottish Re Group Limited (Scottish Re; NYSE:
SCT) to Caa3 from B2, and the insurance financial strength (IFS)
ratings of the company's core insurance subsidiaries, Scottish
Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re
(U.S.), Inc., were lowered to Ba3 from Baa3. The ratings were
left on review for possible further downgrade, continuing a
review that had been initiated on February 15, 2008.
Moody's noted that the rating action follows a February 22, 2008
announcement by the company that it would alter its strategic
focus in response to business challenges it faces in writing new
business, partly as a result of market conditions and its
substantial exposure to subprime and Alt-A investments. Going
forward, the company has indicated it will pursue dispositions
of certain non-core businesses, strategic alliances in North
America, and rationalize expenses to secure liquidity and
capital as it effectively runs off the existing business.
The rating agency commented that the company's significant
exposure to subprime and Alt-A investments could lead to
additional losses going forward. According to Scott Robinson,
Moody's Vice President & Senior Credit Officer, "The magnitude
of the company's subprime and Alt-A exposure, especially to
recent year vintages, makes them susceptible to further losses,
especially in a severe downside scenario."
As of the end of the third quarter, Scottish Re had
approximately US$3.0 billion of subprime ABS and Alt-A holdings,
which represented 27% of its total investment portfolio.
Moody's notes that although much of the subprime ABS and Alt-A
exposure (US$2.3 billion) resides in non-recourse securitization
vehicles the company has sponsored, impairments and unrecognized
losses could adversely impact the ability of the company's U.S.
operating subsidiary to receive regulatory reserve credit, hence
reducing its regulatory capital position.
According to Robinson, "Moody's review of the ratings will focus
on the company's capital and liquidity position as it adjusts to
its new strategy." While the company has access to
approximately US$275 million in a contingent capital facility,
it does face a number of significant challenges. Robinson
added," the need for capital in its regulated subsidiaries, as
well as additional impairments on its investments could all
place additional pressure on the company."
These ratings were downgraded and left on review for possible
further downgrade:
Scottish Re Group Limited:
-- Senior unsecured shelf to (P)Caa1 from (P)Ba3;
-- subordinate shelf to (P)Caa2 from (P)B1;
-- junior subordinate shelf to (P)Caa2 from (P)B1;
-- preferred stock to Caa3 from B2; and
-- preferred stock shelf to (P)Caa3 from (P)B2;
Scottish Holdings Statutory Trust II:
-- preferred stock shelf to (P)Caa2 from (P)B1
Scottish Holdings Statutory Trust III:
-- preferred stock shelf of to (P)Caa2 from (P)B1
Scottish Annuity & Life Insurance Company (Cayman) Ltd.:
-- IFS rating to Ba3 from Baa3
Premium Asset Trust Series 2004-4:
-- senior secured debt to Ba3 from Baa3
Scottish Re (U.S.), Inc.:
-- IFS rating to Ba3 from Baa3
Stingray Pass-Through Certificates:
-- to Ba3 from Baa3 (based on IFS rating of SALIC)
On February 15, 2008, Moody's placed the ratings of Scottish Re
Group Limited on review for downgrade. The review was driven
primarily by adverse experience on the company's substantial
exposure to subprime and Alt-A investments.
Scottish Re Group Limited is a Cayman Islands company with
principal executive offices located in Bermuda. On Sept. 30,
2007, Scottish Re reported total assets of US$13.4 billion and
shareholder's equity of US$869 million.
VISAGE CDO I: S&P Junks Ratings on All Notes Classes
----------------------------------------------------
Standard & Poor's Ratings Services removed from CreditWatch with
negative implications and lowered to 'CC' its credit ratings on
all classes of notes issued by Visage CDO I PLC following an
notice of enforcement that has placed an immediate call on all
the notes.
On March 6, S&P received a notice of enforcement from the
trustee. This stated that the super senior swap counterparty,
as the controlling class, had directed the trustee to declare
Visage CDO I's notes due immediately. In turn, this has
triggered a termination of the total return swap agreement.
The notice of enforcement followed a previous notice declaring
an event of default as of March 3. The event of default
occurred as per the condition of the notes' indenture after the
class A par value ratio fell below 100%.
All the notes were originally placed on CreditWatch negative on
Nov. 28, 2007, as a result of the deteriorating credit quality
of the collateral. Following further deterioration in the
portfolio due to CreditWatch negative placements and lowering of
the ratings on U.S. CDOs of ABS, all rated notes were downgraded
on Feb. 5, 2008.
The trustee has not informed us when Visage CDO I will make the
termination payments on the total return swap, but Standard &
Poor's believes this action is imminent.
The rating actions reflect Standard & Poor's view, given current
market conditions, that the effect of these termination payments
on Visage CDO I's ability to pay back the rated notes will be
substantial.
The controlling party's decision to call for an immediate
redemption of the notes is likely to result in an increase in
the collateral valuation risk. There is thus a high potential
for material losses to the holders of the rated notes.
The transaction closed on July 28, 2006, and is managed by TCW
Asset Management Co.
Ratings List
Visage CDO I PLC
US$162 Million Secured And Deferrable Floating-Rate Notes
Ratings Removed From CreditWatch Negative And Lowered
Rating
------
Class To From
----- -- ----
A CC A+/Watch Neg
B CC BBB+/Watch Neg
C CC BBB+/Watch Neg
* Fitch Says Further UK Non-conforming Reserve Fund Draws Likely
----------------------------------------------------------------
The reserve fund for EuroMASTR Series 2007-IV plc is not below
its target level. The reserve fund for this transaction is
amortising in line with the transaction documentation.
Fitch Ratings said Tuesday that Eurosail 2006-3 NC plc (Eurosail
06-3) has drawn on its reserve fund as of the March 2008 payment
date. This draw is one of a number seen in UK non-conforming
transactions in recent weeks and Fitch expects that further
draws are likely in other transactions over the coming weeks. A
full list of UK non-conforming transactions that have reserve
funds below their target level is listed below.
Whilst a number of the recent draws have been caused by
transaction structural features, such as a lack of a fixed-
floating swap or a basis risk swap, Eurosail 06-3 does have
appropriate hedging mechanisms in place. The draw has therefore
been driven by a deterioration in performance of the transaction
in combination with the impact of a step up in the margin paid
on the detachable coupon attached to the A3 note and the
additional interest stripping by the ETc excess spread note.
"The reserve fund draw in Eurosail 06-3 is predominantly due to
traditional performance-related issues, rather than the
structural and market driven draws we have seen recently in
other transactions," says Andy Brewer, Senior Director in
Fitch's Structured Finance Performance Analytics team.
Fitch will undertake further analysis on the performance of
Eurosail 2006-3 following the draw. The current reserve fund
levels for Eurosail 06-3 and the amount drawn is as follows:
Current Reserve Fund GBP2,189,508
0.43% of Original Note Balance, Target 0.50%
Total drawn GBP360,492
In December 2007 Fitch revised the Outlooks for the junior
tranches of the transaction to Negative from Stable to reflect
the agency's concerns about the performance of the transaction
and the nature of the underlying collateral. The transaction
contains a detachable coupon on the A3 notes, as well as
subordinated excess spread notes (the ETc and FTc notes). Both
the A3 DAC and the ETc notes strip interest from the structure
senior to the reserve fund in the payment waterfall. Loans in
arrears by more than three months, including loans in possession
comprised 18.3% of the outstanding portfolio as of December
2007, with cumulative losses of 0.05% of the original portfolio
balance. The full investor report for March 2008 is scheduled
to be published on March 24, 2008.
This list provides an overview of all UK non-conforming
transactions with reserve funds are not at their target level as
of reports received by March 10, 2008. This list includes
transactions where the reserve fund is building towards a target
after closing, or has been building following a draw. The
target % and actual % refer to the size of the reserve fund
calculated from original note balance:
-- Alba 2006-2 plc: Target 0.65%; Actual 0.62%;
-- Eurohome UK Mortgages 2007-1 plc: Target 1.80%,
Actual 1.54%
-- Eurohome UK Mortgages 2007-2 plc: Target 1.80%,
Actual 1.64%
-- Eurosail 2006-3 NC plc: Target 0.50%, Actual 0.43%
-- Farringdon Mortgages No. 1 Plc: Target 4.20%, Actual 2.24%
-- Farringdon Mortgages No. 2 Plc: Target 2.22%, Actual 1.26%
-- Kensington Mortgage Securities plc. - Series 2007-1:
Target 1.50%, Actual 1.38%
-- Ludgate Funding Plc Series 2006 FF1: Target 0.40%,
Actual 0.13%
-- Money Partners Securities 1 Plc: Target 2.55%, Actual 2.47%
-- Newgate Funding Plc Series 2006-1: Target 1.15%,
Actual 1.06%
-- Newgate Funding Plc Series 2007-1: Target 0.80%,
Actual 0.68%
-- Newgate Funding Plc Series 2007-2: Target 1.15%,
Actual 0.64%
-- ResLoC UK 2007-1 plc: Target 1.35%, Actual 1.30%
-- RMAC Securities No.1 Plc (Series 2006-NS1): Target 1.65%,
Actual 1.54%
-- RMAC Securities No.1 Plc (Series 2006-NS2): Target 1.05%,
Actual 0.90%
-- RMAC Securities No.1 Plc (Series 2006-NS3): Target 1.05%,
Actual 0.77%
-- RMAC Securities No.1 Plc (Series 2006-NS4): Target 1.05%,
Actual 0.92%
-- RMAC Securities No.1 Plc (Series 2007-NS1): Target 1.10%,
Actual 1.06%
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices
are obtained by TCR editors from a variety of outside sources
during the prior week we think are reliable. Those sources may
not, however, be complete or accurate. The Monday Bond Pricing
table is compiled on the Friday prior to publication. Prices
reported are not intended to reflect actual trades. Prices for
actual trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies
with insolvent balance sheets whose shares trade higher than
US$3 per share in public markets. At first glance, this list
may look like the definitive compilation of stocks that are
ideal to sell short. Don't be fooled. Assets, for example,
reported at historical cost net of depreciation may understate
the true value of a firm's assets. A company may establish
reserves on its balance sheet for liabilities that may never
materialize. The prices at which equity securities trade in
public market are determined by more than a balance sheet
solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/booksto order any title today.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Jason Nieva, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Pius Xerxes
Tovilla and Marites Claro, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For subscription
information, contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *