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 Kli