/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080324.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 Monday, March 24, 2008, Vol. 9, No. 58 Headlines A U S T R I A AMOR BAU: Claims Registration Period Ends April 10 ROYAL FERTIGTEILHAUS: Claims Registration Period Ends March 25 SENI-TRADE: Claims Registration Period Ends April 22 TRADECOMMERCE HANDEL: Claims Registration Period Ends April 4 Z-BAU LLC: Claims Registration Period Ends April 10 B E L G I U M FEDERAL-MOGUL: Professionals Bill US$323 Mil. in Fees & Expenses F R A N C E DELPHI CORP: Completes Rights Offering for 62,707,305 Shares GECINA SA: Spain Okays Sanahuja’s Buy of Metrovacesa Shares GECINA SA: Metrovacesa Separation Deal Cues S&P to Lower Ratings GECINA SA: Shareholders Ordinary General Meet Set for April 22 LEAR CORP: S&P Puts Ratings on Neg. Watch on Extended AAM Strike RHODIA SA: Chairman Nanot Resigns as Chairman of the Board G E R M A N Y A-B-BAU GMBH: Claims Registration Period Ends April 11 ACTIV-NET GMBH: Claims Registration Period Ends April 10 AUTO CREW: Claims Registration Period Ends April 11 AUTOHAUS PETERS: Claims Registration Period Ends April 10 BFD BETON: Claims Registration Ends April 11 EMBO TEXTILPRODUKTIONS: Claims Registration Period Ends April 11 FRANZ SANDMEIER: Claims Registration Period Ends April 10 GERGEN HOCH: Claims Registration Ends April 11 HOCHWALD TUERENWERK: Claims Registration Ends April 11 IKB DEUTSCHE: Board Halts Sale of Portfolio Investments IKB DEUTSCHE: Fitch Cuts Ratings on Hybrid Securities to CC JOLITZ GMBH: Claims Registration Period Ends April 10 KUECHEN OSKAR: Claims Registration Ends April 11 MICHAEL BOB: Claims Registration Ends April 11 PROVIDE-VR 2003-1: S&P Lowers Ratings on Class D and E Notes SDP INGENIEURTECHNIK: Claims Registration Period Ends April 10 STANZ- U. UMFORMTECHNIK: Claims Registration Ends April 10 STRASSENBAUGESELLSCHAFT HOF: Claims Registration Ends April 11 UN POCO LOCO: Claims Registration Period Ends April 10 H U N G A R Y GUESS? INC: Co-Founder Wins Legal Battle Against Christie's I T A L Y ALITALIA SPA: Silvio Berlusconi Calls for Italian Bidders ALITALIA SPA: Silvio Berlusconi Likely to Veto Air France Deal SEAT PAGINE: Earns EUR98.4 Million for Year-Ended 2007 SEAT PAGINE: Moody's Affirms Ratings & Says Outlook is Negative SEAT PAGINE: S&P Puts BB- Rating on Negative CreditWatch SEAT PAGINE: To Focus on Searching & Exploiting Online Business TISCALI SPA: Posts EUR75.32 Million Net Loss for 2007 K A Z A K H S T A N AK BOKEN-TARAZ: Creditors Must File Claims by April 18 BANK CENTERCREDIT: Moody's Says Kookmin Buy Won't Affect Ratings HANSULTAN LLP: Claims Deadline Slated for April 18 HIMLES-TORG LLP: Claims Filing Period Ends April 18 JARDEM SYSTEM: Creditors' Claims Due on April 18 KAZKOMMERTSBANK: Earns KZT57.8 Bln in Year Ended Dec. 31, 2007 MEG TECH: Claims Registration Ends April 18 NARGIZ & CO: Creditors Must File Claims by April 18 OTAU KURYLYZ: Claims Deadline Slated for April 18 PAVLODARPLAST LLP: Claims Filing Period Ends April 18 TAT INVESTSTROY: Creditors' Claims Due on April 18 TAUELSIZDIGINE-10 GYL: Claims Registration Ends April 18 K Y R G Y Z S T A N FLAMINGO LLC: Creditors' Meeting Slated for March 25 GRK ALA-TOO: Creditors' Meeting Slated for March 28 L U X E M B O U R G EVRAZ GROUP: Calls Off Yuzhkuzbassugol-Raspadskaya Merger Talks EVRAZ GROUP: Gennady Kozovoy Quits as Yuzhkuzbassugol CEO P O L A N D AMERICAN AXLE: Work Stoppage Prompts S&P's Negative Watch SCO GROUP: Bankruptcy Court Sets April 21 as Claims Bar Date R U S S I A CAR ENTERPRISE: Creditors Must File Claims by May 1 COMSTAR-UNITED: Nikolai Maximenka to Head MGTS Unit DAN CJSC: Creditors Must File Claims by April 1 EVRAZ GROUP: Calls Off Yuzhkuzbassugol-Raspadskaya Merger Talks EVRAZ GROUP: Gennady Kozovoy Quits as Yuzhkuzbassugol CEO FARM-GEO-COM: Court Names E. Shirova as Insolvency Manager GOLDEN TELECOM: Earns US$152.6 Million in 2007 GRAIN-PRODUCT: Creditors Must File Claims by May 1 LEBEDYANSKY OJSC: Four Largest Shareholders Sell Stake to Pepsi LEBEDYANSKY OJSC: Moody's Reviews Ratings on Pepsi Deal LEBEDYANSKY OJSC: Revenue Ups 33% to US$944.8 Million in 2007 NISSAN CENTRE: Creditors Must File Claims by May 1 NOVOSIBIRSK CITY: Low Debt Prompts S&P to Upgrade Ratings RUMBA S.A.: S&P Puts BB Rating on RUR682 Million Class B Notes SPAS-DEMENSKIY LES-KHOZ-ZAG: Creditors Must File Claims by May 1 UREN’-SEL’-KHOZ-TEKHNIKA: Creditors Must File Claims by May 1 VARIANT-Z LLC: Court Names A. Kharkov as Insolvency Manager S P A I N GECINA SA: Spain Okays Sanahuja’s Buy of Metrovacesa Shares GECINA SA: Metrovacesa Separation Deal Cues S&P to Lower Ratings S W I T Z E R L A N D BFZ HOLDING: Creditors' Liquidation Claims Due by March 26 ERNST WUTSCHERT: Creditors' Liquidation Claims Due by March 27 FULANO JSC: Creditors' Liquidation Claims Due by March 27 GARTEC LLC: Creditors' Liquidation Claims Due by March 27 HAGRA HANDEL: Creditors' Liquidation Claims Due by March 26 KASEREI VOGELSANG: Creditors' Liquidation Claims Due by March 26 QUALITRADE LLC: Creditors' Liquidation Claims Due by March 28 SMARTSTEP LLC: Creditors' Liquidation Claims Due by March 27 TANKSTELLE ALPENBLICK: Creditors' Must File Claims by March 27 TRENTON JSC: Creditors' Liquidation Claims Due by March 26 T U R K E Y GLOBAL YATIRIM: Offers US$1.61 Billion for Baskent Natural GLOBAL YATIRIM: Baskent Bid Prompts Fitch's Negative Watch GLOBAL YATIRIM: New Board Members Appointed at Annual Meeting U N I T E D K I N G D O M ADP PAINTS: Taps Joint Administrators from Begbies Traynor ADVANCE RECRUITMENT: Appoints Joint Administrators from Tenon AIRBABES LTD: Appoints Martin Dominic Pickard as Liquidator BEECHER LOAN: Fitch Withdraws Ratings on Class A and B Loans BRITISH AIRWAYS: Increases Stake in Iberia Lineas to 13.15% CAPITAL PARK: Brings In Liquidator from Vantis DECO 11: S&P Puts Class F Notes' BB Rating Under Negative Watch DEPOT PROPERTIES: Joint Liquidators Take Over Operations DORSET PREMIER: Brings In Administrators from Tenon DURA AUTOMOTIVE: Files Amended First Revised Chapter 11 Plan DURA AUTO: Claims Treatment & Classification of Revised Plan DURA AUTO: Unveils Financial Projections Under Revised Plan GENERAL MOTORS: Extended AAM Strike Cues S&P’s Negative Watch GAS-TEC LTD: Calls In Liquidators from Tenon Recovery MISYS PLC: Unit Inks Merger Agreement with Allscripts MYDDLETON CONSTRUCTION: Appoints PwC as Joint Administrators NORTHERN ROCK: Clive Briault to Leave FSA in April NORTHERN ROCK: Unite Opposes Compulsory Redundancy Plans NOTTINGHAM TRADING: Taps Administrators from Begbies Traynor PETROLEOS DE VENEZUELA: Wins Exxon Lawsuit PETROLEOS DE VENEZUELA: CITGO Commends PDVSA on Lawsuit Victory RESIDENTIAL MORTGAGE: Moody's Holds Ratings on 10 Note Classes TRANSLUTION HOLDINGS: Hires Joint Administrators from Tenon TRANSLUTION LTD: Brings In Tenon Recovery to Administer Assets GAS-TEC LTD: Calls In Liquidators from Tenon Recovery VONAGE HOLDINGS: Inks Settlement Agreement with Nortel VOXSURF LTD: Names Joint Administrators from Baker Tilly * BOND PRICING: For the Week March 17 to March 21, 2008 ********* ============= A U S T R I A ============= AMOR BAU: Claims Registration Period Ends April 10 -------------------------------------------------- Creditors owed money by LLC AMOR Bau (FN 195685y) have until April 10, 2008, to file written proofs of claim to court- appointed estate administrator Judith Eisenberg-Mirecki at: Mag. Judith Eisenberg-Mirecki Reisnerstrasse 25/2 1030 Vienna Austria Tel: 714 82 44 Fax: 714 82 44 E-mail: ra.eisenberg-mirecki@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on april 24, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 19, 2008 (Bankr. Case No. 5 S 16/08z). ROYAL FERTIGTEILHAUS: Claims Registration Period Ends March 25 -------------------------------------------------------------- Creditors owed money by LLC Royal Fertigteilhaus (FN 278125h) have until March 25, 2008, to file written proofs of claim to court-appointed estate administrator Gerhard Kurt Kochwalter at: Dr. Gerhard Kurt Kochwalter Alter Platz 25/III 9020 Klagenfurt Austria Tel: 0463/56 122 Fax: 0463/56 1 22-15 E-mail: kochw@chello.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on March 31, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Meeting Room 225 Second Floor Klagenfurt Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on Feb. 18, 2008 (Bankr. Case No. 41 S 12/08z). SENI-TRADE: Claims Registration Period Ends April 22 ---------------------------------------------------- Creditors owed money by LLC SENI-TRADE (FN 262664x) have until April 22, 2008, to file written proofs of claim to court- appointed estate administrator Markus Siebinger at: Mag. Markus Siebinger c/o Dr. Karl Schirl Krugerstrasse 17/3 1010 Vienna Austria Tel: 513 22 31 Fax: 513 22 31 1 Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:15 p.m. on May 6, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 19, 2008 (Bankr. Case No. 6 S 30/08s). Karl Schirl represents Mag. Siebinger in the bankruptcy proceedings. TRADECOMMERCE HANDEL: Claims Registration Period Ends April 4 ------------------------------------------------------------- Creditors owed money by LLC Tradecommerce Handel & Construction (FN 287481t) have until April 4, 2008, to file written proofs of claim to court-appointed estate administrator Wolfgang Herzer at: Mag. Wolfgang Herzer Schuettelstrasse 55 1020 Vienna Austria Tel: 72 577 Fax: 72 577 77 E-mail: wolfgang.herzer@blw-legal.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on April 18, 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. 19, 2008 (Bankr. Case No. 28 S 27/08m). Z-BAU LLC: Claims Registration Period Ends April 10 --------------------------------------------------- Creditors owed money by LLC Z-Bau (FN 233689k) have until April 10, 2008, to file written proofs of claim to court- appointed estate administrator Bernhard Eder at: Dr. Bernhard Eder c/o Dr. Herbert Hochegger Brucknerstrasse 4 1040 Vienna Austria Tel: 505 78 61 Fax: 505 78 61 9 E-mail: eder@rechtsanwaelte.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on April 24, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Feb. 19, 2008 (Bankr. Case No. 5 S 17/08x). Herbert Hochegger represents Dr. Eder in the bankruptcy proceedings. ============= B E L G I U M ============= FEDERAL-MOGUL: Professionals Bill US$323 Mil. in Fees & Expenses ---------------------------------------------------------------- Thirty-three professionals have sought final allowance of their fees and expenses incurred in Federal-Mogul Corp. and its debtor-affiliates' bankruptcy cases: Final Professional Fee Period Fees Expenses ------------ ---------- ---- -------- 11/18/02 - AlixPartners, LLP 12/27/07 US$5,517,712 US$34,839 Analysis, Research, & 01/16/02 - Planning Corp. 12/27/07 4,383,484 29,992 Anderson, Kill & 02/20/03 - Olick, P.C. 12/27/07 1,805,826 62,070 05/01/07 - Baker & McKenzie LLP 12/27/07 530,218 7,116 10/23/01 - Bayard, P.A. 12/27/07 1,364,465 218,176 12/13/02 - Bederson & Company, LLP 12/27/07 3,493,141 37,333 06/17/02 - Bifferato Gentilotti LLC 12/27/07 211,428 78,687 Bilzin Sumberg Baena 11/17/03 - Price & Axelrod LLP 10/31/04 182,971 23,265 11/13/01 - Campbell & Levine, LLC 12/27/07 1,306,504 188,782 Caplin & Drysdale, 11/13/01 - Chartered 02/07/08 8,854,961 635,299 Deloitte Financial 07/11/02 - Advisory Services LLP 12/27/07 2,181,374 19,805 10/01/01 - Dykema Gossett PLLC 12/27/07 4,543,701 86,146 11/13/01 - Elizabeth Warren 12/27/07 2,531 - 02/11/02 - Eric D. Green 12/27/07 752,886 45,057 10/01/01 - Ernst & Young LLP 12/28/07 40,339,616 1,058,947 Ferry, Joseph & 11/06/03 - Pearce, P.A. 12/27/07 518,993 53,931 09/01/02 - FTI Consulting, Inc. 12/27/07 1,991,634 50,524 10/01/01 - Gilbert Randolph, LLP 12/27/07 9,134,237 504,449 01/14/02 - Hanly & Conroy LLP 12/27/07 5,149,916 307,992 02/19/02 - Herbert Smith LLP 12/27/07 3,174,253 182,914 12/03/03 - J.H. Cohn LLP 12/27/07 894,238 14,212 09/18/06 - Killian & Salisbury, P.C. 12/27/07 32,945 5,321 Legal Analysis 12/01/01 - Systems, Inc. 12/27/07 1,830,547 81,127 01/23/02 - Lovells, Inc. 12/27/07 7,474,452 831,206 Pachulski Stang 10/01/01 - Ziehl & Jones LLP 12/27/07 3,000,578 3,097,847 10/01/01 - PricewaterhouseCoopers LLP 12/27/07 14,859,721 1,347,569 05/01/02 - Resolutions, LLC 12/27/07 458,462 35,467 10/01/01 - Rothschild Inc. 09/30/03 4,800,000 362,857 11/09/01 - Sidley Austin LLP 12/27/07 101,991,251 5,689,097 Sonnenschein Nath & 10/23/01 - Rosenthal LLP 12/27/07 30,748,517 1,132,742 05/08/06 - The Kenesis Group, LLC 12/27/07 3,217,501 27,392 06/01/04 - Weil, Gotshal & Manges LLP 12/27/07 3,312,299 319,327 Young Conaway Stargatt & 01/07/02 - Taylor, LLP 12/27/07 12,102,382 1,966,023 Bell, Boyd & Lloyd LLP also seeks payment of US$6,109,055 for its fees and expenses during the period from June 17, 2002, through Dec. 27, 2007. In addition, Jefferies & Company, Inc., asks the Court to award it US$19,145,389 for its fees and expenses for the period from Oct. 26, 2001, through Dec. 27, 2007. The Professionals' fees and expenses total approximately US$323,952,000. The Official Committee of Asbestos Property Damage Claimants also seeks reimbursement of US$41,592 for the actual and necessary expenses incurred by its committee members for the period from Oct. 23, 2001, through Dec. 27, 2007. The costs and expenses incurred by the Asbestos Committee Members are in connection with committee meetings that were actual and necessary to the preservation of the Reorganized Debtors' Chapter 11 estates, Kathleen Campbell Davis, Esq., at Campbell & Levine, LLC, in Wilmington, Delaware, avers. The Reorganized Debtors hired AlixPartners, Dykema Gossett, Ernst & Young, FTI Consulting, Gilbert Randolph, Hanly & Conroy, Kenesis, Killian & Salisbury, Pachulski Stang, PwC, Rothschild, and Sidley Austin. The Official Committee of Unsecured Creditors retained Sonnenschein Nath, as counsel; Bayard, as co-counsel; and Jefferies & Co., as financial advisor. Baker & McKenzie, Bell Boyd and Bifferato Gentilotti act as counsel to the Official Committee of Equity Security Holders. Deloitte FAS serves as the Equity Committee' financial advisor. Anderson Kill, Bilzin Sumberg, Campbell & Levine, Caplin & Drysdale, Ferry Joseph, J.H. Cohn, Legal Analysis, Lovells, Ms. Warren, and Weil Gotshal were retained by the Asbestos Committee. Eric D. Green is the legal representative for Future Asbestos Claimants. As the Futures Representative, Mr. Green is responsible for protecting the rights of all entities who have not asserted asbestos-related claims against the Debtors prior to the confirmation of the Plan of Reorganization but properly assert Demands, as that term is defined in Section 524(g)(5) of the Code, subsequent to the order confirming the Plan. Mr. Green, with the assistance of Analysis Research, Bederson & Co., Herbert Smith, Resolutions, and Young Conaway, has investigated the Reorganized Debtors' acts, conduct, and property on a regular basis, including matters in connection with the operation and reorganization of the Debtors' businesses. Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (OTCBB: FDMLQ) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has operations in other locations which includes, among others, Mexico, Malaysia, Australia, Belgium, China, India, Japan, Korea, Poland, Thailand, among others. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm, represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. Federal-Mogul emerged from Chapter 11 on Dec. 27, 2007. * * * In January 2008, Moody's Investors Service’s confirmed the ratings of the reorganized Federal-Mogul Corporation -- Corporate Family Rating, Ba3; Probability of Default Rating, Ba3; and senior secured bank credit facilities, Ba2. Moody’s said the outlook is stable. At the same time, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Federal-Mogul following the company's emergence from Chapter 11 on Dec. 27, 2007. S&P said the outlook is stable. =========== F R A N C E =========== DELPHI CORP: Completes Rights Offering for 62,707,305 Shares ------------------------------------------------------------ Delphi Corp.'s registration statement regarding subscription rights and warrants to purchase shares of common stock in Reorganized Delphi became effective on March 11, 2008. Prior to the Effective Date of its confirmed Plan of Reorganization, Delphi will initiate a sale and offer of subscription rights to purchase up to 62,707,305 of Reorganized Delphi common stock. After the Effective Date of the Plan, Reorganized Delphi will sell warrants to purchase up to 15,384,616 shares of the company's common stock. The warrants are immediately exercisable from and after the date of issuance until the six- month anniversary of the date of issuance. A full-text copy of Delphi's Registration Statement filed with the U.S. Securities and Exchange Commission is available at: http://ResearchArchives.com/t/s?2944 Rights Offering The Rights Offering is comprised of a Par Rights Offering and a Discount Rights Offering. Under the Par Rights Offering, each holder of Delphi common stock will receive, for each 26 shares of common stock owned of record at 5:00 p.m., New York City time, on Jan. 17, 2008, one nontransferable right to purchase one share of Reorganized Delphi common stock for US$59.61 in cash. Fractional par rights will not be issued. Under the Discount Rights Offering, holders of allowed General Unsecured Claims, Section 510(b) Note Claims, Section 510(b) Equity Claims, or Section 510(b) ERISA Claims, as those claims are defined in the Plan, will receive, for each US$99.07 of their claim, one transferable right to purchase one share of Reorganized Delphi common stock for US$38.39 in cash. To the extent that Delphi's provisional claim allowance or estimation results in a particular claimholder receiving more discount rights than what the claimholder should have received based on the ultimate allowed amount of its claim, and those excess discount rights are transferred or exercised, Delphi, in its sole discretion: (a) will withhold an amount of Reorganized Delphi common stock equal to the value of the Excess Discount Rights from the Overpaid Eligible Holder's ultimate distribution; or (b) require the Overpaid Eligible Holder to return the value of the Excess Discount Rights. To the extent Delphi's provisional claim allowance or estimation results in a particular claimholder receiving fewer discount rights than it should have received based on the ultimate allowed amount of its claim, no subsequent adjustment will be made in respect of the claimholder's Claim. Each discount right entitles a claimholder who fully exercise its basic subscription privilege to subscribe, prior to the expiration date of the Discount Rights Offering, for additional shares of Reorganized Delphi common stock at an exercise price of US$38.64 per full share. If an insufficient number of shares are available to fully satisfy Oversubscription Privilege requests, the available shares, if any, will be allocated pro rata among the applicants. If there is a pro rata allocation of the remaining shares and an applicant receives an larger allocation than it subscribed for under its Oversubscription Privilege, Reorganized Delphi will issue the number of shares subscribed and allocate the remaining shares pro rata among the remaining applicants. There is no Oversubscription Privilege in the Par Rights Offering. The Par Rights and Discount Rights will expire at 5:00 p.m., New York City time, on March 31, 2008. Appaloosa Management L.P. and the other Plan Investors have agreed to backstop the Discount Rights Offering, on the terms and subject to the conditions of their New Equity Purchase and Commitment Agreement with the Debtors. Pursuant to the Backstop Agreement, the Plan Investors will purchase, for the US$38.39 in cash per full share, any shares that are not purchased pursuant to the exercise of Discount Rights. The Plan Investors' Backstop Agreement does not apply to the Par Rights Offering. If all of the Par Rights are not exercised in the Par Rights Offering, the remaining shares of Reorganized Delphi common stock will be issued to certain creditors in partial satisfaction of their claims. Use of Proceeds The Rights Offering is conducted to raise a portion of the funds necessary to consummate the Plan, Rodney O'Neal, Delphi Corp.'s chief executive officer and president, related in Delphi's Registration Statement. On the Effective Date of the Plan, all existing shares of Delphi's common stock, and any options, warrants, rights to purchase shares of Delphi common stock or other outstanding equity securities will be canceled. On or shortly after the Effective Date, Reorganized Delphi will make the distributions provided for in the Plan, including issuing the shares of new common stock for which Par Rights and Discount Rights are exercised in the Rights Offerings. On the Effective Date, Reorganized Delphi will have up to 160,124,155 shares of common stock outstanding assuming: (1) the conversion of up to 35,381,155 shares of Convertible Preferred Stock; (2) no exercise of Par Rights and exercise in full of Discount Rights or the Plan Investors' Backstop Agreement regarding the Discount Rights Offering; (3) the exercise in full of six-month warrants, seven-year warrants and ten-year warrants that are initially exercisable for the purchase of up to 25,113,275 shares of Reorganized Delphi common stock; and (4) the issuance of 17,237,418 shares of Reorganized Delphi common stock to creditors in respect of Trade and Other Unsecured Claims, aggregating approximately US$1,310,000,000. Assuming that all Par Rights are exercised, Delphi anticipates receiving up to US$2,900,000,000 in gross proceeds from the Rights Offerings before deducting fees, including the Plan Investors' backstop commitment fee, and expenses related to the rights offerings: * US$1,600,000,000 from the Discount Rights Offering; and * US$1,300,000,000 from the Par Rights Offering. If any shares of Reorganized Delphi common stock are purchased pursuant to the exercise of Oversubscription Privileges in the Discount Rights Offering, Reorganized Delphi will receive additional gross proceeds of US$0.25 per Oversubscription Privilege share, Mr. O'Neal disclosed. Delphi intends to use the net proceeds from the Rights Offering to make payments and distributions contemplated by the Plan and for general corporate purposes. The net proceeds from the Discount Rights Offering will be used for general corporate purposes, Mr. O'Neal elaborated. On the other hand, the net proceeds from the Par Rights Offering will be used to (i) satisfy certain liquidity requirements and claims asserted by the Debtors' labor unions; (ii) reduce the amount of preferred stock distributed to General Motors Corp.; and (iii) partially satisfy certain unsecured creditors' claims. As of March 10, 2008, the Appaloosa Plan Investors and their affiliates beneficially owned 125,739,448 shares, or 22.3%, of Delphi's existing common stock. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Europe on March 17, 2008, Moody's Investors Service affirmed Delphi Corp.'s Corporate Family Rating of (P)B2 but revised the rating on the company's US$3.7 billon of first lien term loans. Moody's also affirmed Delphi's (P)B3 rating on the company's proposed US$825 million of second lien term loans and its Speculative Grade Liquidity rating of SGL-2. The actions, Moody’s said, follow revisions to Delphi's financing arranged for its planned emergence from Chapter 11 bankruptcy protection. Moody’s also revised the ratings on Delphi Holdings Luxembourg S.ar.l.’s Euro equivalent of US$200 million first lien term loan, tranche B-1, guaranteed by Delphi Corporation to (P)Ba2 (LGD-2, 17%) from (P)Ba3 (LGD-2, 26%). GECINA SA: Spain Okays Sanahuja’s Buy of Metrovacesa Shares ----------------------------------------------------------- Spanish stock regulators gave its approval on March 12, 2008, for the Sanahuja family to acquire shares in Metrovacesa that it doesn’t own, Reuters reports. With the approval, the company is now one step closer into being broken up in different French and Spanish operations. The Sanahuja family offered to purchase 13.37% of the company at EUR83.21 per share. The company, according to Reuters, now only needs the approval of regulators from France. Once French regulators approve the transfer of shares from Gecine to Metrovacesa, Gecine will now be run by the family of Juan Bautista Soler, as well as, Chairman Joaquin Rivero, Reuters adds. Regulators from France, Reuters discloses, had taken the case to courts alleging that both Rivero and Soler had worked in collusion to increase their investment in Gecina. Headquartered in Paris, France, Gecina SA -- http://www.gecina.fr/-- (Paris:GFC) is a real estate investment trust primarily engaged in the rental of commercial and residential buildings. The company is structured in three business divisions, including Strategic Development, Commercial real estate and Residential real estate. Through its divisions, Gecina SA manages and develops a portfolio of assets, comprising of offices, residential buildings, healthcare facilities, logistic estate and hotels. The majority of the company's properties are located in Paris and the Parisian suburbs, with a small percentage located in Lyon and other areas. GECINA SA: Metrovacesa Separation Deal Cues S&P to Lower Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long- and short- term corporate credit ratings on French property company Gecina to 'BB+/B' from 'BBB-/A-3'. At the same time, the ratings were removed from CreditWatch with negative implications, where they had originally been placed on July 28, 2006. The outlook is negative. The ratings on the unsecured debt remain unchanged at 'BBB-' and remain on CreditWatch with negative implications until S&P assigns a recovery rating and a final rating. Given the unsecured nature of the instruments and related French jurisdiction, the issue ratings could either be one notch higher than or in line with the corporate credit rating. "The downgrade reflects ongoing uncertainties surrounding Gecina's separation agreement with Metrovacesa S.A.," said Standard & Poor's credit analyst Pierre Georges. These include key unknowns such as Gecina's future shareholding structure and any ultimate repercussions on its risk profile. The separation is also taking longer than expected. These factors, combined with the current challenging financial market conditions, translate into reduced or more expensive access to capital sources, which in turn may negatively affect Gecina's credit metrics and financial flexibility. "The negative outlook reflects further possible ratings pressure if there is any deterioration in the group's liquidity position, and/or any negative business or financial implications from the outcome of the ongoing separation process and of the appeal against the regulator's decision," said Mr. Georges. S&P could lower the ratings if a full takeover bid is launched; if financing risks increase further; or in the case of a large acquisition. When and if Gecina's shareholding structure finally stabilizes and financial flexibility improves, S&P could revise the outlook back to stable. GECINA SA: Shareholders Ordinary General Meet Set for April 22 -------------------------------------------------------------- The shareholders of GECINA are invited to attend an Ordinary General Meeting to be held at 9:30 a.m. on April 22, 2008. The meeting will be held at Palais des Congres, Level 3 – Amphitheatre Bordeaux 2, place de la Porte Maillot in Paris, France. The company will be sending the correspondence and proxy voting forms out directly to all shareholders. The preparatory documents for the Meeting will be available to shareholders and/or sent out on request in accordance with the legislative and regulatory provisions applicable, with written requests to be sent to the company’s registered office or faxed to +33 1 40 40 64 81. The General Meeting will notably be giving its opinion on the payment of a dividend of EUR5.01 per share for 2007, to be paid out on April 28th, 2008, and not April 25th as had been indicated previously. Headquartered in Paris, France, Gecina SA -- http://www.gecina.fr/-- (Paris:GFC) is a real estate investment trust primarily engaged in the rental of commercial and residential buildings. The company is structured in three business divisions, including Strategic Development, Commercial real estate and Residential real estate. Through its divisions, Gecina SA manages and develops a portfolio of assets, comprising of offices, residential buildings, healthcare facilities, logistic estate and hotels. The majority of the company's properties are located in Paris and the Parisian suburbs, with a small percentage located in Lyon and other areas. LEAR CORP: S&P Puts Ratings on Neg. Watch on Extended AAM Strike ---------------------------------------------------------------- Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/--) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expect American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. The two sides resumed negotiations last week. "We believe the strike has gone on long enough to possibly begin to affect the financial resources of GM and those suppliers most exposed to the automaker," said Standard & Poor's credit analyst Robert Schulz. To resolve the CreditWatch listings, Standard & Poor's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) -- http://www.lear.com/-- supplies automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products. The company has more than 90,000 employees at 236 facilities in 33 countries. Lear operates in Europe (France, Czech Republic, United Kingdom, France, Germany, Hungary, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden), Latin America (Argentina, Mexico, and Venezuela), and Asia (Singapore, China, India, Japan, Philippines, South Korea, and Thailand). Lear carries B+ Long-Term Foreign and Local Issuer Credit ratings from Standard & Poor's. RHODIA SA: Chairman Nanot Resigns as Chairman of the Board ---------------------------------------------------------- Yves-Rene Nanot resigned as chairman of the Rhodia S.A.'s board on March 17, 2008, in accordance with provisions of Rhodia's by- laws concerning the age limit for chairmen. The board also decided to combine the functions of chairman and chief executive officer to streamline decision-making and accountability. The board also wanted to extend the responsibilities of the compensation and appointments committee to governance issues, to maintain the group's outstanding corporate governance practices. In this context, the board decided to appoint Jean-Pierre Clamadieu chairman and chief executive officer of Rhodia, thereby expressing its confidence in his ability to pursue implementation of the group’s profitable growth strategy. Mr. Clamadieu has been CEO of the Rhodia Group since October 2003. Between 1993 and 2003 he held several executive positions in the group, as President of Rhodia Chemicals, Latin America, President of the Eco Services Business, Senior Vice-President, Corporate Purchasing and President of the Pharmaceuticals & Agrochemicals Division. About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. The group generated sales of EUR4.8 billion in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As of Feb. 19, 2008, Rhodia S.A. carries Moody's long-term corporate family rating of Ba3 and senior unsecured debt rating of B1 with positive outlook. The company also carries Standard & Poor's BB- long-term foreign and local issuer credit ratings, and B short-term foreign and local issuer credit ratings. The ratings outlook is stable. Fitch Ratings assigned long-term issuer default rating at BB- and senior unsecured debt rating at BB- with outlook positive. ============= G E R M A N Y ============= A-B-BAU GMBH: Claims Registration Period Ends April 11 ------------------------------------------------------ Creditors of A-B-Bau GmbH have until April 11, 2008, to register their claims with court-appointed insolvency manager Knut Rebholz. Creditors and other interested parties are encouraged to attend the meeting at 11:05 a.m. on April 25, 2008, at which time the insolvency manager will verify the claims set out in his report. The meeting of creditors will be held at: The District Court of Cloppenburg Hall 6 Hauptgebaude Burgstrasse 9 49661 Cloppenburg Germany The insolvency manager can be reached at: Hermann Berding Jammertal 1 49661 Cloppenburg Germany Tel: 04471/9126-0 Fax: 04471/82997 The District Court of Cloppenburg opened bankruptcy proceedings against A-B-Bau GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: A-B-Bau GmbH Attn: Alfons Brueggehagen, Manager Antoniusstr. 8 49696 Molbergen Germany ACTIV-NET GMBH: Claims Registration Period Ends April 10 -------------------------------------------------------- Creditors of Activ-net GmbH & Co. KG have until April 10, 2008, to register their claims with court-appointed insolvency manager Manfred Gottschalk. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Bochum Hall A29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Manfred Gottschalk Kirchender Dorfweg 14 58313 Herdecke Germany The District Court of Bochum opened bankruptcy proceedings against Activ-net GmbH & Co. KG on Feb. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Activ-net GmbH & Co. KG Konrad-Zuse-Str. 4 44801 Bochum Germany AUTO CREW: Claims Registration Period Ends April 11 --------------------------------------------------- Creditors of Auto Crew Riedel GmbH have until April 11, 2008, to register their claims with court-appointed insolvency manager Christian Graf Brockdorff. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 4, 2008, at which time the insolvency manager will verify the claims set out in his report. The meeting of creditors will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The insolvency manager can be reached at: Christian Graf Brockdorff Friedrich-Ebert-Str. 36 14469 Potsdam Germany The District Court of Charlottenburg opened bankruptcy proceedings against Auto Crew Riedel GmbH on Jan. 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto Crew Riedel GmbH Berliner Allee 246 13088 Berlin Germany AUTOHAUS PETERS: Claims Registration Period Ends April 10 --------------------------------------------------------- Creditors of Autohaus Peters GmbH have until April 10, 2008, to register their claims with court-appointed insolvency manager Karina Schwarz. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on May 8, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall D Insolvency Department Liebknechtstrasse 65-91 39110 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karina Schwarz Klausenerstr. 24 39112 Magdeburg Germany Tel: 0391/6286260 Fax: 0391/ 6286266 E-mail: magdeburg@Rechtsanwaelte-Schwarz.de The District Court of Magdeburg opened bankruptcy proceedings against Autohaus Peters GmbH on March 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Autohaus Peters GmbH Helmstedter Chaussee 29 39130 Magdeburg Germany BFD BETON: Claims Registration Ends April 11 -------------------------------------------- Creditors of BFD Beton-und Fertigteiltechnik Duderstadt GmbH have until April 11, 2008 to register their claims with court- appointed insolvency manager Burghard Wegener. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 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 Goettingen Hall B11 Berliner Strasse 8 37073 Goettingen 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: Burghard Wegener Obere Karspuele 36, D 37073 Goettingen Germany Tel: 0551/9003660 Fax: 0551/90036629 The District Court of Goettingen opened bankruptcy proceedings against BFD Beton-und Fertigteiltechnik Duderstadt GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BFD Beton-und Fertigteiltechnik Duderstadt GmbH Attn: Karl Heine, Manager Industriestrasse 68 37115 Duderstadt Germany EMBO TEXTILPRODUKTIONS: Claims Registration Period Ends April 11 ---------------------------------------------------------------- Creditors of EMBO Textilproduktionsgesellschaft mbH & Co. KG have until April 11, 2008, to register their claims with court- appointed insolvency manager Knut Rebholz. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on June 12, 2008, at which time the insolvency manager will verify the claims set out in his report. The meeting of creditors will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The insolvency manager can be reached at: Knut Rebholz Cicerostr. 22 10709 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against EMBO Textilproduktionsgesellschaft mbH & Co. KG on Jan. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EMBO Textilproduktionsgesellschaft mbH & Co. KG Stieffring 2 13627 Berlin Germany FRANZ SANDMEIER: Claims Registration Period Ends April 10 --------------------------------------------------------- Creditors of Franz Sandmeier Mineraloel GmbH have until April 10, 2008, to register their claims with court-appointed insolvency manager Stephan Jaeger. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on May 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stephan Jaeger Leopoldstr. 139 80804 Munich Germany Tel: 089/361930-750 Fax: 089/361930-999 The District Court of Munich opened bankruptcy proceedings against Franz Sandmeier Mineraloel GmbH on March 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Franz Sandmeier Mineraloel GmbH Fuerstenfelder Str. 7 85232 Bergkirchen Germany GERGEN HOCH: Claims Registration Ends April 11 ---------------------------------------------- Creditors of Gergen Hoch- und Tiefbau GmbH & Co. KG have until April 11, 2008 to register their claims with court-appointed insolvency manager Udo Groener. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on April 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Saarbruecken Meeting Hall 13 First Floor Vopeliusstrasse 2 66280 Sulzbach Germany The Court will verify the claims set out in the insolvency manager's report at 8:35 a.m. on May 13, 2008, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Udo Groener Faktoreistrasse 4 66111 Saarbruecken Germany Tel: 0681/41010 Fax: 0681/ 4101 276 The District Court of Saarbruecken opened bankruptcy proceedings against Gergen Hoch- und Tiefbau GmbH & Co. KG on March 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gergen Hoch- und Tiefbau GmbH & Co. KG Alfred-Nobel-Strasse 10 66793 Saarwellingen Germany HOCHWALD TUERENWERK: Claims Registration Ends April 11 ------------------------------------------------------ Creditors of Hochwald Tuerenwerk GmbH have until April 11, 2008 to register their claims with court-appointed insolvency manager Bernhard C. Seibel. Claims will be verified at 11:30 a.m. on April 23, 2008 at: The District Court of Trier Hall 56 Justizstrasse 2,4,6 54290 Trier Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Bernhard C. Seibel Boehmerstrasse 16 54290 Trier Germany Tel: 0651/975900 Fax: 0651/9759095 E-mail: info@seibel-partner.de The District Court of Trier opened bankruptcy proceedings against Hochwald Tuerenwerk GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hochwald Tuerenwerk GmbH Attn: Anton Haag, Markus Haag and Raymond Haag, Managers Kapellenstr. 39a 54427 Kell Germany IKB DEUTSCHE: Board Halts Sale of Portfolio Investments ------------------------------------------------------- IKB Deutsche Industriebank AG disclosed in its website that its Board of Managing Directors has temporarily stopped the intended sale of IKB’s portfolio investments due to the current market environment. However, IKB still plans to pursue a sale of these investments. Against the background of negative developments in the financial markets,IKB expects further fair value losses of about EUR450 million from the sale of its EUR3 billion (nominal) portfolio investments carrying a higher probability of default. IKB had already written down EUR630 million of the portfolio. The total losses of the portfolio amount to EUR2.1 billion, of which EUR1 billion are shielded by KfW and the banking pool. IKB expects further fair value losses of EUR140 million on the EUR2.8 billion (nominal) portfolio comprising assets carrying a lower risk profile. In February 2008, IKB had accounted for mark to market losses of EUR320 million on that portfolio. Further supporting measures The higher fair value losses will impact the bank’s capital. To offset these effects, KfW has made another capital injection into IKB’s capital, as envisaged in the package of measures presented in February 2008. The capital injection of EUR450 million comes in the form of a loan to IKB with immediate debt waiver (Forderungsverzicht) and compensation out of future profits (Besserungsabrede). This measure comprises the same elements as the EUR600 million capital injection on 19 February 2008. Key elements are: -- Compensation payments out of future profits related to both measures to the amount of EUR1.05 billion (plus expenses and interest payments). Compensation rights only occur insofar as IKB does not incur a loss according to its annual accounts for the AG under German GAAP (HGB) as a result of the compensation payments. -- Interest payments only in those years, where as a result of the compensation payments, IKB does not incur a loss according to its accounts for the AG under German GAAP (HGB). -- Interest payments and compensation payments out of future profits will always precede profit-participation certificates and silent participations of IKB AG. Estimated loss higher Following the additional fair value losses, IKB expects a loss after tax for the group in the magnitude of EUR0.8 billion for the financial year 2007/08 according to IFRS. This includes reverse (positive) valuation effects of now EUR1.3 billion for IKB’s liabilities (after deferred taxes). For IKB AG the Board of Managing Directors expects a loss in the order of EUR1.2 billion under German GAAP (HGB) after allowing for loss participation of IKB’s silent participations and participation certificates. For the next financial years, IKB will not post any or very low profits for the group and IKB AG, due to the compensation agreements (Besse3 rungsabrede) linked to the capital measures of EUR1.05 billion as well as the reversal of write-downs on IKB’s hybrid debt securities. Financial calendar updated Against the background of the current developments, IKB will publish its 6-month results for the financial year 2007/08 (1 April 2007 – 30 September 2007) and the 9-month results for 2007/08 (1 April 2007 – 31 December 2007) in April 2008. About IKB Deutsche Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on March 7, 2008, Fitch Ratings downgraded IKB Deutsche Industriebank AG's hybrid securities to 'CCC-' (CCC minus) from the 'B' range and removed them from Rating Watch Negative (RWN) where they were placed on Feb. 14, 2008, and Dec. 21, 2007. The company carries Fitch's 'E' Individual rating. As reported in the TCR-Europe on Jan. 25, 2008, Moody's Investors Service downgraded the bank financial strength rating of IKB Deutsche Industriebank to E+ from D-. The outlook on the BFSR is now developing. IKB DEUTSCHE: Fitch Cuts Ratings on Hybrid Securities to CC ----------------------------------------------------------- Fitch Ratings downgraded IKB Deutsche Industriebank AG's hybrid securities to 'CC' from 'CCC-' (CCC minus). Their respective Recovery Ratings were downgraded to 'RR5' from 'RR4'. This rating action follows the announcement on further write- downs taken on structured securities and the support structure chosen to partly cover these. Fitch has affirmed IKB's Individual rating at 'E' and Support rating at '1'. IKB's Long-term Issuer Default rating of 'A+' and Short-term IDR of 'F1' remain on Rating Watch Negative (RWN), where they were placed on 6 March. The subordinated debt issues are rated 'A' and are on RWN, where they were placed on March 6. "Higher net loss expectations and a further lengthened period of time expected before the hybrid debt securities resume coupon payments triggered the downgrade," says Sabine Bauer, Director in Fitch's Financial Institutions Group. "IKB's hybrid debt securities now have below average recovery prospects." The equity support drawn upon is an implementation of support measures previously agreed. Previous support measures included a buffer of EUR450m, which has now been used. The preferential claim, which was introduced in February, increases to EUR1,050m from EUR600m, increasing the time hybrid debt holders need to wait for notional write-ups and coupon payments. While a support payment of an equal amount was directly made into equity and thereby supports IKB's capital ratios, its repayment (principal and interest) needs to be made out of future earnings with those payments ranking above hybrid debt holders. According to Fitch's definitions, RR5 rated securities have characteristics in line with securities historically recovering 11%-30% of current principal and related interest. The additional EUR590m impairment charges reflect the current difficult environment and are derived from price indications the bank has received for its higher risk structured securities. Fitch understands that while IKB's internal model results in higher valuations, these impairment charges were taken as the bank is urged to dispose its lower quality structured securities in the short-term. IKB intends to keep the higher quality structured securities given their relative short remaining maturities. IKB's lower and higher quality sub-portfolios are now covered 70% and 13% respectively. Fitch currently expects a net loss for IKB on an unconsolidated basis according to German accounting standards for the financial year ending-March 2008 of around EUR1.8bn, of which Fitch expects around one third to be allocated to hybrid debt holders. For IKB's subsidiary IKB International SA, Fitch expects a net loss of around EUR600m, of which around one fifth will be allocated to hybrid debt holders. IKB's unconsolidated total capital ratio (before taking into account unrealised losses under local GAAP) presently stands at 8.5%. IKB's Long- and Short-term IDRs continue to reflect the extremely high probability of support from its main shareholder, KfW, and IKB's importance to the key German "Mittelstand" sector. In light of their significant involvement in the restructuring since end-July 2007, Fitch considers the probability of KfW (rated 'AAA'/Stable) and the German authorities continuing to support IKB as extremely high. The RWN reflects Fitch's opinion that KfW's planned sale of its 43% stake, which could increase up to 90% following the planned capital increase, would most likely result in a downgrade of the IDRs. The Individual rating reflects Fitch's view that IKB's financial position remains vulnerable. These hybrid capital instruments were downgraded: -- EUR150m Propart Funding Ltd's profit participation certificates maturing in 2015: downgraded to 'CC' from 'CCC-' -- EUR75m IKB Funding Trust I's and EUR400m Funding Trust II's perpetual trust preferred securities: downgraded to 'CC' from 'CCC-' -- EUR200m Hybrid Raising GmbH's and EUR200m Capital Raising GmbH's perpetual notes linked to a silent participation in IKB: downgraded to 'CC' from 'CCC-' -- EUR70m IKB International SA's capital contribution certificates maturing in 2010 and EUR100m IKB International SA's capital contribution certificates maturing in 2009: downgraded to 'CC' from 'CCC-'. JOLITZ GMBH: Claims Registration Period Ends April 10 ----------------------------------------------------- Creditors of Jolitz GmbH have until April 10, 2008, to register their claims with court-appointed insolvency manager Herr Peter Knoepfel. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on April 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Luebeck Hall 256 Am Burgfeld 7 23568 Luebeck 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: Herr Peter Knoepfel Hallerstr. 76 20146 Hamburg Germany The District Court of Luebeck opened bankruptcy proceedings against Jolitz GmbH on March 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Jolitz GmbH Attn: Frank Jolitz, Manager Sibeliusstra-sse 2 23556 Luebeck Germany KUECHEN OSKAR: Claims Registration Ends April 11 ------------------------------------------------ Creditors of Kuechen Oskar Fachmarkt GmbH have until April 11, 2008 to register their claims with court-appointed insolvency manager Henning Schorisch. Claims will be verified at 10:00 a.m. on May 6, 2008 at: The District Court of Dresden Hall D132 Olbrichtplatz 1 01099 Dresden Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henning Schorisch Wasastrasse 15 01219 Dresden Germany E-mail: http://www.hww-kanzlei.de/ The District Court of Dresden opened bankruptcy proceedings against Kuechen Oskar Fachmarkt GmbH on March 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kuechen Oskar Fachmarkt GmbH Attn: Heiner Bongards, Manager Bahnhofstrasse 15 01609 Groeditz Germany MICHAEL BOB: Claims Registration Ends April 11 ---------------------------------------------- Creditors of Michael Bob GmbH & Co. Textilherstellung KG have until April 11, 2008 to register their claims with court- appointed insolvency manager Knut Rebholz. Claims will be verified at 10:05 a.m. on June 2, 2008 at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Knut Rebholz Cicerostr. 22 10709 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Michael Bob GmbH & Co. Textilherstellung KG on Jan. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Michael Bob GmbH & Co. Textilherstellung KG Gerhart-Hauptmann-Str. 15 03044 Cottbus Germany PROVIDE-VR 2003-1: S&P Lowers Ratings on Class D and E Notes ------------------------------------------------------------ Standard & Poor's Ratings Services removed from CreditWatch with negative implications and lowered its ratings on the class D and E notes issued by PROVIDE-VR 2003-1 PLC. At the same time, the ratings on the class A+, A, B, and C notes were affirmed and the class B and C notes were removed from CreditWatch negative. PROVIDE VR 2003-1 is a partially-funded synthetic German RMBS transaction. The class B, C, D, and E notes had been placed on CreditWatch in December 2007 as a result of ongoing deterioration of the underlying loan portfolio, as well as increasing loss allocations to the unrated class F notes. The resolution of these CreditWatch placements and the consequent rating actions are the result of an extensive loan- level analysis S&P has undertaken of the current portfolio, as well as historical loan resolutions. Total loss allocation in the transaction is EUR2.0 million to date, representing a 33% erosion of the EUR6.1 million class F notes, which act as the first-loss piece. The remaining first- loss protection now represents only 1.45% of the outstanding principal balance, which contrasts with the current balance of the total defaulted reference claims and credit events of EUR10.07 million. This amount represents 3.56% of the total balance, or more than twice the protection available to the lowest-rated notes. Similar to its predecessor PROVIDE VR 2002-1, PROVIDE VR 2003-1 is a second-lien securitization featuring almost only loan parts in excess of the pieces eligible for covered bond issuance. Such transactions are generally more prone to produce realized losses than first-lien securitizations. This is shown in Standard & Poor's German RMBS index, where the three transactions with the highest loss allocations, including PROVIDE VR 2002-1 and 2003-1, are all second-lien securitizations that include these loan pieces. S&P’s analysis of losses to date in this transaction has demonstrated that the realized losses were mainly triggered by a marked deterioration of property valuations, especially for those that were auctioned rather than sold on the open market. Furthermore, S&P observed a more severe deterioration for properties in eastern Germany and those that are non-owner occupied. Given S&P’s observation of the loss experience to date in this particular pool, S&P has assessed the likelihood of future losses for both the performing and nonperforming parts of the pool. The required enhancement levels at the various rating levels were compared to the actual credit protection in the transaction, which indicated that the class D and E notes had insufficient support to maintain their current ratings. Amortization in PROVIDE-VR 2003-1 has reduced the pool factor to 63%. S&P will continue to closely monitor the performance of the transaction and pay close attention to loss crystallization and recovery rates over the near and medium term. Ratings List PROVIDE-VR 2003-1 PLC EUR75.75 Million Floating-Rate Credit-Linked Notes Ratings Removed from CreditWatch Negative and Affirmed Rating ------ Class To From ----- -- ---- B AA AA/Watch Neg C A A/Watch Neg Ratings Removed from CreditWatch Negative and Lowered Rating ------ Class To From ----- -- ---- D BB BBB/Watch Neg E B BB/Watch Neg Ratings Affirmed Class Rating ----- ------ A+ AAA A AAA SDP INGENIEURTECHNIK: Claims Registration Period Ends April 10 -------------------------------------------------------------- Creditors of SDP Ingenieurtechnik GmbH & Co. KG have until April 10, 2008, to register their claims with court-appointed insolvency manager Norbert Schrader. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on May 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal 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 Schrader Viehhofstr. 117 42117 Wuppertal Germany Tel: 0202-430980 Fax: 0202-4309843 The District Court of Wuppertal opened bankruptcy proceedings against SDP Ingenieurtechnik GmbH & Co. KG on March 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SDP Ingenieurtechnik GmbH & Co. KG Attn: Klaus Schmidt, Manager Bongardtstr. 2 44787 Bochum Germany STANZ- U. UMFORMTECHNIK: Claims Registration Ends April 10 ---------------------------------------------------------- Creditors of Stanz- u. Umformtechnik GmbH have until April 10, 2008, to register their claims with court-appointed insolvency manager Gerhard Benner. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on May 19, 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 Rottweil Room 0.05 Branch Office Koernerstr. 29 78628 Rottweil Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Gerhard Benner Koenigstr. 16 78628 Rottweil Germany Tel: 0741-174670 Fax: 0741-6725 The District Court of Rottweil opened bankruptcy proceedings against Stanz- u. Umformtechnik GmbH on Feb. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Stanz- u. Umformtechnik GmbH Attn: Bruno Breier, Manager Buchenstr. 2 72172 Sulz Germany STRASSENBAUGESELLSCHAFT HOF: Claims Registration Ends April 11 -------------------------------------------------------------- Creditors of Strassenbaugesellschaft Hof Gesellschaft mit beschrankter Haftung have until April 11, 2008 to register their claims with court-appointed insolvency manager Dr. Martin Heidrich. Claims will be verified at 1:00 p.m. on May 21, 2008 at: The District Court of Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Martin Heidrich Grillparzer Str. 16 c/o Dr. Pannen 81675 Munich Germany Tel: 089/41619340 Fax: 089/4161934180 The District Court of Hof opened bankruptcy proceedings against Strassenbaugesellschaft Hof Gesellschaft mit beschränkter Haftung on Feb. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Strassenbaugesellschaft Hof Gesellschaft mit beschrankter Haftung Attn: Horst Schaller, Manager Schaumbergstr. 1 95032 Hof Germany UN POCO LOCO: Claims Registration Period Ends April 10 ------------------------------------------------------ Creditors of Un POCO LOCO Gastronomie- und Handels GmbH have until April 10, 2008, to register their claims with court- appointed insolvency manager Achim Thomas Thiele. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on May 8, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Achim Thomas Thiele Bronnerstrasse 7 44141 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Un POCO LOCO Gastronomie- und Handels GmbH on Feb. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Un POCO LOCO Gastronomie- und Handels GmbH Attn: Zoopigi Paparousopoulou, Manager Hohe Str. 61 a 44139 Dortmund Germany ============= H U N G A R Y ============= GUESS? INC: Co-Founder Wins Legal Battle Against Christie's ----------------------------------------------------------- Georges Marciano, co-founder of Guess? Inc. won a two year legal battle with the famed Beverly Hills auction house Christie's, Inc., when attorneys for the company agreed to provide documents that Marciano had been seeking in connection with the theft of his art works valued at tens of millions of dollars. Mr. Marciano represented himself during a hearing in Los Angeles Superior Court. Attorneys for Christie's had sought to quash Mr. Marciano's motion seeking documents related to the missing art. However, during the hearing, Judge Elisabeth White suggested both sides meet in the court's jury room and see whether some agreement could be reached. After meeting for 45 minutes, Mr. Marciano and Christie's attorneys reached an agreement providing Mr. Marciano with key documents that he had been seeking. The agreement is seen as a key step in Mr. Marciano's efforts to recover his missing art works. Mr. Marciano maintains these documents will be crucial to investigating the disappearance of more than 600 works of art, including: * original paintings by Indiana, Rauschenberg, and Ruscha; * monumental sculptures, including Chamberlain sculpture and Miro sculptures; * prints, including Warhol, Chagall, Indiana, Dine, Jasper Jones and more; * a wine collection of over 26,000 bottles, including Petrus, Margaux, Lafitte, Yquiem, and Cheval Blanc Vintage from the 1970's to 2000, and sales proceeds. After the hearing, Mr. Marciano declared, "Today, my position was vindicated and now and I look forward to pursuing the return of my missing art collection. I have been asking Christie's to produce these documents for over two years." In 2007, Mr. Marciano sued several of his former employees and others on a variety of charges including art theft and negligence, theft of millions of dollars worth of funds, art, and wine and the destruction of his computer, financial and personal records, as well as conspiring to commit theft. Mr. Marciano has been seeking records from Christie's to help in legal actions against his former accountant, a former Christie's employee, and several ex-employees. These actions allege that five former employees, a former accountant, a former employee of Christie's and an art shipping company illegally conspired to deliver a one-two punch to Mr. Marciano -- first stealing millions of dollars worth of funds and then tens of millions in fine art. "I was shocked at this massive betrayal by people I had known, loved and trusted for so many years," Mr. Marciano said upon the discovery of this massive theft. "This is one of the largest, if not the largest, art thefts as measured by the quantity of art stolen in the history of America," he said. While no criminal charges have been brought by law enforcement to date, Marciano hopes that his efforts to prove civil liability will produce a body of evidence that can be used to bring this virtually unprecedented conspiracy and theft into the criminal courts in the future. As a first step, Marciano's attorneys have brought a civil action which seeks to prove that he was damaged in an amount of more than US$60 million. He is seeking those damages, plus punitive or exemplary damages, to punish the wrongdoers for egregious conduct and to deter the wrongdoers and others from similar conduct in the future. Guess? Inc. (NYSE: GES) -- http://www.guessinc.com/-- designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, accessories and related consumer products. At May 5, 2007, the company operated 336 retail stores in the United States and Canada. The company also distributes its products through better department and specialty stores around the world, including the Philippines, Hungary and the Dominican Republic. * * * Guess? Inc. still carries Standard & Poor's "BB" long-term foreign and local issuer credit ratings, which were assigned in December 2006. ========= I T A L Y ========= ALITALIA SPA: Silvio Berlusconi Calls for Italian Bidders --------------------------------------------------------- Former prime minister Silvio Berlusconi has called on local businessmen to come up with a better bid than what Air France- KLM SA offered for the Italian government's 49.9% stake in Alitalia S.p.A., The Wall Street Journal reports. "I think the moment has come for any businessmen in Italy with a remnant of pride to come forward with an industrial plan in order to avoid a shameful end for our flagship carrier," Mr. Berlusconi was quoted by WSJ as saying during an interview with Canale 5. Mr. Berlusconi, whose party is expected to win the upcoming national election, had said that if elected, his adnistration will approve the sale of Italy's stake in Alitalia to Air France, subject to several conditions. He, however, stressed that an Italian buyer is much preferred. As reported in the TRC-Europe on March 19, 2008, the Italian Ministry of Economy and Finance has approved Air France's offer for Alitalia. Finance Minister Tommaso Padoa-Schioppa, however, said Air France's offer will not be binding if another party submits "a competing and improved public offer and the Ministry accepts that offer." Air France, headed by CEO Jean-Cyril Spinetta, is persuading unions to accept it offer, but had met resistance as its business plan for Alitalia entails 1,600 job cuts at the Italian carrier's flight operations -- affecting 500 pilots, 600 flight assistants and 500 ground staff -- and 500 more at its ground division. Air France said its binding offer is subject to, among other conditions, finalization of an agreement with trade unions. 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, including Argentina and Japan. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Silvio Berlusconi Likely to Veto Air France Deal -------------------------------------------------------------- Air-France KLM's planned takeover of Alitalia S.p.A is facing yet another setback after Silvio Berlusconi declared it would veto the deal if he wins the April 13-14 elections, "saying he's against the conditions received," Deepa Babington writes for Reuters. Christian Boireau, Air France-KLM's commercial director for France, however, told the Associated Free Press, "we know what we can do and this (takeover) plan must be either accepted or refused, but now is the time, not in two months or in a month." Reuters relates Mr. Berlusconi, who is currently leading the polls to become Italy's next prime minister, promised a rival consortium bid led by Air One, whose initial offer was turned down by the outgoing government. According to Mr. Berlusconi, the consortium would make its offer in three or four weeks with banks ready to support the deal, Reuters reveals. Mr. Berlusconi's sons, Reuters adds, are also likely to join the rival bid. However, Air One disclosed it still has study Alitalia's accounts, which could take at least three weeks, before it could decide to make a comeback bid, Reuters relates. Political rivals, on the other had, claimed Mr. Berlusconi's move could push Alitalia, which only has months left before it runs of cash, further to bankruptcy, Reuters reports. Meanwhile, Alitalia's unions are pushing through talks over plans to cut the workforce at the airline, the paper states. Alitalia's Binding Offer As previously reported in the TCR-Europe, Alitalia's Board of Directors resolved unanimously on March 15, 2008, in favor of Air France-KLM's proposal and decided to give the mandate to Chairman Maurizio Prato to sign the acceptance letter. The offer is subject to a number of effectiveness conditions to be fulfilled by March 31, 2008. The Board has carried out its evaluation of the Binding Offer also in light of the worsened airline sector and macro economic scenario, as well as considering the critical situation of the Company and available alternatives. The Board believes that such proposal offers the appropriate solution to preserve the Company's assets and to promote its rapid and stable restructuring and its development in the long- term, also in light of the benefits coming from the synergies deriving from the integration with the global leader of the airline industry. Consistently with the resolution taken, the Chairman signed the acceptance letter of the Agreement. Strategic Premises The scenario and the competitive environment of the air transport sector are rapidly moving towards forms of integration and consolidation involving a very limited number of hub carriers, which enable the achievement of some important benefits: * Higher critical mass, which allows to benefit from relevant economies of scale in terms of costs and revenues, and decreases the carrier's vulnerability to the high cyclicality and volatility that characterize the industry; * Access to very significant and stable synergies, which cannot be achieved through traditional alliances amongst airlines. In this environment, there is an emerging trend in the industry to leave only niche positioning to traditional carriers, which although operating efficiently, have a limited size and operate on a stand-alone basis. The airline industry is currently facing a cyclical downturn, worsened by the steep increase in fuel costs during these last months and by the general deterioration of the macro economic scenario. Alitalia is going through a highly critical situation, causing a progressive erosion of its liquidity position worsened by the aforementioned economic and industrial scenario. The Company has confirmed on a number of occasions, including when it approved the 2008 Budget, the need of a significant capital increase and to reduce in a sizeable manner its losses and the erosion of its equity through strategic actions marked by strong discontinuity with the past. The Plan for Survival/Transition, approved by the Company in September 2007, already included such actions of discontinuity through the new network design, the suspension of flights recording significantly negative economic results, and the subsequent downsizing of the fleet. Key strategic premise to that plan was the impossibility to pursue a stand alone positioning of the Company outside an industrial and financial integration with a strong carrier able to generate synergies. Following the approval of the Plan, the Company initiated a process aimed at identifying a partner who would share the need to favor the restructuring, the re-launch and the development of the Company. On Dec. 6, 2007, Air France-KLM presented a non binding offer for the potential integration with Alitalia. On Dec. 21, 2007, the Board of Directors resolved in favur of Air France-KLM's proposal considering it appropriate to offer to the Company the adequate solution to preserve the Company's assets and to promote its rapid and stable restructuring, giving mandate to the Chairman to start a period of exclusive negotiations. The Industrial Plan 2008-2010, prepared during the exclusivity period -- Jan. 18, 2008, to March 14, 2008, ended the and assumes the execution of a EUR1billion rights issue. Such Plan is the platform on which to add the synergies deriving from the integration of the Company with the Air France-KLM group. For Air France-KLM the approval of such plan represents an essential condition for the the integration of Alitalia in the French-Dutch Group. 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. SEAT PAGINE: Earns EUR98.4 Million for Year-Ended 2007 ------------------------------------------------------ Seat Pagine Gialle S.p.A. released its financial report for the year ended Dec. 31, 2007. The group posted net profit of EUR98.4 million on EUR1.45 billion in revenues for the year ended Dec. 31, 2007, compared with net profit of EUR80.1 million on EUR1.46 billion in revenues for the same period in 2006. At Dec. 31, 2007, the group's balance sheet showed EUR4.31 billion in total assets, EUR3.19 billion in total liabilities and EUR1.12 billion in total equity. Net financial debt amounted to EUR3.27 billion at Dec. 31, 2007 compared with EUR3.41 billion at Dec. 31, 2006, after a net disbursement of EUR118.1 million to acquire WLW GmbH and dividend payout of EUR62.2 million. Outlook 2008 Strategic focus will be on Italy, where Seat has its strongest assets and new growth opportunities exists thanks to the acceleration of the Internet market in 2007. -- Italy: Revenue growth expected in line with ’07 and EBITDA of the current business stable, after EUR10 million of incremental expenses to support print, but before EUR15 million of additional costs to exploit the Internet opportunity and EUR10 million of one offs; -- international: EBITDA expected to be down due to Telegate, in a transition year towards the new advertising-based online business and of integration with KlickTel, and in TDL, where results will be negatively impacted by the loss of revenues in a small number of large accounts in the financial institutions sector; -- consolidated EBITDA expected at about EUR610 million after one of costs and investment to growth the online business in Italy and abroad; investments in 2008 are expected to have positive effect on growth in 2009; and -- cash available for deleverage is expected to be about EUR180 million, post around EUR45 million for the recent acquisition of Klicktel and to finance the joint venture in Turkey; the possible favorable outcome of certain data claims are not included in this figure. In the current credit market environment, the company has adopted a financial policy devoting available financial resources to debt repayment and Internet development in Italy. According to that, the board of directors has resolved to propose to the general shareholders meeting not to pay dividends in 2008. The BoD has also approved to anticipate reimbursement of part of the installment on the senior debt due next June, for the amount of EUR35 million. About Seat Pagine Gialle Headquartered in Turin, Italy, Seat Pagine Gialle S.p.A. -- http://www.seat.it/-- provides a multimedia platform for assisting in the development of business contacts between users and advertisers. The Pagine Gialle directory is published in two versions for home and businesses, PagineGialle Casa and PagineGialle Lavoro. PagineGialle.it is a search engine intended for business searches, while 89.24.24 Pronto PagineGialle is a personalized telephone assistance, which provides users with information regarding train and flight schedules, traffic, weather, public utilities, entertainment and events, cinema, museum and pharmacies. Giallo Dat@ offers services for direct marketing. The company operates abroad through Telegate A.G., a telephone queries and assistance service, providing information on directories in Germany and worldwide, as well as personalized information, such as reservation and online purchasing services, and Thomson Directories Ltd, a local directory publisher in the United Kingdom. SEAT PAGINE: Moody's Affirms Ratings & Says Outlook is Negative --------------------------------------------------------------- Moody's Investors Service affirmed all of SEAT Pagine Gialle SpA's ratings while changing the outlook to negative from stable. Ratings affected include the Ba3 corporate family rating and the B2 rating on the company's EUR.1.3 billion 8% senior notes due 2014 issued by Lighthouse International Company SA. According to Moody's, the change in rating outlook to negative reflects these following: 1) SEAT's weaker-than-expected operating and financial performance for 2007, as reflected by an EBITDA of EUR650 million compared to management's previous guidance of EUR673 million to EUR685 million. Nevertheless, EBITDA in 2007 grew by 6.3% compared to 2006. 2) Lowered guidance for the 2008 financial results, with management having indicated that EBITDA will fall to around EUR610 million due to one-off costs and investments to grow the online business in Italy and abroad. This indicated decline contrasts with the previous forecast of 4% to 5% CAGR from 2007 to 2010. 3) A delay in the expected improvement in credit metrics resulting from the more challenging operating environment that the company is facing. While Net debt/EBITDA (as reported by the company) stood at 5.0x in 2007, the expected EBITDA reduction for 2008 indicates that deleveraging, on a Net debt / EBITDA basis, will slow down, as the ratio is likely to remain at around 5.0x by year-end 2008. 4) The recent erosion of equity support provided to debtholders as a result of the substantial decline in the market value of the company's equity. Moody's notes however that there are no covenants related to the company's equity value in the debt documentation. "The negative outlook reflects Moody's concerns regarding lack of visibility beyond 2008. The impact of the economic slowdown and the faster pace at which customers are migrating to web- based directory services from the traditional yellow and white pages print products are leading to lower visibility on revenues than anticipated," says Ivan Palacios, lead analyst for SEAT at Moody's. In this challenging context, Moody's notes positively that, as a result of the weaker-than-expected outlook, it is SEAT's management intention to devote available resources to debt repayment and that therefore no dividends will be paid in 2008 and debt prepayments, as in the past, will continue to be made when possible. SEAT's current credit metrics remain adequate for its Ba3 corporate family rating (CFR) as compared to similarly rated peers. However, should there be a more rapid deterioration in the operating environment than assumed in the EUR610 million EBITDA target for 2008, the credit metrics could deteriorate to levels no longer consistent with the Ba3 rating category. Therefore, SEAT's Ba3 CFR could be downgraded if (i) its operating performance deviates from the targets set for year-end 2008, (ii) its free cash flow generation worsens leading to pressure on the company's liquidity profile and/or (iii) it deploys cash for purposes other than the repayment of debt. Headquartered in Turin, SEAT is the number one directory publisher in Italy with operations in the UK, Germany and France. For the year ended 31 December 2007, SEAT generated consolidated revenues of EUR1.454 billion and EBITDA of EUR650 million. SEAT PAGINE: S&P Puts BB- Rating on Negative CreditWatch -------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating and issue ratings on Italy-based classified directories publisher SEAT PagineGialle SpA on CreditWatch with negative implications. The CreditWatch placement follows the company's announcement that it has materially revised downward its EBITDA forecast for 2008. The new EBITDA guidance for 2008 is EUR610 million, about 6% lower than the level reported in fiscal 2007. This is expected to mainly reflect additional investments to boost the online business development in Italy and abroad to develop the company's Internet positioning. These investments are expected to have positive growth effects from 2009 onward. "Lower EBITDA expectations raise concerns given the company's aggressively leveraged capital structure with total adjusted debt to EBITDA at about 5.5x at end-December 2007," said Standard & Poor's credit analyst Manuela Gabetta. "This is mitigated by SEAT's announcement that no dividends would be paid in 2008 to ordinary shareholders." Despite this, the company's demanding debt-service obligations (EUR163 million in 2008) leave limited scope for further operating underperformance or unexpectedly high working capital absorptions. S&P expects to resolve the CreditWatch after receiving further details of the company's strategic plan and operating forecast for the coming years. In particular, the evolution of the covenant headroom included in the company's EUR2.6 billion syndicated credit facility will be a point of focus. In the absence of negative developments on liquidity, any potential downgrade is likely limited to one notch given the cash- generative nature of the classified directories business. SEAT PAGINE: To Focus on Searching & Exploiting Online Business --------------------------------------------------------------- Seat Pagine Gialle S.p.A. confirmed that the group's strategy for 2008 will focus mainly on searching and exploiting new online business opportunities in Italy. Luca Mojocchi, Seat's chief executive officer, explained the group's guidance for financial year 2008. The company also pointed out that it will constantly inform the market on the implementation of the plan, during meetings to be held with the financial community. The medium-long term period guidance will be released as soon as possible in order to give detailed information about the expected results following the execution of the internet development strategy. The company pointed out that, in accordance with Article 6 of the Company By-laws, the Ordinary Shareholders’ Meetings, which will be convened on April 23 and 24, 2008, shall resolve upon the distribution of dividend of EUR0.0015 per savings share, for a total payout of about EUR204 thousand. The dividend will be paid as of May 22, 2007, with ex-dividend date on May 19, 2007. About Seat Pagine Gialle Headquartered in Turin, Italy, Seat Pagine Gialle S.p.A. -- http://www.seat.it/-- provides a multimedia platform for assisting in the development of business contacts between users and advertisers. The Pagine Gialle directory is published in two versions for home and businesses, PagineGialle Casa and PagineGialle Lavoro. PagineGialle.it is a search engine intended for business searches, while 89.24.24 Pronto PagineGialle is a personalized telephone assistance, which provides users with information regarding train and flight schedules, traffic, weather, public utilities, entertainment and events, cinema, museum and pharmacies. Giallo Dat@ offers services for direct marketing. The company operates abroad through Telegate A.G., a telephone queries and assistance service, providing information on directories in Germany and worldwide, as well as personalized information, such as reservation and online purchasing services, and Thomson Directories Ltd, a local directory publisher in the United Kingdom. TISCALI SPA: Posts EUR75.32 Million Net Loss for 2007 ----------------------------------------------------- Tiscali S.p.A.'s Board of Directors has approved its financial statements for full year ended Dec. 31, 2007. The company reported EUR65.22 million in net losses on EUR910.97 million in net revenues for 2007, compared with EUR130.57 million in net losses on EUR678.48 million in net revenues for 2006. As of Dec. 31, 2007, Tiscali had EUR1.6 billion in total assets, EUR1.39 million in total liabilities, and EUR206,970 in total shareholders' equity. Prospects The Strategic Plan approved in November 2007 envisaged a reinforcement of the Group's position in Italy and the U.K., focusing, especially in 2008, on a rapid integration of Pipex in the UK and on a strong marketing push in Italy. Tiscali's positioning will be maintained on the high.-capacity Dual Play (voice and data) offer and competitive prices, with an offer progressively enlarged to include IPTV services and the integration with mobile services. In confirming all strategic and financial targets of the Strategic Plan, the Board of Directors has mandated the CEO Mario Rosso: * to explore and evaluate the opportunities available to further generate value for all shareholders, in light of the ongoing consolidation process in the telecommunication arena in Europe; and * appoint a financial advisor within qualified financial institutions with whom preliminary contacts have been already initiated. About Tiscali Headquartered in Cagliari, Italy, Tiscali S.p.A. -- http://www.tiscali.com/-- offers Internet access in the country. The group also operates in other European countries, serving more than seven million subscribers, of which over 1.5 million are broadband users. Tiscali posted consecutive net losses for the past years: EUR5.5 million in 1999, EUR101 million in 2000, EUR1.66 billion in 2001, EUR593.1 million in 2002, EUR242.4 million in 2003, EUR131.8 million in 2004, EUR12.9 million in 2005, and EUR103.6 million in 2006. It posted EUR3.88 million in net losses on EUR614.33 million in net revenues for the nine months ended Sept. 30, 2007. * * * As reported in the TCR-Europe on Feb. 12, 2008, Standard & Poor's Ratings Services has raised its long-term corporate credit rating to 'B+' from 'B' on Tiscali S.p.A. The one-notch upgrade also applies to S&P's long-term debt ratings on the EUR50 million senior secured term loan and EUR50 million senior secured revolving credit facility taken on by financing vehicle Tiscali U.K. Holdings Ltd. These debt obligations' recovery ratings of respectively '3' (meaningful {50%-70%} recovery in the event of a payment default, given the presence of the EUR400 million bridge facility) and '2' (substantial {70%-90%} recovery in the event of a payment default) remain unchanged and are meaningfully influenced by the impact of the Italian insolvency regime on lenders' recovery prospects. At the same time, S&P removed all of the credit ratings from CreditWatch, where they had been placed with positive implications on Jan. 10, 2008, when they first assigned ratings to Tiscali. The outlook is stable. =================== K A Z A K H S T A N =================== AK BOKEN-TARAZ: Creditors Must File Claims by April 18 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Jambyl has declared LLP AK Boken-Taraz insolvent on Dec. 27, 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) 45-32-17 BANK CENTERCREDIT: Moody's Says Kookmin Buy Won't Affect Ratings ---------------------------------------------------------------- Moody's Investors Service commented on the announcement of Kookmin Bank (Korea) of plans to acquire a 30% stake in Bank CenterCredit, and to further raise its stake to 50.1% over a 30 month period. Moody's said that it views the proposed transaction as potentially positive for BCC's ratings, but that the announcement of acquisition has no immediate impact on BCC's ratings. Moody's current D-/Ba1/NP (negative outlook) ratings on BCC still capture the performance and repayment challenges faced by the bank over the immediate future. Moody's adds, however, that it may revise the outlook of BCC's current ratings once the acquisition of the initial 30% stake has been completed. According to the announcement, Kookmin Bank - the largest bank in Korea (Aa3/Prime-1/C) - has entered into an agreement with BCC's shareholders to acquire a 30% stake in the bank for US$634 million. Kookmin Bank is to acquire existing shares as well as to subscribe for an additional share issue of US$160 million. It is intended that US$240 million of proceeds from the initial transaction will be deposited by the current shareholders with the bank to support its liquidity. Following the acquisition of the initial 30% stake, the agreement also envisages that Kookmin Bank will increase its stake in the bank up to 50.1% or higher over a 30 month period. The acquisition is subject to approval of the Kazakh and Korean regulators and is expected to be approved by the end of July 2008. According to Moody's, the emergence of Kookmin Bank as the strategic shareholder in BCC is expected to lead to an improvement in BCC's currently stressed liquidity profile, while the involvement of Kookmin Bank in BCC's key corporate decisions, and assistance in risk management and asset-liability management is likely to have a positive impact on BCC's risk profile and franchise. At the same time, Moody's notes that it will await completion of the deal before it reviews the possible impact of this transaction on BCC's current ratings, because a possible delay in the approval of the transaction could add to the challenges currently faced by BCC. A ccording to Moody's, BCC is scheduled to make significant repayments of syndicated loans in July 2008 and if the transaction were to lag behind, it could lead to a deterioration of BCC's liquidity position and franchise. In light of these factors, and the continuing negative environment that may lead to deterioration of BCC's asset quality indicators, Moody's continues to maintain a negative outlook on the bank's ratings until the acquisition of 30% stake in BCC by Kookmin is approved by the regulators and finalised. Nevertheless, Moody's notes that the successful completion of the transaction is likely to lead to the outlook on the BFSR being changed to stable, whilst the outlook on debt and deposit ratings may further benefit from expectations of an increase by Kookmin Bank of its stake to 50.1% in the future, whereby Kookmin Bank would become a controlling shareholder of BCC. Moody's notes that BCC's current long-term local currency deposit rating of the bank factors the high probability of systemic support resulting in a two-notch uplift from the bank's Ba3 baseline credit assessment. Additionally, Moody's adds that the current bank's Ba1 foreign currency deposit rating is subject to the Ba1 foreign currency deposit ceiling of Kazakhstan. BCC is the sixth largest bank in Kazakhstan with total assets of US$7.51 billion and shareholders' equity of US$545.3 million at end-3Q2007. It primarily focuses its strategy on retail and SME banking where its market position is supported by its wide client base and the developed office network consisting of 205 offices throughout the country. Kookmin Bank, headquartered in Seoul, is the largest financial institution in Korea. The bank operates a strong retail banking franchise: about 62% of its loans are to households while about 33% go to small and medium sized enterprises. Total assets of the bank amounted to US$233 billion as of Dec. 31, 2007. HANSULTAN LLP: Claims Deadline Slated for April 18 -------------------------------------------------- The Tax Committee of Almaty has ordered the compulsory liquidation of LLP Hansultan. Creditors have until April 18, 2008, to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 HIMLES-TORG LLP: Claims Filing Period Ends April 18 --------------------------------------------------- LLP Himles-Torg has declared insolvency. Creditors have until April 18, 2008, to submit written proofs of claims to: LLP Himles-Torg Buhar-Jyrau ave. 66 Karaganda Kazakhstan JARDEM SYSTEM: Creditors' Claims Due on April 18 ------------------------------------------------ LLP Jardem System has declared insolvency. Creditors have until April 18, 2008, to submit written proofs of claims to: LLP Jardem System Jambyl Str. 159 Uzynagash Jambylsky Almaty Kazakhstan KAZKOMMERTSBANK: Earns KZT57.8 Bln in Year Ended Dec. 31, 2007 -------------------------------------------------------------- JSC Kazkommertsbank released its financial results for the year ended Dec. 31, 2007. Kazkommertsbank reported a net profit of KZT57,751 million for the year ended Dec. 31, 2007, compared with a net profit of KZT27,761 million for the year ended Dec. 31, 2006. At Dec. 31, 2007, Kazkommertsbank's balance sheet showed KZT2,997,232 million in total assets, KZT2,678,013 million in total liabilities and KZT319,219 million in stockholders' equity. Business Performance Overview Net Interest Income Net interest income before provisions for impairment losses increased by 2.3 times to KZT146,930 million in 2007 from KZT64,135 million in 2006, resulting primarily from 91.6% growth in average interest-earning assets. Interest income grew at a faster rate than interest expense, resulting in an increase in the Bank's net interest margin to 6.2% in 2007 from 5.1%. Net Non-Interest Income Net non-interest income increased by 6.9% to KZT30,972 million from KZT28,967 million in 2006. This increase was primarily due to the increase in net fees and commissions and financial assets transactions. Net commission fee increased by 31.4%, primarily due to the increased commission incomes. Thus, commission income on cash operations increased by 36.5%; on L/C and L/G businesses operations by 49.4%; on foreign exchange and securities operations by 56.2, and commissions on plastic cards and settlements by 60.6 and 48%, respectively. Fee and commission expenses grew by KZT1,041 from KZT1,672 million during 2006 to KZT2,713 million for 2007. Net gain on financial assets at fair value through profit and loss was KZT21,627 million for 2007 compared to KZT4,744 million for 2006. This significant shift in volume occurred due to the inclusion of the results from operations with foreign currency derivatives on the balance sheet. The operations were concluded with the aim of hedging foreign exchange risks. As a result, profit from these operations was KZT20,723 million for 2007, compared to KZT3,524 million for the last year. Excluding net gain on foreign exchange operations from the net gain on financial assets at fair value through profit and loss, gives net result from securities and precious metals operations, which was gain of KZT904 million compared to gain of KZT1,220 million in 2006. Net losses from foreign exchange operations for the twelve months ended Dec. 31, 2007 amounted to KZT18,605 million, compared to KZT5,204 million profit for the same period of 2006. Such changing in the item should include the results from operations with foreign currency derivative financial instruments which concluded to hedge currency risks on the balance sheet. Taking into consideration these amounts net profit from foreign exchange operations for the twelve months ended Dec. 31, 2007 amounted to KZT2,118 million compared to KZT8,728 million for the twelve months ended Dec. 31, 2006 as a result of foreign exchange operations. Provisions for Impairment Losses Provisions for impairment losses increased by KZT37,069 million (2.1 times) and made up KZT69,956 million for the twelve months ended Dec. 31, 2007 compared to KZT32,887 million for 2006. The growth of provisions for impairment losses is a result of a KZT754 billion increase in the gross loan portfolio. The effective reserve rate on customer loans was 5.6% for 2007 compared to the rate of 4.2% as at Dec. 31, 2006. The growth of the effective reserve rate was due to the growth in general provisions which amounted to 1.0% of the gross loan portfolio as of the end of 2007 compared to 0.5% in the end of 2006. The increase in general provisions for 1% was done in line with the Bank's conservative policy on provisioning as well as due to the slowed portfolio growth. Operating Expenses Operating expenses increased by 63.8% to KZT31,200 million, from KZT19,053 million in 2006, as a result of an increase in personnel expenses. This trend was driven by the increase in the number of employees and other expenses related to the retail network expansion, which is a key part of Kazkommertsbank's retail strategy. However, notwithstanding this growth in operating expenses, the ratio of the Bank's operating expenses to operating income before provisions for impairment losses decreased to 17.5% from 20.5% as at the end of 2006. This is a result of faster growth of operating income as compared to operating expanses. Loans to Customers The Bank's total gross loan portfolio grew by 43% to KZT2,506,698 million as of the end of 2007 from KZT1,752,776 million as at Dec. 31 2006. In 2007 loans to individuals, including consumer and mortgage lending, made up the largest share of the loan portfolio and increased from 15.6% as at Dec. 31, 2006 to 19.1% or KZT452,330 million as at Dec. 31, 2007. Loans to the trade sector increased to 42.3% and amounted to KZT442,181 million compared to KZT310,842 million as of the end of 2006. As a percentage their share increased from 18.5% to 18.7%. Loans to residential and commercial construction increased by 23.4%, while their share in total loans decreased to 20.1% as at Dec. 31, 2007 compared to 22.9% as at Dec. 31, 2006. As at Dec. 31, 2007, the Bank's 20 largest borrowers accounted for 25.3% of the total loan portfolio compared to 25% as at Dec. 31, 2006. Loans and Advances to Banks Loans and advances to banks, less allowance for impairment losses, increased by 7.9% to KZT212.8 billion as at Dec. 31, 2007, as compared to KZT197.2 billion as at Dec. 31, 2006. At the same time, loans and advances to banks as a percentage of total assets decreased to 7.1% as at Dec. 31, 2007 from 8.1% as at Dec. 31, 2006. Cash and Balances with National Bank Cash and balances with the National Bank of Kazakhstan, the National Bank of Kyrgyz Republic and the Central Bank of Russia decreased to KZT168 billion as at Dec. 31, 2007 compared to KZT209 billion as at Dec. 31, 2006. This reduction in the cash and balances was due to the amended regulatory requirements of the National Bank of Kazakhstan on the minimum reserve requirements. Securities Portfolio The size of the Bank's securities portfolio decreased by 41% to KZT192.2 billion at the end of 2007 from KZT325.6 billion at the end of 2006. The decrease was mainly in the Bank's trading portfolio, which decreased by 41.5% or KZT133.8 billion. This change was primarily attributable to the sale of international financial organizations securities for the amount of KZT130 billion and sale of the short-term notes of NBRK for the amount of KZT33.1 billion. Funding The Bank entirely meets its liabilities, thus, on Dec. 24, 2007, the first tranche of US$1 billion syndicated loan was repaid for the amount of US$700 million. This loan was signed in December 2006 and consisted of 2 tranches: Tranche A for the amount of US$700 million for 370 days and Tranche B for the amount of US$300 million for 3 years. Lead arrangers of the deal were The Bank of Tokyo-Mitsubishi UFJ, Ltd, ING Bank N. V., Standard Chartered Bank and UniCreditGroup. The purpose of the loan was funding of the import-export contracts of the customers. The Bank's debt securities increased to KZT739,688 million, representing 27.6% of the Bank's liabilities as at Dec. 31, 2007, up from KZT 424,162 million (19.5%) as at Dec. 31, 2006. In February 2006, the Bank issued EUR750 million 6.875% debt securities due February 2017 and GBP350 million 7.625% debt securities due February 2012 via Kazkommerts International B.V., under the MTN Program. In May and July 2007, the Bank issued US$250 million European commercial securities with zero coupon and JP 25 billion 2.212% via Kazkommerts International B.V., under the MTN Program. The commercial securities are due to May 2008 and July 2009, respectively. The amount of other borrowed funds increased 2.2 times due to issuance in April 2007 of US$500 million debt securities due 2017 under the Future Flows Securitization Program via Kazkommerts DPR Company. Merrill Lynch and WestLB AG acted as a Join Lead Arrangers and Bookrunners. At the same time, the other borrowed funds include the funds received from the Small Entrepreneurship Development Fund in the amount of KZT12,264 million. Customer accounts as of Dec. 31, 2007 increased by 30.1% as a result of 68.8% increase in term deposits. Term deposits amounted to KZT718,761 million. On the contrary, share of demand deposits decreased to 31.6% and amounted to KZT176,621 million. The shares of the term deposits and demand deposits in the customer accounts as at Dec. 31, 2007 comprised 80.3 and 19.7%, respectively, compared to 61.9 and 37.5% as at the year end 2006. The customer accounts included repos in amount of KZT201 million as at Dec. 31, 2007 compared to KZT4,384 million as at Dec. 31, 2006. Events Occurred After the Reporting Date: On Feb. 29, 2008, the Bank has repaid the outstanding US$450 million on its syndicated loan. The loan was agreed in August 2006 for a total of US$850 million for 18 months, and in August 2007 the Bank initiated a partial (US$400 million) prepayment of the loan. Citibank, N.A., Deutsche Bank AG, ING Bank and Mizuho Corporate Bank were the lead arrangers for the loan. Proceeds from the loan were used to finance the import-export transactions of Kazkommertsbank clients. About Kazkommertsbank Kazkommertsbank -- http://www.kazkommertsbank.com/-- accepts deposits and provides loans and credit facilities in Tenge and foreign currencies. The Bank is also a major participant in the securities market and the foreign currency market in Kazakhstan. Kazkommertsbank has subsidiaries in Kyrgyzstan and Russia, it is the majority shareholder in the Grantum pension fund, Kazkommerts-Policy and Kazkommerts-Life companies, as well as the Kazkommerts-Securities investment company. * * * As reported in the TCR-Europe on Dec. 20, 2007, Standard & Poor's Ratings Services had revised its outlook to negative from stable on Kazkommertsbank JSC. At the same time, Standard & Poor's lowered its long-term counterparty credit rating on KKB to 'BB' from 'BB+' and its Kazakhstan national scale rating on Temirbank to 'kzBBB' from 'kzBBB+' and on Eurasian Bank to 'kzBB' from 'kzBBB-'. All other ratings were affirmed. In November 2007, Fitch Ratings has affirmed the ratings of Kazakhstan-based bank Kazkommertsbank. KKB has been rated Long- term foreign currency Issuer Default 'BB+', Short-term foreign currency IDR 'B', Long-term local currency IDR 'BBB-', Short- term local currency IDR 'F3', Individual 'C/D', Support '3' and Support Rating Floor 'BB+'. The Outlook for the Long-term IDR remain Stable. MEG TECH: Claims Registration Ends April 18 ------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Meg Tech Service insolvent on Jan. 31, 2008. Creditors have until April 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Valihanov Str. 19-149 Petropavlovsk North Kazakhstan Kazakhstan NARGIZ & CO: Creditors Must File Claims by April 18 --------------------------------------------------- LLP Nargiz & Co. Ltd. has declared insolvency. Creditors have until April 18, 2008, to submit written proofs of claims to: LLP Nargiz & Co. Ltd. Dusebaev Str. Saryagash Saryagashsky South Kazakhstan Kazakhstan OTAU KURYLYZ: Claims Deadline Slated for April 18 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl has declared LLP Otau Kurylyz Invest insolvent on Jan. 29, 2008. 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) 45-32-17 PAVLODARPLAST LLP: Claims Filing Period Ends April 18 -------------------------------------------------------------- LLP Pavlodarplast has declared insolvency. Creditors have until April 18, 2008, to submit written proofs of claims to: LLP Pavlodarplast Kairbaev Str. 104-173 Pavlodar Kazakhstan TAT INVESTSTROY: Creditors' Claims Due on April 18 -------------------------------------------------- LLP Tat Investstroy has declared insolvency. Creditors have until April 18, 2008, to submit written proofs of claims to: LLP Tat Investstroy Micro District Aksai-1, 20-19 Almaty Kazakhstan TAUELSIZDIGINE-10 GYL: Claims Registration Ends April 18 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Kazakhstan Tauelsizdigine-10 Gyl insolvent on Dec. 24, 2007. Creditors have until April 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Kurmanov Str. 63 Kolbai Alakolsky Almaty Kazakhstan Tel: 8 701 482 68-18 8 728 374 11-28 =================== K Y R G Y Z S T A N =================== FLAMINGO LLC: Creditors' Meeting Slated for March 25 ---------------------------------------------------- Creditors of Flamingo LLC will convene at 10:00 a.m. on March 25, 2008 at: Flamingo LLC Micro District 6, 22/1 Bishkek Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared LLC Flamingo insolvent on Jan. 10, 2007. Subsequently, bankruptcy proceedings were introduced at the company. Mr. Rahatbek Duishembiev has been appointed temporary insolvency manager. Creditors must submit written proofs of claim and be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The temporary insolvency manager can be reached at (0-773) 75- 95-48, (0-555) 40-59-40. GRK ALA-TOO: Creditors' Meeting Slated for March 28 --------------------------------------------------- Creditors of OJSC GRK Ala-too will convene at 11:00 a.m. on March 28, 2008 at: OJSC GRK Ala-too Erkindik Ave. 1 Bishkek Kyrgyzstan The Inter-District Court of Bishkek for Economic Issues declared OJSC GRK Ala-too insolvent on Feb. 28, 2008. Subsequently, bankruptcy proceedings were introduced at the company. Mursaly Asanbekov has been appointed temporary insolvency manager. Creditors must submit written proofs of claim and be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The temporary insolvency manager can be reached at (+996 312) 62-67-90, 62-67-93, (0-772) 55-27-33. =================== L U X E M B O U R G =================== EVRAZ GROUP: Calls Off Yuzhkuzbassugol-Raspadskaya Merger Talks --------------------------------------------------------------- Evraz Group S.A. has decided to terminate merger negotiations between Yuzhkuzbassugol, its fully owned coal mining subsidiary, and Raspadskaya. Evraz believes that the proposed merger is not in the best interests of the Group’s shareholders at this time. Due to the favorable market conditions and recent developments at the Group, which include acquisition of selected production assets in Ukraine, the company concluded that further integrating Yuzhkuzbassugol with its steel operations and with Ukrainian coke production assets would yield more immediate value and long-term synergies than combining Yuzhkuzbassugol and Raspadskaya businesses. "Yuzhkuzbassugol and Raspadskaya will provide more value for our shareholders as separate businesses," said Alexander Frolov, Evraz's Chairman and CEO. "Yuzhkuzbassugol has already become an important part of our vertically integrated business model. We at Evraz are committed to grow both parts of Yuzhkuzbassugol businesses – metallurgical coal and steam coal mines, capitalising on the significant potential of the company’s existing mines, as well as the new deposits. It is equally important for us that Raspadskaya will remain Evraz’s strategic partner and a reliable supplier of coal to the Group’s mills in Russia." About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As reported in the TCR-Europe on Feb. 26, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit and senior unsecured debt ratings on Evraz Group S.A. and its core subsidiary Mastercroft Ltd., following Evraz's announcement of the planned acquisition of a majority stake in Singapore-listed steel producer Delong Holdings Ltd. At the same time, the Russia national scale rating on Evraz and Mastercroft was affirmed at 'ruAA'. The outlook is positive. In addition, Standard & Poor's assigned its 'BB-' long-term debt rating to a US$3.2 billion structured credit facility. Evraz is the borrower, guaranteed by Mastercroft. As reported in the TCR-Europe on Feb. 26, 2008, Fitch Ratings affirmed Evraz Group SA's Long-term Issuer Default and senior unsecured ratings at 'BB' and Short-term IDR at 'B'. The affirmation follows the company's announcement that it has agreed to purchase up to 51% of China-based, Singapore-listed steel producer, Delong Holdings Limited. At the same time, Fitch has affirmed the ratings of Mastercroft Limited (Evraz's core subsidiary with most of its assets concentrated in Russia) at Long-term IDR 'BB' and Short-term IDR 'B'. Evraz Securities SA's (ES) senior unsecured rating is affirmed at 'BB'. The Outlooks for Evraz's and Mastercroft Limited's Long-term IDRs are Stable. As of Nov. 20, 2007, Evraz Group carries Ba3 Corporate Family and Probability-of-Default ratings and B2 Senior Unsecured Debt rating from Moody's Investor Service. Moody's said the Outlook is Positive. EVRAZ GROUP: Gennady Kozovoy Quits as Yuzhkuzbassugol CEO --------------------------------------------------------- Evraz Group S.A. disclosed that Gennady Kozovoy has resigned as Yuzhkuzbassugol’s CEO. Andrey Borschevich became the new acting CEO of Yuzhkuzbassugol, effective March 20, 2008. Mr. Borschevich previously worked as Chief Production Officer at Yuzhkuzbassugol and has 25 years of experience in the coal industry. "We express our sincere gratitude to Gennady Kozovoy for his contributions to Yuzhkuzbassugol," aid Alexander Frolov, Evraz's Chairman and CEO. "In particular, we would like to thank Gennady for implementing strict occupational health and safety standards at our coal mines." About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As reported in the TCR-Europe on Feb. 26, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit and senior unsecured debt ratings on Evraz Group S.A. and its core subsidiary Mastercroft Ltd., following Evraz's announcement of the planned acquisition of a majority stake in Singapore-listed steel producer Delong Holdings Ltd. At the same time, the Russia national scale rating on Evraz and Mastercroft was affirmed at 'ruAA'. The outlook is positive. In addition, Standard & Poor's assigned its 'BB-' long-term debt rating to a US$3.2 billion structured credit facility. Evraz is the borrower, guaranteed by Mastercroft. =========== P O L A N D =========== AMERICAN AXLE: Work Stoppage Prompts S&P's Negative Watch --------------------------------------------------------- Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/--) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expect American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. The two sides resumed negotiations last week. "We believe the strike has gone on long enough to possibly begin to affect the financial resources of GM and those suppliers most exposed to the automaker," said Standard & Poor's credit analyst Robert Schulz. To resolve the CreditWatch listings, Standard & Poor's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. SCO GROUP: Bankruptcy Court Sets April 21 as Claims Bar Date ------------------------------------------------------------ The United States Bankruptcy Court for the District of Delaware established April 21, 2008, as deadline for creditors of The SCO Group Inc. and its debtor-affiliates to file proofs of claim. All entities, including governmental units, which assert any prepetition claims against the Debtors, must deliver proofs of claim with Epiq Bankruptcy Solutions, LLC, the claims, noticing and balloting agent of these Chapter 11 cases. Original proofs of claims must submitted no later than 4:00 p.m., Eastern Time, at: The SCO Group Inc. c/o Epiq Bankruptcy Solutions LLC FDR Station P.O. Box 5012 New York, NY 10150-5012 Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. The Debtors’ exclusive period to file a Chapter 11 plan expires on May 11, 2008. =========== R U S S I A =========== CAR ENTERPRISE: Creditors Must File Claims by May 1 --------------------------------------------------- Creditors of OJSC Car Enterprise have until May 1, 2008, to submit proofs of claim to: K. Savchenko Insolvency Manager Post User Box 35 Shebekino 309290 Belgorod Russia The Arbitration Court of Kursk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A35-4369/07g. The Court is located at: The Arbitration Court of Kursk K. Marksa Str. 25 305004 Kursk Russia The Debtor can be reached at: OJSC Car Enterprise Lenina Str. 176 Glushkovo Kursk Russia COMSTAR-UNITED: Nikolai Maximenka to Head MGTS Unit --------------------------------------------------- The extraordinary shareholder meeting of Moscow City Telephone Network OJSC, part of COMSTAR - United TeleSystems OJSC, has appointed Nikolai Maximenka as general director, replacing Alexei Goltsov. Nikolai Maximenka has been working as temporary general director since Feb. 4, 2008, at MGTS OJSC. "Moscow City Telephone Network development is one of the important strategy aspects for COMSTAR – United TeleSystems," Sergey Pridantsev, President of COMSTAR - United TeleSystems OJSC said. "The objectives of the newly appointed General Director Nikolay Maksimenka include measures to enhance company efficiency, strengthen the group's positions in the Moscow broadband access market, improve customer-related services, upgrade data network transport level and "last mile" segment on the basis of FTTx, with a number of other equally important projects to follow." About Comstar-UTS Headquartered in Moscow, Russia, Comstar-UTS JSC -- http://www.comstar-uts.com/en/-- is the largest provider of fixed line telecommunication services in the Moscow metropolitan area with a population of over 10 million, 5 regions of Russia, Ukraine and Armenia. As at Dec. 31, 2006, Comstar had US$1.12 billion in revenues and US$428.6 million in EBITDA (excluding US$62 million stock bonus awards). * * * As of Dec. 10, 2007, Comstar-United TeleSystems carries Moody's long-term corporate family rating of Ba3 with positive outlook. Standard & Poor's gave the company BB- on long-term foreign issuer credit rating and BB- on long-term local issuer credit rating. The outlook is positive. DAN CJSC: Creditors Must File Claims by April 1 ----------------------------------------------- Creditors of CJSC Dan have until April 1, 2008, to submit proofs of calim to: I. Borzov Insolvency Manager Post User Box 18 Central Post Office 153000 Ivanovo Russia The Arbitration Court of Ivanovo commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A17-133/08. The Court is located at: The Arbitration Court of Ivanovo B. Khmelnitskogo Str. 59B Ivanovo Russia The Debtor can be reached at: CJSC Dan F. Engelsa Pr. 74 Ivanovo Russia EVRAZ GROUP: Calls Off Yuzhkuzbassugol-Raspadskaya Merger Talks --------------------------------------------------------------- Evraz Group S.A. has decided to terminate merger negotiations between Yuzhkuzbassugol, its fully owned coal mining subsidiary, and Raspadskaya. Evraz believes that the proposed merger is not in the best interests of the Group’s shareholders at this time. Due to the favorable market conditions and recent developments at the Group, which include acquisition of selected production assets in Ukraine, the company concluded that further integrating Yuzhkuzbassugol with its steel operations and with Ukrainian coke production assets would yield more immediate value and long-term synergies than combining Yuzhkuzbassugol and Raspadskaya businesses. "Yuzhkuzbassugol and Raspadskaya will provide more value for our shareholders as separate businesses," said Alexander Frolov, Evraz's Chairman and CEO. "Yuzhkuzbassugol has already become an important part of our vertically integrated business model. We at Evraz are committed to grow both parts of Yuzhkuzbassugol businesses – metallurgical coal and steam coal mines, capitalising on the significant potential of the company’s existing mines, as well as the new deposits. It is equally important for us that Raspadskaya will remain Evraz’s strategic partner and a reliable supplier of coal to the Group’s mills in Russia." About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As reported in the TCR-Europe on Feb. 26, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit and senior unsecured debt ratings on Evraz Group S.A. and its core subsidiary Mastercroft Ltd., following Evraz's announcement of the planned acquisition of a majority stake in Singapore-listed steel producer Delong Holdings Ltd. At the same time, the Russia national scale rating on Evraz and Mastercroft was affirmed at 'ruAA'. The outlook is positive. In addition, Standard & Poor's assigned its 'BB-' long-term debt rating to a US$3.2 billion structured credit facility. Evraz is the borrower, guaranteed by Mastercroft. As reported in the TCR-Europe on Feb. 26, 2008, Fitch Ratings affirmed Evraz Group SA's Long-term Issuer Default and senior unsecured ratings at 'BB' and Short-term IDR at 'B'. The affirmation follows the company's announcement that it has agreed to purchase up to 51% of China-based, Singapore-listed steel producer, Delong Holdings Limited. At the same time, Fitch has affirmed the ratings of Mastercroft Limited (Evraz's core subsidiary with most of its assets concentrated in Russia) at Long-term IDR 'BB' and Short-term IDR 'B'. Evraz Securities SA's (ES) senior unsecured rating is affirmed at 'BB'. The Outlooks for Evraz's and Mastercroft Limited's Long-term IDRs are Stable. As of Nov. 20, 2007, Evraz Group carries Ba3 Corporate Family and Probability-of-Default ratings and B2 Senior Unsecured Debt rating from Moody's Investor Service. Moody's said the Outlook is Positive. EVRAZ GROUP: Gennady Kozovoy Quits as Yuzhkuzbassugol CEO --------------------------------------------------------- Evraz Group S.A. disclosed that Gennady Kozovoy has resigned as Yuzhkuzbassugol’s CEO. Andrey Borschevich became the new acting CEO of Yuzhkuzbassugol, effective March 20, 2008. Mr. Borschevich previously worked as Chief Production Officer at Yuzhkuzbassugol and has 25 years of experience in the coal industry. "We express our sincere gratitude to Gennady Kozovoy for his contributions to Yuzhkuzbassugol," aid Alexander Frolov, Evraz's Chairman and CEO. "In particular, we would like to thank Gennady for implementing strict occupational health and safety standards at our coal mines." About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As reported in the TCR-Europe on Feb. 26, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit and senior unsecured debt ratings on Evraz Group S.A. and its core subsidiary Mastercroft Ltd., following Evraz's announcement of the planned acquisition of a majority stake in Singapore-listed steel producer Delong Holdings Ltd. At the same time, the Russia national scale rating on Evraz and Mastercroft was affirmed at 'ruAA'. The outlook is positive. In addition, Standard & Poor's assigned its 'BB-' long-term debt rating to a US$3.2 billion structured credit facility. Evraz is the borrower, guaranteed by Mastercroft. FARM-GEO-COM: Court Names E. Shirova as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Moscow appointed E. Shirova as Insolvency Manager for LLC Farm-Geo-Com. She can be reached at: E. Shirova Post User Box 345 115230 Moscow 230 Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-24912/07. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: E. Shirova Post User Box 345 115230 Moscow 230 Russia GOLDEN TELECOM: Earns US$152.6 Million in 2007 ---------------------------------------------- Golden Telecom Inc., a unit of OJSC Vimpel-Communications, posted US$152.6 million in net income on US$1.29 billion in revenues for 2007, compared with US41.3 million in net income on US$854.6 million in revenues for 2006. The company attributed the increase to improved traffic. About Golden Telecom Headquartered in Moscow, Russia, Golden Telecom Inc. -- http://www.goldentelecom.com/-- provides integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. * * * As of Dec. 3, 2007, Golden Telecom carries a Ba3 Corporate Family, Probability-of-Default and Senior Unsecured Debt Ratings from Moody's Investors Service. Moody's said the outlook is stable. The company also carries a BB long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. GRAIN-PRODUCT: Creditors Must File Claims by May 1 --------------------------------------------------- Creditors of CJSC Grain-Product (TIN 7113016477) have until May 1, 2008, to submit proofs of claim to: N. Kazennova Insolvency Manager Moskovskaya Zastava 1 Efremov 301840 Tula Russia The Arbitration Court of Tula commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A68-1287/07-52B. The Court is located at: The Arbitration Court of Tula Hall 35 Sovetskaya Str. 112 Tula Russia The Debtor can be reached at: CJSC Grain-Product Moskovskaya Zastava 1 Efremov 301840 Tula Russia LEBEDYANSKY OJSC: Four Largest Shareholders Sell Stake to Pepsi --------------------------------------------------------------- OJSC Lebedyansky disclosed that its four largest individual shareholders have signed a conditional agreement with PepsiCo to sell their shares in Lebedyansky totalling 75.53% for a total cash consideration of US$1,357 million or US$88.02 per share. PepsiCo plans to assign its rights to buy the 75.53% stake to a joint venture between PepsiCo and PBG in which PepsiCo will retain a majority stake. PepsiCo/PBG’s offer values 100% of the Juice business at US$1,797 million on an Equity Value basis and US$2,012 million on an Enterprise Value basis, assuming net debt and separation adjustments of US$216 million as at Dec. 31, 2007. The agreement is conditional, amongst other things, on the separation of the Baby Food and Mineral Water business from the Juice business, and completion of the spin-off of the Baby Food and Mineral Water business to Lebedyansky’s existing shareholders (including the four selling shareholders). Therefore, upon acquisition by PepsiCo/PBG of the 75.53% stake, Lebedyansky will include the Juice business only. Certain matters essential for completion of the proposed spin-off of the Baby Food and Mineral Water business will be subject to approval by the shareholders of Lebedyansky at a General Meeting which will take place within 80 days after the Board of Directors meeting of Lebedyansky. The sale of the 75.53% stake is also subject to other customary conditions, including regulatory approvals. The proposed spin-off and acquisition of the 75.53% stake are expected to complete in Q3 of 2008. As part of the spin-off process, each shareholder in Lebedyansky, save for those who voted against the spin-off or did not participate in voting and requested to be redeemed by Lebedyansky, will receive new shares in the Baby Food and Mineral Water business pro rata to the stake in Lebedyansky held on the date as of which a list of shareholders having the right to participate in the General Meeting will be compiled. The Board of Directors of Lebedyansky will meet before March 28, 2008 to determine the General Meeting Record Date, which is expected to be March 28, 2008. Lebedyansky shares traded, settled and recorded in the Lebedyansky register, or the depository accounts if the Lebedyansky shares are held through nominees, after the General Meeting Record Date will not give the shareholders the right to receive shares in the Baby Food and Mineral Water business. Following the spin-off, shares in the Baby Food and Mineral Water business will not be quoted on any stock exchange. CPV Appointed to Prepare Valuation CPV (Center of Professional Valuations), a licensed appraiser under Russian law, was appointed by the company to prepare an independent valuation of the Baby Food and Mineral Water business post separation to determine its fair value. The independent valuation, prepared in accordance with applicable Russian legal requirements, took into account the standalone forecasts of the Baby Food and Mineral Water business after the separation from Lebedyansky. The independent valuation of the Baby Food and Mineral Water business is US$326 million on a debt and cash free basis. Net debt and separation adjustments are estimated at US$75 million as at Dec. 31, 2007. The four selling shareholders have indicated that they will remain committed to the future development of the Baby Food and Mineral Water business which, in their view, has attractive growth prospects. The Baby Food and Water business will have a new senior management team, which will be announced in due course. Yuri Bortsov is expected to become the Chairman of the Baby Food and Water business. Upon completion of the acquisition of the 75.53% stake, as required by Russian law, PepsiCo/PBG will make a mandatory offer to purchase the shares held by all remaining shareholders in Lebedyansky shortly after the transaction closes. Commenting on the announcement, Chairman of Lebedyansky Yuri Bortsov said: “We are pleased to have reached this agreement with PepsiCo/PBG, outstanding companies that bring a long heritage of investing in Russia and a clear commitment to the growth and success of Lebedyansky. They will bring significant investment and distribution strength and ensure that this company remains a strong, vibrant competitor.” Commenting on the announcement, CEO of PepsiCo International and Vice Chairman of PepsiCo, Michael White said: “This agreement provides us with a strong platform for continued expansion in one of the world’s fastest growing juice markets and advances the global transformation of PepsiCo/PBG’s product portfolio. Combining Lebedyansky's strengths with those of PepsiCo, one of the world's largest makers and sellers of branded juice, and PBG, our largest bottler, will create vast opportunities. We are committed to investing in Lebedyansky’s brands and building an even brighter future for this great Russian company.” Commenting on the announcement, President and CEO of The Pepsi Bottling Group, Eric Foss said: “Russia represents our biggest growth market, and we are making smart investments that further enhance our business there. Adding Lebedyansky’s strong brands and capable people to the powerful PBG-PepsiCo partnership will enable us to be at the forefront of the continued expansion of the Russian juice category.” Action to be taken by Lebedyansky shareholders Board of Directors of the company is due to meet before March 28, 2008 to adopt a resolution calling for a General Meeting of Lebedyansky shareholders to consider and vote on the proposed spin-off and other matters essential for completion of the spin-off. The General Meeting will take place within 80 days after the meeting of the Board of Directors. Shortly after the Board of Directors, Lebedyansky shareholders will receive a notice of the General Meeting, which will specify, among other things, the agenda of the General Meeting, the procedures for voting and conditions and terms of redemption of Lebedyansky shares adopted at the meeting of the Board of Directors. About Lebedyansky OJSC Lebedyansky -- http://lebedyansky.com/-- is the largest natural juice producer in Eastern Europe and one of Russian baby-food market leaders. The company has three production facilities: Lebedyansky production and storage complex (Lebedyan, Lipetsk region), Progress juices, concentrates and mineral water bottling plant (Lipetsk) and TROYA-Ultra juices plant (St. Petersburg). Lebedyansky produces Ya, Tonus, Fruktovy Sad juices and nectars, Frustyle refreshing juice drinks, Edo ice tea, juice Tusa Jusa, Lipetsky Buvet mineral and drinking water and a wide range of FrutoNyanya baby juices and purees. LEBEDYANSKY OJSC: Moody's Reviews Ratings on Pepsi Deal ------------------------------------------------------- Moody's Investors Service placed the Ba3 corporate family rating of OJSC Lebedyansky on review for possible upgrade. At the same time, Moody's Interfax Rating Agency, which is majority owned by Moody's, has placed the Aa3.ru national scale rating of the company on review for possible upgrade. The review was initiated by the announcement that PepsiCo (Aa2/STA) and The Pepsi Bottling Group (PBG, A2/STA), world leaders in snack foods and beverages, have agreed to jointly acquire a 75.53% stake in Lebedyansky held by its four largest shareholders, excluding the company's baby food and mineral water business, for approximately US$1.4 billion, which implies a total enterprise value of approximately US$2 billion. The purchase is to be split 75%/25% by PepsiCo and PBG. The transaction is conditional. Among other conditions, Lebedyansky is to spin-off its baby food and mineral operations, with PepsiCo and PBG to buy the above stake in Lebedyansky's key juice business. The spin-off and the acquisition of the stake are not expected to be completed before the third quarter of 2008. Shortly after the transaction closes, PepsiCo and PBG will make steps to increase its stake in the company up to 100% as required by Russian law. The review will focus on the terms of the transaction, the expected integration of Lebedyansky's operations into those of PepsiCo/PBG in Russia, the level of support to be expected from PepsiCo and PBG. The review is expected to be completed in conjunction with the closing of the transaction. Headquartered in Russia, Lebedyansky is Russia's leading juice business. The company also produces baby food products and mineral water. The company's reported 2007 preliminary consolidated revenues of US$944.8 million, with the juice business accounting for 85% of the revenues. LEBEDYANSKY OJSC: Revenue Ups 33% to US$944.8 Million in 2007 ------------------------------------------------------------- OJSC Lebedyansky reported its unaudited financial and operating results for the 12 months ended Dec. 31, 2007. Total sales volumes (including Troya-Ultra’s 87 million litres) reached 1,137 million litres, up 22% compared to last year. Total sales volumes excluding Troya-Ultra reached 1,050 million litres, up 14% compared to last year -- Juice volumes increased by 18% to 984 million litres including Troya-Ultra (and by 9% to 897 million litres excluding Troya-Ultra) -- Baby Food volumes increased by 21% to 71 million litres -- Mineral Water volumes increased by 102% to 82 million litres * Net revenues increased by 33% to US$944.8 million, including Troya-Ultra. Excluding Troya-Ultra, net revenues increased by 27% to US$892.5 million -- Juice net revenues increased by 30% to US$803 million including Troya-Ultra (and by 23% to US$750.7 million excluding Troya-Ultra) -- Baby Food net revenues increased by 42% to US$123.8 million -- Mineral Water net revenues increased by 147% to US$18 million * Group EBITDA increased by 12% year-on-year to US$155.6 million -- Juice EBITDA increased by 9% to US$118.3 million -- Baby Food and Mineral Water EBITDA increased by 3% to US$37.4 million * Net income before minority interest was down by 10% amounting to US$79.2 million * Capital expenditure for 2007 was US$103 million for Juice and US$28 million for Baby Food and Mineral Water As per Nielsen Company Retail Audit, Lebedyansky maintained its leading position in the juice market with a 30.8% volume share (including Troya-Ultra’s 2.6%) and 31.7% value share (including Troya-Ultra’s 1.9%). About Lebedyansky OJSC Lebedyansky -- http://lebedyansky.com/-- is the largest natural juice producer in Eastern Europe and one of Russian baby-food market leaders. The company has three production facilities: Lebedyansky production and storage complex (Lebedyan, Lipetsk region), Progress juices, concentrates and mineral water bottling plant (Lipetsk) and TROYA-Ultra juices plant (St. Petersburg). Lebedyansky produces Ya, Tonus, Fruktovy Sad juices and nectars, Frustyle refreshing juice drinks, Edo ice tea, juice Tusa Jusa, Lipetsky Buvet mineral and drinking water and a wide range of FrutoNyanya baby juices and purees. NISSAN CENTRE: Creditors Must File Claims by May 1 --------------------------------------------------- Creditors of LLC Nissan Centre have until May 1, 2008, to submit proofs of claim to: M. Nikolaev Insolvency Manager Post User Box 51 Lyzina Str. 28 664009 Irkutsk Russia The Arbitration Court of Irkutsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A19-11673/07-29-63. The Court is located at: The Arbitration Court of Irkutsk Room 303 Gagarina Avenue 70 664025 Irkutsk Russia The Debtor can be reached at: LLC Nissan Centre Kommunarov Str. 10-312 664003 Irkutsk Russia NOVOSIBIRSK CITY: Low Debt Prompts S&P to Upgrade Ratings --------------------------------------------------------- Standard & Poor's Ratings Services raised the long-term issuer credit rating on the City of Novosibirsk to 'BB-' from 'B+'. The outlook is stable. At the same time, the Russia national scale rating was raised to 'ruAA-' from 'ruA+'. Novosibirsk is the third-largest city in The Russian Federation (foreign currency BBB+/Positive/A-2; local currency A-/Positive/A-2; Russia national scale rating 'ruAAA'). "The upgrade reflect the city's growing revenues, improved budgetary performance, and reduced debt," said Standard & Poor's credit analyst Irina Pilman. The ratings are constrained by low financial flexibility and predictability, pressures on performance from growing expenditures, and the need to develop a reliable medium-term investment program. These constraints are mitigated by Novosibirsk's growing, diversifying, and services-oriented economy; solid budgetary performance, underpinned by increasing revenues; low debt; and prudent debt management. Novosibirsk's debt level stood at a low 8.3% of operating revenues at Dec. 31, 2007. The debt burden should remain moderate in the international context, with debt service to operating revenues at 10% on average in 2008–2010. "We expect the city to meet current forecasts for operating surpluses of about 6%-7% of operating revenues, as well as accumulate debt gradually and maintain a moderate debt burden (less than 25% of operating revenues until 2010)," said Ms. Pilman. S&P also expects that medium-term investment planning will improve, and be further incorporated into the three-year budgeting process. Ratings upside is possible if the city manages to achieve higher-than-forecast operating balances and adopts a multiyear, reliable investment program. The aim should be to implement a program and, at the same time, keep the debt burden moderate. The ratings could come under pressure should the operating performance repeatedly fall below the improved 2005-2006 levels, thereby forcing the city to accumulate short-term debt. RUMBA S.A.: S&P Puts BB Rating on RUR682 Million Class B Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned preliminary credit rating to the RUR6,817 million mortgage-backed ruble- denominated, fixed-rate notes to be issued by RUMBA S.A. The mortgage certificates that form the underlying collateral pool are fixed-rate, ruble-denominated loans, which are secured by a first lien over residential properties in Russia. All loans were originated by KIT Finance Investment bank. This is the first securitization of mortgage receivables by KIT Interest on the notes will be payable monthly in arrears on the 25th day of each month, while principal will be paid sequentially on a pass-through basis, with a potential future switch to pro rata payment (subject to performance triggers). The structure also includes a cash reserve fund of 2.25%, a commingling reserve fund of 4.25%, and overcollateralization of 6.5% of the initial principal balance of the mortgage loans, excluding overcollateralization assets (all funded from the proceeds of a subordinated loan advanced to the issuer). Ratings List RUMBA S.A. RUR6,817 Million Fixed-Rate Notes Class Prelim. Rating Prelim. amount ----- -------------- -------------- A BBB+ RUR6,135,000,000 B BB RUR682,000,000 SPAS-DEMENSKIY LES-KHOZ-ZAG: Creditors Must File Claims by May 1 ---------------------------------------------------------------- Creditors of CJSC Spasdemenskiy Les-Khoz-Zag have until May 1, 2008, to submit proofs of claim to: S. Timonin Insolvency Manager Room 5 Generala Popova Str. 4 248033 Kaluga Russia The Arbitration Court of Kaluga commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A23-3407/07B-8-163. The Court is located at: The Arbitration Court of Kaluga Staryj Torg Square 4 Kaluga Russia The Debtor can be reached at: CJSC Spasdemenskiy Les-Khoz-Zag Sovetskaya Str. 97 Spask-Demensk Spas-Demenskiy Kaluga Russia UREN’-SEL’-KHOZ-TEKHNIKA: Creditors Must File Claims by May 1 ------------------------------------------------------------- Creditors of OJSC Uren’-Sel’-Khoz-Tekhnika (TIN 5235001876) have until May 1, 2008, to submit proofs of claim to: A. Tigulev Insolvency Manager Beketova Str. 38a 603146 Nizhniy Novgorod Russia Tel: 831-412-21-62 The Arbitration Court of Nizhniy Novgorod commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A43-24736/2007 27-279. The Court is located at: The Arbitration Court of Nizhniy Novgorod Kremlin 9 603082 Nizhniy Novgorod Russia The Debtor can be reached at: OJSC Uren’-Sel’-Khoz-Tekhnika Mekhanizatorov Str. 35 Uren’ Russia VARIANT-Z LLC: Court Names A. Kharkov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Volgograd appointed A. Kharkov as Insolvency Manager for LLC Variant-Z. He can be reached at: A. Kharkov Post User Box 1032 400105 Volgograd Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A12-6689/2007-s64. The Debtor can be reached at: LLC Variant-Z Komissara Markina Str. 3 Volgograd Russia ========= S P A I N ========= GECINA SA: Spain Okays Sanahuja’s Buy of Metrovacesa Shares ----------------------------------------------------------- Spanish stock regulators gave its approval on March 12, 2008, for the Sanahuja family to acquire shares in Metrovacesa that it doesn’t own, Reuters reports. With the approval, the company is now one step closer into being broken up in different French and Spanish operations. The Sanahuja family offered to purchase 13.37% of the company at EUR83.21 per share. The company, according to Reuters, now only needs the approval of regulators from France. Once French regulators approve the transfer of shares from Gecine to Metrovacesa, Gecine will now be run by the family of Juan Bautista Soler, as well as, Chairman Joaquin Rivero, Reuters adds. Regulators from France, Reuters discloses, had taken the case to courts alleging that both Rivero and Soler had worked in collusion to increase their investment in Gecina. Headquartered in Paris, France, Gecina SA -- http://www.gecina.fr/-- (Paris:GFC) is a real estate investment trust primarily engaged in the rental of commercial and residential buildings. The company is structured in three business divisions, including Strategic Development, Commercial real estate and Residential real estate. Through its divisions, Gecina SA manages and develops a portfolio of assets, comprising of offices, residential buildings, healthcare facilities, logistic estate and hotels. The majority of the company's properties are located in Paris and the Parisian suburbs, with a small percentage located in Lyon and other areas. GECINA SA: Metrovacesa Separation Deal Cues S&P to Lower Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long- and short- term corporate credit ratings on French property company Gecina to 'BB+/B' from 'BBB-/A-3'. At the same time, the ratings were removed from CreditWatch with negative implications, where they had originally been placed on July 28, 2006. The outlook is negative. The ratings on the unsecured debt remain unchanged at 'BBB-' and remain on CreditWatch with negative implications until S&P assigns a recovery rating and a final rating. Given the unsecured nature of the instruments and related French jurisdiction, the issue ratings could either be one notch higher than or in line with the corporate credit rating. "The downgrade reflects ongoing uncertainties surrounding Gecina's separation agreement with Metrovacesa S.A.," said Standard & Poor's credit analyst Pierre Georges. These include key unknowns such as Gecina's future shareholding structure and any ultimate repercussions on its risk profile. The separation is also taking longer than expected. These factors, combined with the current challenging financial market conditions, translate into reduced or more expensive access to capital sources, which in turn may negatively affect Gecina's credit metrics and financial flexibility. "The negative outlook reflects further possible ratings pressure if there is any deterioration in the group's liquidity position, and/or any negative business or financial implications from the outcome of the ongoing separation process and of the appeal against the regulator's decision," said Mr. Georges. S&P could lower the ratings if a full takeover bid is launched; if financing risks increase further; or in the case of a large acquisition. When and if Gecina's shareholding structure finally stabilizes and financial flexibility improves, S&P could revise the outlook back to stable. ===================== S W I T Z E R L A N D ===================== BFZ HOLDING: Creditors' Liquidation Claims Due by March 26 ---------------------------------------------------------- Creditors of JSC BFZ Holding have until March 26, 2008, to submit their claims to: LLC Akey Liquidator Muhleaulistrasse 6 9471 Buchs Werdenberg SG Switzerland The Debtor can be reached at: JSC BFZ Holding Sennwald Werdenberg SG Switzerland ERNST WUTSCHERT: Creditors' Liquidation Claims Due by March 27 -------------------------------------------------------------- Creditors of LLC Ernst Wutschert Transporte have until March 27, 2008, to submit their claims to: Ernst Wutschert Liquidator Unterdorfstrasse 50 5612 Villmergen Bremgarten AG Switzerland The Debtor can be reached at: LLC Ernst Wutschert Transporte Villmergen Bremgarten AG Switzerland FULANO JSC: Creditors' Liquidation Claims Due by March 27 --------------------------------------------------------- Creditors of JSC Fulano have until March 27, 2008, to submit their claims to: JSC Altorfer Duss & Beilstein Seefeldstrasse 40 8034 Zurich Switzerland The Debtor can be reached at: JSC Fulano Zurich Switzerland GARTEC LLC: Creditors' Liquidation Claims Due by March 27 --------------------------------------------------------- Creditors of LLC Gartec have until March 27, 2008, to submit their claims to: LLC Gartec Ipsachstrasse 10 2560 Nidau BE Switzerland HAGRA HANDEL: Creditors' Liquidation Claims Due by March 26 ----------------------------------------------------------- Creditors of LLC Hagra Handel und Grafik have until March 26, 2008, to submit their claims to: François Jaquet Liquidator Beckenmoosstrasse 11 5330 Bad Zurzach AG Switzerland The Debtor can be reached at: LLC Hagra Handel und Grafik Bad Zurzach AG Switzerland KASEREI VOGELSANG: Creditors' Liquidation Claims Due by March 26 ---------------------------------------------------------------- Creditors of LLC Kaserei Vogelsang have until March 26, 2008, to submit their claims to: Paul Oberhansli Liquidator Buchfinkenstrasse 12 Vogelsang 8374 Dussnang TG Switzerland The Debtor can be reached at: LLC Kaserei Vogelsang Fischingen Munchwilen TG Switzerland QUALITRADE LLC: Creditors' Liquidation Claims Due by March 28 ------------------------------------------------------------- Creditors of LLC Qualitrade have until March 28, 2008, to submit their claims to: Dr. Hans Widmer Berghaldenstrasse 20 8330 Pfaffikon ZH Switzerland The Debtor can be reached at: LLC Qualitrade Baar ZG Switzerland SMARTSTEP LLC: Creditors' Liquidation Claims Due by March 27 ------------------------------------------------------------ Creditors of LLC smartstep have until March 27, 2008, to submit their claims to: Andreas Akeret Marktgasse 13 8400 Winterthur ZH Switzerland The Debtor can be reached at: LLC smartstep Winterthur ZH Switzerland TANKSTELLE ALPENBLICK: Creditors' Must File Claims by March 27 -------------------------------------------------------------- Creditors of LLC Tankstelle Alpenblick have until March 27, 2008, to submit their claims to: Dora Fischer-Gut Liquidator Weihermatt 6 8913 Ottenbach Affoltern ZH Switzerland The Debtor can be reached at: LLC Tankstelle Alpenblick Cham ZG Switzerland TRENTON JSC: Creditors' Liquidation Claims Due by March 26 ---------------------------------------------------------- Creditors of JSC Trenton have until March 26, 2008, to submit their claims to: Dr. Andreas Renggli Baarerstrasse 8 6300 Zug Switzerland The Debtor can be reached at: JSC Trenton Zug Switzerland =========== T U R K E Y =========== GLOBAL YATIRIM: Offers US$1.61 Billion for Baskent Natural ---------------------------------------------------------- Global Yatirim Holding A.S., through its natural gas distribution subsidiary, submitted the highest bid of US$1.61 billion at the tender for Baskent Natural Gas Distribution. The tender was held by the Municipality of Ankara on March 14, 2008, in the form of a block sale of 100% of the shares of the distribution company, owned by the Municipality. The company will hold the gas distribution license in Ankara region for the next 30 years, with a possible renewal period for another 30 years. The completion of the tender and awarding is subject to the approval of the Municipality, High Competition Board and EPDK (Energy Market Regulatory Authority). With Baskent Natural Gas added to its portfolio, Energaz will be distributing natural gas in 13 cities in Turkey and by 2012 delivering 7.5 bcm gas per annum to more than 2.75 million subscribers. Energaz will then be controlling 18-20% of the Turkish Natural Gas Distribution market and generating an aggregated EBITDA of approximately $230 million. About Baskent Natural Gas Ankara’s natural gas market has approximately 1.1 million subscribers with current annual consumption of 3.1 bcm, and is expected to exceed 7.0 billion by 2023. The sales margin on gas sales is fixed at US$55 per mcm for residential subscribers and US$7.7 per mcm for independent consumers for the next 10 years. The Gas Distribution Network will require annual expansion capex of $15-20 million during the initial 10 year period. About Global Yatirim Headquartered in Istanbul, Turkey, Global Yatirim Holding A.S. (IST:GLYHO) -- http://www.globalyatirim.com/-- formerly Global Menkul Degerler A.S., is an investment holding company that participates in the shareholding structure of its subsidiaries, while providing management, finance and organizational services. Five principal business units are established under Global Yatirim Holding A.S. to conduct the company's activities in these sectors: the infrastructure unit includes cruise and commercial port operations; the real estate unit involves real estate investment trust activities, including project development, management and construction of buildings, plaza centers and holiday villages; the natural gas distribution concessions and other potential energy assets are structured under the energy unit; the mining unit includes exploration of metals and minerals, and the finance unit offers services such as securities, brokerage, intermediation, asset management and life and health insurance. The company operates both for domestic and international clients. GLOBAL YATIRIM: Baskent Bid Prompts Fitch's Negative Watch ---------------------------------------------------------- Fitch Ratings placed Turkey's Global Yatirim Holding A.S.'s Long-term foreign and local currency Issuer Default ratings of 'B' on Rating Watch Negative (RWN) following the company's US$1.61bn bid, through its Energaz subsidiary, for Baskent (Ankara) Natural Gas Distribution Inc. The RWN is based on Fitch's concerns about the financial impact of Global's bid for another large-scale project following the company's involvement with the privatisation of Izmir Port in May 2007. Fitch is also concerned with the company's entrepreneurial/private equity approach to operating infrastructure assets, as evidenced by the volatility in its FY06-07 earnings profile stemming from the financial arm, which raises questions about the stability of future cash flows. The cash outflow related to the Izmir port and Baskent bids may lead to further deterioration in the short-term liquidity profile hampering the company's financial flexibility. Fitch considers the execution risks associated with these two bids to be substantial at this stage. Fitch has also placed the senior unsecured rating of 'B' and Recovery Rating of 'RR4' of Global's US$100m 9.25% loan participation notes maturing in 2012 on RWN. A consortium including Energaz submitted the highest bid of US$1.61bn on 14 March in the tender for Baskent. Energaz is owned by Energy Investment Holding (EIH) (53%), Okyanus (29.5%) and Tefirom (17.5%). Global has a 50.1% stake in EIH. Baskent, the natural gas distribution operator for Ankara, which is expected to generate turnover of US$970m and EBITDA of US$168.5mn in 2008 with a total consumption of 3.4bn cubic metres. Fitch understands that the tender results have to be approved by Turkey's Competition Authority and Energy Market Regulatory Authority (EMRA) before the transfer of operating rights can take place. The potential for Global to introduce significant leverage as a result of the Baskent transaction will be an important consideration in the group's rating. At this stage, Global/Energaz is yet to formally announce a detailed funding strategy for this venture, which is expected to be financed by a mix of debt and equity. Global's ratings also take into account the planned expansion into power generation along with related high capital expenditure requirements and construction risks. The funding structures and eventual monetary impact of such expenditures on group results remain to be seen in the 2008-10 period. Fitch aims to resolve the RWN following a review of the acquisition debt structure and closure of the transaction, which may take six-to-twelve months. GLOBAL YATIRIM: New Board Members Appointed at Annual Meeting ------------------------------------------------------------- Global Yatirim Holding A.S. disclosed in its wedsite that its Annual Shareholders’ Meeting for the year 2007 was held at the Hyatt Regency Istanbul Hotel on March 13, 2008. At the shareholders meeting, it was resolved to appoint: -- Mehmet Kutman, -- Erol Goker, -- Aysegul Bensel, -- Gregory Michael Kiez, -- Trevor Trefgarne, -- Landon Thomas and -- Timothy Skerman, as new board members until the next ordinary shareholders meeting where the transactions and accounts of the year 2008 will be discussed. Sahin Ucar was also appointed as as new statutory auditor. It was also resolved to approve: -- to deduct “Losses from Previous Years”, which are arising from the amendments to the financial statements as to the inflation firstly as of 31st of December, 2003, from the capital equity items in respect of the Capital Markets Board of Turkey legislations; -- not to distribute the disposable profit of 2007 as it was not able to be distributed for the reason that it was lower than the previous year losses after deduction; -- to charge Akis Bag?ms?z Denetim ve Serbest Muhasebecilik Mali Musavirlik A.S. (member firm of KPMG International) as independent auditor firm for the year 2008; and -- to amend Article 6 of the Articles of Association of the Company in order to raise the Company’s registered capital ceiling from YTL 225,000,000 to YTL 650,000,000 upon Capital Markets Board of Turkey’s approval dated February 13, 2008. About Global Yatirim Headquartered in Istanbul, Turkey, Global Yatirim Holding A.S. (IST:GLYHO) -- http://www.globalyatirim.com/-- formerly Global Menkul Degerler A.S., is an investment holding company that participates in the shareholding structure of its subsidiaries, while providing management, finance and organizational services. Five principal business units are established under Global Yatirim Holding A.S. to conduct the company's activities in these sectors: the infrastructure unit includes cruise and commercial port operations; the real estate unit involves real estate investment trust activities, including project development, management and construction of buildings, plaza centers and holiday villages; the natural gas distribution concessions and other potential energy assets are structured under the energy unit; the mining unit includes exploration of metals and minerals, and the finance unit offers services such as securities, brokerage, intermediation, asset management and life and health insurance. The company operates both for domestic and international clients. =========================== U N I T E D K I N G D O M =========================== ADP PAINTS: Taps Joint Administrators from Begbies Traynor ---------------------------------------------------------- G.N. Lee and P. Stanley of Begbies Traynor were appointed joint administrators of ADP Paings and Powders Ltd. (Company Number 04596011) on March 13, 2008. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: ADP Paints and Powders Ltd. 1-2 Appian Way Salford M7 4WZ England Tel: 01617921034 ADVANCE RECRUITMENT: Appoints Joint Administrators from Tenon ------------------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint administrators of Advance Recruitment (N.E.) Ltd. (Company Number 03641052) on March 10, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Advance Recruitment (N.E.) Ltd. 16 The Upper Chare Peterlee County Durham SR8 1BW England Tel: 0191 586 1444 Fax: 0191 586 1666 Web site: http://www.advancerecruitmentne.co.uk/ AIRBABES LTD: Appoints Martin Dominic Pickard as Liquidator ----------------------------------------------------------- Martin Dominic Pickard of Mazars LLP was appointed liquidator of Airbabes Ltd. on March 12 for the creditors' voluntary winding- up procedure. The liquidator can be reached at: Mazars LLP Sovereign Court Witan Gate Milton Keynes MK9 2HP England BEECHER LOAN: Fitch Withdraws Ratings on Class A and B Loans ------------------------------------------------------------ Fitch Ratings withdraws its ratings on Beecher Loan Fund effective immediately as: -- US$66,800,000 class A 'C'; -- US$44,000,000 class B 'C/DR6'. The withdrawals are due to the completion of a restructuring and wind-up of the existing total rate of return collateralized loan obligation transaction into a new cash flow CLO. While precise terms of the debt exchange are not available, it is Fitch's understanding that the debt holders in Beecher received equity in the new cash flow CLO. BRITISH AIRWAYS: Increases Stake in Iberia Lineas to 13.15% ----------------------------------------------------------- British Airways plc has bought 28,745,767 shares of the Spanish airline Iberia Lineas SA at an average price of EUR2.34 per share, taking its holding to 13.15%. "This purchase reflects the strategic importance we attach to our relationship with Iberia and our continued confidence in its management. We will consider further opportunities to increase our stake," Willie Walsh, chief executive of British Airways, said. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As of Jan. 2, 2008, British Airways Plc carries a senior unsecured debt rating of Ba1 from Moody's Investors' Service with a stable outlook. CAPITAL PARK: Brings In Liquidator from Vantis ---------------------------------------------- Julie Anne Kinnison and Colin Ian Vickers of Vantis were appointed joint liquidators of Capital Park Developments Ltd. on March 12 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Vantis Fourth Floor Southfield House 11 Liverpool Gardens Worthing West Sussex BN11 1RY England DECO 11: S&P Puts Class F Notes' BB Rating Under Negative Watch --------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch with negative implications its 'BB' rating on the class F notes issued by Deco 11 - UK Conduit 3 PLC. The ratings on the other classes in the transaction are unaffected. This CreditWatch placement follows deterioration in the performance of the GBP5.91 million Paladru Services Corporation Loan which represents 1.38% of the outstanding pool balance. This loan is currently secured by a shopping arcade located in Paignton, Devon, U.K. During the first year of the loan, there was a rental guarantee in place, which covered 14.6% of the gross rental income of the property. In July 2007, this guarantee expired. The management company has been unable to re-let enough of the vacant space necessary to maintain the income levels that are required to sustain the interest-coverage-ratio covenant. In October 2007, the borrower put in place a cash reserve of GBP0.34 million to top up the ICR for the next three to four years of the life of the loan. However, income levels have continued to decline and the reserve amount is no longer sustainable for the agreed period. S&P has increased uncertainty around the potential of the loan— which S&P considered one of the weaker loans in the pool—to perform strongly in future and to successfully realize full proceeds at or before loan maturity. Deco 11- UK Conduit 3 closed on Dec. 20, 2006 and was originated by Deutsche Bank AG. The notes were backed by 17 loans secured by 56 office, retail, residential, leisure, and industrial properties in the U.K. The expected loan maturity date falls in January 2017, and the final legal maturity date of the issued notes is in January 2020. To date, the original balance of £444.39 million has amortized by 4.16% to GBP425.90 million. Two loans have redeemed, reducing the collateral of the pool to 15 loans secured on 53 properties. DEPOT PROPERTIES: Joint Liquidators Take Over Operations -------------------------------------------------------- Julie Anne Kinnison and Colin Ian Vickers of Vantis were appointed joint liquidators of Depot Properties Ltd. (formerly Catteshall Mill Developments Ltd. and Focusamber Ltd.) on March 12 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Vantis Fourth Floor Southfield House 11 Liverpool Gardens Worthing West Sussex BN11 1RY England DORSET PREMIER: Brings In Administrators from Tenon --------------------------------------------------- Nigel Ian Fox and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint administrators of Dorset Premier Laundry Ltd. (Company Number 4526023) on March 12, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Dorset Premier Laundry Ltd. 158 Richmond Park Road Bournemouth Dorset BH8 8TW England Tel: 01202311594 DURA AUTOMOTIVE: Files Amended First Revised Chapter 11 Plan ------------------------------------------------------------ DURA Automotive Systems, Inc., and its debtor affiliates filed an amended First Revised Joint Plan of Reorganization and Disclosure Statement explaining the Plan on March 13, 2008. The Hon. Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware will convene a hearing on April 3, 2008, to determine whether the Disclosure Statement contains adequate information. Disclosure Statement Objections must be filed on or before March 28. The Debtors will begin soliciting votes on the Revised Plan upon approval of the Disclosure Statement. According to Lawrence A. Denton, DURA's chairman, president and chief executive officer, despite the Debtors' progress -- with the overwhelming support of their creditor constituencies -- to the very cusp of confirmation, they were unable to proceed further with the Original Plan, filed Aug. 22, 2007, because they could not obtain the sufficient exit financing on acceptable terms in view of tightening credit markets and a deteriorating outlook in the North American automotive sector. The Original Plan had contemplated payment in cash, in full, of all Class 2 - Second Lien Facility Claims, a backstopped rights offering open to certain Class 3 Claims and certain Class 5 claims, and an equity or cash distribution equal to approximately 55% for the Class 3 Claims and 22% for the Class 5 Claims. However, without the level of exit financing envisioned by the Original Plan, these recoveries are no longer realistic. The Debtors and their creditor constituencies, therefore, devised the Revised Plan based upon equitizing claims in Classes 2, 3 and 5. Exit Financing The Revised Plan contemplates that on or before the Effective Date, the Reorganized Debtors will enter into definitive documentation with respect to: (a) an exit credit facility comprised of: -- a US$150,000,000, first lien term loan, and -- a US$110,000,000, revolving credit facility, which includes a US$25,000,000, letter of credit sub facility; and (b) a New Money Second Lien Loan with certain existing creditors that will provide a second lien secured term loan with a new capital infusion of US$80,000,000, and a face amount of US$100,000,000. US$440-Mil. to $550-Mil. Reorganization Value DURA, with the help of its financial advisor, Miller Buckfire & Co., LLC, prepared a valuation of the company's going concern value post-confirmation. Miller Buckfire estimates that the total enterprise value of the Reorganized Debtors will be between US$440,000,000, and US$550,000,000, with a mid-point of US$495,000,000, as of an assumed May 31, 2008 Effective Date. In August 2007, Miller Buckfire estimated that the total enterprise value of the Reorganized Debtors is between US$540,000,000 and US$660,000,000, with a US$600,000,000 mid- point, as of an assumed Effective Date of November 1, 2007. Miller Buckfire also estimates that the range of total equity is between US$257,000,000 and US$367,000,000, with a mid-point of US$312,000,000. To calculate the estimated value of common equity, Mr. Denton relates that Miller Buckfire deducted Convertible Preferred Stock at its liquidation preference as of the Effective Date of US$228,000,000, from total equity value. Miller Buckfire estimates the range of common equity value to be between US$29,000,000 and US$319,000,000, with a mid-point of US$84,000,000. Pension Plans The Reorganized Debtors will continue to sponsor and maintain pension plans unless terminated before the entry of the Confirmation Order. All Compensation and Benefits Programs will be treated as executory contracts and deemed assumed on the Effective Date, except for, among others, Compensation and Benefits Programs specifically rejected pursuant to the Plan and all employee equity or equity based incentive plans. Mr. Denton relates that each of the Debtors is either a sponsor or a controlled group member of a sponsor of four pension plans covered by the Employee Retirement Income Security Act: Pension Plan EIN-PN ------------ ------ DURA Master Pension Plan 382961431/001 DURA Automotive Systems, Inc. 382961431/004 Mancelona Union-Represented Employees' Pension Plan Atwood Mobile Products, Inc. 364334203/005 Supplementary Retirement Plan DURA Retirement Plan for 364334203/024 La Grange Bargaining Employees Mr. Denton says the Pension Benefit Guaranty Corporation has the authority to initiate termination proceedings, subject to certain statutory rights, regarding the Pension Plans. If the Pension Plans were to terminate before the date of Plan confirmation, certain claims, including claims that may be entitled to priority under various Bankruptcy Code provisions, would arise. In the event that the Pension Plans do not terminate before the Confirmation Date, all claims of, or with respect to, the Pension Plans, including the PBGC's claims for unfunded benefit liabilities, for termination premiums, and for unpaid contributions owing to the Pension Plans, will become obligations of the Reorganized Debtors and each member of any controlled group, and will be unaffected by the confirmation of the Plan. There will be no discharge in favor of any Reorganized Debtors with respect to any fiduciary Claims under ERISA, any Pension Plan-related Claims, and any PBGC Claims. Special Transaction Committee The Revised Plan provides that a Special Transactions Committee will be created to initiate a redemption of Convertible Preferred Stock at any time, provided that the post-transaction cost of funds meets certain customary parameters for refinancing indebtedness typically found in an indenture. Any redemption using funds from debt senior to the Convertible Preferred Stock if the size of the proposed redemption is less than US$112,500,000, must be approved by the entire Board of Directors. Canadian Creditor Distribution The Revised Plan also provides that cash will be distributed pro rata to holders of Allowed Canadian General Unsecured Claims equal to the higher of (a) the median value of Dura Automotive Systems (Canada), Ltd.'s assets in a liquidation; or (b) the median value of the Dura Canada's assets in a liquidation. Allowed Canadian General Unsecured Claims are claims filed against Dura Canada. Mr. Denton says no claims, other than intercompany claims, are pending against the other Dura affiliates in reorganization under the Canadian Companies' Creditors Arrangement Act. Proposed Confirmation Timeline DURA asks the Court to set this time line for the solicitation of votes and confirmation of its Plan: April 10, 2008 -- Commencement of solicitation on the Plan May 2, 2008 -- Confirmation Objection Deadline May 7, 2008 -- Voting Deadline May 13, 2008 -- Confirmation Hearing Mr. Denton asserts that a "fast-paced confirmation time line" is needed to accommodate the terms of the US$170,000,000 Replacement Facility extended by Ableco Finance LLC. The Replacement Financing provides that DURA has to have the revised Disclosure Statement approved by May 15 and the Plan confirmed by June 9. The Replacement Financing gives DURA until June 20 to exit from Chapter 11. The Replacement Financing will mature on June 30. A full-text copy of a blacklined version of the Plan is available for free at: http://bankrupt.com/misc/DURAblacklinedPlan.pdf A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/DURA_AmendedDiscStatement.pdf About DURA Rochester Hills, Michigan-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DURA AUTO: Claims Treatment & Classification of Revised Plan ------------------------------------------------------------ The First Revised Joint Plan of Reorganization of Dura Automotive Systems Inc. and its debtor-affiliates contemplate this classification and treatment of claims: Projected Recovery Projected Treatment of -------------------- Allowed Claim Under Revised Original Class Claim Amt. Revised Plan Plan Plan ----- ---------- ------------ --------- -------- DIP - Paid in full 100% 100% Facility in cash. Claims Admin. US$28.5MM Paid in full in 100% 100% Claims cash unless otherwise specified by agreement. Priority Tax US$5.2MM Paid in full 100% 100% Claims in cash. Other Priority US$0 Paid in full 100% 100% Claims in cash. Class 1 - US$0.8MM Holder of Allowed 100% 100% Other Secured Other Secured Claim Claims will receive either: * the collateral securing the Claim; * the cash equivalent of the collateral; * the treatment that leaves the Claim reinstated or unimpaired. Class 2 - US$228.1MM Holder of Allowed 100% 100% Second Lien Second Lien Facility Facility Claims Claim will receive its pro rata share of the Second Lien Distribution. Class 3 - US$418.7MM Holder of Allowed 19% 55% Senior Notes Senior Notes Claims Claims will receive its pro rata share of the Senior Notes Distribution. Class 4 - US$560.7MM Holders of Subordinated 0% 0% Subordinated Notes Claims will neither Notes Claims receive nor retain any property under the Revised Plan pursuant to contractual subordination provisions contained in the Subordinated Notes Indenture. Class 5A - US$60MM Holders will receive 8% 22% U.S. Other their pro rata share General of the U.S. Unsecured Unsecured Creditor Equity Claims Distribution. Class 5B - US$2.4MM Holders will receive [10.5]% 22% Canadian their pro rata share General of the Canadian Creditor Unsecured Distribution. Claims If an Allowed Claim is filed against both the Canadian Operating Debtor and the U.S. Debtors, holder of that Claim will receive a pro rata share of either the Canadian Creditor Distribution or the U.S. Equity Distribution, whichever is the highest. Class 6 - US$58.3MM Holders of Convertible 0% 0% Convertible Subordinated Debentures Subordinated Claims will neither Debentures receive nor retain any Claims property under the Plan. Class 7 - - Holders of Claims will 0% 0% Section 510 not receive any property Subordinated under the Plan. Claims Class 8 - N/A Holders of Interests 0% 0% Equity will not receive any Interests property under the Plan. About DURA Rochester Hills, Michigan-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DURA AUTO: Unveils Financial Projections Under Revised Plan ----------------------------------------------------------- For the purpose of demonstrating the feasibility of the Revised First Amended Joint Plan of Reorganization, DURA Automotive Systems, Inc. and its debtor-affiliates, with the help of various professionals, prepared financial projections for the seven-month ended Dec. 31, 2008, and the three years ending Dec. 31, 2009, 2010, and 2011: Reorganized Debtors Unaudited Projected Consolidated Balance Sheet (in millions) At December 31 ---------------------------------- 2008 2009 2010 2011 ------- ------- ------- ------- ASSETS: Cash & Equivalents US$88.3 US$98.9 US$148.5 US$188.1 Net Accounts Receivable, Trade 241.1 230.8 229.3 221.3 Other Accounts Receivable 20.7 19.7 19.3 18.6 Net Inventory 124.4 122.5 120.9 118.7 Other Current Assets 98.6 95.1 92.4 89.3 ------- ------- ------- ------- Total Current Assets 573.2 567.1 610.3 636.1 Net Property, Plant & Equipment 397.2 369.8 348.8 324.8 Other Long-term Assets 49.2 35.3 26.6 16.0 ------- ------- ------- ------- Total Assets US$1,019.5 US$972.2 US$985.8 US$976.9 ======= ======= ======= ======= LIABILITIES: Accounts Payable US$180.1 US$166.8 US$169.6 US$166.1 Exit Line of Credit 11.5 - - - Foreign Debt 4.8 4.5 6.6 7.8 Accruals 143.8 139.1 133.6 123.4 Short-Term Deferred Taxes 7.0 6.6 6.3 6.1 ------- ------- ------- ------- Total Current Liabilities 347.2 317.1 316.2 303.4 First Lien Term Debt 149.3 147.8 146.3 144.8 Second Lien Term Debt 111.2 133.2 159.6 191.2 Long-term Deferred Taxes 8.9 8.6 8.4 8.1 Other Long-term Liabilities 96.2 87.4 79.8 71.2 ------- ------- ------- ------- Total Liabilities 712.7 694.1 710.3 718.7 Convertible Preferred Stock 255.6 310.7 377.7 459.1 ------- ------- ------- ------- Total Equity 51.2 (32.6) (102.1) (200.9) ------- ------- ------- ------- Total Liabilities & Equity US$1,019.5 US$972.2 US$985.8 US$976.9 ======= ======= ======= ======= Reorganized Debtors Unaudited Projected Consolidated Statement of Operations (in millions) For the seven For the year ended December 31 mos. ended ------------------------------ 12/31/08 2009 2010 2011 -------- -------- -------- -------- Total Sales US$975.9 US$1,600.6 US$1,593.4 US$1,576.4 Direct Manufacturing Costs 618.2 995.5 988.4 981.0 -------- -------- -------- -------- Contribution Margin 357.7 605.1 605.0 595.4 Manufacturing Overhead and Selling, General & Administrative 284.9 465.1 463.1 455.7 -------- -------- -------- -------- EBITDA 72.8 139.9 141.9 139.7 Other Expense (Income) 3.3 (1.5) (1.3) (0.0) Professional Fees 4.1 - - - Interest Expense (Net) 28.0 47.8 51.4 56.4 Restructuring Cost 13.2 13.9 1.0 - Depreciation 46.8 74.2 73.3 70.7 -------- -------- -------- -------- Pre-Tax Income (22.7) 5.6 17.5 12.6 Income Tax Expense 4.3 5.3 4.8 6.0 -------- -------- -------- -------- Net Income (US$27.0) US$0.3 US$12.7 US$6.6 ======== ======== ======== ======== Reorganized Debtors Unaudited Projected Statement of Cash Flows (in millions) For the For the year seven ended December 31 mos. ended ---------------------- 12/31/08 2009 2010 2011 -------- ------ ------ ------ Net Income (US$27.0) US$0.3 US$12.7 US$6.6 Depreciation 46.8 74.2 73.3 70.7 Other 0.1 (6.4) (5.4) (9.5) Changes in Working Capital: Accounts Receivable 37.8 (0.5) (4.2) (0.5) Inventory 2.7 (3.8) (1.4) (2.1) Accounts Payable (3.8) (3.2) 7.9 4.3 All Other (35.4) 0.2 (2.1) (6.3) -------- ------ ------ ------ Cash flow from Operations 21.2 60.7 80.9 63.1 Capital Expenditures (33.2) (59.2) (58.5) (55.2) Proceeds from Sale of Assets - - - - -------- ------ ------ ------ Cash flow from Investing (33.2) (59.2) (58.5) (55.2) Change in Exit Revolver 3.4 (11.5) - - Foreign Debt - 0.0 2.3 1.6 First Lien Debt Amortization (0.8) (1.5) (1.5) (1.5) Second Lien Debt 11.2 22.0 26.4 31.6 -------- ------ ------ ------ Cash flow from Financing 13.8 9.1 27.2 31.7 Net Cashflow 1.8 10.6 49.6 39.6 Beginning Cash 86.5 88.3 98.9 148.5 -------- ------ ------ ------ Ending Cash US$88.3 US$98.9 US$148.5 $188.1 ======== ====== ====== ====== A full-text copy of the Financial Projections is available for free at http://bankrupt.com/misc/DURAFinancialProjections.pdf About DURA Rochester Hills, Michigan-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Extended AAM Strike Cues S&P’s Negative Watch ------------------------------------------------------------- Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/--) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expect American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. The two sides resumed negotiations last week. "We believe the strike has gone on long enough to possibly begin to affect the financial resources of GM and those suppliers most exposed to the automaker," said Standard & Poor's credit analyst Robert Schulz. To resolve the CreditWatch listings, Standard & Poor's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GAS-TEC LTD: Calls In Liquidators from Tenon Recovery ----------------------------------------------------- Ian William Kings and Steven Philip Ross of Tenon Recovery were appointed joint liquidators of Gas-Tec Ltd. (formerly Hoodco 464 Ltd.) on March 10 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 MISYS PLC: Unit Inks Merger Agreement with Allscripts ----------------------------------------------------- Misys Healthcare LLC, a wholly-owned subsidiary of Misys Plc and Allscripts have signed a definitive merger agreement. The transaction would significantly enhance Allscripts position in the overall healthcare information technology sector and create an industry leader in the growing electronic health records and practice management markets. The combined company will have a client base of approximately 150,000 U.S. physicians and 700 hospitals and will be uniquely positioned to help physicians provide better patient care, manage their business more effectively and connect with their patients and other key healthcare stakeholders. Under the terms of the agreement, which has been approved by the board of directors of both companies, Misys Healthcare will be merged with a wholly-owned subsidiary of Allscripts, and Misys Plc will contribute US$330 million in cash to Allscripts, for which it will receive shares representing a 54.5% ownership position in the combined company. Allscripts will pay a special cash dividend of US$330 million, or approximately US$4.90 per share, to Allscripts stockholders of record as of the last business day immediately prior to the closing of the transaction. Allscripts stockholders would retain the shares they currently own. In its 2007 fiscal year, which encompasses the period from June 1, 2006 to May 31, 2007, Misys Healthcare had revenues of GBP196, or approximately US$376 million, and profit before exceptional items of GBP20.6, or approximately US$39.5 million. The current Allscripts management team will continue in their management roles at the combined company. Glen Tullman, Chief Executive Officer of Allscripts, will serve as CEO, and Bill Davis, Chief Financial Officer of Allscripts, will serve as CFO. Mike Lawrie, Chief Executive of Misys, will serve as Executive Chairman of the Board of Directors. The new board will have 10 members, including Mr. Lawrie, Mr. Tullman, five directors nominated by Misys and three directors nominated by Allscripts. The combined company, which would have over 3,700 employees, will be headquartered in Chicago, Illinois. Allscripts will continue to trade on the NASDAQ under the MDRX ticker. "This agreement changes the landscape in healthcare information technology by creating a single company that will serve roughly 150,000 physicians with our portfolio of electronic health record, practice management and other software solutions," stated Mr. Tullman. "Improving U.S. healthcare requires the ability to connect all stakeholders through the continuum of care, and today we have taken a major step towards doing that, with nearly one out of three physicians in America as customers of the combined company." "Bringing Allscripts and Misys Healthcare together represents a compelling opportunity for stockholders of both companies to participate in a combined organization with significant potential, including a major cross-selling opportunity that will drive us forward in the years ahead," Mr. Tullman continued. "In Allscripts, we have found the perfect partner to complement and drive our business and position us to deliver superior value to our shareholders, clients and employees over the long term. We have great respect for the Allscripts team and share highly compatible cultures," Mike Lawrie, Chief Executive Officer of Misys, said. The employees of both companies will enjoy the benefits of being part of a clear industry leader with a broader suite of products that meet the individual needs of all practice sizes and specialties. We all look forward to working with Glen Tullman and his team to deliver on the tremendous potential of the combined company." The combined company expects to achieve annual pre-tax cost synergies of US$15 to US$20 million in the first full year following the close of the transaction, increasing to total annual cost synergies of US$25 to US$30 million in the years that follow. The company also expects revenue synergies through cross-selling each company's product offering into each other's customer base. Misys has received a firm commitment from Lehman Brothers to provide debt financing, and an underwriting commitment from ValueAct Capital Master Fund L.P. to provide equity financing for the cash portion of the transaction, both of which are subject to customary conditions. ValueAct has committed to voting in favor of the transaction. The transaction is not conditioned on financing and is expected to close in the next four to six months. The transaction is subject to the approval of the merger agreement by Misys shareholders, the approval by Allscripts shareholders of the issuance of shares in the transaction and certain amendments to Allscripts charter and bylaws, regulatory approvals and customary closing conditions. Goldman, Sachs & Co. acted as the exclusive financial advisor to Allscripts and Sidley Austin LLP acted as legal counsel to Allscripts. Lehman Brothers acted as lead financial advisor to Misys and Debevoise & Plimpton LLP acted as legal counsel to Misys. Deutsche Bank AG also provided financial advice to Misys. About Allscripts Allscripts (Nasdaq: MDRX) is the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare. The company's unique solutions inform, connect and transform healthcare, delivering improved care at lower cost. More than 40,000 physicians and thousands of other healthcare professionals in clinics, hospitals and extended care facilities nationwide utilize Allscripts to automate everyday tasks such as writing prescriptions, documenting patient care, managing billing and scheduling, and safely discharging patients, as well as to connect with key information and stakeholders in the healthcare system. To learn more, visit Allscripts at www.allscripts.com. About Misys Headquartered in the United Kingdom, Misys PLC -- http://www.misys.com/-- provides industry-specific software serving the international banking and healthcare industries and the U.K. general insurance industry. In banking and treasury & capital markets, Misys is a market leader, with over 1,200 customers, including all of the world's top 50 banks. In healthcare, Misys is a market leader, serving more than 110,000 physicians in 18,000 practice locations and 600 home care providers. Misys employs around 4,500 people who serve customers in more than 120 countries. At May 31, 2007, the company’s balance sheet showed GBP567.2 million in total assets, GBP570.6 million in total liabilities and GBP3.4 million in stockholders’ deficit. The company’s May 31 balance sheet also showed strained liquidity with GBP294.6 million in total current assets available to pay GBP372.4 million in total liabilities coming due within the next 12 months. MYDDLETON CONSTRUCTION: Appoints PwC as Joint Administrators ------------------------------------------------------------ Nicholas Edward Reed and Stephen Andrew Ellis of PricewaterhouseCoopers LLP were appointed joint administrators of Myddleton Construction Ltd. (Company Number 03598039) and Myddleton Construction Major Projects Ltd. (Company Number 05511427) on March 12, 2008. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. The companies can be reached at: Myddleton Construction Ltd 29 Little Lane Ilkley West Yorkshire LS29 8HX England NORTHERN ROCK: Clive Briault to Leave FSA in April -------------------------------------------------- Clive Briault, who supervised Northern Rock plc at the Financial Services Authority, is to step down by "mutual agreement" in April, Philip Aldrick and Emma Thelwell writes for the Daily Telegraph. The FSA, the Daily Telegraph relates, is set to publish its internal report on the Northern Rock crisis on Wednesday, which according to bankers will be critical of the supervision operations under Mr. Briault. Mr. Briault, who joined the FSA at its inception in 1998 as director of central policy, will be temporarily replaced by FSA chief operating officer David Kenmir, the Daily Telegraph discloses. The paper adds five managers who directly oversaw supervision of Northern Rock in the last 19 months have already resigned. 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. NORTHERN ROCK: Unite Opposes Compulsory Redundancy Plans -------------------------------------------------------- Unite the union has told Northern Rock plc that they will oppose any plans for compulsory redundancies at the publicly owned bank. Following the announcement that the Northern Rock restructuring plans will mean a reduction in employee numbers, the union is seeking assurances that the workforce will be reduced through voluntary means only. "News that staff numbers will be reduced as part of the restructuring plans for Northern Rock will cause further uncertainty for the workforce. The employees of the bank have already faced months of insecurity and anxiety about their future," Unite Deputy General Secretary Graham Goddard said. "The union will be working to mitigate the implications of the recent crisis on the employees, who have been working tirelessly to ensure there is a sustainable business in the future. Unite will now be pressing the company for the detailed plans and will oppose any plans for compulsory redundancies. Through negotiations we will press Northern Rock to ensure that employee terms and conditions are protected. "Unite believes that through re-training and the exploration of alternative business opportunities the numbers of job losses can be decreased." Unite remains committed to the terms of the "Unite Charter for a Nationalised Northern Rock," which sets out the union's terms for the management of the nationalized bank. These include: no compulsory redundancies, job security for the workforce, protection of staff terms and conditions and pensions. 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. NOTTINGHAM TRADING: Taps Administrators from Begbies Traynor ------------------------------------------------------------ Richard Albert Brock Saville and Peter A. Blair of Begbies Traynor were appointed joint administrators of Nottingham Trading Co. Ltd. (Company Number 03206404) on March 12, 2008. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: Nottingham Trading Co. Ltd. 6 Gedling Street Nottingham Nottinghamshire NG1 1DS England Tel: 0115 911 0416 Fax: 0115 911 0417 PETROLEOS DE VENEZUELA: Wins Exxon Lawsuit ------------------------------------------ Judge Paul Walker of London Court has dissolved an injunction freezing US$12 billion assets belonging to Petroleos de Venezuela SA, Caroline Binham and Joe Carrol of Bloomberg News report. According to Bloomberg, PDVSA won the legal battle because the dispute has no connection with the U.K. Exxon, which has battled in arbitration to bag compensation for an oil field President Hugo Chavez seized last year. Erich Arispe, an analyst at Fitch Inc. in New York, said that the decision would make PDVSA face less skepticism from lenders as it aims financing for a US$70 billion expansion to double crude output in the next four years, the report relates. The report states that ExxonMobil claimed the order was not on the merits of the underlying conflict. Exxon spokesman Alan Jeffers, in its telephone interview, said that Judge Walker "concluded that the English courts shouldn't be issuing pre- judgment orders" with reference to international arbitrations. As previously reported, Exxon Mobil asked the London High Court to uphold the order freezing US$12 billion in Petroleos de Venezuela's assets to support the arbitration process between both parties. The asset-freeze order against the company was made so that Exxon Mobil would be able to extract compensation should it win a pending arbitration. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * To date, Petroleos de Venezuela SA carries Fitch's BB- long term issuer default rating and local currency long term issuer default rating. Fitch said the ratings outlook was negative. PETROLEOS DE VENEZUELA: CITGO Commends PDVSA on Lawsuit Victory --------------------------------------------------------------- A decision by a London Court to lift a US$12 billion freeze on assets owned by Petroleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela, acknowledges the international strength of CITGO’s ultimate parent and its importance as a world class oil producer, which makes an asset freeze unnecessary and incompatible with applicable laws, said CITGO Chairman, President and CEO Alejandro Granado. “We congratulate PDVSA on its victory in the ongoing legal fight against ExxonMobil. The decision today supports the fact that Venezuela and its national oil company have acted in compliance with principles that ratify the sovereign right of nations over their natural resources,” Mr. Granado noted. “I am very proud to be part of the big PDVSA family. PDVSA always acts in compliance with applicable laws, respecting its commitments with the support of a highly ethical, morally responsible and professional work force.” Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * To date, Petroleos de Venezuela SA carries Fitch's BB- long term issuer default rating and local currency long term issuer default rating. Fitch said the ratings outlook was negative. RESIDENTIAL MORTGAGE: Moody's Holds Ratings on 10 Note Classes -------------------------------------------------------------- Moody's Investors Service confirmed the ratings of 10 classes of notes issued by: -- Residential Mortgage Securities 20 Plc, -- Residential Mortgage Securities 21 Plc, and -- Residential Mortgage Securities 22 Plc. Moody's also downgraded 5 classes of notes issued by: -- Residential Mortgage Securities 20 Plc and -- Residential Mortgage Securities 22 Plc. These classes of notes where affected: Issuer: Residential Mortgage Securities 20 Plc -- Class M2a, Current Rating A2, rating confirmed -- Class M2c, Current Rating A2, rating confirmed -- Class B1a, Current Rating Baa2, downgraded to Baa3 -- Class B1c, Current Rating Baa2, downgraded to Baa3 -- Class B2a, Current Rating Ba3, rating confirmed. Issuer: Residential Mortgage Securities 21 PLC -- Class M2a, Current Rating A3, rating confirmed -- Class M2c, Current Rating A3, rating confirmed -- Class B1a, Current Rating Baa3, rating confirmed -- Class B1c, Current Rating Baa3, rating confirmed -- Class B2a, Current Rating B2, rating confirmed Issuer: Residential Mortgage Securities 22 PLC -- Class M2a, Current Rating A3, rating confirmed -- Class M2c, Current Rating A3, rating confirmed -- Class B1a, Current Rating Baa3, downgraded to Ba1 -- Class B1c, Current Rating Baa3, downgraded to Ba1 -- Class B2, Current Rating B2, downgraded to B3. This rating action concludes the review process of the above mentioned notes that started on Dec. 21, 2007, when all the classes were placed on review for downgrade and Class B2a and Class B2, issued by RMS 21 and RMS 22 respectively, were downgraded from Ba3 to B2. The review process was prompted by worse than expected performance of the underlying loan portfolios. The rating action took into account the performance of the mortgage loan pools as well as the credit enhancement currently available in the structures. In its December 2007 rating review, Moody's had adjusted its loss expectations for RMS 20 to a range of 3.25% to 3.75% of the original note balance. At 35 months since issuance, this transaction continues to show relatively high level of delinquency (90+ days delinquency of 16.91% of the current balance) and losses (cumulative losses of 1.2% of the original pool balance). Moody's believes that the current performance is still within the revised loss expectations as of the December 2007 rating review. The rating action accounted for the relatively high level of credit enhancement available in the structure and the protection provided by performance triggers. The reserve fund is currently equal to 2.68% of CB and it is non-amortizing following the breach of the cumulative foreclosure trigger (2.25% of cumulative foreclosures as % of original balance). It is anticipated that the transaction will change from sequential to pro rata repayment of the notes within the next quarters. In respect to the Class B2a notes, representing 0.29% of the total liabilities, this note is redeeming through excess spread and is anticipated to be fully repaid on the next interest payment date. For RMS 21, Moody's had increased the loss expectations for this pool to a range of 3.50% to 4.00% in December 2007. Moody's has maintained these revised assumptions on the basis of the performance shown in the last quarter. Currently, 90+ days delinquencies are equal to 14.50% of the outstanding pool balance and cumulative realised losses are equal to 1.03% of the original pool balance. Moody's has confirmed all the ratings placed on review for this transaction in consideration of the available credit enhancement in the structure, in particular the reserve fund (2.27% of current note balance and non-amortising) and the excess spread (0.56% of net excess spread after principal losses). Moody's believes that the previous rating action on the Class B2a is still adequate and consistent with the portfolio performance. For RMS 22, Moody's had reviewed the loss expectations in December 2007 to a range in line with RMS 21 and has maintaining the same revised assumptions. The rating actions on RMS 22 reflect (i) the lower seasoning of this collateral compared to the other two transactions, (ii) the relatively lower level of protection provided by the reserve fund (1.81% of current note balance), and (iii) the relatively lower excess spread (0.24% of net excess spread after principal losses). At 19 months since issuance, this transaction has 90+ days delinquencies equal to 10.99% of current balance and cumulative losses of 0.69% as of the original pool balance. These transactions are all benefiting from interest rate swaps as well as from a cash collateralization of fixed and discount rate loans. The current deposit amounts have been assessed for coverage of the fixed rate shortfalls. The incorporated detachable coupons entitled to receive interest on the relevant Class A notes have been reviewed based on applicable outstanding Class A tranche amount, interest rate and payment date. The resulting excess spread stripping is accounted for in the cash- flow modeling. Moody's ratings address the expected loss posed to investors by the legal final maturity of the notes. 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 will continue to closely monitor the performance of these outstanding transactions. TRANSLUTION HOLDINGS: Hires Joint Administrators from Tenon ----------------------------------------------------------- Dilip K. Dattani and Patrick Ellward of Tenon Recovery were appointed joint administrators of Translution Holdings Plc (Company Number 04822535) on March 7, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Translution Holdings Plc Malvern Hills Science Park Geraldine Road Malvern Worcestershire WR14 3SZ England Tel: 01684 585 211 Fax: 01684 585 373 TRANSLUTION LTD: Brings In Tenon Recovery to Administer Assets -------------------------------------------------------------- Dilip K. Dattani and Patrick B. Ellward of Tenon Recovery were appointed joint administrators of Translution Ltd. (Company Number 04502082) on March 7, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Translution Ltd. Malvern Hills Science Park Geraldine Road Malvern Worcestershire WR14 3SZ England Tel: +44 (0) 1684 585219 Fax: +44 (0) 1684 585373 Web site: http://www.translution.com/ GAS-TEC LTD: Calls In Liquidators from Tenon Recovery ----------------------------------------------------- Ian William Kings and Steven Philip Ross of Tenon Recovery were appointed joint liquidators of Gas-Tec Ltd. (formerly Hoodco 464 Ltd.) on March 10 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 VONAGE HOLDINGS: Inks Settlement Agreement with Nortel ------------------------------------------------------ Vonage Holdings Corp. said in a regulatory filing that on March 10, 2008, the company, Nortel Networks Inc., and Nortel Networks Limited entered into a settlement agreement effective Jan. 1, 2008, to implement the terms of a Memorandum of Understanding entered into by the parties on Dec. 28, 2007. Pursuant to the terms of the agreement, the company and Nortel agree to file within five days of the agreement between the parties joint stipulations for dismissal, without costs, dismissing without prejudice all claims and counterclaims in: -- Vonage Holdings Corp. v. SBC Internet Services Inc., et al., pending in the United States District Court for the Northern District of Texas, Fort Worth Division; and -- Vonage Holdings Corp. v. Nortel Networks Inc., et al., pending in the United States District Court for the District of Delaware. Further, the company agrees to dismiss without prejudice Central Telephone Company of Texas from all claims related to three of the company's patents in the Texas Action. Pursuant to the agreement, the company grants to Nortel and its affiliates a worldwide, non-exclusive, paid-up, transferable -- subject to certain limitations -- license under three of the company's patents relating to Voice over Internet Protocol technology. Nortel has the right to grant limited sublicenses to its customers to use the licensed products and services when manufactured or sold by Nortel, and to transfer the license rights in conjunction with a change of control of Nortel. Pursuant to the agreement, Nortel grants to the company and its affiliates a worldwide, non-exclusive, paid-up, transferable license under three of Nortel patents relating to VoIP technology. The company has the right to grant limited sublicenses to its customers to use the licensed products and services, and to transfer the license rights in conjunction with a change of control of the company. Either party may terminate the licenses described above if the other party: (a) brings a patent infringement suit against that party with respect to patents not licensed thereunder; or (b) brings a patent infringement suit against a third party which third party asserts a good faith claim of indemnification against either the company or Nortel or any of their affiliates. The company covenants not to sue Nortel customers for patent infringement of the three licensed Vonage Patents by reason of Nortel customers using licensed products or services and will not seek any damages or costs either during the term of the license or prior to Jan. 1, 2008, from Nortel customers for such use; provided, however, such covenant will become ineffective should Nortel bring a patent infringement suit against the company or any of its customers, prior to the company bringing any such suit against Nortel. Nortel covenants not to sue suppliers of products or services to the company, during the term of any Nortel Patent, for infringement of any Nortel Patent to the extent the company indemnifies them for patent infringement for providing products or services to the company. The company also releases Central Telephone Company of Texas and its customers from all claims, demands and rights of action with respect to any act of infringement or alleged infringement of any of the Vonage Patents by Central Telephone Company of Texas or its customers prior to Jan. 1, 2008. About Nortel Networks Corporation Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries including Indonesia, Australia, China, Hong Kong, India, Philippines, Singapore, Taiwan and Thailand. About Vonage Holdings Headquartered in Holmdel, New Jersey, Vonage Holdings Corp. (NYSE:VG) -- http://www.vonage.com/-- provides broadband telephone services with nearly 2.6 million subscriber lines. The company's Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and features like call waiting, call forwarding and voicemail for a flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc. and Target and is available to customers in the U.S., Canada and the United Kingdom. At Dec. 31, 2007, the company had US$462.3 million in total assets and US$537.4 million in total liabilities, resulting in a US$75.1 million total stockholders' deficit. VOXSURF LTD: Names Joint Administrators from Baker Tilly -------------------------------------------------------- Geoffrey Carton-Kelly and Michael David Rollings of Baker Tilly Restructuring and Recovery LLP were appointed joint administrators of Voxsurf Ltd. (Company Number 04051448) on March 11, 2008. Baker Tilly -- http://www.bakertilly.co.uk/-- provides auditing and other services for mid-cap and smaller publicly listed companies and private companies, particularly those expanding into new foreign markets. Services include business and financial planning, tax-related services, corporate finance, litigation support, turnaround services, and technology consulting. The company can be reached at: Voxsurf Ltd. 8 Sir John Lyon House High Timber Street The City London EC4V 3PA England Tel: 020 7557 4820 Fax: 020 7557 4830 * BOND PRICING: For the Week March 17 to March 21, 2008 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Kommunal Kredit Austria AG 0.500 03/15/19 CDN 65.49 0.250 10/14/26 CDN 40.13 Raiffeisen Centrobank AG 9.250 12/19/08 EUR 62.23 Republic of Austria 4.000 06/22/22 EUR 75.87 1.740 08/04/25 EUR 67.75 0.000 10/10/25 EUR 66.63 BULGARIA -------- Petrol AD Sofia 8.375 10/26/11 EUR 72.21 FINLAND ------- Muni Finance PLC 1.000 03/09/13 AUD 73.43 0.500 04/26/13 AUD 69.72 1.000 11/21/16 NZD 58.11 1.000 10/30/17 AUD 55.94 1.000 02/27/18 AUD 55.22 0.500 09/24/20 CDN 62.29 0.250 06/28/40 CDN 20.69 FRANCE ------ Alcatel S.A. 4.750 01/01/11 EUR 14.27 Altran Technologies S.A. 3.750 01/01/09 EUR 12.00 Calyon 6.000 06/18/47 EUR 50.54 CAP Gemini S.A. 2.500 01/01/10 EUR 51.68 1.000 01/01/12 EUR 43.96 Club Mediterranee S.A. 3.000 11/01/08 EUR 65.02 4.375 11/01/10 EUR 47.15 Europcar Groupe SA 8.130 05/15/14 EUR 68.55 Havas S.A. 4.000 01/01/09 EUR 10.61 Infogrames Entertainment S.A. 1.500 04/01/09 EUR 0.67 Ingenico 2.750 01/01/12 EUR 18.43 Maurel & Prom 3.500 01/01/10 EUR 20.46 Publicis Group 0.750 07/17/08 EUR 28.79 1.000 01/18/18 EUR 42.06 Rhodia S.A. 0.500 01/01/14 EUR 35.02 Scor S.A. 4.125 01/01/10 EUR 2.05 Soc Air France 2.750 04/01/20 EUR 22.28 Soitec 4.625 12/20/09 EUR 3.67 Tereos Europe S.A. 6.380 04/15/14 EUR 71.94 Theolia S.A. 2.000 01/01/14 EUR 22.76 Wendel Invest S.A. 2.000 06/19/09 EUR 42.56 GERMANY ------- Grohe Holdings AG 8.630 10/01/14 EUR 74.06 KfW Bankengruppe 0.500 10/30/13 AUD 67.82 0.500 12/19/17 EUR 69.49 1.250 07/07/20 EUR 73.45 5.000 07/21/25 EUR 75.75 5.000 09/01/25 EUR 76.37 Landeskreditbank Baden- Wuerttemberg Foerderbk 0.500 05/10/27 CDN 44.13 Landwirtschaftliche Rentenbank AG 1.000 03/29/17 NZD 56.71 GREECE ------ Hellenic Republic 0.628 07/13/20 EUR 65.68 0.990 07/17/24 EUR 74.17 ICELAND ------- Kaupthing Bank 6.500 02/03/45 EUR 50.51 IRELAND ------- Banesto Finance Plc 6.170 11/07/37 EUR 6.12 Depfa ACS Bank 0.500 03/03/25 CDN 48.42 0.250 07/08/33 CDN 28.01 Magnolia Finance IV Plc 1.050 12/20/45 US$ 25.70 Ono Finance II 8.000 05/16/14 EUR 73.94 ITALY ----- Risanamento S.p.A. 1.000 05/10/14 EUR 60.35 Telecom Italia S.p.A. 5.250 03/17/55 EUR 70.11 LUXEMBOURG ---------- Hayes Lemmerz Finance 8.250 06/15/15 EUR 71.49 Nell AF S.A. 8.380 08/15/15 EUR 70.99 8.380 08/15/15 EUR 71.49 Profilo Telra 10.75 12/07/11 EUR 15.99 NETHERLANDS ----------- ABN Amo Bank B.V. 6.250 06/29/35 EUR 65.88 9.000 02/23/09 ZAR 97.52 Air Berlin Finance B.V. 1.500 04/11/27 EUR 67.50 Biopetrol Finance B.V. 4.000 02/21/12 EUR 72.85 BK Ned Gemeenten 0.500 06/27/18 CDN 65.42 0.500 02/24/25 CDN 48.25 EM.TV Finance B.V. 5.250 05/08/13 EUR 4.54 Gerling Global N.V. 6.630 08/16/21 EUR 67.09 Hypo Real ES Finance 5.500 08/20/08 EUR 42.79 IVG Finance B.V. 1.750 03/29/17 EUR 74.08 KBC Ifimqa N.V. 5.880 02/07/25 US$ 77.95 Lehman Bros TSY B.V. 4.170 02/16/17 EUR 71.78 6.000 02/15/35 EUR 63.43 8.250 03/16/35 EUR 53.17 7.000 05/17/35 EUR 59.03 7.250 10/05/35 EUR 55.04 Ned Waterschapbk 6.000 06/01/35 EUR 70.57 6.500 08/15/35 EUR 65.61 6.000 06/30/45 EUR 60.93 NXP B.V. 8.630 10/15/15 EUR 72.84 8.630 10/15/15 EUR 72.67 Rabobank Groep N.V. 6.000 02/22/35 EUR 67.16 5.000 02/28/35 EUR 64.41 7.000 03/23/35 EUR 63.81 6.000 05/09/35 EUR 71.41 NORWAY ------ Kommunalbanken A.S. 0.500 02/07/13 AUD 70.73 Norske Skogindustrier ASA 7.000 06/26/17 EUR 60.85 SWEDEN ------ AB Svensk Export 0.500 03/27/13 AUD 70.94 SWITZERLAND ----------- UBS AG 1.000 06/28/12 NZD 74.57 1.000 07/30/12 NZD 74.16 UNITED KINGDOM -------------- Alliance & Leicester Plc 5.250 03/06/23 GBP 76.78 5.880 08/14/31 GBP 72.78 Anglian Water Finance Plc 2.400 04/20/35 GBP 49.85 BAA Plc 5.130 02/15/23 GBP 72.14 Bank of Scotland Plc 0.000 02/15/23 EUR 67.75 6.000 02/07/35 EUR 52.44 Britannia Building Society 5.880 03/28/33 GBP 81.36 FCE Bank Plc 7.130 01/16/12 EUR 73.10 Ford Credit Europe Plc 7.130 01/15/13 EUR 70.57 Ineos Group Holding 7.880 02/15/16 EUR 71.17 7.880 02/15/16 EUR 70.64 Lloyds TSB Bank Plc 6.210 12/14/37 EUR 60.31 Louis No. 1 Plc 8.500 12/01/14 EUR 71.21 National Grid Gas Plc 1.754 10/17/36 GBP 40.33 1.771 03/30/37 GBP 40.25 Rexam Plc 6.750 06/29/67 EUR 72.24 Royal BK Scotland 7.000 06/09/25 EUR 67.58 3.310 06/29/30 EUR 65.35 ********* 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. 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