/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080416.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, April 16, 2008, Vol. 9, No. 75 Headlines A U S T R I A BATMAZ BAU: Claims Registration Period Ends May 14 CASA DI PIETRA: Claims Registration Period Ends May 14 DESSOUKI RAMADAN: Claims Registration Period Ends May 15 GILLHOFER BAU: Claims Registration Period Ends May 6 KRANCZ FERTIGHAUS: Creditors' Meeting Slated for April 28 STRANDHOTEL ALICE: Claims Registration Period Ends April 21 B E L G I U M POLYONE CORPORATION: Selling US$80-Mln Sr. Notes at 99.75% Par POLYONE CORP: S&P Holds B+ Rating on US$80 Million Notes SOLUTIA INC: Judge Beatty OKs Bank of New York Settlement Pact SOLUTIA INC: Court Approves Bayer & Lanxess Claims Settlement SOLUTIA INC: Court Approves Quinn Emanuel as Conflicts Counsel F I N L A N D M-REAL CORPORATION: Names Juha Laine as Investor Relations VP F R A N C E DELPHI CORP: Shareholder Settlement Hearing Set for April 29 G E R M A N Y ACRYLTECH GMBH: Creditors Must File Claims by May 15 ALERIS INTERNATIONAL: Moody's Revises Outlook to Negative BERRY PLASTICS: S&P Rates US$530.6 Million Senior Notes at BB- BETT & BAD: Claims Registration Period Ends May 6 BLUME BAU: Creditors Must File Claims by May 15 BRUNSWIG & HEINSOHN: Claims Registration Period Ends May 9 CADO GESCHENKARTIKEL: Claims Registration Period Ends May 6 CATEWALKER GMBH: Creditors Must File Claims by May 15 DETEKTEI SIX: Claims Registration Period Ends May 9 ECONOMY CONSULT: Creditors Must File Claims by May 15 EMBALADO GMBH: Creditors Must File Claims by May 15 ERWIN POPP: Creditors Must File Claims by May 15 FAHRSCHULE GOETTIG: Claims Registration Period Ends May 9 FISCHER & PARTNER: Claims Registration Period Ends May 6 GM-STONE GMBH: Claims Registration Period Ends May 6 H & H VERMOEGENSVERWALTUNGS: Claims Registration Ends May 6 HALLER PLASTIC: Claims Registration Period Ends May 9 HEIDE BETTENWAREN: Creditors Must File Claims by May 15 HTM SPORT: S&P Cuts Debt's Rating to 'CCC' from 'CCC+' IMU GEBAUDEREINIGUNG: Claims Registration Period Ends May 8 KRASSOWSKI GMBH: Claims Registration Ends May 6 MAISCH SPEDITION: Claims Registration Period Ends May 9 PRIVATBRAUEREI BORCHERT: Claims Registration Ends May 6 QUICK FOTO: Claims Registration Ends May 6 R & R BAU: Claims Registration Ends May 6 RIO BETRIEBSGESELLSCHAFT: Claims Registration Ends May 6 ROSNER'S BAUSERVICE: Claims Registration Ends May 6 TELEHAUS BREMEN: Creditors' Meeting Slated for May 15 VECTOR MANAGEMENT: Claims Registration Period Ends May 5 WILHELM MEINEKE: Claims Registration Period Ends May 5 I R E L A N D EIRLES TWO: Moody's May Further Cut Junk Notes After Review FREESTAR TECH: Posts US$4.5 Million Net Loss in Second Quarter IRALCO: 500 Jobs Likely to Be Lost as Firm Undergoes Liquidation IRALCO: Enterprise Minister Says Gov't Will Help to Keep Jobs SMURFIT KAPPA: Brings In Thomas Brodin to Join Board SMURFIT KAPPA: Fitch Puts Long-Term Issuer Default Rating at BB K A Z A K H S T A N ARAL GAS: Creditors Must File Claims by May 19 CASPIAN RESOURSES: Claims Deadline Slated for May 19 CENTRE STROY: Claims Filing Period Ends May 19 EVEREST KZ: Creditors' Claims Due on May 18 OIL MARKET: Claims Registration Ends May 20 OIL TECHNO: Claims Deadline Slated for May 20 VITAS-2001 LLP: Claims Filing Period Ends May 18 VOSTOK TRANS: Creditors' Claims Due on May 18 K Y R G Y Z S T A N NOVO-PHARM CJSC: Creditors Must File Claims by May 18 L U X E M B O U R G EVRAZ GROUP: Fitch Puts BB Rating on Prospective US$ Notes Issue EVRAZ GROUP: Moody's Puts (P)Ba3 Rating on Proposed Dollar Notes N E T H E R L A N D S HEAD N.V.: Reports Net Loss of EUR11.15 Mln for Year 2007 HEAD N.V.: S&P Junks Long-Term Corporate Credit Ratings HEAD N.V.: Sets Annual General Meeting on May 28 SUN SAGE: S&P Withdraws BB Long-Term Corporate Credit Rating P O R T U G A L SAGRES STC 2004: Fitch Revises Outlook on Three Notes R U S S I A CERAMICS-S LLC: Creditors Must File Claims by May 15 COMSTAR-UNITED: Shareholders Elect New Board of Directors DMITRIEVSKOE SORT-SEM-OVOSH: Court Starts Bankruptcy Supervision PEREKOPNOE CJSC: Creditors Must File Claims by May 15 PODGORNOE LLC: Saratov Bankruptcy Hearing Slated for June 16 SEVERSTAL OAO: Reorganizes Operations Into Three Divisions SEVERSTAL OAO: Completes US$652-Mln Asset Sale to Arcelor Mittal STROY-MONTAZH-SERVICE: Creditors Must File Claims by May 15 TMK OAO: Unit Gets EUR88.7 Mln Loan to Finance FQM Acquisition TMK OAO: Amendment Pursuit Prompts S&P to Hold BB- Rating TRANS-STROY-SERVICE-2: Court Starts Bankruptcy Supervision YAKUTSK-STROY-MATERIALS: Creditors Must File Claims by May 15 YUNION-NA-AMURE: Court Starts Bankruptcy Supervision Procedure S W E D E N * Sweden Plans Law to Rescue Banks in Case of Crisis U K R A I N E ANT-BUDRECONSTRUCTION: Creditors Must File Claims by April 30 BLIK LLC: Proofs of Claim Deadline Set April 30 CHEMICAL REPAIR: Creditors Must File Claims by April 30 KERAMIK OJSC: Creditors Must File Claims by April 30 OHTYRKA PETROLEUMREFINERY Creditors Must File Claims by April 30 SCIENCE-RESEARCH INNOVATIVE: Creditors' Claim Due by April 30 STARIY DRUZHE: Creditors Must File Claims by April 30 VP OZKV: Creditors Must File Claims by April 30 U N I T E D K I N G D O M ADEVA RENTALS: Taps Joint Administrators from Tenon Recovery ALEXANDER PARTNERSHIP: Taps KPMG as Administrators BRITISH ENERGY: EDF and RWE Emerge Frontrunners of Bidding Race DIOMED HOLDINGS: Hercules to Receive US$6 Million Payment DIOMED HOLDINGS: Inks Settlement Pact with Vascular Solutions ERINACEOUS GROUP: Some Divisions Continue to Trade as Normal FENMARC PREPARED: Brings In Joint Administrators from Deloitte INTERNATIONAL DIAMALT: Creditors' Meeting Slated for April 24 LUDGATE FUNDING: S&P Rates Class S at B with CreditWatch Neg. NATIONAL SCHOOLWEAR: Placed Under Administration NORTHERN ROCK: Fails to Carry Out Cuts On Variable Rates ROO GROUP: Moore Stephens Expresses Going Concern Doubt TITAN EUROPE: S&P Cuts Ratings to Low-B on Two Note Classes TURBO BETA: Moody's Puts Corporate Family Rating at B1 * Fitch Says Some Parts of UK BTL Market Face More Risk * S&P Downgrades Ratings on 14 Tranches from Different Issuers * S&P Takes CreditWatch Actions on 105 European Synthetic CDOs ********* ============= A U S T R I A ============= BATMAZ BAU: Claims Registration Period Ends May 14 -------------------------------------------------- Creditors owed money by LLC BATMAZ Bau (FN 287245w) have until May 14, 2008, to file written proofs of claim to court-appointed estate administrator Thomas Steiner at: Mag. Thomas Steiner c/o Dr. Renate Steiner Weihburggasse 18-20/50 1010 Vienna Austria Tel: 513 53 63 E-mail: steiner.steiner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 28, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 18, 2008 (Bankr. Case No. 2 S 36/08v). Renate Steiner represents Mag. Steiner in the bankruptcy proceedings. CASA DI PIETRA: Claims Registration Period Ends May 14 ------------------------------------------------------ Creditors owed money by LLC CASA DI PIETRA Naturstein & Co KEG (FN 210967x) have until May 14, 2008, to file written proofs of claim to court-appointed estate administrator Stephan Riel at: Dr. Stephan Riel c/o Dr. Johannes Jaksch Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on May 28, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 18, 2008 (Bankr. Case No. 2 S 37/08s). Johannes Jaksch represents Dr. Riel in the bankruptcy proceedings. DESSOUKI RAMADAN: Claims Registration Period Ends May 15 -------------------------------------------------------- Creditors owed money by KEG Dessouki Ramadan (FN 168819p) have until May 15, 2008, to file written proofs of claim to court- appointed estate administrator Eberhard Wallentin at: Dr. Eberhard Wallentin Porzellangasse 4-6 1090 Wien Austria Tel: 313 74-0 Fax: 313 74-80 E-mail: office@ksw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on May 29, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 18, 2008 (Bankr. Case No. 5 S 23/08d). GILLHOFER BAU: Claims Registration Period Ends May 6 ---------------------------------------------------- Creditors owed money by LLC Gillhofer Bau und Transport (FN 220505y) have until May 6, 2008, to file written proofs of claim to court-appointed estate administrator Kurt Bernegger at: Dr. Kurt Bernegger c/o Mag. Waltraud Kohlfuerst Jacquingasse 21 1030 Vienna Austria Tel: 799 15 80/0 Fax: 796 59 14 E-mail: kanzlei@bernegger-wt.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on May 20, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 18, 2008 (Bankr. Case No. 4 S 35/08m). Waltraud Kohlfuerst represents Dr. Bernegger in the bankruptcy proceedings. KRANCZ FERTIGHAUS: Creditors' Meeting Slated for April 28 --------------------------------------------------------- Creditors owed money by LLC KRANCZ FERTIGHAUS (FN 185305h) are encouraged to attend the creditors' meeting at 11:15 a.m. on April 28, 2008. The creditors' meeting will be held at: The Land Court of Eisenstadt Hall F Eisenstadt Austria Headquartered in Ollersdorf im Burgenland, Austria, the Debtor declared bankruptcy on March 18, 2008 (26 S 30/08a). Thomas Deschka serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Thomas Deschka Hauptplatz 11 Atrium Top 16 A 7400 Oberwart Austria Tel: 03352/31543 Fax: 03352/31543-20 E-mail: deschka@lawcenter.at STRANDHOTEL ALICE: Claims Registration Period Ends April 21 ----------------------------------------------------------- Creditors owed money by LLC Strandhotel Alice, Schilcher & Co KG (FN 20177y) have until April 21, 2008, to file written proofs of claim to court-appointed estate administrator Martin Mutz at: Mag. Martin Mutz Gabelsbergerstrasse 5 9020 Klagenfurt Austria Tel: 0463/591 638 Fax: 0463/591638-20 E-mail: martin.mutz@wmwp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on April 28, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Meeting Room 225 Second Floor Klagenfurt Austria Headquartered in St. Kanzian am Klopeinersee, Austria, the Debtor declared bankruptcy on March 18, 2008 (Bankr. Case No. 41 S 25/08m). ============= B E L G I U M ============= POLYONE CORPORATION: Selling US$80-Mln Sr. Notes at 99.75% Par -------------------------------------------------------------- PolyOne Corporation has agreed to sell US$80 million of its 8.875% senior notes due 2012 to certain institutional investors in an offering exempt from the registration requirements of the Securities Act of 1933 at a price equal to 99.75% of their principal amount. The transaction is expected to close on April 10, 2008, subject to customary closing conditions. The company intends to use the net proceeds from the offering to reduce a portion of the amount of receivables sold under its receivables sale facility. About PolyOne Corp. Headquartered in Ohio, PolyOne Corporation (NYSE: POL) -- http://www.polyone.com/-- provides of specialized polymer materials, services and solutions. PolyOne has regional headquarters in Assese, Belgium and Shanghai, China. POLYONE CORP: S&P Holds B+ Rating on US$80 Million Notes -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' issue rating and '4' recovery rating on PolyOne Corp.'s US$80 million issuance of 8.875% unsecured notes due 2012, indicating the expectation for average (30% to 50%) recovery in the event of a payment default. PolyOne will use the proceeds of these notes to pay down a portion of its outstanding debt. The notes are an add-on to PolyOne's 8.875% senior unsecured notes, which the company issued on April 23, 2002. The issue and recovery ratings on PolyOne's 8.875% existing senior unsecured notes and 7.5% unsecured debentures remain unchanged at 'B+' (the same as the corporate credit rating on the company) and '4', respectively. PolyOne also has a guarantee and security agreement and several unsecured debt issuances, which we do not rate. The corporate credit rating on the company is 'B+' and the outlook is stable. "The ratings on PolyOne reflect a weak business profile, low margins, and a highly leveraged financial profile," said Standard & Poor's credit analyst Paul Kurias. "Partially offsetting factors include the company's leading market positions in several plastic product lines and its integration into chlor-alkali through an affiliate company." SOLUTIA INC: Judge Beatty OKs Bank of New York Settlement Pact -------------------------------------------------------------- The Hon. Prudence C. Beatty of the U.S. Bankruptcy Court for the Southern District of New York approved Solutia Inc.'s settlement agreement with holders of Solutia's 11.25% Senior Secured Notes due July 2009, and the Bank of New York, as successor indenture trustee for the 2009 Notes. The Settlement will resolve the disputes that have arisen between the parties regarding the allowed amount of Claim No. 6210 filed by the Bank of New York on behalf of the Noteholders. Solutia will pay BNY $220,500,000 in cash plus all accrued but unpaid interest on the 2009 Notes through the Effective Date, at the rate of 11.25% per annum on the face amount of 2009 Notes. If the effective date of Solutia's reorganization plan occurs before the Settlement is approved, Solutia will pay about US$210,000,000 plus accrued unpaid interest through the Effective Date. Committee Wants Settlement Delayed The Official Committee of Unsecured Creditors asked the Court to delay approval of the 2009 Settlement, in light of the then pending high-stakes litigation between the Debtors and their exit lenders. It argued that the Debtors must not be married to a financial arrangement that could preclude restructuring alternatives that may prove necessary, if the Debtors fail to resolved their disputes with their exit lenders Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. The Debtors, however, have reached a settlement with the Exit Lenders. The Creditors Committee, however, had said the 2009 Settlement, should it be ripe for adjudication, requires key modifications. It noted that the 2009 Settlement, as drafted, materially impairs the Committee's rights with respect to the ultimate allowance of the 2009 Noteholders' claim in the event that the 2009 Settlement is declared void by the settling parties, or not approved by the Court. The Committee previously sought the Court's determination that the 2009 Noteholders will have received an US$12,200,000 of postpetition cash interest payments in excess of the amount they are actually entitled to under Section 506(b) of the Bankruptcy Code. The Court denied the determination request, and the Committee has appealed the Order. The Committee has also filed a motion seeking to increase the 2009 Noteholders' disputed claims reserve under the Plan from US$37,500,000 -- the amount in excess of US$210,000,000 which BNY believes they are entitled to -� by US$12,200,000 on account of the Overpayment. The Committee notes that in the event the 2009 Settlement is declared void, the parties would return to their pre-settlement litigation positions. However, should a distribution have already been made to the 2009 Noteholders that includes an amount equal to the Overpayment, the Committee's rights to the Overpayment would be rendered moot. The Committee also objected to the provision that provides, if the 2009 Settlement is declared void or stayed, the Debtors must establish a reserve funded only with $37,500,000. This provision, according to the Committee, would render the 2009 Settlement moot in the event the Court approves the Reserve Motion. Judge Beatty, however, held "The [Debtors' Settlement] Motion is granted in its entirety and approved in all respects." No objection to the Settlement has been filed by any holder of the 2009 Notes. Accordingly, the Court held that BNY is authorized to settle the claims on behalf of the holders of the 2009 Notes and will have no liability to any holder of the 2009 Notes as a result of its entry into the Settlement. Background to the BoNY Dispute As reported in the Troubled Company Reporter on May 25, 2006, the Court denied approval of the Disclosure Statement explaining the Plan of Reorganization filed by Solutia and its debtor- affiliates. BNY is the indenture trustee for the 11.25% Senior Secured Notes due 2009 issued by Solutia. BNY complains that as described in the Disclosure Statement, the Debtors' Plan of Reorganization purports to impair the Senior Secured Notes, which are designated in Class 3. On Nov. 1, 2007, the TCR said John K. Cunningham, Esq., at White & Case LLP, in New York, appeared before the Court on behalf of Bank of New York, regarding a US$223,000,000 claim by the bank on account of the 11.25% Senior Secured Notes due 2009 issued by Solutia Inc. or its predecessor. Bank of New York serves as indenture trustee for the Senior Notes. Judge Beatty told BoNY's counsel, John K. Cunningham, Esq., at White & Case LLP, "Pigs become hogs and then hogs get slaughtered. And then eaten. What you're going for is so piggy that you risk getting nothing." At the hearing, which was held on Oct. 31, 2007, Judge Beatty urged Solutia to settle its dispute with Bank of New York, noting that the claim was the biggest hurdle to approval of Solutia's reorganization plan. "There are no cases that I have found which remotely approximate the application of these principles to a case of this financial magnitude," Judge Beatty stated. Judge Beatty said if no settlement is reached she will rule on the matter in about two weeks. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on March 3, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Solutia Inc. to 'B+' from 'D', following the company's emergence from bankruptcy on Feb. 28, 2008, and the implementation of its financing plan. The outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. SOLUTIA INC: Court Approves Bayer & Lanxess Claims Settlement ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved the stipulation signed by Solutia Inc. with LANXESS Corporation, Bayer AG, Bayer MaterialScience LLC and Bayer Corporation. As reported in the Troubled Company Reporter on Feb. 15, 2008, Bayer acquired Monsanto Company's styrenics business pursuant to an Asset Purchase Agreement dated Dec. 31, 1995. Monsanto later assigned the APA to Solutia Inc. in September 1997, as part of Solutia's spin off from Monsanto. Solutia and Bayer were parties to a Resimene Lease and Operating Agreement dated July 29, 1999. Solutia terminated the Resimene Agreement on June 28, 2000, with a termination fee of US$2,922,300, payable to Bayer in 18 monthly installments. As of the bankruptcy filing, Solutia owed US$432,761 to Bayer for the two remaining installment payments. Bayer and Monsanto were also parties to an Indian Orchard Lease and Services Agreement dated Oct. 31, 1995. The agreement was assigned to Solutia as part of the Spin Off. Bayer terminated the Indian Orchard Agreement, and Solutia agreed to a termination fee of US$1,191,101, payable by Bayer in 18 monthly installments. As of the bankruptcy filing, Bayer owed US$397,034 for the six remaining installment payments. As of the bankruptcy filing, Bayer also owed Solutia US$295,771 for certain purchases of adipic acid. Since the bankruptcy filing, LANXESS Corporation, Bayer AG, Bayer MaterialScience LLC, and Bayer, have undergone corporate reorganizations, and as a result, Lanxess currently holds certain claims of Bayer and MaterialScience. Solutia objected to several of Bayer/Lanxess Parties Claims for damages arising under the APA. Solutia also filed Schedule No. 10115234 for $339,771, for amounts owed by Solutia to Bayer Polymers LLC, now known as MaterialScience. Settlement Agreement Following arm's-length negotiations regarding the resolution and treatment of the Claims, the parties have agreed, among other things, that Bayer and Lanxess will be entitled to recoup or offset US$372,034 against the US$397,034 owed to Solutia for the Indian Orchard Termination Fee. Bayer/Lanxess parties will pay Solutia US$320,771, representing the US$25,000 balance of the Indian Orchard Termination Fee after giving ffect to the Set-Off, plus the US$295,771 owed for adipic acid purchases. Also Solutia's Objection will be deemed withdrawn with respect to the Claims; and upon approval of the Stipulation, Solutia will be required to reserve the amount of the Allowed Claim in the Disputed Claims Reserve on account of the Claims. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on March 3, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Solutia Inc. to 'B+' from 'D', following the company's emergence from bankruptcy on Feb. 28, 2008, and the implementation of its financing plan. The outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. SOLUTIA INC: Court Approves Quinn Emanuel as Conflicts Counsel -------------------------------------------------------------- Solutia Inc. and its Debtor-affiliates obtained approval from the U.S. Bankruptcy Court for the Southern District of New York's to employ Quinn Emanuel Urquhart Oliver & Hedges LLP, as their special litigation and conflicts counsel for matters arising in or related to the Debtors' Chapter 11 cases, nunc pro tunc to Jan. 22, 2008. The Troubled Company Reporter said on Feb. 6, 2008, that according to Rosemary L. Klein, general counsel of Solutia and an authorized officer of each of the other Debtors, because of Quinn Emanuel's experience in matters concerning complex bankruptcy and commercial litigation, the firm is well-suited to deal effectively with many of the potential legal issues that may arise in the Debtors' Chapter 11 cases. As special counsel, Quinn Emanuel will: (a) advise the Debtors regarding their ability to initiate actions to protect their rights under certain Oct. 25, 2007 Commitment Letter -- with respect to Solutia's exit financing -- and related documents and enforce the Commitment Parties' legally binding commitments for the benefit of their estates; (b) advise the Debtors regarding their ability to initiate actions to protect their rights as against the Debtors' postpetition lenders; and (c) commence and conduct any and all litigation necessary or appropriate to assert rights held by the Debtors, protect assets of the Debtors' Chapter 11 estates or otherwise further the goal of completing the Debtors' successful reorganization. The Debtors will pay Quinn Emanuel in accordance with its standard hourly rates and reimburse the firm of actual and necessary expenses. The firm informs the Court that its rates are subject to period adjustment to reflect economic and other conditions. The firm's current hourly rates are: Partners US$660 - US$950 Other Attorneys US$380 - US$950 Legal Assistants US$250 - US$280 Quinn Emanuel has not, does not, and will not represent any entities or any of their respective affiliates or subsidiaries, in matters related to the Debtors, their Chapter 11 cases, or other matters directly adverse to the Debtors during the pendency of their cases, Susheel Kirpalani, Esq., a member of Quinn Emanuel, assures the Court. Mr. Kirpalani asserts that the firm is a disinterested person, as the term is defined by Section 101(14) of the Bankruptcy Code. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on March 3, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Solutia Inc. to 'B+' from 'D', following the company's emergence from bankruptcy on Feb. 28, 2008, and the implementation of its financing plan. The outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. ============= F I N L A N D ============= M-REAL CORPORATION: Names Juha Laine as Investor Relations VP ------------------------------------------------------------- M-real Corporation appointed Juha Laine as Vice President, Investor Relations and Communications, effective April 14, 2008. Mr. Laine has held various posts in M-real since 2002, including those of Business Analyst and, most recently, Assistant Vice President, Investor Relations, M-real Corporation. In his new post, Mr. Laine will be responsible for M-real's investor relations and corporate communications. Anne-Mari Achren, previously Vice President, Communications, M- real, has been appointed Group Senior Vice President, Communications, of Metsaliitto Group as of April 1, 2008. About the M-real Oyj Headquartered in Espoo, Finland, M-real Corp. -- http://www.M-Real.com/-- produces and distributes coated and uncoated fine papers for printing and packaging industries. The company has operations in Brazil and Mexico. * * * As of Feb. 8, 2008, M-real Oyj carries a B2 long-term corporate family rating and a B2 senior unsecured debt rating from Moody's, which said the outlook is negative. Standard & Poor's rates the company's long-term foreign and local issuer credit at B+ and its short-term foreign and local issuer credit at B. The outlook is negative. =========== F R A N C E =========== DELPHI CORP: Shareholder Settlement Hearing Set for April 29 ------------------------------------------------------------ The Hon. Gerald E. Rosen of the U.S. District Court for the Eastern District of Michigan, Southern Division, will convene a hearing on April 29, 2008, to decide, among other things, final Court approval of a settlement providing for a recovery of US$38,250,000 to be paid by Deloitte & Touche LLP, Delphi Corp.'s outside auditor; and on the dismissal of claims against Deloitte & Touche. District Court Certifies Class The Court has preliminarily certified a class consisting of all persons and entities who purchased or acquired publicly traded securities issued by Delphi Trust I and Delphi Trust II between March 7, 2000, and March 3, 2005, inclusive, and who suffered damages thereby, including all entities who acquired shares of Delphi common and preferred stock in the secondary market and debt securities in Delphi. The case is in In re Delphi Securities, Derivative and ERISA Litigation, MDL No. 1725, Case No. 05-md-1725. The District Court also preliminarily approved the Deloitte & Touche Settlement providing for a recovery of US$38,250,000 to be paid by Deloitte & Touche LLP, Delphi Corp.'s outside auditor during the Class Period. The Class will receive an interest on the Deloitte & Touche Settlement Amount. Copies of the full printed Deloitte & Touche Notice and the Proof of Claim and Release form may be obtained at http://www.delphiclasssettlement.comor by contacting: In re Delphi Corporation Securities Litigation Settlement c/o The Garden City Group, Inc. Claims Administrator P.O. Box 9185 Dublin, OH 43017-4185 Inquiries may be made to the four co-lead counsel for the Lead Plaintiffs in the Securities Litigation: * Bradley E. Beckworth, Esq. Nix, Patterson & Roach, L.L.P. 205 Linda Drive Daingerfield, Texas 75638 * Sean Handler, Esq. Schiffrin Barroway Topaz & Kessler, LLP 280 King of Prussia Road Radnor, PA 19087 * Jeffrey N. Leibell, Esq. Bernsten Litowitz Berger & Grossmann, LLP 1285 Avenue of the Americas New York 10019 * Stuart Grant, Esq. Grant & Eisenhofer P.A. Chase Manhattan Centre Suite 2100 1201 N. Market St. Wilmington, DE 19801 Further information may also be obtained by writing to the Claims Administrator or calling 1-800-918-0998 toll-free. The Securities Litigation has been resolved with respect to the Debtors pursuant to the Court-approved Multidistrict Litigation Settlements between the Debtors and the Lead Plaintiffs. Under the terms of the MDL Settlements, the Debtors granted the Lead Plaintiffs claims that will be satisfied through Delphi's confirmed Plan of Reorganization. To participate in the Deloitte & Touche Settlement, parties-in- interest must have submitted a valid proof of claim in connection with the MDL Settlements or submit a valid proof of claim to the Claims Administrator postmarked not later than May 30, 2008. The deadline for filing objection and the receipt of requests for exclusions is April 15, 2008. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on March 19, 2008, Standard & Poor's Ratings Services said it still expects to assign a 'B' corporate credit rating to Delphi Corp. if the company emerges from bankruptcy in early April. This rating expectation is consistent with S&P's commentary on Jan. 9, 2008. ============= G E R M A N Y ============= ACRYLTECH GMBH: Creditors Must File Claims by May 15 ---------------------------------------------------- Creditors of AcrylTech GmbH have until May 15, 2008, to register their claims with court-appointed insolvency manager Carin Hoesel-Eichinger. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 26, 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 Ingolstadt Meeting Hall 28 I Schrannenstr. 3 85049 Ingolstadt 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: Carin Hoesel-Eichinger Marie-Curie-Strasse 6 85055 Ingolstadt Germany The District Court of Ingolstadt opened bankruptcy proceedings against AcrylTech GmbH on Mach 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AcrylTech GmbH Am Lohsaum 1 85139 Wettstetten Germany ALERIS INTERNATIONAL: Moody's Revises Outlook to Negative --------------------------------------------------------- Moody's Investors Service revised the rating outlooks for Aleris International Inc., and Aleris Deutschland to negative from stable. At the same time, Moody's affirmed Aleris's B2 corporate family rating, the B2 rating on the senior secured term loans at Aleris International and Aleris Deutschland Holding GMBH due 2013, the B3 rating on its 9% senior unsecured notes due 2014, and the Caa1 rating on its 10% senior subordinated notes due 2016. The change in outlook reflects the company's ongoing performance challenges in light of weak end market conditions, principally in the U.S. residential and transportation markets, the continued high degree of leverage under which the company is operating, and expectations for limited to negative free cash flow over the near term. The outlook also incorporates Aleris's earnings sensitivity to volume levels, which Moody's expects to decline again in 2008, although not by the magnitude seen in 2007. The downside risks associated with a continued deterioration in housing starts, residential investment, and transportation spending, as well as a more broad-based global contraction, are important factors in the rating. Given Aleris's limited history as a combined entity following the Corus acquisition in 2006, as well as its subsequent bolt-on acquisitions in 2007, a pro forma comparison of year-over-year shipment levels is challenging. However, Moody's estimates that North American building and construction volumes were down in the mid-teens during the fourth quarter of 2007, challenging Aleris's sales and operating margins. As a result of these difficult operating conditions, the company's interest expense exceeded its operating earnings in FY2007. Considering the "margin on metal" business model construct that Aleris operates under, Moody's views Aleris's ability to increase margins as limited resulting in the need to record substantive volume improvements for earnings improvement, which is viewed as unlikely over the near term. However, we recognize the company's efforts to improve its fixed cost position in 2008, including announcing multiple facility closures in Tennessee, Ohio, Virginia, and Ontario. Aleris's B2 corporate family rating reflects its high degree of financial leverage, the sensitivity of its earnings to volume levels, the ongoing execution risks for timely deleveraging, particularly for a company with relatively thin margins and high sensitivity to volume levels, and Aleris's propensity towards acquisitions, which Moody's believes will be a continuing impetus for growth over the intermediate term. The rating also considers the potential for increased supply of extruded products from offshore sources, as well as competition from other products. At the same time, the ratings recognize Aleris's strong market position as a major global supplier of aluminum rolled products, its ability to pass through most of the cost pressures resulting from changes in raw material prices, and its diverse geographic and end market exposure, which helps protect the company from regional or product specific weakness, demonstrated this year as stronger European markets partially offset weakness in the North American residential and transportation markets. Also embedded in the rating is Moody's expectation that Aleris will apply its free cash flow generation to deleverage over the next several years. The B2 corporate family rating also considers the level of liquidity available to Aleris under its asset backed bank facility, which were it to dissipate significantly, could negatively impact the rating. Moody's last rating action on Aleris was November 29, 2006, when its corporate family rating was downgraded to B2 from B1 following its merger with Texas Pacific Group in a leveraged transaction. Headquartered in Beachwood, Ohio, Aleris is a leading global producer of aluminum rolled products. In 2007, the company generated revenues of approximately US$6.0 billion. The company's international segment provides aluminum metal to customers through both tolling arrangements and product sales, and the types of scrap that it recycles are similar to those processed by Aleris� U.S. recycling facilities. In 2004 its five plants have a rated annual capacity of 1.08 billion pounds. The operations include two aluminum recycling and foundry alloy plants in Germany as well as aluminum recycling facilities in Brazil, Mexico and Wales. The segment�s growth is largely a result of its development and use of efficient scrap preparation and recycling technologies that allow high recovery of metal and delivery of a top-quality product. BERRY PLASTICS: S&P Rates US$530.6 Million Senior Notes at BB- -------------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'BB-' and '1' recovery rating to Berry Plastics Corp.'s US$530.6 million first-priority floating-rate senior secured notes due 2015. The 'BB-' and '1' recovery rating indicate the expectation of very high (90%-100%) recovery in the event of a payment default. Proceeds from the proposed notes will be used to refinance the company's existing US$520 million first-lien bridge loan, which was issued to fund the acquisition of Captive Plastics Inc. in February 2008. S&P affirmed all the ratings on Berry, including the 'B' corporate credit rating. The outlook is negative. At Dec. 29, 2007, Evansville, Indiana-based Berry had total debt (adjusted to include capitalized operating leases and unfunded postretirement liabilities) of about US$3.4 billion. "The rating on Berry Plastics Group Inc. and its subsidiary Berry Plastics Corp. reflects the company's highly leveraged financial profile and acquisition driven growth strategy, which offsets its fair business profile with large market shares in niche segments, a well-diversified customer base, and strong customer relationships," said Standard & Poor's credit analyst Liley Mehta. Berry Plastics Inc. -- http://www.berryplastics.com/-- manufactures and markets plastic packaging products. Berry Plastics products include open-top and closed top packaging, polyethylene-based plastic films, industrial tapes, medical specialties, packaging, heat-shrinkable coatings and specialty laminates. The company's 17,000-plus customers range from large multinational corporations to small local businesses. Based in Evansville, Indiana, the company has 71 manufacturing facilities worldwide and nearly 14,000 employees. Aside from the U.S., the company also has locations in Mexico, Canada, Italy, Belgium, and China. BETT & BAD: Claims Registration Period Ends May 6 ------------------------------------------------- Creditors of Bett & Bad Handelsgesellschaft mbH have until May 6, 2008, to register their claims with court-appointed insolvency manager Tanja Kreimer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Muenster Meeting Hall 13 B Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tanja Kreimer Klosterstrasse 33 48703 Stadtlohn Germany Tel: 02563/2083-0 Fax: +492563208320 The District Court of Muenster opened bankruptcy proceedings against Bett & Bad Handelsgesellschaft mbH on March 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bett & Bad Handelsgesellschaft mbH Zwillbrock 20 48691 Vreden Germany BLUME BAU: Creditors Must File Claims by May 15 ----------------------------------------------- Creditors of Blume Bau GmbH have until May 15, 2008, to register their claims with court-appointed insolvency manager Knut Thomas Hofheinz. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hameln Hall 106 Zehnthof 1 31785 Hameln 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: Knut Thomas Hofheinz Am Markte 13 30159 Hannover Germany The District Court of Hameln opened bankruptcy proceedings against Blume Bau GmbH on March 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Blume Bau GmbH Lange Strasse 77 31832 Springe Germany BRUNSWIG & HEINSOHN: Claims Registration Period Ends May 9 ---------------------------------------------------------- Creditors of Brunswig & Heinsohn Stahlblechbau Nachfolger GmbH have until May 9, 2008, to register their claims with court- appointed insolvency manager Dr. Sven-Holger Undritz. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 11, 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 Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg 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. Sven-Holger Undritz Jungfernstieg 51 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Brunswig & Heinsohn Stahlblechbau Nachfolger GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Brunswig & Heinsohn Stahlblechbau Nachfolger GmbH Attn: Sven Dettmann, Manager Billstrasse 222 20539 Hamburg Germany CADO GESCHENKARTIKEL: Claims Registration Period Ends May 6 ----------------------------------------------------------- Creditors of CADO Geschenkartikel GmbH have until May 6, 2008, to register their claims with court-appointed insolvency manager Klaus-Werner Bonow. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Wilhelmshaven Hall 109 Old Building Marktstrasse 15 26382 Wilhelmshaven 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-Werner Bonow Alter Markt 10D 26441 Jever Germany Tel: 04461/2046 Fax: 04461/72220 E-mail: KlausBonow@t-online.de The District Court of Wilhelmshaven opened bankruptcy proceedings against CADO Geschenkartikel GmbH on Feb. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CADO Geschenkartikel GmbH Bahnhofsplatz 1 26382 Wilhelmshaven Germany CATEWALKER GMBH: Creditors Must File Claims by May 15 ----------------------------------------------------- Creditors of CateWalker GmbH & Co.KG have until May 15, 2008, to register their claims with court-appointed insolvency manager Peter Jost. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 16, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Main) Hall 2 Building F Klingerstrasse 20 60313 Frankfurt (Main) 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 Jost Pfingstweidstrasse 3 D 60316 Frankfurt am Main Germany The District Court of Frankfurt am Main opened bankruptcy proceedings against CateWalker GmbH & Co.KG on March 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CateWalker GmbH & Co.KG Roedelheimer Landstrasse 22 60487 Frankfurt am Main Germany DETEKTEI SIX: Claims Registration Period Ends May 9 --------------------------------------------------- Creditors of Detektei SIX GmbH have until May 9, 2008, to register their claims with court-appointed insolvency manager Simone Gisdal. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Saarbruecken Area Hall 13 First Floor Branch Office Sulzbach Vopeliusstrasse 2 66280 Sulzbach 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: Simone Gisdal Kapellenstr. 18 66271 Kleinblittersdorf Germany Tel: 06805/9090 Fax: 06805/909100 The District Court of Saarbruecken opened bankruptcy proceedings against Detektei SIX GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Detektei SIX GmbH Attn: Helmut Schneider, Manager Am Rothenbuesch 5 66113 Saarbruecken Germany ECONOMY CONSULT: Creditors Must File Claims by May 15 ----------------------------------------------------- Creditors of Economy Consult Gesellschaft f�r betriebswirtschaftliche Unternehmensberatung, Buchhaltungsservice und Hausverwaltung mbH have until May 15, 2008, to register their claims with court-appointed insolvency manager Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Friedberg (Hessen) Hall 20a Homburger Strasse 18 61169 Friedberg (Hessen) 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: Jan Markus Plathner Lyoner Strasse 14 60528 Frankfurt am Main Germany The District Court of Friedberg (Hessen) opened bankruptcy proceedings against Economy Consult Gesellschaft f�r betriebswirtschaftliche Unternehmensberatung, Buchhaltungsservice und Hausverwaltung mbH on March 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Economy Consult Gesellschaft fuer betriebswirtschaftliche Unternehmensberatung, Buchhaltungsservice und Hausverwaltung mbH Auguste-Victoria-Strasse 3 61231 Bad Nauheim Germany EMBALADO GMBH: Creditors Must File Claims by May 15 --------------------------------------------------- Creditors of embalado GmbH & Co KG have until May 15, 2008, to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Erfurt Hall 15 Judicial Center Rudolfstr. 46 99092 Erfurt 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: Rolf Rombach Magdeburger Allee 159 99086 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against embalado GmbH & Co KG on March 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: embalado GmbH & Co KG Vor dem Lohe 10 99628 Buttst�dt Germany ERWIN POPP: Creditors Must File Claims by May 15 ------------------------------------------------ Creditors of Erwin Popp GmbH have until May 15, 2008, to register their claims with court-appointed insolvency manager Jochen Wagner. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on June 26, 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 Ingolstadt Meeting Hall 28 I Schrannenstr. 3 85049 Ingolstadt 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: Jochen Wagner Goldknopfgasse 2 85049 Ingolstadt Germany The District Court of Ingolstadt opened bankruptcy proceedings against Erwin Popp GmbH on March 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Erwin Popp GmbH Am Wiesenrain 1 85283 Wolnzach Germany FAHRSCHULE GOETTIG: Claims Registration Period Ends May 9 --------------------------------------------------------- Creditors of Fahrschule Goettig GmbH have until May 9, 2008, to register their claims with court-appointed insolvency manager Jochen Horch. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Heilbronn Hall 4 Ground Floor Rollwagstr. 10a 74072 Heilbronn 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: Jochen Horch Keplerstrasse 7 74072 Heilbronn Germany Tel: 07131/7801-33 Fax: 07131/7801-11 The District Court of Heilbronn opened bankruptcy proceedings against Fahrschule Goettig GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fahrschule Goettig GmbH Kaiserstrasse 6 74072 Heilbronn Germany Attn: Holger Goettig, Manager Alte Steige 12 74831 Gundelsheim Germany FISCHER & PARTNER: Claims Registration Period Ends May 6 -------------------------------------------------------- Creditors of Fischer & Partner Bau GmbH have until May 6, 2008, to register their claims with court-appointed insolvency manager Dr. Karsten Foerster. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court 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: Dr. Karsten Foerster Herbert-Jensch-Strasse 111 15234 Frankfurt (Oder) Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against Fischer & Partner Bau GmbH on March 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fischer & Partner Bau GmbH Kurze Str. 1 15562 Ruedersdorf Germany GM-STONE GMBH: Claims Registration Period Ends May 6 ---------------------------------------------------- Creditors of GM-Stone GmbH have until May 6, 2008, to register their claims with court-appointed insolvency manager Knut Thomas Hofheinz. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on June 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. 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: Knut Thomas Hofheinz Am Markte 13 30159 Hannover Germany Tel: 0511 357721-0 Fax: 0511 357721-40 The District Court of Hannover opened bankruptcy proceedings against GM-Stone GmbH on March 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GM-Stone GmbH Zeppelinstrasse 2 30827 Garbsen Germany H & H VERMOEGENSVERWALTUNGS: Claims Registration Ends May 6 ----------------------------------------------------------- Creditors of H & H Vermoegensverwaltungsgesellschaft mbH have until May 6, 2008 to register their claims with court-appointed insolvency manager Jan H. Wil-helm. Creditors and other interested parties are encouraged to attend the meeting at 9:35 a.m. on June 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neumuenster Meeting Hall B.031 Law Courts Boostedter Strasse 26 Neumuenster 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: Jan H. Wil-helm Albert-Einstein-Ring 11 22761 Hamburg Germany The District Court of Neumuenster opened bankruptcy proceedings against H & H Vermoegensverwaltungsgesellschaft mbH on Feb. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: H & H Vermoegensverwaltungsgesellschaft mbH Dr. Karl Moeller Platz 21 24340 Eckernfoerde Germany HALLER PLASTIC: Claims Registration Period Ends May 9 ----------------------------------------------------- Creditors of Haller - Plastic - Kunststofferzeugnisse GmbH have until May 9, 2008, to register their claims with court-appointed insolvency manager Jochen Horch. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on June 2, 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 Heilbronn Hall 4 Ground Floor Rollwagstr. 10a 74072 Heilbronn 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: Jochen Horch Keplerstrasse 7 74072 Heilbronn Germany Tel: 07131/7801-33 Fax: 07131/7801-11 The District Court of Heilbronn opened bankruptcy proceedings against Haller - Plastic - Kunststofferzeugnisse GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Haller - Plastic - Kunststofferzeugnisse GmbH Attn: Matthias Schimminger, Manager Robert-Bosch-Strasse 43 74523 Schwabisch Hall Germany HEIDE BETTENWAREN: Creditors Must File Claims by May 15 ------------------------------------------------------- Creditors of Heide Bettenwaren GmbH have until May 15, 2008, to register their claims with court-appointed insolvency manager Peter Henz. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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 Henz Rietberger Str. 28 33378 Rheda-Wiedenbrueck Germany The District Court of Bielefeld opened bankruptcy proceedings against Heide Bettenwaren GmbH on March 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heide Bettenwaren GmbH Benteler Str. 9 33449 Langenberg Germany HTM SPORT: S&P Cuts Debt's Rating to 'CCC' from 'CCC+' ------------------------------------------------------ Standard & Poor's Ratings Services lowered to 'CCC+' from 'B-' its long-term corporate credit rating on Netherlands-based and Austria-managed sports equipment manufacturer Head N.V. The outlook is negative. At the same time, the senior unsecured rating on debt issued by related entity HTM Sport und Freizeitgeraete AG was lowered by one notch to 'CCC' from 'CCC+', reflecting the bonds' longstanding subordination to secured creditors. "The downgrade reflects the company's significantly weakened financial metrics for the year ended Dec. 31, 2007, and concerns regarding its ability to finance its future working capital needs," said Standard & Poor's credit analyst Philip Temme. Head's adjusted EBIT fell 80% to EUR4.5 million in 2007 and the company recorded a net loss of EUR11.2 million following weak results from its key winter sports equipment division and lower sales in some geographies for its racquet sports division. Free cash flow turned negative and pressure on liquidity was increased by the return of EUR7.5 million to shareholders. Head's unrestricted cash and marketable securities balance, which is critical to meeting its working capital needs, dropped to EUR38.3 million at end-2007 from EUR58.3 million at end-2006, and is likely to fall further. "Although snow conditions in the winter of 2007-2008 were reasonably good and Head is expected to benefit from a modest recovery to winter goods orders as a result, it nonetheless enters the new financial year with a significantly reduced cash buffer and limited alternative means of financing its heavy seasonal working capital needs, which peak in the autumn," said Mr. Temme. Standard & Poor's is concerned that, with available cash resources expected to fall below EUR10 million by autumn 2008 and only limited ability to adjust working capital outflows, Head has limited flexibility to cope with negative developments at a time when the outlook for discretionary consumer spending looks increasingly challenging. In the 12 months to Dec. 31, 2007, Head's total adjusted debt was EUR181 million (EUR155 million reported) and adjusted EBITDA was EUR16.4 million. Total debt to lease-adjusted EBITDA ballooned to 11x from 5.1x and adjusted funds from operations to total debt slid to 0.8% from 11.3%. Adjusted EBITDA interest coverage fell to 1.2x from 2.6x and adjusted EBIT interest coverage to 0.3x from 1.6x. Head, which is now only listed in Vienna following its delisting from New York, is effectively controlled by its chairman and CEO, Johann Eliasch, who, together with members of his family, controls 49.8% of the company. "The negative outlook reflects the likelihood that Head's cash resources will weaken further in 2008, to the point where its available cash headroom falls well below EUR10 million at the low point in its working capital cycle, leaving it highly exposed to negative developments," said Mr. Temme. This includes the risk of a warm winter in 2008/2009 or weakness in demand owing to recessionary pressures. The ratings could be lowered should operating performance and cash held slip further below our expectations. Given Head's operational challenges and high leverage, S&P currently views the possibility of a return to a stable outlook as remote. IMU GEBAUDEREINIGUNG: Claims Registration Period Ends May 8 ----------------------------------------------------------- Creditors of IMU Gebaudereinigung & Zeitarbeit GmbH have until May 8, 2008, to register their claims with court-appointed insolvency manager Rudolf Nirschl. Creditors and other interested parties are encouraged to attend the meeting at 8:00 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 Landshut Meeting Hall 8/I Maximilianstrasse 22-24 Landshut 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: Rudolf Nirschl Porschestr. 21 84030 Landshut Germany Tel: 0871/96607-0 Fax: 0871/67418 The District Court of Landshut opened bankruptcy proceedings against IMU Gebaudereinigung & Zeitarbeit GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IMU Gebaudereinigung & Zeitarbeit GmbH Aussere Regensburger Strasse 35 84034 Landshut Germany KRASSOWSKI GMBH: Claims Registration Ends May 6 ----------------------------------------------- Creditors of Krassowski GmbH have until May 6, 2008 to register their claims with court-appointed insolvency manager Dr. Dirk Wittkowski. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin 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. Dirk Wittkowski Kirchblick 11 14129 Berlin Germany The District Court of Neuruppin opened bankruptcy proceedings against Krassowski GmbH on March 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Krassowski GmbH Attn: Adelbert Krassowski, Manager Heinrich-Heine-Str. 45 16945 Meyenburg Germany MAISCH SPEDITION: Claims Registration Period Ends May 9 ------------------------------------------------------- Creditors of Maisch Spedition+Logistik GmbH & Co. KG. have until May 9, 2008, to register their claims with court-appointed insolvency manager Dr. Andreas Wille. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 2, 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 Pforzheim Hall 142 Lindenstr. 8 75179 Pforzheim 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. Andreas Wille Karlsruher Str. 34 75179 Pforzheim Germany The District Court of Pforzheim opened bankruptcy proceedings against Maisch Spedition+Logistik GmbH & Co. KG. on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Maisch Spedition+Logistik GmbH & Co. KG. Attn: Matthias Maisch, Manager Boschstr. 25 75446 Wiernsheim Germany PRIVATBRAUEREI BORCHERT: Claims Registration Ends May 6 ------------------------------------------------------- Creditors of Privatbrauerei Borchert GmbH have until May 6, 2008 to register their claims with court-appointed insolvency manager Holger Zbick. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.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 Lingen (Ems) Hall Z 17 New Building Burgstrasse 28 49808 Lingen (Ems) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Holger Zbick Marktplatz 2-4 48712 Gescher Germany Tel: 02542/9178-10 Fax: 02542/9178-28 E-mail: inso@zbick-deckert.de The District Court of Lingen (Ems) opened bankruptcy proceedings against Privatbrauerei Borchert GmbH on March 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Privatbrauerei Borchert GmbH Heinrich-Schulte-Strasse 2 48480 Luenne Germany QUICK FOTO: Claims Registration Ends May 6 ------------------------------------------ Creditors of Quick Foto Labor GmbH have until May 6, 2008 to register their claims with court-appointed insolvency manager Dr. Martin Prager. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 3, 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 Nuremberg Meeting Hall 152/I Flaschenhofstrasse 35 Nuremberg 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. Martin Prager Stadtpark 2 90409 Nuremberg Germany Tel: 0911/9990990 Fax: 0911/99909950 The District Court of Nuremberg opened bankruptcy proceedings against Quick Foto Labor GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Quick Foto Labor GmbH Attn: Irmtraut Mathold, Manager Koenigstrasse 73 90402 Nuremberg Germany R & R BAU: Claims Registration Ends May 6 ----------------------------------------- Creditors of R & R Bau GmbH have until May 6, 2008 to register their claims with court-appointed insolvency manager Markus M. Merbecks. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Markus M. Merbecks Leipziger Strasse 58 09113 Chemnitz Germany Tel: (0371) 444610 Fax: (0371) 4446111 E-mail: merbecks@merbecks.de The District Court of Chemnitz opened bankruptcy proceedings against R & R Bau GmbH on March 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: R & R Bau GmbH Attn: Jens Herzog, Manager Talstrasse 10 09557 Floeha Germany RIO BETRIEBSGESELLSCHAFT: Claims Registration Ends May 6 -------------------------------------------------------- Creditors of RIO Betriebsgesellschaft mbH have until May 6, 2008 to register their claims with court-appointed insolvency manager Hans-Peter Burghardt. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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: Hans-Peter Burghardt Bunsenstr. 3 32052 Herford Germany The District Court of Bielefeld opened bankruptcy proceedings against RIO Betriebsgesellschaft mbH on March 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RIO Betriebsgesellschaft mbH Kurfuerstenstr. 4 32052 Herford Germany Attn: Gianni Pulli, Manager Schillerstr. 5 32052 Herford Germany ROSNER'S BAUSERVICE: Claims Registration Ends May 6 --------------------------------------------------- Creditors of Rosner's Bauservice GmbH have until May 6, 2008 to register their claims with court-appointed insolvency manager Ulrich Luppe. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 3, 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle 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: Ulrich Luppe Hansering 9/10 06108 Halle Germany Tel: 0345/614070 Fax: 0345/6140710 The District Court of Halle-Saalkreis opened bankruptcy proceedings against Rosner's Bauservice GmbH on March 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rosner's Bauservice GmbH Attn: Thomas Rosner, Manager Seumestr. 21 06686 Poserna Germany TELEHAUS BREMEN: Creditors' Meeting Slated for May 15 ----------------------------------------------------- The court-appointed insolvency manager for Telehaus Bremen GmbH & Co. KG, Dr. Frank Kreuznacht, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on May 15, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at noon on June 19, 2008, at the same venue. Creditors have until May 6, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Frank Kreuznacht Wolbecker Windmuehle 15a 48167 Muenster Germany Tel: 02506/821-0 Fax: 02506/821-100 The District Court of Bremen opened bankruptcy proceedings against Telehaus Bremen GmbH & Co. KG on March 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Telehaus Bremen GmbH & Co KG Herrlichkeit 6 28199 Bremen Germany VECTOR MANAGEMENT: Claims Registration Period Ends May 5 -------------------------------------------------------- Creditors of Vector Management und Verwaltungs GmbH have until May 5, 2008, to register their claims with court-appointed insolvency manager Markus Walter. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on May 26, 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 Offenbach am Main Hall 162N First Floor Kaiserstrasse 63065 Offenbach am Main 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: Markus Walter Cronstettenstrasse 30 60322 Frankfurt am Main Germany Tel: 069-959110-0 Fax: 069-959110-12 The District Court of Offenbach am Main opened bankruptcy proceedings against Vector Management und Verwaltungs GmbH on Vector Management und Verwaltungs GmbH. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Vector Management und Verwaltungs GmbH Martin-Behaim-Str. 19-21 63263 Neu-Isenburg Germany WILHELM MEINEKE: Claims Registration Period Ends May 5 ------------------------------------------------------ Creditors of Wilhelm Meineke GmbH have until May 5, 2008, to register their claims with court-appointed insolvency manager Jens Wilhelm V. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on June 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. 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: Jens Wilhelm V Hohenzollernstrasse 53 30161 Hannover Germany Tel: 0511 696846-0 Fax: 0511 696846-79 The District Court of Hannover opened bankruptcy proceedings against Wilhelm Meineke GmbH on March 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wilhelm Meineke GmbH Mecklenhorster Strasse 21 31535 Neustadt Germany ============= I R E L A N D ============= EIRLES TWO: Moody's May Further Cut Junk Notes After Review ----------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade one class of notes issued by Eirles Two Limited. This rating action is a response to severe credit deterioration in the underlying portfolio. This transaction is a static synthetic CDO of ABS referencing a portfolio which contains 96% US RMBS of the 2005, 2006, and 2007 vintages. In addition, 16% of the portfolio by volume (all US RMBSs) is currently rated Ca and below. Moody's disclosed on Feb. 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. This rating action is: * Eirles Two Limited US$150,000,000 Series 300 Secured Floating Rate Notes due September 2050 -- Current Rating: Caa2, on review for downgrade -- Prior Rating: Ba1, on review for downgrade FREESTAR TECH: Posts US$4.5 Million Net Loss in Second Quarter -------------------------------------------------------------- FreeStar Technology Corp. recorded a net loss of US$4,568,270 for the second quarter ended Dec. 31, 2007, compared to a net loss of US$3,124,456 for the three months ended Dec. 31, 2006, an increase of US$1,443,814 or approximately 46%. Ciaran Egan, FreeStar's chief financial officer, commented that "approximately US$2,300,000 of this amount consisted of non-cash compensation in the form of stock, stock options, and warrants issued to consultants and employees. We continue to launch new innovative products and expand our geographical market for increased growth opportunities in 2008. We believe that our investment program in our product and sales and marketing programs together with our growing pipelines will drive revenue growth in 2008." Revenue for the three months ended Dec. 31, 2007, was US$1,448,713 compared to US$811,902 for the three months ended Dec. 31, 2006, an increase of US$636,811 or approximately 78%. Revenue consisted of transaction processing and related revenue of US$512,782; consulting services revenue of US$683,862 and hardware and related revenue of US$252,069. FreeStar Technology president and chief executive officer Paul Egan said, "We expect to see continued increased hardware related sales to our expanding customer base, but also recognize increasing revenue streams from annual maintenance fees and service initiation fees. "Our cross border payments processing has now expanded to Spain, Iceland, Denmark, Sweden and the U.K. We are seeing a steady increase in DCC (Dynamic Currency Conversion) Transactions from our partner, Global Refunds. We have successfully deployed terminals in Dominican Republic and see continuing growth in the region. Our International projects are nearing deployment and can expect to see a large increase in processing revenues throughout the remainder of fiscal 2008." Balance Sheet At Dec. 31, 2007, the company's consolidated balance sheet showed US$8,201,305 in total assets, US$3,509,597 in total liabilities, US$407,398 in minority interest, and US$4,284,310 in total stockholders' equity. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$1,945,907 in total current assets available to pay US$3,509,597 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2007, are available for free at http://researcharchives.com/t/s?288f Going Concern Disclaimer As reported in the Troubled Company Reporter on Oct. 4, 2007, New York-based RBSM LLP expressed substantial doubt about FreeStar Technology Corp.'s ability to continue as a going concern after auditing the company's financial statements for the year ended June 30, 2007. The auditing firm said the company is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. About FreeStar Technology Based in Dublin, Ireland, FreeStar Technology Corp. (OTC BB: FSRT) -- http://www.freestartech.com/-- provides electronic payment processing services, including credit and debit card transaction processing, point-of-sale related software applications and other value-added services. The company was incorporated in the State of Nevada. The company�s switching and transaction processing platform is operated by its wholly- owned subsidiary, Rahaxi, which is located in Finland. The company is one of the leading players in the Finnish transaction processing market, serving approximately 1,100 merchants each day and processing on average approximately 1,620,000 transactions per month. Effective Nov. 21, 2006, the company acquired 50% of the outstanding capital stock of Project Life Cycle Partners, Ltd., a consulting firm located in Dublin, Ireland. PLC Partners is a niche project consulting firm specializing in the management and implementation of information systems projects. PLC Partners has international experience within the financial services and telecommunications sectors. IRALCO: 500 Jobs Likely to Be Lost as Firm Undergoes Liquidation ---------------------------------------------------------------- Around 500 employees of Iralco's Co Westmeath plant are likely to be laid off as the company is expected to go into voluntary liquidation, Charlie Taylor of the Irish Times reports. Citing a statement from the comapny's board of directors, the report adds that the company has been facing financial difficulties and has been "struggling" to "overcome increasing costs" combined with "price reductions." Iralco -- http://www.iralco.ie/-- designs and develops decorative and functional trim for all the major automotive OEM�s. The company's product range covers all high visibility trim parts from drip rail systems to pillar cappings and treadplates. IRALCO: Enterprise Minister Says Gov't Will Help to Keep Jobs ------------------------------------------------------------- Michael Martin, Minister for Enterprise, Trade and Employment, disclosed that the government will do what it can to save jobs at Iralco, the Belfast Telegraph reports. According to the Belfast Telegraph, liquidators met with management and unions yesterday afternoon in order to asses if jobs can be saved. Iralco -- http://www.iralco.ie/-- designs and develops decorative and functional trim for all the major automotive OEM�s. The company's product range covers all high visibility trim parts from drip rail systems to pillar cappings and treadplates. SMURFIT KAPPA: Brings In Thomas Brodin to Join Board ---------------------------------------------------- Smurfit Kappa Group plc has appointed Thomas Brodin to the Board as an independent, non-executive Director with effect from April 2, 2008. Mr. Brodin, 44, is currently Head of Equity Research and a member of the executive management team at Erik Penser Fondkommission, an independent and privately owned Swedish securities firm. Previously Mr. Brodin was a European paper & packaging research analyst and Managing Director at Citigroup between 1995 and 2007. Prior to that he served as a paper & packaging research analyst at Credit Suisse First Boston between 1992 and 1995 and at Svenska Handelsbanken between 1990 and 1992. In total, he was an analyst covering the paper and packaging sector for 17 years. Between 1998 and 2007 Mr. Brodin was ranked as the leading European analyst covering the paper and packaging sector by Extel and Institutional Investor Surveys. He was also voted the best Individual pan-European sell-side analyst, across all sectors, in the Extel Survey in both 2001 and 2004. "We are delighted that Thomas is joining the Smurfit Kappa Group Board. His knowledge of and experience within the paper and forest products sector will be valuable to the Board," Sean Fitzpatrick, Chairman of the SKG Board, commented. "We have known and respected Thomas for many years. He will contribute meaningfully to the Board's strategic and capital allocation decision making process," Gary McGann, Smurfit Kappa Group Chief Executive Officer, added. 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. SMURFIT KAPPA: Fitch Puts Long-Term Issuer Default Rating at BB --------------------------------------------------------------- April 2008: Fitch Ratings has today upgraded UK-based Smurfit Kappa Acquisitions' Long-term Issuer Default rating (IDR) to 'BB' from 'BB-' (BB minus) and affirmed SKA's senior secured facilities at 'BB+'. It has also assigned a Long-term IDR of 'BB' to Smurfit Kappa Group plc, the ultimate holding company of the group . The Outlooks on both IDRs are Stable. At the same time, Fitch has also upgraded Smurfit Kappa Funding's senior subordinated notes due 2015 to 'BB-' (BB minus) from 'B+' and affirmed Smurfit Kappa Treasury Funding's debenture notes due 2025 at 'BB+'. "The upgrade reflects the group's improved debt measures and financial flexibility, placing its leverage metrics at the 'BB' rating level. It also reflects the restructuring and synergy benefits realised since FY06, enhancing SKG's cost position and providing a moderate buffer against potential margin erosion in the face of weakening market conditions," says Myriam Affri, Director in Fitch's European Industrials team. Savings realised in FY07 reached a run rate of EUR166m, ahead of the group's original target of EUR160m for 2006-2009. Despite escalating fibre and energy costs, pre-exceptional EBITDA increased EUR181m yoy to EUR1,064m in FY07 and EBITDA margin rose to 14.6% from 12.7%. Fitch acknowledges that market conditions in 2008 are likely to become more challenging for European containerboard producers, with signs of softening demand, no relief from cost inflation and competitive pressures from US producers. In this context, the upgrade recognises SKG's 'best-in-class' margins, management's pro-active approach with regard to capacity adjustments in response to market imbalances and Fitch's view that the group's improved efficiency will enable it to maintain satisfactory margins and EBITDA levels above those observed in the last down cycle. Proceeds from SKG's successful IPO in March 2007 were used to pre-pay EUR1.4bn of debt. Net debt reduced to EUR3.4bn and net leverage decreased to 3.2x at FYE07 from 5.5x at FYE06 and 3.8x at Q107 post-IPO. This was below management's target range of 3.25x-4.25x and reflected the combination of higher earnings and lower borrowings. The group's coverage metrics also strengthened as net costs reduced in line with debt levels. FFO fixed charge coverage increased to 2.2x in FY07 from 1.7x in FY06 and EBITDA/net interest rose to 3.5x from 2.2x. While those metrics place SKG at the weaker end of the 'BB' rating level, Fitch notes that interest charges should reduce further in FY08 compared to FY07 as the most expensive portion of the group's debt was repaid in FY07 and the margin on the senior secured credit facility (equal to approximately 76% of gross debt at FYE07) has reduced quarterly in line with leverage. Minimal scheduled repayments until 2011 imply adequate cash flow headroom and liquidity. Fitch takes further comfort in management's conservative financial strategy as illustrated by the focus on operating efficiency, cash flow generation, de-leveraging and the absence of material capex projects when competitors are considering bringing new capacity on stream. SKG has publicly stated that it aims to reduce net leverage to below 3x in FY08. The rating is further supported by the group's leading market positions ((#1 and #3 producer of corrugated paper and containerboard, respectively, worldwide, and #1 kraftliner, recycled containerboard and corrugated producer in Europe). Fitch also recognises SKG's integrated operations (approximately 70% of containerboard production is consumed internally) and its presence in high-growth markets (#1 and #3 corrugated and containerboard producer in Latin America). Exposure to stable, recession-proof end-markets (approximately 50% of revenues) should mitigate the impact of a potential slump in demand in Europe. Key credit concerns in the medium term are market developments both from a supply and demand perspective, with expected pressure on margins resulting from slower growth, sustained cost inflation and increased competitive pressures. Containerboard projects coming on stream in FY09-FY10 could further threaten the market's balance in Europe and adversely impact pricing power. =================== K A Z A K H S T A N =================== ARAL GAS: Creditors Must File Claims by May 19 ---------------------------------------------- LLP Aral Gas Terminal has declared insolvency. Creditors have until May 19, 2008, to submit written proofs of claims to: LLP Aral Gas Terminal Alihan Bokeihan Str. 37-2 Kyzylorda Kazakhstan CASPIAN RESOURSES: Claims Deadline Slated for May 19 ---------------------------------------------------- LLP Caspian Resourses has declared insolvency. Creditors have until May 19, 2008, to submit written proofs of claims to: LLP Caspian Resourses Karataev Str. 38a-28 Almaty Kazakhstan CENTRE STROY: Claims Filing Period Ends May 19 ---------------------------------------------- LLP Construction Company Centre Stroy has declared insolvency. Creditors have until May 19, 2008, to submit written proofs of claims to: LLP Construction Company Centre Stroy Kunaev Str. 17-5 Almaty Kazakhstan EVEREST KZ: Creditors' Claims Due on May 18 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Company Everest Kz insolvent. Creditors have until May 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan OIL MARKET: Claims Registration Ends May 20 ------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Oil Market Time insolvent on Feb. 29, 2008. Creditors have until May 20, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 OIL TECHNO: Claims Deadline Slated for May 20 --------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Oil Techno Snab insolvent on Feb. 29, 2008. Creditors have until May 20, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 VITAS-2001 LLP: Claims Filing Period Ends May 18 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Vitas-2001 insolvent. Creditors have until May 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov Str. 70 Kostanai Kazakhstan VOSTOK TRANS: Creditors' Claims Due on May 18 --------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Vostok Trans Les insolvent on Feb. 21, 2008. Creditors have until May 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 24-06-50 =================== K Y R G Y Z S T A N =================== NOVO-PHARM CJSC: Creditors Must File Claims by May 18 ----------------------------------------------------- CJSC Novo-Pharm has declared insolvency. Creditors have until May 18, 2008 to submit written proofs of claim to: CJSC Novo-Pharm Frunze Str. 279 Novo-Pavlovka Sukuluksky Chui Kyrgyzstan =================== L U X E M B O U R G =================== EVRAZ GROUP: Fitch Puts BB Rating on Prospective US$ Notes Issue ---------------------------------------------------------------- Fitch Ratings has assigned Evraz Group S.A.'s prospective USD notes issue an expected senior unsecured 'BB' rating. The expected rating is in line with Evraz's 'BB' Long-term Issuer Default rating (IDR). At the same time, Fitch has affirmed Evraz's Long-term IDR and senior unsecured ratings of 'BB' and Short-term IDR of 'B'. The ratings of Mastercroft Limited (Evraz's core subsidiary holding most of its key operating assets within Russia) are also affirmed at Long-term IDR 'BB' and Short-term IDR 'B', as is the senior unsecured 'BB' rating of Evraz Securities S.A. The Outlooks for Evraz's and Mastercroft Limited's Long-term IDRs are Stable. Proceeds from the notes will be used for general corporate purposes, including the funding of capex and potential acquisitions. Fitch would also expect the proceeds to be used in part to refinance debt from the recent acquisition of IPSCO's Canadian operations. The issue will be a direct, unconditional and unsecured obligation of Evraz, which, in addition to being the ultimate holding company for the Evraz Group, has direct ownership of several international steel operations purchased in recent years. No subsidiary guarantees are, however, provided. Fitch notes that historically Evraz's consolidated debt structure has included a high proportion of secured debt and structurally superior debt in subsidiary entities. Consistent with its methodology, which considers a debt level of 2x of pre-tax, pre- interest cash flow to be sufficiently material to consider the notching of senior unsecured debt, Fitch has not notched the expected rating of the current notes issue from the level of Evraz's Long-term IDR . Draft documentation includes a change of control provision set at 50% of total voting stock (exclusions for current majority shareholder Lanebrook Limited and variously any of its shareholders, legal representatives or subsidiaries), with a put option to redeem the notes at 101% of face value plus accrued interest, as well as a make-whole provision. There are limitations on the granting of liens (defined generally to include mortgages, pledges, etc), while additional indebtedness is subject to an EBITDA leverage test of 3x or less, calculable on a pro-forma basis in respect of acquisitions. The final rating for the issue will be assigned once the tenor and amount of the notes are known, and subject to receipt of final documentation materially conforming to the draft documentation reviewed by Fitch. EVRAZ GROUP: Moody's Puts (P)Ba3 Rating on Proposed Dollar Notes ---------------------------------------------------------------- Moody's Investors Service confirmed Evraz's Group's Ba2 corporate family rating, the Ba2 rating for the Senior Notes due 2009 and the Ba3 rating for the Senior Notes due 2015. In addition, Moody's assigned a (P) Ba3 rating to the proposed U.S. dollar notes to be issued by Evraz Group S.A. The amount and maturity are subject to the prevailing market conditions during placement. The outlook for the ratings was changed to negative This rating action concludes the review for possible downgrade for Evraz' ratings initiated on March 17, 2008 following Evraz's announcement on March 15 that it had reached an agreement to acquire IPSCO's tubular business for US$4.025 billion with a back to back agreement with OAO TMK (rated Ba3) and its affiliates to resell certain of the acquired businesses to TMK for US$1.2 billion in 2008 and that its expects additional US$0.5 billion disposals to be executed in 2009. With a string of acquisitions, started in 2007, Evraz has raised the share of high value products like plate steel and pipes in its sales considerably and has markedly strengthened its geographical diversification by adding manufacturing presences in Western Europe, Ukraine, South Africa, China and - with the acquisition of IPSCO -- in the North American market. The outlook for steel pipes is currently positive reflecting high energy prices but has historically been quite volatile. With rising steel prices and external growth, Evraz is well positioned to generate rising free cash flows contributing to acquisition expenditures and to stay within it's own leverage cap of 1.5-times debt/EBITDA. This target would likely require dividend constraint and a pause to further acquisitions. The negative outlook for the rating reflects the integration and control challenges for a geographically wide spread corporate group, the potential for further large investments, and the reliance on cash flow and a bridge facility to fund the various acquisitions as well as a refinancing of maturing debt. With regard to the Notes to be issued by Evraz Group S.A., Moody's noted their pari passu ranking with other senior unsecured debt of Evraz Group S.A. In line with its loss-given- default methodology, Moody's has therefore assigned a provisional (P) Ba3 for the Notes and a provisional LGD assessment of LGD 5 (82%) assuming issuance of about US$1.5 billion, which is in the middle of the range of US$1.0 -US$2.0 billion placement amount indicated by the company. The ratings and LGDs will be finalized upon receipt of final bond documentation and the confirmed issue amount. The Notes are subject to various restrictions and financial covenants, including limitations on incurrence of indebtedness, leverage covenant, limitation on certain mergers, asset sales and dividend payments. Evraz Group is one of the largest vertically integrated steel companies in Russia (by volume and assets) with assets also in Europe, North America and South Africa that produced 16.4 million tonnes of steel products, reported revenue of US$12.8 billion and EBITDA of US$4.3 billion in 2007. Evraz's principal assets are steel plants in Russia, Europe, North America and South Africa, iron ore and processing facilities, as well as coal mines, logistics and trading assets. ===================== N E T H E R L A N D S ===================== HEAD N.V.: Reports Net Loss of EUR11.15 Mln for Year 2007 --------------------------------------------------------- Head N.V. submitted to the Securities and Exchange Commission, its financial report for the year ended Dec. 31, 2007. The company reported EUR11.15 million in net loss on EUR320.99 in net revenues for the year ended Dec. 31, 2007, compared with EUR4.42 million in net profit on EUR366.76 million in net revenues in 2006. At Dec. 31, 2007, the company's consolidated balance sheet showed EUR389.32 million in total assets, EUR256.31 in total liabilities and EUR160.31 million in total equity. Incorporated under Dutch Law, Head N.V. -- http://www.head.com/ -- is a leading global manufacturer of branded sporting goods focusing on winter, diving and racquet sports. For the financial year ended Dec. 31, 2006, the company reported consolidated revenues and EBITDA of EUR366.8 million and EUR34.1 million, respectively. It operates in Austria, Italy, Germany, France, Switzerland, the Netherlands, Spain, the United Kingdom, North America, and Asia. HEAD N.V.: S&P Junks Long-Term Corporate Credit Ratings ------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'CCC+' from 'B-' its long-term corporate credit rating on Netherlands-based and Austria-managed sports equipment manufacturer Head N.V. The outlook is negative. At the same time, the senior unsecured rating on debt issued by related entity HTM Sport und Freizeitgeraete AG was lowered by one notch to 'CCC' from 'CCC+', reflecting the bonds' longstanding subordination to secured creditors. "The downgrade reflects the company's significantly weakened financial metrics for the year ended Dec. 31, 2007, and concerns regarding its ability to finance its future working capital needs," said Standard & Poor's credit analyst Philip Temme. Head's adjusted EBIT fell 80% to EUR4.5 million in 2007 and the company recorded a net loss of EUR11.2 million following weak results from its key winter sports equipment division and lower sales in some geographies for its racquet sports division. Free cash flow turned negative and pressure on liquidity was increased by the return of EUR7.5 million to shareholders. Head's unrestricted cash and marketable securities balance, which is critical to meeting its working capital needs, dropped to EUR38.3 million at end-2007 from EUR58.3 million at end-2006, and is likely to fall further. "Although snow conditions in the winter of 2007-2008 were reasonably good and Head is expected to benefit from a modest recovery to winter goods orders as a result, it nonetheless enters the new financial year with a significantly reduced cash buffer and limited alternative means of financing its heavy seasonal working capital needs, which peak in the autumn," said Mr. Temme. Standard & Poor's is concerned that, with available cash resources expected to fall below EUR10 million by autumn 2008 and only limited ability to adjust working capital outflows, Head has limited flexibility to cope with negative developments at a time when the outlook for discretionary consumer spending looks increasingly challenging. In the 12 months to Dec. 31, 2007, Head's total adjusted debt was EUR181 million (EUR155 million reported) and adjusted EBITDA was EUR16.4 million. Total debt to lease-adjusted EBITDA ballooned to 11x from 5.1x and adjusted funds from operations to total debt slid to 0.8% from 11.3%. Adjusted EBITDA interest coverage fell to 1.2x from 2.6x and adjusted EBIT interest coverage to 0.3x from 1.6x. Head, which is now only listed in Vienna following its delisting from New York, is effectively controlled by its chairman and CEO, Johann Eliasch, who, together with members of his family, controls 49.8% of the company. "The negative outlook reflects the likelihood that Head's cash resources will weaken further in 2008, to the point where its available cash headroom falls well below EUR10 million at the low point in its working capital cycle, leaving it highly exposed to negative developments," said Mr. Temme. This includes the risk of a warm winter in 2008/2009 or weakness in demand owing to recessionary pressures. The ratings could be lowered should operating performance and cash held slip further below our expectations. Given Head's operational challenges and high leverage, S&P currently views the possibility of a return to a stable outlook as remote. HEAD N.V.: Sets Annual General Meeting on May 28 ------------------------------------------------ Head N.V. Has scheduled its annual general meeting for shareholders at 11:00 a.m. on May 28, 2008. The meeting will be held at: Sheraton Amsterdam Airport Hotel Schiphol Boulevard 101 1118 BG Amsterdam The Netherlands Details concerning the agenda, the right to attend, and how to exercise rights at the annual general meeting will be available on April 28, 2008. The annual general meeting will not be open to members of the general public. Incorporated under Dutch Law, Head N.V. -- http://www.head.com/ -- is a leading global manufacturer of branded sporting goods focusing on winter, diving and racquet sports. For the financial year ended Dec. 31, 2006, the company reported consolidated revenues and EBITDA of EUR366.8 million and EUR34.1 million, respectively. It operates in Austria, Italy, Germany, France, Switzerland, the Netherlands, Spain, the United Kingdom, North America, and Asia. SUN SAGE: S&P Withdraws BB Long-Term Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'BB' long-term corporate credit rating on Sun Sage B.V. at the company's request. This followed the company's early redemption of notes triggered by the sale of Mando Corp. (Mando; NR), the company's sole operating subsidiary. Sun Sage B.V. sold a 72.39% stake, which was its entire ownership in Mando, to a consortium led by Halla Engineering & Construction Corp (NR). Sun Sage B.V. was required to redeem the notes under the terms and conditions of the bond, which stated full redemption if the company's ownership of Mando fell below 50%. =============== P O R T U G A L =============== SAGRES STC 2004: Fitch Revises Outlook on Three Notes ----------------------------------------------------- Fitch Ratings has taken the rating action on Sagres STC - Explorer 2004 tranches. Sagres is the first securitisation launched by the Portuguese government. The assets backing the deal comprise unpaid tax and social security claims originated in Portugal. -- EUR165m Class A2 floating-rate notes, ISIN XS0190180678 affirmed at 'AAA', with Outlook Stable -- EUR170m Class M floating-rate notes, ISIN XS0190180918 affirmed at 'AA', Outlook changed to Positive from Stable -- EUR129m Class N floating-rate notes, ISIN XS0190181130 affirmed at 'A-' (A minus) with Outlook Stable -- EUR136m Class O floating-rate notes, ISIN XS0190181213 affirmed at BB+', Outlook changed to Stable from Negative -- EUR53m Class T fixed-rate notes, ISIN XS0190181486 affirmed at 'B', Outlook changed to Stable from Negative The Outlook change reflects the fact that the cash currently lying in the reserve account has been built up sufficiently to cover any future principal payments for the class A2 and M notes without having to rely on any future collections. Higher-than-expected collections for the period up to March 2008 have resulted in the cumulative collections reaching EUR1,501m; bringing the cumulative collection amount to 105% of Fitch's revised base case, resulting in all the notes being expected to repay before their legal final maturity. This is mainly because an extraordinary EUR23m collected by DGCI in September 2007 (for the period 24 August to 20 September 2007) were incorrectly registered and re-incorporated during the current period. Also, during the November 2007 period (for the period 24 October to 22 November 2007) a payment of EUR13m from a single borrower boosted collection to EUR47m. Even if these events were not taken into consideration, the collections for the period would have totalled EUR169m, which is still 20% higher than the current period revised base case and would represent 102% of the cumulative revised base case. Recent vintages continue to show higher recovery rates, and the high substitutions during the last period (March-September 2007) have started to have an overall positive effect on collections performance. However, Fitch also considers that the development of annulments and dormant claims could have a negative effect on the future performance of this transaction. Fitch will continue to monitor the performance of this transaction. =========== R U S S I A =========== CERAMICS-S LLC: Creditors Must File Claims by May 15 ---------------------------------------------------- Creditors of LLC Ceramics-S have until May 15, 2008, to submit proofs of claim to: E. Kubakhov Insolvency Manager Post User Box 12 394038 Voronezh Russia The Arbitration Court of Tambov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A64-3733/07-10. The Court is located at: The Arbitration Court of Tambov Penzenskaya Str. 67/12 392020 Tambov Russia The Debtor can be reached at: LLC Ceramics-S Location DSU-2 Stroitel Tambov Russia COMSTAR-UNITED: Shareholders Elect New Board of Directors --------------------------------------------------------- Comstar � United TeleSystems JSC's Extraordinary General Meeting of Shareholders has approved its new Board of Directors. Members of the Board are: * Anatoly Akimenko, Vice President of Access Industries; * Anna Goldin, Vice President for Legal Issues and Head of Legal Group of Sistema; * Sergey Drozdov, Senior Vice President, Head of Property Group of Sistema; * Dietmar Kuhnt, Member of Supervisory Boards of Allianz- Versicherungs-AG, BDO Deutsche Warentreuhand AG, Dresdner Bank AG, GEA Group AG, Hapag Lloyd AG, Hochtief AG and TUI AG; Independent Director of Comstar UTS; * Andrey Matyukhov, Director of Portfolio Strategy Department of Strategy and Development Division of Sistema; * Sergey Pridantsev, President and CEO of Comstar UTS; * Yngve Redling, Chairman of the Swedish-Russian bilateral working group for Information Technology, Independent Director of Comstar UTS; * Vitaly Savelyev, First Vice President, Head of Telecommunications Asset Management Division of Sistema; * Dmitry Ustinov, Head of Financial Department of Finance and Investments Division of Sistema; Mr. Savelyev was elected as Chairman of Comstar�s Board of Directors. 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. DMITRIEVSKOE SORT-SEM-OVOSH: Court Starts Bankruptcy Supervision ---------------------------------------------------------------- The Arbitration Court of Kursk commenced bankruptcy supervision procedure on OJSC Dmitrievskoe Sort-Sem-Ovosh (TIN 4605005562). The case is docketed under Case No. A35-70/08g. The Temporary Insolvency Manager is: V. Ershov Apt. 28 Kalinina Str. 18 Arzamas 607220 Nizhniy Novgorod Russia The Court is located at: The Arbitration Court of Kursk K. Marksa Str. 25 305004 Kursk Russia The Debtor can be reached at: OJSC Dmitrievskoe Sort-Sem-Ovosh Fosforitnaya Str. 12 Dmitriev-Lgovskiy 307500 Kursk Russia PEREKOPNOE CJSC: Creditors Must File Claims by May 15 ----------------------------------------------------- Creditors of CJSC Perekopnoe have until May 15, 2008, to submit proofs of claim to: A. Gurchenko Insolvency Manager Bolshaya Kazachya Str. 23/27 410012 Saratov Russia The Arbitration Court of Saratov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-57-5270/07-31. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: CJSC Perekopnoe Perekopnoe Ershovskiy Saratov Russia PODGORNOE LLC: Saratov Bankruptcy Hearing Slated for June 16 ------------------------------------------------------------ The Arbitration Court of Saratov will convene on June 16, 2008, to hear the bankruptcy supervision procedure on LLC Podgornoe. The case is docketed under Case No. A-1903/08-40. The Temporary Insolvency Manager is: A. Aleksandrov Sovetskaya Str. 57/1 Saratov Russia The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: LLC Podgornoe Podgornoe Romanovskiy Saratov Russia SEVERSTAL OAO: Reorganizes Operations Into Three Divisions ---------------------------------------------------------- OAO Severstal is reorganizing its businesses into three principal divisions: Severstal Russian Steel, Severstal Resources and Severstal International. The new structure, taking effect in April, will reduce the number of reporting lines between individual operations and senior management, ensuring greater operating efficiency and capitalizing on Severstal�s international diversity by providing for the continued growth of the global business. This development marks a logical next step in Severstal�s corporate maturation following the Company�s 2006 listing on the London Stock Exchange and the vertical integration process that consolidated its mining and metallurgical assets in Russia and Europe. The organizational realignment will also reinforce the 2006 adoption of Severstal�s Code of Corporate Governance by streamlining the reporting structure between individual operations and the Company�s senior management. "This restructuring is a logical next step in Severstal�s development, reflecting our already strong position as an integrated metals and mining business with a growing international focus," Alexey Mordashov, Severstal CEO, said. "The simplified, more focused structure will serve to improve our competitiveness, increase production, cut costs and maximise profit." The new structure of Severstal will be: * Severstal Russian Steel: ?ne of Russia�s largest steel producers. Severstal Russian Steel will include these segments: steel, pipe, metalware and services as well as scrap procurement operations. Anatoly Kruchinin, currently CEO of Cherepovets Steel Mill, has been appointed as CEO of Severstal Russian Steel. * Severstal Resources: comprises Severstal�s assets relating to iron ore, coal and gold extraction. The division includes mining and gold-mining segments. It is one of Russia�s largest producers of pellets and coking coal. Roman Deniskin will remain CEO of the division. * Severstal International: a newly established division, comprising European (Lucchini Group) and North American (Severstal North America (SNA) and SeverCorr) segments. Gregory Mason, Corporate COO of OAO Severstal, has been named CEO of the division. Under the new structure four functional areas and four service and support areas will be established. Functional Areas: * Operations: headed by Gregory Mason, COO and CEO of Severstal International; * Finance: headed by Sergei Kuznetsov, CFO; * Corporate Development: headed by Thomas Verazto, Senior Vice President (SVP); and * Human Resources: headed by Andrei Mityukov, SVP Service and Support Areas: * Legal Affairs: headed by Dmitry Sanin, SVP & General Council; * External Relations: headed by Alexei Yegorov, SVP; * Communications and Public Relations: headed by Vadim Saveliev, SVP; and * Security: headed by Vladimir Kozlov, SVP In 2008, Severstal's financials will be reported according to the 2007 divisional structure. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * As of March 26, 2008, OAO Severstal carries Ba2 Corporate Family, Senior Unsecured Debt and Probability-of-Default ratings from Moody's Investor Service, which said the the outlook on all ratings is stable. The company also carries BB long-term Foreign and Local Issuer Credit ratings from Standard & Poor's, which said the outlook is stable. Severstal carries BB- Issuer Default and Senior Unsecured ratings from Fitch, which said the outlook is positive. SEVERSTAL OAO: Completes US$652-Mln Asset Sale to Arcelor Mittal ---------------------------------------------------------------- OAO Severstal has completed the sale to ArcelorMittal of its 97.9% stake in the Beryozovskaya Mine and its 99.46% stake in the Pervomayskaya Mine. As part of the deal, Severstal also sold to ArcelorMittal the Severnaya Coal Preparation Plant, 100% of the Zhernovskaya-3 deposit and controlling stakes in three companies that provide the mines with transport, assembly, repair and power supply services. Arcelor Mittal acquired the assets for a total consideration of US$651.8 million in cash. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * As of March 26, 2008, OAO Severstal carries Ba2 Corporate Family, Senior Unsecured Debt and Probability-of-Default ratings from Moody's Investor Service, which said the the outlook on all ratings is stable. The company also carries BB long-term Foreign and Local Issuer Credit ratings from Standard & Poor's, which said the outlook is stable. Severstal carries BB- Issuer Default and Senior Unsecured ratings from Fitch, which said the outlook is positive. STROY-MONTAZH-SERVICE: Creditors Must File Claims by May 15 ----------------------------------------------------------- Creditors of LLC Stroy-Montazh-Service (TIN 8902008669) have until May 15, 2008, to submit proofs of claim to: S. Danilov Insolvency Manager Apt. 9 Angalskiy Mys 40 Salekhard 629003 Yamalo-Nenetskiy Russia The Arbitration Court of Yamalo-Nenetskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A81-1670/2007. The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Russia The Debtor can be reached at: LLC Stroy-Montazh-Service Avtostradnaya 8, 5 Labytnangi 629400 Yamalo-Nenetskiy Russia TMK OAO: Unit Gets EUR88.7 Mln Loan to Finance FQM Acquisition -------------------------------------------------------------- Seversky Tube Works, a unit of OAO TMK, signed a EUR88.7 million (US$1403 million) credit agreement with the Societe Generale Group, to partially finance its acquisition of a Fine Quality Mill. The agreement between TMK and Societe Generale was proposed and approved by TMK shareholders on the Dec. 25, 2007, Extraordinary General Meeting. The term of the loan is for 7 years at an annual interest rate of 5.11% and export credit insurance is provided by the SACE agency (Italy). Payments under the transaction will be carried out by Yekaterinburg branch of Bank Societe Generale Vostok. This additional 600,000 tpa. capacity will enable STW to produce 168-365 mm hot-rolled seamless pipes with 6.28-37.3 mm wall thickness. Danieli, one of the world�s leading suppliers of equipment to the steel industry, will supply the FQM. Commissioning is scheduled for the second quarter of 2010. Upgrading of Seversky�s pipe rolling equipment is carried out within the framework of TMK�s Strategic Investment Program, aimed at reducing costs, expanding product mix, increasing the efficiency of production processes, and raising product quality. "We are very satisfied with our agreement with Societe Generale as we attracted advantageous financing for one of our key investment projects," Konstantin Semerikov, TMK CEO, said. "2008 is the peak year for the implementation of our Investment Program and we are confident it will be carried out as scheduled." "Given our parent company's resources and experience, we can successfully compete with the largest Russian and international banking groups operating in the Russian financial lending sector," Alexei Pavin, General Director of the Yekaterinburg branch of Bank Societe Generale Vostok, commented. "Long-term and large-scale facilities are a priority for the Bank Societe Generale Vostok." About TMK Based in Moscow, Russia, OAO TMK -- http://www.tmk-group.ru/-- manufactures the entire product range of existing pipe products, which are used in the oil-and-gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania, which unite the four leading enterprises in the Russian pipe industry. TMK OAO: Amendment Pursuit Prompts S&P to Hold BB- Rating --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Russian metal pipe producer OAO TMK. The outlook remains negative. At the same time, the 'ruAA-' Russia national scale rating was affirmed. "The affirmation follows the company's announcement that it will seek to amend its US$300 million credit-linked-note (CLN) agreement, which currently restricts debt to EBITDA to 3.5x," said Standard & Poor's credit analyst Andrey Nikolaev. The company seeks to exclude any indebtedness incurred in connection with the acquisition of NS Group and IPSCO Tubulars, as well as the net effect of the acquisition on EBITDA, for the purposes of covenant calculation. TMK's success in obtaining the CLN waiver is an important step in the refinancing plan. If unsuccessful, TMK may have to refinance the CLN issue at a time when it is also arranging a syndicated bridge acquisition facility of US$1.2 billion. The debt-financed acquisition seriously hurt TMK's credit metrics. Due to the acquisition and the company's aggressive liquidity management, the share of short-term debt will increase to about 75%, and will not be covered with cash and committed credit lines. This will put substantial pressure on liquidity. Restoration of TMK's financial profile depends on its ability to make a secondary public offering in the second half of 2008 or the first half of 2009. The ratings continue to reflect the risks associated with the cyclical pipe rolling industry. Although we view current pipe market fundamentals as favorable, S&P will monitor TMK's ability to pass through to customers the increasing raw material costs that may pressure the margins later on. TMK's robust market positions partly offset these negative rating factors, as do the company's increasing diversification of its asset base and scale of operations. Likely capacity increases in second-half 2008 resulting from the ongoing investment program should support cash flow generation. "We will likely lower the long-term corporate credit rating on TMK if the company appears unable to materially improve its maturity schedule in 2008," said Mr. Nikolaev. S&P will also be monitoring whether the company successfully integrates the newly acquired assets. Weakening financial results in the core operations could also lead to a downgrade, as could the company's inability to manage working-capital outlays, which would lead to further deterioration in financial metrics. S&P expects, however, that TMK's management will be able to adjust capital spending and will not increase its dividend payout target. The outlook could be revised back to stable if the company successfully decreases its currently high leverage and refinances its short-term debt with long-term debt and equity, comfortably covering short-term maturities with committed lines and cash. TRANS-STROY-SERVICE-2: Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Arbitration Court of Novosibirsk commenced bankruptcy supervision procedure on LLC Trans-Stroy-Service-2 (TIN 2712014790). The case is docketed under Case No.A73-291/08. The Temporary Insolvency Manager is: V. Popov Post User Box 40-5 680013 Khabarovsk-13 Russia The Court is located at: The Arbitration Court of Novosibirsk Kirova Str. 3 630007 Novosibirsk Russia The Debtor can be reached at: V. Popov Post User Box 40-5 680013 Khabarovsk-13 Russia YAKUTSK-STROY-MATERIALS: Creditors Must File Claims by May 15 ------------------------------------------------------------- Creditors of CJSC Yakutsk-Stroy-Materials have until May 15, 2008, to submit proofs of claim to: P. Egorov Insolvency Manager Krupskoy Str. 35 Yakutsk 677007 Sakha�Yakutiya Russia The Arbitration Court of Sakha�Yakutiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A58-8931/2006. The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Russia The Debtor can be reached at: CJSC Yakutsk-Stroy-Materials Petrovskogo Str. 19/5 Yakutsk Sakha�Yakutiya Russia YUNION-NA-AMURE: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Arbitration Court of Khabarovsk commenced bankruptcy supervision procedure on LLC Yunion-Na-Amure. The case is docketed under Case No. A73-562/2008-37. The Temporary Insolvency Manager is: I. Bashmakova Office 307A ABK-8 Leningradskaya Str. 28 680000 Khabarovsk Russia The Debtor can be reached at: LLC Yunion-Na-Amure Vokzalnaya Str. 22 Komsomolsk-na-Amure Russia =========== S W E D E N =========== * Sweden Plans Law to Rescue Banks in Case of Crisis ---------------------------------------------------- The Swede government plans to enact a law that will allow it to take over a financially troubled bank, Bloomberg News reports citing Financial Markets Minister Mats Odell. Mr. Odell said that under the proposed legislation, the state could take over voting rights in banks when it needs to support an institution from failure, Bloomberg News relates. The minister added a government body will be created to implement the system outlined by the proposed law. "These rules would incorporate all banks of vital importance to the payment system -- the ones that are 'too big to fail'", Mr. Odell was quoted by Bloomberg News as saying. "Smaller banks will be handled by the savings protection program, where only the savings of individuals are being rescued -- not the failing banks." ============= U K R A I N E ============= ANT-BUDRECONSTRUCTION: Creditors Must File Claims by April 30 ------------------------------------------------------------- Creditors of LLC Ant-Budreconstruction (code EDRPOU 35465399) have until April 30, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as 43/235. The Debtor can be reached at: LLC Ant-Budreconstruction Artem Str. 37-41 Kiev Ukraine BLIK LLC: Proofs of Claim Deadline Set April 30 ----------------------------------------------- Creditors of LLC Blik (code EDRPOU 24340367) have until April 30, 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 supervision procedure on the company. The case is docketed as B-19/29-08. The Debtor can be reached at: LLC Blik Gvadeytsev Shyronintsev Str. 32 61069 Kharkov Ukraine CHEMICAL REPAIR: Creditors Must File Claims by April 30 ------------------------------------------------------- Creditors of LLC Chemical Repair Energy (code EDRPOU 23818157) have until April 30, 2008, to submit proofs of claim to: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 14, 2008. The case is docketed as 8/25-08. The Debtor can be reached at: LLC Chemical Repair Energy Prokofiev Str. 36 40024 Sumy Ukraine KERAMIK OJSC: Creditors Must File Claims by April 30 ---------------------------------------------------- Creditors of OJSC Keramik (code EDRPOU 13568133) have until April 30, 2008, to submit proofs of claim to: The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent on March 20, 2008. The case is docketed as 4/14b. The Debtor can be reached at: OJSC Keramik Bogunskaya Str. 50 10020 Zhytomir Ukraine OHTYRKA PETROLEUMREFINERY Creditors Must File Claims by April 30 ---------------------------------------------------------------- Creditors of LLC Ohtyrka Petroleumrefinery Plant (code EDRPOU 31525582) have until April 30, 2008, to submit proofs of claim to: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 14, 2008. The case is docketed as 8/589-06. The Debtor can be reached at: LLC Ohtyrka Petroleumrefinery Plant Lenin Str. 10 Malaya Pavlovka Ohtyrka District 42700 Sumy Ukraine SCIENCE-RESEARCH INNOVATIVE: Creditors' Claim Due by April 30 ------------------------------------------------------------- Creditors of LLC Science-Research Innovative Production- Technological Bureau (code EDRPOU 03001968) have until April 30, 2008, to submit proofs of claim to: The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company on March 18, 2008, after finding it insolvent. The case is docketed as 8/307. The Debtor can be reached at: LLC Science-Research Innovative Production- Technological Bureau Staroevreyskaya Str. 22 Lvov Ukraine STARIY DRUZHE: Creditors Must File Claims by April 30 ----------------------------------------------------- Creditors of LLC Trading House Stariy Druzhe (code EDRPOU 31991115) have until April 30, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company on March 27, 2008, after finding it insolvent. The case is docketed as 43/278. The Debtor can be reached at: LLC Trading House Stariy Druzhe Kikvidze Str. 18 Kiev Ukraine VP OZKV: Creditors Must File Claims by April 30 ----------------------------------------------- Creditors of LLC VP OZKV (code EDRPOU 34873359) have until April 30, 2008, to submit proofs of claim to: The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Economic Court of Odessa commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 7, 2008. The case is docketed as 7/1-08-62. The Debtor can be reached at: LLC VP OZKV Cosmonauts Str. 21/4 67600 Odessa Ukraine =========================== U N I T E D K I N G D O M =========================== ADEVA RENTALS: Taps Joint Administrators from Tenon Recovery ------------------------------------------------------------ Matthew Colin Bowker and Carl Jackson of Tenon Recovery were appointed joint administrators of Adeva Rentals Ltd. (Company Number 05616735) on April 4, 2008. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The company can be reached at: Adeva Rentals Ltd. Southside Industrial Park Manchester Lancashire M46 0RE England Tel: 01942872308 ALEXANDER PARTNERSHIP: Taps KPMG as Administrators -------------------------------------------------- Richard James Philpot and David Crawshaw of KPMG LLP were appointed joint administrators of The Alexander Partnership UK Ltd. (Company Number 5519621) on April 8, 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: The Alexander Partnership UK Ltd. c/o KPMG LLP Arlington Business Park Theale Reading RG7 4SD England BRITISH ENERGY: EDF and RWE Emerge Frontrunners of Bidding Race --------------------------------------------------------------- France's Electricite de France and Germany's RWE AG have emerged as frontrunners in a bid to acquire British Energy Group plc, the Daily Telegraph reports. Citing market sources, the Daily Telegraph relates that although new potential bidders, including Sweden's Vattenfall AB and Spain's Iberdola SA, have come out, EDF and RWE remain the favorites, which is likely to affect Centrica plc's possible role in the bidding race. About British Energy Headquartered in Livingston, Scotland, British Energy Group plc -- http://www.british-energy.com/-- is the U.K.'s largest producer of electricity. With a workforce of about 6,000, it produces around one-sixth of the nation's electricity. * * * As of March 17, 2008, British Energy Group plc carries a Ba2 long-term corporate family rating from Moody's with a stable outlook. Standard & Poor's affirmed its BB long-term corporate credit ratings on U.K.-based nuclear generator British Energy Group PLC and its subsidiary British Energy Holdings PLC, with negative outlook. The company holds a BB+ long-term issuer default rating from Fitch with a stable outlook. DIOMED HOLDINGS: Hercules to Receive US$6 Million Payment --------------------------------------------------------- Hercules Technology Growth Capital, Inc. disclosed that it will receive repayment of principal on the company�s debt financing to Diomed Holdings, Inc. As reported in the Troubled Company Reporter-Europe on March 17, 2008, Diomed Holdings and its subsidiary, Diomed Inc., filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Massachusetts, Western Division. Concurrent with the Chapter 11 filing, the company's UK unit, Diomed Limited, filed for Administration under the laws of the United Kingdom. As reported in the Troubled Company Reporter-Europe on April 14, 2008, Diomed entered into an asset purchase agreement with AngioDynamics, Inc. for the sale of its U.S. operations for a cash purchase price of US$8 million. The assets subject to the Agreement exclude the proceeds of Diomed's settlement of its 777 patent litigation with AngioDynamics. Under the settlement, AngioDynamics agreed to pay US$7 million, and the proceeds of Diomed's anticipated US$3.6 million settlement with Vascular Solutions, Inc, now pending bankruptcy court approval, as well as certain patents. Hercules says that under a settlement order approved by the Bankruptcy Court US$6 million of the US$7 million settlement proceeds will be used to repay the outstanding loan principal balance to Hercules. �Our anticipated repayment of our outstanding loan from Diomed demonstrates Hercules� ability to minimize risks to our investors, even amid distressed situations,� said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. Additionally, Vascular Solutions, Inc. (NASDAQ: VASC), announced on April 9, 2008, that it has entered into a separate settlement agreement with Diomed for the purpose of resolving the patent infringement lawsuit between the companies. Pursuant to the settlement agreement, all claims and appeals by each side will be dismissed following a one-time payment of $3.586 million from Vascular Solutions to Diomed. About Hercules Technology Hercules Technology Growth Capital, Inc. (NASDAQ: HTGC) -� http://HTGC.com/-- is a NASDAQ traded specialty finance company providing debt and equity growth capital to technology and life science companies at all stages of development. Founded in December 2003, the company primarily finances privately held companies backed by leading venture capital and private equity firms. Hercules invests in a broad range of ventures active in technology and life science industries and offers a full suite of growth capital products up and down the capital structure. The company is headquartered in Palo Alto, Calif. and has additional offices in the Boston, Boulder, San Diego and Chicago areas. Providing capital to publicly-traded or privately-held companies backed by leading venture capital and private equity firms involves a high degree of credit risk and may result in potential losses of capital. About Diomed Holdings Inc. Diomed (AMEX: DIO) -� http://www.evlt.vom/-- develops and commercializes minimal and micro-invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed�s EVLT(R) laser vein ablation procedure is used in varicose vein treatments. Diomed also provides photodynamic therapy for use in cancer treatments, and dental and general surgical applications. The EVLT(R) procedure and the company�s related products were cleared by the United States FDA in January of 2002. Along with lasers and single-use procedure kits for its EVLT(R) laser vein treatment, the Company provides its customers with state of the art physician training and practice development support. The company's subsidiary, Diomed, Ltd. -- http://www.diomeduk.com/-- operates in the United Kingdom and its chief activities are product development, manufacturing and international sales and marketing. Diomed Holdings, Inc. and Diomed, Inc., filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40749 and 08-40750). Douglas R. Gooding, Esq., at Choate, Hall & Stewart, represents the two companies in its bankruptcy proceedings. When the Debtors filed for protection from their creditors, they disclosed estimated assets and debts between US$10 million and US$50 million. In connection with the Chapter 11 filings, Diomed Ltd. filed for Administration under the laws of the United Kingdom in the Cambridge County Court. Steven Mark Law of Ensors was named as administrator. DIOMED HOLDINGS: Inks Settlement Pact with Vascular Solutions ------------------------------------------------------------- Vascular Solutions, Inc. last week entered into a settlement agreement with Diomed Inc. for the purpose of resolving the patent infringement lawsuit between the companies. Pursuant to the Settlement Agreement, all claims and appeals by each side will be dismissed following a one-time payment of US$3.586 million from Vascular Solutions to Diomed in full and final satisfaction of the monetary judgment related to the alleged infringement of U.S. Patent No. 6,398,777. Following the March 2007 jury verdict and subsequent monetary judgment award, Vascular Solutions recorded a US$4.975 million litigation provision in the first quarter of 2007. The provision was subsequently increased to $5.245 million, primarily as the result of interest on the judgment. Howard Root, CEO of Vascular Solutions, commented: �We agreed to settle with Diomed on the same terms and at the same percentage as they settled with our co-defendant AngioDynamics last month. We are pleased to finally resolve all of our litigation with Diomed and to eliminate this distraction from our efforts to advance our products and our business.� About Vascular Solutions Vascular Solutions, Inc. -- http://www.vascularsolutions.com/-- (Nasdaq:VASC) is a medical device company that focuses on developing unique solutions for unmet clinical opportunities within vascular procedures. The company�s five product categories consist of hemostat (blood clotting) products, extraction (clot removal) catheters, vein products, specialty catheters and access products. New products introduced since the second half of 2003 include the D-Stat Dry hemostatic bandage used for the rapid control of topical bleeding, the Pronto extraction catheter for the aspiration of soft thrombus, the Vari-Lase endovenous laser product line for the treatment of varicose veins, the Langston dual lumen specialty catheter for the measurement of aortic stenosis and the Twin-Pass dual access specialty catheter for dual wire access in percutaneous procedures. About Diomed Holdings Inc. Diomed (AMEX: DIO) -� http://www.evlt.vom/-- develops and commercializes minimal and micro-invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed�s EVLT(R) laser vein ablation procedure is used in varicose vein treatments. Diomed also provides photodynamic therapy for use in cancer treatments, and dental and general surgical applications. The EVLT(R) procedure and the company�s related products were cleared by the United States FDA in January of 2002. Along with lasers and single-use procedure kits for its EVLT(R) laser vein treatment, the Company provides its customers with state of the art physician training and practice development support. The company's subsidiary, Diomed, Ltd. -- http://www.diomeduk.com/-- operates in the United Kingdom and its chief activities are product development, manufacturing and international sales and marketing. Diomed Holdings, Inc. and Diomed, Inc., filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40749 and 08-40750). Douglas R. Gooding, Esq., at Choate, Hall & Stewart, represents the two companies in its bankruptcy proceedings. When the Debtors filed for protection from their creditors, they disclosed estimated assets and debts between US$10 million and US$50 million. In connection with the Chapter 11 filings, Diomed Ltd. filed for Administration under the laws of the United Kingdom in the Cambridge County Court. Steven Mark Law of Ensors was named as administrator. ERINACEOUS GROUP: Some Divisions Continue to Trade as Normal ------------------------------------------------------------ A number of Erinaceous Group PLC�s operations remain outside of any insolvency proceedings and continue to trade as normal. As reported in yesterday�s Troubled Company Reporter-Europe, the group entered into administration after incurring debts of more than GBP250 million. Jim Tucker and Myles Halley of KPMG were appointed as administrators. The strongly performing insurance subsidiary, Erinaceous Insurance Services, is ring fenced from the rest of the group, and continues to operate as normal. The administrators have today agreed to sell Erinaceous Insurance Services to a vehicle owned by Erinaceous� banks. This is subject only to the consent of The Financial Services Authority and the Maltese FSA, who have been kept informed of developments. The Residential Management division (Residential Management Group Limited and its subsidiaries) and Property Maintenance division (Erinaceous Property Maintenance Limited) also remain outside of any insolvency process and continue to trade as normal. "Erinaceous has grown rapidly through acquisition in recent years. Although the insurance division continues to perform well, and we expect to announce the completion of its sale within days, the rest of the group has struggled to integrate its acquisitions and has been loss making. Discussions are taking place with a number of parties interested in these businesses. The administrators hope to conclude these negotiations shortly but it is too early to tell how many employees will be affected," Jim Tucker said. "We will be working hard to ensure that all employees are kept up to date with developments," Mr. Tucker added. The administrators and the directors are currently in discussions with the Civil Aviation Authority about the management of Shoreham Airport in Sussex and Fairoaks Airport in Surrey. As of April 14, 2008, the shares in Erinaceous Group PLC have been suspended from the London Stock Exchange. 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. About Erinaceous Group Headquartered in London, England, Erinaceous Group -- http://www.erinaceous.com-- provides a one-stop-shop for a broad range of services related to the management, maintenance, procurement, design, construction and insurance of property. Employing over 4,000 people across its three divisions. It incorporates many well-known companies, including brands such as Dunlop Haywards, Egan Lawson and Spring Grove. The company has debts exceeding GBP200 million. In recent months the board, supported by its advisors, has undertaken a full strategic review of the group's operations. The review covered the possibility of refinancing the Group�s borrowings, options for sale and an equity raising. Given the extent of the challenges facing the group and the current state of the capital markets, none of these options ultimately proved viable. FENMARC PREPARED: Brings In Joint Administrators from Deloitte -------------------------------------------------------------- Ian Brown and William Kenneth Dawson of Deloitte & Touche LLP were appointed joint administrators of Fenmarc Prepared Foods Ltd. (fka PannKrisp Ltd.). "Our appointment follows a difficult trading period and rising commodity costs, as a result of which the directors concluded that the company could not continue to trade in its current form. After discussions with customers, suppliers and employees it is my intention to allow the company to continue to trade in the short term to determine whether a buyer for th business can be found," Ian Brown commented. Deloitte & Touche LLP -- http://www.deloitte.com/-- provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The group is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. Headquartered in Wrexham, North Wales, Fenmarc Prepared Foods -- http://www.fenmarc.com/-- supplies a range of freshly prepared meals to the grocery sector. It employs 190 people. INTERNATIONAL DIAMALT: Creditors' Meeting Slated for April 24 ------------------------------------------------------------- Creditors of International Diamalt Co. Ltd. (Company Number FC015216) will meet at 10:00 a.m. on April 24, 2008, at: KPMG LLP St. Nicholas House 31 Park Row Nottingham NG1 6FQ 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 23, 2008, at: David James Costley-Wood Joint Administrator St James' Square Manchester M2 6DS England 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. LUDGATE FUNDING: S&P Rates Class S at B with CreditWatch Neg. ------------------------------------------------------------- Standard & Poor's Ratings Services has lowered and placed on CreditWatch with negative implications its credit rating on the class S deferrable interest rate notes issued by Ludgate Funding PLC (series 2006-FF1). It has also placed on CreditWatch negative its credit ratings on the class Ba, Bb, C, D, and E notes, and affirmed the class A2a, A2b, and MERCs of series 2006-FF1. These rating actions follow a full credit and cash flow analysis of the most recent loan-level information, taking into account in particular the current and expected levels of the transaction reserve in the near term. This analysis showed that the class S notes could no longer withstand Standard & Poor's 'B+' rating stress. The transaction drew GBP431,722 (47.87%) of its quarter opening reserve fund balance at the March 2008 interest payment date. The reserve fund now represents 0.18% of the outstanding mortgage balance, or 31.35% of the reserve required amount of GBP1.5 million. The most recent reserve fund draw followed a previous draw of GBP598,059 on the December 2007 IPD. The reserve fund draws are primarily driven by the unhedged differences in the interest rate received from the loans, which are linked to the Bank of England base rate, and payments due on the liabilities, which are linked to the three-month LIBOR. To mitigate this risk at closing, Standard & Poor's looked at the historical difference between LIBOR and BBR over time and modeled this additional risk in its cash flows. All of the mortgage loans are either currently linked to the BBR, or will revert to it on the expiry of their fixed or discount periods. Approximately 12% of the pool is scheduled to revert from a discounted rate to a BBR-linked floating rate this quarter. Given recently tightened underwriting criteria and repricing by many lenders, if these borrowers are unable to refinance they will experience a rise in their monthly payments. A similar percentage of the pool is scheduled to revert in the following two quarters. The widened and prolonged difference between LIBOR and BBR over the last few periods has further caused a reduction of excess spread for those transactions with unhedged basis risk. In this particular transaction, the differential was 0.51% as of the March reset date; with the most recent reduction in BBR to 5.0% and three-month LIBOR at 5.9%, this differential could be expected to widen. S&P has estimated the expected cash flows for the next period based on various assumptions regarding arrears, collection rates, interest rates, and prepayment rates. Based on this analysis, S&P expects a further small reserve fund draw on the June IPD. Total delinquencies have increased to 7.75% of the pool as of the most recent investor report, with 90+ day delinquencies standing at 2.92% (including repossessions). Unsold repossessions represent 0.9% of the outstanding balance. Cumulative losses are negligible at GBP12,275. S&P will continue to monitor the performance of this transaction using the most recent loan-level data for full credit and cash flow analyses. S&P will pay particular attention to future repossessions, losses, and changes in collection rates and prepayment rates. The results of our analysis, together with any effects on the ratings on any of the notes, will be released after the June IPD. Ratings List Ludgate Funding PLC GBP271.8 Million and EUR156.4 Million Mortgage-Backed Floating-Rate Notes Series 2006-FF1 Class Rating To From Rating Lowered and Placed on CreditWatch Negative S B/Watch Neg B+ Ratings Placed on CreditWatch Negative Ba AA/Watch Neg AA Bb AA/Watch Neg AA C A/Watch Neg A D BBB/Watch Neg BBB E BB/Watch Neg BB Ratings Affirmed A2a AAA A2b AAA MERCs AAA NATIONAL SCHOOLWEAR: Placed Under Administration ------------------------------------------------ National Schoolwear Centres plc has been placed under administrative receivership. According to the company's website, David Hudson and Tim Dolder of Begbies Traynor (South) LLP were appointed joint administrative receivers. According to a report by Sarah Hall of the Norwich Evening News, the company had been unable to keep its financial obligations. Mr. Hudson states that the franchised stores are not part of the proceedings and only the main office is currently involved, the report adds. National Schoolwear Centres plc -- http://www.nationalschoolwearcentres.co.uk/-- makes school uniforms. NORTHERN ROCK: Fails to Carry Out Cuts On Variable Rates -------------------------------------------------------- Northern Rock plc has failed to implement interest rate cuts to mortgage customers on variable rates, BBC News reports. BBC relates Northern Rock, which recently carried out a base rate move, argued its standard variable rate was "still under review." On Sunday, April 13, 2008, Chancellor Alistair Darling urged lenders to pass on recent interest rate cuts to homeowners, saying "if you can pass on those interest rate reductions, if you can help homeowners, help businesses, that will help all of us get through a very difficult time." The Council of Mortgage Lenders, on the other hand, contended Mr. Darling's call was irrelevant, insisting fresh access to funds is the key issue, BBC discloses. CML, which is set to participate at a Downstreet meeting, is calling for the Bank of England to provide more liquidity in the market. According to Sue Anderson of CML "it is a political reality that this meeting has got a high profile." About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * In December 2007, Moody's Investors Service downgraded to E+ from D+ Northern Rock's Bank Financial Strength Rating. The E+ maps into a Baseline Credit Assessment of B1. The bank's dated subordinated debt was downgraded to B1 from Baa1 and the undated subordinated debt and Tier-1 securities were downgraded to B3 from Baa1 and Baa3 respectively. All of these ratings have negative outlooks. Northern Rock's short- term rating was affirmed at Prime-1. ROO GROUP: Moore Stephens Expresses Going Concern Doubt ------------------------------------------------------- Moore Stephens PC expressed substantial doubt on the ability of ROO Group Inc. (nka KIT Digital, Inc.) to continue as a going concern after auditing the company's financial statements as of Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses and negative cash flows from operations. 2007 Results The company disclosed that for 2007, it made several key corporate action announcements, including: (a) The conversion of all of the Company's outstanding 10 million super-voting preferred shares into an aggregate of 400,000 common shares, as well as the extinguishment of all shelf preferred shares, thereby resulting in the extinguishment of the entire class of preferred stock; (b) The concurrent issuance of 8.65 million fully vested warrants to Messrs. Robert Petty and Robin Smyth as part of restructured employment agreements, but unrelated to future employment; (c) The execution of share purchase agreements with selling shareholders towards acquiring the remaining 49% of Sputnik Agency, ROO's profitable, interactive online advertising subsidiary, pursuant to the agreement in principle originally reached on March 16, 2008; and (d) The corporate re-branding of ROO Group, including re- naming the Company to 'KIT Digital, Inc.'. For the quarter ended Dec. 31, 2007, revenue was US$3.9 million, compared to US$3.75 million in the prior year period. The net loss for the quarter ended Dec. 31, 2007 was US$12.5 million, or US$0.32 per basic and diluted share, compared to US$5 million, or US$0.23 per basic and diluted share, in the same period last year. The net loss for the quarter ended Dec. 31, 2007 includes non-cash items totaling approximately US$1.1 million in stock-based compensation and other compensation payments, compared to US$860,000 in the same period last year, and US$4.1 million relating primarily to the impairment of tangible and intangible assets. Excluding these non-cash items, net loss for the quarter was US$7.3 million. The increase in net loss for the quarter is attributed to continued investments in building out our technology platform, the cost of running the RBS business unit, which was still in the research and development phase, as well as legal fees and costs associated with headcount reduction. Weighted average common shares outstanding for the three months ended Dec. 31, 2007 was 38,953,109 compared to 21,920,172 for the same period in the prior year. The RBS business unit, which was researching peer-to-peer networking technology, was closed down in January 2008. For the year ended Dec. 31, 2007, revenue increased 43% to US$13.9 million, compared to US$9.8 million in 2006. This increase includes a 78% increase in revenue from the Online Digital Media segment to US$9.5 million, compared to revenues of US$5.4 million for the year ended Dec. 31, 2006. The net loss for the year ended Dec. 31, 2007 was US$34.6 million, or US$0.99 per basic and diluted share, compared to US$14.6 million, or US$0.92 per basic and diluted share in 2006. The net loss includes non-cash items totaling approximately US$4.7 million in stock-based compensation and other compensation payments, compared to US$2.6 million in 2006, and US$4.1 million relating primarily to the impairment of tangible and intangible assets. Excluding these non-cash items, net loss for the year was US$25.8 million. The increase in net loss for the year is attributed to the cost of development of the VX Platform, the acquisition of strategic assets of Wurld Media and the cost of running the RBS business unit, as well as a ramp up of global operations and sales personnel. Weighted average common shares outstanding for the year ended Dec. 31, 2007 was 34,869,325 compared to 15,901,049 for the same period in the prior year. "The financial results for the three months and year ended Dec. 31, 2007, reported today, pre-date my joining ROO in January 2008. Since January, we have implemented several material cost-cutting initiatives and repositioned ROO to be more competitive, with a refocused strategic growth plan. This new strategy involves the integration of our interactive agency and video player capabilities, and an all-out commitment to profitability this fiscal year. Our focus during the first quarter of 2008 was on (a) maintaining revenues, (b) controlling and cutting costs and (c) simplifying our capital structure," Kaleil Isaza Tuzman, chairman and chief executive officer of ROO, stated. "Our focus in the second quarter of 2008 will be on building 'smart', gross contribution-positive revenue through client agreements and strategic acquisitions. While building the scale of our business will play an important role in our success, we are more focused on achieving profitability than on top-line growth -- which we believe will ultimately provide a more stable foundation for long-term success." "In the first quarter, we have cut our cash burn by roughly 45% through a mixture of operating discipline and slightly enhanced revenue levels -- without losing a single client and while adding one of our largest clients to date, Italy's RCS Digital. We fully integrated our subsidiary Sputnik and finally managed to extinguish the onerous preferred share class without material dilution to common shareholders. We also rotated the Company more towards higher growth international markets, built a high- quality independent board of directors and filled out critical management positions -- like president, chief operating officer, head of engineering, head of EMEA and head of Latin America. A very productive first quarter in my opinion," Mr. Isaza Tuzman continued. Preferred Share Conversion and Class Extinguishment On March 30, 2008, ROO Group reached negotiated settlements with Robert Petty and Robin Smyth, restructuring their respective employment agreements, each of which involved one-time cash severance payments. In exchange for entering into new below- market, "at will" employment agreements, Messrs. Petty and Smyth will receive upfront cash settlements of US$675,000 and US$275,000 respectively, as well as an aggregate of 8.65 million fully vested warrants to purchase ROO common stock, at a strike price equal to US$0.133 per share (representing the 3-day weighted average of closing price of ROO common stock prior to and including March 28, 2008). These warrants will become exercisable in 1/12 increments on a monthly basis starting six months from now. Mr. Smyth's restructured employment agreement involves certain cash and warrant- based incentives which can be earned-in over a period of 3 years based on ongoing service to the Company. As part of their respective settlements, Messrs. Petty and Smyth agreed to vote their preferred shares according to the Company's designation. Together with certain preferred shares beneficially voted by the Company on March 30, 2008, these preferred shares -- which represented a voting majority of all aggregate share classes -- voted for a statutory conversion of all outstanding preferred shares (10 million in total) into an aggregate of 400,000 common shares. The preferred shares also voted for the subsequent extinguishment of the entire class of preferred shares, such that no preferred shares may be issued by the Company in the future, and for the renaming of the Corporation to "KIT Digital, Inc." These decisions will be perfected twenty days after a definitive information statement has been sent to all of the Company's shareholders. Following the conversion of the outstanding preferred shares into an aggregate of 400,000 common shares, ROO will have 39.34 million total shares outstanding, or a market capitalization of US$5.1 million -- based on the US$0.13 closing price of ROO common shares on Friday, March 28, 2008. As of March 28, 2008, the Company had an approximate cash position of US$5.3 million. KIT Capital retains a right, pursuant to its Executive Management Agreement with the Company of Dec. 18, 2007, to purchase US$5 million of ROO common shares at US$0.16 per share. KIT Capital has also agreed, subject to approval by an independent committee of the board of directors, to accept warrants to purchase 2 million shares of ROO common stock at a strike price equal to US$0.13 per share in exchange for surrendering its right to purchase 51% of the outstanding preferred shares of the Company. "ROO Group has long suffered from the overhang of a 'blank- check' preferred share class," Mr. Isaza Tuzman commented. "While management originally came forward with a plan to eliminate the preferred shares through a 1-to-3.2 conversion ratio into common shares, it became clear over the last several weeks that this plan was unacceptable to common shareholders. We see the net outcome of the settlements reached as being materially positive for common shareholders-involving less than one-third of the pro forma dilution as the previously proposed 1-to-3.2 conversion alternative. More importantly, with only one class of stock, all shareholders are now on a level playing field, and investors can value ROO transparently and on an apples-to-apples basis versus others companies in our sector-a comparison that we think will prove favorable. We appreciate the flexibility shown by Messrs. Petty and Smyth in arriving at this point." Integration and Consolidation of Sputnik Agency On March 30, 2008, ROO executed various individual share purchase agreements with the shareholders of Sputnik Agency, in a process that once completed should provide the Company a 100% ownership position in the subsidiary entity. The all-in cash cost to ROO for the buy-in of Sputnik (including consummation of the Company's original 51% ownership) will be approximately US$4.0 million, to be paid by April 30, 2008. Sputnik Agency reported 2007 revenues of US$5.2 million and an operating profit of US$371,000. As previously announced, ROO recently appointed Sputnik Agency's managing director, Gavin Campion, 35, as president. Mr. Campion is now responsible for all of ROO's global operations, client services and business development. "The integration of Sputnik and ROO Media Services will strengthen our operations by bringing our online video enablement and interactive marketing solutions under one product offering. By offering a single source solution we will be able to better serve current and prospective clients. The Sputnik and ROO Media Services teams are in fact already operating as one, and we have begun to see the positive fruits of this decision. I bring the profit-focused outlook I have had in building Sputnik to the overall ROO Group," Mr. Campion commented. Corporate Rebranding Efforts On March 30, 2008, the majority of the Company's aggregate shares voted to change the name of the Company to KIT Digital, Inc. The name change had been previously authorized by the Board of Directors. The Company will operate under the new name effective April 7, 2008. The Company will legally change the name of the Corporation forthwith, as a result of which the Company's ticker symbol on the Over the Counter Bulleting Board will also be changed. Until that time, the Company will continue to trade under the ticker symbol RGRP. "The ROO name has served the Company over time, but the team felt that the integration of Sputnik and ROO Media Services represented a good time to introduce a fresh, new brand. The 'KIT Digital' brand underscores my commitment to our success, and reflects in part the changes made since KIT Capital's involvement in the Company several months ago," Mr. Isaza Tuzman commented. "In the coming weeks we will officially launch our new corporate identity, including a new logo and Web site. This new brand most effectively conveys our revamped operations and our focus on a 360 degree online video monetization model for corporate clients. We will be unveiling our new branding at the MIPTV conference in Cannes, France on April 7th.," Mr. Campion continued. "We are off to a strong start in 2008 as it relates to executing our plan," Mr. Isaza Tuzman concluded. "We are gaining traction delivering our unique end-to-end IPTV enablement technology to international customers. This is buttressed by our recent exclusive technology agreements with Abacast, Pando Networks and Viewdle and our recently announced intent to acquire mobile TV company Kamera. However, this progress is perhaps best underscored by leading European media company RCS' decision to deploy ROO's online streaming video solutions on the web sites of two of Europe's largest newspapers, Corriere della Sera and La Gazetta dello Sport." ROO Group's significant corporate milestones since Dec. 31, 2007 include: -- conversion of all outstanding 10 million preferred shares into an aggregate of 400,000 common shares, and subsequent extinguishment of the entire class of preferred shares; -- execution of definitive share purchase agreements with the shareholders of ROO's subsidiary Sputnik Agency, towards the purchase of 100% of the capital stock of Sputnik; -- appointment of Gavin Campion as president of ROO Group, effective April 1, 2008; -- the expansion of the Company's board of directors to seven members, four of whom are independent. This includes the appointments of Wayne R. Walker, Kamal El-Tayara, Lars Kroijer, and Daniel W. Hart; -- execution of a Letter of Intent and associated Content Distribution Agreement for the acquisition of 100% of the capital stock of Kamera Content AB, a Stockholm-based provider of mobile and browser-based IPTV solutions to corporate customers like Vodafone, MSN, Orange, O2, Telefonica, Hutchinson, China Mobile and others; -- partnered with Abacast and Pando Networks on a semi- exclusive basis to offer current and future corporate customers peer-to-peer (P2P) streaming solutions that deliver live streaming and video-on-demand (VoD) through the ROO Media Player; -- partnered with facial recognition-based video search company Viewdle, whereby Viewdle will integrate its video search capability into the ROO player to offer a seamless user experience as either a stand-alone product or integrated with a broader ROO solution for corporate clients; -- rebranding the Company as "KIT Digital", effective April 7, 2008; and -- retained Merriman Curhan Ford & Co. to help manage its capital restructuring initiatives and explore strategic buy-side alternatives. About ROO Group Headquartered in New York, ROO Group Inc. (nka KIT Digital, Inc.) -- http://www.roo.com/-- is a provider of digital media solutions and advercasting technology that enables the activation, marketing and distribution of digital media video content over the Internet and emerging broadcasting platforms such as set top boxes and mobile communication devices. ROO was founded in 2001 and went public in 2003. ROO has over 100 employees with worldwide operations in New York, Los Angeles, London and Australia. TITAN EUROPE: S&P Cuts Ratings to Low-B on Two Note Classes ----------------------------------------------------------- Standard & Poor's Ratings Services has lowered its ratings on the class G and H notes issued by Titan Europe 2006-1 PLC. At the same time, the class H notes were removed from CreditWatch with negative implications, where they had been placed on Sept. 5, 2007. The remaining notes were affirmed. The transaction, which was arranged by Credit Suisse International, closed on March 22, 2006. The EUR723.3 million commercial mortgage-backed floating-rate notes issued at closing were backed by a pool of 10 commercial real estate loans originated by CSI. The balance has now reduced to EUR408.6 million, with four of the loans having prepaid as of the January 2008 interest payment date. These rating actions are due to our concerns regarding the term and refinancing risk for a number of loans in the pool: -� The Mangusta Portfolio Loan (33.21% of the pool) has a current reported CMSA-standard debt-service coverage ratio below 1.00x whereas the forward-looking DSCR covenant ratio as per loan agreement is 1.07x. As there is a lack of timely reporting by the borrower, the accuracy of these figures cannot be confirmed. The debt service payments were made from surplus cash available from previous quarters. We understand that the servicer, Hatfield Philips International Ltd., is in discussion with the borrower to resolve the reporting issues. There was a late payment in third quarter 2006 due to higher expenses payable by the borrower. This increases the propensity of the loan to future late payments and potentially ultimate default. -� The Tiden Portfolio Loan (18.88% of the loan pool) currently exhibits stable reported interest-coverage ratios (ICRs) and DSCRs. However, 45% of the leases expire in December 2011, just 10 months before loan maturity. This portfolio will therefore require active asset management skills to either keep these tenants or to relet within a relatively short period of time. However, if the reletting periods for this portfolio turn out to be at the higher end of our expectations, the net operating income at loan maturity could be as low as EUR3.1 million, resulting in an exit yield on debt of only 4.37% for the senior loan and 3.63% for the whole loan. -� At loan maturity, the weighted-average remaining lease term assuming no tenancy changes will be approximately 4.5 years for the Deutsche Post Portfolio Loan (8.7% of the loan portfolio). At this level it may be challenging to refinance this loan, given the exit loan-to-value ratio of 71%. S&P notes that transaction performance is also exposed to certain structural weaknesses. For example, if any loan is transferred into special servicing, associated fees (including any workout or liquidation fee) will not be covered by excess spread, as this is monetized by the existing class X note, or the liquidity facility and may shorten interest payments on the lowest-rated class of notes. In addition, for most of these loans no updated business plan or, in the case of operating assets, no performance data was available to us. Ratings List Titan Europe 2006-1 PLC EUR723.3 Million Commercial Mortgage-Backed Floating-Rate And Variable-Rate Notes Class To From Rating Lowered G BB- BB Rating Removed From CreditWatch Negative And Lowered H B- B/Watch Neg Ratings Affirmed A AAA X AAA B AAA C AA D A E BBB F BBB TURBO BETA: Moody's Puts Corporate Family Rating at B1 ------------------------------------------------------ Moody's Investors Service assigned a B1 corporate family rating to Turbo Beta Ltd, the ultimate holding company for drilling contractor Abbot Group Ltd. At the same time, Moody's assigned a Ba3 rating to the US$1.55 billion of Senior Facilities raised by Turbo Alpha Ltd, the immediate holding company of Abbot Group plc. The outlook for all ratings is stable. This is the first time that Moody's has assigned ratings to Abbot. The B1 rating assigned to the parent company of Abbot Group Ltd reflects the group's exposure to the highly competitive and cyclical drilling industry which remains prone to the risk of over-capacity potentially developing (both onshore and offshore) but which has been demonstrating robust growth in the recent past on the back of increased investments by international oil companies (IOCs) and national oil companies (NOCs). The rating also factors in Abbot's relatively small scale -- it owns only 60 rigs, although it operates 110 -- and high operating leverage, as is customary within this industry. Moody's adds that the B1 rating remains constrained by Abbot's highly leveraged capital structure following its acquisition by First Reserve, which resulted in a pro-forma net adjusted debt to adjusted EBITDA ratio of 6.0x in 2007. At the same time, the B1 corporate family rating is supported by the group's strong geographic diversification and focus on international markets, which are characterised by generally higher barriers to entry -- and hence less volatile drilling activity -- than North America. The rating also incorporates Abbot's solid competitive positions in its various markets combined with the good quality of both its land and jack-up rigs, further supported by its solid reputation as operator. Moody's notes that Abbot benefits from the favourable characteristics of its medium-term day rate drilling contracts, thereby reducing asset redeployment risk and providing visibility over future cash flows, which should in turn support deleveraging in the near term. The proceeds of the US$1.55 billion Senior Facilities were used to finance part of the acquisition of Abbot Group Ltd by Turbo Alpha Ltd, a holding company established for the purpose of this transaction by First Reserve Fund XI, a private equity fund managed by First Reserve Corporation. The transaction valued Abbot Group plc at close to US$3.3 billion, with the rest of the purchase price funded through a mix of equity, shareholder loan and Mezzanine Facilities that are expected to be refinanced with Senior Notes. The Ba3 rating assigned to the Senior Facilities stems from the combination of the overall probability of default of Abbot, to which Moody's has assigned a Probability of Default Rating (PDR) of B1, and a Loss Given Default assessment of LGD 3 (32%). It reflects their contractual senior ranking to the Mezzanine Facilities / Senior Notes (and any other potential subordinated debt) under the terms of the Intercreditor Agreement. The Senior Facilities are guaranteed by Turbo Alpha Ltd, Turbo Alpha II Ltd (an intermediate holding company between Turbo Alpha Ltd and Turbo Beta Ltd) and a number of subsidiaries of Abbot Group plc incorporated in the UK, Germany, Singapore, Norway, the Netherlands and Cyprus (subject to any legal limitations that may apply). Guarantors are also required under the Senior Facilities Agreement to provide security over substantially all their assets and shares (subject to any legal limitations that may apply). There are a number of financial covenants that apply under the terms of the Senior Facilities, including EBITDA to Net Interest, Net Debt to EBITDA, Cashflow to Debt Service, as well as limitations on the annual amount of capex spend. The stable outlook reflects, on the one hand, Abbot's highly leveraged capital structure post-acquisition by First Reserve and, on the other hand, Moody's expectation that its substantial future order book (over US$2.5 billion with a further US$1.5 billion in optional extensions) will allow it to deleverage in the near term to below 4.5x net adjusted debt to EBITDA. Headquartered in Aberdeen, UK, Abbot Group Ltd is a provider of onshore and offshore drilling services to both IOCs and NOCs in the Eastern Hemisphere. Its ultimate owner is First Reserve Corporation, a US private equity firm specialised in the energy industry. In 2007, Abbot reported revenues of US$1.5 billion. * Fitch Says Some Parts of UK BTL Market Face More Risk ------------------------------------------------------- Fitch Ratings said that differences in origination standards and target market means that certain parts of the UK BTL market are more at risk from performance issues than others. Fitch has undertaken a survey of the major BTL lenders in the UK and the results of this survey reveal that there are significantly different products and practices amongst lenders. Additionally there is recent evidence that the BTL sector has seen a withdrawl of lenders and products since the on-set of the credit crunch. BTL investors who have relied on refinancing back to a cheap teaser rate product after the end of the initial teaser rate may find the economics of their BTL investments alter significantly if cheap re-financing cannot be found. "There is a tendency to view the BTL market as one homogenous asset class where borrowers and the property that secures the loans are all very similar. In undertaking our survey, Fitch identified significant differences in underwriting and origination practices amongst lenders in the UK," says Alastair Bigley, Director and head of UK RMBS at Fitch. The UK Buy-to-Let (BTL) market has changed considerably since the first BTL loan was originated in the UK approximately 11 years ago. The first BTL loans were originated with relatively low LTVs and high Interest Coverage Ratios to prime borrowers where a valuer had certified the estimated rental income. 11 years on and BTL loans are now available to borrowers who self certify the rental value and to borrowers who have impaired credit histories. Given not all BTL lenders offer these types of loans points to an increasingly diverse market with products presenting various risk/reward profiles to investors. * S&P Downgrades Ratings on 14 Tranches from Different Issuers -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its ratings on 14 tranches issued by several European collateralized debt obligation (CDO) of asset-backed securities (ABS) transactions. Of these tranches, six issued by Bantry Bay CDO I PLC remain on CreditWatch with negative implications. At the same time, one tranche issued by G Square Finance 2006-1 Ltd. was removed from CreditWatch negative and affirmed. The rating actions reflect the negative rating migration that has occurred in the underlying portfolios of the affected transactions, primarily from U.S. residential mortgage-backed securities (RMBS) and CDOs. Additonally, the actions incorporate the revised assumptions Standard & Poor's uses to assess U.S. RMBS held within CDO portfolios. Both these factors have resulted in an increase in the scenario default rates for the CDOs, so that they are not supported by current cash flows and credit enhancement. Ratings List Ratings Lowered and Remaining on CreditWatch Negative Bantry Bay CDO I PLC US$250 Million Secured Floating-Rate And Deferrable Floating-Rate Notes Rating ------ Class To From ----- -- ---- A-1 BBB/Watch Neg AAA/Watch Neg A-2 BB-/Watch Neg AA+/Watch Neg A-3 CCC+/Watch Neg AA/Watch Neg B CCC-/Watch Neg A+/Watch Neg C CCC-/Watch Neg BBB+/Watch Neg D CCC-/Watch Neg BBB-/Watch Neg Ratings Lowered Cheyne ABS Investments I PLC US$178 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- A-2 AA AAA B BBB+ AA+ C BBB- AA- Palmer Square PLC US$1,254.5 Million Asset-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- D-1 BB+ BBB D-2 BB+ BBB Ratings Removed from CreditWatch and Lowered RATINGS REMOVED FROM CREDITWATCH NEGATIVE AND LOWERED G Square Finance 2006-1 Ltd. US$1.49 Billion And EUR17 Million Senior Secured Floating-Rate Notes Rating ------ Class To From ----- -- ---- A-1 AA+ AAA/Watch Neg A-2 AA AAA/Watch Neg B BBB+ AA/Watch Neg Rating Removed from CreditWatch Negative and Affirmed G Square Finance 2006-1 Ltd. US$1.49 Billion And EUR17 Million Senior Secured Floating-Rate Notes Rating ------ Class To From ----- -- ---- X AAA AAA/Watch Neg * S&P Takes CreditWatch Actions on 105 European Synthetic CDOs -------------------------------------------------------------- After running its month-end SROC (synthetic rated overcollateralization) figures, Standard & Poor's Ratings Services has taken CreditWatch actions on 105 European synthetic CDO tranches. Specifically, ratings on: -- 89 tranches were placed on CreditWatch with negative implications. -- 2 tranches were placed on CreditWatch with positive implications. -- 14 tranches were removed from CreditWatch with negative implications and affirmed. Of the 89 tranches placed on CreditWatch negative: -� 38 reference U.S. RMBS and U.S. CDOs that are exposed to U.S. RMBS, which have experienced recent negative rating actions. -� 51 have experienced corporate downgrades in their portfolios. The table provides a summary of the CreditWatch actions Standard & Poor's has taken on European synthetic CDO tranches since the last quarter of 2007. CreditWatch Summary - 2008 Watch Neg Watch Pos Key corporate (no. of (no. of downgrades* tranches) tranches) Oct-07 16 14 TXU Corp. (BB/Watch Neg to B-) Oct. 9, 2007 Alliance Boots Ltd. (B- to NR) Oct. 4, 2007 Nov-07 64 15 Dec-07 74 5 Quebecor World Inc. (B-/Watch Neg to CCC/Watch Neg) Dec. 18, 2007 ACA Financial Guaranty Corp. (A/Watch Neg to CCC/Watch Dev) Dec. 19, 2007 Jan-08 47 8 United Parcel Service Inc. (AAA/Watch Neg to AA-) Jan. 9, 2008 Quebecor World Inc. (CCC/Watch Neg to D) Jan. 16, 2008 Feb-08 39 11 GMAC LLC (BB+ to B+) Feb. 22, 2008 Residential Capital, LLC (BB+ to B) Feb. 22, 2008 Mar-08 95 3 Apr-08 89 2 FGIC Corp. (BBB/Watch Neg to B) March 28, 2008 FGIC UK Ltd. (A/Watch Neg to BB) March 28, 2008 *Those corporate names that have experienced a significant notch downgrade as well as being widely referenced within European Synthetic CDOs. The SROC levels for the ratings placed on CreditWatch negative fell below 100% during the March month-end run. These SROC figures will be published in the SROC report covering March 2008, which is imminent. Following publication of the latest SROC report, a full review of the affected tranches will take place, and the appropriate actions will be published in the April rating action media release. All other tranches in the transactions listed are unaffected by these rating actions. The Global SROC Report provides SROC and other performance metrics on over 3,500 individual CDO tranches. Ratings List Class To From SROC (%) Aldersgate Finance Ltd. EUR249.5 Million Floating-Rate Credit-Linked Notes A AAA/Watch Neg AAA 99.4941 B AA/Watch Neg AA 99.8264 Alexandria Capital PLC EUR212 Million Secured Floating-Rate Credit-Linked Notes Series 2004-12 (Karnak) B-2a AA+/Watch Neg AA+ 99.9843 B-2b AA+/Watch Neg AA+ 99.9843 Alexandria Capital PLC EUR80 Million Secured Floating-Rate Credit-Linked Notes Series 2004-13 (Rhodes II) B-2b AAA AAA/Watch Neg 100.7611 Angel Court CDO PLC EUR60 Million Tranche B Secured Floating-Rate Notes Series 2006-1 AA/Watch Neg AA 99.8310 Angel Court CDO PLC US$2 Million Tranche B Secured Fixed-Rate Notes Series 2006-2 B AA/Watch Neg AA 99.8310 Angel Court CDO PLC US$30 Million Secured Tranche B Floating-Rate Notes Series 2006-5 AA/Watch Neg AA 99.8310 Angel Court CDO PLC EUR20 Million Tranche A Secured Floating-Rate Notes Series 2006-6 A AAA/Watch Neg AAA 99.7857 Angel Court CDO PLC US$10 Million Tranche B Secured Floating-Rate Notes Series 2006-7 AA/Watch Neg AA 99.8310 Angel Court CDO PLC US$25 Million Tranche A Secured Floating-Rate Notes Series 2006-11 AAA/Watch Neg AAA 99.9772 Aphex Capital PLC EUR30 Million SENWAI Secured Callable Portfolio Credit-Linked Floating-Rate Notes Series 2006-33 AA/Watch Neg AA 99.1147 Argon Capital PLC US$51 Million Limited-Recourse Secured Credit-Linked Floating- Rate Notes Series 60 A-/Watch Neg A- 99.9406 Argon Capital PLC US$36 Million Limited-Recourse Secured Credit-Linked Floating- Rate Notes Series 61 BBB-/Watch Neg BBB- 99.8100 Astir B.V. EUR150 Million And EUR100 Million Tap Issuance Floating-Rate Variable Coupon Amount Credit-Linked Notes Series 14 (Regatta) AA/Watch Neg AA 99.9904 Astir B.V. EUR10 Million Fixed-Rate Variable Coupon Amount Credit-Linked Notes Series 15 (Regatta) AA/Watch Neg AA 99.9904 Astir B.V. EUR210 Million Floating-Rate Variable Coupon Credit-Linked Notes Series 18 (Isara) B A/Watch Neg A 99.7895 Asset Repackaging Trust Six B.V. EUR5 Million Floating-Rate Portfolio Credit-Linked Secured Notes Series 5 AA+ AA+/Watch Neg 100.441 Cerigo Capital Ltd. EUR49 Million And US$1 Million Denominated Secured Floating-Rate Credit-Linked Notes Series 2007-1 (Dolomite) A-e1 AA+/Watch Neg AA+ 99.8000 Chiswell Street Finance Ltd. EUR135.5 Million Floating-Rate Credit-Linked Notes A AA-/Watch Neg AA- 99.4099 C BBB-/Watch Neg BBB- 99.6986 E BB+/Watch Neg BB+ 99.6255 F BB/Watch Neg BB 99.7484 Claris Ltd. EUR28.57 Million Rainbow Floating-Rate Credit-Linked Notes Series 12 AA-/Watch Pos AA- 100.9719 Claris IV Ltd. EUR40 Million Carmel Valley 2006-3 Synthetic CDO Of RMBS Variable-Rate Notes Series 5 BBB+/Watch Neg BBB+ 99.4370 Cloverie PLC JPY500 Million Class A Fixed-Rate Portfolio Credit-Linked Notes Series 2005-09 (Palladio III) AAA/Watch Neg AAA 99.8336 Cloverie PLC JPY1 Billion Class B Fixed-Rate Portfolio Credit-Linked Notes Series 2005-11 (Palladio III) B AAA/Watch Neg AAA 98.3133 Cloverie PLC EUR50 Million Class C Floating-Rate Portfolio Credit-Linked Notes Series 2005-12 (Palladio III) C AA/Watch Neg AA 99.0509 Curzon Funding Ltd. US$80 Million Step-Up Notes Series 2006-2 (Horizon CDO VII) D BBB BBB/Watch Neg 100.4016 Delta CDO PLC US$83.5 Million Floating-Rate Credit-Linked Secured Notes Series 2005-1 B-1 AA/Watch Neg AA 99.7759 C-1 BBB+/Watch Neg BBB+ 99.7073 D-1 BB+/Watch Neg BB+ 99.5749 Delta CDO PLC US$142.5 Million Floating-Rate Credit-Linked Secured Notes Series 2005-2 E-1 A-/Watch Neg A- 99.7622 Deutsche Bank AG and Deutsche Securities Inc. US$150 Million Floating-Rate Unfunded Credit Default Swap (Tsar 16 Portfolio) A-2 AA+/Watch Neg AA+ 96.3784 Eirles Two Ltd. EUR27.5 Million Variable-Rate Secured Notes Series 223 BBB-/Watch Neg BBB- 99.8492 Eirles Two Ltd. EUR42.75 Million Variable-Rate Secured Notes Series 224 BB/Watch Neg BB 99.7970 Eirles Two Ltd. EUR26.125 Million Variable-Rate Secured Notes Series 225 B+/Watch Neg B+ 99.8950 Eirles Two Ltd. EUR26.125 Million Variable-Rate Secured Notes Series 226 B-/Watch Neg B- 99.8571 Eirles Two Ltd. US$20 Million Secured Floating-Rate Portfolio Credit-Linked Notes Series 236 A+/Watch Neg A+ 99.5105 Eirles Two Ltd. US$16.5 Million Class B Variable-Rate Secured Notes Series 269 B BB/Watch Neg BB 99.9511 Eirles Two Ltd. US$25 Million Floating-Rate Portfolio Credit-Linked Secured Notes Series 274 BBB-/Watch Neg BBB- 98.3527 Eirles Two Ltd. US$17 Million Variable-Rate Secured Notes Series 307 A-4 BBB/Watch Neg BBB 99.9034 Eirles Two Ltd. JPY3.7 Billion Variable-Rate Secured Notes Series 317 A-4 BBB/Watch Neg BBB 99.9034 ELM B.V. EUR50 Million Secured Floating-Rate Notes Series 8 A-/Watch Pos A- 106.1765 Elva Funding PLC US$62.5 Million Secured Credit-Linked Floating And Variable-Rate Notes Series 2007-10 C1 A+/Watch Neg A+ 99.9500 C2 A+/Watch Neg A+ 99.9500 Far East Funding I SPC Ltd. US$20 Million Deferrable Notes Series 2007-01 A/Watch Neg A 99.9418 Far East Funding I SPC Ltd. US$50 Million Deferrable Notes Series 2007-06 AA-/Watch Neg AA- 99.9890 Far East Funding I SPC Ltd. US$24 Million Deferrable Notes Series 2007-09 A/Watch Neg A 99.9418 Far East Funding I SPC Ltd. JPY1.5 Billion Deferrable Notes Series 2007-14 A/Watch Neg A 99.9558 Heartland Funding PLC EUR20 Million Tranche A Secured Floating-Rate Notes Series 2007- 4 (PICCADILLY II) A AA/Watch Neg AA 99.3704 Heartland Funding PLC EUR5 Million Tranche D Secured Floating-Rate Notes Series 2007-6 (PICCADILLY II) D BBB-/Watch Neg BBB- 99.9777 Heather Finance Ltd. EUR85 Million Credit-Linked Floating-Rate Notes Series 2004-04 I AAA/Watch Neg AAA 88.8889 Herald Ltd. US$121.4 Million Floating-Rate Credit-Linked Secured Notes (Logan CDO) Series 25 BBB+/Watch Neg BBB+ 97.0878 Herald Ltd. US$19.2 Million Floating-Rate Credit-Linked Secured Notes (Logan CDO) Series 26 BBB-/Watch Neg BBB- 97.8329 Herald Ltd. US$17.2 Million Floating-Rate Credit-Linked Secured Notes (Logan CDO) series 27 BB-/Watch Neg BB- 99.0641 Khamsin Credit Products (Netherlands) II B.V. EUR17.5 Million Floating-Rate Credit-Linked Notes Series 2005-1 (Milan) BB+/Watch Neg BB+ 99.2580 Linker Finance PLC US$86.5 Million Class B Floating-Rate Secured Notes Series 2 (Tsar 16) B BB+/Watch Neg BB+ 99.0951 Linker Finance PLC US$28.5 Million Class C Floating-Rate Secured Notes Series 3 (Tsar 16) C B-/Watch Neg B- 99.9937 Lunar Funding V PLC US$30 Million Limited-Recourse Secured Floating-Rate Credit- Linked Notes Series 2006-27 B B/Watch Neg 101.3292 Lunar Funding V PLC US$80 Million Limited-Recourse Secured Floating-Rate Credit- Linked Notes Series 2006-28 CCC+ CCC+/Watch Neg 100.7311 Lunar Funding V PLC US$25 Million Limited-Recourse Secured Floating-Rate Credit- Linked Notes Series 2006-29 CCC CCC/Watch Neg 100.1333 Lunar Funding V PLC US$200 Million Secured Floating-Rate Credit-Linked Notes (Menton CDO I) D2 AA/Watch Neg AA 99.6930 Mainsail CDO I Ltd. US$298.25 Million Secured Floating Credit-Linked Notes A1 BB/Watch Neg BB 90.3653 A2 CCC/Watch Neg CCC 95.9864 Menton CDO II PLC US$104.5 Million Secured Floating-Rate Credit-Linked Notes A-1 AA/Watch Neg AA 99.9380 A-2 AA-/Watch Neg AA- 99.2852 B BB+/Watch Neg BB+ 99.8569 Menton CDO IV Ltd. US$250 Million Secured Floating-Rate Notes A-1 AAA/Watch Neg AAA 98.4462 A-2 BBB/Watch Neg BBB 98.4118 Omega Capital Investments PLC NOK200 Million And EUR16 Million Secured Floating-Rate Notes Due 2013 Series 28 Broadway A1-7E AA+/Watch Neg AA+ 99.9977 A2-7N AA+/Watch Neg AA+ 99.9977 B1-7E AA-/Watch Neg AA- 99.9330 Omega Capital Investments PLC CHF21 Million EUR26 Million And US$16 Million Secured Floating- Rate Notes Series 36 A AA AA/Watch Neg 101.8567 B AA AA/Watch Neg 101.8567 D AA AA/Watch Neg 101.8567 E AA AA/Watch Neg 101.8068 F AA AA/Watch Neg 101.8068 G AA AA/Watch Neg 101.8068 Prime Square CDO Ltd. US$50 Million Tranche Ba & Bb PRIMO Secured Floating-Rate Notes Series 2006-1 Ba AA/Watch Neg AA 99.9596 Bb AA/Watch Neg AA 99.9596 Prime Square CDO Ltd. EUR10 Million Tranche B PRIMO Secured Floating-Rate Notes Series 2006-2 B AA/Watch Neg AA 99.9348 Prime Square CDO Ltd. US$5 Million Tranche C PRIMO Secured Floating-Rate Notes Series 2006-3 C A/Watch Neg A 99.9041 Prime Square CDO Ltd. EUR6 Million Tranche A PRIMO Secured Floating-Rate Notes Series 2006-4 A AAA/Watch Neg AAA 99.9015 Prime Square CDO Ltd. EUR20 Million Tranche C PRIMO Secured Floating-Rate Notes Series 2006-5 C A/Watch Neg A 99.9041 Prime Square CDO Ltd. US$20 Million Tranche B PRIMO Secured Floating-Rate Notes Series 2006-6 B AA/Watch Neg AA 99.9596 Prime Square CDO Ltd. JPY2,000 Million Tranche A PRIMO Secured Floating-Rate Notes Series 2006-7 A AAA/Watch Neg AAA 99.9015 Prime Square CDO Ltd. JPY2 Billion Tranche A PRIMO Secured Floating-Rate Credit-Linked Notes Series 2006-8 A AAA/Watch Neg AAA 99.9015 Prime Square CDO Ltd. JPY1 Billion Tranche B PRIMO Secured Floating-Rate Credit-Linked Notes Series 2006-9 B AA/Watch Neg AA 99.9596 Rente Plus Co. Ltd. EUR70 Million Rente Plus Notes 2 Series 1 AA-/Watch Neg AA- 99.0909 Rheinwest Credit Management EUR15 Million Credit-Linked Floating-Rate Notes Series 10 A+/Watch Neg A+ 99.9066 Rheinwest Credit Management EUR15 Million Credit-Linked Floating-Rate Notes Series 16 A-/Watch Neg A- 99.9228 Salisbury International Investments Ltd. US$15 Million Floating-Rate Portfolio Credit-Linked Notes Series 2005-9 AA/Watch Neg AA 99.9830 Saphir Finance PLC EUR15 Million Variable-Rate Credit-Linked Synthetic Portfolio Notes Series 2005-7 Class A2 (Tulip Lane) A2 AA AA/Watch Neg 105.3766 Saphir Finance PLC EUR25 Million Spring Sand 10 Years Non-Call 5 Years Step-Up CMS Credit-Linked Synthetic Portfolio Notes Series 2006-6 AA+/Watch Neg AA+ 99.9762 Saphir Finance PLC EUR50 Million Credit-Linked Synthetic Portfolio Notes Series 2007-1 AA+/Watch Neg AA+ 99.8295 Saphir Finance PLC EUR100 Million Credit-Linked Synthetic Portfolio Notes Series 2007-5 AA/Watch Neg AA 99.9177 Sceptre Capital B.V. EUR20 Million Forward-Starting Synthetic CDO Floating-Rate Notes Series 2006-01 A AA/Watch Neg AA 99.8151 Starling Finance PLC JPY500 Million Class C Floating-Rate Brevan Howard CDO I Portfolio Credit-Linked Notes Series 2007-04 A+/Watch Neg A+ 99.7427 Starling Finance PLC JPY1.1 Billion Class B Floating-Rate Brevan Howard CDO I Portfolio Credit-Linked Notes Series 2007-005 AA/Watch Neg AA 99.854 Starling Finance PLC JPY1.1 Billion Class B Floating-Rate Brevan Howard CDO I Portfolio Credit-Linked Notes Series 2007-015 B AA+/Watch Neg AA+ 99.5547 Topaz Finance Ltd. EUR25 Million Tulip Lane CDO Of CDO Variable-Rate Credit-Linked Synthetic Portfolio Notes Series 2005-2 BBB BBB/Watch Neg 102.1536 Xelo PLC EUR10 Million Secured Limited-Recourse Credit-Linked Notes (Piccadilly 7) Series 2006 A+/Watch Neg A+ 99.7585 Xelo PLC EUR 40 Million Secured Limited-Recourse Credit-Linked Notes Series 2006 (Spinnaker III Europe Series 1) AAA/Watch Neg AAA 99.9722 Xelo PLC EUR10 Million Secured Limited Resource Credit-Linked Notes Series 2006 (Spinnaker III Europe TRED 1 Series 1) AAA/Watch Neg AAA 99.9722 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jason Nieva, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, and Marites Claro, Editors. Copyright 2008. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *