/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080331.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 31, 2008, Vol. 9, No. 64 Headlines A U S T R I A A. ZANKL SOEHNE: Claims Registration Period Ends April 21 BIOKOENIG HANDEL: Claims Registration Period Ends April 14 HOLZERNTE HOLZ: Claims Registration Period Ends April 15 IEC BIOGAS: Claims Registration Period Ends April 2 IFT TRADING: Claims Registration Period Ends April 14 SPEDEX-INTERNATIONALE: Claims Registration Period Ends April 10 VEREIN ZUR FOERDERUNG: Claims Registration Period Ends April 25 D E N M A R K PRIME BRICKS: S&P Rates EUR11.95 Million Class F Notes at BB F I N L A N D ADVANCED MEDICAL: Posts US$192MM Net Loss for Year Ended 2007 F R A N C E CLEAR CHANNEL: Might Face Ad Sector Woes Alone, Report Says CLEAR CHANNEL: Extends Offer's Expiration Date to April 4 CLEAR CHANNEL: Defers First Quarter Dividend CLEAR CHANNEL: S&P Maintains Negative CreditWatch on Ratings DELPHI CORP: Moody's Ups Rating on New 2nd Lien Loan to (P)B2 RHODIA SA: Shareholders' Meeting Slated for May 16 SMOBY SA: Ex-CEO Under Police Custody Over Embezzlement Probe G E R M A N Y ASAT HOLDINGS: Nasdaq Delistes Securities Effective March 27 AVT GMBH: Claims Registration Ends April 16 BELSDORFER BAU: Claims Registration Period Ends April 16 BPZ BLUT: Claims Registration Period Ends April 16 COREALCREDIT BANK: Fitch Holds Rating on Sub. Obligations at BB DACHSEL-GRUETZNER: Claims Registration Period Ends April 16 FBB GMBH: Claims Registration Period Ends April 16 FIGARO FRISEUR: Claims Registration Period Ends April 16 GERU IM: Claims Registration Period Ends April 16 ICE WORLD: Claims Registration Period Ends April 23 KUNSTSTOFF-TECHNIK KRUEGER: Claims Period Ends April 8 MEGA STAR: Claims Registration Period Ends April 8 NATURSTEIN NORDO: Claims Registration Period Ends April 18 NATURSTEINE HANDEL: Claims Registration Ends April 15 OBJEKT + WOHNEN: Claims Registration Ends April 15 PRO.DIRECT GMBH: Claims Registration Period Ends April 18 QUEBECOR WORLD: Seeks Authority to Assume Various Contracts R & G SYSTEMBAU: Claims Registration Period Ends April 14 SCHULZE-FAHRZEUGSERVICE GMBH: Claims Registration Ends April 15 UNIVERSUS 24: Claims Registration Ends April 15 G E O R G I A * Fitch Affirms Georgia's Issuer Default Ratings at BB- I R E L A N D SMURFIT KAPPA: Irish Unit Inks Software Deal with VantagePoint I T A L Y ALITALIA SPA: Mediobanca, Eni Deny Report on Possible Offer ALITALIA SPA: Mulls Extending Union Talks Period Beyond Today K A Z A K H S T A N AUTO SPETS: Creditors Must File Claims by May 7 KOSTANAI TRANSIT: Claims Deadline Slated for May 14 MELINVEST LLP: Claims Filing Period Ends May 14 SEMEY SU: Creditors' Claims Due on May 9 SUN GRAIN: Claims Registration Ends May 7 VLAD ZERNO: Claims Deadline Slated for May 14 K Y R G Y Z S T A N BISHKEK AIR: Creditors Must File Claims by April 25 ULTRAS-TRUCK LLC: Claims Filing Period Ends April 25 N E T H E R L A N D S X5 RETAIL: Convening Shareholders Over Formata Financing Details X5 RETAIL: Completes Syndication of US$1 Billion Loan N O R W A Y FRONTIER DRILLING: S&P Puts B- Rating on Negative CreditWatch R U S S I A COBALT LLC: Proofs of Claim Deadline Set May 15 COMSTAR-UNITED: RTC Unit Elects Board of Directors INVEST-DOM-STROY LLC: Proofs of Claim Deadline Set May 15 KSM CJSC: Proofs of Claim Deadline Set May 15 MOSALSKIY CHEESE: Proofs of Claim Deadline Set May 15 NEGA S: Creditors Must File Claims by May 15 PMK-23 OJSC: Proofs of Claim Deadline Set April 15 ROSNEFT OIL: Investing RUR65 Billion to Hike Gas Refining Rate RUSSIAN FACTORING: Fitch Puts RUR500 Million Facility at BB SIB-STROY-SERVICE: Proofs of Claim Deadline Set May 15 SITRONICS JSC: Buys Melrose Holding's 36% Kvazar-Micro Stake SPROS-SERVICE LLC: Creditors Must File Claims by April 15 TSNA CJSC: Proofs of Claim Deadline Set May 15 WIMM-BILL-DANN FOODS: Commences Production at Omsk Site X5 RETAIL: Convening Shareholders Over Formata Financing Details * S&P Ups Bashkortostan's Long-Term Issuer Credit Rating to BB+ S P A I N EMPRESAS TDA: Moody's Rates EUR60 Million Series C Notes at Ba3 SMURFIT KAPPA: Closes Valladolid Recycled Container Board Mill S W I T Z E R L A N D BUROHAUS DES: Creditors' Liquidation Claims Due by April 2 DIAMOND PURCHASES: Creditors' Liquidation Claims Due by April 2 GIVABAU JSC: Creditors' Liquidation Claims Due by April 2 GOL LLC: Creditors' Liquidation Claims Due by April 2 IMMOBILIEN UND: Creditors' Liquidation Claims Due by April 2 LATELLANA JSC: Creditors' Liquidation Claims Due by April 3 LIVANI LUXURY: Creditors' Liquidation Claims Due by April 1 LOGAD MANAGEMENT: Creditors' Liquidation Claims Due by April 2 ORANIA JSC: Creditors' Liquidation Claims Due by April 3 PRIMSOL JSC: Creditors' Liquidation Claims Due by April 2 SONIC PLAYGROUND: Creditors' Liquidation Claims Due by April 2 U K R A I N E DELTA LLC: Creditors Must File Claims by April 3 FINANCIAL SERVICE: Creditors Must File Claims by April 4 GETMAN LLC: Creditors Must File Claims by April 4 STAYKI CJSC: Creditors Must File Claims by April 4 SVITANOK-1 LLC: Creditors Must File Claims by April 4 UKRAINIAN WEST: Creditors Must File Claims by April 3 ZAPOROZHYE PROJECT-CONSTRUCTOR: Creditors' Claim Due April 3 * Moody's Puts Ratings on 22 Banks Under Review and May Upgrade U N I T E D K I N G D O M ABITIBIBOWATER INC: Canadian Unit Has going Concern Doubt ABITIBIBOWATER INC: Disclosed Preliminary Results of Offer ABITIBIBOWATER INC: Extends Exchange Offer's Withdrawal Deadline BAKER STREET: Fitch Places Ratings Under Negative Watch BIASCO LTD: Taps Joint Administrators from BDO Stoy BILSING AUTOMATION: Brings In Administrators from Menzies CHRYSLER LLC: Clarifies Misleading Coverage of Discount Programs CLIFTON STREET: Fitch Puts Ratings Under Negative Watch CORBY BOTTLERS: Appoints KPMG to Administer Assets DARLINGTON WINES: Hires Joint Administrators from KPMG DORSET STREET: Fitch Puts Ratings on 9 Note Classes Under Watch FGIC CORP: Fitch Slashes Long-term Issuer Rating to 'BB' FORD MOTOR: Jaguar & Land Rover Sale Won't Affect S&P's Ratings FOUNTASIA LTD: Brings In Vantis to Administer Assets HALIFAX TOWN: Appoints Begbies as Joint Administrators HANOVER STREET: Fitch Puts Ratings on Ten Notes on Neg. Watch HIGH FREQUENCY: Creditors' Meeting Slated for April 9 HIGH FREQUENCY: Creditors' Meeting Slated for April 9 HUGHES NETWORK: Net Income Ups 161% to US$50 Million in 2007 LED SCREEN: S. J. Parker Leads Liquidation Procedure MAXJET AIRWAYS: Court Okays Sale of Assets to MAAG for US$1 Mln MENTON CDO III: Moody's Junks Ratings on Two Note Classes MILLENNIUM REPRO: Creditors' Meeting Slated for April 7 MONITOR OIL: Fails to Secure US$3.5 Funds from Creditors MONITOR OIL: Could Become Administratively Insolvent OXFORD STREET: Fitch Puts Note's Ratings- on Negative Watch PEMBRIDGE SQUARE: Fitch Places Notes' Ratings on Negative Watch QUEBECOR WORLD: Wants to Pay US$3,175,111 Sales Commissions REGENT STREET: Notes' Ratings Put on Negative Watch by Fitch ROYAL MAIL: To Close Final Salary Pension Scheme SCOTTISH RE: Further Delays December 2007 Form 10-K Filing SYDNEY STREET: Nine Ratings Put on Negative CreditWatch by Fitch SYMMETRY MEDICAL: Delays 2007 Form 10-K Filing to April1 14 * Fitch Says Tight Lending Criteria Threatens UK RMBS * Fitch Says FGIC & XLCA Ratings Cuts Won't Affect European ABCP * BOND PRICING: For the Week March 24 to March 28, 2008 ********* ============= A U S T R I A ============= A. ZANKL SOEHNE: Claims Registration Period Ends April 21 --------------------------------------------------------- Creditors owed money by LLC A. Zankl Soehne, Lack- und Farbenwerke (FN 57308b) have until April 21, 2008, to file written proofs of claim to court-appointed estate administrator Christian Atzwanger at: Mag. Christian Atzwanger Luefteneggerstrasse 12 4020 Linz Austria Tel: 0732/7788670 Fax: 0732/7832644 E-mail: office@schuh-atzwanger.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on May 5, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Room 522 Fifth Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on March 4, 2008 (Bankr. Case No. 12 S 19/08v). BIOKOENIG HANDEL: Claims Registration Period Ends April 14 ---------------------------------------------------------- Creditors owed money by LLC Biokoenig Handel (FN 250327d) have until April 14, 2008, to file written proofs of claim to court- appointed estate administrator Rafaela Zenz - Zajc at: Dr. Rafaela Zenz - Zajc Rainerstrasse 5 5310 Mondsee Austria Tel: 06232/27270 Fax: 06232/27270-7 E-mail: ihrrecht@mondsee-rechtsanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on April 24, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Oberwang, Austria, the Debtor declared bankruptcy on March 3, 2008 (Bankr. Case No. 20 S 25/08i). HOLZERNTE HOLZ: Claims Registration Period Ends April 15 -------------------------------------------------------- Creditors owed money by LLC Holzernte Holz-Verarbeitung (FN 251795m) have until April 15, 2008, to file written proofs of claim to court-appointed estate administrator Peter Handler at: Mag. Peter Handler LLC Handler Rechtsanwalt Hauptplatz 33 8530 Deutschlandsberg Austria Tel: 03462/4141 Fax: 03462/414141 E-mail: office@handler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on April 24, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 222 Second Floor Graz Austria Headquartered in Stainz, Austria, the Debtor declared bankruptcy on March 3, 2008 (Bankr. Case No. 26 S 26/08f). IEC BIOGAS: Claims Registration Period Ends April 2 --------------------------------------------------- Creditors owed money by LLC IEC Biogas Betrieb (FN 239178h) have until April 2, 2008, to file written proofs of claim to court- appointed estate administrator Florian Gehmacher at: Dr. Florian Gehmacher c/o Dr. Matthias Schmidt Dr. Karl Lueger-Ring 12 1010 Wien Austria Tel: 01/533 16 95 Fax: 01/535 56 86 E-mail: schmidt@preslmayr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on April 16, for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Wolfsthal, Austria, the Debtor declared bankruptcy on March 3, 2008 (Bankr. Case No. 36 S 23/08m). Matthias Schmidt represents Dr. Gehmacher in the bankruptcy proceedings. IFT TRADING: Claims Registration Period Ends April 14 ----------------------------------------------------- Creditors owed money by LLC IFT Trading (FN 251057b) have until April 14, 2008, to file written proofs of claim to court- appointed estate administrator Karl Bergthaler at: Dr. Karl Bergthaler Marktstrasse 1 4813 Altmuenster Austria Tel: 07612/88273 or 89425 Fax: 07612/88273-15 E-Mail: ra.haf-berg@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:40 a.m. on April 24, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Pinsdorf, Austria, the Debtor declared bankruptcy on March 3, 2008 (Bankr. Case No. 20 S 27/08h). SPEDEX-INTERNATIONALE: Claims Registration Period Ends April 10 --------------------------------------------------------------- Creditors owed money by LLC Spedex-Internationale Spedition (FN 173704y) have until April 10, 2008, to file written proofs of claim to court-appointed estate administrator Peter Bubits at: Mag. Peter Bubits c/o Mag. Andrea Prochaska Elisabethstrasse 2 2340 Moedling Austria Tel: 02236/89 31 61 Fax: 02236/42210-25 E-mail: peter.bubits@bkb-partner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on April 24, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Brunn am Gebirge, Austria, the Debtor declared bankruptcy on March 3, 2008 (Bankr. Case No. 10 S 23/08y). Andrea Prochaska represents Mag. Bubits in the bankruptcy proceedings. VEREIN ZUR FOERDERUNG: Claims Registration Period Ends April 25 --------------------------------------------------------------- Creditors owed money by Verein zur Foerderung des Gesundheitssports in Oesterreich have until April 25, 2008, to file written proofs of claim to court-appointed estate administrator Stefan Jahns at: Mag. Stefan Jahns Gonzagagasse 15 1010 Vienna Austria Tel: 532 17 11 Fax: 532 17 11 11 E-mail: kanzlei@jahns.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on May 9, 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 March 3, 2008 (Bankr. Case No. 28 S 35/08p). ============= D E N M A R K ============= PRIME BRICKS: S&P Rates EUR11.95 Million Class F Notes at BB ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its credit ratings to the EUR178.65 million floating-rate credit-linked notes issued by Prime Bricks 2008-1 GmbH. This is the second transaction, following Prime Bricks 2007-1 GmbH, to transfer credit risk on loans originated by Danske Bank A/S and its subsidiary Realkredit Denmark A/S granted to small to midsized enterprises across Denmark. A major part of loans in the reference portfolio are granted to cooperative housing companies and individuals for financing mortgages for letting purposes. The transaction is structured as a synthetic, partially funded transaction. The collateral backing the notes is certificates of indebtedness issued by KfW (AAA/Stable/A-1+). The ratings on the notes depend on the credit quality of KfW. Potential changes to the rating on KfW during the life of this transaction could, therefore, have a direct effect on the ratings on the notes. Losses are allocated to the notes for the outstanding amount of a reference loan minus the foreclosure proceeds received by Danske Bank, plus related enforcement costs during the foreclosure process. Ratings List Prime Bricks 2008-1 GmbH EUR178.65 Million Floating-Rate Credit-Linked Notes Class Rating Amount ----- ------ ------ A+ AAA EUR100,000 A AAA EUR59,750,000 B AA EUR55,300,000 C A EUR17,200,000 D BBB EUR23,150,000 E BBB EUR11,200,000 F BB EUR11,950,000 ============= F I N L A N D ============= ADVANCED MEDICAL: Posts US$192MM Net Loss for Year Ended 2007 ------------------------------------------------------------- Advanced Medical Optics Inc. incurred a net loss of US$192 million on US$1 billion of net sales for the year ended Dec. 31, 2007, compared to earnings of US$79 million on net sales of US$997 million for the year ended Dec. 31, 2006. The company's net sales for 2007 rose 9.4% to US$1,090.8 million. The rise reflects the IntraLase and WaveFront Sciences acquisitions, organic growth in cataract implant and laser vision corrections sales and a 2.9% increase related to foreign currency, which were partially offset by recall-related declines in eye care sales. The company had a GAAP net loss for 2007 of US$192.9 million, or a net loss of US$3.22 per share. The per share loss was increased by an estimated US$2.26 due to an US$87.0 million charge for in-process R&D, approximately US$38.2 million in transaction-related charges, a US$1.3 million deferred financing cost write-off, a US$6.1 million loss on derivative instruments and an estimated US$2.8 million tax effect. The company reported a fourth-quarter net loss under GAAP of US$12.3 million, compared to a net loss of US$7.6 million, in 2006's fourth quarter. These results included the impacts of the November 2006 and May 2007 recalls. The fourth-quarter 2007 results also included these items, which combined to increase the net loss per share by US$0.17: * US$10.7 million in pre-tax charges related to integration of acquisitions; * US$3.4 million pre-tax loss on derivative instruments; and * estimated tax effects totaling US$3.8 million. The company's fourth-quarter 2007 net sales rose 25% to US$304.6 million on organic growth, the acquisitions of IntraLase Corp. and WaveFront Sciences, Inc., and includes a 5.3% increase related to foreign currency impacts. On a pro forma basis, the company's fourth-quarter sales rose 7.3%. The pro forma sales growth rate reflects comparisons that include the IntraLase and WaveFront Sciences performance as if the acquisitions had occurred in all periods presented. Fourth- quarter sales growth was partially offset by lost sales and returns associated with the company's May 2007 contact lens care solution recall. Advanced Medical had total assets of US$2.7 billion, total liabilities of US$2.1 billion, and a stockholders' equity of US$598 million at Dec. 31, 2007, compared to total assets of US$2 billion, total liabilities of US$1.2 billion, and a stockholders' equity of US$715 million at Dec. 31, 2006. Plans to Reduce Fixed Costs The company disclosed plans to reduce its fixed costs in order to further enhance its global competitiveness, operating leverage and cash flow. The plan includes a net workforce reduction of approximately 150 positions, or about 4% of the company's global workforce. In addition, AMO plans to consolidate certain operations to improve its overall facility utilization. To complete this plan, AMO expects to incur charges between US$25 million and US$30 million in 2008 and estimates that the vast majority will be cash. Upon full implementation, the company expects these actions to result in annualized savings of approximately US$10 million to US$12 million. In 2008, the company estimates savings related to these actions in the range of US$4 million to US$7 million, which are reflected in the current guidance. The charges outlined above are in addition to the US$11 million to US$13 million in charges the company expects to take in 2008 to consolidate its equipment manufacturing, which was announced in December 2007. "Our fourth-quarter performance represented a strong finish to 2007, in which we advanced our strategy and moved aggressively to overcome challenges," said Jim Mazzo, chairman and chief executive officer. "Our cataract/implant business delivered growth across all product categories, and we are entering 2008 on track to launch a range of new technologies to position us for future growth. Our eye care business continued to rebound, with fourth-quarter 2007 sales up 20% on a sequential basis. In addition, this business is now launching our first-ever product to relieve dry eye symptoms. Demonstrating the competitive power of our dual excimer and femtosecond laser platform, our laser vision correction business achieved double-digit sales growth on a pro forma basis. With the planned 2008 release of new LASIK innovations, we intend to continue to expand our leadership position. "To ensure we are maximizing the earnings and cash flow power of the global footprint we have created, we need to be diligent in our effort to improve efficiency and productivity. We expect to accomplish this through staff reductions and infrastructure changes designed to reduce fixed costs, improve operating leverage and enhance long-term cash flow. "We remain confident in the strength of our global businesses, technologies, new product pipeline and strategy. However, after the first six weeks of 2008, we have seen the deteriorating U.S. economy negatively impact our domestic LASIK procedure volumes. We have multiple, unique growth drivers that we believe will mitigate our exposure to a slowdown in the elective refractive procedure market, but we feel a more conservative view is prudent at this time," concludes Mr. Mazzo. About Advanced Medical Headquartered in Santa Ana, Calif., Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. AMO employs employs approximately 4,200 worldwide. Outside the U.S., the company has operations in Australia, Brazil, Canada, China, Denmark, Finland, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Korea, Malaysia, Netherlands, New Zealand, Puerto Rico, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand and the United Kingdom * * * Advanced Medical Optics, Inc. continue to carry Moody's Investors Service's B2 Corporate Family Rating and Probability of Default Rating with a stable outlook. =========== F R A N C E =========== CLEAR CHANNEL: Might Face Ad Sector Woes Alone, Report Says ----------------------------------------------------------- Clear Channel Communication Inc. faces another potential struggle aside from facing a possible collapse of its sale to Thomas H. Lee Partners LP and Bain Capital Partners LLC, according to Sarah McBride of The Wall Street Journal. The report said the company stands to go alone in "a faltering radio industry." As reported in the Troubled Company Reporter-Europe on March 28, 2008, District Court Judge John D. Gabriel of Bexar County, Texas, awarded a Temporary Restraining Order in favor of Clear Channel after the company sued the banks that committed to financing the debt connected to their USUS$26 billion merger for tortuous interference on March 26, 2008. WSJ said, "If the deal isn't completed, Clear Channel will be back to square one in a business that has declined sharply during the months it has chased the sale." The advertising sector is suffering in general and radio advertising in particular, the report noted. Some of Clear Channel's radio operations have suffered while the sale is pending. At the time of the proposed sale, the company owned 1,150 stations. The number is now down to about 1,000, the report said. Clear Channel could depend on its promising billboard advertising to perform well, but worries remain that broader economic woes might drag down the sector, according to the report. The report supported the idea posited by Bear Stearns analyst Victor Miller to separate its slower-growing radio business from the more promising billboard category to restore some confidence and boost shares. Mr. Miller also suggested the company could sell its international outdoor business, the report said. What the report sees as the bright side at Channel Communication is the company's lower debt than most similar companies -- which was noted by Bernstein Research analyst Michael Nathanson. Clear Channel has a ratio for debt-to-EBITDA of 2.6 for 2008. Clear Channel had anticipated closing the merger agreement it entered into in May 2007 by March 31, 2008. The company's shareholders approved the adoption of the merger agreement, as amended, in which Clear Channel would be acquired by CC Media Holdings Inc., a corporation formed by private-equity funds co- sponsored by Lee Partners and Bain Capital. The deal includes US$19.4 billion of equity and US$7.7 billion of debt. If the deal is not pushed through, Channel Communications would get a breakup fee of US$500 million to US$600 million, and it wouldn't have to sell six radio stations as required under the privatization. The banks that agreed to finance the deal include Citigroup Inc., Morgan Stanley, Deutsche Bank AG, Credit Suisse Group, Royal Bank of Scotland PLC and Wachovia Corp. About Bain Capital Boston, Massachussetts-based Bain Capital Partners LLC -- http://www.baincapital.com/-- is a private investment firm with approximately US$40 billion in assets under management. Its family of funds includes private equity, venture capital, public equity and leveraged debt assets. Absolute Return Capital LLC is the global macro affiliate of Bain Capital. Bain Capital Private Equity has raised nine funds and invested in more than 200 companies. Bain Capital (Europe) Limited, an affiliate, is dedicated to investment opportunities in the European market. Bain Capital Venture Partners LLC is the venture capital arm of Bain Capital. Sankaty Advisors LLC, the credit affiliate of Bain Capital LLC, is a private manager of high-yield debt obligations. In October 2006, Michaels Stores Inc. announced the completion of its merger with affiliates of Bain Capital Partners LLC and The Blackstone Group. As a result, Bain Capital Partners LLC and Blackstone own equal stakes in Michaels, and funds affiliated with Highfields Capital Management own a minority stake. About Thomas Lee Partners Boston, Massachussetts-based Thomas H. Lee Partners LP -- http://www.thlee.com/-- Thomas H. Lee Partners is the teddy bear at the gate. Known as a "friendly" leveraged buyout (LBO) firm, the company uses a mix of debt, funds from institutional investors, and its own money to buy companies. Unlike the fearsome LBO outfits of the 1980s, Thomas H. Lee Partners eschews the axe for the handshake; it builds up a stake and courts management cooperation. Lee then usually sells the revamped acquisitions or takes them public. Thomas H. Lee, who founded Thomas H. Lee Partners in 1974, left his namesake firm in 2006 to start a long-planned rival hedge fund and private equity venture. The company has teamed up with Bain Capital to buy media titan Clear Channel for almost US$20 billion. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. As of Dec. 31, 2007, it owned 717 core radio stations, 288 non-core radio stations which are being marketed for sale and a leading national radio network operating in the United States. * * * As reported in the Troubled Company Reporter-Europe on March 28, 2008, In line with previous guidance, Fitch Ratings stated that Clear Channel's 'BB-' Issuer Default Rating and Senior Unsecured Ratings would remain in place if the going-private transaction is not completed. Similarly, Moody's Investors Service's said that the company's ratings remain under review for possible downgrade pending closing of the acquisition. Moody's will continue to monitor developments in order to assess the likelihood that the transaction will close. Moody's had previously stated in December 2007 that it would likely downgrade the company's Corporate Family Rating to B2 when its change of control is completed. CLEAR CHANNEL: Extends Offer's Expiration Date to April 4 --------------------------------------------------------- In connection with Clear Channel Communications, Inc.'s previously announced tender offer for its outstanding 7.65% Senior Notes due 2010 (CUSIP No. 184502AK8) and Clear Channel's subsidiary AMFM Operating Inc.'s previously announced tender offer for its outstanding 8% Senior Notes due 2008 (CUSIP No. 158916AL0), the company disclosed that it has extended the date on which the tender offers are scheduled to expire (the "Offer Expiration Date") from 8:00 a.m. New York City time on March 27, 2008 to 8:00 a.m. New York City time on April 4, 2008 and the consent payment deadline for the Notes from 8:00 a.m. New York City time on March 27, 2008 to 8:00 a.m. New York City time on April 4, 2008. The Offer Expiration Date and the Consent Payment Deadline are subject to extension by Clear Channel, with respect to the CCU Notes, and AMFM, with respect to the AMFM Notes, in their sole discretion. The completion of the tender offers and consent solicitations for the Notes is conditioned upon the satisfaction or waiver of all of the conditions precedent to the Agreement and Plan of Merger by and between Clear Channel, CC Media Holdings, Inc. and BT Triple Crown Merger Co., Inc., dated November 16, 2006, as amended by Amendment No. 1, dated April 18, 2007, and Amendment No. 2, dated May 17, 2007 and the closing of the merger contemplated by the Merger Agreement. The closing of the Merger has not occurred. On March 26, 2008, Clear Channel, joined by CC Media Holdings, Inc., filed a lawsuit in the Texas State Court in Bexar County, Texas, against Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, The Royal Bank of Scotland, and Wachovia, the banks who had committed to provide the debt financing for the Merger. Clear Channel intends to complete the tender offers and consent solicitations for the CCU Notes, and AMFM intends to complete the tender offers and consent solicitations for the AMFM Notes, upon consummation of the Merger. Clear Channel previously announced on January 2, 2008, that it had received, pursuant to its previously announced tender offer and consent solicitation for the CCU Notes, the requisite consents to adopt the proposed amendments to the CCU Notes and the indenture governing the CCU Notes applicable to the CCU Notes, and that AMFM had received, pursuant to its previously announced tender offer and consent solicitation for the AMFM Notes, the requisite consents to adopt the proposed amendments to the AMFM Notes and the indenture governing the AMFM Notes. As of 8:00 a.m. on March 27, 2008, approximately 87.47% of the AMFM Notes had been validly tendered and not withdrawn and approximately 98.58 percent of the CCU Notes had been validly tendered and not withdrawn. The Clear Channel tender offer and consent solicitation is being made pursuant to the terms and conditions set forth in the Clear Channel Offer to Purchase and Consent Solicitation Statement for the CCU Notes dated December 17, 2007, and the related Letter of Transmittal and Consent. The AMFM tender offer and consent solicitation is being made pursuant to the terms and conditions set forth in the AMFM Offer to Purchase and Consent Solicitation Statement for the AMFM Notes dated December 17, 2007, and the related Letter of Transmittal and Consent. Clear Channel has retained Citi to act as the lead dealer manager for the tender offers and lead solicitation agent for the consent solicitations and Deutsche Bank Securities Inc. and Morgan Stanley & Co. Incorporated to act as co-dealer managers for the tender offers and co-solicitation agents for the consent solicitations. Global Bondholder Services Corporation is the Information Agent for the tender offers and the consent solicitations. Questions regarding the tender offers should be directed to Citi at (800) 558-3745 (toll-free) or (212) 723-6106 (collect). Requests for documentation should be directed to Global Bondholder Services Corporation at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll- free). About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. As of Dec. 31, 2007, it owned 717 core radio stations, 288 non-core radio stations which are being marketed for sale and a leading national radio network operating in the United States. * * * As reported in the Troubled Company Reporter-Europe on March 28, 2008, In line with previous guidance, Fitch Ratings stated that Clear Channel's 'BB-' Issuer Default Rating and Senior Unsecured Ratings would remain in place if the going-private transaction is not completed. Similarly, Moody's Investors Service's said that the company's ratings remain under review for possible downgrade pending closing of the acquisition. Moody's will continue to monitor developments in order to assess the likelihood that the transaction will close. Moody's had previously stated in December 2007 that it would likely downgrade the company's Corporate Family Rating to B2 when its change of control is completed. CLEAR CHANNEL: Defers First Quarter Dividend -------------------------------------------- Clear Channel Communications, Inc. said Friday that its Board of Directors has determined to defer consideration of a first quarter dividend payable to shareholders. Historically, the Board has declared a dividend to shareholders of record on the last day of a quarter, with payment on or before the 15th of the following month. The Board of Directors took this action after receiving a request from Bain Capital and Thomas H. Lee Partners to defer the payment date in light of the delayed closing of Clear Channel's merger with CC Media Holdings, Inc. In support of their continued efforts to close the merger, the company has agreed to honor that request. About Bain Capital Boston, Massachussetts-based Bain Capital Partners LLC -- http://www.baincapital.com/-- is a private investment firm with approximately US$40 billion in assets under management. Its family of funds includes private equity, venture capital, public equity and leveraged debt assets. Absolute Return Capital LLC is the global macro affiliate of Bain Capital. Bain Capital Private Equity has raised nine funds and invested in more than 200 companies. Bain Capital (Europe) Limited, an affiliate, is dedicated to investment opportunities in the European market. Bain Capital Venture Partners LLC is the venture capital arm of Bain Capital. Sankaty Advisors LLC, the credit affiliate of Bain Capital LLC, is a private manager of high-yield debt obligations. In October 2006, Michaels Stores Inc. announced the completion of its merger with affiliates of Bain Capital Partners LLC and The Blackstone Group. As a result, Bain Capital Partners LLC and Blackstone own equal stakes in Michaels, and funds affiliated with Highfields Capital Management own a minority stake. About Thomas Lee Partners Boston, Massachussetts-based Thomas H. Lee Partners LP -- http://www.thlee.com/-- Thomas H. Lee Partners is the teddy bear at the gate. Known as a "friendly" leveraged buyout (LBO) firm, the company uses a mix of debt, funds from institutional investors, and its own money to buy companies. Unlike the fearsome LBO outfits of the 1980s, Thomas H. Lee Partners eschews the axe for the handshake; it builds up a stake and courts management cooperation. Lee then usually sells the revamped acquisitions or takes them public. Thomas H. Lee, who founded Thomas H. Lee Partners in 1974, left his namesake firm in 2006 to start a long-planned rival hedge fund and private equity venture. The company has teamed up with Bain Capital to buy media titan Clear Channel for almost US$20 billion. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. As of Dec. 31, 2007, it owned 717 core radio stations, 288 non-core radio stations which are being marketed for sale and a leading national radio network operating in the United States. * * * As reported in the Troubled Company Reporter-Europe on March 28, 2008, In line with previous guidance, Fitch Ratings stated that Clear Channel's 'BB-' Issuer Default Rating and Senior Unsecured Ratings would remain in place if the going-private transaction is not completed. Similarly, Moody's Investors Service's said that the company's ratings remain under review for possible downgrade pending closing of the acquisition. Moody's will continue to monitor developments in order to assess the likelihood that the transaction will close. Moody's had previously stated in December 2007 that it would likely downgrade the company's Corporate Family Rating to B2 when its change of control is completed. CLEAR CHANNEL: S&P Maintains Negative CreditWatch on Ratings ------------------------------------------------------------ Standard & Poor's Ratings Services said its ratings on Clear Channel Communications Inc., including the 'B+' corporate credit rating, remain on CreditWatch with negative implications. S&P originally placed them on CreditWatch on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. The company's proposed leveraged buyout, led by Thomas H. Lee Partners L.P. and Bain Capital Partners LLC, received FCC approval on Jan. 24, 2008. "This CreditWatch update follows unconfirmed news reports that there could be complications surrounding the proposed financing for the LBO, which includes roughly US$18.4 billion of senior secured credit facilities and US$2.6 billion of senior unsecured notes," explained Standard & Poor's credit analyst Michael Altberg. The company still intends to close the deal before the end of the first quarter. As S&P has previously indicated, if the deal fails to close, S&P would expect to raise the ratings, but not back to investment grade; the proposed LBO has changed S&P's financial policy expectations for Clear Channel. In addition, Clear Channel's contingency plans to increase shareholder value if the pending deal falls through are uncertain, and could be further complicated by the currently tight credit environment. S&P will continue to monitor developments surrounding the proposed merger. If the deal successfully closes, and barring any material changes due to the divestiture of certain assets or change in financing terms, S&P expects to lower Clear Channel's long-term corporate credit rating to 'B' from 'B+'. At the same time, S&P would expect to lower its rating on the company's existing senior unsecured notes to 'CCC+' (two notches below the expected corporate credit rating) from 'B-'. If the deal fails to close, the ultimate rating would depend on management's alternative plans for increasing shareholder value, as well as its long-term business and financial strategies. DELPHI CORP: Moody's Ups Rating on New 2nd Lien Loan to (P)B2 ------------------------------------------------------------- Moody's Investors Service raised the rating on Delphi Corporation's revised second lien term loan to (P)B2 from (P)B3 and affirmed the company's Corporate Family Rating and Probability of Default Ratings of (P)B2, Speculative Grade Liquidity rating of SGL-2, first lien term loan rating of (P)Ba2, and stable outlook. The revision to the rating on the second lien facility follows a change in the composition of the term loans from the structure Moody's rated on March 14, 2008. The total amount of secured term loans Delphi requires to emerge from bankruptcy is unchanged at US$4.525 billion. However, the first lien term loan will be reduced to US$1.7 billion from US$3.7 billion and the second lien term loan will be increased to US$2.825 billion from US$0.825 billion as the full US$2.0 billion of what was to be the B-2 tranche of the first lien term loan has been moved to the second lien facility. The first lien term loan will continue to be split between US$1.5 billion lodged at the parent and US$0.2 billion at a European subsidiary. The previous B-2 tranche was designed as a "second out" portion of the first lien term loan, and remains junior to the US$1.7 billion of the first lien term loan. However, it will now be documented as part of an enlarged second lien term loan. An affiliate of General Motors Corporation has agreed to accept up to US$2.825 billion of the second lien term loan as part of the settlement for GM's claims. Major terms of the first lien term loan have not been altered from those of the B-1 tranche in the earlier structure. As those terms involved initial amortization of 1% per year, by moving US$2.0 billion to the second lien term loan, which does not require any scheduled amortization prior to final maturity, Delphi's annual repayment obligations post emergence will be lowered by US$20 million a year. Nonetheless, Delphi's financial leverage will not be affected by these changes nor will its expected operating performance, and key coverage metrics will not experience any material change from previous expectations. Consequently, Moody's affirmed Delphi's Corporate Family and Probability of Default ratings as well its liquidity rating and outlook. Although the amount of the first lien term loan will be reduced, its rating of (P)Ba2 is unchanged; the amounts of debt that are superior, equally ranked, or junior in the overall waterfall are unchanged. The (P)B2 rating on the increased size of the second lien term loan is one notch higher than the earlier rating and level with that of the Corporate Family Rating. This develops from a lower amount of senior debt ahead of its claims and its higher proportion of the debt capital, both of which tend to boost its expected recovery rate. Rating revised: -- US$2.825 billion second lien term loan, (P)B2, LGD-4, 52% from (P)B3, LGD-4, 65% Rating withdrawn: -- US$2.0 billion B-2 tranche of first lien term loan, (P)B2, LGD-3, 47% Delphi Corporation, headquartered in Troy, Michigan, is a global tier-1 automotive supplier with products and services addressing electrical or electronic architecture, electronics & safety, powertrain systems, thermal systems, and aftermarket product and service solutions. The company expects to have revenues from continuing operations of roughly US$20 billion and employs approximately 171,000 people at 163 manufacturing sites around the world. Delphi has regional headquarters in Japan, Brazil and France. RHODIA SA: Shareholders' Meeting Slated for May 16 -------------------------------------------------- Rhodia S.A. informed its shareholders of a combined shareholders' meeting at 3:00 p.m. on May 16, 2008 to be held at: Pavillon d'Armenonville Allee de Longchamps Bois de Boulogne 75116 Paris France At the shareholders' meeting, approval will be requested for: -- a dividend of EUR0.25 per share that would be payable on May 23, 2008; -- the authorization of a share buyback program and the right to cancel the shares thus purchased; -- the renewal of the appointment as director of Yves Rene Nanot, Jerome Contamine and Michel de Fabiani to allow the board to continue to benefit from their expertise and experience; and -- the election as director of Laurence Danon, who is currently a member of the management board of Rothschild Corporate Finance. Her election will increase the number of independent board members to eight. All documents and information relating to the meeting will be available to shareholders under the terms and conditions specified by current regulations. The invitation to the meeting is scheduled for April 18, 2008. Laurence Danon has been a member of the Management Board of Rothschild Corporate Financ since 2007. She chairs the New Generations Commission at Medef, the French employer's association and she is a board member of Diageo Plc, Experian Plc, Plastic Omnium SA and Lafuma. 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. SMOBY SA: Ex-CEO Under Police Custody Over Embezzlement Probe ------------------------------------------------------------- Jean-Christophe Breuil, former chief executive officer of Smoby SA, has been taken into police custody in Dijon, France as part of an investigation into an alleged embezzlement of funds at the company, Heather Smith writes for Bloomberg News. The report discloses that according to Annie David, Mr. Breuil's lawyer, Mr. Breuil "can't be questioned except while in custody because he could be charged in the investigation." Mr. Breuil was named suspect by the state prosecutor in Lons-le- Saunier but claimed that he had always managed Smoby in a completely transparent way. The probe, which commenced in October 2007, aims to determine whether the transfer of funds from Smoby accounts to foreign companies made the toymaker more vulnerable, Bloomberg adds. About Smoby Headquartered in Lavans les Saint-Claude, France, Smoby -- http://www.smoby.fr/-- specializes in the creation, development, production and distribution of toys for children from birth to age 10. Smoby has a presence in over 90 countries globally, with commercial and/or industrial operations in South America, Asia and throughout Europe. The Company's products are sold worldwide through a network of 18 subsidiaries, with 65% of sales generated outside of France. In France, the Company employs 1, 300 workers. Its Latin America operations are found in Argentina, Brazil and Mexico. The Commercial Court of Lons-le-Saunier opened bankruptcy proceedings against Smoby on March 19, 2007, upon the Debtor's request. Smoby was hoping to snag an investor who will inject fresh capital yet remain a minority, as the company grapples with a EUR330-million debt. The company reported a net loss of EUR15.87 million for the year ended March 31, 2006, compared with a net profit of EUR1.56 million in 2005. ============= G E R M A N Y ============= ASAT HOLDINGS: Nasdaq Delistes Securities Effective March 27 ------------------------------------------------------------ The Nasdaq Hearings Panel determined to delist ASAT Holdings Limited's securities from The Nasdaq Stock Market, and suspended trading in the company's shares on March 27, 2008. The company received notice from the staff of the Nasdaq Stock Market regarding the Nasdaq Hearing Panel's determination on the company's non-compliance with Nasdaq continuing listing requirements, including maintaining the market value of its listed securities above US$35 million, its stockholders equity above US$2.5 million, and its net income of at least US$500,000 from continuing operations for the most recently completed fiscal year or two of the last three most recently completed fiscal years. After delisting from the Nasdaq Stock Market, the company expects that its American Depositary Shares will be traded on the OTC Bulletin Board. Headquartered in Pleasanton, California, ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a provider of semiconductor package design, assembly and test services. With 18 years of experience, the company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in- package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The company also has operations in Hong Kong, China and Germany. * * * Standard & Poor's placed ASAT Holdings Limited's long-term foreign and local issuer credit ratings at 'CCC-' in September 2007. The outlook is negative. AVT GMBH: Claims Registration Ends April 16 ------------------------------------------- Creditors of AVT GmbH & Co. KG have until April 16, 2008 to register their claims with court-appointed insolvency manager Marc Schmidt-Thieme. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 4, 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 Darmstadt Hall 4.311 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Marc Schmidt-Thieme Soldnerstr. 2 68219 Mannheim Germany Tel: 0621/87708-0 Fax: 0621/8770820 The District Court of Darmstadt opened bankruptcy proceedings against AVT GmbH & Co. KG on March 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AVT GmbH & Co. KG Feringastrasse 9 a 85774 Unterfoehring Germany Attn: Stefan Kramer, Manager Kocherbach 19 69483 Wald-Michelbach Germany BELSDORFER BAU: Claims Registration Period Ends April 16 -------------------------------------------------------- Creditors of Belsdorfer Bau-GmbH have until April 16, 2008, to register their claims with court-appointed insolvency manager Andre Loeffler. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on May 21, 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 13 Justizzentrum Magdeburg Breiter Weg 203 - 206 39104 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: Andre Loeffler Klewitzstr. 15 39112 Magdeburg Tel: 0391/7324630 o. 39 Fax: 0391/7324633 E-mail: magdeburg@loeffler-insolvenzverwalter.de The District Court of Magdeburg opened bankruptcy proceedings against Belsdorfer Bau-GmbH on March 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Belsdorfer Bau-GmbH Attn: Frank Trager, Manager Alleringerslebener Str. 25 39365 Wefensleben - Belsdorf Germany BPZ BLUT: Claims Registration Period Ends April 16 -------------------------------------------------- Creditors of BPZ Blut-Plasma-Zentrum GmbH have until April 16, 2008, to register their claims with court-appointed insolvency manager Hans-Ulrich Ruenger. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Fuerth Room 216 II Dienstgebaude Baumenstr. 28 Fuerth Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hans-Ulrich Ruenger Prinzregentenufer 9 90489 Nuremberg Germany Tel: 0911/955188 Fax: 0911/9551866 The District Court of Fuerth opened bankruptcy proceedings against BPZ Blut-Plasma-Zentrum GmbH on March 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BPZ Blut-Plasma-Zentrum GmbH Maxstr. 44 90763 Fuerth Germany COREALCREDIT BANK: Fitch Holds Rating on Sub. Obligations at BB --------------------------------------------------------------- Fitch Ratings affirmed Germany-based Corealcredit Bank AG's ratings at Long-term Issuer Default 'BBB-' with Stable Outlook, Short-term IDR 'F3', Support '2', and Individual rating 'D'. The Support Rating Floor is also affirmed at 'BBB-'. At the same time, the bank's subordinated obligations are affirmed at 'BB' and its profit participation rights (Genussscheine) are affirmed at 'CC'/'RR5'. "The Long- and Short-term IDRs of Corealcredit, formerly known as Allgemeine Hypothekenbank Rheinboden AG, reflect Fitch's opinion that the probability of external support remains high, should it be required," says Michael Steinbarth, Director in Fitch's Financial Institutions team. In case of financial difficulties, Fitch believes that Germany's private-sector banks would arrange timely support for the bank's senior unsecured obligations, in line with the action taken in 2005. However, it appears likely that obligations that form part of the bank's regulatory capital could be expected to absorb losses, resulting in a lower, but still moderate, probability of support for subordinated debt. Accordingly, Fitch has widened its traditional notching between senior and subordinated instruments to reflect this possibility. With the continuing restructuring of Corealcredit, its position as a major issuer of Pfandbriefe is likely to further weaken. Therefore, Fitch will continue to monitor developments as the bank downsizes and repositions itself and will continue to review the agency's position on support as the bank's franchise and market position evolves, which may affect the likelihood of external support for the senior unsecured obligations. The ratings do not place any reliance on institutional support being provided by the bank's owner, Lone Star Fund V German Investments, L.P. The Individual rating reflects the satisfactory progress made in the bank's restructuring and an adequate level of capital held. This is balanced by an unproven track record of operating performance, a still elevated level of non-performing loans and the reliance on wholesale funding in a challenging operating environment. The Individual rating would benefit from a track record of recurring operating profitability, a greater diversification of funding sources and from a marked reduction in NPLs. In 2007, the bank successfully launched its banking operations under a new identity. While Fitch notes that Corealcredit has no exposure to US sub-prime-related business or structured credits, the agency believes that the bank's stringent focus on domestic commercial real estate lending makes it more vulnerable to changes in its operating environment, as this business line can be volatile. The ratings of the bank's public sector and mortgage Pfandbriefe remain unaffected by the rating action. DACHSEL-GRUETZNER: Claims Registration Period Ends April 16 ----------------------------------------------------------- Creditors of Dachsel-Gruetzner GmbH Riemsdorf have until April 16, 2008, to register their claims with court-appointed insolvency manager Christoph Junker. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 28, 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 Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Christoph Junker Karcherallee 25 a 01277 Dresden Germany E-mail: http://www.junker-kollegen.de/ The District Court of Dresden opened bankruptcy proceedings against Dachsel-Gruetzner GmbH Riemsdorf on March 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dachsel-Gruetzner GmbH Riemsdorf Ullendorfer Strasse 11 01665 Klipphausen Germany FBB GMBH: Claims Registration Period Ends April 16 -------------------------------------------------- Creditors of FBB GmbH i.L. Finowfurt have until April 16, 2008, to register their claims with court-appointed insolvency manager Axel Raap. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on May 21, 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 Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) 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: Axel Raap Herrengraben 5 20459 Hamburg Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against FBB GmbH i.L. Finowfurt on Feb. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FBB GmbH i.L. Finowfurt Regattastrasse 132 12527 Berlin Germany FIGARO FRISEUR: Claims Registration Period Ends April 16 -------------------------------------------------------- Creditors of "FIGARO" Friseur- und Kosmetik GmbH have until April 16, 2008, to register their claims with court-appointed insolvency manager Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Leipzig Hall 145 First Floor Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Stephan Thiemann Schorlemmerstrasse 2 04155 Leipzig Germany Tel: 0341/4903650 Fax: 0341/4903699 E-mail: leipzig@pluta.net The District Court of Leipzig opened bankruptcy proceedings against "FIGARO" Friseur- und Kosmetik GmbH on Feb. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: "FIGARO" Friseur- und Kosmetik GmbH Attn: Marco Rentzsch, Manager Gustav-Adolf-Strasse 38 04105 Leipzig Germany GERU IM: Claims Registration Period Ends April 16 ------------------------------------------------- Creditors of GERU Im- und Export GmbH have until April 16, 2008, to register their claims with court-appointed insolvency manager Thomas Wulsten. Creditors and other interested parties are encouraged to attend the meeting at 10:35 a.m. on May 21, 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 Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Thomas Wulsten Rudolf-Breitscheid-Strasse 33 14482 Potsdam Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against GERU Im- und Export GmbH on March 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GERU Im- und Export GmbH Fuchsbau 9 15345 Eggersdorf Germany ICE WORLD: Claims Registration Period Ends April 23 --------------------------------------------------- Creditors of ICE world GmbH have until April 23, 2008, to register their claims with court-appointed insolvency manager Kilian Goergen. Creditors and other interested parties are encouraged to attend the meeting at 12:10 p.m. on May 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 Wittlich Hall 3 Kurfuerstenstrasse 63 54516 Wittlich 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: Kilian Goergen Richtstr. 1-3 54338 Schweich Germany Tel: 06502-939134 Fax: 06502-939136 The District Court of Wittlich opened bankruptcy proceedings against ICE world GmbH on Feb. 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ICE world GmbH Attn: Damar Ferullah, Manager Moselstr. 15 56841 Traben-Trarbach Germany KUNSTSTOFF-TECHNIK KRUEGER: Claims Period Ends April 8 ------------------------------------------------------ Creditors of Kunststoff-Technik Krueger GmbH have until April 8, 2008, to register their claims with court-appointed insolvency manager Peter Engelmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Nuernberg Meeting Hall 152/I Flaschenhofstr. 35 Nuernberg 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: Peter Engelmann Archivstrasse 3 90408 Nuernberg Germany Tel: (0911) 59781 -22 Fax: (0911) 59781 -44 The District Court of Nuernberg opened bankruptcy proceedings against Kunststoff-Technik Krueger GmbH on March 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kunststoff-Technik Krueger GmbH Neumarkter Strasse 39 90584 Allersberg Germany MEGA STAR: Claims Registration Period Ends April 8 -------------------------------------------------- Creditors of Mega Star Logistik GmbH have until April 8, 2008, to register their claims with court-appointed insolvency manager Dr. Steffen Koch. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on April 28, 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 Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Koch Albert-Einstein-Ring 11 22761 Hamburg Germany Tel: (0 40) 8 99 56 - 0 Fax: (0 40) 8 99 56 - 41 The District Court of Walsrode opened bankruptcy proceedings against Mega Star Logistik GmbH on March 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mega Star Logistik GmbH Heinrich-Hertz-Strasse 13 29664 Walsrode Germany Attn: Hans-Dieter Warnecke, Manager Schneeheide 21 29664 Walsrode Germany NATURSTEIN NORDO: Claims Registration Period Ends April 18 ---------------------------------------------------------- Creditors of Naturstein Nord GmbH have until April 18, 2008, to register their claims with court-appointed insolvency manager Gerhard Brinkmann. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on May 21, 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 Stralsund Hall AE 26 Ground Floor House A Bielkenhagen 9 Stralsund 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 Brinkmann Freiligrathstr. 1 18055 Rostock Germany The District Court of Stralsund opened bankruptcy proceedings against Naturstein Nord GmbH on March 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Naturstein Nord GmbH Attn: Peter Heine, Manager Rostocker Chaussee 26 18437 Stralsund Germany NATURSTEINE HANDEL: Claims Registration Ends April 15 ----------------------------------------------------- Creditors of Natursteine Handel Zwickau GmbH have until April 15, 2008 to register their claims with court-appointed insolvency manager Wolfgang Hauser. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on May 28, 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 Chemnitz Hall 24 Fuerstenstrasse 21-23 09130 Chemnitz 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: Wolfgang Hauser Poetenweg 36 08056 Zwickau Germany Tel: (0375) 273660 Fax: (0375) 2736613 The District Court of Chemnitz opened bankruptcy proceedings against Natursteine Handel Zwickau GmbH on Feb. 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Natursteine Handel Zwickau GmbH Attn: Joerg Nebel, Manager Schubertstr. 37 08058 Zwickau Germany OBJEKT + WOHNEN: Claims Registration Ends April 15 -------------------------------------------------- Creditors of Objekt + Wohnen Projektentwicklung GmbH have until April 15, 2008 to register their claims with court-appointed insolvency manager Klaus W. Gerling. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on May 21, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus W. Gerling Mediapark 6 B 50670 Cologne Germany Tel: 57 43-71 40 Fax: +4922157437149 The District Court of Cologne opened bankruptcy proceedings against Objekt + Wohnen Projektentwicklung GmbH on March 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Objekt + Wohnen Projektentwicklung GmbH Ringstr. 20 50996 Cologne Germany Attn: Martina Maass, Manager Ringstr. 20 50996 Cologne Germany PRO.DIRECT GMBH: Claims Registration Period Ends April 18 --------------------------------------------------------- Creditors of Pro.direct GmbH have until April 18, 2008, to register their claims with court-appointed insolvency manager Dr. Michael Miersch. Creditors and other interested parties are encouraged to attend the meeting at 8:15 a.m. on May 29, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rosenheim Room 112 Rosenheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Michael Miersch Kufsteiner Strasse 14/II 83022 Rosenheim Germany Tel: 0 80 31/ 36 77 0 Fax: 0 80 31/ 36 77 36 The District Court of Rosenheim opened bankruptcy proceedings against Pro.direct GmbH on March 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pro.direct GmbH Kufsteiner Str. 40 83088 Kiefersfelden Germany QUEBECOR WORLD: Seeks Authority to Assume Various Contracts ----------------------------------------------------------- Quebecor World Inc. and its affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to assume executory contracts with various entities. 1. Hell Gravure, GMBH & Co. KG The Debtors want to assume four executory contracts with Hell Gravure, GMBH & Co. KG to which the Debtors would buy certain rotogravure printing equipment and related software from Hell Gravure: (a) Quebecor Worlfd Atglen Inc. and Hell Gravure Agreement for purchase of two K6 Engravers for the Debtors' Atglen, Pennsylvania facility; (b) Quebecor World Mt. Morris II LLC and Hell Gravure Agreement for the purchase of two K6 Engravers for the Debtors' Mt. Morris, Illinois Facility; (c) QW Atglen and Hell Gravure Agreement for the purchase of two K6 Engravers for the Debtors' Franklin, Kentucky facility; and (d) A purchase order between QW Memephis Corp. and Hell Gravure for K6 upgrades to existing K406 Engravers for the Debtors' Dickson, Tennessee facility. The Debtors owe EUR1,872,938 to Hell Gravure under the contracts. The Debtors seek the Court's authority to pay its cure amounts and provide Hell Gravure with adequate assurance of future performance in accordance with Section 365 of the Bankruptcy Code. Michael Canning, Esq., at Arnold & Porter LLP, in New York, says that assumption of the contracts is critical to the Debtors' business. 2. Maschinenfabrik K. Walter GMBH & Co. KG The Debtors seek the Court's authority to assume two contracts with Maschinenfabrik K. Walter GMBH & Co. KG for the purchase of copper tanks used to plate the cylinders used in the rotogravure printing process. Quebecor World Nevada Inc. entered into an Equipment Purchase Agreement with K. Walter dated Sept. 3, 2007, for the purchase of one copper tank for the Debtors' Fernley, Nevada facility, and Quebecor World Atglen, Inc. entered into an Equipment Purchase Agreement with K. Walter dated Sept. 19, 2007, for the purchase of one copper tank for the Debtors' Franklin, Kentucky facility. The Debtors also ask Judge James M. Peck's permission to pay a US$240,000 cure amount on account of the equipment for the Fernley plant. The Debtors will provide K. Walter with adequate assurance of future performance. Mr. Canning says the Cylinder Plating Equipment is necessary to the Debtors' business, and the favorable terms of the Agreements make it a valuable asset of the Debtors' bankruptcy estates. 3. SIM Products Inc. Debtor Quebecor World Logistics Inc. and SIM Products Inc. entered into a contract, wherein the Debtor would purchase six 30-Pocket Co-Mailing Systems from SIM. Co-Mailers are used by the Debtors in connection with their direct mail business. A 30-Pocket Co-Mailer system consists of software and equipment capable of integrating subscriber lists from up to 30 different publishers and then bundling the related publications according to mail carrier routes and postal ZIP codes established by the U.S. Postal Service, so that magazines, catalogs and other materials published by multiple customers that are destined for the same geographic area are grouped together prior to delivery to the Postal Service. As of March 10, 2008, the Debtors have made down payments and installment payments totaling 39% of the total purchase price. The unpaid prepetition amount currently due and owing on account of the Co-Mailers is US$541,965, which is the amount that would be required to cure the Debtors' defaults under the Agreement pursuant to Section 365(b) of the Bankruptcy Code. The Debtors ask Judge Peck for permission to assume the contract, pay the Cure Amount to cure existing defaults, and provide SIM with adequate assurance of future performance. The Co-Mailers are necessary to the Debtors' business, and the favorable terms of the Agreement make it a valuable asset of the Debtors' bankruptcy estates, Mr. Canning says. 4. Goss International Americas Inc. Debtor Quebecor World Waukee Inc. and Goss International Americas Inc. entered into a contract, wherein Waukee would purchase a Universal 45 Four-High Tower Add-On with related equipment from Goss. According to Mr. Canning, the Tower would be added as an additional tower to an existing Goss Universal 45 press at the Debtors' facility in Waukee, Iowa. The Goss U45 Press is used primarily in the Debtors' telephone directory business. The Tower would provide additional page and color capability to the existing Goss U45 Press. "Increasing the range of page and color capability that the Debtors are able to offer to their customers will substantially increase their ability to generate revenue in the telephone directory business," Mr. Canning says. Mr. Canning relates that beginning mid-April 2008, the Waukee facility will lose a substantial amount of earnings each week the Tower is not operational, as it will have to outsource a substantial amount of work produced on the Goss U45 Press. Installation of the Tower was scheduled for March-April because the facility is less busy during this time and could more easily afford to take the Goss U45 Press offline for the time it will take to complete the installation and testing for the Tower. As of March 10, 2008, the Tower has been manufactured and shipped to Waukee, and Goss has represented to the Debtors that it is prepared to begin installation of the Tower immediately following assumption of the Agreement, Mr. Canning says. As of March 10, 2008, the Debtors have made down payments and installment payments totaling 45% of the total purchase price. The unpaid amount currently due and owing on account of the Tower is US$705,458, which is the amount that would be required to cure the Debtors' defaults under the Agreement pursuant to Section 365(b) of the Bankruptcy Code. The Debtors seek the Court's authority to assume the Agreement, pay the Cure Amount to cure existing defaults, and provide Goss with adequate assurance of future performance. Mr. Canning relates that the Tower is necessary to the Debtors' telephone directory business and will allow the Debtors to avoid outsourcing work related to that line of business. "Moreover, because the Debtors have already installed the Goss U45 Press at their Waukee facility, Goss is the only manufacturer that produces a tower add-on that is compatible with the Debtors' existing equipment." About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) R & G SYSTEMBAU: Claims Registration Period Ends April 14 --------------------------------------------------------- Creditors of R & G Systembau GmbH have until April 14, 2008, to register their claims with court-appointed insolvency manager Olaf Seidel. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on May 21, 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 Dresden Hall D131 Olbrichtplatz 1 01099 Dresden 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: Olaf Seidel Weisseritzstrasse 3 01067 Dresden Germany Web site: http://www.worako.de/ The District Court of Dresden opened bankruptcy proceedings against R & G Systembau GmbH on March 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: R & G Systembau GmbH Jagdweg 1 - 3 01159 Dresden Germany SCHULZE-FAHRZEUGSERVICE GMBH: Claims Registration Ends April 15 --------------------------------------------------------------- Creditors of Schulze-Fahrzeugservice GmbH have until April 15, 2008 to register their claims with court-appointed insolvency manager Kai Dellit. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on May 27, 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 Chemnitz Hall 27 E Fuerstenstrasse 21-23 09130 Chemnitz 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: Kai Dellit Michaelstrasse 71 09116 Chemnitz Germany Tel: (0371) 381770 Fax: (0371) 3817730 E-mail: chemnitz@hww-kanzlei.de The District Court of Chemnitz opened bankruptcy proceedings against Schulze-Fahrzeugservice GmbH on March 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schulze-Fahrzeugservice GmbH Attn: Werner Strecke and Anja Schuhmann, Managers Barensteiner Str.11 09456 Annaberg-Buchholz Germany UNIVERSUS 24: Claims Registration Ends April 15 ----------------------------------------------- Creditors of Universus 24 GmbH have until April 15, 2008 to register their claims with court-appointed insolvency manager Dr. jur. Rainer Eckert. Creditors and other interested parties are encouraged to attend the meeting at 9:10 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 Hannover Hall 226 Second Upper Floor Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. jur. Rainer Eckert Arthur-Menge-Ufer 5 30169 Hannover Germany Tel: 0511 626287-0 Fax: 0511 626287-10 The District Court of Hannover opened bankruptcy proceedings against Universus 24 GmbH on Feb. 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Universus 24 GmbH Attn: Pavel Mass, Manager Lilienthalstrasse 13 30179 Hannover Germany ============= G E O R G I A ============= * Fitch Affirms Georgia's Issuer Default Ratings at BB- ------------------------------------------------------- Fitch Ratings affirmed Georgia's Long-term local and foreign currency Issuer Default ratings at 'BB-' with Stable Outlooks. At the same time, the agency has affirmed Georgia's Country Ceiling at 'BB-' and Short-term foreign currency IDR at 'B'. "Georgia's sovereign ratings are supported by its moderate government debt burden of 25% of GDP and dynamic economic growth rate that averaged 9.7% in the five years to 2007, propelled by an impressive record of structural reforms and massive foreign direct investment inflows," says Edward Parker, Head of Emerging Europe sovereigns at Fitch. "However, political and economic weaknesses, including a substantial current account deficit, pose risks to the country's rapid development path." Fitch forecasts real GDP growth of around 9% this year, after 12.4% in 2007. Georgia's economic revival and foreign direct investment inflows of around 15% of GDP last year are testament to the liberal reform agenda of the government. The improvement in the business climate is underscored by Georgia's rank of 18th in the 2008 World Bank Doing Business Survey, the highest of any sub-investment grade country, up from 112th in 2006. The rating is also underpinned by Georgia's public finances. Fitch estimates that public debt was a moderate 25% of GDP at end-2007, below the 'BB' range median of 34%, and has declined from 71% at end-2002. The 2008 budget envisages a tightening in the general government deficit to around 2.3% of GDP (counting privatisation receipts below the line), after strong expenditure pressures induced a pro-cyclical widening to 4.7% of GDP last year. A recent amendment to the Budget Systems Law prohibits deficits from 2009. Although the government indicates that it plans to place the proceeds from its prospective debut eurobond into its two newly-created sovereign wealth funds, there is a risk that the proceeds could be used for general fiscal financing. Fitch views Georgia's external finances as a rating weakness. It estimates the current account deficit at close to 20% of GDP in 2007, albeit largely driven and financed by strong FDI. The global credit crunch heightens external financing risks. Georgia's liquidity ratio (which measures liquid foreign assets over foreign liabilities falling due over the next 12 months) is 111% in 2008, below the 'BB' range median of 243%; Fitch estimates net external debt was equivalent to 22% of GDP at end- 2007, compared with the 'BB' range median of 0. Bank credit to the private sector surged by 64% in real terms last year, though it remains moderate at 28% of GDP at end-2007. Inflation picked up to 11% at end-2007, reflecting both supply side shocks and strong monetary growth. Reassuringly, the National Bank of Georgia has tightened monetary policy this year; a new law clarifies price stability as its primary objective, but it failed to unambiguously increase its independence from political influence. Fitch views political risks as a material constraint on Georgia's ratings. Notwithstanding, improvements in governance since the "Rose Revolution" in 2003, democratic institutions are immature and political instability has increased since November. President Mikheil Saakashvili won a second term in January and his party appears likely to win another majority in parliamentary elections in May. However, there is a risk that instability could persist with potential adverse consequences for investor confidence, capital inflows, economic policy and the credit outlook. Relations with Russia are tense and the risk of a flare up in the frozen conflict with the secessionist territories of Abkhazia and South Ossetia weigh on the ratings. ============= I R E L A N D ============= SMURFIT KAPPA: Irish Unit Inks Software Deal with VantagePoint -------------------------------------------------------------- Smurfit Kappa Ireland, a part of Smurfit Kappa Group plc, has signed a contract to implement Business VantagePoint(TM), VantagePoint Systems Inc.'s flagship business software for the corrugated packaging industry, in their operations. Business VantagePoint software will be implemented at Smurfit Kappa's three corrugated plants and seven specialty packaging plants in Ireland. Business VantagePoint(TM) is an estimate-to-cash business software solution for multi-plant packaging manufacturing operations, and provides functionality in the areas of estimating, order processing, inventory, manufacturing control, job costing, shipping and invoicing. Smurfit Kappa will utilize Business VantagePoint software together with Planning & Scheduling software from OM Partners and ArtiosCAD design software, as a part of a best-of-breed software approach. All three software solutions will be seamlessly integrated, with information being passed between the applications automatically. "We are impressed with the way Business VantagePoint displays open order data, and the flexibility to move jobs between plants. The software provides us with full visibility of all orders being processed in all plants, across the whole organization, and allows us to establish optimum order routing for cost savings and maximum efficiency," Paul Cash, head of Information Technology for Smurfit Kappa Ireland, commented. "Business VantagePoint will enable us to run our operations as efficiently as possible allowing us to focus on our mission of creating value to our customers," John O'Loughlin, CEO of Smurfit Kappa Ireland, stated. "We first started working with Smurfit Kappa Ireland a year ago, and quickly realized that their business offered an exciting opportunity; they are focused on delivering the perfect order to their customers, while operating ten business units in two countries. We look forward to implementing Business VantagePoint in Smurfit Kappa's operations over the next 12 months," Peter Dobell, vice President, CTO of VantagePoint, commented. About Smurfit Kappa Group Headquartered in Dublin, Ireland, Smurfit Kappa -- http://www.smurfitkappa.com/-- is a paper based packaging company with leading position in Europe and Latin America. Smurfit Kappa operates in over 30 countries (22 in Europe) with more than 40,000 employees. It's products include containerboard, solid board, corrugated and solid board packaging, graphic board, sack paper and paper sacks. * * * As of Feb. 18, 2008, Smurfit Kappa Group plc carries Moody's long-term corporate family rating of 'Ba3' with stable outlook. Standard & Poor's gave SKG 'BB-' rating for long-term foreign issuer credit and 'BB-' rating on long-term local issuer credit with stable outlook. ========= I T A L Y ========= ALITALIA SPA: Mediobanca, Eni Deny Report on Possible Offer ----------------------------------------------------------- Mediobanca S.p.A. and Eni S.p.A. denied local reports that they will join an Italian consortium that will submit a counteroffer for the government's 49.9% stake in Alitalia S.p.A., Alessandra Migliaccio writes for Bloomberg News. Mediobanca and Eni both told Bloomberg News that they have no interest in acquiring a stake in Alitalia. Former Prime Minister Silvio Berlusconi, denied mentioning Mediobanca and Eni as possible consortium members, stressing that "these are only journalistic suppositions." Mr. Berlusconi, expected to return to his post following the upcoming election, has vowed to reject Air France's offer, saying he prefers an Italian buyer for Alitalia. AirOne S.p.A. declared March 21, 2008, it will submit an alternative bid for Alitalia in three weeks, stressing that it needs more time to draft a proposal since it was excluded from conducting due diligence on the national carrier. Deutsche Lufthansa AG may join AirOne in the counteroffer. As recently reported in the TCR-Europe, Alitalia and the present government have accepted Air France-KLM SA's binding offer, subject to several conditions including union approval. Air France, so far, has yet to convince the unions to accept its business plan, which foresees around 2,100 job cuts. 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 company has operations in Argentina. 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: Mulls Extending Union Talks Period Beyond Today ------------------------------------------------------------- Alitalia S.p.A. Board of Directors acknowledges the progress of the trade unions negotiations following the meetings held on March 18, 20 and 25, 2008. To date, those meetings have not led to identify solutions shared by the trade unions, even though those meetings highlighted a clear availability to further discuss the key aspects. Air France-KLM have indicated its availability to postpone the terms of the effectiveness clauses provided for by the framework agreement, including the deadline of March 31, 2008. Trade union organizations and the professional associations for the sector have both expressed the need for more time to evaluate and to carry out required consultations. In this context, the Board of Directors decided to initiate the required in-depth legal-financial analysis, and decided to convene again shortly to take the consequent decisions. 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 company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. =================== K A Z A K H S T A N =================== AUTO SPETS: Creditors Must File Claims by May 7 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Auto Spets Contract insolvent. Creditors have until May 7, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan KOSTANAI TRANSIT: Claims Deadline Slated for May 14 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Kostanai Transit Service insolvent. Creditors have until May 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan MELINVEST LLP: Claims Filing Period Ends May 14 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Commercial-Manufacturing Company Melinvest insolvent. Creditors have until May 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan SEMEY SU: Creditors' Claims Due on May 9 ---------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared CJSC Semey Su insolvent on Feb. 14, 2008, Creditors have until May 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Ibraev Str. 156-51 Semey East Kazakhstan Kazakhstan SUN GRAIN: Claims Registration Ends May 7 ----------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Sun Grain insolvent. Creditors have until May 7, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 VLAD ZERNO: Claims Deadline Slated for May 14 --------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Vlad Zerno insolvent. Creditors have until May 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 =================== K Y R G Y Z S T A N =================== BISHKEK AIR: Creditors Must File Claims by April 25 --------------------------------------------------- LLC Bishkek Air has declared insolvency. Creditors have until April 25, 2008 to submit written proofs of claim. Inquiries can be addressed to (0-543) 86-43-45. ULTRAS-TRUCK LLC: Claims Filing Period Ends April 25 ---------------------------------------------------- LLC Ultras-Truck has declared insolvency. Creditors have until April 25, 2008 to submit written proofs of claim to: LLC Ultras-Truck Gorodok Stroitelei, 2-48 Bishkek Kyrgyzstan Tel: (+996 312) 26-30-61 ===================== N E T H E R L A N D S ===================== X5 RETAIL: Convening Shareholders Over Formata Financing Details ---------------------------------------------------------------- X5 Retail Group N.V.'s Supervisory Board and Management Board have decided to convene an Extraordinary General Meeting of Shareholders on April 21, 2008, in Amsterdam, the Netherlands. The record date for the EGM is March 28, 2008. The purpose of the EGM is to authorize the Company's Supervisory Board and Management Board to make certain decisions with respect to financing of the potential acquisition of Formata Holding B.V. X5 Retail is proceeding as planned with the due diligence on Formata and will announce its decision on the acquisition as soon as such a decision is approved by the Supervisory Board, subject to the Company's satisfaction with the results of the due diligence. The financing structure for the potential acquisition of Formata is still being determined, with different forms of equity financing currently under consideration, including the possibility of granting existing GDR holders rights to subscribe for additional GDRs on a pro rata pre-emptive basis (subject to applicable legal requirements). To make possible equity financing options technically feasible, the Supervisory Board requires extended authority to approve the issuance of shares and the granting of rights to subscribe for shares. Should the Company decide to proceed with the acquisition, it anticipates to raise equity financing of around US$1 billion in the first half of this year. Additionally, as the Call Option Agreement provides that, at the Company's discretion, up to 25% of the Option Price can be satisfied by newly issued X5 Retail Group shares, the Supervisory Board needs to have authorization of the EGM on the right to approve such an in kind share payment and respective share issuance. If X5 Retail Group were to select the Share Consideration option, it intends to exclude the pre-emptive rights in respect of the related share issuance. In connection, the Company also seeks authorisation from the EGM for the Supervisory Board to approve the exclusion or limitation of the pre-emptive right with respect to a contribution in kind. As provided in the Call Option Agreement, the Share Consideration is based on the volume weighted average price of an X5 ordinary share for the 30-day period immediately prior to the date of the Option Notice. The Option Notice was sent to Formata shareholders on Jan. 2 2008. It should be noted that the Company intends to use the Share Consideration option only if it is more advantageous from a financial perspective than a cash payment. Thus the convocation of the EGM is a technical step to prepare for the potential acquisition of Formata. These authorizations for the Supervisory Board will ensure that the implied capital raising can be tailored to meet the Company's needs to fund the acquisition and that the Company has sufficient flexibility in deciding on the funding format, including an option to issue shares on a pre-emptive basis, among other financing possibilities. About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. (LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm for the group of companies that operate retail grocery stores. The main activity of the company is the development and operation of grocery retail stores. The company operated Pyaterochka and Perekrestok retail chains in Russia, including Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Ekaterinburg and Kiev, Ukraine. * * * As of March 6, 2008, X5 Retail Group N.V. carries a B1 Corporate Family Rating from Moody's Investors Service. Moody's said the outlook is positive. X5 Retail and its subsidiaries also carries a 'BB-' long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. X5 RETAIL: Completes Syndication of US$1 Billion Loan ----------------------------------------------------- X5 Retail Group N.V. disclosed Thursday that syndication for the US$1,100,000,000 3 year Term Loan Facility was successfully completed on terms announced prior to the launch. The syndication was launched by BNP Paribas, CALYON, HSBC Bank plc, ING Bank N.V. and Raiffeisen Zentralbank Osterreich AG, each an "Initial Mandated Lead Arranger and Bookrunner, on Jan. 25, 2008. The Facility was fully pre-funded by the Bookrunners in December 2007. Societe Generale and Unicredit joined the transaction as Mandated Lead Arrangers. In total, 12 banks joined the Facility. As the company stated on Dec. 18, 2007, the Facility pays a margin of 225 bps p.a. over LIBOR out of the box for the first year. Subsequently, the margin will move in accordance with a Net Debt/EBITDA grid with a maximum margin at the top of the grid of 200 bps p.a. over LIBOR. CFO of X5 Retail Group Evgeny Kornilov commented: "The successful completion of this syndication in the current market environment reflects appreciation of X5's business strategy and healthy financial position by established international financial institutions. We are convinced that our strong growth prospects and prudent financial management will ensure the Company's stable access to debt financing irrespective of market conditions. We are comfortable with our current debt structure where over 80% of existing obligations mature in more than two and a half years. Moreover, with US$260 million already available to the Company in fully committed credit lines, X5 Retail Group confidently continues to invest in its future growth and unrivalled market leadership." About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. (LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm for the group of companies that operate retail grocery stores. The main activity of the company is the development and operation of grocery retail stores. The company operated Pyaterochka and Perekrestok retail chains in Russia, including Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Ekaterinburg and Kiev, Ukraine. * * * As of March 6, 2008, X5 Retail Group N.V. carries a B1 Corporate Family Rating from Moody's Investors Service. Moody's said the outlook is positive. X5 Retail and its subsidiaries also carries a 'BB-' long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. =========== N O R W A Y =========== FRONTIER DRILLING: S&P Puts B- Rating on Negative CreditWatch ------------------------------------------------------------- Standard & Poor's Ratings Service placed the ratings, including the 'B-' corporate credit rating, on marine contract drilling company Frontier Drilling ASA on CreditWatch with negative implications. "The CreditWatch listing reflects concern about the company's ability to fund its planned 2008 capital spending program," said Standard & Poor's credit analyst Jeffrey B. Morrison. Given project cost overruns beyond initial estimates and weaker- than-expected cash flow from operations, S&P believes that Frontier Drilling will need to raise additional capital over the near term, a risk heightened by a currently turbulent credit market. Costs of upgrading and maintaining the company's drillships and delays in recontracting in early 2008 will likely cause cash flow from operations to fall short of projections. If the company is unable to secure additional financing by June 2008 and successfully recontract its Southeast Asian unit at a favorable dayrate, S&P would likely downgrade Frontier Drilling to 'CCC+' and assign a developing outlook. S&P is aware that Frontier Drilling's private-equity sponsors have made equity infusions in the past to meet the company's capital needs in funding both internal and growth initiatives. Although we have not yet received Frontier Drilling's audited financial statements for fiscal 2007, S&P notes that the company in March drew down the full amount on its US$60 million senior secured revolving credit facility. =========== R U S S I A =========== COBALT LLC: Proofs of Claim Deadline Set May 15 ----------------------------------------------- Creditors of LLC Cobalt have until May 15, 2008, to submit proofs of claim to: Y. Akulshin Insolvency Manager Litovskaya Str. 12a 305023 Kursk Russia The Arbitration Court of Kursk has commenced bankruptcy proceedings against the company after declaring it insolvent. The case is docketed as ?35-4622/07 g. The Court is located at: The Arbitration Court of Kursk K. Marksa Str. 25 305004 Kursk Russia The Debtor can be reached at: LLC Cobalt XXI Partsjezda Str. 9 Zheleznogorsk 307170 Kursk Russia COMSTAR-UNITED: RTC Unit Elects Board of Directors -------------------------------------------------- The extraordinary general shareholders meeting of JSC Regional Technical Center, a unit of Comstar - United TeleSystems JSC, has approved new members of Board of Directors. These members were elected to the Board of Directors: * Kirill Andreychenko, Director for corporate governance and legal issues, JSC Comstar-UTS; * Denis Badretdinov, Director of the network strategic development Department, JSC Comstar-UTS; * Dmitri Karmanov, HR Director, JSC Comstar-UTS; * Victor Koresh, Vice president for regional development, JSC COMSTAR-UTS; * Anatoly Krainev, Director of Department for management and business development of Subsidiaries of JSC Comstar-UTS; * Oleg Filippov, Director of research and analytics Department, JSC Comstar-UTS; * Vladislav Yablonskikh, Director of planning and management accounts Department, JSC Comstar-UTS. Mr. V. Koresh was elected Chairman of Board. About Comstar-UTS Headquartered in Moscow, Russia, Comstar-UTS JSC -- http://www.comstar-uts.com/en/-- provides fixed line telecommunication services in the Moscow metropolitan area with a population of over 10 million, and to five 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 March 27, 2008, 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. INVEST-DOM-STROY LLC: Proofs of Claim Deadline Set May 15 --------------------------------------------------------- Creditors of LLC Invest-Dom-Stroy have until May 15, 2008, to submit proofs of claim to: A. Razmakhova Insolvency Manager Tsiolkovskogo Str. 33/19 248000 Kaluga Russia The Arbitration Court of Kaluga has commenced bankruptcy proceedings against the company after declaring it insolvent. The case is docketed as ?23-2017/07B-7-113. The Court is located at: The Arbitration Court of Kaluga Staryj Torg Square 4 Kaluga Russia The Debtor can be reached at: LLC Invest-Dom-Stroy Darvina Str. 2A Kaluga Russia KSM CJSC: Proofs of Claim Deadline Set May 15 --------------------------------------------- Creditors of CJSC KSM have until May 15, 2008, to submit proofs of claim to: E. Portnova Insolvency Manager Post User Box 964 460001 Orenburg Russia The Arbitration Court of Orenburg has commenced bankruptcy proceedings against the company after declaring it insolvent. The case is docketed as ?47-8856/07-14 GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: CJSC KSM Stroiteley Str. 44 462401 Orsk Russia MOSALSKIY CHEESE: Proofs of Claim Deadline Set May 15 ----------------------------------------------------- Creditors of OJSC Mosalskiy Cheese have until May 15, 2008, to submit proofs of claim to: A. Leonov Insolvency Manager Revolyutsii Str. 56A Mosalsk 249930 Kaluga Russia The Arbitration Court of Kaluga has commenced bankruptcy proceedings against the company after declaring it insolvent. The case is docketed as ?23-2337/07B-17-156-8-133. The Court is located at: The Arbitration Court of Kaluga Staryj Torg Square 4 Kaluga Russia The Debtor can be reached at: OJSC Mosalskiy Cheese Revolyutsii Str. 56A Mosalsk 249930 Kaluga Russia NEGA S: Creditors Must File Claims by May 15 -------------------------------------------- Creditors of LLC Nega S have until May 15, 2008, to submit proofs of claim to: S. Garloeva Temporary Insolvency Manager Vidanskaya Str. 15V Petrozavodsk 185031 Kareliya Republic Russia The Arbitration Court of Kareliya Republic has commenced bankruptcy supervision procedure on the company. The case is docketed as ?26-5156/2007. The Debtor can be reached at: LLC Nega S Apartment 310 40 Let VLKSM Str. 19 Sortavala 186792 Kareliya Republic Russia PMK-23 OJSC: Proofs of Claim Deadline Set April 15 -------------------------------------------------- Creditors of OJSC PMK-23 have until April 15, 2008, to submit proofs of claim to: A. Popov Insolvency Manager Post User Box 345 115230 Moscow Russia The Arbitration Court of Vladimir will convene on Feb. 13, 2009, to hear bankruptcy proceedings against the company. The case is docketed as ?41-K2-9033/07. The Court is located at: The Arbitration Court of Vladimir Oktyabrskiy Pr. 14 600025 Vladimir Russia The Debtor can be reached at: OJSC PMK-23 Kasimovskoe Shosse 41a Egoryevsk Russia ROSNEFT OIL: Investing RUR65 Billion to Hike Gas Refining Rate -------------------------------------------------------------- OAO Rosneft Oil Co. plans to invest RUR65 billion in associated petroleum gas processing to increase its refining rate to 95% by 2011, RIA Novosti reports, citing CEO Sergei Bogdanchikov. Mr. Bogdanchikov told RIA Novosti that Rosneft will construct five electric power plants to process a third of associated petroleum gas by 2011. Rosneft will send another third of the associated petroleum gas to refining facilities for conversion into chemical products and stripped gas, which will be supplied to OAO Gazprom. The remaining third will be used to maintain stratum pressure to boost deposit yields, Mr. Bogdanchikov added to RIA Novosti. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines, and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * As of Feb. 7, 2008, OAO Rosneft Oil Co. carries a BB+ long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is positive. RUSSIAN FACTORING: Fitch Puts RUR500 Million Facility at BB ----------------------------------------------------------- Fitch Ratings has today assigned final ratings to Russian Factoring No. 1 S.A.'s debt obligations as: -- RUB11.25bn senior asset-backed notes: 'BBB'; Outlook Stable -- RUB0.5bn mezzanine facility: 'BB'; Outlook Stable At the same time Fitch has confirmed the ratings in response to an increase of the balance of the senior asset-backed notes. This follows a request by the originator to increase the funding provided by the originator Eurokommerz FC to meet further asset growth. The total amount Eurokommerz FC advanced was approximately RUB 26bn at 31 January 2008 and RUB 27.2bn at Feb. 29, 2008. As such, the securitisation programme is now approximately 43% of total advanced amounts. In line with further asset growth, Fitch expects this ratio to shrink over time. The notional amount of the senior asset-backed notes has been increased by RUB3.75bn to RUB11.25bn from RUB7.5bn. The subordinated loan, which provides credit enhancement required by the deal's documentation, has also been increased to support the ratings. The final ratings address the timely and full payment of principal and interest. The ratings exclude any claim by the lenders to receive prepayment charges and interest payments equal to a step-up margin. Fitch will monitor the transaction on a regular basis and as warranted by events. Its structured finance performance analytics team ensures that the assigned ratings remain, in the agency's view, an appropriate reflection of the issued notes' credit risk. SIB-STROY-SERVICE: Proofs of Claim Deadline Set May 15 ------------------------------------------------------ The Arbitration Court of Khakasiya Republic has commenced bankruptcy proceedings against the company after declaring it insolvent. The case is docketed as ?74-1946/2007. Creditors of LLC Sib-Stroy-Service have until May 15, 2008, to submit proofs of claim to: The Debtor can be reached at: LLC Sib-Stroy-Service Chertygasheva Str. 150-34. 655017 Abakan Russia V. Miroshnik Insolvency Manager Post User Box 2455 660018 Krasnoyarsk Russia SITRONICS JSC: Buys Melrose Holding's 36% Kvazar-Micro Stake ------------------------------------------------------------ JSC Sitronics acquired a 36% stake in Kvazar-Micro from Melrose Holding Company for US$116.9 million. The acquisition was financed by a combination of cash and Sitronics' stock. As a result of the transaction, SITRONICS now owns an 87% stake in Kvazar-Micro. Melrose Holding, now has a 3.07% stake in Sitronics. Kvazar-Micro plans to acquire the remaining 13% from Melrose Holding within two years. Headquartered in Moscow, Russia, JSC Sitronics (LSE: SITR) -- http://www.sitronics.com/-- provides telecommunications solutions, IT solutions and microelectronic solutions in the CIS region with a rapidly growing presence in other EEMEA markets. Sistema controls the company. * * * As of Feb. 2, 2008, JSC Sitronics still holds Fitch Ratings' Long-term Issuer Default Rating of 'B-' with a Stable Outlook. SPROS-SERVICE LLC: Creditors Must File Claims by April 15 --------------------------------------------------------- Creditors of LLC Spros-Service have until April 15, 2008, to submit proofs of claim to: S. Pogosyan Temporary Insolvency Manager Kolkhoznaya Str. 351 352120 Tikhoretsk Russia The Arbitration Court of Krasnodar has commenced bankruptcy supervision procedure on the company. The case is docketed as ?-32-22180/2007-43/519-B. The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: LLC Spros-Service Partizanskaya Str. 18/3 Lazarevskiy Sochi Russia TSNA CJSC: Proofs of Claim Deadline Set May 15 ---------------------------------------------- Creditors of CJSC TSNA have until May 15, 2008, to submit proofs of claim to: V. Kuzin Insolvency Manager Sovetskaya Str. 118 Tambov Russia The Arbitration Court of Tambov will convene on Feb. 16, 2009, to hear bankruptcy proceedings against the company. The case is docketed as ?64-3802/07-21. The Court is located at: The Arbitration Court of Tambov Penzenskaya Str. 67/12 392020 Tambov Russia The Debtor can be reached at: CJSC TSNA Rasskazovo Tambov Russia WIMM-BILL-DANN FOODS: Commences Production at Omsk Site ------------------------------------------------------- Wimm-Bill-Dann Foods OJSC has commenced production of Agusha baby food and Imunele functional products in Omsk Region. The baby-food production facility is located on the territory of Wimm-Bill-Dann's Manros-M factory, the largest milk-processing plant in Omsk Region. The new production complex has its own reception point for raw- milk deliveries, a warehouse for finished products and three production lines by Tetra Pak, Hassia and Ave. It is the largest production site for dairy products for children in Russia located east of the Ural Mountains. Its designed production capacity is over than 50 tons per day. The total investment in the facility amounted to US$14 million. The full range of baby foods under the Agusha brand as well as Imunele functional products will be manufactured at the Omsk plant. Manros-M will supply the products to all of Russia's regions from the Urals to the Far East. "The launch of production of the baby food and Imunele at Omsk is a strategic step forward in the development of the company," said Dmitry Mironchikov, who heads Western Siberia for Wimm- Bill-Dann. "We are seriously strengthening our presence in one of the fastest growing segments of the food market in Siberia and making it far simpler to supply the Urals, Eastern-Siberian and Far-East regions." About Wimm-Bill-Dann Headquartered in Moscow, Russia, Wimm-Bill-Dann Foods OJSC -- http://www.wbd.com/-- manufactures dairy and juice products. It distributes products through a variety of channels, including independent distributors and wholesalers, supermarket chains, small- and medium-sized grocery stores, open-air markets and restaurants. * * * As of March 27, 2008, Wimm-Bill-Dann Foods OJSC carries Ba3 Corporate Family, Senior Unsecured Debt, and Probability-of- Default ratings from Moody's Investors Service, which said the outlook is stable. The company also carries BB- Long-Term Local and Foreign Issuer Credit ratings from Standard & Poor's, which said the outlook is stable. X5 RETAIL: Convening Shareholders Over Formata Financing Details ---------------------------------------------------------------- X5 Retail Group N.V.'s Supervisory Board and Management Board have decided to convene an Extraordinary General Meeting of Shareholders on April 21, 2008, in Amsterdam, the Netherlands. The record date for the EGM is March 28, 2008. The purpose of the EGM is to authorize the Company's Supervisory Board and Management Board to make certain decisions with respect to financing of the potential acquisition of Formata Holding B.V. X5 Retail is proceeding as planned with the due diligence on Formata and will announce its decision on the acquisition as soon as such a decision is approved by the Supervisory Board, subject to the Company's satisfaction with the results of the due diligence. The financing structure for the potential acquisition of Formata is still being determined, with different forms of equity financing currently under consideration, including the possibility of granting existing GDR holders rights to subscribe for additional GDRs on a pro rata pre-emptive basis (subject to applicable legal requirements). To make possible equity financing options technically feasible, the Supervisory Board requires extended authority to approve the issuance of shares and the granting of rights to subscribe for shares. Should the Company decide to proceed with the acquisition, it anticipates to raise equity financing of around US$1 billion in the first half of this year. Additionally, as the Call Option Agreement provides that, at the Company's discretion, up to 25% of the Option Price can be satisfied by newly issued X5 Retail Group shares, the Supervisory Board needs to have authorization of the EGM on the right to approve such an in kind share payment and respective share issuance. If X5 Retail Group were to select the Share Consideration option, it intends to exclude the pre-emptive rights in respect of the related share issuance. In connection, the Company also seeks authorisation from the EGM for the Supervisory Board to approve the exclusion or limitation of the pre-emptive right with respect to a contribution in kind. As provided in the Call Option Agreement, the Share Consideration is based on the volume weighted average price of an X5 ordinary share for the 30-day period immediately prior to the date of the Option Notice. The Option Notice was sent to Formata shareholders on Jan. 2 2008. It should be noted that the Company intends to use the Share Consideration option only if it is more advantageous from a financial perspective than a cash payment. Thus the convocation of the EGM is a technical step to prepare for the potential acquisition of Formata. These authorizations for the Supervisory Board will ensure that the implied capital raising can be tailored to meet the Company's needs to fund the acquisition and that the Company has sufficient flexibility in deciding on the funding format, including an option to issue shares on a pre-emptive basis, among other financing possibilities. About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. -- http://www.x5.ru/en/-- acts as a holding firm for the group of companies that operate retail grocery stores. The main activity of the Company is the development and operation of grocery retail stores. The Company operated Pyaterochka and Perekrestok retail chains in Russia, including Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Ekaterinburg and Kiev, Ukraine. * * * As of March 6, 2008, X5 Retail Group N.V. carries a B1 Corporate Family Rating from Moody's Investors Service. Moody's said the outlook is positive. X5 Retail and its subsidiaries also carries a 'BB-' long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. * S&P Ups Bashkortostan's Long-Term Issuer Credit Rating to BB+ --------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term issuer credit rating on the Russian Republic of Bashkortostan to 'BB+' from 'BB'. The outlook is stable. "The upgrade reflects the republic's sound financial position, which we expect to continue," said Standard & Poor's credit analyst Boris Kopeykin. The rating is still constrained by the republic's low budget predictability and flexibility, due to federal controls; a concentration of major taxpayers in the oil processing and extraction industries; long-term expenditure pressures; and still-low wealth in the international context. These constraints are mitigated by the republic's low debt, strong liquidity, and growing economy. Bashkortostan demonstrates a very prudent approach to debt and liquidity. Tax-supported debt is currently about 10% of total revenues, and S&P does not expect it to exceed a low 15% until 2010. The republic's large cash reserves were about one-half of operating expenditures at year-end 2007. S&P expects Bashkortostan to remain a net creditor, with reserves exceeding debt service at least until 2011. In addition, the republic has liquid assets valued at more than 100% of the budget, including financial assets, industrial enterprises, and real estate. Budgetary performance is likely to deteriorate somewhat in 2009- 2010, but will nevertheless remain sound, with operating surpluses of about 11%-15% of operating revenues and only small deficits after capital expenditures. "We expect Bashkortostan's prudent financial management and gradual economic growth to help the republic maintain sound financial indicators, despite expenditure pressures and the consequent, likely deterioration of balances after capital expenditures," said Mr. Kopeykin. A positive rating action could result from increased visibility in the republic's medium-term reserve- and asset-management strategy, which should confirm our expectations of prudent financial policies, and the creation of a reliable medium-term investment plan, which will lead to noticeably improved infrastructure and wealth levels. In contrast, a negative rating action could result from a more aggressive financial policy, with rapid depletion of cash reserves and a significant deterioration in financial performance to weaker-than-8%-10% of operating balances. Any significant negative economic or intergovernmental developments resulting in a major reduction in revenues -- although S&P does not currently consider this likely -- could also pressure the rating. ========= S P A I N ========= EMPRESAS TDA: Moody's Rates EUR60 Million Series C Notes at Ba3 --------------------------------------------------------------- Moody's Investors Service has assigned the following definitive ratings to the debt issued by Empresas TDA CAM 6, Fondo de Titulizacion de Activos: -- Aaa to the EUR635 million Series A1 notes -- Aaa to the EUR240 million Series A2 notes -- A3 to the EUR65.0 million Series B notes -- Ba3 to the EUR60.0 million Series C notes Empresas TDA CAM 6, Fondo de Titulizaci�n de Activos is the sixth SME transaction carried out by Caja de Ahorros del Mediterr neo (CAM). The portfolio consists of loans to Spanish small-and medium-sized enterprises (SMEs) granted by CAM. In Moody's view, strengths of the transaction include, among others: (1) a strong swap agreement guaranteeing an excess spread of 0.50%; (2) a 6.50% cash reserve, funded up front, providing both liquidity and credit protection to the structure; and (3) a 12-month artificial write-off mechanism. However, weaknesses of this deal include: (1) geographical concentration in the regions of Valencia (44.25%), Murcia (13.45%), Madrid (10.12%), and Catalu�a (10.88%); (2) a high concentration in the Building and Real Estate sector; (3) a significant portion of unsecured loans; and (4) pro-rata amortisation of the notes, which negatively impacts the more senior series. These risks were considered in Moody's quantitative analysis. The definitive portfolio of underlying assets amounts to EUR1,000,000,000 and is composed of 5,690 loans and 4,895 borrowers. The loans have been originated between 1994 and 2007, with a weighted average seasoning of 1.39 years, and a weighted average remaining life of 7.34 years. Around 31% of the outstanding of the portfolio is secured by mortgage guarantee over different types of properties (with a weighted average LTV of 53.23%). According to Moody's, the definitive ratings take into account - - among other factors: (i) an evaluation of the underlying portfolio of loans; (ii) historical performance information; (iii) the swap agreement hedging the interest rate risk; (iv) the credit enhancement provided by the guaranteed excess spread, the cash reserve and the subordination of the notes; and (v) the legal and structural integrity of the transaction. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the Series A1, A2, B and C notes by the legal final maturity. 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 assigned provisional ratings to this transaction on March 14, 2008. Moody's will monitor this transaction on an ongoing basis. SMURFIT KAPPA: Closes Valladolid Recycled Container Board Mill -------------------------------------------------------------- Smurfit Kappa Group plc is implementing further recycled containerboard capacity rationalization as part of its capacity management program. SKG plans to permanently close 130,000 tons of less efficient containerboard capacity. It will also reduce 2008 production by up to 80,000 tonnes through market-related downtime. SKG intends to permanently close its Valladolid recycled containerboard mill in Northern Spain in the second quarter of 2008. The Valladolid mill has an annual capacity of 130,000 tons. The closure will have the effect of reducing recycled capacity by 70,000 tonnes in 2008. The objective is to reduce operating costs and to maximize the continuing efficiency of our mill system. In addition, SKG will take up to 80,000 tons of market-related downtime, the majority of which will be taken during March/April 2008) to optimize the Group's supply-demand balance and to address an increase in inventory levels of recycled containerboard. SKG will continue to review its production capacity, the cost profile of its mills relative to integration requirements, broader market demand and industry inventory levels. The cash cost of these actions is expected to be mitigated through exceptional gains in 2008. Further details of both the cash costs and impairment charges will be provided in SKG's 2008 first quarter results scheduled for release on May 9, 2008. About Smurfit Kappa Group Headquartered in Dublin, Ireland, Smurfit Kappa -- http://www.smurfitkappa.com/-- is a paper based packaging company with leading position in Europe and Latin America. Smurfit Kappa operates in over 30 countries (22 in Europe) with more than 40,000 employees. It's products include containerboard, solid board, corrugated and solid board packaging, graphic board, sack paper and paper sacks. * * * As of Feb. 18, 2008, Smurfit Kappa Group plc carries Moody's long-term corporate family rating of 'Ba3' with stable outlook. Standard & Poor's gave SKG 'BB-' rating for long-term foreign issuer credit and 'BB-' rating on long-term local issuer credit with stable outlook. ===================== S W I T Z E R L A N D ===================== BUROHAUS DES: Creditors' Liquidation Claims Due by April 2 ---------------------------------------------------------- Creditors of JSC Burohaus des SMUV Winterthur have until April 2, 2008, to submit their claims to: Trade Union UNIA Weltpoststrasse 20 3000 Bern 15 Switzerland The Debtor can be reached at: JSC Burohaus des SMUV Winterthur Winterthur ZH Switzerland DIAMOND PURCHASES: Creditors' Liquidation Claims Due by April 2 --------------------------------------------------------------- Creditors of Diamond Purchases Ltd have until April 2, 2008, to submit their claims to: Dr. Andreas Renggli Baarerstrasse 8 6300 Zug Switzerland The Debtor can be reached at: Diamond Purchases Ltd Zug Switzerland GIVABAU JSC: Creditors' Liquidation Claims Due by April 2 --------------------------------------------------------- Creditors of JSC Givabau have until April 2, 2008, to submit their claims to: JSC Givabau Burglistrasse 18 8600 Dubendorf Uster ZH Switzerland GOL LLC: Creditors' Liquidation Claims Due by April 2 ----------------------------------------------------- Creditors of LLC Gol have until April 2, 2008, to submit their claims to: LLC Gol Hohlstrrasse 90 8004 Zurich Switzerland IMMOBILIEN UND: Creditors' Liquidation Claims Due by April 2 ------------------------------------------------------------ Creditors of JSC Immobilien und Verwaltungsgesellschaft Aussersihl have until April 2, 2008, to submit their claims to: Trade Union UNIA Weltpoststrasse 20 3000 Bern 15 Switzerland The Debtor can be reached at: JSC Immobilien und Verwaltungsgesellschaft Aussersihl Zurich Switzerland LATELLANA JSC: Creditors' Liquidation Claims Due by April 3 ----------------------------------------------------------- Creditors of JSC Latellana have until April 3, 2008, to submit their claims to: Stefan Breitenstein Liquidator JSC Treuhand von Flue Baarerstrasse 95 6301 Zug Switzerland The Debtor can be reached at: JSC Latellana Zug Switzerland LIVANI LUXURY: Creditors' Liquidation Claims Due by April 1 ----------------------------------------------------------- Creditors of LIVANI LUXURY GOODS LTD LIAB. CO. have until April 1, 2008, to submit their claims to: Dr. Martin Lenz Elisabethenstrasse 15 Mail box: 430 4010 Basel BS Switzerland The Debtor can be reached at: LIVANI LUXURY GOODS LTD LIAB. CO. Zug Switzerland LOGAD MANAGEMENT: Creditors' Liquidation Claims Due by April 2 -------------------------------------------------------------- Creditors of LLC Logad Management have until April 2, 2008, to submit their claims to: Dr. Marco Balmelli Christen Rickli Partner Mail box 257 4010 Basel BS Switzerland The Debtor can be reached at: LLC Logad Management Muttenz Arlesheim BL Switzerland ORANIA JSC: Creditors' Liquidation Claims Due by April 3 -------------------------------------------------------- Creditors of JSC Orania have until April 3, 2008, to submit their claims to: JSC CONTIGESTION HOLDING Neuve-du-Molard 5 1204 Geneva Switzerland The Debtor can be reached at: JSC Orania Zurich Switzerland PRIMSOL JSC: Creditors' Liquidation Claims Due by April 2 --------------------------------------------------------- Creditors of JSC Primsol have until April 2, 2008, to submit their claims to: Heinz Merz Obergass 8 8260 Stein am Rhein SH Switzerland The Debtor can be reached at: JSC Primsol Rumlang Dielsdorf ZH Switzerland SONIC PLAYGROUND: Creditors' Liquidation Claims Due by April 2 -------------------------------------------------------------- Creditors of LLC SONIC PLAYGROUND have until April 2, 2008, to submit their claims to: LLC SONIC PLAYGROUND Schulhausstrasse 7 5618 Bettwil Muri AG Switzerland ============= U K R A I N E ============= DELTA LLC: Creditors Must File Claims by April 3 ------------------------------------------------ Creditors of LLC Delta (code EDRPOU 30884299) have until April 3, 2008 to submit proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 13, 2008. The case is docketed as B-19/14-08. The Debtor can be reached at: LLC Delta Lenin Avenue 27-A 61072 Kharkov Ukraine FINANCIAL SERVICE: Creditors Must File Claims by April 4 -------------------------------------------------------- Creditors of LLC Financial Service (code EDRPOU 31670503) have until April 4, 2008 to submit proofs of claim to: The Economic Court of Volin Volia Avenue 54-a 43010 Lutsk Volin Ukraine The Economic Court of Volin commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 9, 2008. The case is docketed as 1/159-B. The Debtor can be reached at: LLC Financial Service Rovno Str. 105 Lutsk Volin Ukraine GETMAN LLC: Creditors Must File Claims by April 4 ------------------------------------------------- Creditors of LLC Getman (code EDRPOU 13366912) have until April 4, 2008 to submit proofs of claim to: The Economic Court of Volin Volia Avenue 54-a 43010 Lutsk Volin Ukraine The Economic Court of Volin commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 9, 2008. The case is docketed as 1/158-B. The Debtor can be reached at: LLC Getman Volia Avenue 29/74 Lutsk Volin Ukraine STAYKI CJSC: Creditors Must File Claims by April 4 -------------------------------------------------- Creditors of Stayki CJSC (code EDRPOU 23243863) have until April 4, 2008 to submit proofs of claim to: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 10, 2008. The case is docketed as B 11/452-07. The Debtor can be reached at: Stayki CJSC Stayki Kagarlyk District 09210 Kiev Ukraine SVITANOK-1 LLC: Creditors Must File Claims by April 4 ----------------------------------------------------- Creditors of LLC Svitanok-1 (code EDRPOU 23237348) have until April 4, 2008 to submit proofs of claim to: The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 10, 2008. The case is docketed as B 11/451-07. The Debtor can be reached at: LLC Svitanok-1 Novoselki Kagarlyk District 09223 Kiev Ukraine UKRAINIAN WEST: Creditors Must File Claims by April 3 ----------------------------------------------------- The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 20, 2008. The case is docketed as 43/179. Creditors of LLC Ukrainian West Building (code EDRPOU 32854837) have until April 3, 2008 to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Ukrainian West Building Apartment 272 Sviatoshyn Square 1 03115 Kiev Ukraine ZAPOROZHYE PROJECT-CONSTRUCTOR: Creditors' Claim Due April 3 ------------------------------------------------------------ Creditors of OJSC Zaporozhye Project-Constructor and Technological Institute of Motorcar Industrial Welding (code EDRPOU 00234815) have until April 3, 2008 to submit proofs of claim to: Nikolay Vereschak Liquidator Apartment 16 Constantine Veliky Str. 16 69002 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 18, 2008. The case is docketed as 19/11/08. The Court is located at: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: OJSC Zaporozhye Project-Constructor and Technological Institute of Motorcar Industrial Welding Metallurgov Avenue 30 69006 Zaporozhje Ukraine * Moody's Puts Ratings on 22 Banks Under Review and May Upgrade --------------------------------------------------------------- Moody's Investors Service has placed the B2 long-term foreign- currency deposit ratings of twenty-two Ukrainian banks on review for possible upgrade. The ratings of foreign currency debt instruments issued by six Ukrainian have also been placed on review for possible upgrade. This rating action has been triggered by the review for possible upgrade of the B1 local- and foreign-currency bond ratings of the Ukrainian government and Ukraine's B2 country ceiling for foreign-currency deposits announced Friday. Ukraine's Ba3 country ceiling for foreign-currency bonds was also placed on review for possible upgrade, whilst the A3 country ceilings for local-currency bonds and the Baa1 country ceiling for local- currency deposits were affirmed with a stable outlook. Short- term ratings remained at Non-Prime. The only Ukrainian bank ratings that were placed on review for possible upgrade were those whose foreign-currency deposit ratings are currently constrained by the B2 country ceiling for foreign-currency deposits. Specifically, the B2 long-term foreign-currency deposit ratings of these banks were placed on review for possible upgrade: -- Alfa Bank Ukraine -- Bank Finance and Credit -- Bank Nadra -- Bank NRB -- Calyon Bank Ukraine -- First Ukrainian International Bank -- Forum Bank -- Index-Bank -- ING Bank Ukraine -- Kreditprombank -- OTP Bank Ukraine -- Pivdennyi Bank -- Pravex-Bank -- Privatbank Commercial Bank -- Prominvestbank -- Raiffeisen Bank Aval -- Savings Bank of Ukraine -- Swedbank Invest -- Swedbank OJSC ( former Tas-Kommerzbank) -- Ukreximbank -- Ukrsibbank -- Ukrsotsbank Also, the long-term foreign currency debt ratings of these banks were placed on review for possible upgrade: -- Forum Bank -- the Ba3 long-term foreign currency senior unsecured debt rating -- Ukreximbank -- the Ba2 long-term foreign currency senior unsecured debt ratings -- Privatbank -- the Ba3 long-term foreign currency subordinated debt rating -- Ukrsibbank -- the Ba2 long-term foreign currency senior unsecured debt rating -- Savings Bank of Ukraine -- the Ba2 long-term foreign currency senior unsecured debt rating -- Ukrsotsbank - the Ba2 long-term foreign currency senior unsecured debt rating =========================== U N I T E D K I N G D O M =========================== ABITIBIBOWATER INC: Canadian Unit Has going Concern Doubt --------------------------------------------------------- AbitibiBowater Inc. disclosed in its 2007 annual report that its wholly owned subsidiary, Abitibi-Consolidated Inc. "is currently experiencing a liquidity shortfall and liquidity problems and there is substantial doubt about Abitibi's ability to continue as a going concern." The company's independent auditor, PricewaterhouseCoopers LLP in Montreal, Quebec, Canada, said, "In the United States, reporting standards for auditors require the addition of an explanatory paragraph (following the opinion paragraph) when the financial statements are affected by conditions and events that cast substantial doubt on the company's ability to continue as a going concern." PwC further said, "Our report to the shareholders dated March 21, 2008, is expressed in accordance with Canadian reporting standards which do not permit a reference to such events and conditions in the auditor's report when these are adequately disclosed in the financial statements." Abitibi-Consolidated Abitibi-Consolidated is currently experiencing a liquidity shortfall and faces significant near-term liquidity challenges. For the year ended Dec. 31, 2007, Abitibi reported a net loss of CDN$714 million, negative cash flows from operating activities of CDN$468 million and reported an accumulated deficit of CDN$1.591 billion as at Dec. 31, 2007. At Dec. 31, 2007, Abitibi-Consolidated's balance sheet showed CDN$6.572 billion in total assets, CDN$5.026 billion in total liabilities, and CDN$1.546 billion in total stockholders' equity. Abitibi's balance sheet at Dec. 31, 2007, showed strained liquidity with CDN$1.009 billion in total current assets available to pay CDN$1.416 billion in total current liabilities. Abitibi has a total of $346 million of long-term debt that matures in 2008: -- $196 million principal amount of its 6.95% Notes due April 1, 2008, and -- $150 million principal amount of 5.25% Notes due June 20, 2008, issued by Abitibi-Consolidated Company of Canada, a wholly owned subsidiary of Abitibi. Abitibi also has revolving credit facilities with commitments totalling $710 million maturing in the fourth quarter of 2008. None of these debts have yet been refinanced. These circumstances lend substantial doubt as to the ability of Abitibi to meet its obligations as they come due and, accordingly, substantial doubt as to the appropriateness of the use of accounting principles applicable to a going concern. To address these near-term liquidity challenges, Abitibi, and its parent company, AbitibiBowater Inc., have developed a refinancing plan to address upcoming debt maturities and general liquidity needs designed to enable Abitibi to repay the $346 million due in April and June 2008 and to repay all its maturities due in 2009, while continuing to fund Abitibi's operations, debt service and capital expenditures, so it can continue as a going concern. This refinancing plan is expected to consist of: -- a $200 million to $300 million of new senior unsecured exchange notes due 2010; -- up to $450 million of a new 364-day senior secured term loan secured by substantially all of Abitibi's assets other than fixed assets; -- approximately $400 million of new senior secured notes or a term loan due 2011 secured by fixed assets; and -- $200 million to $300 million of new convertible notes of AbitibiBowater. The current state of the credit markets is a significant impediment to securing the necessary financing for Abitibi. Amended 2007 Annual Report AbitibiBowater Inc. filed on March 20, 2008, an amended annual report on Form 10-K for the fiscal year ended Dec. 31, 2007, that was originally filed on March 17, 2008. for the purpose of making minor revisions to -- insert the name and electronic signature of the Independent Registered Accounting Firm, and -- make certain minor edits and conforming changes, including changes to its Feb. 29, 2008, cash balance disclosures. In addition, AbitibiBowater is also including as exhibits to this Amendment the certifications required pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. AbitibiBowater Financials For the year ended Dec. 31, 2007, AbitibiBowater posted a $490 million net loss on $3.876 billion of sales as compared with a $138 million net loss on $3.530 billion of sales for the same period in 2006. At Dec. 31, 2007, AbitibiBowater's balance sheet showed $10.319 billion in total assets, $8.420 billion in total liabilities, and $1.899 in total stockholders' equity. AbitibiBowater's balance sheet at Dec. 31, 2007, showed strained liquidity with $2.142 billion in total current assets available to pay $2.178 billion in total current liabilities. Full-text copies are available for free at: -- 2007 annual report of AbitibiBowater Inc. http://ResearchArchives.com/t/s?2983 -- 2007 amended 2007 annual report of AbitibiBowater Inc. http://ResearchArchives.com/t/s?2984 -- audited financial statements of Abitibi-Consolidated Inc. http://ResearchArchives.com/t/s?2985 About AbitibiBowater Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi- Consolidated Inc. and Bowater Incorporated became subsidiaries of AbitibiBowater. The company produces a wide range of newsprint, commercial printing papers, market pulp and wood products and markets these products to more than 90 countries. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. * * * As reported in the Troubled Company Reporter-Europe on March 27, 2008, Moody's Investors Service assigned a B1 rating to the proposed new US$450 million secured term loan at Abitibi- Consolidate Inc.'s subsidiary Abitibi-Consolidated Company of Canada. At the same time, Moody's affirmed Abitibi's corporate family rating of Caa1, the probability-of-default rating of Caa3, the senior unsecured ratings of Caa2 and the B1 rating assigned to the new US$415 million secured notes due 2011. In addition, Abitibi's speculative grade liquidity rating was affirmed at SGL-4 and the rating outlook remains negative. At the same time, Standard & Poor's Ratings Services assigned its issue and recovery ratings to Abitibi-Consolidated Co. of Canada's proposed US$415 million senior secured notes. ACCC is a subsidiary of Abitibi-Consolidated Inc. (B-/Watch Neg/--). S&P assigned a 'B+' issue-level rating to the notes (two notches above the corporate credit rating on Abitibi-Consolidated), with a recovery rating of '1', indicating the expectation for a very high (90%-100%) recovery in the event of a payment default. As reported in the Troubled Company Reporter-Europe on March 12, 2008, Fitch Ratings downgraded the debt of Abitibi-Consolidated Inc., (a subsidiary of AbitibiBowater Inc., as: Issuer Default Rating to 'CC' from 'CCC'; Senior unsecured debt to 'CC/RR4 from 'CCC/RR4'; and Secured revolver to 'CCC-/RR3' from 'CCC+/RR3'. The ratings remain on Rating Watch Negative. Fitch also said that the ratings of parent AbitibiBowater Inc.'s CCC Issuer Default Rating and Bowater Inc.'s CCC issuer Default Rating remain unchanged and on Watch Negative. ABITIBIBOWATER INC: Disclosed Preliminary Results of Offer ---------------------------------------------------------- AbitibiBowater Inc. said Thursday that the withdrawal rights of noteholders in the exchange offers by Abitibi-Consolidated Company of Canada, an indirect subsidiary of AbitibiBowater, expired at 5:00 p.m. New York City time, on March 27, 2008. These exchange offers are for the 6.95% Senior Notes due 2008, 5.25% Senior Notes due 2008 and 7.875% Senior Notes due 2009. As of the withdraw deadline, approximately 89.3% of the outstanding 6.95% Senior Notes, 91.8% of the outstanding 5.25% Senior Notes and 93.2% of the outstanding 7.875% Senior Notes had been validly tendered in the exchange offers. Based on these preliminary results, ACCC has elected to waive the minimum tender condition with respect to the exchange offers. The exchange offers expire at 12:00 midnight, New York City time, on April 4, 2008. The exchange offers are being made only to qualified institutional buyers and institutional accredited investors inside the United States and to certain non-U.S. investors located outside the United States. About AbitibiBowater Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi- Consolidated Inc. and Bowater Incorporated became subsidiaries of AbitibiBowater. The company produces a wide range of newsprint, commercial printing papers, market pulp and wood products and markets these products to more than 90 countries. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. * * * As reported in the Troubled Company Reporter-Europe on March 27, 2008, Moody's Investors Service assigned a B1 rating to the proposed new US$450 million secured term loan at Abitibi- Consolidate Inc.'s subsidiary Abitibi-Consolidated Company of Canada. At the same time, Moody's affirmed Abitibi's corporate family rating of Caa1, the probability-of-default rating of Caa3, the senior unsecured ratings of Caa2 and the B1 rating assigned to the new US$415 million secured notes due 2011. In addition, Abitibi's speculative grade liquidity rating was affirmed at SGL-4 and the rating outlook remains negative. At the same time, Standard & Poor's Ratings Services assigned its issue and recovery ratings to Abitibi-Consolidated Co. of Canada's proposed US$415 million senior secured notes. ACCC is a subsidiary of Abitibi-Consolidated Inc. (B-/Watch Neg/--). S&P assigned a 'B+' issue-level rating to the notes (two notches above the corporate credit rating on Abitibi-Consolidated), with a recovery rating of '1', indicating the expectation for a very high (90%-100%) recovery in the event of a payment default. As reported in the Troubled Company Reporter-Europe on March 12, 2008, Fitch Ratings downgraded the debt of Abitibi-Consolidated Inc., (a subsidiary of AbitibiBowater Inc., as: Issuer Default Rating to 'CC' from 'CCC'; Senior unsecured debt to 'CC/RR4 from 'CCC/RR4'; and Secured revolver to 'CCC-/RR3' from 'CCC+/RR3'. The ratings remain on Rating Watch Negative. Fitch also said that the ratings of parent AbitibiBowater Inc.'s CCC Issuer Default Rating and Bowater Inc.'s CCC issuer Default Rating remain unchanged and on Watch Negative. ABITIBIBOWATER INC: Extends Exchange Offer's Withdrawal Deadline ---------------------------------------------------------------- AbitibiBowater Inc. disclosed that Abitibi-Consolidated Company of Canada, an indirect subsidiary of AbitibiBowater, has extended the withdrawal deadline for its exchange offers for the 6.95% Senior Notes due 2008, the 5.25% Senior Notes due 2008 and the 7.875% Senior Notes due 2009. The withdrawal deadline for the exchange offers has been extended until 5:00 p.m., New York City time, on March 27, 2008. The withdrawal deadline had been schedule to expire on March 26, 2008. Neither the consent payment deadline nor the expiration date for the exchange offers has been modified and the exchange offers will expire at 12:00 midnight, New York City time, on April 4, 2008. The exchange offers are being made only to qualified institutional buyers and institutional accredited investors inside the United States and to certain non-U.S. investors located outside the United States. About AbitibiBowater Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi- Consolidated Inc. and Bowater Incorporated became subsidiaries of AbitibiBowater. The company produces a wide range of newsprint, commercial printing papers, market pulp and wood products and markets these products to more than 90 countries. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. * * * As reported in the Troubled Company Reporter-Europe on March 27, 2008, Moody's Investors Service assigned a B1 rating to the proposed new US$450 million secured term loan at Abitibi- Consolidate Inc.'s subsidiary Abitibi-Consolidated Company of Canada. At the same time, Moody's affirmed Abitibi's corporate family rating of Caa1, the probability-of-default rating of Caa3, the senior unsecured ratings of Caa2 and the B1 rating assigned to the new US$415 million secured notes due 2011. In addition, Abitibi's speculative grade liquidity rating was affirmed at SGL-4 and the rating outlook remains negative. At the same time, Standard & Poor's Ratings Services assigned its issue and recovery ratings to Abitibi-Consolidated Co. of Canada's proposed US$415 million senior secured notes. ACCC is a subsidiary of Abitibi-Consolidated Inc. (B-/Watch Neg/--). S&P assigned a 'B+' issue-level rating to the notes (two notches above the corporate credit rating on Abitibi-Consolidated), with a recovery rating of '1', indicating the expectation for a very high (90%-100%) recovery in the event of a payment default. As reported in the Troubled Company Reporter-Europe on March 12, 2008, Fitch Ratings downgraded the debt of Abitibi-Consolidated Inc., (a subsidiary of AbitibiBowater Inc., as: Issuer Default Rating to 'CC' from 'CCC'; Senior unsecured debt to 'CC/RR4 from 'CCC/RR4'; and Secured revolver to 'CCC-/RR3' from 'CCC+/RR3'. The ratings remain on Rating Watch Negative. Fitch also said that the ratings of parent AbitibiBowater Inc.'s CCC Issuer Default Rating and Bowater Inc.'s CCC issuer Default Rating remain unchanged and on Watch Negative. BAKER STREET: Fitch Places Ratings Under Negative Watch ------------------------------------------------------- Fitch Ratings placed eleven classes of notes issued by Baker Street Finance Limited and nine classes of notes issued by Baker Street Finance USD Limited on Rating Watch Negative. Affected notes total EUR748 OR US$45.5 million respectively. These classes are placed on Rating Watch Negative, effective immediately: -- EUR137,500,000 class A-1a notes 'AAA'; -- EUR110,000,000 class A-1b notes 'AAA'; -- EUR92,400,000 class A-1c notes 'AAA'; -- EUR90,200,000 class A2 notes 'AAA'; -- EUR89,100,000 class B notes 'AA+'; -- EUR68,750,000 class C notes 'AA'; -- EUR55,000,000 class D notes 'AA-'; -- EUR39,600,000 class E notes 'A'; -- EUR24,200,000 class F notes 'A-'; -- EUR22,000,000 class G notes 'BBB; -- EUR19,250,000 class H notes 'BB+'. -- US$8,400,000 class A-1 notes 'AAA'; -- US$8,200,000 class A-2 notes 'AAA'; -- US$8,100,000 class B notes 'AA+'; -- US$6,250,000 class C notes 'AA'; -- US$5,000,000 class D notes 'AA-'; -- US$3,600,000 class E notes 'A'; -- US$2,200,000 class F notes 'A-'; -- US$2,000,000 class G notes 'BBB'; -- US$1,750,000 class H notes 'BB+'. Baker Street is a synthetic collateralized debt obligation that references a EUR2.75 billion or US$250 million portfolio of primarily investment grade corporate bonds referenced via direct investments (50% of the total referenced amount), and indirectly through ten inner tranche credit default swaps (30% of the total referenced amount), as well as various asset backed securities (ABS) (20% of total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and reference obligations. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 20% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by Alternative-A and subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has deteriorated in recent periods. Approximately 23.5% of the ABS portion of the portfolio (4.7% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. BIASCO LTD: Taps Joint Administrators from BDO Stoy --------------------------------------------------- Geoffrey Stuart Kinlan and William John Turner of BDO Stoy Hayward LLP were appointed joint administrators of Biasco Ltd. (Company Number 03584388) on March 11, 2008. BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance (audit), corporate advisory, tax, and investment management services, specializing in such industries as charities, educational institutions, family businesses, financial services, leisure, and hospitality. The company is the U.K. arm of BDO International and has offices in more than 15 cities throughout the U.K. The company can be reached at: Biasco Ltd. Hillgrove Business Park Waltham Abbey Essex EN9 2HB England Tel: 01992 892 289 Fax: 01992 893 930 BILSING AUTOMATION: Brings In Administrators from Menzies --------------------------------------------------------- Paul David Williams and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of Bilsing Automation (UK) Ltd. (Company Number 03985014) on March 17, 2008. Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. The company can be reached at: Bilsing Automation (UK) Ltd. Bentwaters Parks Woodbridge Suffolk IP12 2TW England Tel: 01394 460 646 Fax: 01394 460 958 CHRYSLER LLC: Clarifies Misleading Coverage of Discount Programs ---------------------------------------------------------------- Some recent reports suggested that Chrysler LLc's Friends Program discounts on purchases of new Chrysler, Jeep(R), or Dodge vehicles had been discontinued. Chrysler employees can still help an immediate family member or a friend get a great deal on a new Chrysler, Jeep(R), or Dodge vehicle. U.S. employees can enable 6 vehicle purchase or lease discounts (at 1% below dealer invoice) for extended family and friends. This is in addition to the 6 vehicle purchase or lease discounts for the employees, retirees and their eligible family members -- a total of 12 discounts on most new Chrysler, Jeep & Dodge vehicles. All 12 discounts provide major savings and include relevant incentives in effect. The recent news coverage on these employee programs was misleading in that it made people think that the Friends Program was eliminated. The program continues for employees and retirees. Only The Employee Choice program has been cancelled which ended Jan. 2, 2008 -- all other Chrysler LLC employee purchase programs remain in effect. With all the Chrysler Employee Advantage programs, employees have the ability to be true product and sales ambassadors for the company. Employees can continue to drive Chrysler sales by encouraging their friends, family, neighbors and acquaintances to buy or lease a new Chrysler product. Now is the time to get great deals with affordable financing or lease payments with 0% APR financing for 60 months available on most 2008 models. Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CLIFTON STREET: Fitch Puts Ratings Under Negative Watch ------------------------------------------------------- Fitch Ratings placed nine classes of notes issued by Clifton Street Finance Limited on Rating Watch Negative. Affected notes total EUR261 million. These classes are placed on Rating Watch Negative, effective immediately: -- EUR53,250,000 class A1 notes 'AAA'; -- EUR48,750,000 class A2 notes 'AAA'; -- EUR37,500,000 class B notes 'AA+'; -- EUR32,000,000 class C notes 'AA'; -- EUR30,000,000 class D notes 'AA-'; -- EUR17,500,000 class E notes 'A'; -- EUR15,000,000 class F notes 'A-'; -- EUR15,000,000 class G notes 'BBB'; -- EUR12,000,000 class H notes 'BB+'. Clifton Street is a synthetic collateralized debt obligation that references a EUR1.5 billion portfolio which consists of primarily investment grade corporate obligations referenced via direct investments (50% of the total referenced amount) and indirectly through ten inner single-tranche credit default swaps (30% of the total referenced amount), as well as various asset backed securities (20% of the total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and reference obligations. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 20% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by Alternative-A and subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has significantly deteriorated in recent periods. Approximately 27.6% of the ABS portion of the portfolio (5.5% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. CORBY BOTTLERS: Appoints KPMG to Administer Assets --------------------------------------------------- Andrew Stephen McGill and Richard James Philpott of KPMG LLP were appointed joint administrators of Corby Bottlers Plc (Company Number 02120678) on March 18, 2008. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. The company can be reached at: Corby Bottlers Plc Brunel Road Earltrees Industrial Estate South Corby Northamptonshire NN17 4JW England Tel: +44 (0) 1536 446000 Fax: +44 (0) 1536 446001 Web site: http://www.corbybottlers.com/ DARLINGTON WINES: Hires Joint Administrators from KPMG ------------------------------------------------------ Andrew Stephen McGill and Richard James Philpott of KPMG LLP were appointed joint administrators of Darlington Wines Ltd. (Company Number 01278872) on March 18, 2008. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. The company can be reached at: Darlington Wines Ltd. Crown House Gretton Brook Road Corby NN17 4BA England Tel: 01536 276070 Fax: 01536 276071 Web site: http://www.darlingtonwines.com/ DORSET STREET: Fitch Puts Ratings on 9 Note Classes Under Watch --------------------------------------------------------------- Fitch Ratings placed nine classes of notes issued by Dorset Street Finance Limited on Rating Watch Negative. Affected notes total EUR546 million. These classes are placed on Rating Watch Negative, effective immediately: -- EUR45,000,000 class A1 notes 'AAA'; -- EUR75,000,000 class A2 notes 'AAA'; -- EUR98,250,000 class B notes 'AA+'; -- EUR91,500,000 class C notes 'AA'; -- EUR75,000,000 class D notes 'AA-'; -- EUR60,000,000 class E notes 'A'; -- EUR37,500,000 class F notes 'A-'; -- EUR33,750,000 class G notes 'BBB'; -- EUR30,000,000 class H notes 'BB+'. Dorset Street is a synthetic collateralized debt obligation that references a EUR3.0 billion portfolio of primarily investment grade corporate bonds, referenced via direct investments (51.7% of the total referenced amount), and through ten inner tranche credit default swaps (30% of the total referenced amount), as well as asset backed securities (ABS) (18.3% of total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and reference obligations. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 18.3% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by Alternative-A and subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has deteriorated in recent periods. Approximately 17.5% of the ABS portion of the portfolio (3.2% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. FGIC CORP: Fitch Slashes Long-term Issuer Rating to 'BB' -------------------------------------------------------- Fitch Ratings downgraded these ratings on FGIC Corporation and its financial guaranty insurance subsidiaries Financial Guaranty Insurance Company and FGIC UK Ltd. to: FGIC FGIC UK Ltd. -- Insurer financial strength (IFS) to 'BBB' from 'AA'. FGIC Corp. -- Long-term Issuer to 'BB' from 'A'; -- US$325 million of 6% senior notes due Jan. 15, 2034 'BB' from 'A'. Fitch has also removed the affected ratings from Rating Watch Negative, where they were originally placed on Dec. 17, 2007. The Rating Outlook is Negative. The downgrade on FGIC is based on Fitch's updated assessment of the company's capital position, a review by Fitch of FGIC's updated business plan, consideration of various qualitative ratings factors, and an update on Fitch's current views of U.S. subprime related risks. Fitch believes that FGIC's US$5 billion claims paying resources as of Sept. 30, 2007 is commensurate with capital guidelines for a 'BBB' IFS rating. In addition, Fitch believes the claims paying resources fall below the agency's targeted 'AAA', 'AA', and 'A' IFS ratings ranges by these amounts: -- 'AAA' capital shortfall of US$5.1 to US$5.3 billion; -- 'AA' capital shortfall of US$3.1 to US$3.5 billion; -- 'A' capital shortfall of US$800 million to US$1.7 billion. Fitch notes that FGIC's future business plans include a focus on its traditional lower-risk global municipal finance and infrastructure businesses, while avoiding the more riskier structured finance business lines. FGIC has proposed to the New York Insurance Department a restructuring of its operations calling for the establishment of a newly licensed insurance entity that will focus solely on global municipal finance and infrastructure. In the interim, with the loss of its top credit ratings from all three of the major global rating agencies, an inability to date to raise new external capital, and a recognition that the company could fall below prescribed regulatory minimum capital requirements under New York State Insurance law, FGIC has decided to cease underwriting new financial guaranty business for a period of time to preserve capital. The suspension of new underwritings should help improve FGIC's capital position as the company will benefit from the amortization of existing insured obligations, some of which exhaust a material amount of targeted capital resources. Going forward, Fitch believes that it will be very difficult to stabilize the ratings of FGIC until the company can both raise external capital and more effectively limit the downside risk from its SF CDOs through reinsurance or other risk mitigation initiatives. Fitch does not anticipate removing the Negative Rating Outlook over the near-to-intermediate-term until the risk of loss on the SF CDOs portfolio can be more definitively quantified. Furthermore, future rating actions will likely depend on clarification of FGIC's long-term management and leadership direction, and demonstration that management can successfully execute its strategic business plans. These qualitative business, management and franchise-related factors will take on added consideration in future ratings reviews. Favorably, Fitch notes that FGIC maintains solid liquidity, as the company would not be expected to pay a majority of its future claims, particularly on SF CDOs, for many years into the future. In addition, FGIC is subject to few collateral posting or termination provisions that could effectively accelerate the draw on its existing capital resources. FGIC has recently filed suit in Supreme Court of the State of New York against several parties, alleging they fraudulently induced FGIC to enter into a commitment to issue a financial guaranty policy. The financial guaranty policy would cover the risk of losses on a large SF CDO, known as Havenrock II, which is deteriorating rapidly. Projected losses on the Havenrock II transaction account for a material percentage of the aggregate SF CDO losses Fitch expects FGIC will incur. Via the lawsuit, FGIC is seeking to terminate its commitment. While Fitch is not in a position to opine on the validity or merits of the existing legal dispute, Fitch notes that a ruling in FGIC's favor could positively impact the company's capital position and credit ratings in the future. Fitch believes it could be several years before the dispute is settled. Fitch notes that the downgrade incorporates the agency's updated analysis of FGIC's US$12.9 billion gross exposure to SF CDOs, and the implications this analysis has on Fitch's view of FGIC's overall capital adequacy position. Fitch currently believes that expected losses on FGIC's SF CDO portfolio will ultimately fall within a range of US$2.8 to US$3.8 billion. These totals reflect Fitch's current estimates of the range of future losses that FGIC would be expected to incur over the life of these transactions, stated on a present value basis. The range of outcomes reflects the unknown magnitude of residential mortgage losses on SF CDOs insured by FGIC. From a present value perspective, Fitch discounts the expected future loss rates by 5% over a two-year period for CDO-squareds, five years for mezzanine SF CDOs and seven years for high-grade SF CDOs. Fitch's analysis of expected losses includes an assumption that underlying cumulative loss rates on residential mortgages supporting outstanding subprime residential mortgage-backed securities pools will average 21% in the 2006 vintage year and 26% for the 2007 vintage year. These assumed cumulative loss rates are consistent with those currently used by Fitch for its ratings of outstanding RMBS transactions. Given Fitch's current projected loss estimates for 2006-2007 vintage subprime RMBS, it is expected that a high percentage of the underlying tranches that were originally rated below 'AAA' will potentially default and suffer significant losses. This development is expected to result in losses elevating high into the capital structure for many SF CDOs. Only those RMBS and SF CDO transactions from the 2006-2007 vintages that maintained very healthy levels of initial subordination are expected to avoid experiencing losses in the future. Fitch believes for modeling purposes that its expected loss estimates for SF CDOs fall approximately to an 'A' level ratings stress. Accordingly, in order to address the necessary level of capital to support a financial guarantor at the highest rating levels, expected losses are further stressed to arrive at 'AA' and 'AAA' capital thresholds. This is done to capture the risk that losses could grow higher than expected due to a more severe downturn in the economy, sharper than expected declines in home prices, higher than expected loan defaults, or other adverse developments beyond expectations. These additional stresses were included in the capital targets highlighted above. Fitch's assessment of FGIC's capital adequacy also incorporated existing deterioration to the company's insured RMBS portfolio, particularly transactions backed by prime second-lien mortgages, which totaled approximately US$19.1 billion as of Sept. 30, 2007 or subprime RMBS transactions. Given current market conditions, many of these transactions have come under considerable ratings pressure, which increases capital requirements, and several transactions are ultimately expected to result in claims. Stress related to both SF CDOs and RMBS were largely responsible for FGIC Corp. posting in the fourth quarter of 2007, loss and loss adjustment expenses expense of US$1.2 billion. In addition to the loss and LAE expense, FGIC also took a US$751 million permanent impairment against its SF CDO written via credit derivative execution. Fitch will comment on the impact of the downgrade of FGIC's IFS rating on the ratings of securities insured by FGIC in a separate release. FGIC Corp. is a U.S. holding company whose primary operating financial guaranty subsidiaries are FGIC and FGIC U.K Ltd. For Dec. 31, 2007, FGIC Corp. reported consolidated assets under Generally Accepted Accounting Principles of US$6.4 billion and shareholders' equity of approximately US$584 million. On an aggregated basis, net par outstanding for FGIC totaled US$314 billion as of Dec. 31, 2007. FORD MOTOR: Jaguar & Land Rover Sale Won't Affect S&P's Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for US$2.3 billion (before US$600 million of pension contributions by Ford for Jaguar-Land Rover). The sale will bolster Ford's adequate liquidity. As of Dec. 31, 2007, cash and marketable securities totaled US$32.7 billion, and the company had an US$11.5 billion secured revolving credit facility with US$10.9 billion available for use. There are no financial maintenance covenants on this facility other than a borrowing-base calculation, which was not restrictive at year- end 2007. S&P sees insignificant risk in Ford's plans to temporarily provide components and technologies to Jaguar and Land Rover as well as provide financing for Jaguar and Land Rover dealers and customers for up to a year. FOUNTASIA LTD: Brings In Vantis to Administer Assets ---------------------------------------------------- Nicholas Hugh O'Reilly and Simon Elliott Glyn of Vantis Business Recovery Services were appointed joint administrators of Fountasia Ltd. (Company Number 03085250) on March 11, 2008. Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. The company can be reached at: Fountasia Ltd. Orchard Business Park Badsell Road Tonbridge Kent TN12 6QU England Tel: 01892 835 632 Fax: 01892 838 086 HALIFAX TOWN: Appoints Begbies as Joint Administrators ------------------------------------------------------ Rob Sadler and Peter Sargent of Begbies Traynor were appointed joint administrators of Halifax Town Association Football Club Ltd. (Company Number 00116844) on March 14, 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: Halifax Town Association Football Club Ltd. The Shay Stadium Shaw Hill Halifax West Yorkshire HX1 2YT England Fax: 01422 349 487 HANOVER STREET: Fitch Puts Ratings on Ten Notes on Neg. Watch ------------------------------------------------------------- Fitch Ratings placed ten classes of notes issued by Hanover Street Finance Limited on Rating Watch Negative. Affected notes total EUR484.15 million. These classes are placed on Rating Watch Negative, effective immediately: -- EUR72,200,000 class A1 notes 'AAA'; -- EUR80,500,000 class A2 notes 'AAA'; -- EUR80,500,000 class B notes 'AA+'; -- EUR70,000,000 class C notes 'AA'; -- EUR50,400,000 class D notes 'AA-'; -- EUR30,450,000 class E notes 'A+'; -- EUR29,400,000 class F notes 'A'; -- EUR28,000,000 class G notes 'A-'; -- EUR24,500,000 class H notes 'BBB'; -- EUR18,200,000 class I notes 'BB+'. Hanover Street is a synthetic collateralized debt obligation that references a EUR2.1 billion portfolio, which consists of primarily investment grade corporate obligations referenced via direct investments (45% of the total referenced amount) and indirectly through ten inner single-tranche credit default swaps (35% of the total referenced amount), as well as various asset backed securities (20% of the total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and reference obligations. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 20% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by Alternative-A and subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has deteriorated in recent periods. Approximately 22.8% of the ABS portion of the portfolio (4.6% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. HIGH FREQUENCY: Creditors' Meeting Slated for April 9 ----------------------------------------------------- Creditors of High Frequency Solutions (Audio and Visual) Ltd. will meet at 2:00 p.m. on April 9, 2008, at: Vantis Torrington House 47 Holywell Hill St. Albans Hertfordshire AL1 1HD England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on April 8, 2008, at: M.W. Young Joint Administrator Vantis Torrington House 47 Holywell Hill St. Albans Hertfordshire AL1 1HD England Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. HIGH FREQUENCY: Creditors' Meeting Slated for April 9 ----------------------------------------------------- Creditors of High Frequency Solutions Ltd. will meet at 10:00 a.m. on April 9, 2008, at: Vantis Torrington House 47 Holywell Hill St. Albans Hertfordshire AL1 1HD England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on April 8, 2008, at: M.W. Young Joint Administrator Vantis Torrington House 47 Holywell Hill St. Albans Hertfordshire AL1 1HD England Headquartered in United Kingdom, Vantis Plc (fka Vantis Numerica) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. HUGHES NETWORK: Net Income Ups 161% to US$50 Million in 2007 ------------------------------------------------------------ Hughes Communications, Inc. reported financial results for the fourth quarter and year ended Dec. 31, 2007. The company's consolidated operations are currently classified into four reportable segments: North America VSAT; International VSAT; Telecom Systems; and Corporate and Other. The North America VSAT, International VSAT and Telecom Systems segments represent all the operations of Hughes Network Systems, LLC, Hughes' principal operating subsidiary. The company and its affiliates reported a net income of US$43.5 million on US$970.6 million of total revenues for the year ended Dec. 31, 2007, compared to 2006 where the group incurred a net loss of US$39.1 million on total revenues of US$858.6 million. The group had US$1.1 billion in total assets, US$859.1 million in total liabilities, and a stockholders' equity of US$247.4 million at Dec. 31, 2007, compared to total assets of US$912.3 million, total liabilities of US$709.4 million, and a stockholders' equity of US$198.3 million at Dec. 31, 2006. "HNS delivered strong financial results in 2007," said president and chief executive officer, Pradman Kaul. "Revenues increased by 13% over 2006 to US$970 million and our profitability in 2007 was also very strong. Operating Income for the year was US$90 million, a growth of 56% over 2006; EBITDA increased by 28% to US$139 million in 2007 over 2006, and Net Income increased by 161% to US$50 million. All of the segments showed robust growth. The major revenue growth contributors were the consumer, international and the mobile satellite markets with growth rates of 13%, 11% and 77% respectively in 2007 over 2006. The consumer base grew to 379,900 subscribers at Dec. 31, 2007, a growth of 16% over the subscriber base at Dec. 31, 2006. Our North America and International enterprise groups provided a solid revenue base contributing in aggregate over half of HNS' total revenue in 2007. I am also very pleased to report that we were awarded a record US$1.1 billion of new orders in 2007 representing a growth of 30% over 2006." "These impressive full-year results were a result of sustained quarterly performances, including a strong fourth quarter," continued Mr. Kaul. "We grew fourth quarter 2007 Revenues by 15%, Operating Income by 39% and Net Income by 95% over the fourth quarter of 2006. The revenue growth engines in the fourth quarter of 2007 were the consumer, international, and mobile satellite markets with growth rates of 14%, 25% and 52% respectively over the fourth quarter of 2006. We were awarded US$333 million of new orders in the fourth quarter of 2007, including significant orders from Camelot, State Bank of India, Best Western, Sherwin Williams, Walmart, Blockbuster, Hess, BP, Harris and Hughes Telematics." Some of the company's selected highlights: -- Hughes Network Systems, LLC accepted the in-orbit handover of the SPACEWAY(TM) 3 commercial communications satellite from Boeing. HNS will utilize the Boeing-built satellite to provide HughesNet(R) broadband satellite services throughout North America. The satellite is currently going through the system testing phase and the company expects to commence service later in the first quarter of 2008. -- Hughes Network Systems' wholly owned European subsidiary Hughes Network Systems Ltd. signed an amendment to the contract previously executed in August 2007 with U.K. lottery operator Camelot PLC for providing managed network services for over 27,000 lottery sites in the U.K. The amendment extends the contract's term to 10 years and also provides additional functionality. This brings the total value of the 10 year contract to over US$150 million making it the largest single order awarded to Hughes Network Systems in 2007. -- Hughes entered into a definitive agreement to acquire Helius, Inc., a portfolio company of Canopy Ventures. The acquisition will combine the skills of Helius, a recognized leader in providing business IPTV solutions for applications such as training, corporate communications and digital signage, with the extensive broadband networking experience and customer base of Hughes. Hughes plans to deploy Helius' innovative IP video technologies to enhance its existing HughesNet service offerings. -- Hughes Network Systems signed an agreement with Dow Electronics to be a distributor of HughesNet satellite broadband Internet service in the Southeastern United States, home to many consumers who are not served by high- speed landline Internet providers. Under the terms of the agreement, Dow Electronics will market primarily to retailers in Florida, Alabama, Georgia, Mississippi, Louisiana, South Carolina, North Carolina, Arkansas, Tennessee, Puerto Rico and the U.S. Virgin Islands who will sell and install the HughesNet satellite broadband access service. -- Hughes Network Systems signed an agreement with CVS Systems, Inc. to be a distributor of HughesNet satellite broadband Internet service in the Midwest and Great Lakes region of the country, home to many consumers who are not served by high-speed landline Internet providers. Under the terms of the agreement, CVS will market primarily to retailers in Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri and Ohio who will sell and install the HughesNet satellite broadband access service. Mr. Kaul said, "We are very pleased with the strong and balanced financial results that we have delivered in 2007. We are currently at an advanced stage in the in-orbit system testing of SPACEWAY 3 and we are looking forward to commencing service on SPACEWAY 3 by the end of this quarter. We expect that SPACEWAY 3 will provide us significant cost benefits and also open up new revenue opportunities going forward in the North American enterprise and consumer markets. We have a robust orders backlog coming into 2008 as a result of an outstanding new orders performance in 2007. All of these have positioned HNS very well for 2008 and beyond." Commenting on Hughes' financial performance, executive vice president and chief financial officer, Grant Barber said, "Our revenue and profitability showed strong growth in the fourth quarter of 2007. For the twelve months ended December 2007, Hughes delivered earnings per share of US$2.26 compared to a loss of US$2.43 in the same period in 2006, both on a fully diluted basis. We also generated cash from operations of US$93 million in 2007 and closed the year with a healthy consolidated cash and marketable securities position of US$151 million." About Hughes Network Systems Based in Germantown, Maryland, Hughes Network Systems LLC (NASDAQ:HUGH) -- http://www.hughes.com/-- a wholly owned subsidiary of Hughes Communications Inc., provides broadband satellite networks and services for large enterprises, governments, small businesses, and consumers. Hughes offers complete turnkey solutions, including program management, installation, training, maintenance and support-for professional and rapid deployment anywhere, worldwide. The company owns and operates a global base of HughesNet shared hub services throughout the United States, Brazil, China, Europe, and India. In Europe, Hughes maintains operations facilities and sales offices in Germany, U.K., Italy, Czech Republic, and Russia. * * * Moody's Investors Service assigned a B1 rating to Hughes Network Systems LLC's proposed US$115 million senior unsecured term loan, due 2014. In addition, the ratings agency affirmed the B1 corporate family rating, the B1 rating on the existing US$450 million senior notes due 2014 and the Ba1 rating on the US$50 million senior secured revolving credit facility. The proceeds of the new term loan will be used primarily to fund capital expenditures and for general corporate purposes. LED SCREEN: S. J. Parker Leads Liquidation Procedure ---------------------------------------------------- S. J. Parker of Tenon Recovery was appointed liquidator of Led Screen Hire Co. Ltd. on Jan. 26 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Tenon Recovery Sherlock House 73 Baker Street London W1U 6RD England MAXJET AIRWAYS: Court Okays Sale of Assets to MAAG for US$1 Mln --------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware authorized MAXjet Airways Inc. to sell its assets including operating certificate from the United States Federal Aviation Administration for US$1,000,000, Bill Rochelle of Bloomberg News reports. The Debtor sold its assets to MAXjet Airways Acquisition Group LLC. All proceeds from the sale of the Debtor's assets will be for the benefit of its creditors, but not for the shareholders. MAAG was required to transfer US$736,000 of non-refundable payment to pay the Debtor's operational cost incurred for the during the period March 12, 2008, until April 23, 2008. The Debtor told the Court that any balance remaining after all cost accrued until April 23, 2008, are paid will be returned to MAAG. A full-text copy of the asset purchase agreement is available for free at http://ResearchArchives.com/t/s?294b About MAXjet Airways Headquartered in Dulles, Virginia, MAXjet Airways Inc. -- http://www.maxjet.com/-- is an all-business class, long-haul airline company. It has introduced scheduled services with flights from London Stansted Airport to New York. As of December, 2006, it leased five B767 aircraft. Its customers are both business and leisure travelers. At the airport, its product features check-in facilities located in primary terminals, security and a business class departure lounge and arrivals facility. Its flights features deep-recline seats (170 degree) spaced at a 60 inch pitch, portable entertainment systems, stowage space and business class catering. The Debtor filed for chapter 11 protection on Dec. 24, 2007 (Bankr. D. Del. Case No. 07-11912). The Debtor selected Pachulski Stang Ziehl & Jones LLP and Pillsbury Winthrop Shaw Pittman LLP as its bankruptcy counsels. The Debtor selected Epiq Bankruptcy Services LLC as claims, noticing and claims agent. Arent Fox LLP represents the Official Committee of Unsecured Creditors. The Debtor's summary of schedules shows assets of US$14,836,147 and debts of US$23,601,824. MENTON CDO III: Moody's Junks Ratings on Two Note Classes --------------------------------------------------------- Moody's Investors Service downgraded two classes of notes issued by Menton CDO III plc. The transaction is a managed synthetic CDO, with the underlying portfolio containing 20% RMBS and 42% ABS CDOs of the 2005, 2006, and 2007 vintages. Of the entire portfolio, 12.55% of the portfolio by volume (all ABS CDOs) is currently rated C. Moody's announced on February 4, 2008 that it is revising its expected loss assumptions which are used for surveillance of ratings of ABS CDOs holding subprime RMBS, specifically of the 2006 vintage. Moody's stated that for purposes of monitoring its ratings of ABS CDOs with exposure to 2006 subprime RMBS, it will rely on certain projections of the lifetime average cumulative losses for 2006's quarterly vintages of RMBS set forth in a recent Moody's Special Report, "Moody's Updates Loss Projections for 2006 Subprime Loans." This report illustrates average loss results for the 2006 quarterly vintages under five distinct loss projection scenarios. Moody's explained that it will utilise the range of loss projections set forth in Scenarios 2 and 3 based on deal performance and quarterly vintage to modify its prior assumptions of the expected loss inputs when monitoring ABS CDO ratings. Moody's will continue to monitor all deals with exposure to US subprime RMBS, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS vintages becomes known. The rating actions are: Menton III CDO PLC: (1) US$54,000,000 Class A-1 Secured Floating Rate Notes due 2057 Current Rating: C Prior Rating: B3, on review for downgrade (2) US$15,000,000 Class A-2 Secured Floating Rate Notes due 2057 Current Rating: C Prior Rating: Caa3, on review for downgrade MILLENNIUM REPRO: Creditors' Meeting Slated for April 7 ------------------------------------------------------- Creditors of Millennium Repro Ltd. (Company Number 03542209) will meet at noon on April 7, 2008, at: Tenon Recovery Clive House Clive Street Bolton Lancashire BL1 1ET England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on April 4, 2008 at: Matthew Colin Bowker and Christopher Ratten Joint Administrators Tenon Recovery Clive House Clive Street Bolton Lancashire BL1 1ET England Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. MONITOR OIL: Fails to Secure US$3.5 Funds from Creditors -------------------------------------------------------- Shai Waisman, Esq., at Weil, Gotshal & Manges LLP in New York, representing Credit Suisse Group, on March 26, 2008, told Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York that Monitor Oil Plc's remaining cash stands at US$75,000 after it failed to secure US$3.5 million from creditors, Tiffany Kary writes for Bloomberg News. Mr. Waisman told Judge Glenn that the amount may dwindle to US$53,000 by April 4, 2008, when the court resumes hearing, Bloomberg News reports. Judge Glenn urged Monitor's bondholders and second-lien lenders, represented by Credit Suisse, to reach an agreement soon, Bloomberg News relates. About Monitor Oil Headquartered in the Cayman Islands, Monitor Oil, Plc -- http://www.monitoroil.com/-- provides oil and gas production solutions, offshore services and engineering services. The Monitor Group has operations in London, England; Aberdeen, Scotland; Stavanger, Norway; Caldicot, Wales; Shanghai, China and New York, United States. The company and two of its affiliates, Monitor Single Lift 1, Ltd., and Monitor US FinCo, Inc., filed for Chapter 11 Protection on Nov. 21, 2007 (Bankr. S.D.N.Y. Case No. 07-13709). Eric Lopez Schnabel, Esq., at Dorsey & Whitney, L.L.P., represents the Debtor. The U.S. Trustee for Region 2 appointed five creditors to serve on an Official Committee of Unsecured Creditors in the Debtors' cases. Ira L. Herman, Esq., at Thompson & Knight, LLP, represents the Committee. As of Dec. 31, 2007, the company disclosed total assets of US$98,340,000 and total debts of US$56,125,000. MONITOR OIL: Could Become Administratively Insolvent ---------------------------------------------------- Michael Foreman, Esq., at Dorsey & Whitney LLP in New York, told Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York that Monitor Oil Plc could become "administratively insolvent" or unable to pay legal fees for its bankruptcy, Bloomberg News reports. According to Mr. Foreman, the report adds, the company's new board is currently seeking loans to finance operations and exit bankruptcy. Mr. Foreman adds that the board is looking for replacement financing in order to allow recovery for second-lien lenders and bondholders. Mr. Foreman said Monitor may sell a US$10 million contract with Siemens AG, to get more funds. About Monitor Oil Headquartered in the Cayman Islands, Monitor Oil, Plc -- http://www.monitoroil.com/-- provides oil and gas production solutions, offshore services and engineering services. The Monitor Group has operations in London, England; Aberdeen, Scotland; Stavanger, Norway; Caldicot, Wales; Shanghai, China and New York, United States. The company and two of its affiliates, Monitor Single Lift 1, Ltd., and Monitor US FinCo, Inc., filed for Chapter 11 Protection on Nov. 21, 2007 (Bankr. S.D.N.Y. Case No. 07-13709). Eric Lopez Schnabel, Esq., at Dorsey & Whitney, L.L.P., represents the Debtor. The U.S. Trustee for Region 2 appointed five creditors to serve on an Official Committee of Unsecured Creditors in the Debtors' cases. Ira L. Herman, Esq., at Thompson & Knight, LLP, represents the Committee. As of Dec. 31, 2007, the company disclosed total assets of US$98,340,000 and total debts of US$56,125,000. OXFORD STREET: Fitch Puts Note's Ratings- on Negative Watch ----------------------------------------------------------- Fitch Ratings placed nine classes of notes issued by Oxford Street Finance Limited on Rating Watch Negative. Affected notes total EUR382 million. These classes are placed on Rating Watch Negative, effective immediately: -- EUR87,000,000 class A1 notes 'AAA'; -- EUR80,000,000 class A2 notes 'AAA'; -- EUR64,000,000 class B notes 'AA+'; -- EUR43,000,000 class C notes 'AA'; -- EUR33,000,000 class D notes 'AA-'; -- EUR28,000,000 class E notes 'A'; -- EUR17,000,000 class F notes 'A-'; -- EUR16,000,000 class G notes 'BBB'; -- EUR14,000,000 class H notes 'BB+'. Oxford Street is a synthetic CDO (collateralized debt obligation) that references a EUR2.0 billion portfolio of primarily investment grade corporate bonds, referenced via direct investments (55% of the total referenced amount), and indirectly through ten inner tranche credit default swaps (30% of the total referenced amount), as well as various asset backed securities (ABS) (15% of total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and reference obligations. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 15% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has deteriorated in recent periods. Approximately 25.6% of the ABS portion of the portfolio (3.8% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. PEMBRIDGE SQUARE: Fitch Places Notes' Ratings on Negative Watch --------------------------------------------------------------- Fitch Ratings placed nine classes of notes issued by Pembridge Square Finance Limited on Rating Watch Negative. Affected notes total EUR380 million. These classes are placed on Rating Watch Negative, effective immediately: -- EUR17,000,000 class A1 'AAA'; -- EUR80,000,000 class A2 'AAA'; -- EUR70,000,000 class B notes 'AA+'; -- EUR60,000,000 class C notes 'AA'; -- EUR50,000,000 class D notes 'AA-'; -- EUR40,000,000 class E notes 'A'; -- EUR25,000,000 class F notes 'A-'; -- EUR22,000,000 class G notes 'BBB'; -- EUR16,000,000 class H notes 'BB+'. Pembridge Square is a synthetic collateralized debt obligation that references a EUR2.0 billion portfolio, which consists of primarily investment grade corporate obligations referenced via direct investments (50% of the total referenced amount) and indirectly through ten inner single-tranche credit default swaps (35% of the total referenced amount), as well as various asset backed securities (15% of the total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and/or reference obligations. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 15% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by Alternative-A and subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has deteriorated in recent periods. Approximately 16.5% of the ABS portion of the portfolio (2.5% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. QUEBECOR WORLD: Wants to Pay US$3,175,111 Sales Commissions --------------------------------------------------------- Quebecor World Inc. and its affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to pay prepetition sales commissions currently owing to 108 sales representatives. Of these 108 sales representatives, 107 are owed accrued prepetition commissions by no later than March 31, 2008. The other employee is owed US$15,000 for meeting specific sales and budget attainment goals in 2007. This payment was due at the end of January 2007, and the Debtors seek authority to pay this employee for successfully achieving the target sales goal. The total amount of the sales commissions due to these 108 individuals is US$3,175,111. Of this amount, US$2,224,373 reflects amounts in excess of US$10,950 per employee, with the proposed prepetition payments per employee ranging from US$142 to US$251,441. Michael Canning, Esq., at Arnold & Porter LLP, in New York, notes that along with the sales commissions due in March, there are certain prepetition commission obligations that have not yet been fully resolved. Mr. Canning says the Debtors reserve the right to file a motion to seek the Court's authority to pay additional prepetition sales commissions, which the Debtors currently estimate to be approximately US$550,000. First Motion to Pay Prepetition Commissions As reported in the Troubled Company Reporter on Feb. 26, 2008, the Court gave the Debtors permission to pay accrued prepetition commissions due and owing as of Feb. 1, 2008, to their sales representatives. The TCR said on Feb. 19, 2008, Mr. Canning related that the Debtors' sales representatives are located in plants or in regional offices throughout North America, Europe and Latin America, and customers are able to coordinate simultaneous printing throughout the Debtors' network through a single sales representative. Mr. Canning said that the Debtors owe 59 sale representatives, as of February 1, US$1,792,993. Of this amount, US$1,234,641 reflects amounts in excess of US$10,950 per employee, with the proposed prepetition payments per employee ranging from US$933 to US$117,868. The Debtors intends to provide the Office of the United States Trustee and counsel to the Official Committee of Unsecured Creditors a schedule showing for each employee scheduled to receive sales commissions on Feb. 1, 2008, the amount of payment and the amount of additional compensation previously received by the employee on account of 2007. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REGENT STREET: Notes' Ratings Put on Negative Watch by Fitch ------------------------------------------------------------ Fitch Ratings placed nine classes of notes issued by Regent Street Finance Limited on Rating Watch Negative. Affected notes total EUR688.55 million. These classes are placed on Rating Watch Negative, effective immediately: -- EUR93,550,000 class A-1 notes 'AAA'; -- EUR120,000,000 class A-2 notes rated 'AAA'; -- EUR112,500,000 class B notes 'AA+'; -- EUR105,000,000 class C notes 'AA'; -- EUR82,500,000 class D notes 'AA-'; -- EUR67,500,000 class E notes 'A'; -- EUR40,000,000 class F notes 'A-'; -- EUR37,500,000 class G notes 'BBB'; -- EUR30,000,000 class H notes 'BB+'. Regent Street is a synthetic collateralized debt obligation that references a EUR3.0 billion portfolio, which consists of primarily investment grade corporate obligations referenced via direct investments (50% of the total referenced amount) and indirectly through ten inner credit default swaps (35% of the total referenced amount), as well as various asset backed securities (15% of the total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and reference obligations. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 15% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by Alternative-A and subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has deteriorated in recent periods. Approximately 30.4% of the ABS portion of the portfolio (4.5% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. ROYAL MAIL: To Close Final Salary Pension Scheme ------------------------------------------------ Royal Mail Group Plc will conclude its final-salary pension scheme to new members by the end of March 2008, The Scotsman reports. With over 45,000 scheme members, Royal Mail was forced to close the scheme over longer life expectancy and a sharp rise in pension cost. The pension scheme has a GBP5 billion deficit, Scotsman relates. According to the report, starting April 1, 2008, the pension scheme will move to benefits based on average salary. As reported in the TCR-Europe on March 27, 2008, Royal Mail told its unions that pension fund trustees may be legally required to put the company into liquidation to pay its pension deficit. Royal Mail is in disagreement with unions over plans to close its final-salary pension plan, raise the retirement age from 60 to 65 and reduce its contributions to the plan. Headquartered in London, England, Royal Mail Group Plc -- http://www.royalmailgroup.com/-- is responsible for the universal mail collection and delivery service in the U.K. The company also offers a range of distribution services. SCOTTISH RE: Further Delays December 2007 Form 10-K Filing ---------------------------------------------------------- Scottish Re Group Limited will be postponing the release of results for the fourth quarter and the filing of its Form 10-K for the year ended Dec. 31, 2007. As previously reported in Troubled Company Reporter-Europe, the company said will delay the filing of its Form 10-K for the year ended Dec. 31, 2007 and currently expected to make the filing on or about April 1, 2008. The company also previously said that it expected to report results for the fourth quarter of 2007 after the market closes on March 27, 2008 and expected to host an earnings conference call to discuss the fourth quarter and full year results on March 28, 2008. On March 12, 2008, the company filed a Form 12b-25 with the Securities and Exchange Commission stating that it was postponing the filing of its Annual Report on Form 10-K for the year ended Dec. 31, 2007 beyond the due date and that it intended to file its Form 10-K on or about April 1, 2008 so that the Company could: * complete its process of evaluating mark-to-market valuations and other-than-temporary impairments in the carrying value of its available-for-sale securities; * address the accounting and disclosure requirements arising from the Company's recently announced change in strategy; and * allow sufficient time for the Company's independent registered public accounting firm, Ernst & Young LLP, to complete its audit of the Company's consolidated financial statements for the year ended Dec. 31, 2007. The company, on March 27, 2008, filed with the Securities and Exchange Commission an amendment to its Form 12b-25.. In light of continuing deterioration in the credit markets and the resulting further declines in the market value of the company's investment portfolio subsequent to the fiscal year end, the company has determined, in consultation with Ernst & Young LLP, that additional work is required to evaluate and conclude on the amount of other-than-temporary impairment charges to be recognized in the consolidated financial statements in accordance with U.S. GAAP. The company's determination of other-than-temporary impairments for securities classified as available-for-sale involves a variety of assumptions and estimates and includes assessments of risks and uncertainties associated with general economic conditions as well as specific conditions affecting specific issuers. The company's other-than-temporary impairment methodology includes an analysis of gross unrealized losses for securities where the estimated fair value has declined significantly below cost or amortized cost. Factors being considered by the company include: * the length of time fair value has been below cost; * credit worthiness of the issuer; * position of the security in the issuer's capital structure; * the presence and estimated value of collateral or other credit enhancement, * length of time to maturity, * interest rates and the Company's intent; and * ability to hold the security until the market value recovers. Given the concentration of the company's investment portfolio in residential mortgage-backed securities backed by sub-prime and Alt-A mortgages, the company has supplemented its assessment of other-than-temporary impairments with specific procedures related to these securities including best estimate cash flow simulations of projected principal losses. For certain investments in beneficial interests in securitized financial assets of less than high quality with contractual cash flows, including asset backed securities, the Company is required to apply Emerging Issues Task Force No. 99-20 Recognition of Interest Income and Impairment on Purchased Beneficial Interests that Continue to Be Held by a Transferor in Securitized Financial Assets (EITF 99-20) which requires a periodic update of the company's best estimate cash flows over the life of the security, utilizing assumptions and estimates that a market participant would use. The company is conducting a detailed review in conjunction with Ernst & Young LLP of its current and past accounting practices for other-than-temporary impairments of lower credit quality structured securities pursuant to the requirements of EITF 99- 20. Although the Company is currently unable to specify the amount of other-than-temporary impairments to be included in realized investment losses for the fourth quarter of 2007, the Company believes that the amounts will significantly exceed those previously reported for prior periods. The time and effort required to complete the foregoing evaluation is proving to be greater than the Company had previously anticipated. The company is also examining whether this analysis would require a restatement of previously reported financial results. As a result, additional time is required for the company to complete its work in the foregoing areas and for Ernst & Young LLP to complete its audit procedures of the Company's consolidated financial statements. Consequently, the company will be unable to file its Form 10-K for the year ended Dec. 31, 2007 with the Securities and Exchange Commission by April 1, 2008. The company is diligently working on completing the Form 10-K but is unable to specify at this time when it will be in a position to make the filing. The company anticipates that its full year 2007 results as compared with the corresponding period for 2006 will show that revenues have decreased primarily as a result of realized investment losses representing other-than-temporary impairments on investments. Total benefits and expenses for 2007 are expected to be comparable with that of the prior year. In light of changes in our assessment of other-than-temporary impairment charges since March 12, 2008, the company currently anticipates that its net loss after tax for the year ended Dec. 31, 2007 will be higher than its net loss reported for the year ended Dec. 31, 2006, although the exact amount of such change cannot be determined at this time. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. * * * As reported in the Troubled Company Reporter-Europe on Feb. 26, 2008, Fitch Ratings has downgraded Scottish Re Group Limited's Issuer Default Rating to 'B' from 'BB-' and the Insurer Financial Strength ratings of its primary operating subsidiaries to 'BB' from 'BBB-'. All ratings have been placed on Rating Watch Negative with the exception of Scottish Re Limited which has been placed on Rating Watch Evolving. As reported in the Troubled Company Reporter-Europe on Feb. 21, 2008, Moody's Investors Service placed Scottish Re Group Limited's Senior unsecured shelf of (P)Ba3; subordinate shelf of (P)B1; junior subordinate shelf of (P)B1; preferred stock of B2; and preferred stock shelf of (P)B2 ratings on review for downgrade. As reported in the Troubled Company Reporter-Europe on Feb. 5, 2008, Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'B' from 'B+'. At the same time, it lowered its counterparty credit and financial strength ratings on Scottish Re's operating companies to 'BB' from 'BB+' and also lowered the ratings on all these companies' dependent unwrapped securitized deals by one notch. In addition, S&P placed the ratings on all these companies on CreditWatch with negative implications. SYDNEY STREET: Nine Ratings Put on Negative CreditWatch by Fitch ---------------------------------------------------------------- Fitch Ratings placed nine classes of notes issued by Sydney Street Finance Limited on Rating Watch Negative. Affected notes total EUR376.8 million. These classes are placed on Rating Watch Negative, effective immediately: -- EUR70,000,000 class A1 notes 'AAA'; -- EUR66,700,000 class A2 notes 'AAA'; -- EUR60,000,000 class B notes 'AA+'; -- EUR46,700,000 class C notes 'AA'; -- EUR44,000,000 class D notes 'AA-'; -- EUR26,700,000 class E notes 'A'; -- EUR21,350,000 class F notes 'A-'; -- EUR21,350,000 class G notes 'BBB'; -- EUR20,000,000 class H notes 'BB+'. Sydney Street is a synthetic collateralized debt obligation that references a EUR2.0 billion portfolio of primarily investment grade corporate bonds, referenced via direct investments (50% of the total referenced amount), and through ten inner tranche credit default swaps (30% of the total referenced amount), as well as various asset backed securities (20% of total referenced amount). The transaction is designed to provide credit protection for realized losses on the reference portfolio through a master credit default swap between the issuer and the swap counterparty, KBC Investments Cayman Islands V, Ltd. KBC also has the right, subject to trading guidelines set at the closing of the transaction, to adjust the portfolio via additions, removals, and replacements of reference entities and reference obligations. The ratings of the notes address the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. Fitch's rating actions primarily reflect the negative credit rating migration within the ABS portion of the underlying collateral, which currently comprises 20% of the total portfolio. The ABS exposure consists primarily of structured finance CDOs and residential mortgage-backed securities backed by Alternative-A and subprime mortgages from the 2005, 2006, and 2007 vintages, whose performance has deteriorated in recent periods. Approximately 17.0% of the ABS portion of the portfolio (3.4% of the entire portfolio) carries a current rating of 'CCC+' or lower. Absent any remedial actions on the part of KBC and any further credit deterioration occur in the portfolio, Fitch expects to take negative rating actions. Such actions may be more pronounced on the mezzanine and lower rated classes of notes. SYMMETRY MEDICAL: Delays 2007 Form 10-K Filing to April1 14 ----------------------------------------------------------- Symmetry Medical Inc. disclosed on March 27, 2007, that it was delaying the filing its 2007 Annual Report on Form 10-K with the Securities and Exchange Commission. The Annual Report was due on March 28. The company said that it delayed its 10-K filing in order to provide its Audit committee, independent auditors and management team adequate time to complete work associated with responding to the discovery of accounting irregularities at its Sheffield, UK operating unit, including completing the final review of the required filings. Audit Committee Investigation The investigation by outside counsel under the direction of the Company's Audit Committee, which is substantially complete, indicates that the irregularities were limited to the company's Sheffield operating unit. Appropriate remedial measures either have been, or are in the process of being implemented following the investigation, including the: -- departure or suspension of key personnel at the company's Sheffield operating unit; -- appointment of new management at the Sheffield operating unit; and -- strengthening of internal controls throughout the Company to ensure strict compliance. SEC Informal Inquiry In October 2007, following discovery of the accounting irregularities at the Company's Sheffield operating unit, the Audit Committee self reported the matter to the Staff of the Securities and Exchange Commission and has apprised the Staff of developments since that time. The Staff is currently conducting an informal inquiry into this matter and has requested that the Company voluntarily provide documentation. The company intends to fully cooperate with the SEC. The company is working diligently with its Audit Committee and outside auditors to finalize its review of the financial results. The company will file its Annual Report on Form 10-K for fiscal year 2007, which will include restated financial statements for its fiscal years ended 2005 and 2006, as soon as possible and expects that it will be no later than April 14, 2008. Restatement The company confirms that restatement of the accounting irregularities remains within the previously stated range of US$24 million to US$28 million. Approximately US$10 million of the adjustment relates to the period prior to the acquisition of the Sheffield operating unit in June 2003 and will be reflected in the restated financial statement as an increase to goodwill associated with the Sheffield acquisition, with the remainder reflected as a reduction to earnings. Furthermore, as a result of the company's annual evaluation of goodwill and intangibles, the Company will recognize a non-cash impairment charge of US$33.3 million in the period ended Dec. 29, 2007. This non-cash charge recognizes the impairment to acquired goodwill and intangibles associated with our Sheffield operating unit. The expenses incurred for outside assistance relating to the investigation and restatement process included in 2007 results are approximately US$3.5 million. The company expects these expenses in 2008 to be approximately US$3.0 million. Waiver The company notified its lead bank and lenders of possible violation of covenants contained in its December 14, Amendment and Waiver to the company's Amended Credit Agreement. The company has secured a second waiver from its lenders to the incremental covenants included in the Dec. 14, 2007 Amendment, which waiver includes an extension for the filing until April 14, 2008. CEO's Comments Brian Moore, President and Chief Executive Officer, said, "We are in the final stages of this episode and are working diligently to file our financial results no later than April 14. Our finance team is fully committed to the accurate completion of our financials and we believe this updated timetable is achievable. Our business continues to experience the positive effects of the strengthened overall orthopedic market and the order volume we have experienced in early 2008 continues to be very strong." Financial Guidance The following estimates regarding 2008 revenue guidance are based on current market conditions and foreign currency comparisons and are forward- looking. Actual results may differ materially and we refer you to the statement on forward-looking statements appearing at the end of this press release. The company confirmed its full year 2008 revenue guidance to be in the range of US$350 million to US$360 million. Notice of Default In a press release dated Oct. 4, 2007, the company said that based on the initial review of the company's Audit Committee regarding apparent improper accounting activities at its Sheffield, UK operating unit, management estimated that the overstatement of revenue and income before taxes for the entire 9-year period amounts to approximately US$12 million to US$16 million. The Audit Committee said that it was necessary for the company to restate its financial statements for the periods subsequent to the date of the Sheffield, UK acquisition. As a result, the Company's historic financial statements for those periods can no longer be relied upon. As a result of these events, the company's lead bank has informed the company that an event of default has occurred under the company's credit agreement. On Oct. 10, 2007, the company entered into a forbearance agreement with Wachovia Bank, National Association, as Administrative Agent, Issuing Lender, Swingline Lender, and Lender, General Electric Capital Corporation, as Syndication Agent and Lender, RBS Citizens, N.A., as Documentation Agent and Lender, Antares Capital Corporation, Navigator CDO 2004, LTD, Fifth Third Bank, National City Bank, Wells Fargo HSBC Trade Bank, N.A., The Northern Trust Company, and Comerica Bank, as Lenders. Pursuant to the Forbearance Agreement the Lenders have agreed to forbear, until Jan. 7, 2008, from exercising their rights and remedies available to them under the Credit Agreement with respect to the events of default, including their right to accelerate the financial obligations of the company under the Credit Agreement. During the Forbearance Period, revolving loans, swingline loans and letters of credit will not be available to the company. Also, upon the expiration of the applicable interest period for each of the Company's LIBOR loans, the LIBOR loans will convert to base rate loans. About Symmetry Medical Based in Warsaw, Indiana, Symmetry Medical Inc. (NYSE: SMA) - http://www.symmetrymedical.com/-- provides implants and related instruments and cases to the orthopedic device industry. The company also designs, develops and produces these products for companies in other segments of the medical device market, including arthroscopy, dental, laparoscopy, osteobiologic and endoscopy sectors and provides limited specialized products and services to non-healthcare markets, such as the aerospace market. The company has operations in the United Kingdom, Ireland, France, Switzerland and Malaysia. * Fitch Says Tight Lending Criteria Threatens UK RMBS ----------------------------------------------------- Fitch Ratings said that the gathering pace of tightening lending criteria in the UK mortgage market could have negative asset performance consequences across the wider RMBS market. However, these developments should not have any immediate, negative impact on UK RMBS ratings. The credit crunch has already impacted the UK non-conforming RMBS market in terms of product withdrawals and re-pricing. Now, however, it has started to impact the mainstream mortgage market with conforming lenders tightening criteria at the riskier end of their product ranges, most noticeably with respect to loan-to-value mortgages. Nevertheless, Fitch says that its rating outlook for transactions remains unchanged. Ratings are expected to remain stable for conforming, buy-to-let and most non-conforming RMBS, with the exception of more recent vintage non-conforming transactions, which have a general negative rating outlook. "Existing UK RMBS with higher exposures to such mortgage types can be expected to see relatively lower prepayment rates and higher arrears levels. Nevertheless no downgrades of UK conforming RMBS are expected in the foreseeable future as a result of this," says Gregg Kohansky, Senior Director and Head of the EMEA RMBS team at Fitch. Over the past several years, mainstream and non-conforming mortgage lenders looking to achieve origination growth targets loosened their underwriting criteria (for example, allowing higher LTV or debt-to-income levels). While this 'criteria creep' has yet to bring about significant increases in arrears and repossessions in RMBS backed by mortgages originated by these lenders, such mortgages originated at the fringe of the risk spectrum are likely to perform worse in a general economic downturn. Due to current market conditions, mainstream lenders have been withdrawing and/or re-pricing many of their higher LTV mortgages. This 'reverse criteria creep' has affected prospective first-time buyers who will not only need to fund more of their house purchase through equity deposits, but will also need to pay a larger rate premium for taking out such a product in the first place. According to the UK's Council of Mortgage Lenders, the average FTB now needs to put down 12% in equity, versus 10% in December 2007. Products that allowed borrowers to take out a high LTV mortgage combined with unsecured borrowings have also largely disappeared from the market. Furthermore, existing mainstream borrowers on such high LTV mortgages and who are coming off short 'teaser' rate periods and looking to refinance could find it more difficult to locate cheaper mortgage deals than before. Staying with their existing borrower could result in a mortgage payment shock, given the much higher levels of lender standard variable rates. Following recent increases in GBP LIBOR (current LIBOR-Bank of England base rate define differential is now 75bp), some lenders apparently have not been passing on policy rate cuts to borrowers, as many mainstream lenders fund in the interbank lending market. * Fitch Says FGIC & XLCA Ratings Cuts Won't Affect European ABCP ---------------------------------------------------------------- Fitch Ratings confirmed that there is no immediate impact on European asset-backed commercial paper conduit ratings following the downgrade of Financial Guaranty Insurance Company (FGIC) to 'BBB' from 'AA' and the downgrade of XL Capital Assurance (XLCA) to 'BB' from 'A'. There is minimal exposure to these two monoline guarantors in European ABCP conduits rated by Fitch; therefore, these downgrades have no significant impact on European conduit ratings. Generally, exposure to monoline guarantors in ABCP conduits comes via monoline insurance 'wraps' on particular securities purchased by ABCP conduits. Securities-arbitrage conduits usually benefit from dynamic credit enhancement; thus, if the credit quality of the underlying portfolio of securities deteriorates, more credit enhancement is provided. If more credit enhancement is not provided, the conduit will be unable to issue further CP and must use its liquidity support to redeem maturing CP. ABCP conduits can also be exposed to monoline guarantors where monolines are providers of credit enhancement; however, this does not impact any European conduits rated by Fitch. * BOND PRICING: For the Week March 24 to March 28, 2008 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- HTM Sport und Freizeitgerate AG 8.500 02/01/14 EUR 60.97 Immofinanz Immobilien Anlagen AG 2.750 01/20/14 EUR 74.58 Kommunal Kredit Austria AG 0.500 03/15/19 CDN 65.42 0.250 10/14/26 CDN 40.15 Raiffeisen Centrobank AG 9.250 12/19/08 EUR 62.23 Republic of Austria 4.000 06/22/22 EUR 75.71 1.740 08/04/25 EUR 65.75 0.000 10/10/25 EUR 63.70 BULGARIA -------- Petrol AD Sofia 8.375 10/26/11 EUR 74.00 FINLAND ------- M-Real Serla 7.250 04/01/13 EUR 75.71 Muni Finance PLC 1.000 03/09/13 AUD 73.44 0.500 04/26/13 AUD 70.73 1.000 11/21/16 NZD 57.78 1.000 10/30/17 AUD 56.49 1.000 02/27/18 AUD 55.78 0.500 09/24/20 CDN 61.96 0.250 06/28/40 CDN 20.74 FRANCE ------ Alcatel S.A. 4.750 01/01/11 EUR 14.31 Altran Technologies S.A. 3.750 01/01/09 EUR 12.02 Calyon 6.000 06/18/47 EUR 46.37 CAP Gemini S.A. 2.500 01/01/10 EUR 51.76 1.000 01/01/12 EUR 43.90 Club Mediterranee S.A. 3.000 11/01/08 EUR 66.11 4.375 11/01/10 EUR 47.42 Europcar Groupe SA 8.130 05/15/14 EUR 65.90 Havas S.A. 4.000 01/01/09 EUR 10.62 Infogrames Entertainment S.A. 1.500 04/01/09 EUR 0.71 Ingenico 2.750 01/01/12 EUR 19.64 Maurel & Prom 3.500 01/01/10 EUR 20.55 Publicis Group 0.750 07/17/08 EUR 28.86 1.000 01/18/18 EUR 42.09 Rhodia S.A. 0.500 01/01/14 EUR 35.53 Scor S.A. 4.125 01/01/10 EUR 2.08 Soc Air France 2.750 04/01/20 EUR 23.42 Soitec 4.625 12/20/09 EUR 4.04 Theolia S.A. 2.000 01/01/14 EUR 22.76 Wavecom S.A. 1.750 01/01/14 EUR 20.70 Wendel Invest S.A. 2.000 06/19/09 EUR 42.88 4.880 05/26/16 EUR 74.96 4.380 08/09/17 EUR 68.81 GERMANY ------- KfW Bankengruppe 0.500 10/30/13 AUD 68.54 0.500 12/19/17 EUR 68.34 1.250 07/07/20 EUR 72.14 5.000 07/21/25 EUR 74.37 5.000 09/01/25 EUR 71.55 Landeskreditbank Baden- Wuerttemberg Foerderbk 0.500 05/10/27 CDN 44.92 Landwirtschaftliche Rentenbank AG 1.000 03/29/17 NZD 56.29 GREECE ------ Hellenic Republic 0.990 07/17/24 EUR 69.17 ICELAND ------- Kaupthing Bank 7.130 05/19/16 EUR 69.78 6.130 10/04/16 EUR 74.87 6.130 10/04/16 EUR 102.34 6.500 02/03/45 EUR 50.50 IRELAND ------- Banesto Finance Plc 6.170 11/07/37 EUR 6.12 Depfa ACS Bank 0.500 03/03/25 CDN 49.19 0.250 07/08/33 CDN 28.27 Magnolia Finance IV Plc 1.050 12/20/45 US$ 20.27 Ono Finance II 8.000 05/16/14 EUR 71.42 ITALY ----- Risanamento S.p.A. 1.000 05/10/14 EUR 52.85 LUXEMBOURG ---------- Hayes Lemmerz Finance 8.250 06/15/15 EUR 70.13 Nell AF S.A. 8.380 08/15/15 EUR 72.70 8.380 08/15/15 EUR 73.07 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 69.81 0.500 02/24/25 CDN 49.23 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 Kazkommerts International B.V. 6.880 02/13/17 EUR 72.12 8.500 06/13/17 US$ 74.13 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 Montell Finance B.V. 8.100 03/15/27 US$ 66.53 Ned Waterschapbk 6.000 06/01/35 EUR 70.77 6.500 08/15/35 EUR 67.14 6.000 06/30/45 EUR 61.80 NXP B.V. 8.630 10/15/15 EUR 73.54 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 71.73 Norske Skogindustrier ASA 7.000 06/26/17 EUR 65.52 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 75.48 5.880 08/14/31 GBP 69.11 Anglian Water Finance Plc 2.400 04/20/35 GBP 49.10 BAA Plc 5.130 02/15/23 GBP 71.52 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 75.07 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 Jaztel Plc 5.000 04/29/10 EUR 70.23 National Grid Gas Plc 1.754 10/17/36 GBP 39.85 1.771 03/30/37 GBP 39.83 Rexam Plc 6.750 06/29/67 EUR 73.14 Royal BK Scotland 7.000 06/09/25 EUR 63.33 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. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jason Nieva, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla and Marites Claro, Editors. Copyright 2008. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. 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