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