/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080508.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 Thursday, May 8, 2008, Vol. 9, No. 91 Headlines A U S T R I A GK OBJEKTERRICHTUNG: Claims Registration Period Ends May 13 GOLF IMMOBILIENMAKLER: Claims Registration Period Ends June 10 KPS BIKE&CAR: Claims Registration Period Ends May 13 MAGNA ENTERTAINMENT: Posts US$46.5 Million Net Loss in 1st Qtr. B E L G I U M CHEMTURA CORP: S&P Cuts Ratings to BB; Still on Watch Developing FEDERAL-MOGUL: Posts US$32 Million Net Loss in 2008 1sr Qtr. FEDERAL-MOGUL: PepsiAmericas Seeks Okay on US$6MM Claims Payment F I N L A N D FAIRCHILD SEMICONDUCTOR: S&P Lifts Ratings on Debt Refinancing F R A N C E DOLLFUS MIEG: Paris Court Places Companies in Receivership SPANSION INC: Fitch Affirms Issuer Default Rating at B- G E R M A N Y ASB AUTOSERVICE: Claims Registration Period Ends May 28 AUTO-CENTER SELM: Claims Registration Period Ends May 28 AUTOMATEN SALES: Claims Registration Period Ends May 28 BOMBARDIER INC: Moody's Holds Ba2 Ratings on Improved Operations COMPLETTBAUHAUS GMBH: Claims Registration Period Ends May 28 EIKA WACHSWERKE: To Resume Candle Production After CRT Takeover ELBE - LOGISTIK: Claims Registration Period Ends May 28 ETT ELEKTRO-TECHNIK: Claims Registration Period Ends May 21 HELI-FLIGHT VERWALTUNGS: Claims Registration Period Ends May 20 KMT - KUNSTSTOFF: Claims Registration Period Ends May 16 L. U. B. AUTOHANDEL: Claims Registration Period Ends May 20 LA STEWARDING: Claims Registration Period Ends May 15 MOSER & HARMS: Claims Registration Ends May 27 PERMANENT PERFECT: Claims Registration Ends May 27 PETER ROTH: Claims Registration Ends May 28 PROTEK HAUSBAU: Claims Registration Ends May 27 SCHWEDLER GMBH: Claims Registration Ends May 27 TSK GMBH: Creditors' Meeting Slated for May 28 UBS AG: BlackRock In Talks for Fund to Manage Mortgage Assets I R E L A N D CAMBER 4: Moody's May Further Cut Junk Ratings After Review EIRLES TWO: Fitch Junks Rating on Series 219 Notes EIRLES TWO: Fitch Puts Junks Ratings on Four Builder 2 Notes EIRLES TWO: Fitch Cuts Ratings on Three Builder 3 Note Classes EIRLES TWO: Fitch Junks Rating on Class B and E Builder 4 Notes LUNAR FUNDING V: Fitch Cuts Ratings on Three Celts Leveraged MBS I T A L Y ALITALIA SPA: AirOne Links with Berlusconi Adviser on Stake Sale ALITALIA SPA: Unicredit Denies Possible Bid with Lufthansa FIAT SPA: Iveco Defers Entry Into the United States K A Z A K H S T A N AKTOBE TULPAR: Claims Deadline Slated for June 20 ARMAN-BATYR LLP: Claims Registration Ends June 25 CONCEPT-AUTODIAGNOSTIKA LLP: Creditors' Claims Due on June 20 EKIBASTUZ STROYPUT: Creditors Must File Claims by June 25 KAZTECHMASH LLP: Claims Deadline Slated for June 25 KOKSHETAU AGROPROMTECHNIKA: Claims Filing Period Ends June 25 KURYLYS IPOTEKA: Asset Sale Slated for May 12, 2008 KURYLYS-ORTALYGY LLP: Creditors Must File Claims by June 20 TEMIRBANK: Moody's Lowers Unsecured Debt Ratings to Ba3 K Y R G Y Z S T A N SMEN-STROY LLC: Creditors Must File Claims by June 13 L U X E M B O U R G LECTA SA: Moody's May Further Cut Ba3 Rating After Review N E T H E R L A N D S IMAX CORP: Amends Facility; Sells US$18MM in Common Shares IMAX CORPORATION: Shareholders' Meeting Scheduled for June 18 P O L A N D ELEKTRIM SA: Enea May Not Get Consent to Acquire ZEPAK Shares PRIMA CHARTER: Warsaw Court Declares Bankruptcy R U S S I A APRIL-PLUS CJSC: Creditors Must File Claims by May 26 BUTTER-CHEESE DIARY: Creditors Must File Claims by May 26 OKAMET LLC: Creditors Must File Claims by May 26 OM-STROY CJSC: Omsk Bankruptcy Hearing Slated for September 2 S-L-S CJSC: Court Names P. Paramzin as Insolvency Manager SIB-REM-SERVICE: Creditors Must File Claims by June 26 TSVILLINGSKIY ELEVATOR: Creditors Must File Claims by May 26 S P A I N * Companies Filing for Insolvencies in Spain Up by 79% S W E D E N DOLE FOOD: Posts US$28.9 Million Net Loss in Qtr. Ended March 22 DOLE FOOD: Fitch Says Credit Protection Measures Still Weak S W I T Z E R L A N D DORIS DAMEN: Creditors' Liquidation Claims Due by May 18 ING. N. FURNSINN: Proofs of Claim Filing Deadline is May 18 LINAX JSC: Liestal Court Commences Bankruptcy Proceedings LEO RICKENBACH: Sursee Court Initiates Bankruptcy Proceedings MAILWEASEL LLC: Creditors' Proofs of Claim Due by May 18 RESTAURANT SCHWEIZERHOF: Creditors' Claims Due by May 17 SANDRO KORKEL: Creditors' Liquidation Claims Due by May 18 STYLE LLC: Deadline for Filing Proofs of Claim is May 18 TEMPUS SERVICE: Creditors' Proofs of Claim Due by May 17 U K R A I N E BREADMAKER LLC: Creditors Must File Claims by May 17 CITADEL BUILDING: Proofs of Claim Deadline Set May 17 DNIPRO CJSC: Proofs of Claim Deadline Set May 21 INTERFICOM LLC: Creditors Must File Claims by May 18 OBRIY LLC: Creditors Must File Claims by May 18 POGREBISCHEAL AGRICULTURAL: Proofs of Claim Deadline Set May 21 RITA-LTD: Proofs of Claim Deadline Set May 18 SVETLANA LLC: Proofs of Claim Deadline Set May 18 ZEMLIA LLC: Creditors Must File Claims by May 18 U N I T E D K I N G D O M ALPHASTREAM INTERNATIONAL: Taps Liquidators from Vantis BAA LIMITED: Manchester Airports Group May Acquire Assets BRITISH ENERGY: Centrica & EDF in Talks over Possible Bid BURNLEY PACKAGING: Brings In Liquidators from Tenon Recovery CHRYSLER LLC: Fitch Cuts Issuer Default Rating to B from B+ CLARIS LTD: Moody's Cuts Rating to B2 on Napa Valley VI Notes EOS AIRLINES: Wants to Hire Kurtzman Carson as Claims Agent EOS AIRLINES: Wants Alvarez & Marsal as Financial Advisor FORD MOTOR: Fitch Says Ratings Outlook Remains Negative GENERAL MOTORS: Fitch Says Ratings Could Face Likely Downgrade INSTORE DESIGN: David Elliott Leads Liquidation Procedure NORTHAMPTON PRINT: Calls In Liquidators from Tenon Recovery PHOENIX 2002-1: Moody's May Further Cut Ba1 Rating After Review SOUTH COAST: Appoints Liquidators from Tenon Recovery SPLASHPOWER LTD: Fulton Acquires Business and Assets THE WORKS: Inks GBP17 Million Management Buy-In Deal * UK Insolvency Helpline to Offer Repossession Counseling * S&P Places 24 European Cash CDO of ABS Tranches on Watch Neg. * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= GK OBJEKTERRICHTUNG: Claims Registration Period Ends May 13 ----------------------------------------------------------- Creditors owed money by LLC GK Objekterrichtung (FN 249739p) have until May 13, 2008, to file written proofs of claim to court-appointed estate administrator Gernot Goetz at: Mag. Gernot Goetz Tirolerstrasse 18 9800 Spittal/Drau Austria Tel: 04762/53 52, 24 75 Fax: 04762/2766 E-mail: rechtsanwaelte@hammerschmidt-goetz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on May 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Room 235 Second Floor Klagenfurt Austria Headquartered in Obervellach, Austria, the Debtor declared bankruptcy on April 15, 2008 (Bankr. Case No. 41 S 39/08w). GOLF IMMOBILIENMAKLER: Claims Registration Period Ends June 10 -------------------------------------------------------------- Creditors owed money by LLC Golf Immobilienmakler (FN 42206v) have until June 10, 2008, to file written proofs of claim to court-appointed estate administrator Christof Stapf at: Dr. Christof Stapf c/o Mag. Michael Neuhauser Esslinggasse 7 1010 Vienna Austria Tel: 90 333 Fax: 90 333 44 E-mail: wien@snwlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on June 24, 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 April 15, 2008 (Bankr. Case No. 4 S 49/08w). Michael Neuhauser represents Dr. Stapf in the bankruptcy proceedings. KPS BIKE&CAR: Claims Registration Period Ends May 13 ---------------------------------------------------- Creditors owed money by LLC KPS Bike&Car Handel (FN 252154s) have until May 13, 2008, to file written proofs of claim to court-appointed estate administrator Harald Skrube at: Dr. Harald Skrube Peraustrasse 19 9500 Villach Austria Tel: 04242/24123 Fax: 04242/23447 E-mail: kanzlei@rechtsanwalt-villach.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 20, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Room 225 Second Floor Klagenfurt Austria Headquartered in Villach, Austria, the Debtor declared bankruptcy on April 15, 2008 (Bankr. Case No. 40 S 21/08s). MAGNA ENTERTAINMENT: Posts US$46.5 Million Net Loss in 1st Qtr. --------------------------------------------------------------- Magna Entertainment Corp. disclosed Tuesday its financial results for the first quarter ended March 31, 2008. Including discontinued operations, the company reported a net loss of US$46.5 million for the quarter ended March 31, 2008, compared with net income of US$2.5 million in the same period last year. Discontinued Operations Discontinued operations for the three months ended March 31, 2008, and 2007, include the operations of Remington Park in Oklahoma, Thistledown in Ohio, Portland Meadows in Oregon, Great Lakes Downs in Michigan and Magna Racino(TM) in Austria. The net loss from discontinued operations was US$33.5 million for the three months ended March 31, 2008, compared to a net loss of US$3.2 million in 2007. The net loss in 2008 includes write-downs of US$29.2 million related to Magna Racino(TM) long- lived assets and US$3.1 million related to Instant Racing terminals and the associated facility at Portland Meadows. Revenues Revenues from continuing operations were US$231.0 million for the three months ended March 31, 2008, a decrease of US$23.2 million or 9.1% compared to US$254.2 million for the three months ended March 31, 2007. The decreased revenues from continuing operations were primarily due to a decline in California revenues of US$17.2 million due to a net loss of eight live race days at Santa Anita Park as a result of excessive rain and track drainage issues affecting the new synthetic racing surface that was installed in the fall of 2007. In addition, Golden Gate Fields ran one less live race day in the three months ended March 31, 2008, compared to the prior year period. EBITDA from Continuing Operations EBITDA from continuing operations decreased to US$15.9 million for the three months ended March 31, 2008, versus US$24.6 million for the three months ended March 31, 2007. Management's Comments Frank Stronach, chairman and interim chief executive officer commented: "We are very disappointed with our first quarter operating results, some of which can be attributed to weather and track drainage issues at Santa Anita Park beyond our control, and some of which reflect short-term disruptions as we continue to build out our Gulfstream Park commercial joint venture with Forest City. I remain fully committed to implementing the company's previously announced debt elimination plan, and to seeing the operating results dramatically improved. I remain optimistic about MEC's medium term prospects". Blake Tohana, executive vice-president and chief financial officer, commented: "Although the weak U.S. real estate and credit markets have slowed our progress to date on asset sales, we remain firmly committed to our debt elimination plan. In April 2008, we completed the sale of 225 acres of excess real estate located in Ebreichsdorf, Austria to a subsidiary of Magna International Inc. for a purchase price of EUR20.0 million (US$31.6 million). In January 2008, we sold our remaining two parcels of excess real estate located in Porter, New York for cash consideration of US$1.5 million. The net proceeds received from these transactions were used entirely to repay debt." Cash Flows During the three months ended March 31, 2008, cash used in continuing operations was US$3.6 million, which improved US$12.4 million from cash used in continuing operations of US$16.0 million in the three months ended March 31, 2007, primarily due to the increased loss from continuing operations being more than offset by increased depreciation, future tax expense and the write-down of long-lived assets and decreased balances relating to due from parent and other accrued liabilities relative to the prior year period. Cash provided from financing activities during the three months ended March 31, 2008, of US$16.9 million includes net borrowings of US$16.9 million from the company's controlling shareholder and US$500,000 from bank indebtedness, partially offset by net repayments of US$500,000 of long-term debt. The company said that although it continues to implement its debt elimination plan, the sale of assets under the debt elimination plan is taking longer than originally contemplated and, as a result, the company will likely need to seek extensions from existing lenders and additional funds in the short-term from one or more possible sources. Balance Sheet At March 31, 2008, the company's consolidated balance sheet showed US$1.2 billion in total assets, US$914.9 million in total liabilities, and US$318.2 million in total stockholders' equity. The company's consolidated financial statements at March 31, 2008, also showed strained liquidity with US$286.9 million in total current assets available to pay US$436.5 million in total current liabilities. Going Concern Disclaimer Ernst & Young LLP in Toronto, Canada, expressed substantial doubt about Magna Entertainment Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years Dec. 31, 2007, and 2006. The auditing firm pointed to the company's recurring operating losses and working capital deficiency. At March 31, 2008, the company had US$229.1 million of debt due to mature in the 12-month period ending March 31, 2009, including amounts owing under the company's US$40.0 million senior secured revolving credit facility with a Canadian financial institution, which is scheduled to mature on May 23, 2008, amounts owing under its bridge loan facility of up to US$80.0 million with a subsidiary of MI Developments Inc., the company's controlling shareholder, which is scheduled to mature on May 31, 2008, and the company's obligation to repay US$100.0 million of indebtedness under the Gulfstream Park project financings with a subsidiary of MID by May 31, 2008. About Magna Entertainment Headquartered in Aurora, Ontario, Magna Entertainment Corp. (Nasdaq: MECA)(TSX: MEC.A) -- http://www.magnaentertainment.com/ -- acquires, develops, owns and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities. The company also develops, owns and operates casinos in conjunction with its racetracks where permitted by law. The company has subsidiaries in Austria. ============= B E L G I U M ============= CHEMTURA CORP: S&P Cuts Ratings to BB; Still on Watch Developing ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior secured debt ratings of Chemtura Corp. to 'BB' from 'BB+'. The ratings remain on CreditWatch with developing implications, where they were placed Dec. 19, 2007. The downgrade reflects our expectation that cash flow protection measures will not strengthen to, and be sustained at, levels appropriate for the prior rating, although profitability should improve near term. "The CreditWatch developing reflects management's ongoing consideration of strategic alternatives, which calls into question its financial policies," said Standard & Poor's credit analyst Wesley E. Chinn. CreditWatch with developing implications means we could raise, lower, or affirm the ratings, depending on management's actions. Chemtura's diversified portfolio of specialty and industrial chemical businesses (generating annual revenues of over US$3.5 billion) presents management with a range of options. S&P would lower the ratings if a leveraged buyout of the firm were to occur or if management initiated actions detrimental to our expectations of prospective financial metrics. Conversely, we would raise the ratings if a substantially stronger entity acquired Chemtura, but this does not appear to be a strong possibility at this time. If management's review of strategic alternatives concludes that the company should not take any actions at this time, we could affirm the ratings and assign a stable outlook. This would be based on the expectation that the company will be able to achieve earnings progress in the next few years and that debt levels would not experience any increase because of acquisitions. Overall earnings for 2008 could show good improvement from 2007's weak results, helped by a strong agricultural economy in Europe, cost savings in pool chemicals, another strong contribution by the performance specialties segment (mostly the petroleum additives and urethanes businesses), and reduced manufacturing costs and selling, general, and administrative expenses in polymer additives. S&P also expect operating margins to strengthen from the lackluster 12% for 2007. However, the company's ability to increase selling prices and manage the continuing inflation in raw material and energy costs against the backdrop of a slowing U.S. economy will continue to be major challenges and constrain consolidated earnings progress. If Chemtura does not initiate any strategic actions near term, we expect acquisitions for the balance of 2008 to be limited to bolt-on transactions. Moreover, operating earnings for 2008 will benefit from lower total charges associated with facility closures and severance and impairment of long-lived assets, and reduced losses on the sale of assets, all arising from the substantial portfolio realignment projects of recent years. Outlays for legacy antitrust liabilities will also be lower. Consequently, the company could generate a moderate amount of discretionary cash flow this year, which it could use to partially address $400 million of debt due in 2009. Higher earnings as well as possible debt reduction would benefit the key funds from operations to adjusted debt ratio, which is expected to be in the area of 20% for 2008, up modestly from the prior year's performance. S&P views 20% to 25% as the target range for that cash flow protection measure for the current ratings. FEDERAL-MOGUL: Posts US$32 Million Net Loss in 2008 1sr Qtr. ------------------------------------------------------------ Federal-Mogul Corp. reported its first quarter 2008 financial results with record quarterly sales of US$1.86 billion, an increase of 8% over the same period of the prior year. According to a company press release, during the first quarter, the company recorded a one-time, non-cash charge of US$68 million relating to re-valuation of inventory, as required by fresh start reporting following emergence from Chapter 11 in December 2007. The company reported a net loss of US$32 million as compared to net income of US$5 million in the first quarter of 2007. Without the inventory charge and the associated tax impact, net income would have been US$32 million, or 2% of sales. Approximately US$206 million or 11% for Q1 2008, up from the same period in 2007 when the company reported Operational EBITDA of US$199 million. Financial Summary (in millions) Three Months Ended March 31 -------------- 2008 2007 ------ ------ Net sales US$1,859 US$1,716 Gross margin 266 308 Adjusted gross margin 335 308 Selling, general & admin expenses (209) (207) Net income (loss) (32) 5 Adjusted net income 32 5 Operational EBITDA 206 199 During the quarter, sales were US$1.86 billion, up US$143 million, or eight percent above the same period in 2007. The sales results were impacted by favorable currency exchange of US$120 million and increased sales of US$23 million, principally to European original equipment vehicle manufacturers. The company continues to benefit from strong new business bookings with balanced regional sales and a globally diverse customer base with no single customer accounting for more than seven percent of global sales as of Dec. 31, 2007. Federal-Mogul realized a gross margin of US$266 million or 14.3% of sales in the first quarter of 2008, versus US$308 million or 17.9% of sales in the first quarter of 2007. The gross margin was unfavorably impacted by a US$68 million, non-cash inventory adjustment previously discussed. Without the inventory adjustment, gross margin for the quarter would have been US$335 million, or 9% above the prior year and at 18% of sales. This improvement shows that the company maintained its operating performance in spite of ongoing raw materials, energy and other general industry cost pressure. Selling, general and administrative expense for the quarter was US$209 million, in comparison to US$207 million in the same period in 2007. SG&A as a percentage of sales was favorably reduced in the first quarter of 2008 to 11.2% compared to 12.1% in the same period a year ago. The change in SG&A comprised a reduction of US$8 million offset by unfavorable currency exchange of US$10 million during the quarter. Federal-Mogul reported cash flow for the first quarter of 2008 of US$49 million, which compares favorably to US$12 million in the same period of 2007. On April 23, Federal-Mogul listed its Class A Common Stock on the NASDAQ Global Market, and will trade under the symbol "FDML." "We are pleased to report a strong quarter, which shows the benefits of our solid operating performance, combined with our customer, regional and product line diversification. More than 60 percent of our revenue in the quarter was generated outside the U.S.," said President and Chief Executive Officer Jose Maria Alapont. "The operational EBITDA is improved as a result of our restructuring and cost-reduction efforts as outlined in our strategy for sustainable global profitable growth." At March 31, 2008, the Federal-Mogul's balance sheet total assets of US$8,245,200,000 and total liabilities of US$6,080,300,000, resulting in a US$2,164,900,000 billion stockholders' equity. A full-text-copy of Federal-Mogul Corp.'s First Quarter 2008 Results filed on Form 10-Q is available at no charge at: http://ResearchArchives.com/t/s?2b8a About Federal-Mogul Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (Nasdaq: FDML) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has subsidiaries in these countries: Argentina, Australia, Belgium, Bermuda, Brazil Canada, China, Czech Republic, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Mexico, Netherlands, Poland, Russia, Singapore, Spain, Switzerland, Taiwan, Thailand, and the United Kingdom. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. Federal-Mogul emerged from Chapter 11 on Dec. 27, 2007. (Federal-Mogul Bankruptcy News, Issue No. 167; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Federal-Mogul's Corporate Family Rating is rated by Moody's Investors Service at Ba3 with a stable outlook. Standard & Poor's Ratings Services meanwhile puts the company's corporate credit rating at BB-. S&P also put a stable outlook on the rating. FEDERAL-MOGUL: PepsiAmericas Seeks Okay on US$6MM Claims Payment ---------------------------------------------------------------- PepsiAmericas, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to allow Claim Nos. 6093 and 6441 as administrative priority expense claims and to direct Federal-Mogul Corp. and its debtor-affiliates to pay those claims. The Claims assert damages, aggregating more than US$6,000,000, arising from: -- the Reorganized Debtors' alleged breach of a purchase agreement with PepsiAmericas' predecessor; and -- damages incurred by PepsiAmericas as a result of a lawsuit the Reorganized Debtors filed in an Ohio state court relating to certain insurance policies. Kirk T. Hartley, Esq., at Butler Rubin Saltarelli & Boyd LLP, in Chicago, Illinois, asserts that the Claims are administrative claims and PepsiAmericas has a right to recover for its losses as administrative claims. Mr. Hartley relates that in December 2007, the Debtors filed an insurance coverage complaint in an Ohio state court seeking recovery from various insurers for expenses incurred in connection with various "environmental sites." The State Court Action includes allegations regarding the purported rights of the Debtors to recover monies from insurance policies issued to PepsiAmericas. Mr. Hartley asserts that by filing the State Court Action, the Reorganized Debtors have trespassed against the chattels of PepsiAmericas and have caused harm to PepsiAmericas. Mr. Hartley tells the Court that one of the insurer defendant, Liberty Mutual Insurance Company, demanded from PepsiAmericas reimbursement of all expenses and losses it incurred in connection with the State Court Action. He says the Reorganized Debtors have provided to PepsiAmericas some indications that they intend to limit or dismiss the claims in the State Court Action in the future. However, Mr. Hartley notes that there is no concrete assurances that the Debtors will accomplish a dismissal at a certain time. About Federal-Mogul Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (Nasdaq: FDML) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has subsidiaries in these countries: Argentina, Australia, Belgium, Bermuda, Brazil Canada, China, Czech Republic, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Mexico, Netherlands, Poland, Russia, Singapore, Spain, Switzerland, Taiwan, Thailand, and the United Kingdom. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. Federal-Mogul emerged from Chapter 11 on Dec. 27, 2007. (Federal-Mogul Bankruptcy News, Issue No. 167; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Federal-Mogul's Corporate Family Rating is rated by Moody's Investors Service at Ba3 with a stable outlook. Standard & Poor's Ratings Services meanwhile puts the company's corporate credit rating at BB-. S&P also put a stable outlook on the rating. ============= F I N L A N D ============= FAIRCHILD SEMICONDUCTOR: S&P Lifts Ratings on Debt Refinancing -------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on South Portland, Maine-based Fairchild Semiconductor International Inc. to 'BB' from 'BB-'. The outlook is stable. At the same time, S&P affirmed the 'BB' issue-level rating on Fairchild Semiconductor Corp.'s senior secured credit facilities following the company's proposed US$100 million add-on to its US$375 million term loan. The recovery rating has been revised to '3', indicating the expectation for meaningful (50% to 70%) recovery in the event of a payment default, from '2'. The secured financing will consist of a US$475 million term loan and a US$100 million revolving credit facility upon close. The new debt will be issued under the existing credit agreement. Standard & Poor's also raised its issue-level rating on Fairchild Semiconductor Corp.'s senior subordinated debt to 'B+' (two notches below the 'BB' corporate credit rating on parent company Fairchild Semiconductor International) from 'B'. The recovery rating on this debt remains unchanged at '6', indicating the expectation for negligible (0% to 10%) recovery in the event of a payment default. S&P will withdraw both of these ratings upon redemption. The rating actions follow the company's announcement that it will refinance US$200 million of maturing senior subordinated debt with the proposed new senior secured debt, US$50 in million cash, and a draw on its revolving credit facility. Pro forma for the refinancing, leverage improves to about 1.8x, from 2.2x as of March 31, 2008. In addition to the modest impact that the refinancing will have on leverage, operational trends continue to improve modestly. "The rating on Fairchild reflects the company's low margins relative to peers, modest scale, and challenges to improving its product mix," said Standard & Poor's credit analyst Lucy Patricola. "These factors are offset partially by a solid financial profile, selected market strength, and diverse end markets." Fairchild is a vertically integrated manufacturer of a wide variety of power and logic analog semiconductors and integrated circuits. About Fairchild Semiconductor: Fairchild Semiconductor International Inc. (NYSE: FCS) -- http://www.fairchildsemi.com/-- is a supplier of power semiconductors. The company also supplies silicon and packaging technologies, manufacturing strength and system expertise for consumer, communications, industrial, portable, computing and automotive systems. An application-driven, solution-based semiconductor supplier, Fairchild provides online design tools and design centers worldwide. Outside the United States, the company has subsidiaries located in the United Kingdom, Germany, Italy, Japan, Hong Kong, Singapore, Malaysia, South Korea, Mexico, France, India, Mauritius, China, Philippines, Netherlands, Taiwan and Finland. =========== F R A N C E =========== DOLLFUS MIEG: Paris Court Places Companies in Receivership ---------------------------------------------------------- The Paris Commercial Court decided on May 5, 2008, to put Dollfus Mieg & Cie SA into court-ordered receivership (redressement judiciaire) with a six-month observation period, after having examined the cash positions of the DMC companies. The Court also placed these DMC units into receivership: * DMC Tissus with a three-month observation period; and * Loisirs & Creation store chain with a two-month observation period. With the support of the official receivers, these decisions give all the DMC companies the time required to find solutions allowing the interests of the staff and shareholders to be upheld and for a future to be mapped-out for these companies. By introducing appropriate solutions, it should enable all the companies to be provided with the means of facing-up to the constraints being placed on them: the fall of the dollar versus the euro, Asian imports and consumers� concerns about their spending power. As reported in the Troubled Company Reporter-Europe on May 5, 2008, the company notified its Central Works Councils that several Group companies (DMC SA, DMC Tissus and Loisirs & Creation) were experiencing liquidity problems. Headquartered in Paris, France, DMC Dollfus Mieg et Cie -- http://www.dmc.com/-- focuses on three core businesses: sportswear fabrics under the Saic Velcorex brand, DMC creative world and creative-leisure activities. The sportswear division is active in Europe and in the United States and produces corduroy and cotton fabric suitable for the sportswear and leisure clothing industry. DMC creative world specializes in embroidery and offers various types of needle art threads. The creative-leisure activities division operates a chain of 21 stores in France under the name Loisirs & Creation. It offers materials and accessories for handcrafts activities, including needle art, beadwork, fine arts, interior decoration, card- making and children's activities. According to Le Figaro, the group has more than EUR20 million of debt and has not paid its staff since April 2008. SPANSION INC: Fitch Affirms Issuer Default Rating at B- ------------------------------------------------------- Fitch Ratings has affirmed these ratings on Spansion Inc.: -- Issuer Default Rating at 'B-'; -- US$175 million senior secured revolving credit facility due 2010 at 'B/RR3'; -- US$625 million senior secured floating rate notes due 2013 at 'B/RR3'; -- US$225 million of 11.25% senior unsecured notes due 2016 at 'CCC/RR6'; and -- US$207 million of 2.25% convertible senior subordinated debentures due 2016 at 'CCC-/RR6'. The Rating Outlook remains Negative. Approximately US$1.2 billion of debt securities are affected. Ratings concerns and the Negative Outlook center on: i) Fitch's primary credit concern centers on Spansion's weak liquidity position and limited financial flexibility, which worsened during the first fiscal quarter ended March 30, 2008 due to ongoing cash usage. Nonetheless, Fitch believes the company's plans for meaningfully lower capital spending in the second half of 2008 and, likely, for 2009, should enable modestly positive free cash flow over this time-frame. In the first quarter ended March 30, 2008, free cash flow was negative US$171 million, as Spansion continued facilitizing its leading edge manufacturing facility (SP1), which it funded with increased borrowings by under revolving credit facilities, reducing available borrowing capacity to just over US$100 million. ii) Ongoing operating losses, despite the company's increased market share and richer sales mix. After consistently improving profitability in 2007, Spansion's operating margins declined meaningfully to a Fitch-estimated negative 17.8% for the first quarter ended March 31, 2008 versus negative 10.7% for the comparable prior year quarter, driven by higher than anticipated operating expenses. Nonetheless, Fitch expects the company's profitability will gradually improve throughout 2008 as it ramps SP1 and continues marginally internalizing currently outsourced manufacturing. Fitch believes significant profitability expansion will be somewhat constrained by a weakening operating environment, particularly as the company continues to gain share with leading global handset OEMs, who are predicting lower than anticipated demand for 2008 and higher mix of low-cost devices being sold into developing markets. iii) reduced albeit still substantial ongoing capital spending and research and development (R&D) requirements, which should exceed 30% of sales in 2008; iv) Spansion's current limited diversification beyond NOR flash memory markets (although emerging products are expected to address certain NAND and DRAM markets), which Fitch believes reduces the company's tolerance for shortfalls in the commercial success of its technology roadmap or delays in transitioning to ever smaller circuitry nodes. Fitch believes Spansion's leading competitors, Numonyx B.V. and Samsung Electronics Co., benefit from greater financial flexibility and, therefore, are better able to withstand challenging operating environments. The ratings are supported by Fitch's expectations that: i) Spansion will continue to gain market share in the NOR flash memory market over the next few years, driven by ongoing industry consolidation, including an opportunity to become a second source supplier for customers of Intel Corp. and STMicroelectronics N.V., which recently formed a NOR flash memory joint venture (JV), Numonyx; ii) beyond the near-term, Spansion's significant recent investments in leading edge manufacturing technology and ongoing transition to smaller circuit geometries, as well as development of foundry partnerships, should enable the company to achieves sustainable operating profitability through a normalized cycle; iii) Spansion's technology roadmap, including its MirrorBit and ORNAND architectures, will expand the company's addressable market beyond NOR flash memory, potentially strengthening Spansion's longer-term unit growth and profitability prospects. Free cash flow for the second quarter of 2008 meaningfully below Fitch's expectations (negative US$150 million) could result in negative rating actions. Fitch also believes that negative rating actions could result from cash usage in the third or fourth quarters in the absence of additional committed funding. At the same time, Fitch believes the ratings could be stabilized by the company bolstering liquidity with positive free cash flow and/or proceeds from selling non-core assets. As of March 30, 2008, Spansion's liquidity was weak and supported by: i) approximately US$455 million of cash and cash equivalents, of which approximately US$120 million consisted of auction rates securities that Fitch believes, given current market conditions, remain illiquid; ii) approximately US$102 million of availability under the company's revolving credit facilities (subject to certain borrowing base limitations), including Spansion Inc's US$175 million senior secured revolving credit facility due September 2010 supporting liquidity in the U.S. and JPY 14 billion (approximately US$140 million as of Mar. 30, 2008) senior secured revolving credit facility due December 2009 supporting the company's wholly-owned subsidiary, Spansion Japan's, liquidity. Spansion's total debt as of Mar. 30, 2008 was US$1.7 billion and Fitch believes consisted of: i) approximately US$380 million outstanding under a JPY 48.8 billion (approximately US$484 million as of Mar. 30, 2008) Spansion Japan's senior secured credit facility expiring 2010; ii) approximately US$625 million of floating rate senior secured notes due 2013; iii) approximately US$225 million of 11.25% senior unsecured notes due 2016; iv) US$207 million of 2.25% exchangeable senior subordinated debentures due 2016; and v) approximately US$208 million of other debt, including the aforementioned borrowings under various credit facilities and capital leases. The Recovery Ratings and notching reflect Fitch's expectation that Spansion's enterprise value, and hence recovery rates for its creditors, will be maximized as a going concern rather than as in liquidation under a distressed scenario. The lower recovery ratings incorporate Spansion's meaningful decline in operating EBITDA and increased debt levels over the past several quarters, as well as a greater proportion of secured debt within the capital structure. Fitch's analysis assumes Spansion is not restricted by covenants or borrowing bases to fully draw down on its existing bank credit facilities. Given the erosion of Spansion's profitability to nearly distressed levels over the past several quarters, Fitch has reduced the discount to operating EBITDA (in estimating distressed operating EBITDA) for 2007 to 25% from the previous discount of 55%. Fitch believes of US$800 million of rated senior secured debt, including US$625 million of senior secured floating rate notes and a fully drawn US$175 million U.S. revolving bank credit facility, would recover 51%-70% in a reorganization scenario, resulting in a 'RR3' recovery rating. A waterfall analysis provides 0%-10% recovery for the approximately US$225 million of rated senior unsecured debt and US$207 million of senior subordinated notes, both resulting in a recovery rating of 'RR6'. Headquartered in Sunnyvale, California, Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- designs, develops, manufactures, markets and sells flash memory solutions for wireless, automotive, networking and consumer electronics applications. Spansion(R), the Spansion Logo(R), MirrorBit(R), MirrorBit(R) Eclipse(TM), ORNAND(TM), ORNAND2(TM), HD-SIM(TM) and combinations thereof, are trademarks of Spansion LLC. Spansion, the Spansion Logo and MirrorBit are registered in the US and other countries. The company's European unit, Spansion EMEA, is based is France. Spansion Japan Limited, is the company's unit and is headquartered in Japan. ============= G E R M A N Y ============= ASB AUTOSERVICE: Claims Registration Period Ends May 28 ------------------------------------------------------- Creditors of ASB Autoservice & Handel GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Dr. Hubertus Bartelheimer. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on June 25, 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. Hubertus Bartelheimer Bernburger Strasse 32 10963 Berlin Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against ASB Autoservice & Handel GmbH on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ASB Autoservice & Handel GmbH Kalkberger Str. 25-35 15566 Schoeneiche Germany AUTO-CENTER SELM: Claims Registration Period Ends May 28 -------------------------------------------------------- Creditors of Auto-Center Selm GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Dr. Sabine Aldermann. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on July 2, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Gerichtsplatz 22 44135 Dortmund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sabine Aldermann Landgrafenstr. 2 a 44139 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Auto-Center Selm GmbH on April 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto-Center Selm GmbH Attn: Detlev Lueckel, Manager Schachtstr. 1 59379 Selm Germany AUTOMATEN SALES: Claims Registration Period Ends May 28 ------------------------------------------------------- Creditors of Automaten Sales + Services ASS GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Werner Maier. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Esslingen Hall One First Floor Ritterstr.5 (Eingang Strohstrasse) Esslingen 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: Werner Maier Gansheidestr. 1 70184 Stuttgart Germany Tel: 0711/16433-0 Fax: 0711/16433-50 The District Court of Esslingen opened bankruptcy proceedings against Automaten Sales + Services ASS GmbH on March 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Automaten Sales + Services ASS GmbH Hofwiesen 20 72622 Nuertingen Germany BOMBARDIER INC: Moody's Holds Ba2 Ratings on Improved Operations ---------------------------------------------------------------- Moody's Investors Service changed the rating outlook for Bombardier Inc. to positive from stable and affirmed the company's Ba2 corporate family, Ba2 senior unsecured and SGL-2 liquidity ratings. The outlook change reflects Moody's belief that Bombardier's record backlog levels and strong demand from international end- markets positions the company for continued revenue growth, profitability improvements and cash flow generation into the medium term. Coupled with the meaningful reduction in debt levels that occurred towards the end of the company's last fiscal year, the balance of the company's key credit metrics are likely to evidence continuing improvement, bolstering support for upwards rating momentum. These ratings have been affirmed: -- Corporate family rating at Ba2 -- Probability of default rating at Ba2 -- Senior unsecured debt rating at Ba2 (to LGD4, 52% from LGD4, 54%) -- Speculative grade liquidity rating at SGL-2 Outlook Actions: -- Outlook, Changed To Positive From Stable "Bombardier's sizeable backlog in each of its two business segments positions the company for further growth and margin improvement beyond the gains achieved in fiscal 2008", Darren Kirk, lead analyst with Moody's said. Bombardier's fiscal 2008 operating results evidenced continued improvement driven by strong demand for business jets, turboprops and Transportation segment products and services. A prolonged period of declining demand for regional jet products appears to have stabilized, which also contributed to the good results. Despite the poor financial condition of the airline industry and challenging economic backdrop in the U.S., reducing dependence on the U.S. market for cyclical aerospace activity and record backlog levels in each of Bombardier's business segments, provide the basis for continued operating momentum. Targeted operating margins of 8% in the Aerospace segment have essentially been attained while Transportation segment margins continue to improve toward the company's goal of 6% by fiscal 2010. The company's ability to further enhance current coverage and cash flow metrics through sustained margin improvement remains a key factor influencing the rating. Lower interest costs associated with recent debt reductions should amplify improvement to key credit metrics through fiscal 2009 from levels that have in recent history constrained the Ba2 rating. Bombardier's liquidity profile is good summarized by significant balance sheet cash with no near term debt maturities, and a positive free cash flow profile. Lack of committed bank operating lines for funded borrowing constrains the liquidity rating at SGL-2. The Company's good liquidity profile and favorable cash flow trends may eventually be counterbalanced by incremental financial and operating risks associated with the potential investment in the CSeries mainline aircraft. "The company's improving credit profile should nonetheless provide the capacity to absorb these risks within context of its rating and outlook", Kirk added. Bombardier Inc., headquartered in Montreal, Quebec, is a diversified manufacturing company involved in the aerospace and transportation markets. The company manufactures rail equipment through its Bombardier Transportation unit. Bombardier Transport's Europe management office is located in Germany. The company also has production facilities in France, Spain, Switzerland, Belgium, Italy, Austria, Hungary, Czech Republic, Poland, Denmark, Sweden, Norway an the United Kingdom. Other production facilities are located at Brazil, China, India and Australia. COMPLETTBAUHAUS GMBH: Claims Registration Period Ends May 28 ------------------------------------------------------------ Creditors of Complettbauhaus GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Katrin Bringezu. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on June 25, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 138 Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Katrin Bringezu Prager Strasse 34 04317 Leipzig Germany Tel: 0341/486930 Fax: 0341/4869393 E-mail: leipzig@hbml.de The District Court of Leipzig opened bankruptcy proceedings against Complettbauhaus GmbH on April 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Complettbauhaus GmbH Attn: Andreas Porstmann, Manager Albertstrasse 6 04720 Doebeln Germany EIKA WACHSWERKE: To Resume Candle Production After CRT Takeover --------------------------------------------------------------- Candle production at Eika Wachswerke Fulda GmbH is expected to resume following Cukierman Rasenberger Toschek's takeover of the company, Financial Times Deutschland reports. Eika's new managing director Peter Rasenberger said that CRT plans to make the insolvent company profitable again, FT relates. The FT adds that the company will keep 160 of its workers. As previously reported in the TCR-Europe, The District Court of Fulda opened bankruptcy proceedings against Eika on April 1, 2008 with Sandra Mitter serving as its insolvency manager. Then managing director Thomas Schunke said that the company could no longer pay its banks and suppliers as a result of having too many orders in hand and too few sales. Headquartered in Fulda, Germany, Eika Wachswerke Fulda GmbH -- http://www.eika.de/-- produces handmade candles. The company existed since 1824. Eika had EUR40 million in annual turnover. ELBE - LOGISTIK: Claims Registration Period Ends May 28 ------------------------------------------------------- Creditors of ELBE - LOGISTIK GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Pinneberg Hall 5 Station Route 17 25421 Pinneberg 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: Dirk Decker Julius-Vosseler-Strasse 42 22527 Hamburg Germany The District Court of Pinneberg opened bankruptcy proceedings against ELBE - LOGISTIK GmbH on April 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ELBE - LOGISTIK GmbH Attn: Mile Acimovic, Manager Luetten Stieg 8 25474 Ellerbek Germany ETT ELEKTRO-TECHNIK: Claims Registration Period Ends May 21 ----------------------------------------------------------- Creditors of ETT Elektro-Technik GmbH have until May 21, 2008, to register their claims with court-appointed insolvency manager Barbara Fritzer. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schweinfurt Meeting Hall 22 Eingang Friedenstr. 2 Schweinfurt 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: Barbara Fritzer Bischofsberg 28 97638 Mellrichstadt Germany Tel: 09776/706700 Fax: 09776/706701 The District Court of Schweinfurt opened bankruptcy proceedings against ETT Elektro-Technik GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ETT Elektro-Technik GmbH Schwemmweg 6 g 97493 Bergheinfeld Germany HELI-FLIGHT VERWALTUNGS: Claims Registration Period Ends May 20 --------------------------------------------------------------- Creditors of HELI-FLIGHT Verwaltungs GmbH have until May 20, 2008, to register their claims with court-appointed insolvency manager Ottmar Hermann. Creditors and other interested parties are encouraged to attend the meeting at 10:45 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 Friedberg (Hessen) Hall 236 Second Floor 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: Ottmar Hermann Bleichstrasse 2-4 60313 Frankfurt (Main) Germany Tel: (069) 9130920 Fax: (069) 913092-30 The District Court of Friedberg (Hessen) opened bankruptcy proceedings against HELI-FLIGHT Verwaltungs GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HELI-FLIGHT Verwaltungs GmbH Flugplatz Reichelsheim 61203 Reichelsheim Germany KMT - KUNSTSTOFF: Claims Registration Period Ends May 16 -------------------------------------------------------- Creditors of KMT - Kunststoff und Metallteile GmbH have until May 16, 2008, to register their claims with court-appointed insolvency manager Hans Peter Runkel. Creditors and other interested parties are encouraged to attend the meeting at 10:55 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 Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans Peter Runkel Friedrich-Ebert-Strasse 146 42117 Wuppertal Germany Tel: 0202/30 20 71 Fax: 0202/31 47 08 The District Court of Wuppertal opened bankruptcy proceedings against KMT - Kunststoff und Metallteile GmbH on April 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KMT - Kunststoff und Metallteile GmbH Liegnitzer Strasse 7 42277 Wuppertal Germany L. U. B. AUTOHANDEL: Claims Registration Period Ends May 20 ----------------------------------------------------------- Creditors of L. u. B. Autohandel GmbH have until May 20, 2008, to register their claims with court-appointed insolvency manager Frauke Heier. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on June 10, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Hall 252 Second Floor Heinitzstrasse 42/44 58097 Hagen 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: Frauke Heier Hochstr. 124 58095 Hagen Germany The District Court of Hagen opened bankruptcy proceedings against L. u. B. Autohandel GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: L. u. B. Autohandel GmbH Baarstr. 241 58636 Iserlohn Germany LA STEWARDING: Claims Registration Period Ends May 15 ----------------------------------------------------- Creditors of LA Stewarding Service GmbH have until May 15, 2008, to register their claims with court-appointed insolvency manager Anton Rosenauer. Creditors and other interested parties are encouraged to attend the meeting at 9:45 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 Stuttgart Room 178 70190 Stuttgart 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: Anton Rosenauer Industriestr. 3 70565 Stuttgart Germany Tel: 0711/2 31 75 93 Fax: 0711/2 31 75 94 The District Court of Stuttgard opened bankruptcy proceedings against LA Stewarding Service GmbH on April 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LA Stewarding Service GmbH Lehmweg 17 20251 Hamburg Germany MOSER & HARMS: Claims Registration Ends May 27 ---------------------------------------------- Creditors of Moser & Harms GmbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Heiko Fialski. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on July 8, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Reinbek Parkallee 6 21465 Reinbek 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: Heiko Fialski Johannes-Brahms-Platz 1 20355 Hamburg Germany The District Court of Reinbek opened bankruptcy proceedings against Moser & Harms GmbH on April 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Moser & Harms GmbH Attn: Rolf Rockensack, Manager Industriestrasse 17 23843 Bad Oldesloe Germany PERMANENT PERFECT: Claims Registration Ends May 27 -------------------------------------------------- Creditors of Permanent Perfect GmbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Klaus E. Breithaupt. Creditors and other interested parties are encouraged to attend the meeting at 9:15 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus E. Breithaupt Baierbrunner Str. 25 81379 Munich Germany Tel: 089/45 22 77-0 Fax: 089/45 22 77-29 The District Court of Munich opened bankruptcy proceedings against Permanent Perfect GmbH on March 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Permanent Perfect GmbH Robert-Koch-Str. 12 82031 Gruenwald Germany PETER ROTH: Claims Registration Ends May 28 ------------------------------------------- Creditors of Peter Roth GmbH have until May 28, 2008 to register their claims with court-appointed insolvency manager Guenter Staab. Claims will be verified at 2:00 p.m. on June 25, 2008 at: The District Court of Saarbruecken Meeting Hall 24 Second Floor Vopeliusstrasse 2 66280 Sulzbach Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Guenter Staab Sulzbachstrasse 26 66111 Saarbruecken Germany Tel: (0681) 3090 416 Fax: (0681) 3090 456 The District Court of Saarbruecken opened bankruptcy proceedings against Peter Roth GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Peter Roth GmbH Attn: Heinz Ptak, Manager Fasanerieweg 12 66121 Saarbruecken Germany PROTEK HAUSBAU: Claims Registration Ends May 27 ----------------------------------------------- Creditors of PROTEK Hausbau Projektentwicklungs- und Bauplanungsgesellschaft mbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Dr. Friedrich Seggebruch. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 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. Friedrich Seggebruch Damaschkestrasse 21 10711 Berlin Germany The District Court of Neuruppin opened bankruptcy proceedings against PROTEK Hausbau Projektentwicklungs- und Bauplanungsgesellschaft mbH on April 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PROTEK Hausbau Projektentwicklungs- und Bauplanungsgesellschaft mbH Neuendorfstr. 18 a 16761 Hennigsdorf Germany Attn: Dirk Mueller, Manager Kuckucksruf 18 16761 Stolpe Germany SCHWEDLER GMBH: Claims Registration Ends May 27 ----------------------------------------------- Creditors of Schwedler GmbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Dr. Oliver Kirschne. 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 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: Dr. Oliver Kirschnek Kriegerstrasse 3 70191 Stuttgart Germany Tel: 0711/225583-0 Fax: 0711/225583-20 The District Court of Heilbronn opened bankruptcy proceedings against Schwedler GmbH on April 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schwedler GmbH Attn: Hans Schwedler, Manager Froebelstrasse 10 74321 Bietigheim-Bissingen Germany TSK GMBH: Creditors' Meeting Slated for May 28 ---------------------------------------------- Creditors of TSK GmbH have until May 28, 2008 to register their claims with court-appointed insolvency manager Johannes Franke. Creditors and other interested parties are encouraged to attend the meeting at 11:20 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will verify the claims set out in the insolvency manager's report at 11:20 a.m. on July 9, 2008 at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Johannes Franke Verdener Platz 1 30419 Hannover Germany Tel: 0511 794573 Fax: 0511 794576 The District Court of Hannover opened bankruptcy proceedings against TSK GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TSK GmbH Kessellande 10 30900 Wedemark Germany Attn: Ulrich Grupp, Manager Schoenbuchstrasse 7 72124 Pliezhausen Germany UBS AG: BlackRock In Talks for Fund to Manage Mortgage Assets ------------------------------------------------------------- BlackRock Inc. has engaged in talks to create a fund that would hold and sell UBS AG's mortgage assets, eyeing returns of more than 15%, Hui-yong Yu writes for Bloomberg News, citing unnamed people close to the situation. The move, Bloomberg says, is aimed at helping the Switzerland- based bank recover from US$38 billion in subprime-related writedowns. Bloomberg relates that while BlackRock, which manages the bank's about US$1.4 trillion of assets, is seeking cash from investors, talks may not lead to an agreement. Both parties, however, declined to comment, the paper states. UBS had earlier said it will prepare its investment banking business for a possible sale in two to three years' time. UBS will pursue the plan if future U.S. laws require a separation of its business and investment banks, the Swiss Federal Banking Commission raises capital requirements for investment banks, or if the unit can't be made profitable. For the first quarter of 2008, UBS expects to report a net loss attributable to shareholders of approximately CHF12 billion (US$11.83 billion) after losses and writedowns of approximately US$19 billion on U.S. real estate and related structured credit positions. UBS is the worst hit bank by the U.S. mortgage lending crisis. UBS AG -- http://www.ubs.com/-- together with its subsidiaries, provides a range of financial products and services worldwide. UBS' businesses are Global Wealth Management and Business Banking, Global Asset Management, and Investment Banking. The company was founded in 1862 and is based in Zurich, Switzerland. Its Wealth management services in the United States are provided by UBS Financial Services Inc. UBS' U.S. headquarters is at 1285 Avenue of the Americas, New York, NY. ============= I R E L A N D ============= CAMBER 4: Moody's May Further Cut Junk Ratings After Review ----------------------------------------------------------- Moody's Investors Service downgraded and left on review for downgrade five classes of notes issued by Camber 4 plc. These rating actions are a response to credit deterioration in the underlying portfolio. The underlying assets of this CDO transaction are predominantly 2004 - 2007 vintage US subprime RMBS (36.5%) and US ABS CDOs (11.1%). Moody's announced on Feb. 04, 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. These rating actions are: Camber 4 plc: (1) US$790,000,000 Class A1-A Floating Rate Notes due 2053 (currently US$789,756,141.68 outstanding) -- Current Rating: Aa1, on review for downgrade -- Prior Rating: Aaa (2) US$60,000,000 Class A2 Floating Rate Notes due 2053 -- Current Rating: Baa3, on review for downgrade -- Prior Rating: Aaa (3) US$23,000,000 Class A3 Floating Rate Notes due 2053 -- Current Rating: B2, on review for downgrade -- Prior Rating: Aaa (4) US$11,500,000 Class B Floating Rate Notes due 2053 -- Current Rating: Caa2, on review for downgrade -- Prior Rating: Aa2 (5) US$12,000,000 Class C Floating Rate Notes due 2053 (currently US$10,941,362.55 outstanding) -- Current Rating: Caa3, on review for downgrade -- Prior Rating: A3 EIRLES TWO: Fitch Junks Rating on Series 219 Notes -------------------------------------------------- Fitch Ratings downgraded Eirles Two's US$20m Series 219 notes (XS0231043349) to 'CCC' from 'A' and removed it from Rating Watch Negative. Eirles Two Series 219 is a synthetic collateralised debt obligation referencing a US$1.35bn portfolio of mainly U.S. structured finance assets. At close, Eirles Two, a public limited company incorporated in Ireland, entered into a credit default swap (CDS) agreement with Deutsche Bank AG (Deutsche, rated 'AA-' (AA minus)/Outlook Stable/'F1+') under which Deutsche bought US$20m protection on the reference portfolio. To fund its obligations under the CDS agreement, Eirles Two issued a total of US$20m in credit-linked notes and entered into an asset swap with Deutsche. Under the terms of the asset swap, Deutsche receives the note proceeds and deposits them into an interest-bearing deposit account. During the life of the transaction, in exchange for receiving interest on the deposit account under the asset swap, Deutsche will pay an amount equivalent to the USD LIBOR component of note interest. The portfolio is managed by Faxtor Securities BV. Although the transaction is now static, the asset manager has the ability to remove credit-impaired assets throughout the life of the deal. Fitch's rating action reflects higher loss expectations due to greater-than-expected collateral deterioration in Eirles Two Series 219's portfolio. The negative credit migration is primarily attributable to the rapid credit deterioration in subprime residential mortgage-backed securities (RMBS) from the 2004 and 2005 vintages. The portfolio comprises U.S. subprime RMBS (59.8%), and Alternative A (Alt-A) mortgage loans (11.7%). Subprime RMBS of the pre-2005, and 2005 vintages account for approximately 20% and 48% of the portfolio, respectively. At the time of the rating action in November 2007, there were no assets in the 'CCC+' and below bucket and only 2.6% of the portfolio was sub- investment grade. As per the latest trustee report dated March 2008, 8.95% of the portfolio is rated 'CCC+' or below, and 27.3% of the portfolio is rated 'BB+' or below. Furthermore, this compares to the current credit enhancement level of 9.45%. EIRLES TWO: Fitch Puts Junks Ratings on Four Builder 2 Notes ------------------------------------------------------------ Fitch has downgraded Series 160 and 143 of Builder 2 Eirles Two Limited and affirmed Series 144 and 145. All series have been removed from Rating Watch Negative where they were originally placed on Feb. 27, 2008. The ratings are: -- EUR21m Series 160 (ISIN: XS0211759864): Downgraded to 'CC' from 'B+'; removed from RWN -- US$37.2m Series 143 (ISIN:XS0208743418): Downgraded to 'CC' from 'B'; removed from RWN -- USD35.7m Series 144 (ISIN: XS0208743178): Affirmed at 'CC'; removed from RWN -- USD7.1m Series 145 (ISIN: XS0208742873): Affirmed at 'CC'; removed from RWN Eirles Two Limited is a special purpose vehicle incorporated under the laws of Ireland. The notes have a scheduled maturity date of December 22, 2044 and absorb the credit risk of credit default swaps with Deutsche Bank AG London (Deutsche). The credit default swaps with Deutsche reference a portfolio of asset-backed securities (ABS) obligations. Fitch's rating action reflects higher loss expectations due to greater than expected collateral deterioration in Builder 2's portfolio. The negative credit migration is primarily attributed to the rapid credit deterioration in US structured finance CDOs from 2005 and 2006 vintages, as well as exposure to subprime residential mortgage backed securities (RMBS) from the 2006 vintage. The portfolio is comprised of US subprime RMBS (4.12%), Alternative A (Alt-A) mortgage loans (17.29%) and US diversified structured finance CDOs (39.93%). US structured finance CDOs of the 2005, 2006 and 2007 vintages account for approximately 15.72%, 14.10% and 2.39% of the portfolio, respectively. During the rating action in November 2007, only 1.7% of the portfolio was rated 'CCC+' or below and 0.0% of the portfolio was rated 'BB+' or below. As per the portfolio from the latest trustee report dated April 2008, 5.44% of the portfolio is rated 'CCC+' or below and 10.46% of the portfolio is rated 'BB+' or below. This compares to credit enhancement levels of 6.61%, 4.00%, 1.50% and 1.00% for series 160, 143, 144 and 145, respectively. EIRLES TWO: Fitch Cuts Ratings on Three Builder 3 Note Classes -------------------------------------------------------------- Fitch today downgraded all three classes of Builder 3 Eirles Two Limited Series 283, 284 and 285. All classes have been removed from Rating Watch Negative where they were originally placed on Feb. 27, 2008. The ratings are: -- US$42m Class B (ISIN: XS0266515658): Downgraded to 'CC' from 'B'; removed from RWN -- US$22.5m Class C (ISIN: XS0266514842): Downgraded to 'CC' from 'CCC'; removed from RWN -- US$18m Class D (ISIN: XS0266514099): Downgraded to 'C' from 'CC'; removed from RWN Eirles Two Limited is a special purpose vehicle incorporated under the laws of Ireland. The notes have a scheduled maturity date of September 6, 2046 and absorb the credit risk of credit default swaps with Deutsche Bank AG London (Deutsche). The credit default swaps with Deutsche reference a portfolio of asset-backed securities (ABS) obligations. Fitch's rating action reflects higher loss expectations due to greater than expected collateral deterioration in Builder 3's portfolio. The negative credit migration is primarily attributed to the rapid credit deterioration in US structured finance CDOs and subprime residential mortgage backed securities (RMBS) both from the 2006 vintage. The portfolio is comprised of US subprime RMBS (8.46%), Alternative A (Alt-A) mortgage loans (12.99%) and US diversified structured finance CDOs (35.63%). US structured finance CDOs of the 2005, 2006 and 2007 vintages account for approximately 4.67%, 22.53%, and 2.35% of the portfolio, respectively. During the rating action in November 2007, only 0.7% of the portfolio was rated 'CCC+' or below and 0.0% of the portfolio was rated 'BB+' or below. As per the portfolio from the latest trustee report dated April 2008, 6.05% of the portfolio is rated 'CCC+' or below and 12.39% of the portfolio is rated 'BB+' or below. This compares to credit enhancement levels of 4.20%, 2.70% and 1.50% for classes B, C, and D, respectively. EIRLES TWO: Fitch Junks Rating on Class B and E Builder 4 Notes --------------------------------------------------------------- Fitch has downgraded the class B and E notes of Builder 4 Eirles Two Limited and affirmed the class C and D notes. All classes have been removed from Rating Watch Negative where they were originally placed on Feb. 27, 2008. The ratings are: -- US$42m Class B (ISIN: XS0266513281): Downgraded to 'CCC' from 'BB-' (BB minus); removed from RWN -- US$22.5m Class C (ISIN: XS0266516540): Affirmed at 'CCC'; removed from RWN -- US$18m Class D (ISIN: XS0266516110): Affirmed at 'CC'; removed from RWN -- EUR10m Class E: Downgraded to 'C' from 'CC'; removed from RWN Eirles Two Limited is a special purpose vehicle incorporated under the laws of Ireland. The notes have a scheduled maturity date of Sept. 6, 2046 and absorb the credit risk of credit default swaps with Deutsche Bank AG London (Deutsche). The credit default swaps with Deutsche reference a portfolio of asset-backed securities (ABS) obligations. Fitch's rating action reflects higher loss expectations due to greater than expected collateral deterioration in Builder 4's portfolio. The negative credit migration is primarily attributed to the rapid credit deterioration in US structured finance CDOs and subprime residential mortgage backed securities (RMBS), primarily from the 2006 vintage, as well as from the 2005 vintage. The portfolio is comprised of US subprime RMBS (3.73%), Alternative A (Alt-A) mortgage loans (15.80%) and US diversified structured finance CDOs (37.49%). US structured finance CDOs of the 2005, 2006 and 2007 vintages account for approximately 7.99%, 21.27% and 3.35% of the portfolio, respectively. During the rating action in November 2007, only 0.0% of the portfolio was rated 'BB+' or below. As per the portfolio from the latest trustee report dated April 2008, 2.62% of the portfolio is rated 'CCC+' or below and 8.99% of the portfolio is rated 'BB+' or below. This compares to credit enhancement levels of 4.20%, 2.70%, 1.50% and 0.75% for classes B, C, D and E, respectively. LUNAR FUNDING V: Fitch Cuts Ratings on Three Celts Leveraged MBS ---------------------------------------------------------------- Fitch Ratings downgraded three Celts leveraged mortgage-backed securities issued from Lunar Funding V plc and removed them from Rating Watch Negative: -- EUR75m Series 2007-40 notes due 2060 downgraded to 'B' from 'A'; off RWN -- EUR75m Series 2007-45 notes due 2060 downgraded to 'BB' from 'A'; off RWN -- EUR50m Series 2007-46 notes due 2060 downgraded to 'B' from 'A'; off RWN The rating actions are due to a decline in the reported market values of the reference assets since the close of the transactions. The decrease in market value has increased the risk of breaching the market value triggers for each of the transactions. Series 2007-40 and 2007-46 have a smaller market value cushion than Series 2007-45, which is reflected in the rating actions taken. The market value cushion is the difference between the current market price and the ratings trigger. The notes have zero credit enhancement and therefore are exposed to the first dollar of loss. The transactions are market value notes that reference, via total return swaps, leveraged portfolios of 'AAA' prime European RMBS and CMBS assets. None of the underlying assets have been downgraded or placed on Rating Watch Negative. ========= I T A L Y ========= ALITALIA SPA: AirOne Links with Berlusconi Adviser on Stake Sale ---------------------------------------------------------------- AirOne S.p.A. is in contact with Bruno Ermolli, an adviser to Italy's Prime Minister-elect Silvio Berlusconi in charge of finding a local buyer for the government's 49.9% stake in Alitalia S.p.A., various reports say, citing AirOne board member Giovanni Malago. As reported in the TCR-Europe on April 23, 2008, AirOne S.p.A., banks led by Intesa Sanpaolo S.p.A. and Italian businessmen led by Mr. Ermolli may form a consortium to bid for Alitalia. AirOne will own 40% of the bidding vehicle, the banks will control 40% and Mr. Bruno's group will hold 20%. Mr. Berluconi has been insisting that an Italian consortium will present a binding offer for Italy's 49.9% stake in Alitalia. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. ALITALIA SPA: Unicredit Denies Possible Bid with Lufthansa ---------------------------------------------------------- UniCredit S.p.A. denied a report that it had contacts with Deutsche Lufthansa AG over a possible bid for the Italian government's 49.9% stake in Alitalia S.p.A. An Il Messaggero report said that UniCredit chief executive Alessandro Profumo had met with Lufthansa executive to discuss the German carrier's possible role in re-launching Alitalia. The report added that Lufthansa might acquire a stake in Alitalia if conditions are right. As reported in the TCR-Europe on March 12, 2008, Lufthansa Chief Executive Wolfgang Mayrhuber said the carriuer is not interested in acquiring Alitalia. Mr. Mayhuber stressed that though Lufthansa is planning to participate in mergers in Europe's airline industry, it is currently not eyeing Alitalia. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. FIAT SPA: Iveco Defers Entry Into the United States --------------------------------------------------- Iveco, a division of Fiat SpA, has deferred its possible entry into the U.S. market, Reuters reports citing Iveco CEO Mr. Paolo Monferino. Reuters relates Mr. Monferino as saying that the move to the United States is currently "on stand-by." Fiat CEO Sergio Marchionne however expressed that the issue would likely be decided by the end of the first quarter, Reuters adds. About Iveco Iveco designs, manufactures, and markets a broad range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire fighting, off-road missions, defence and civil protection. Iveco employs over 24,500 people and runs 28 production units in 16 Countries in the world using excellent technologies developed in 5 research centres. Besides Europe, the company operates in China, Russia, Australia, Argentina, Brazil, and South Africa. More than 4,600 service outlets in over 100 Countries guarantee technical support wherever in the world an Iveco vehicle is at work. About Fiat S.p.A. Based in Turin, Italy, Fiat SpA -- http://www.fiatgroup.com/-- designs, manufactures, and sells automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The company also carries B short- term rating. S&P said the outlook is stable. =================== K A Z A K H S T A N =================== AKTOBE TULPAR: Claims Deadline Slated for June 20 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Aktobe Tulpar Trans insolvent. Creditors have until June 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 ARMAN-BATYR LLP: Claims Registration Ends June 25 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Arman-Batyr insolvent. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana May 9 Str. 37/1-102 Astana Kazakhstan Tel: 8 (7172) 39-73-00 CONCEPT-AUTODIAGNOSTIKA LLP: Creditors' Claims Due on June 20 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Concept-Autodiagnostika insolvent on December 25, 2007. Creditors have until June 20, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Room 4 Jahaev Str. 71 Kyzylorda Kazakhstan Tel: 8 (72422) 27-24-55 EKIBASTUZ STROYPUT: Creditors Must File Claims by June 25 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Ekibastuz Stroyput insolvent on March 27, 2008. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Dostoevsky Str. 72 Pavlodar Kazakhstan Tel: 8 (7182) 32-91-97 KAZTECHMASH LLP: Claims Deadline Slated for June 25 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Kaztechmash insolvent. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana May 9 Str. 37/1-102 Astana Kazakhstan Tel: 8 (7172) 39-73-00 KOKSHETAU AGROPROMTECHNIKA: Claims Filing Period Ends June 25 ------------------------------------------------------------- OJSC Kokshetau Agropromtechnika has declared insolvency. Creditors have until June 25, 2008, to submit written proofs of claims to: OJSC Kokshetau Agropromtechnika Severnaya Promzona Akmola Kazakhstan KURYLYS IPOTEKA: Asset Sale Slated for May 12, 2008 --------------------------------------------------- JSC Mortgage Organization Kurylys Ipoteka has set the public auction of these assets: Lot 1: Two rooms flat with total area of 39.1 square meters, living areas of 25.5 square meters, located at Almaty. Lot 2: Three rooms flat with total area of 138.7 square meters, living areas of 89.2 square meters, located at Almaty. Lot 3: Two rooms flat with total area of 52.8 square meters, living areas of 30.4 square meters, located at Almaty. Bidders are required a deposit guarantee payment to: IIK 080467502 JSC ATF Bank Almaty Branch BIK 190501956 RNN 600900536518 Bids should be submitted before 9:30 a.m., May 12, 2008, to: JSC Mortgage Organization Kurylys Ipoteka Dostyk ave. 44-46 Almaty Kazakhstan Tel: 8 (7272) 91-15-04 8 (7272) 93-97-35 KURYLYS-ORTALYGY LLP: Creditors Must File Claims by June 20 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Kurylys-Ortalygy insolvent. Creditors have until June 20, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Tel: 8 (3132) 21-30-32 TEMIRBANK: Moody's Lowers Unsecured Debt Ratings to Ba3 ------------------------------------------------------- Moody's Investors Service downgraded the long-term bank deposit and unsecured debt ratings of Temirbank to Ba3 from Ba2. The E+ bank financial strength rating and Not Prime short-term ratings were affirmed. The outlook on all of the bank's ratings is now stable. Moody's said that the downgrade of Temirbank's long-term deposit and debt ratings has been prompted by a weakening of the BFSR within the E+ category and Moody's assessment that the likelihood of Temirbank enjoying parental support in case of need has declined as a result of the plans of BTA Bank (Ba1/D-) to sell its controlling stake in the bank. According to Moody's, the weakened BFSR -- which now maps to a baseline credit assessment of B2 compared to B1 previously -- reflects the rapidly growing level of non-performing loans in the bank's retail portfolio as well as the notable deterioration in the bank's corporate loan portfolio. The substantial decline in residential real estate prices and problems in Kazakhstan's construction sector have considerably constrained the overall quality of the bank's loan portfolio and resulted in the significant growth of NPLs over the recent period. In Moody's opinion, the bank's provision coverage is not adequate for the level of asset deterioration that could negatively affect the bank's capital and profitability in the future. Temirbank's liquidity profile is also under pressure given the recent outflow of customer deposits and heavy reliance on international funding, which is also weighing on the bank's performance and franchise. Furthermore, Moody's notes that -- despite other Kazakh banks experiencing a similar situation with regard to their loan portfolios -- Temirbank's exposure to the rapidly deteriorating real estate and construction sector relative to its capital is considered one of the highest in the market. This therefore affects Temirbank's financial position more significantly than other financial institutions in the country. In addition to the weakened BFSR, the downgrade of the bank's deposits and debt ratings has also been prompted by the recently announced plans of Temirbank's controlling shareholder BTA Bank to sell its stake in the bank. However, Moody's notes that, given BTA Bank's controlling stake in Temirbank's capital, the deposit ratings of Temirbank still benefit from a parental support, as a result of which they enjoy a two-notch uplift from the bank's baseline credit assessment. The E+ BFSR continues to reflect the bank's entrenched market franchise in retail lending, adequate capitalisation and relatively wide territorial coverage across the country. However, it is constrained by the weak asset quality in both the retail and corporate loan portfolios, weakening profitability and a high dependence on international funding given the low likelihood of refinancing in the medium term negatively affecting the bank's franchise and profitability. Moody's notes that a downgrade of the bank's BFSR is unlikely in the medium term given the high capital cushion and its entrenched position in the retail lending segment. However, a further deterioration in asset quality that weighed significantly on the bank's capitalisation level and profitability could exert additional pressure on Temirbank's BFSR. An upgrade of Temirbank's BFSR and debt and deposit ratings is also highly unlikely in the medium term given the continuing deterioration in asset quality and the ongoing pressure on liquidity. These ratings were downgraded: * Temirbank -- Long-term bank deposits -- to Ba3 from Ba2 -- Senior unsecured debt -- to Ba3 from Ba2 * Temir Capital B.V. -- Senior unsecured debt -- to Ba3 from Ba2 -- Subordinated debt -- to B1 from Ba3 These ratings were affirmed: * Temirbank -- Short-term bank deposits -- Not Prime -- Bank Financial Strength Rating -- E+ Temirbank, which is headquartered in Almaty, Kazakhstan, had assets of KZT334 billion (US$2.76 billion) at end-2007. =================== K Y R G Y Z S T A N =================== SMEN-STROY LLC: Creditors Must File Claims by June 13 ----------------------------------------------------- LLC Construction Company Smen-Stroy has declared insolvency. Creditors have until June 13, 2008 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 21-39-90. =================== L U X E M B O U R G =================== LECTA SA: Moody's May Further Cut Ba3 Rating After Review --------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the Ba3 corporate family rating of Lecta S.A., the Ba3 rating for the EUR598 million Senior Secured Floating Rate Notes due 2014 and the B1 rating for the EUR150 million Senior Unsecured Floating Rate Notes due 2014. "The decision to place the Ba3 corporate family rating under review for possible downgrade was made on the back of a sustained weak price development for coated fine paper in Europe which has prevented Lecta to improve its financial profile. Despite past and ongoing restructuring programs targeted to offset input cost pressure key credit metrics failed to improve in line with our expectations," elaborated Martin Kohlhase, a Moody's Assistant Vice President and lead analyst for paper and forest products companies in EMEA. "Indeed, announced price increases for coated fine paper have not materialized during 2007 and pricing pressure has remained so far in 2008, largely due to a highly competitive market resulting from a repatriation of exports into the European market due to the strong euro against the U.S. dollar while the same factors are still at play and will make further price initiatives difficult." Lecta's financial profile is further negatively impacted from its weak vertical integration which exposes the company to swings in input prices, especially pulp and energy, which have taken its toll on credit metrics over recent quarters. In addition, we highlight the risk of the macroeconomic growth in Europe, evidenced over the last years, abating with negative repercussions for demand and capacities potentially causing future restructuring programs with associated potential cash costs. In its review process Moody's will focus on whether the internal actions that Lecta has initiated are likely to position the company's credit metrics in line with the current rating category. In addition, the review will focus on the impact of the foreign exchange rates, mainly the weak U.S. dollar and the British pound against the euro, on trade flow patterns to Europe as well as the magnitude and potential impact of pricing initiatives announced for the second quarter of 2008. The last rating action was on Feb. 20, 2008 when Moody's changed the outlook to negative from stable indicating a higher likelihood of credit metrics during 2008 moving below thresholds that Moody's expects for the Ba3 rating. Lecta S.A., with legal headquarters in Luxembourg, is among Europe's leading coated fine paper manufacturers and has its production facilities based in Spain, Italy and France. The company also has a specialty paper division and distribution business in the Iberian market. Lecta generated group sales of EUR1.5 billion in the fiscal year 2007 ending December 31. ===================== N E T H E R L A N D S ===================== IMAX CORP: Amends Facility; Sells US$18MM in Common Shares ---------------------------------------------------------- IMAX Corporation disclosed Tuesday that it has entered into two significant financing transactions, one with Wachovia Capital Finance Corporation to increase future availability and modify other terms under the company's existing credit facility, and one with the Douglas family, IMAX's largest shareholder, for the sale of approximately 2.73 million common shares in a private placement at an aggregate purchase price of US$18 million. The company said that proceeds from these transactions will be used to fund the company's IMAX(R) Digital projection roll-out, slated to begin this summer, and for general corporate purposes. "We have always believed that the attractive returns from existing joint ventures would enable us to finance our broader digital rollout," said IMAX co-chairmen and co-chief executive officers Richard L. Gelfond and Bradley J. Wechsler. "Now our bank and our largest shareholder have each stepped forward to provide us with increased availability of credit and cash, which we believe will enable us to effectively execute on our existing plan. Coupled with our cash on hand, we expect that these deals will ultimately provide us with access to roughly US$55 - US$60 million in funding." IMAX and Wachovia entered into an amendment on May 5, 2008, which extends the term of the facility to Oct. 31, 2010, removes an EBITDA maintenance covenant provided the company maintains certain minimum liquidity requirements, and is likely to increase the company's borrowing base. "We believe these changes will ensure our access to more money for a longer period of time, mitigating operating risk," added Messrs. Gelfond and Wechsler. "The amended terms of the line allow us to draw down approximately US$24.4 million [], and we believe that as our borrowing base increases in accordance with the terms of the agreement we may be able to take down close to US$30 million." Additionally, on May 5, 2008, the company entered into an agreement with the Douglas family, IMAX's largest shareholder, for the sale of approximately 2.73 million of the company's common shares for a total purchase price of US$18 million, or approximately US$6.60 per share (the equivalent of the average closing IMAX common share price over the most recent five trading days). The Douglas family, which will own 19.9% of the company's common shares post-transaction, has agreed to a five-year standstill with the company whereby it will refrain from certain activities, such as increasing its percentage ownership in the company and entering into various arrangements with the company, such as fundamental or change-of-control transactions. The company has granted the Douglas family registration rights in connection with the newly-acquired shares. The rivate placement is expected to close on May 8, 2008, and is subject to customary closing conditions. "The Douglas family has been an extremely supportive shareholder group, and we're pleased that they have recognized the potential in IMAX and the opportunity to invest at this level at this time," said Messrs. Gelfond and Wechsler. "The good news is that as a result of [the] announcements, we do not believe we will need additional financing to fund our digital rollout under the current business model." The company said that exhibitors and other customers have been extremely enthusiastic in their response to IMAX's pending transition to digital, signing deals for 170 IMAX Digital theatre systems in the last two quarters. In December 2007, IMAX announced a joint venture agreement with AMC Entertainment Inc. for 100 IMAX Digital theatre systems. In March 2008, IMAX announced a joint venture agreement with Regal Cinemas Inc. for 31 IMAX Digital theatre systems. These deals, according to the company, will dramatically increase the IMAX(R) theatre footprint in North America and accelerate the momentum behind IMAX's transition to digital projection technology over the next few years. The company expects to deliver the first of those digital theatre systems and open its initial joint venture theatres with AMC in July 2008. About IMAX Corporation Headquartered in Ontario, Canada, IMAX Corporation (Nasdaq: IMAX)(TSX: IMX) -- http://www.imax.com/-- is a digital entertainment and technology company. As of Dec. 31, 2007, there were 299 IMAX theatres operating in 39 countries. The company's groundbreaking IMAX DMR digital remastering technology allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality. The company has a subsidiary in Netherlands, IMAX (Netherlands) B.V., and also in Japan, IMAX Japan Inc. At Dec. 31, 2007, IMAX Corp.'s balance sheet showed total assets of US$207,982,000 and total debts of US$293,352,000 resulting in an US$85,370,000 shareholders' deficit. Deficit was US$58,232,000 as of Dec. 31, 2006. IMAX CORPORATION: Shareholders' Meeting Scheduled for June 18 ------------------------------------------------------------- IMAX Corp. will hold its Annual and Special Meeting of Shareholders on June 18, 2008, at 10:30 a.m. The meeting will be held at Stony Brook Manhattan, 2nd Floor, 401 Park Avenue South in New York. At the meeting, shareholders will: (1) receive the consolidated financial statements for the fiscal year ended Dec 31, 2007, together with the auditors� report thereon; (2) elect directors; (3) appoint auditors and authorize the directors to fix the auditors� remuneration; (4) approve certain amendments to the Company�s Stock Option Plan; and (5) transact other business as may properly be brought before the Meeting or any adjournments thereof. Only shareholders as of the April 21, 2008, record date will be allowed to vote at the meeting. About IMAX Corporation Headquartered in Ontario, Canada, IMAX Corporation (Nasdaq: IMAX)(TSX: IMX) -- http://www.imax.com/-- is a digital entertainment and technology company. As of Dec. 31, 2007, there were 299 IMAX theatres operating in 39 countries. The company's groundbreaking IMAX DMR digital remastering technology allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality. The company has a subsidiary in Netherlands, IMAX (Netherlands) B.V., and also in Japan, IMAX Japan Inc. At Dec. 31, 2007, IMAX Corp.'s balance sheet showed total assets of US$207,982,000 and total debts of US$293,352,000 resulting in an US$85,370,000 shareholders' deficit. Deficit was US$58,232,000 as of Dec. 31, 2006. =========== P O L A N D =========== ELEKTRIM SA: Enea May Not Get Consent to Acquire ZEPAK Shares ------------------------------------------------------------- Enea, the Poznan energy group, may not get consent to acquire ZEPAK power station shares from Elektrim S.A., the Financial Times reports citing Polish News Bulletin. Enea, the FT relates, is still waiting for a response from the trustee, saying "it is rather an expression of our interest, but we would only be able to talk about money after due diligence." Elektrim sources, however, claimed that while the trustee may sell the assets, Enea, which is planning a stock market debut, is unlikely to get a positive response, the FT discloses. Headquartered in Warsaw, Poland, Elektrim S.A. -- http://www.elektrim.pl/-- engages in the power and telecommunication businesses. In addition to its core business activities, Elektrim also manufactures sells cables, and provides data transmission services. The company filed for bankruptcy protection in a court in Warsaw on Aug. 10, 2007, after its second debt restructuring talks with bondholders failed. PRIMA CHARTER: Warsaw Court Declares Bankruptcy ----------------------------------------------- The Warsaw Court has declared Prima Charter bankrupt, the Financial Times reports citing the Polish News Bulleting. The Warsaw Business Journal adds that the bankruptcy was declared last Tuesday. Prima had been facing difficulties since 2006 and seemed to undergo a turnaround sometime in August 2007. However, an October 2007 report by the Puls Biznesu disclosed that Cash Flow, which owned around 22% of Prima, did not reveal the "full extent" of the problems the company was facing, the Warsaw Business Journal relates. According to the Warsaw Business Journal, aside from Cash Flow, which lost around PLN8.3 million, other investors who stand to lose include: -- over PLN10 million for Krzysztof Fijalkowski and Jacek Lukjanow; -- PLN12 million for Opera TFI; and -- around PLN5 million for Krzysztof Moska. Exim Tours was hit the most with PLN20 million in losses. The Warsaw Business Journal related that the court's declaration also signals a "defeat" for Prima CEO Krzysztof Szymanski. Szymanski had expressed his intention to convert Prima's business from chartering airplanes to renting it. Prima Charter -- http://www.primacharter.pl/-- is a Polish charter line that offered short and long-range tourist flights. The company ceased operations on on Jan. 16, 2008. =========== R U S S I A =========== APRIL-PLUS CJSC: Creditors Must File Claims by May 26 ----------------------------------------------------- Creditors of CJSC April-Plus (TIN 7607016029) have until May 26, 2008, to submit proofs of claim to: O. Lavrentyev Insolvency Manager Svobody Str. 99 150049 Yaroslavl Russia The Arbitration Court of Yaroslavl commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A82-14380/07-43-B/80. The Debtor can be reached at: CJSC April-Plus Svobody Str. 99 150049 Yaroslavl Russia BUTTER-CHEESE DIARY: Creditors Must File Claims by May 26 --------------------------------------------------------- Creditors of CJSC Butter-Cheese Diary (TIN 5522000403) have until May 26, 2008, to submit proofs of claim to: N. Utochenko Temporary Insolvency Manager Apt. 136 Mira Pr. 106a Omsk-89 Russia The Arbitration Court of Omsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A46-5692/2008. The Debtor can be reached at: CJSC Butter-Cheese Diary Maslozavodskaya Str. 2 Muromtsevo Omsk Russia OKAMET LLC: Creditors Must File Claims by May 26 ------------------------------------------------ Creditors of LLC Okamet have until May 26, 2008, to submit proofs of claim to: A. Oksamitnyj Temporary Insolvency Manager Post User Box 36 125502 Moscow Russia The Arbitration Court of Moscow will convene at 11:00 a.m. on Aug. 26, 2008, to hear the companpy's bankruptcy supervision procedure. The case is docketed under Case No. A40-2596/ 08-38-5B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: LLC Okamet Building 1 Sredniy Trekhgornyj Per. 5 123022 Moscow Russia OM-STROY CJSC: Omsk Bankruptcy Hearing Slated for September 2 ------------------------------------------------------------- The Arbitration Court of Omsk will convene on Sept. 2, 2008, to hear the bankruptcy supervision procedure on CJSC OM-Stroy. The case is docketed under Case No. A46-3598/2008. The Temporary Insolvency Manager is: A. Lyasman Office 166 Lermontova Str. 127/1 644001 Omsk Russia The Debtor can be reached at: CJSC OM-Stroy 644029 Omsk Kultury Pr. 5 Russia S-L-S CJSC: Court Names P. Paramzin as Insolvency Manager --------------------------------------------------------- The Arbitration Court of Moscow appointed P. Paramzin as Insolvency Manager for CJSC S-L-S. He can be reached at: P. Paramzin Apt. 7 N-Kazinskaya Str. 61 248002 Kaluga Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A41-?2-9630/07. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC S-L-S Noginsk Moscow Russia SIB-REM-SERVICE: Creditors Must File Claims by June 26 ------------------------------------------------------ Creditors of CJSC Company Repair-Building Company Sib-Rem- Service (TIN 5506038270) have until June 26, 2008, to submit proofs of claim to: G. Kaplunova Temporary Insolvency Manager Zavodskaya Str. 2 644065 Omsk Russia Tel/Fax: (3812) 36-96-53, 64-53-09 The Arbitration Court of Omsk will convene on Aug. 5, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A46-2018/2008. The Debtor can be reached at: CJSC Company Repair-Building Company Sib-Rem-Service Omsk Russia TSVILLINGSKIY ELEVATOR: Creditors Must File Claims by May 26 ------------------------------------------------------------ Creditors of CJSC Tsvillingskiy Elevator have until May 26, 2008, to submit proofs of claim to: M. Doronin Temporary Insolvency Manager Parkovaya Str. 13 Prigorodnyj 460507 Orenburg Russia The Arbitration Court of Orenburg will convene at 9:00 a.m. on July 1, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A47-711/08-14/ 2 GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: CJSC Tsvillingskiy Elevator Tsvillinga Sol-Iletskiy Orenburg Russia ========= S P A I N ========= * Companies Filing for Insolvencies in Spain Up by 79% ------------------------------------------------------ For the first quarter of 2008, 425 companies in Spain filed for insolvency proceedings, a 79% increase compared to 2007, Dow Jones reports citing Spain's National Statistics Agency. The INE cited slow activity in Spain's construction sector prompted the increase of insolvency filing, the report said. According to the report of the 425 companies, 23.1% belonged to the construction sector, 22.6% from industry, and 16% from the real estate sector. =========== S W E D E N =========== DOLE FOOD: Posts US$28.9 Million Net Loss in Qtr. Ended March 22 ---------------------------------------------------------------- Dole Food Company Inc. reported a net loss of US$28.9 million for the first quarter ended March 22, 2008, compared to a net loss of US$10.2 million for the period ended March 24, 2007. For the quarter ended March 22, 2008, revenues increased 13% to US$1.8 billion from US$1.6 billion for the quarter ended March 24, 2007. The company attributed the increase in revenues to higher worldwide sales of fresh fruit and packaged food products in North America and Asia. For the quarter ended March 22, 2008, operating income increased to US$50.2 million from US$33.5 million for the quarter ended March 24, 2007. The increase was primarily attributable to better pricing in the company's worldwide banana operations, European ripening and distribution business, as well as improvements in the company's packaged salads and packaged foods businesses. For the quarter ended March 22, 2008, interest income and other income, net was an expense of US$26.9 million compared to income of US$3.2 million in the prior year. The change was primarily due to an unrealized loss of US$32.4 million recorded on the company's cross currency swap in 2008 compared to an unrealized loss of US$1.8 million recorded in 2007. Interest expense for the quarter ended March 22, 2008, was US$43.5 million compared to US$44.2 million for the quarter ended March 24, 2007. Interest expense decreased primarily as a result of lower borrowing rates on the company's secured debt facilities partially offset by the impact of additional borrowings. The company recorded US$9.1 million of income tax expense on US$20.2 million of pretax losses from continuing operations for the quarter ended March 22, 2008. Income tax expense for the quarter included US$5.4 million recorded to establish a valuation allowance against deferred income tax assets in Ecuador which, as a result of a recently enacted tax law, have been determined to not be recoverable. Additionally, income tax expense included interest expense of US$2.8 million (net of associated income tax benefits of approximately US$1.3 million) related to the company's unrecognized tax benefits. The income tax expense for the quarter ended March 24, 2007, was US$2.0 million, including interest expense of US$2.4 million (net of associated income tax benefits of approximately US$1.5 million) related to the company's unrecognized tax benefits. Liquidity and Capital Resources For the quarter ended March 22, 2008, cash flows used in operating activities were US$62.8 million compared to cash flows used in operating activities of US$42.1 million for the quarter ended March 24, 2007. Cash flows used in operating activities were US$20.7 million higher, primarily due to higher levels of accounts receivable resulting mainly from increased sales in the fresh fruit segment. This change was partially offset by higher accrued liabilities due in part to the timing of payments. The company had a cash balance and available borrowings under the asset based revolving credit facilit of US$94.9 million and US$108.1 million, respectively, at March 22, 2008. The company believes that its existing cash balance and available borrowing capacity under the ABL revolver together with its future cash flow from operations, planned asset sales and access to capital markets will enable it to meet its working capital, capital expenditure, debt maturity and other commitments and funding requirements during the next twelve months. The company has US$350.0 million of unsecured notes maturing May 1, 2009. The company is working with its bankers and advisors to assess various alternatives available for addressing this maturity. At this time, the company plans to replace these notes with newly issued notes before the end of the year. In addition, the company is evaluating retiring up to US$50.0 million of these unsecured notes with available funds, as allowed under the existing terms of its credit agreements. Balance Sheet At March 22, 2008, the company's consolidated balance sheet showed US$4.8 billion in total assets, US$4.5 billion in total liabilities, and US$297.3 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 22, 2008, are available for free at http://researcharchives.com/t/s?2b91 About Dole Food Headquartered in Westlake Village, California, Dole Food Company, Inc. -- http://www.dole.com/-- is a producer of fresh fruit and fresh vegetables, and markets a line of value-added products. The company operates in four business segments: fresh fruit, fresh vegetables, packaged foods and fresh-cut flowers. The fresh fruit segment contains operating divisions that produce and market fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment contains two operating divisions that produce and market commodity and fresh-cut vegetables to wholesale, retail and institutional customers, primarily in North America, Europe and Asia. The packaged foods segment contains operating divisions that produce and market packaged foods, including fruit, juices and snack foods. The fresh-cut flowers segment sources, imports and markets fresh-cut flowers, grown mainly in Columbia, primarily to wholesale florists and retail grocers in the United States. In Asia, the company has subsidiaries in Japan, Korea, Thailand, Philippines and China. Its European subsidiaries are located in Spain, Czech Republic, Germany, France, Italy, England and Sweden. DOLE FOOD: Fitch Says Credit Protection Measures Still Weak ----------------------------------------------------------- Dole Food Company, Inc. reported earnings for the first quarter ended Mar 22, 2008. As anticipated, the company's revenue and operating income continues to benefit from improved pricing in its worldwide banana operations but higher operating costs; including fuel and EU banana tariffs, remain a drag on overall profitability. Fitch currently has an Issuer Default Rating of 'B-' with a Negative Outlook on Dole. Versus the prior year's period, consolidated revenue grew 13% to US$1.8 billion, operating income improved 50% to US$50 million and segment operating margin improved 80 basis points to 4%. The company's cash flow generation suffered from lower net income, due to a US$32 million unrealized loss on a cross-currency swap, and higher working capital requirements. Cash flow used in operating activities was US$63 million versus US$42 million during the prior year's period. Total debt was approximately US$2.5 billion, up US$67 million from year end. Dole's credit protection measures remain weak for the 'B-' rating category. For the latest twelve month (LTM) period ended Mar. 22, 2008, leverage (defined as total debt-to-operating EBITDA) was 8.1 times (x), interest coverage (defined as operating EBITDA-to-gross interest expense) was 1.6x and funds from operations fixed charge coverage was 1.3x. The company remains in compliance with its fixed charge coverage covenant of at least 1x if availability on its US$350 million asset based revolver falls below US$35 million or 10% of the loan commitment. Dole has significant upcoming maturities for which its current cash flow generation and liquidity can not adequately fund. These maturities include US$350 million of 8-5/8% unsecured notes due May 1, 2009, US$400 million of 7-1/4% unsecured notes due June 15, 2010 and US$200 million of 8-7/8% unsecured notes due March 15, 2011. Fitch currently rates these notes 'CCC+/RR5', indicating they are highly speculative with below average recovery prospects. The Rating Outlook is Negative. Unless operating performance improves more dramatically or asset sales accelerate, liquidity will be an issue for Dole in the near-term. As of Mar. 22, 2008, the company had US$95 million of cash on hand and US$108 million available on its asset-based revolver. Dole has classified US$116 million of assets as held- for-sale and at Dec. 29, 2007 had US$99 million available under its uncommitted facilities. The company has indicated that it is working with its bankers and advisors to assess various alternatives available for addressing the 2009 maturity. At this time, it plans to refinance the May 1, 2009 notes by issuing new debt before the end of 2008. If the company is not able to access public debt markets, Fitch believes the company's remaining options include, among other things: -- refinancing its secured bank facility in order to fund its near term maturities; -- obtaining an intercompany loan from David H. Murdock Holdings Co., Inc. or -- completing a larger restructuring of its balance sheet. ===================== S W I T Z E R L A N D ===================== DORIS DAMEN: Creditors' Liquidation Claims Due by May 18 -------------------------------------------------------- Creditors of LLC Doris Damen + Herren Coiffeur have until May 18, 2008 to submit their proofs of claim to: Neuweg 4 8600 Dubendorf Switzerland ING. N. FURNSINN: Proofs of Claim Filing Deadline is May 18 ----------------------------------------------------------- Creditors of LLC Ing. N. Furnsinn Aluminiumreinigung have until May 18, 2008 to submit their proofs of claim to: JSC Tharpex Treuhand und Revision Untermuli 7 6302 Zug Switzerland LINAX JSC: Liestal Court Commences Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Service of Zug commenced bankruptcy proceedings against JSC Linax on Feb. 26, 2008. The Bankruptcy Service of Liestal can be reached at: Bankruptcy Service of Liestal 4410 Zug Switzerland LEO RICKENBACH: Sursee Court Initiates Bankruptcy Proceedings ------------------------------------------------------------- The Bankruptcy Service of Sursee commenced bankruptcy proceedings against LLC LEO Rickenbach on April 1, 2008. The Bankruptcy Service of Sursee can be reached at: Bankruptcy Service of Sursee 6018 Buttisholz Switzerland The Debtor can be reached at: LLC LEO Rickenbach Fabrikweg 12 6221 Rickenbach. Switzerland MAILWEASEL LLC: Creditors' Proofs of Claim Due by May 18 -------------------------------------------------------- Creditors owed money by LLC mailweasel must submit proofs of claim by the May 18, 2008 deadline to: Jakob Menzi Bahnhofstrasse 12 8753 Mollis Switzerland RESTAURANT SCHWEIZERHOF: Creditors' Claims Due by May 17 -------------------------------------------------------- Creditors owed money by LLC Restaurant Schweizerhof are given until May 17, 2008, to file their proofs of claim to: Recine Ingrid Haberlinstrasse 57 8500 Frauenfeld Switzerland The decision to place the company into liquidation was accepted at the shareholders' meeting held last May 26, 2005. SANDRO KORKEL: Creditors' Liquidation Claims Due by May 18 --------------------------------------------------------- Creditors of LLC Sandro K�rkel have until May 18, 2008, to submit their proofs of claim to: Silke V. Korkel-Bader Bummerten 71 4315 Zuzgen Switzerland STYLE LLC: Deadline for Filing Proofs of Claim is May 18 -------------------------------------------------------- Creditors of Style are given until May 18, 2008 to submit their proofs of claim to: Aliriza Terza Rastatterstrasse 45 4057 Basel Switzerland TEMPUS SERVICE: Creditors' Proofs of Claim Due by May 17 -------------------------------------------------------- Creditors of LLC TEMPUS Service are given until May 17, 2008, to submit their proofs of claim to: Daniel Niederhauser Mattenweg 23 5503 Schafisheim Switzerland ============= U K R A I N E ============= BREADMAKER LLC: Creditors Must File Claims by May 17 ---------------------------------------------------- Creditors of Agricultural LLC Breadmaker (code EDRPOU 03788052) have until May 17, 2008, to submit proofs of claim to: The Economic Court of Hmelnitskij Nezalezhnosti Square 1 29000 Hmelnitskih Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy supervision procedure on the company. The case is docketed as 2/54-B. The Debtor can be reached at: Agricultural LLC Breadmaker Shpichintsy Derazhnia District 32212 Hmelnitskij Ukraine CITADEL BUILDING: Proofs of Claim Deadline Set May 17 ----------------------------------------------------- Creditors of LLC Citadel Building Group (code EDRPOU 35268705) have until May 17, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on April 10, 2008. The case is docketed as B 15/118-08. The Debtor can be reached at: LLC Citadel Building Group Pogrebniak Str. 25-a 49000 Dnipropetrovsk Ukraine DNIPRO CJSC: Proofs of Claim Deadline Set May 21 ------------------------------------------------ Creditors of Agricultural CJSC Dnipro (code EDRPOU 00414115) have until May 21, 2008, to submit proofs of claim to: Tel. 8(048)2-347-194 The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on April 9, 2008. The case is docketed as 14/498/07. The Debtor can be reached at: Agricultural CJSC Dnipro Ochakov District Dmitrevka 57545 Nikolaev Ukraine INTERFICOM LLC: Creditors Must File Claims by May 18 ---------------------------------------------------- The Economic Court of Kiev commenced bankruptcy proceedings against the company on March 28, 2008, after finding it insolvent. The case is docketed as 43/265. Creditors of LLC Interficom (code EDRPOU 33693276) have until May 18, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Interficom Zdolbunov Str. 7-A 02081 Kiev Ukraine OBRIY LLC: Creditors Must File Claims by May 18 ----------------------------------------------- Creditors of LLC Obriy (code EDRPOU 30835311) have until May 18, 2008, to submit proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy supervision procedure on the company. The case is docketed as 5/158B. The Debtor can be reached at: LLC Obriy Kirov Str. 27 Katerinovka Konstantinovka District 85150 Donetsk Ukraine POGREBISCHEAL AGRICULTURAL: Proofs of Claim Deadline Set May 21 --------------------------------------------------------------- Creditors of State Enterprise Trading House Pogrebischeal Agricultural Technical Service (code EDRPOU 20200181) have until May 21, 2008, to submit proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: State Enterprise Trading House Pogrebischeal Agricultural Technical Service Privokzalnaya Str. 1 Pogrebische 22200 Vinnica Ukraine RITA-LTD: Proofs of Claim Deadline Set May 18 --------------------------------------------- Creditors of LLC Commerce Finance-Investment Firm Rita-Ltd. (code EDRPOU 20165986) have until May 18, 2008, to submit proofs of claim to: The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent on Feb. 26, 2008. The case is docketed as 22/94b. The Debtor can be reached at: LLC Commerce Finance-Investment Firm Rita-Ltd. Rozinschikov Avenue 1 Lisichansk 93118 Lugansk Ukraine SVETLANA LLC: Proofs of Claim Deadline Set May 18 ------------------------------------------------- Creditors of LLC Technological Kitting and Construction Svetlana (code EDRPOU 35295126) have until May 18, 2008, to submit proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent on April 9, 2008. The case is docketed as 45/104b. The Debtor can be reached at: LLC Technological Kitting and Construction Svetlana Universitetskaya Str. 80 83114 Donetsk Ukraine ZEMLIA LLC: Creditors Must File Claims by May 18 ------------------------------------------------ The Economic Court of Dnipropetrovsk has commenced bankruptcy supervision procedure on the company. The case is docketed as B 24/245-06. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine Creditors of LLC Zemlia (code EDRPOU 03740329) have until May 18, 2008, to submit proofs of claim to: The Debtor can be reached at: LLC Zemlia Mezhovaya Dnipropetrovsk Ukraine =========================== U N I T E D K I N G D O M =========================== ALPHASTREAM INTERNATIONAL: Taps Liquidators from Vantis ------------------------------------------------------- Mark Newman and Vincent John Green of Vantis Business Recovery Services were appointed joint liquidators of Alphastream International Ltd. on April 30 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Vantis Business Recovery Services Judd House 16 East Street Tonbridge Kent TN9 1HG England BAA LIMITED: Manchester Airports Group May Acquire Assets --------------------------------------------------------- Manchester Airports Group has expressed interest in acquiring any airports that BAA Ltd. might be forced to sell by the U.K. Competition Commission, The Telegraph reports citing MAG CEO Geoff Muirhead. As reported in the TCR-Europe on April 29, 2008, the UKCC said that the BAA�s common ownership of seven airports in U.K. may not be serving well the interests of either airlines or passengers. In an interview with a local radio station, Mr. Muirhead said the airports' price might reflect the effects of the credit crisis and buyers' ability to raise money, the Telegraph relates. MAG's CEO added that BAA might set the price based on the buyers' ability to raise money. About BAA Ltd. Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc) -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Heathrow, the world's busiest international airport, and Budapest Airport, serving 700 destinations by around 300 airlines. * * * As of April 17, 2008, BAA Limited carries BB- long-term corporate credit rating from Standard & Poor's Ratings Services, which said the Outlook is negative. BRITISH ENERGY: Centrica & EDF in Talks over Possible Bid --------------------------------------------------------- Centrica Plc and Electricite de France SA are holding talks over a possible tie-up that would offer GBP11 billion to acquire British Energy Ltd., The Scotsman reports. According to the Scotsman, Centrica chief executive Sam Laidlaw and EDF are have holding talks on creating a bidding joint venture, in which the U.K. firm will own a 25% stake. Centrica has also contacted a number of European energy firms that are considering a bid for British Energy, the report adds. The Scotsman relates that though a Centrica-EDF tie-up may cause competition concerns, the U.K. government is likely to welcome any British involvement in the future ownership of British Energy. 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. BURNLEY PACKAGING: Brings In Liquidators from Tenon Recovery ------------------------------------------------------------ Matthew Colin Bowker and David Antony Willis of Tenon Recovery were appointed joint liquidators of Burnley Packaging Machinery Ltd. (formerly Marswell Engineering Ltd.) on April 22 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery 33 George Street Wakefield WF1 1LX England CHRYSLER LLC: Fitch Cuts Issuer Default Rating to B from B+ ----------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of Chrysler LLC to 'B' from 'B+', with a Negative Rating Outlook. Fitch has also downgraded the senior secured bank facilities based on the downgrade of the IDR and Fitch's recovery rating methodology. The downgrade reflects the decline in unit volumes and revenues resulting from weak economic conditions, modest share losses, certain strategic initiatives, and the effect of these factors on the company's operating performance. Chrysler's restructuring efforts remain on track, and liquidity is expected to remain adequate over the near term to fund restructuring costs and operating losses through a period of economic weakness. Since 2000, Chrysler's market share losses have been more moderate than at Ford and GM, requiring fewer reductions in assembly capacity and the associated fixed costs. In a stable revenue environment, this would allow cost reductions to flow more quickly to the bottom line. However, the severe impact of weakening economic conditions has made this more challenging, and has extended the timeline projected for a potential reversion to positive cashflow. The steep decline in 2008 unit sales also results from strategic initiatives undertaken at Chrysler following its management changes, including reduced fleet sales, product eliminations and inventory reductions, steps that are viewed positively for the company's long-term prospects. Unit volumes in 2008 and into 2009 will be aided by the new Dodge and Chrysler minivan offerings, the Dodge Journey crossover, the low-volume Dodge Challenger, as well as the fall launch of the redesigned Dodge Ram pickup. Several products at the smaller end of Chrysler's lineup, including the Dodge Caliber and Jeep Patriot, have supported unit volumes as consumers migrate to smaller, fuel-efficient vehicles. On a consolidated basis, however, these factors will be more than offset by weakness in the larger end of the company's product portfolio -- the effect of a depressed residential construction market on Chrysler's key pickup lineup, high gas prices, and the impact of general economic conditions on industry sales. Chrysler's efforts to sharply curtail fleet sales and to convert its sales/production strategy to a 'demand-pull' model from a 'production-push' model will further affect sales declines in 2008. International sales, representing approximately 10% of production, are likely to continue to grow at double-digit rates, providing modest support to consolidated sales and capacity utilization. Chrysler's cash flow will remain negative in 2008, due to capital investments, restructuring costs and other one-time items. The company is realizing substantial reductions to its fixed-cost structure, the bulk of which have resulted from salaried and hourly headcount reductions. Variable purchasing, material and other efficiencies have been more difficult to realize as rising commodity costs have offset other progress. Cost reductions and the new UAW contract have positioned the company to moderate operating losses during the current economic weakness, but a return to positive free cash flow is likely to require continued execution on the company's cost reduction efforts and a stabilization in market share and industry sales. Chrysler also faces pending CAW contract negotiations. Liquidity levels (supported by incremental debt from a delayed- draw term loan and a US$1.6 billion note to the UAW as part of the VEBA agreement), are expected to be sufficient to weather weak economic conditions and finance operating and restructuring costs over the near term. New management has resulted in a number of strategic and product adjustments that are quickly being brought to market. Fitch expects that Chrysler will continue to employ an 'asset-lite' approach that could involve additional assembly plant shutdowns. Alliances and/or contract manufacturing will play a role in this decision, and Chrysler is expected to continue to pursue such arrangements on a global basis. Tie-ins with other global OEMs are expected to focus on growth in the company's brand, engineering and distribution capabilities, but requiring minimal capital investment. The relationship with Daimler, which owns 19.9% of Chrysler, remains a modest positive to the rating because of Chrysler's access to certain Daimler technology. The Recovery Rating (RR) on the second lien has been downgraded from 'BB+/RR1' to 'CCC+/RR6' based on lower asset value assumptions and associated recoveries in the event of a stress scenario. Fitch has downgraded these ratings: -- IDR to 'B' from 'B+'; -- Senior secured first-lien bank loan to 'BB/RR1' from 'BB+/RR1'; -- Senior secured second-lien bank loan to 'CCC+/RR6' from 'BB+/RR1'. CLARIS LTD: Moody's Cuts Rating to B2 on Napa Valley VI Notes ------------------------------------------------------------- Moody's Investors Service has taken downgrade actions on one series of synthetic CDO notes and one CDS transaction entered into by Societe Generale Securities (North Pacific) Limited, Tokyo Branch in the context of Napa Valley VI transaction. These rating actions are a response to credit deterioration in the portfolio underlying these transactions. The underlyings portfolio of this transaction includes US subprime RMBS, in particular of the 2005 vintage. Moody's announced 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. These actions are: Napa Valley VI Synthetic CDO of ABS: (1) Series 63/2006 Tranche 1 EUR25,000,000 Napa Valley VI Synthetic CDO of ABS Floating Rate Notes due 2026 -- Current Rating: B2, on review for downgrade -- Prior Rating: Aa3 (2) Societe Generale Securities (Noth Pacific) Ltd. Napa Valley VI CDS JPY6,000,000,000 -- Current Rating: Baa2, on review for downgrade -- Prior Rating: Aaa EOS AIRLINES: Wants to Hire Kurtzman Carson as Claims Agent ----------------------------------------------------------- EOS Airlines Inc. asks permission from the U.S. Bankruptcy Court for the Southern District of New York to employ Kurtzman Carson Consultants LLC as its claims, noticing, and balloting agent. KCC will perform various noticing, claims management and reconciliation, disbursement and other services, if necessary, at the request of the Debtor or the Clerk's Office. James M. Le, the chief operating officer at Kurtzman Carson, tells the Court that it will receive from the Debtor a US$15,000 evergreen retainer for services to be rendered, as well as expense reimbursement. Documents submitted to the Court did not disclose the specific hourly consulting fees of the firm. Mr. Le assures the Court that the firm is disinterested as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. About EOS Airlines Based in Staten Island, New York, Eos Airlines Inc. -- http://www.eosairlines.com/-- is a transatlantic airline that offers flights between New York's John F. Kennedy International Airport and London's Stansted Airport. As of April 26, 2008, Eos operated 31 weekly flights between JFK and Stansted. The company filed for Chapter 11 protection April 26, 2008 (Bankr. S.D.N.Y. Case No.08-22581). Stephen D. Lerner, Esq., at Squire Sanders & Dempsey, LLP, represents the Debtor in its restructuring efforts. When the Debtor filed for protection against it creditors, it listed total assets of US$70,233,455 and total debts of US$34,858,485. In connection with the Chapter 11 bankruptcy filing, Menzies Corporate Restructuring was appointed as joint administrators in the U.K. EOS AIRLINES: Wants Alvarez & Marsal as Financial Advisor --------------------------------------------------------- EOS Airlines Inc. asks permission from the U.S. Bankruptcy Court for the Southern District of New York to employ Alvarez & Marsal Transaction Advisory Group LLC as its financial advisor, nunc pro tunc to April 26, 2008. Alvarez & Marsal will, among others, give assistance in developing a 13-week cash flow forecast in order to assess short-term cash flow needs, assist in the development of contingency plans and vendor management, and assist in the Debtor's preparation of financial statements. Mark Dominic Alvarez, a managing director at Alvarez & Marsal, tells the Court that the firm's professionals bill these hourly rates: Managing Directors US$550 - US$750 Directors US$400 - US$550 Associates US$300 - US$450 Analysts US$175 - US$300 Mr. Alvarez assures the Court that the firm is disinterested as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. About EOS Airlines Based in Staten Island, New York, Eos Airlines Inc. -- http://www.eosairlines.com/-- is a transatlantic airline that offers flights between New York's John F. Kennedy International Airport and London's Stansted Airport. As of April 26, 2008, Eos operated 31 weekly flights between JFK and Stansted. The company filed for Chapter 11 protection April 26, 2008 (Bankr. S.D.N.Y. Case No.08-22581). Stephen D. Lerner, Esq., at Squire Sanders & Dempsey, LLP, represents the Debtor in its restructuring efforts. When the Debtor filed for protection against it creditors, it listed total assets of US$70,233,455 and total debts of US$34,858,485. In connection with the Chapter 11 bankruptcy filing, Menzies Corporate Restructuring was appointed as joint administrators in the U.K. FORD MOTOR: Fitch Says Ratings Outlook Remains Negative ------------------------------------------------------- Fitch Ratings has published these comments regarding its Outlooks for Ford and General Motors following their first quarter ) earnings. As economic conditions and high gas prices continue to erode North American unit sales at Ford and GM, the companies remain in the middle stages of their lengthy restructuring efforts. Although both companies have achieved substantial reductions in fixed costs, primarily through headcount reductions, Ford and GM will continue to experience heavy cash drains in 2008 and reduced liquidity. In the absence of a rebound in economic conditions and industry sales through 2009, both companies are likely to remain cash flow negative during this period. Fitch currently has an Issuer Default Rating (IDR) of 'B' with a Negative Outlook for both Ford and GM, and both ratings are expected to remain on negative outlook until a clearer path toward positive cash flow is established. Given progress on its restructuring program and its product profile, Ford may achieve this during 2008, while liquidity drains in 2008 at GM pose a risk of a further downgrade in the rating. FORD: Ford has demonstrated considerable progress in its restructuring efforts - to its fixed costs, manufacturing footprint, and product profile -- which could result in a Stable rating at some point in 2008 if cost efforts and product competitiveness continue along the same trendline. Ford's reported financial results over the next several quarters will continue to reflect the benefits of the company's restructuring efforts, particularly resulting from its hourly buyout programs. (Please see Fitch's press release of Feb. 14, 2008). Ford has also benefited from having numerous local operating agreements in place prior to negotiation of the national contract, resulting in better integration and smoother implementation of the downsizing efforts. Capacity and headcount reductions are proceeding on plan. Ford's consolidated results will remain dependent on the critical North American pickup market, and the company is unlikely to return to positive free cash flow until the pickup market rebounds along with economic conditions. In any scenario, 2009 results should benefit from the introduction of the new F-Series. Unit sales in the smaller end of its lineup (Fusion, Escape, Focus) have recently held up well, providing a modest level of support for consolidated results. The company's Edge crossover, and two new product introductions this year, the Flex and the Lincoln MKS sedan, are also expected to provide support for volumes. Ford's quality performance could also have a growing impact on longer-term operating results. International operations have demonstrated improvement, providing a modest positive to the company's consolidated profile. Heavy cash drains are projected through 2008 and into 2009, but liquidity is adequate and sufficient to weather moderating operating losses, restructuring costs, and weak economic conditions through 2009. Ford has also undertaken a number of equity-for-debt swaps over the past year in an effort to moderate the leverage and financial impact of the restructuring efforts, an effort that Fitch expects will continue. The recent share purchases by Kirk Kerkorian are not a factor in the rating. Although Mr. Kerkorian has historically been an activist investor across his investments, including actions that have not been bondholder-friendly, in the case of Ford, the interest of bondholders and equity holders are currently very much aligned. GENERAL MOTORS: At GM, North American operating losses and restructuring costs are likely to further erode liquidity in 2008 and 2009. Liquidity has been supported by numerous asset sales, but the lack of further asset sales is likely to mean an accelerated decline in the short term and could result in a downgrade of GM in 2008. Additional debt financings could boost liquidity, but high debt levels and financing costs, coupled with lower interest income, will take a toll on operating cash flows. Fitch believes that inadequate contribution margins across a number of the company's products and production facilities will require further restructuring efforts and the closure of 2-4 assembly plants in addition to what has been announced to date. In addition, the continuing American Axle strike, GM's difficulty in negotiating local operating agreements (that have resulted in further labor actions), and the lack of resolution to the Delphi situation will delay GM's ability to realize fixed cost reductions and other purchasing, materials and production efficiencies in the near term. This will most likely prevent GM from reversing negative cash flows through 2009. GM's international operations continue to be a growing strength for the company's credit profile. Rating factors that could trigger a downgrade include: -- Consolidated 2008 cash drains in excess of US$8 billion, which results in liquidity dropping below US$20 billion; -- Lack of progress in reducing fixed costs, combined with a reduction in international profitability; -- Double-digit production cuts in North America throughout 2008 resulting from a more severe decline in economic conditions or deterioration in GM's product competitiveness. -- Material capital infusion into GMAC. The ratings are unaffected by the pending debt exchange at ResCap or any associated impact on GMAC. Given GM's focus on maintaining liquidity to finance North American operating losses, restructuring expenditures and the recent VEBA agreement, Fitch views it as unlikely that GM would inject any additional capital into GMAC, and any material assistance is not incorporated in the rating. Fitch's most recent recovery analysis had severely discounted asset values of GM's ResCap and GMAC holdings, and did not incorporate expectations of any dividends or capital contributions. Fitch does not believe that the challenges at GMAC and ResCap would measurably impact sales or production at GM. GENERAL MOTORS: Fitch Says Ratings Could Face Likely Downgrade -------------------------------------------------------------- Fitch Ratings has published these comments regarding its Outlooks for Ford and General Motors following their first quarter ) earnings. As economic conditions and high gas prices continue to erode North American unit sales at Ford and GM, the companies remain in the middle stages of their lengthy restructuring efforts. Although both companies have achieved substantial reductions in fixed costs, primarily through headcount reductions, Ford and GM will continue to experience heavy cash drains in 2008 and reduced liquidity. In the absence of a rebound in economic conditions and industry sales through 2009, both companies are likely to remain cash flow negative during this period. Fitch currently has an Issuer Default Rating (IDR) of 'B' with a Negative Outlook for both Ford and GM, and both ratings are expected to remain on negative outlook until a clearer path toward positive cash flow is established. Given progress on its restructuring program and its product profile, Ford may achieve this during 2008, while liquidity drains in 2008 at GM pose a risk of a further downgrade in the rating. FORD: Ford has demonstrated considerable progress in its restructuring efforts - to its fixed costs, manufacturing footprint, and product profile -- which could result in a Stable rating at some point in 2008 if cost efforts and product competitiveness continue along the same trendline. Ford's reported financial results over the next several quarters will continue to reflect the benefits of the company's restructuring efforts, particularly resulting from its hourly buyout programs. (Please see Fitch's press release of Feb. 14, 2008). Ford has also benefited from having numerous local operating agreements in place prior to negotiation of the national contract, resulting in better integration and smoother implementation of the downsizing efforts. Capacity and headcount reductions are proceeding on plan. Ford's consolidated results will remain dependent on the critical North American pickup market, and the company is unlikely to return to positive free cash flow until the pickup market rebounds along with economic conditions. In any scenario, 2009 results should benefit from the introduction of the new F-Series. Unit sales in the smaller end of its lineup (Fusion, Escape, Focus) have recently held up well, providing a modest level of support for consolidated results. The company's Edge crossover, and two new product introductions this year, the Flex and the Lincoln MKS sedan, are also expected to provide support for volumes. Ford's quality performance could also have a growing impact on longer-term operating results. International operations have demonstrated improvement, providing a modest positive to the company's consolidated profile. Heavy cash drains are projected through 2008 and into 2009, but liquidity is adequate and sufficient to weather moderating operating losses, restructuring costs, and weak economic conditions through 2009. Ford has also undertaken a number of equity-for-debt swaps over the past year in an effort to moderate the leverage and financial impact of the restructuring efforts, an effort that Fitch expects will continue. The recent share purchases by Kirk Kerkorian are not a factor in the rating. Although Mr. Kerkorian has historically been an activist investor across his investments, including actions that have not been bondholder-friendly, in the case of Ford, the interest of bondholders and equity holders are currently very much aligned. GENERAL MOTORS: At GM, North American operating losses and restructuring costs are likely to further erode liquidity in 2008 and 2009. Liquidity has been supported by numerous asset sales, but the lack of further asset sales is likely to mean an accelerated decline in the short term and could result in a downgrade of GM in 2008. Additional debt financings could boost liquidity, but high debt levels and financing costs, coupled with lower interest income, will take a toll on operating cash flows. Fitch believes that inadequate contribution margins across a number of the company's products and production facilities will require further restructuring efforts and the closure of 2-4 assembly plants in addition to what has been announced to date. In addition, the continuing American Axle strike, GM's difficulty in negotiating local operating agreements (that have resulted in further labor actions), and the lack of resolution to the Delphi situation will delay GM's ability to realize fixed cost reductions and other purchasing, materials and production efficiencies in the near term. This will most likely prevent GM from reversing negative cash flows through 2009. GM's international operations continue to be a growing strength for the company's credit profile. Rating factors that could trigger a downgrade include: -- Consolidated 2008 cash drains in excess of US$8 billion, which results in liquidity dropping below US$20 billion; -- Lack of progress in reducing fixed costs, combined with a reduction in international profitability; -- Double-digit production cuts in North America throughout 2008 resulting from a more severe decline in economic conditions or deterioration in GM's product competitiveness. -- Material capital infusion into GMAC. The ratings are unaffected by the pending debt exchange at ResCap or any associated impact on GMAC. Given GM's focus on maintaining liquidity to finance North American operating losses, restructuring expenditures and the recent VEBA agreement, Fitch views it as unlikely that GM would inject any additional capital into GMAC, and any material assistance is not incorporated in the rating. Fitch's most recent recovery analysis had severely discounted asset values of GM's ResCap and GMAC holdings, and did not incorporate expectations of any dividends or capital contributions. Fitch does not believe that the challenges at GMAC and ResCap would measurably impact sales or production at GM. INSTORE DESIGN: David Elliott Leads Liquidation Procedure --------------------------------------------------------- David Elliott of Moore Stephens LLP was appointed liquidator of Instore Design Co. Ltd. on April 29 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Moore Stephens LLP First Floor Victory House Quayside Chatham Maritime Kent ME4 4QU England NORTHAMPTON PRINT: Calls In Liquidators from Tenon Recovery ----------------------------------------------------------- Patrick Ellward and Dilip Dattani of Tenon Recovery were appointed joint liquidators of Northampton Print Finishers Ltd. on April 22 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Charnwood House Gregory Boulevard Nottingham NG7 6NX England PHOENIX 2002-1: Moody's May Further Cut Ba1 Rating After Review --------------------------------------------------------------- Moody's Investors Service placed under review for downgrade three classes of notes issued by Phoenix 2002-1. This review for downgrade is the result of negative credit migration in the underlying pool of corporate reference credits. These rating actions are: Phoenix 2002-1: (1) Series 1 US$49,747,500 Floating Rate Euronotes Class A due 2010 -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa2 (2) Series 1 US$58,162,500 Floating Rate Euronotes Class B due 2010 -- Current Rating: Aa3, on review for downgrade -- Prior Rating: Aa3 (3) Series 1 US$86,625,000 Floating Rate Euronotes Class C due 2010 -- Current Rating: Ba1, on review for downgrade -- Prior Rating: Ba1 The transaction will continue to be monitored and any further rating action will be publicly disseminated. SOUTH COAST: Appoints Liquidators from Tenon Recovery ----------------------------------------------------- Stanley Donald Burkett-Coltman and Andrew Pear of Tenon Recovery were appointed joint liquidators of South Coast Security Ltd. on April 23 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England SPLASHPOWER LTD: Fulton Acquires Business and Assets ---------------------------------------------------- Fulton Innovation, one of Alticor Inc.'s its subsidiaries, has acquired the business and assets of Splashpower Ltd. in administration. Terms of the deal were not disclosed. The acquisition reinforces Fulton's industry-leading position in the rapidly growing wireless power industry by expanding both the breadth and depth of Fulton's substantial patent portfolio, comprised of over 250 patents granted or pending worldwide. "T[he] acquisition reaffirms Fulton's commitment to the continued development and commercialization of wireless power," Dave Baarman, director of advanced technologies for Fulton Innovation, said. "By combining our own robust patent portfolio with Splashpower's, we continue to strengthen and expand our capabilities in the development of wireless power as well as our global presence. We are extremely fortunate to have the backing and support of our parent company, Alticor." The assets of Splashpower were acquired out of the administration process. Graham P. Bushby and Lynn R. Bailey of accountancy and business advisory firm Baker Tilly were appointed joint administrators for Splashpower on March 26, 2008 after the company failed to secure the final tranche of its planned funding. Alticor Inc. was advised by Bryan Cave LLP on the transaction. About Fulton Innovation Fulton Innovation is the exclusive licensor of eCoupled(TM) Intelligent Wireless Power technology. About Splashpower Headquartered in Cambridge, England, Splashpower Ltd. -- http://www.splashpower.com/-- is a public pioneer and early champion for commercialization of wireless power technology. Its inductive charging technology enables power to be transferred without wires to a range of mobile devices. The company has a regional office in Tokyo, Japan and regional representation in Seoul, Korea and the US. THE WORKS: Inks GBP17 Million Management Buy-In Deal ---------------------------------------------------- UK-based book chain The Works has entered into a GBP17 million management buy-in deal, saving 2,200 jobs, booktrade.info reports. The company went into administration in January. The deal, booktrade.info relates, was led by former chief executive of ChoicesUK Anthony Skitt and The Works chairman Alan Smith. The new management team is drawing up a business plan aimed at returning the company to its core value, the paper adds. According to The Times, restructuring firm Kroll was called in to run the company's 317 stores in the UK after it collapsed into administration. The company, which faced tough competition from rivals Waterstone's and WH Smith, incurred more than GBP20 million in debts, The Times discloses. * UK Insolvency Helpline to Offer Repossession Counseling --------------------------------------------------------- The UK Insolvency Helpline, Britain's leading debt advice organization has launched a new service to aid UK homeowners avoid eviction and repossession. The service has been developed to concentrate expertise on repossession, bankruptcy and mortgage arrears. The good news for those in mortgage arrears is lenders are going to exceptional lengths to provide debt counseling, reschedule payments, extend loan terms, or in some circumstances even allow payment breaks. Lenders abandon repossession action right up to the last moment if they can reach a payment solution consistent with both the borrower's and the lender's interests. Looking ahead, it remains difficult to forecast the likely level of arrears and repossessions in 2008. The number of repossessions is likely to be higher in 2008 as a result of wider issues in the economy and the mortgage funding markets. No-one is necessarily to blame for this - even the best risk assessment cannot provide a crystal ball insight to the future for each particular borrower. The new "Repossession Counselling" team will be based in London. It will work closely with the mortgage sector and others to reduce or alleviate repossessions and be directly available to the public. The advice provided won't cost anything. The public can depend on The UK Insolvency Helpline to be honest, open and ethical and every solution is suggested without obligation. All the staff at the helpline has many years of pooled expertise and special training on how to deal with mortgage arrears, repossession orders and bailiff issues. The message to the public from Ian Boden Smyth, spokesman for the service is, "Don't panic, there is no need to sell your home. Your case now can now be defended at the repossession hearing to the repossession hearing suspended at an early stage. Its never too late to act, the service had already stopped 100's of repossessions even where the caller has been within days of being evicted. In some cases evictions have been stopped within 24 hours." The debt advice counselling service will continue as normal to provide expert advice on different debt solutions from it base in Manchester. Advice is free and impartial, covering a range of options including bankruptcy, IVA (http://www.insolvencyhelpline.co.uk/paye-employed/the-iva- procedure.htm) or debt management. The debt advice team advises thousands people a week on different debt solutions. In every single case the service only recommends the least drastic and most effective remedy, based entirely on each person's particular situation. As an example, only 4% of people who take debt advice end up in an IVA (http://www.insolvencyhelpline.co.uk/paye-employed/the-iva- procedure.htm). Every case is different and so will depend on the individual circumstances. One of the counsellors will take a financial statement detailing income & essential expenditure, unsecured debts and mortgage arrears. No matter how bad the circumstances, call us on Freephone 0800-074-6918 for immediate and free advice. The UK Insolvency Helpline is a national telephone helpline for people with debt problems in England, Scotland and Wales. The service is free, confidential and independent. The service has existed since 1986 and was set up in conjunction with the credit and insolvency industry. The free service provides self-help advice to its callers and also produces written self-help packs and factsheets to back this up. The service can also assist callers with the setting up of IVA (http://www.insolvencyhelpline.co.uk/paye-employed/the-iva- procedure.htm), bankruptcy and debt Management plans. * S&P Places 24 European Cash CDO of ABS Tranches on Watch Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its ratings on 24 classes in nine cash flow collateralized debt obligations of asset-backed securities transactions. At the same time, 36 tranches in seven transactions remain on CreditWatch negative. Ratings on all other classes are unaffected. These CreditWatch placements reflect deterioration in the credit quality of the underlying portfolios and the expected increase in scenario default rates. The deterioration in credit quality and SDR increase is due to their exposure to U.S. CDOs of ABS and residential mortgage-backed securities that have recently been downgraded or placed on CreditWatch. In addition to this expected increase in SDRs, these CreditWatch placements also reflect an anticipated decrease in the breakeven default rates for the underlying portfolios when subject to our cash flow analysis. The potential decrease in the BDRs is a result of our revision to our recovery assumptions for certain CDOs. Ratings List Ratings Placed On CreditWatch Negative Rating Class To From G Square Finance 2006-1 Ltd. A-1 AA+/Watch Neg AA+ A-2 AA/Watch Neg AA B BBB+/Watch Neg BBB+ CAMBER 4 PLC A2 AA/Watch Neg AA A3 AA/Watch Neg AA B A-/Watch Neg A- C B+/Watch Neg B+ Cairn High Grade ABS CDO I PLC A-1 AA-/Watch Neg AA- A-2 A+/Watch Neg A+ B A/Watch Neg A C BBB+/Watch Neg BBB+ E BB-p/Watch Neg BB-p Avebury Finance CDO PLC A-1A rev BB/Watch Neg BB A-2 CCC+/Watch Neg CCC+ Cheyne ABS Investments I PLC C BBB-/Watch Neg BBB- Sheffield CDO Ltd. C A/Watch Neg A D BBB/Watch Neg BBB Palmer Square PLC C-1 A/Watch Neg A C-2 A/Watch Neg A D-1 BB+/Watch Neg BB+ D-2 BB+/Watch Neg BB+ New Bond Street CDO 1 PLC A2 AAA/Watch Neg AAA G Square Finance Ltd. B AA/Watch Neg AA C BBB/Watch Neg BBB Ratings Remaining On CreditWatch Negative Class Rating G Square Finance 2006-2 Ltd. A-1 B-/Watch Neg A-2 CCC+/Watch Neg B CCC/Watch Neg G Square Finance 2007-1 Ltd. A-1 CCC+/Watch Neg A-2 CCC+/Watch Neg B CCC-/Watch Neg C CCC-/Watch Neg D CCC-/Watch Neg E CCC-/Watch Neg Faxtor HG 2007-1 A-1M B/Watch Neg A-2 CCC/Watch Neg New Bond Street CDO 2 PLC A AAA/Watch Neg Fiorente Funding Ltd. A CCC-/Watch Neg B CCC-/Watch Neg C CCC-/Watch Neg D-1 CCC-/Watch Neg D-2 CCC-/Watch Neg Bantry Bay CDO I PLC A-1 BBB/Watch Neg A-2 BB-/Watch Neg A-3 CCC+/Watch Neg B CCC-/Watch Neg C CCC-/Watch Neg D CCC-/Watch Neg Palmer Square 2 PLC X-1 AAA/Watch Neg X-2 AAA/Watch Neg A1-M-A AAA/Watch Neg A1-M-B AAA/Watch Neg A1-Q-A AAA/Watch Neg A1-Q-B AAA/Watch Neg A2-A AA+/Watch Neg A2-B AA+/Watch Neg A3-A BBB/Watch Neg A3-B BBB/Watch Neg B-1 BBB-/Watch Neg B-2 BBB-/Watch Neg C BB-/Watch Neg * Upcoming Meetings, Conferences and Seminars --------------------------------------------- May 9, 2008 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton U.S. Custom House, New York Contact: 1-703-739-0800; http://www.abiworld.org/ May 12, 2008 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center, New York Contact: 1-703-739-0800; http://www.abiworld.org/ May 12-13, 2008 PRACTISING LAW INSTITUTE 30th Annual Current Developments in Bankruptcy & Reorganization PLI Center San Francisco, California Contact: http://www.pli.edu/ May 13-16, 2008 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, Louisiana Contact: 1-703-739-0800; http://www.abiworld.org/ May 15-16, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Fifth Annual Conference on Distressed Investing Europe Maximizing Profits in the European Distressed Debt Market Le Meridien Piccadilly Hotel - London Contact: 800-726-2524; 903-595-3800; http://www.renaissanceamerican.com/ May 18-20, 2008 INTERNATIONAL BAR ASSOCIATION 14th Annual Global Insolvency & Restructuring Conference Stockholm, Sweden Contact: http://www.ibanet.org/ May 21, 2008 TURNAROUND MANAGEMENT ASSOCIATION What Happened to My Money - The Restructuring of a Loan Servicer Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference J.W. Marriott Spa and Resort, Las Vegas, Nevada Contact: http://www.airacira.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ June 19 & 20, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Corporate Reorganizations Contact: 800-726-2524; 903-595-3800; http://www.renaissanceamerican.com/ June 24, 2008 TURNAROUND MANAGEMENT ASSOCIATION Fraud Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ June 26-29, 2008 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Seminar Jackson Hole, Wyoming Contact: http://www.nortoninstitutes.org/ July 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Cynthia Jackson of Smith Hulsey & Busey University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ July 10-13, 2008 AMERICAN BANKRUPTCY INSTITUTE 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.abiworld.org/events/ July 29, 2008 TURNAROUND MANAGEMENT ASSOCIATION Employment Issues Following Hurricanes & Disasters Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Aug. 20-24, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Captain Cook, Anchorage, Alaska Contact: http://www.nabt.com/ Aug. 26, 2008 TURNAROUND MANAGEMENT ASSOCIATION Do's and Don'ts of Investing in a Turnaround Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Sept. 4-5, 2008 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 17, 2008 TURNAROUND MANAGEMENT ASSOCIATION Real Estate / Condo Restructuring Panel Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Sept. 24-26, 2008 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 15th Annual Fall Conference Scottsdale, Arizona Contact: http://www.ncbj.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Desert Ridge Marriott, Scottsdale, Arizona Contact: http://www.iwirc.org/ Sept. 30, 2008 TURNAROUND MANAGEMENT ASSOCIATION Private Equity Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Oct. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Luncheon - Chapter 11 University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ Oct. 28, 2008 TURNAROUND MANAGEMENT ASSOCIATION State of the Capital Markets Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Oct. 30 & 31, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Physicians Agreements and Ventures Contact: 800-726-2524; 903-595-3800; http://www.renaissanceamerican.com/ Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Interaction Between Professionals in a Restructuring/Bankruptcy Bankers Club, Miami, Florida Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Chinas New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer for Navigating the Restructuring Process Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Examining the Examiners: Pros and Cons of Using Examiners in Chapter 11 Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergersthe New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Todays Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ * * * Featured Conferences Beard Conferences presents: May 15-16, 2008 Fifth Annual Conference on Distressed Investing Europe Maximizing Profits in the European Distressed Debt Market Le Meridien Piccadilly Hotel - London Brochure available soon! * * * The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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 and Pius Xerxes Tovilla, 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 * * *