/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080728.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, July 28, 2008, Vol. 9, No. 148 Headlines A U S T R I A MCSS LLC: Claims Registration Period Ends August 4 MOLL LLC: Claims Registration Period Ends August 5 H. KUBIS & R. STEINWENDER: Claims Registration Ends August 4 WAGNER RAMONA: Claims Registration Period Ends August 11 F I N L A N D M-REAL CORP: Posts EUR8 Million Net Loss in 2nd Quarter 2008 M-REAL CORP: S&P Shifts Outlook to Neg., Holds B Credit Ratings F R A N C E PERNOD RICARD: Moody' Cuts Long-Term Rating to Ba1 DURALEX INTERNATIONAL: Orleans Court Selects Buyer G E R M A N Y ADVANCED MICRO: Posts US$1.2 Billion Net Loss in 2nd Qtr 2008 AMPEX CORPORATION: Has Until October 26 to File Chapter 11 Plan APP ARBEIT: Claims Registration Period Ends August 5 ATG GMBH: Claims Registration Period Ends August 5 BELEUCHTUNGSHAUS EMIL: Claims Registration Period Ends Aug. 6 BODYLIZER GMBH: Claims Registration Period Ends August 5 CONVEX VERWALTUNGS: Claims Registration Period Ends August 6 DIEMAK MOBIL: Claims Registration Period Ends August 4 EINKAUFS- UND HANDELS: Claims Registration Period Ends August 5 ELEKTRO FRISCHHOLZ: Claims Registration Period Ends August 5 H&H MASSIVHAUS: Claims Registration Period Ends August 5 IMITZ TRADING: Claims Registration Period Ends August 4 MEIGO AGRARPRODUKTIONS: Claims Registration Period Ends Aug. 5 MG-MEDIA GMBH: Claims Registration Period Ends August 5 PRO SENIOREN-WELT: Claims Registration Period Ends August 4 PROSIEBENSAT.1 MEDIA: Klaus-Peter Schulz Joins Executive Board TETEKERA GMBH: Claims Registration Period Ends August 5 TRUCKTEC SPEDITIONS: Claims Registration Period Ends August 4 VINO E VITA: Claims Registration Period Ends August 4 WESTFALENSTOLZ VERTRIEB: Claims Registration Period Ends Aug. 5 H U N G A R Y * Corporate Insolvencies in Hungary Up 13%, Coface Report Says I R E L A N D SANDISK CORP Severe 2Q Operating Losses Cue S&P to Cut Ratings K A Z A K H S T A N AGRO SERVICE: Creditors Must File Claims by September 9 AKBULAK OJSC: Claims Deadline Slated for September 3 BAZALT ROVING: Claims Filing Period Ends September 9 BTA BANK: Hikes Stake in Russia's BTA Bank LLC to 52.84% CHASP RSU: Creditors' Claims Due on September 11 JULDYZ OJSC: Claims Registration Ends September 3 INTERNATIONAL TRANSPORT: Creditors Must File Claims by Sept. 3 KUAN-ENERGO LLP: Claims Deadline Slated for September 9 MASTER SET: Claims Filing Period Ends September 11 K Y R G Y Z S T A N VIP COMPANY: Creditors Must File Proofs of Claim by September 2 L U X E M B O U R G EVRAZ GROUP: Wins Development License for Mezhegey Coal Deposit N E T H E R L A N D S E-MAC DE 2005-I: S&P Drops Ratings on Class D/E Notes to BB/B X5 RETAIL: To File Arbitration Claims vs Anti-Monopoly Service R U S S I A AMRITA LLC: Creditors Must File Claims by August 28 ANZOR-MOTORS: Creditors Must File Claims by August 21 BROILER LLC: Court Names A. Safronov as Insolvency Manager CLOTHES OJSC: Court Names A. Baskakov as Insolvency Manager DAIRY OJSC: Court Starts Bankruptcy Supervision Procedure EVRAZ GROUP: Wins Development License for Mezhegey Coal Deposit GAMMA LLC: Moscow Court Starts Bankruptcy Supervision Procedure GAS COMBUSTIBLE: Creditors Must File Claims by August 21 OUR HOUSE-7: Bashkortostan Bankruptcy Hearing Set November 26 NIZHNEKOLYMSKOE CJSC: Court Starts Bankruptcy Supervision NOVATEK OAO: Extraordinary General Meeting Set October 2 SAMARA-GRAIN-RESOURCE: Names A. Kalandarov as Insolvency Manager SISTEMA JSFC: Detsky Mir Unit Gains US$20 Million Credit Line STAROBEZGINSKOE CJSC: Creditors Must File Claims by August 21 STAROMAYNSK-AGRO-SNAB: Creditors Must File Claims by August 28 STROY-BASE LLC: Creditors Must File Claims by August 21 UVELSKAYA POULTRY: Court Names A. Fazlyev as Insolvency Manager X5 RETAIL: To File Arbitration Claims vs Anti-Monopoly Service S W E D E N FORD MOTOR: Net Loss Slides to US$8.7BB in Quarter Ended June 30 S W I T Z E R L A N D AFFER DA PITTUR: Creditors Have Until Sept. 27 to File Claims ALUVAL JSC: September 7 Set as Deadline to File Proofs of Claim BASKRA LLC: Creditors Must File Proofs of Claim by August 31 BEAR FACTORY: Deadline to File Proofs of Claim Set Sept. 27 FRIDBACH IMMOBILIEN: Proofs of Claim Filing Deadline is Aug. 31 GENERAL MOTORS: Global Sales Down 5% in Second Quarter 2008 GUSTAG JSC: Creditors' Proofs of Claim Due by August 31 LASSERGUT JSC: Aug. 18 Set as Deadline to File Proofs of Claim SEMGROUP LP: Court OKs Use of Cash Collateral, First Day Motions SEMGROUP LP: Chapter 11 Filing Cues Moody's to Junk Ratings SEMGROUP LP: Bankruptcy Filing Cues Fitch to Put Default Ratings SEMGROUP LP: Fitch Cuts, Withdraws Ratings After Chap 11 Filing UBS AG: Attorney General Cuomo Files Securities Fraud Lawsuit U K R A I N E BABILON ELIT: Creditors Must File Claims by August 9 DAKHSERVICE LLC: Creditors Must File Claims by August 9 FREIGHT LLC: Creditors Must File Claims by August 9 INDUSTRIAL ELECTROINDUSTRY: Creditors Must File Claims by Aug. 9 INDUSTRIAL INVESTMENT: Creditors Must File Claims by August 9 MINELI-TRADE MARK: Creditors Must File Claims by August 10 MRIYA LLC: Proofs of Claim Filing Deadline Set August 9 PODOLSKY SMAK: Proofs of Claim Filing Deadline Set August 10 R.T.R. LLC: Creditors Must File Claims by August 9 UKRAINIAN TRADING: Creditors Must File Claims by August 9 VITA-OKS: Creditors Must File Claims by August 10 U N I T E D K I N G D O M AIR AFFAIRS: Taps Liquidators from BDO Stoy Hayward CHESAPEAKE CORP: UK Unit Agrees on Amended Recovery Plan CHESTERTON INTERNATIONAL: Appoints Liquidators from PwC CPAM REALISATIONS: Claims Filing Period Ends August 22 CPS REALISATIONS: Brings In Liquidators from PwC HUGO REALISATIONS: Creditors' Meeting Slated for August 8 INTERPUBLIC GROUP: Moody's Rates US$335MM Debt Facility at Ba3 JAJA INVESTMENTS: Taps Smith & Williamson to Administer Assets KEVDALE DEVELOPMENTS: Appoints Joint Administrators from Begbies MK KINGSTON: Calls In Administrators from Smith & Williamson PHOTO-OPTIX LTD: Creditors' Meeting Slated for August 11 PROCOOK LTD: Exits Administration After Management Buy-Out QUEBECOR WORLD: Catalyst Slashes Reclamation Claim to US$1.85MM QUEBECOR WORLD: Inks Two Master Lease Pacts with National City SCOTTISH RE: A.M. Best Cuts Most Debt Ratings to 'c' SOLO CUP: Moody's Affirms B3 Corporate Family Rating VALLEY CONSERVATORIES: Calls In Liquidators from Tenon Recovery VONAGE HOLDINGS: Gets US$215MM Debt Financing from Silver Point * UK Industrials Sector Has Highest Pensions Risk, Deloitte Says * S&P Says European Sovereign Finances Improved In Two Years * Economic Downturn Pressures S&P's Ratings on European Banks * Credit Losses Threaten European Consumer Finance, S&P Reports * BOND PRICING: For the Week July 21 to July 25, 2008 ********* ============= A U S T R I A ============= MCSS LLC: Claims Registration Period Ends August 4 -------------------------------------------------- Creditors owed money by LLC MCSS have until Aug. 4, 2008, to file written proofs of claim to the court-appointed estate administrator: Nikolaus Vogt Zeltgasse 3/13 1080 Vienna Austria Tel: 402 5701 33 Fax: 402 5701-57 E-mail: nikolaus.vogt@riess.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Aug. 18, 2008, for the examination of claims at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 27, 2008, (Bankr. Case No. 3 S 71/08y). MOLL LLC: Claims Registration Period Ends August 5 -------------------------------------------------- Creditors owed money by LLC Moll have until Aug. 5, 2008, to file written proofs of claim to the court-appointed estate administrator: Peter Riedel Pfarrplatz 3 9020 Klagenfurt Tel: 0463/500 246 Fax: 0463/500 246-8 E-mail: ra.riedel@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Aug. 12, 2008, for the examination of claims at: The Land Court of Klagenfurt Room 225 2nd Floor Klagenfurt Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on June 30, 2008, (Bankr. Case No. 40 S 40/08k). H. KUBIS & R. STEINWENDER: Claims Registration Ends August 4 ------------------------------------------------------------ Creditors owed money by LLC H. Kubis & R. Steinwender have until Aug. 4, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Eva WEXBERG, address: Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 18, 2008, for the examination of claims at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on June 23, 2008, (Bankr. Case No. 3 S 69/08d). WAGNER RAMONA: Claims Registration Period Ends August 11 -------------------------------------------------------- Creditors owed money by KEG Wagner Ramona have until Aug. 11, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Georg Buder Bethlehemstr. 3 4020 Linz Austria Tel: 77 1877 Fax: 77 1877 18 E-mail: moerth.buder@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on Aug. 25, 2008, for the examination of claims at: The Land Court of Linz Room 522 5th Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on June 23, 2008, (Bankr. Case No. 12 S 53/08v). ============= F I N L A N D ============= M-REAL CORP: Posts EUR8 Million Net Loss in 2nd Quarter 2008 ------------------------------------------------------------ M-Real Corp. released financial results for the second quarter of 2008. M-Real reported a net loss of EUR8 million on sales of EUR1.07 billion for the second quarter of 2008, compared with a net loss of EUR19 million on sales of EUR1.09 billion for the first quarter of 2008. At June 30, 2008, the company's condensed consolidated balance sheet showed EUR5.2 billion in total assets, EUR3.3 in total liabilities and EUR1.9 billion in shareholders' equity. "We have found new profit improvements mainly through simplifying business concepts, which made it possible to raise the target of the profit improvement program in May," Mikko Helander, CEO, M-real Corporation commented. We will still launch new profit improvement actions later in the year to cover as much of the heavy cost inflation as possible. Our divestment program is seeing good progress, and we believe in our possibility to exceed the EUR200 million target by the end of the first quarter of 2009. There is a definite need to increase the prices for all paper and paperboard products, and we will do everything we can to achieve the necessary increases." Headquartered in Espoo, Finland, M-real Corp. -- http://www.M-Real.com/-- produces and distributes coated and uncoated fine papers for printing and packaging industries. The company has operations in Brazil and Mexico. * * * M-real continues to carry a B2 long-term corporate family rating and a B2 senior unsecured debt rating from Moody's Investor Service, with negative outlook. Standard & Poor's rates the company's long-term foreign and local issuer credit at B+ and its short-term foreign and local issuer credit at B. The outlook is negative. M-REAL CORP: S&P Shifts Outlook to Neg., Holds B Credit Ratings --------------------------------------------------------------- Standard & Poor's Rating Services has revised its outlook on Finland-based forest product company M-real Corp. to negative from stable. At the same time, all ratings on M-Real were affirmed, including the 'B-' long-term and 'B' short-term corporate credit ratings. "The outlook revision reflects deterioration in M-Real's liquidity position," said S&P's credit analyst Jacob Zachrison. The deterioration results from negative operating cash flow generation in the first half of 2008 with poor prospects for any significant medium-term improvement, large upcoming debt maturities in 2009, and the expiry in 2009 of a EUR500 million revolving credit facility which is M-real's key liquidity source. These factors could lead to serious difficulties in meeting the company's debt obligations over the next 18 months," Mr. Zachrison said. The ratings on M-real continue to reflect its exposure to challenging market conditions, commoditized products, weak pricing power, and high and escalating input costs. They also reflect its weak operating performance, profitability, credit measures, and increased refinancing and liquidity risks. These factors are partly offset by the group's large and modern asset base, significant restructuring initiatives, meaningful diversification among paper grades, and sizable shares of the European fine paper and paperboard markets. On June 30, 2008, M-real had adjusted debt of about EUR2.3 billion (including about EUR86 million in postretirement and leasing liabilities). The negative outlook reflects challenging market conditions and the increased risk of a further deterioration in the company's liquidity position or failure to address upcoming refinancing needs over the near term. These factors could lead to a downgrade. =========== F R A N C E =========== PERNOD RICARD: Moody' Cuts Long-Term Rating to Ba1 -------------------------------------------------- Moody's Investors Service downgraded Pernod Ricard's long-term rating to Ba1 from Baa3 and its short-term rating to Not Prime from Prime-3. The ratings of the bonds issued by Allied Domecq, and guaranteed by Pernod Ricard, were also downgraded to Ba1 from Baa3. Concurrently, Moody's assigned a Ba1 Corporate Family Rating to Pernod Ricard. The downgrade concludes the review initiated on March 31, 2008, when Pernod Ricard announced that it would acquire Vin & Sprit , the Swedish wine and spirits producer, owner of the Absolut vodka brand, from the Swedish government. The rating outlook is stable. On July 23, 2008, Pernod Ricard completed the acquisition of V&S for a total enterprise value of EUR5.7 billion, including the assumption of EUR346 million for it borrowings. The transaction was cleared by the European Commission on July 17, 2008, and whilst the decision is conditional on the sale by Pernod Ricard of certain brands, Moody's understands that these are minor contributors to the group's earnings and does not expect these divestments to have an impact on the business profile of the company. The downgrade to Ba1/Not Prime primarily reflects the significantly higher indebtedness taken on following the acquisition and the weakening in debt protection ratios. Moody's estimates that, on a pro forma basis, Debt to Ebitda for the combined entity would reach approximately 6.9x at FYE June 2008. Moreover, Moody's considers that the decision to finance the acquisition of V&S using debt only signals a more aggressive financial policy. At the same time, Moody's recognizes that the acquisition of V&S and its iconic Absolut brand will enhance Pernod Ricard's position as the world's second-largest producer and distributor of wines and spirits. The rating agency also expects the acquisition to increase Pernod Ricard's geographic diversity with an improved position in the Nordic region and the U.S. where V&S generated around 43% of its revenues at fiscal year ended Dec. 31, 2007. In addition, the transaction fits nicely into the company's "premiumization" strategy, bringing a global premium vodka brand with strong brand equity to its existing portfolio. Looking ahead, Pernod Ricard plans to achieve pre-tax synergies from the integration of V&S in the range of EUR125 million to EUR150 million on a run-rate basis, mainly from a reduction in distribution and structure costs, which Moody's views as achievable. The rating agency also expects Pernod Ricard to leverage its existing distribution network with the additional volumes from the purchased brands, as well as using its marketing capabilities to improve their growth prospects, in particular for the Absolut Vodka brand. The Ba1 rating does not factor in any execution risks or disruption in connection with V&S existing distribution arrangements in the U.S., through Future Brands, and in certain international markets (excluding the U.S.) via Maxxium, which will remain in force for some time after the acquisition. The Ba1 rating factors in Moody's view that credit metrics, which are expected to weaken significantly after the transaction, will gradually improve over the next two years to position the company more comfortably in the Ba1 rating category. The pace of recovery could also benefit from various asset disposals estimated at around EUR1 billion. Pernod Ricard's liquidity profile is reliant on bank financing and underpinned by a moderate amount of cash balance and short term investments as well as relatively stable cash flows generated by operations. In order to complete the V&S transaction, the company has signed a syndicated facility to fund the acquired assets, refinance existing borrowings, back- stop short-term maturities and allow sufficient headroom to cover other potential corporate needs. This facility comprises EUR2.978 billion and US$10.138 billion of term loans and EUR2.020 billion of five-year revolving credit facilities and includes financial covenants. It ranks pari passu with Pernod Ricard's bonds. The stable outlook reflects the strengthened market position and quality of brand portfolio of Pernod Ricard after the acquisition as well as Moody's expectation that the acquisition of V&S will not raise any integration issues, reflecting the company's demonstrated ability to successfully integrate purchased brands into its existing portfolio and distribution network. The stable outlook also factors in Moody's expectation that the company will continue to improve profitability and deliver operating efficiencies, despite a less favorable environment. An upgrade is unlikely over the next 18 months given the company's increased leverage. However, Moody's would consider an upgrade if the company reduces its leverage, on a sustainable basis, with Debt to EBITDA trending towards 4.5x. Negative pressure would build on the rating and/or outlook if there is evidence of a deterioration in the business profile, further acquisition activity or step up in shareholders' returns that would weigh on the credit metrics and hinder the reduction in leverage below 6.0x in the next 12 to 18 months. The last rating action was on March 31, 2008, when Moody's placed Pernod Ricard's Baa3 rating under review for possible downgrade after the company's announcement to purchase Vin & Sprit from the Swedish government. Incorporated in Paris, France, Pernod Ricard is a leading global alcoholic beverages company, which generated sales of EUR6.6 billion for the fiscal year ended June 2008. Pernod Ricard acquired the spirit and wine company Allied Domecq in July 2005. DURALEX INTERNATIONAL: Orleans Court Selects Buyer -------------------------------------------------- The Tribunal de Commerce in Orleans, France, has selected a group of four investors as winning bidder for the business and assets of Duralex International France SAS, Bloomberg News relates, citing a Le Parisien report. The buyer offered to invest around EUR4 million into the Duralex and reemploy 200 of its 240 workers, Le Parisien relates. The group also offered to revive the company with "more trendy" products including glasses in new styles and colors. The buyer -- which bested 17 other bidders -- includes a turnaround specialist, an industrialist, and two Duralex executives, Le Parisien adds. The court placed Duralex into liquidation in April 2008 afte refusing to extend its six-month receivership, Le Parisien says. The company had around EUR30 million in debts. Headquartered in La Chapelle Saint-Mesmin, France, Duralex International France specializes in making glasses. ============= G E R M A N Y ============= ADVANCED MICRO: Posts US$1.2 Billion Net Loss in 2nd Qtr 2008 ------------------------------------------------------------- Advanced Micro Devices Inc. disclosed on July 17, 2008, its financial position and results of operations as of and for its second fiscal quarter ended June 28, 2008. In the second quarter of 2008, the company reported a net loss of US$1.2 billion. For continuing operations, the second quarter loss was US$269 million and the operating loss was US$143 million. Loss from discontinued operations was US$920 million, including asset impairment charges of US$876 million. The results for continuing operations for the second quarter of 2008 include a net favorable impact of US$97 million, which consists of a US$193 million gain on sale of 200mm equipment, reduced by US$36 million in marketable securities impairment charges, US$30 million in amortization of acquired intangibles, integration and other charges, and US$30 million in restructuring charges. The company reported second quarter 2008 revenue from continuing operations of US$1.3 billion, a seven percent decrease compared to the first quarter of 2008 and a three percent increase compared to the second quarter of 2007. As part of its previously communicated review of its non-core businesses, the company decided to divest its Handheld and DTV product businesses, and therefore is classifying them as discontinued operations for financial reporting. In the first quarter of 2008 the company had revenue from continuing operations of US$1.5 billion, a net loss of US$358 million, a loss from continuing operations of US$308 million and an operating loss of US$214 million. In the second quarter of 2007 the company had revenue from continuing operations of US$1.3 billion, a net loss of US$600 million, a loss from continuing operations of US$531 million and an operating loss of US$396 million. "While we had a disappointing quarter financially, customer adoption of our recently introduced microprocessor and graphics products and platform offerings is strong, and we see increasing momentum across our businesses," said Robert J. Rivet, the company's chief financial officer. "In the face of challenging macroeconomic conditions, we remain committed to achieving operating profitability in the second half of the year based on the continued ramp of new products, increased market penetration of our differentiated solutions, and continued actions designed to reduce our breakeven point." Second quarter 2008 gross margin was 52 percent. Excluding the positive impact associated with the sale of 200mm manufacturing equipment, second quarter 2008 gross margin was 37 percent, compared to 41 percent in the first quarter of 2008 and 34 percent in the second quarter of 2007. Balance Sheet At June 28, 2008, the company's consolidated balance sheet showed US$9.8 billion in total assets, US$8.1 billion in total liabilities, US$189 million in minority interest in consolidated subsidiaries, and US$1.5 billion in total stockholders' equity. About Advanced Micro Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative processing solutions in the computing, graphics and consumer electronics markets. * * * As reported in the Troubled Company Reporter on Jan. 28, 2008, Fitch downgraded these ratings on Advanced Micro Devices Inc., including its Issuer Default Rating to 'B-' from 'B'; and its Senior unsecured debt to 'CCC'/RR6 from 'CCC+/RR6'. The Rating Outlook is Negative. AMPEX CORPORATION: Has Until October 26 to File Chapter 11 Plan --------------------------------------------------------------- The Hon. Arthur J. Gonzalez of the United States Bankruptcy Court for the Southern District of New York extended the exclusive periods of Ampex Corporation and its debtor-affiliates to: a) file a Chapter 11 plan until Oct. 26, 2008, and b) solicit acceptances of that plan until Dec. 25, 2008. As reported in the Troubled Company Reporter on July 4, 2008, the requested extension of time will permit the Debtors to obtain confirmation of their proposed Chapter 11 plan of reorganization, without any disruption of their restructuring operation of their businesses. The Court approved pursuant to Section 1125 of the Bankruptcy Code the adequacy of the Debtors' disclosure statement dated June 8, 2008, explaining an amended Chapter 11 plan. The Court set a hearing on July 31, 2008, at 10:00 a.m., to consider confirmation of the Debtors' amended plan. The Plan provides for the restructuring of the Debtors' liabilities to maximize recovery to all stakeholders and to improve financial viability of the reorganized Debtors. All of the Debtors' existing common stock will have no value and will be canceled. Upon emergence, at least 80% of the reorganized Debtors' new common stock will be owned by Hillside Capital Incorporated and its affiliates. The new common stock will not be registered and will not be traded on any public exchange. Under the Plan, holders of Class 5 general unsecured creditors will receive their pro rata share of the unsecured claim distribution. Distributions of new common stock will be made after the Plan's effective date. Hillside unsecured deficiency claims, if any, will be deemed an allowed unsecured claim in the amount of at least US$41.7 million. Estimated Estimated Type of Claims Treatment Amount Recovery -------------- --------- ----------- -------- Hillside impaired US$11,000,000 100% Secured Claims General Unsecured Claims impaired US$51,000,000 100% A full-text copy of the Third Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?2d9b A full-text copy of the Amended Joint Chapter 11 Plan of Reorganization is available for free at: http://ResearchArchives.com/t/s?2d9c About Ampex Headquartered in Redwood City, California, Ampex Corp. -- http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual information technology. The company has two business segments: Recorders segment and Licensing segment. The Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. The Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. On March 30, 2008, Ampex Corp. and six affiliates filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York (Case Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq., and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors in their restructuring efforts. The Debtors have also retained Conway Mackenzie & Dunleavy as their financial advisors. In its schedules of assets and liabilities filed with the Court, Ampex Corp. disclosed total assets of US$9,770,089 and total debts of US$82,488,054. The Debtors have nine foreign affiliates that are incorporated in seven countries -- one each in the United Kingdom, Japan, Belgium, Colombia and Brazil and two each in Germany and Mexico. With the exception of the affiliates located in the U.K. and Japan, none of the other foreign affiliates conduct meaningful business activity. As of March 30, 2008, none of the foreign affiliates have commenced insolvency proceedings. APP ARBEIT: Claims Registration Period Ends August 5 ---------------------------------------------------- Creditors of APP Arbeit GmbH & Co KG have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Dr. Frank Kebekus. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 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 Aachen Meeting Hall K 5 Third Floor Alter Posthof 1 52062 Aachen 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. Frank Kebekus Frankenstrasse 14-16 52070 Aachen Germany Tel: 0241/5591310 Fax: 0241/55913120 The District Court of Aachen opened bankruptcy proceedings against APP Arbeit GmbH & Co KG on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: APP Arbeit GmbH & Co KG Theaterstrasse 7 52062 Aachen Germany ATG GMBH: Claims Registration Period Ends August 5 -------------------------------------------------- Creditors of ATG GmbH have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Hubertus Bange. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 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 Muenster Meeting Hall 13 B Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hubertus Bange Kardinal-von-Galen-Str. 5 48268 Greven Germany Tel: 02571/865-0 Fax: +4925718645 The District Court of Muenster opened bankruptcy proceedings against ATG GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ATG GmbH Gildestrasse 43 49479 Ibbenbuere Germany BELEUCHTUNGSHAUS EMIL: Claims Registration Period Ends Aug. 6 ------------------------------------------------------------- Creditors of Beleuchtungshaus Emil Stemmler GmbH have until Aug. 6, 2008, to register their claims with court-appointed insolvency manager Dr. J. Blersch. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wiesbaden E 36 A Third Floor Building E Moritzstrasse 5 Hinterhaus 65185 Wiesbaden 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. J. Blersch C/o Blersch/Goetsch/Partner Insolvenzverwaltungen Taunusstrasse 7a 65183 Wiesbaden Germany Tel: 0611 / 180 89-100 Fax: 0611 / 180 89 -189 E-mail: mail@bgp-insol.de The District Court of Wiesbaden opened bankruptcy proceedings against Beleuchtungshaus Emil Stemmler GmbH on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Beleuchtungshaus Emil Stemmler GmbH Marktplatz 1 65183 Wiesbaden Germany Attn: Juergen Demele, Manager Dr.-Schmitt-Str. 3 55452 Guldental Germany BODYLIZER GMBH: Claims Registration Period Ends August 5 -------------------------------------------------------- Creditors of bodylizer GmbH have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Michael Hawelka. The District Court of Charlottenburg will verify the claims set out in the insolvency manager's report at 9:45 a.m. on Oct. 7, 2008, at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Hawelka Friedrichstr. 204 10117 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against bodylizer GmbH on May 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: bodylizer GmbH Franzoesische Str. 13 10117 Berlin Germany CONVEX VERWALTUNGS: Claims Registration Period Ends August 6 ------------------------------------------------------------- Creditors of Convex Verwaltungs GmbH have until Aug. 6, 2008, to register their claims with court-appointed insolvency manager Steuerberater Christian Jensen. Creditors and other interested parties are encouraged to attend the meeting at 9:47 a.m. on Aug. 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Flensburg Hall A 220 Suedergraben 22 Flensburg 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: Steuerberater Christian Jensen Flensburger Strasse 5-7 25917 Leck Germany The District Court of Flensburg opened bankruptcy proceedings against Convex Verwaltungs GmbH on May 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Convex Verwaltungs GmbH Attn: Reinhardt Schmidt Am Bahnhof 18 24983 Handewitt Germany DIEMAK MOBIL: Claims Registration Period Ends August 4 ------------------------------------------------------ Creditors of DIEMAK mobil Dienstleistungsmakler GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Henry Girbig. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henry Girbig Koenigstrasse 9 01097 Dresden Germany Web site: www.handschumacher.de The District Court of Dresden opened bankruptcy proceedings against DIEMAK mobil Dienstleistungsmakler GmbH on June 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DIEMAK mobil Dienstleistungsmakler GmbH Schnorrstr. 70 01069 Dresden Germany Attn: Ingo Voigt, Manager Richard-Wagner-Str. 7 01219 Dresden Germany EINKAUFS- UND HANDELS: Claims Registration Period Ends August 5 --------------------------------------------------------------- Creditors of Einkaufs- und Handels Gesellschaft mbH Holzfachhandel have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Andreas Schenk. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 16, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 24 Fuerstenstrasse 21-23 09130 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Schenk Schumannstrasse 9 08056 Zwickau Germany Tel: (0375) 211 857 0 Fax: (0375) 211 857 28 E-mail: zwickau@scharl-schenk-scheuffler.de The District Court of Chemnitz opened bankruptcy proceedings against Einkaufs- und Handels Gesellschaft mbH Holzfachhandel on June 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Einkaufs- und Handels Gesellschaft mbH Holzfachhandel Attn: M. Lauckner, Manager St. Strobel Beethovenstr. 1/Industriegebiet West 08209 Rebesgruen Germany ELEKTRO FRISCHHOLZ: Claims Registration Period Ends August 5 ------------------------------------------------------------ Creditors of Elektro Frischholz GmbH have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Alexander Pfadenhauer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Nuremberg Meeting Hall 152/I Flaschenhofstr. 35 Nuremberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Alexander Pfadenhauer Sperberstr. 47, 90461 Nuremberg Germany The District Court of Nuremberg opened bankruptcy proceedings against Elektro Frischholz GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Elektro Frischholz GmbH Attn: Charlotte Stadelmann, Manager Schweppermannstr. 55 90408 Nuremberg Germany H&H MASSIVHAUS: Claims Registration Period Ends August 5 -------------------------------------------------------- Creditors of h&h Massivhaus GmbH have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Dr. Martin Dreschers. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 16, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Martin Dreschers Heideparkstrasse 4 01099 Dresden Germany E-mail: http://www.insolnet.de The District Court of Dresden opened bankruptcy proceedings against h&h Massivhaus GmbH on June 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: h&h Massivhaus GmbH Tiergartenstr. 54 01219 Dresden Germany Attn: Werner Kuhnert, Manager Geboren 1953 Rasmussenstr. 7 09405 Zschopau Germany IMITZ TRADING: Claims Registration Period Ends August 4 ------------------------------------------------------- Creditors of IMITZ Trading GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Marc Schmidt-Thieme. The District Court of Charlottenburg will verify the claims set out in the insolvency manager's report at 10:40 a.m. on Sept. 26, 2008, at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Marc Schmidt-Thieme Fasanenstr. 71 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against IMITZ Trading GmbH on April 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IMITZ Trading GmbH Gneisenaustr. 59 10961 Berlin Germany MEIGO AGRARPRODUKTIONS: Claims Registration Period Ends Aug. 5 -------------------------------------------------------------- Creditors of MEIGO Agrarproduktions GmbH have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Peter Scholl. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 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 Gera Room 317 Rudolf-Diener-Str. 1 Gera Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Scholl Grosse Allee 1a 07407 Rudolstadt Germany The District Court of Gera opened bankruptcy proceedings against MEIGO Agrarproduktions GmbH on June 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MEIGO Agrarproduktions GmbH Meilitz 1 07570 Wuenschendorf Germany MG-MEDIA GMBH: Claims Registration Period Ends August 5 ------------------------------------------------------- Creditors of MG-Media GmbH have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Dr. Stephan Schlegel. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Stephan Schlegel Hauptstrasse 83 65760 Eschborn Germany Tel: 06196/779060 Fax: 06196/7790620 The District Court of Frankfurt/Main opened bankruptcy proceedings against MG-Media GmbH on June 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MG-Media GmbH Attn: Frank Meier, Manager The Event Factory Rudolf Diesel Strasse 1 65719 Hofheim am Taunus Germany PRO SENIOREN-WELT: Claims Registration Period Ends August 4 ----------------------------------------------------------- Creditors of pro Senioren-Welt GmbH have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Bernd Ache. Creditors and other interested parties are encouraged to attend the meeting at 8:10 a.m. on Sept. 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 Wetzlar Meeting Hall 201 Building B Second Stock Wetherstr. 1 35578 Wetzlar 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: Bernd Ache GF: 44 Karl-Kellner-Ring 23 35576 Wetzlar Germany Tel: 06441/94240 Fax: 06441/42843 E-mail: info@kanzlei-unuetzer.de The District Court of Wetzlar opened bankruptcy proceedings against pro Senioren-Welt GmbH on June 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: pro Senioren-Welt GmbH Attn: Stefan Pecsics, Manager Wetzlarer Strasse 19 35633 Lahnau-Dorlar Germany PROSIEBENSAT.1 MEDIA: Klaus-Peter Schulz Joins Executive Board -------------------------------------------------------------- Klaus-Peter Schulz, will join the Executive Board of ProSiebenSat.1 Media AG starting Sept. 1, 2008, as Head of Sales & Marketing. He will be responsible for sales, marketing and research in German-speaking countries, as well as for the coordination of international sales activities. Mr. Schulz is succeeding Mr. Peter Christmann, who left the company at the end of June 2008. Guillaume de Posch, CEO of ProSiebenSat.1 Group, said, "I'm very pleased that we were able to have Klaus-Peter Schulz join ProSiebenSat.1. Welcome back! His in-depth knowledge of the media business and his experience in the customer, media, and agency segments are sure to lend the Group new momentum." On his appointment as Board member in charge of Sales & Marketing, Mr. Schulz said, "The digital media world is evolving faster than any other industry sector. That makes my job as Board member in charge of Sales & Marketing at ProSiebenSat.1 one of the most exciting and most challenging positions. ProSiebenSat.1 has everything thats needed to successfully combine the on-air and online realms, and to introduce the audiovisual content of strong brands on all platforms. What we need to do now is position this asset more decisively on the market." About ProsiebenSat.1 Headquartered in Munich, Germany, ProsiebenSat.1 Media AG -- http://en.prosiebensat1.com/-- broadcasts and produces TV programs through 24 commercial TV stations, 24 premium Pay TV channels and 22 radio network. In June 2007, the ProSiebenSat.1 Group acquired SBS Broadcasting Group. The company employs around 6,000 Europe-wide. * * * ProsiebenSat.1 Media AG continues to carry Moody's Investors Service's Ba1 senior unsecured and corporate family ratings. TETEKERA GMBH: Claims Registration Period Ends August 5 ------------------------------------------------------- Creditors of Tetekera GmbH have until Aug. 5, 2008, to register their claims with court-appointed insolvency manager Olaf Spiekermann. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Aug. 19, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Olaf Spiekermann Alfred-Hess-Str. 40 99094 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Tetekera GmbH on June 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tetekera GmbH Attn: Torsten Thelemann, Manager Gustav Kirchhoff Str. 5 98693 Ilmenau Germany TRUCKTEC SPEDITIONS: Claims Registration Period Ends August 4 ------------------------------------------------------------- Creditors of TRUCKTEC Speditions GmbH have until Aug.4, 2008, to register their claims with court-appointed insolvency manager Henning Jung. Creditors and other interested parties are encouraged to attend the meeting at 11:25 a.m. on Sept. 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henning Jung Odeonstr. 2 30159 Hannover Germany Tel: 0511 353960-60 Fax: 0511 353960-69 The District Court of Hannover opened bankruptcy proceedings against TRUCKTEC Speditions GmbH on June 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TRUCKTEC Speditions GmbH Attn: Heinrich Luchtmann, Manager Im Hage 15 30966 Hemmingen Germany VINO E VITA: Claims Registration Period Ends August 4 ----------------------------------------------------- Creditors of VINO e VITA GmbH & Co. KG have until Aug. 4, 2008, to register their claims with court-appointed insolvency manager Oliver Schulte. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 3, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Detmold Meeting Hall 12 Ground Floor Gerichtsstr. 6 32756 Detmold 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: Oliver Schulte Moltkestr. 12 32756 Detmold Germany The District Court of Detmold opened bankruptcy proceedings against VINO e VITA GmbH & Co. KG on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: VINO e VITA GmbH & Co. KG Attn: Manfred Goldkamp, Manager Hoffmannstr. 8 32105 Bad Salzuflen Germany WESTFALENSTOLZ VERTRIEB: Claims Registration Period Ends Aug. 5 --------------------------------------------------------------- Creditors of WESTFALENSTOLZ Vertrieb- und Verwaltungs- GmbH have until Aug. 5, 2008, to register their claims with court- appointed insolvency manager Dirk Kammertoens. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Aug. 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 Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dirk Kammertoens Otto-Brenner-Strasse 186 33604 Bielefeld Germany The District Court of Bielefeld opened bankruptcy proceedings against WESTFALENSTOLZ Vertrieb- und Verwaltungs- GmbH on June 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WESTFALENSTOLZ Vertrieb- und Verwaltungs- GmbH Attn: Hans-Jurgen Schoeningh, Manager Kinzigweg 18 33689 Bielefeld Germany ============= H U N G A R Y ============= * Corporate Insolvencies in Hungary Up 13%, Coface Report Says -------------------------------------------------------------- The number of corporate insolvencies in Hungary went up by 13% in the first six months of 2008 compared to the same period of last year, real deal says, citing a Coface report summarized by Gazdasagi Radio. Coface figures, real deal relates, show that of the total insolvency cases recorded in the first half of 2008 in the country, 5,601 were winding-ups, 5,009 were liquidation and 10 were court-monitored bankruptcy reorganizations. The report indicated businesses in the food processing and steel sector are among the most likely to go bust, real deal adds. ============= I R E L A N D ============= SANDISK CORP Severe 2Q Operating Losses Cue S&P to Cut Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured ratings on Milpitas, California-based SanDisk Corp. to 'B+' from 'BB-', based on the unexpected severity of second-quarter operating losses and the company's expectation that industry conditions will worsen in the near term. Standard & Poor's also revised the outlook to negative from stable. The ratings reflect significant business risk stemming from a narrow business profile, price volatility in the NAND flash memory industry, and the substantial investment required to maintain technology and cost leadership. Substantial liquidity, stable royalty income streams, and the risk and cost-sharing benefits of the company's manufacturing joint ventures with Toshiba Corp. offset company business risks. SanDisk's market for flash-based memory cards and other consumer-oriented applications continues to expand rapidly, although growth decelerated in the June quarter. Despite the growth, excess supply of flash memory has caused annual megabyte price declines of about 60% for the last three years. The outlook on SanDisk is negative. While adequate liquidity and a good market position provide ratings support, the company's excess inventories and weakened demand will sharply depress earnings and cash flow for the near term. "If the company cannot equalize demand and supply, it is likely to continue to operate with negative discretionary cash flow," said Standard & Poor's credit analyst Lucy Patricola. If liquidity is depleted to below US$2 billion over the next two to three quarters, we could lower the rating. "Once the company's operating trends return to historical averages, and leverage statistics recover to levels that are commensurate with the rating, we could revise the outlook to stable," she continued. =================== K A Z A K H S T A N =================== AGRO SERVICE: Creditors Must File Claims by September 9 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP AGRO SERVICE insolvent on June 13, 2008. Creditors have until Sept. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Makataev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 8 (7272) 79-86-76 8 701 795 30-25 AKBULAK OJSC: Claims Deadline Slated for September 3 ---------------------------------------------------- OJSC Akbulak has declared insolvency. Creditors have until Sept. 3, 2008, to submit written proofs of claims to: OJSC Akbulak Akbulak Almaty Kazakhstan BAZALT ROVING: Claims Filing Period Ends September 9 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared CJSC Bazalt Roving insolvent on June 13, 2008. Creditors have until Sept. 9, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Makataev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 8 (7272) 79-86-76 8 701 795 30-25 BTA BANK: Hikes Stake in Russia's BTA Bank LLC to 52.84% -------------------------------------------------------- Kazakhstan-based BTA Bank has increased its stake in the registered capital of Russia's BTA Bank Limited Liability Company (formerly known as Slavinvestbank) to 52.84% from 15.6%. Thus, BTA Bank is now a major shareholder of the Russian bank. As a result, BTA Bank LLC, Russia, has turned into a subsidiary of Kazakhstan's BTA Bank. This acquisition for BTA is a next step in the ongoing consolidation of assets amid toughening competition in the banking and financial markets of Kazakhstan and the CIS. BTA Development Strategy until 2015 provides for bank's top positions in the CIS and at least 2% in the banking market of Russia. About BTA Bank Headquartered in Almaty, Kazakhstan, JSC BTA Bank -- http://bta.kz/en/-- is among biggest banks and leader in creation of banking network in CIS. BTA operating in the CIS and far-abroad countries is expanding into the CIS countries. Activities of its strategic bank partners cover Ukraine, 4 regions in Russia, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey. BTA runs its representative offices in Russia, Ukraine, China and the United Arab Emirates. In Kazakhstan, BTA's network consists of 22 branches and 256 cash settlement units. * * * Bank TuranAlem carries Long-term foreign currency IDR at BB+ from Fitch Ratings, which said the Outlook was Stable. The company also carries Ba1 Foreign Currency Subordinate Debt Ratings, Ba2 Foreign Currency Junior Subordinate Debt Rating and D- Bank Financial Strength Rating from Moody's Investor Service. CHASP RSU: Creditors' Claims Due on September 11 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared JSC Chasp Rsu insolvent. Creditors have until Sept. 11, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Zelenaya Str. 40 Baiserke Ilyisky Almaty Kazakhstan Tel: 8 701 668 13-30 8 777 215 94-40 JULDYZ OJSC: Claims Registration Ends September 3 ------------------------------------------------- OJSC Juldyz has declared insolvency. Creditors have until Sept. 3, 2008, to submit written proofs of claims to: OJSC Juldyz Seifullin Str. 174 Almaty Kazakhstan INTERNATIONAL TRANSPORT: Creditors Must File Claims by Sept. 3 -------------------------------------------------------------- LLP International Transport Company has declared insolvency. Creditors have until Sept. 3, 2008, to submit written proofs of claims to: LLP International Transport Company Micro District 4, 7-49 Aksai Burlinsky West Kazakhstan Kazakhstan KUAN-ENERGO LLP: Claims Deadline Slated for September 9 ------------------------------------------------------- LLP Kuan-Energo has declared insolvency. Creditors have until Sept. 9, 2008, to submit written proofs of claims to: LLP Kuan-Energo Abai Str. 15 Sholak-Korgan Suzaksky South Kazakhstan Kazakhstan MASTER SET: Claims Filing Period Ends September 11 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Master Set insolvent. Creditors have until Sept. 11, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Zelenaya Str. 40 Baiserke Ilyisky Almaty Kazakhstan Tel: 8 701 668 13-30 8 777 215 94-40 =================== K Y R G Y Z S T A N =================== VIP COMPANY: Creditors Must File Proofs of Claim by September 2 --------------------------------------------------------------- LLC VIP Company has declared insolvency. Creditors have until Sept. 2, 2008, to submit written proofs of claim to: LLC VIP Company Kosmicheskaya Str. 6-1 Bishkek Kyrgyzstan =================== L U X E M B O U R G =================== EVRAZ GROUP: Wins Development License for Mezhegey Coal Deposit --------------------------------------------------------------- Evraz Group S.A. has won the tender to develop the Mezhegey coal deposit in the Republic of Tyva, Russia. Evraz has offered US$725 million in the tender held by the Russian State Mineral Resources Agency. The Mezhegey coal deposit is located 800km east of the city of Novokuznetsk, in the central part of the Republic of Tyva, East Siberia. It is a world class coking coal deposit with estimated category A+B+C1 coal reserves and resources of 213.5 million tons of hard coking coal (grade Zh under Russian classification). The development of the Mezhegey deposit is expected to commence in 2010 with the first coal to be mined in 2014. Evraz plans that the target production level of 10 million tons of raw coal, i.e. approximately 8.4 million tonnes of coal concentrate, will be reached by 2016. Based on Evraz's experience in developing coal projects in Siberia, the Company estimates the project's development cost at approximately US$1.5 billion. "The purchase of the license to develop the Mezhegey coal deposit is in line with our strategy to expand Evraz's mining platform," Alexander Frolov, Evraz's Chairman and CEO, said. "The Company will secure additional supply of high quality coking coal to its existing steel making facilities as well as deliver extra volumes of the coal to meet the growing demand from the market." About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * Evraz Group S.A. continues to carry Ba2 corporate family rating, Ba2 rating for Senior Notes due 2009 and Ba3 rating for Senior Notes due 2015 from Moody's Investors Service, which placed them on review in March 2008 for possible downgrade. The company also carries BB- long-term corporate credit and senior unsecured debt ratings from Standard & Poor's Ratings Services, with positive outlook. The ratings were affirmed in March 2008. Evraz carries BB long-term Issuer Default and senior unsecured ratings and B Short-term Issuer Default rating from Fitch Ratings, with stable outlook. The ratings were affirmed in March 2008. ===================== N E T H E R L A N D S ===================== E-MAC DE 2005-I: S&P Drops Ratings on Class D/E Notes to BB/B ------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its credit ratings on the class C, D, and E notes issued by E-MAC DE 2005-I B.V. and removed them from CreditWatch with negative implications where they were placed on April 30. S&P also placed on CreditWatch negative its ratings on the class B notes. The ratings on the class A notes have been affirmed. The rating actions follow a full credit and cash flow analysis of the most recent loan-level information that, in particular, incorporates both an assessed increase in any replacement servicing fees that S&P assumes and a consideration of the pool performance. This analysis showed that the credit enhancement available for the class C, D, and E notes was insufficient to maintain the current ratings. The ratings on the class B notes have been placed on CreditWatch negative because of the uncertainty about future performance and S&P expects this to be solved after the next payment date in August. The rating on Residential Capital, LLC (CCC+/Negative/C)--the parent company of the originator, GMAC-RFC Bank GmbH--has recently decreased. If the originator, which also provides certain servicing activities, becomes insolvent, there is uncertainty about the cost that would be charged by the subservicer or by any replacement servicer for servicing the type of mortgage product backing this pool. Therefore, S&P has increased the replacement servicing fees included in the cash flow model to reflect this heightened risk. In addition, the pool performance continues to deteriorate with high and increasing delinquencies. Performance data as of May 2008 shows that loans in arrears for more than 90 days have increased to 6.3% from 4.9% in February 2008. At the same time, total delinquencies have increased to 12.9% in May from 11.6% in February. E-MAC DE 2005-I B.V.: -- EUR301.5 Million Mortgage-Backed Floating-Rate Notes Ratings Lowered And Removed From CreditWatch Negative: Class Rating To From ----- ---- ------------- C BBB+ A/Watch Neg D BB BBB/Watch Neg E B BB+/Watch Neg Rating Placed On CreditWatch Negative: B AA/Watch Neg AA Rating Affirmed: A AAA X5 RETAIL: To File Arbitration Claims vs Anti-Monopoly Service -------------------------------------------------------------- X5 Retail Group N.V. will apply to the Arbitration Court of the City of Moscow to invalidate the decision by the Federal Anti- Monopoly Service to issue an Order in conjunction with its approval of the acquisition of the Karusel hypermarket chain and to declare the FAS' actions illegitimate as they are in breach of the anti-trust legislation. The approval by FAS of the acquisition of Karusel hypermarket chain by X5 contained a number of requirements in a form of an Order with regard to the conduct by X5 of its business in St. Petersburg, including the Company's dealings with suppliers. In accordance with the Order and within the required time frame, the Company has developed and submitted to FAS for approval rules relating to its dealings with suppliers in St. Petersburg. However, having undertaken a thorough analysis of the situation, the Company has concluded that FAS' decision to issue the Order has no legal grounds and contradicts with the applicable Russian legislation. The requirements stipulated in the Order restrain competition as they limit X5's business activities in St. Petersburg by setting a confined list of services that can be offered by the Company, limit the Company's ability to choose counter-parties and may potentially put the Company in a wittingly unequal position versus other companies working in the St. Petersburg food retail market. Moreover, as the Order contains some unspecified requirements that FAS plans to define later as well as requirements, fulfillment of which depends on third parties, the Order is not practicable and creates basis for unjustified accusation of the Company for not obeying the Order. X5 will apply to the Arbitration Court of the City of Moscow with a request to invalidate the Order issued by the FAS and to declare the FAS' actions illegitimate as they are in breach of the anti-trust legislation. About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. (LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm for the group of companies that operate retail grocery stores. The main activity of the company is the development and operation of grocery retail stores. The company operated Pyaterochka and Perekrestok retail chains in Russia, including Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Ekaterinburg and Kiev, Ukraine. * * * X5 Retail Group N.V. continues to carry a B1 Corporate Family Rating from Moody's Investors Service with positive outlook. X5 Retail and its subsidiaries also carries a 'BB-' long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. =========== R U S S I A =========== AMRITA LLC: Creditors Must File Claims by August 28 --------------------------------------------------- Creditors of LLC Amrita have until Aug. 28, 2008, to submit proofs of claim to: A. Reznikova Temporary Insolvency Manager Apt. 119 Dzerzhinskogo Str. 43 445042 Tolyatti Russia The Arbitration Court of Samara commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A55-4074/2008. The Court is located at: The Arbitration Court of Samara Avrory Str. 148 443045 Samara Russia The Debtor can be reached at: LLC Amrita Khvorostyanka Samara Russia ANZOR-MOTORS: Creditors Must File Claims by August 21 ----------------------------------------------------- Creditors of CJSC Anzor-Motors have until Aug. 21, 2008, to submit proofs of claim to: N. Neustroeva Insolvency Manager Office 411 Odesskaya Str. 9 625023 Tyumen Russia The Arbitration Court of Yamalo-Nenetskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A81-4707/2007. The Court is located at: The Arbitration Court of Yamalo-Nenetskiy Chubynina Str. 37A Salekhard Yamalo-Nenetskiy Russia The Debtor can be reached at: CJSC Anzor-Motors Yamalo-Nenetskiy Russia BROILER LLC: Court Names A. Safronov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Samara appointed A. Safronov as Insolvency Manager for LLC Broiler (TIN 6313039550). He can be reached at: A. Safronov Buyanova Str. 62-3 443041 Samara Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-14181/2007. The Court is located at: The Arbitration Court of Samara Avrory Str. 148 443045 Samara Russia The Debtor can be reached at: A. Safronov Buyanova Str. 62-3 443041 Samara Russia CLOTHES OJSC: Court Names A. Baskakov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Bashkortostan appointed A. Baskakov as Insolvency Manager for OJSC Factory Clothes. He can be reached at: A. Baskakov Ak. Zhukova Str. 27 Balakovo 413853 Saratov Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-9781/06-G-MOG. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: A. Baskakov Ak. Zhukova Str. 27 Balakovo 413853 Saratov Russia DAIRY OJSC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------- The Arbitration Court of Kabardino Balkariya commenced bankruptcy supervision procedure on OJSC Dairy. The case is docketed under Case No. A20-969/2008. The Temporary Insolvency Manager is: E. Rebgun Komsomolskaya Str. 49 Novopavlovsk Kabardino Balkariya Russia The Debtor can be reached at: OJSC Dairy Nalchik Kabardino Balkariya Russia EVRAZ GROUP: Wins Development License for Mezhegey Coal Deposit --------------------------------------------------------------- Evraz Group S.A. has won the tender to develop the Mezhegey coal deposit in the Republic of Tyva, Russia. Evraz offered US$725 million in the tender held by the Russian State Mineral Resources Agency. The Mezhegey coal deposit is located 800km east of the city of Novokuznetsk, in the central part of the Republic of Tyva, East Siberia. It is a world class coking coal deposit with estimated category A+B+C1 coal reserves and resources of 213.5 million tons of hard coking coal (grade Zh under Russian classification). The development of the Mezhegey deposit is expected to commence in 2010 with the first coal to be mined in 2014. Evraz plans that the target production level of 10 million tons of raw coal, i.e. approximately 8.4 million tonnes of coal concentrate, will be reached by 2016. Based on Evraz's experience in developing coal projects in Siberia, the Company estimates the project's development cost at approximately US$1.5 billion. "The purchase of the license to develop the Mezhegey coal deposit is in line with our strategy to expand Evraz's mining platform," Alexander Frolov, Evraz's Chairman and CEO, said. "The Company will secure additional supply of high quality coking coal to its existing steel making facilities as well as deliver extra volumes of the coal to meet the growing demand from the market." About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * Evraz Group S.A. continues to carry Ba2 corporate family rating, Ba2 rating for Senior Notes due 2009 and Ba3 rating for Senior Notes due 2015 from Moody's Investors Service, which placed them on review in March 2008 for possible downgrade. The company also carries BB- long-term corporate credit and senior unsecured debt ratings from Standard & Poor's Ratings Services, with positive outlook. The ratings were affirmed in March 2008. Evraz carries BB long-term Issuer Default and senior unsecured ratings and B Short-term Issuer Default rating from Fitch Ratings, with stable outlook. The ratings were affirmed in March 2008. GAMMA LLC: Moscow Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Moscow commenced bankruptcy supervision procedure on LLC Gamma. The case is docketed under Case No. A41-441/08. The Temporary Insolvency Manager is: P. Plyukhin K. Marksa Str. 68a Klin 141600 Moscow Russia The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: P. Plyukhin K. Marksa Str. 68a Klin 141600 Moscow Russia GAS COMBUSTIBLE: Creditors Must File Claims by August 21 -------------------------------------------------------- Creditors of LLC Gas Combustible Materials (TIN 7303020055) have until Aug. 21, 2008, to submit proofs of claim to: R. Shishkin Insolvency Manager Vodnikov/Krupskoy Str. 20/3 44309 Samara Russia The Arbitration Court of Ulyanovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A72-7065/07-20/20-b. The Court is located at: The Arbitration Court of Ulyanovsk Zheleznodorozhnaya Str. 14 432063 Ulyanovsk Russia The Debtor can be reached at: LLC Gas Combustible Materials Efremova Str. 6 432045 Ulyanovsk Russia OUR HOUSE-7: Bashkortostan Bankruptcy Hearing Set November 26 ------------------------------------------------------------- The Arbitration Court of Bashkortostan will convene on Nov. 26, 2008, to hear the bankruptcy supervision procedure on LLC Our House-7. The case is docketed under Case No. A07-4986/ 08-G-ShAB. The Temporary Insolvency Manager is: G. Kozub Apt. 132 Avtostroiteley Str. 11 445031 Tolyatti Russia The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Our House-7 Komsomolskaya Str. 21B Oktyabrskiy 452600 Bashkortostan Russia NIZHNEKOLYMSKOE CJSC: Court Starts Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Sakha-Yakutiya commenced bankruptcy supervision procedure on CJSC Nizhnekolymskoe. The case is docketed under Case No. A58-1538/08-0101. The Temporary Insolvency Manager is: L. Baisheva Post User Box 166 Delivery Department GVP Yakutsk 677999 Sakha-Yakutiya Russia The Court is located at: The Arbitration Court of Sakha-Yakutiya Kurashova Str. 28 677000 Sakha-Yakutiya Russia The Debtor can be reached at: CJSC Nizhnekolymskoe Komarova Str. 5 Cherskiy Sakha�Yakutiya Russia NOVATEK OAO: Extraordinary General Meeting Set October 2 -------------------------------------------------------- OAO Novatek's Board of Directors has scheduled an Extraordinary General Meeting of Shareholders and approved these agenda: 1. early termination of authorities of the Board of Directors of OAO Novatek; 2. election of members of the Board of Directors of OAO Novatek; and 3. dividend payment on the Company's ordinary shares for the first six months of 2008. The Company's EGM will take place on the Oct. 2, 2008. Shareholders of record at close of business on July 24, 2008, will be entitled to participate in the Company's EGM. All relevant materials pertaining to the EGM will be made available to shareholders of record through the appropriate notification channels. About Novatek Headquartered in Tarko-Sale, Russia, OAO Novatek -- http://www.novatek.ru/ -- engages in the exploration, production and processing of natural gas and liquid hydrocarbons. The company's upstream activities are concentrated in the prolific Yamal-Nenets Region in Western Siberia. * * * As reported in the TCR-Europe on July 16, 2008, Standard & Poor's Ratings Services has raised its long-term corporate credit rating on OAO Novatek, Russia's largest independent natural gas producer, to 'BB+' from 'BB'. The outlook is stable. OAO Novatek currently carries Ba2 Corporate Family rating from Moody's Investors Service, which said the outlook is stable. Ratings apply to date. SAMARA-GRAIN-RESOURCE: Names A. Kalandarov as Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Samara appointed A. Kalandarov as Insolvency Manager for OJSC Samara-Grain-Resource. He can be reached at: A. Kalandarov Post User Box 511 Internatsionalnaya Str. 25 Syzran 446013 Samara Russia The Court is located at: The Arbitration Court of Samara Avrory Str. 148 443045 Samara Russia The Debtor can be reached at: OJSC Samara-Grain-Resource Novo-Sadovaya Str. 3 Samara Russia SISTEMA JSFC: Detsky Mir Unit Gains US$20 Million Credit Line ------------------------------------------------------------- OJSC Detsky Mir-Centr, a unit of JSFC Sistema, and Deutsche Bank Russia have signed an agreement for a US$20 million trade finance line. "We are glad to broaden our cooperation with Sistema, which has proven itself to be a reliable and professional partner. I'm certain that Deutsche Bank, a leading global institution in trade finance, will provide quality trade finance services for OJSC Detsky Mir," Joerg Bongartz, Chairman of the Board of Deutsche Bank Russia, said. "The contract with Deutsche Bank is a part of the large-scale program for the replacement of direct crediting with instruments of trade financing, which Detsky Mir started to use actively back in 2007. This program makes the financing of operating capital more efficient and cost-effective and ensures more accurate control over supplies," said Detsky Mir - Centr General Director Maxim Entyakov. About Sistema Headquartered in Moscow, Russia, Sistema JSFC -- http://www.sistema.com/-- develops and manages market- leading businesses in selected service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media. * * * Sistema JSFC currently carries a Ba3 long-term corporate family rating and a B2 senior unsecured debt rating from Moody's, with positive outlook. The company also carries Standard & Poor's BB- long-term foreign and local issuer credit ratings. S&P said the outlook is negative. Sistema JSFC carries BB- Issuer Default rating from Fitch, which said the outlook is stable. STAROBEZGINSKOE CJSC: Creditors Must File Claims by August 21 ------------------------------------------------------------- Creditors of CJSC Starobezginskoe have until Aug. 21, 2008, to submit proofs of claim to: V. Petrochenko Insolvency Manager Office 509 B. Khmelnitskogo Pr. 133zh Belgorod Russia The Arbitration Court of Belgorod commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A08-173/08-11-14B. The Court is located at: The Arbitration Court of Belgorod Narodnyj Avenue 135 308600 Belgorod Russia The Debtor can be reached at: CJSC Starobezginskoe Staraya Bezginka Novoolskiy Belgorod Russia STAROMAYNSK-AGRO-SNAB: Creditors Must File Claims by August 28 -------------------------------------------------------------- Creditors of OJSC Staromaynsk-Agro-Snab have until Aug. 28, 2008, to submit proofs of claim to: S. Vorobyev Insolvency Manager Post User Box 67 Cherdakly 433400 Ulyanovsk Russia The Arbitration Court of Ulyanovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A72-6655/07-29/44-B. The Court is located at: The Arbitration Court of Ulyanovsk Zheleznodorozhnaya Str. 14 432063 Ulyanovsk Russia The Debtor can be reached at: OJSC Staromaynsk-Agro-Snab Mira Square 12A Staraya Mayna Staromynskiy Ulyanovsk Russia STROY-BASE LLC: Creditors Must File Claims by August 21 ------------------------------------------------------- Creditors of LLC Stroy-Base (TIN 1831101810) have until Aug. 21, 2008, to submit proofs of claim to: M. Ambrosimov Insolvency Manager 50 Let Pionerii Str. 26 Izhevsk 426033 Udmurtiya Russia The Arbitration Court of Udmurtiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A71-110/2008-G9. The Court is located at: The Arbitration Court of Udmurtiya Lomonosova Str. 5 Izhevsk 426004 Udmurtiya Russia The Debtor can be reached at: LLC Stroy-Base Kirova Str. 113-64 Izhevsk 426008 Udmurtiya Russia UVELSKAYA POULTRY: Court Names A. Fazlyev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Chelyabinsk appointed A. Fazlyev as Insolvency Manager for LLC Uvelskaya Poultry Farm (TIN 7440007024). He can be reached at: A. Fazlyev Insolvency Manager Post User Box 220 Ufa 450080 Bashkortostan Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-2772/2008-20-14. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: A. Fazlyev Insolvency Manager Post User Box 220 Ufa 450080 Bashkortostan Russia X5 RETAIL: To File Arbitration Claims vs Anti-Monopoly Service -------------------------------------------------------------- X5 Retail Group N.V. will apply to the Arbitration Court of the City of Moscow to invalidate the decision by the Federal Anti- Monopoly Service to issue an Order in conjunction with its approval of the acquisition of the Karusel hypermarket chain and to declare the FAS' actions illegitimate as they are in breach of the anti-trust legislation. The approval by FAS of the acquisition of Karusel hypermarket chain by X5 contained a number of requirements in a form of an Order with regard to the conduct by X5 of its business in St. Petersburg, including the Company's dealings with suppliers. In accordance with the Order and within the required time frame, the Company has developed and submitted to FAS for approval rules relating to its dealings with suppliers in St. Petersburg. However, having undertaken a thorough analysis of the situation, the Company has concluded that FAS' decision to issue the Order has no legal grounds and contradicts with the applicable Russian legislation. The requirements stipulated in the Order restrain competition as they limit X5's business activities in St. Petersburg by setting a confined list of services that can be offered by the Company, limit the Company's ability to choose counter-parties and may potentially put the Company in a wittingly unequal position versus other companies working in the St. Petersburg food retail market. Moreover, as the Order contains some unspecified requirements that FAS plans to define later as well as requirements, fulfillment of which depends on third parties, the Order is not practicable and creates basis for unjustified accusation of the Company for not obeying the Order. X5 will apply to the Arbitration Court of the City of Moscow with a request to invalidate the Order issued by the FAS and to declare the FAS' actions illegitimate as they are in breach of the anti-trust legislation. About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. (LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm for the group of companies that operate retail grocery stores. The main activity of the company is the development and operation of grocery retail stores. The company operated Pyaterochka and Perekrestok retail chains in Russia, including Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Ekaterinburg and Kiev, Ukraine. * * * X5 Retail Group N.V. continues to carry a B1 Corporate Family Rating from Moody's Investors Service with positive outlook. X5 Retail and its subsidiaries also carries a 'BB-' long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is stable. =========== S W E D E N =========== FORD MOTOR: Net Loss Slides to US$8.7BB in Quarter Ended June 30 ---------------------------------------------------------------- Ford Motor Co. reported net loss of US$8.7 billion including pre-tax special items totaling US$8 billion for the second quarter ended June 30, 2008. This compares with a net profit of US$750 million in the second quarter of 2007. According to the Wall Street Journal, Ford's loss was its largest quarterly setback ever. In a press statement, Ford said that its second quarter revenue, excluding special items, was US$38.6 billion, down from US$44.2 billion a year ago. Adjusted to exclude Jaguar Land Rover and Aston Martin from 2007 results, revenue would have been down slightly, with lower volume, adverse product mix and lower net pricing, partly offset by favorable exchange. Special items reduced pre-tax results by US$8 billion in the second quarter, reflecting charges associated with asset impairments of US$5.3 billion for Ford North America and US$2.1 billion for Ford Credit. Because of deteriorating economic conditions, demand has declined substantially, particularly in North America. At the same time, fuel and commodity prices have increased substantially. As a result, there has been a significant shift away from large pickup trucks and traditional SUVs in North America. This prompted a review of the company's North American assets and Ford Credit operating lease portfolio, which led to the pre-tax non-cash impairment charges. Automotive gross cash, which includes cash and cash equivalents, net marketable securities, and loaned securities, was US$26.6 billion at June 30, 2008, a decrease of US$2.1 billion from the end of the first quarter. The decrease reflects working capital increases, upfront subvention payments to Ford Credit, and Automotive operating losses, offset partly by the proceeds of the Jaguar Land Rover sale. The Journal indicated that most of Ford's loss was related to US$5.3 billion non-cash charges which reflected the drop in value of plants and equipment for making trucks. Ford, WSJ added, also took an additional write-down of US$2.1 billion to cover unprofitable auto leases made by its credit arm. WSJ said, at July 23 composite trading on the New York Stock Exchange, Ford was down 15% at US$5.11. A selloff in the stock, WSJ stated, showed worries about losses in the next quarters and its impact on Ford's cash levels. About Ford Ford Motor Company (NYSE: F) -� http://www.ford.com/-- a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With about 244,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As disclosed in the Troubled Company Reporter-Europe on July 17, 2008, Moody's Investors Service has maintained its negative outlook on the ratings of Ford Motor Company (Corporate Family Rating B3) and Ford Motor Credit Company (Senior Unsecured Rating B1). As reported in the Troubled Company Reporter-Europe on June 23, 2008, Standard & Poor's Ratings Services said it is placing its corporate credit ratings on the three U.S. automakers, General Motors Corp., Ford Motor Co., and Chrysler LLC, on CreditWatch with negative implications, citing the need to evaluate the financial damage being inflicted by deteriorating U.S. industry conditions -- largely as a result of high gasoline prices. In February 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. ===================== S W I T Z E R L A N D ===================== AFFER DA PITTUR: Creditors Have Until Sept. 27 to File Claims ------------------------------------------------------------- Creditors owed money by LLC Affer da pittur Roland are requested to file their proofs of claim by Sept. 27, 2008, to: Roland Hohenegger Liquidator Plan dils Mats 7419 Scheid Switzerland The company is currently undergoing liquidation in S-chanf. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 12, 2008. ALUVAL JSC: September 7 Set as Deadline to File Proofs of Claim --------------------------------------------------------------- Creditors owed money by JSC AluVal are requested to file their proofs of claim by Sept. 7, 2008, to: Alexander Eichner Walligrundstrasse 27 3930 Visp Switzerland The company is currently undergoing liquidation in Martigny. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on April 22, 2008. BASKRA LLC: Creditors Must File Proofs of Claim by August 31 ------------------------------------------------------------ Creditors owed money by LLC Baskra are requested to file their proofs of claim by Aug. 31, 2008, to: Hans Ruedi P. Wilhelm Bettingerstr. 20 4127 Birsfelden Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 3, 2008. BEAR FACTORY: Deadline to File Proofs of Claim Set Sept. 27 ----------------------------------------------------------- Creditors owed money by LLC Bear Factory Schweiz are requested to file their proofs of claim by Sept. 27, 2008, to: Neustrasse 50 4623 Neuendorf Switzerland The company is currently undergoing liquidation in Neuendorf. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 19, 2008. FRIDBACH IMMOBILIEN: Proofs of Claim Filing Deadline is Aug. 31 --------------------------------------------------------------- Creditors owed money by JSC Fridbach Immobilien are requested to file their proofs of claim by Aug. 31, 2008, to: Olivier Widmer Industriestrasse 22 6302 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 2, 2008. GENERAL MOTORS: Global Sales Down 5% in Second Quarter 2008 ----------------------------------------------------------- Record-setting sales performance in GM's Latin America, Africa and Middle East, Asia Pacific and Europe regions during the second quarter of 2008 helped General Motors Corp. sell more than 2.28 million vehicles globally during the second quarter 2008. GM sales outside of its North America region grew 10% (up 116,000 vehicles). Compared to second quarter 2007, GM's total sales were down 5%, reflecting continuing economic pressures and labor disruptions in the U.S. market, which pushed North America sales down 20% (236,000 vehicles). GM sold 4.54 million vehicles in the first half of 2008, keeping it on track to exceed nine million vehicles for the fourth consecutive year. Sales outside of North America grew by 209,000 vehicles during the same period. On a year-over-year basis, GM total global sales were down 3% for the first six months of 2008. GM Continues Growth in Emerging Markets "Our sales performance around the world shows that we are moving quickly to respond to new market opportunities around the globe and are meeting customer needs with fuel-efficient products that offer compelling design and great value," Jonathan Browning, vice president, global sales, service and marketing, said. "Our global sales performance during the second quarter was fueled by Chevrolet globally and Wuling and GM Daewoo regionally." Chevrolet sales in Asia Pacific, the industry's second-largest region, grew 27% compared with the second quarter a year ago. Chevrolet sales in China (up 33%) and India (up 9%) powered much of this growth. The Chevrolet brand was recently introduced in Vietnam, a new market with strong growth. The Wuling brand continued strong growth in China with sales up 35% in the second quarter compared to the same period a year ago. The Buick LaCrosse ECO-hybrid, made by GM's flagship venture Shanghai General Motors, has just begun sales in China and is expected to be the first mass-produced hybrid sedan in China's mid and above market segment. In the Latin America, Africa and Middle East region � a traditional Chevrolet stronghold � sales grew 18% compared with the second quarter 2007. Chevrolet accounted for nearly 90% of the region's second quarter sales. Chevrolet sales in Europe also contributed to the brand's solid second-quarter results, growing 19%. Chevrolet is seeing strong growth in emerging markets including Eastern Europe. For the first half of the year, in Russia, Opel sales increased by 96% while Saab increased 81% and Chevrolet was up 49%. Also in Russia, Cadillac saw a 51% increase in first half sales and Hummer was up 21% compared with a year ago. Chevrolet sales in North America were down 16.5%; however, GM is adding production capacity to satisfy the strong demand for the all-new Malibu sedan. Sales of Cadillac outside of the United States grew 14% in the second quarter, supported by strong growth of the brand in Latin America, Africa and Middle East (up 28%), Asia Pacific (up 11%) and Europe (up 7%). Cadillac expects a further boost to global sales with the recently announced CTS coupe and restyled SRX crossover vehicle. In North America, Cadillac sales declined about 8,000 vehicles, largely due to pressure in the luxury SUV market. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. * * * As reported in the Troubled Company Reporter on June 27, 2008, Fitch has downgraded the Issuer Default Rating of General Motors Corporation to 'B-' from 'B', and assigned a Rating Outlook Negative. TCR also reported on June 24, 2008, that DBRS has placed the ratings of General Motors and General Motors of Canada Limited Under Review with Negative Implications. At the same time, Standard & Poor's Ratings Services has placed its corporate credit ratings on the three U.S. automakers, General Motors Corp., Ford Motor Co., and Chrysler LLC, on CreditWatch with negative implications. GM and its senior unsecured notes continues to carry S&P's B corporate credit ratings. GUSTAG JSC: Creditors' Proofs of Claim Due by August 31 ------------------------------------------------------- Creditors owed money by SC Gustag are requested to file their proofs of claim by Aug. 31, 2008, to: Ursula Birrer Suhrgasse 9 5037 Muhen Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 19, 2008. LASSERGUT JSC: Aug. 18 Set as Deadline to File Proofs of Claim ------------------------------------------------------------- Creditors owed money by JSC Lassergut are requested to file their proofs of claim by Aug. 18, 2008, to: Dr. Alexander Faber Dufourstrasse 58 8702 Zollikon Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 26, 2008. SEMGROUP LP: Court OKs Use of Cash Collateral, First Day Motions ---------------------------------------------------------------- SemGroup L.P. received approval from the U.S. Bankruptcy Court for the District of Delaware of its essential initial motions requesting relief, including authorization to use cash collateral. The use of cash collateral will enable SemGroup to utilize existing cash and cash generated through normal business operations to meet its obligations post-Chapter 11 filing, including trade payables and wages and benefits. SemGroup's bank lenders have also approved the use of cash collateral. Meanwhile, SemGroup is continuing its negotiations with lenders to secure sufficient debtor-in-possession financing. The company anticipates obtaining a DIP facility within a week of the Chapter 11 filing, which occurred on July 22, 2008. The Court also approved SemGroup's initial request for US$50 million to support its Supplier Protection Program. Under the Program, certain suppliers who contractually commit to continue doing business with SemGroup, on the same terms as before the Chapter 11 filing, will be eligible to receive full payment, as due, for goods and services that were delivered before the filing, but for which the supplier has not yet been paid. In addition, the company received the following approvals to ensure business as usual during its restructuring. The ability for SemGroup to: -- manage its Supply Chain by continuing to pay trade vendors in the ordinary course of business; -- reimburse employees for business-related expenses; and -- pay certain shipping and related obligations without interruption. "The approval of these motions will provide critical relief to our employees, customers and suppliers," Terry Ronan, acting president and CEO of SemGroup, said. "They help ensure that we will be able to operate our business as usual as we undertake our reorganization to maximize value for our creditors." About SemGroup L.P. SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream service company providing the energy industry means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminaling and storing energy. SemGroup serves customers in the United States, Canada, Mexico, Wales, Switzerland and Vietnam. SemGroup L.P. and its debtor affiliates filed for Chapter 11 protection on July 22, 2008 (Bankr. D. Del. Lead Case No.: 08- 11525) These represent the Debtors' restructuring efforts: John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq. at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A. Mayer, Esq. at Weil Gotshal & Manges LLP. Kurtzman Carson Consultants L.L.C. is the Debtors' claims agent. The Debtors' financial advisors are The Blackstone Group L.P. and A.P. Services LLC. Margot B. Schonholtz, Esq. and Scott D. Talmadge, Esq. at Kaye Scholer LLP; and Laurie Selber Silverstein Esq. at Potter Anderson & Corroon LLP represent the Debtors' prepetition lenders. The Debtors' consolidated, unaudited financial conditions as of June 30, 2007, showed US$5,429,038,000 in total assets and US$5,033,214,000 in total debts. In their petition, they showed more than US$1,000,000,000 in estimated total assets and more than US$1,000,000,000 in total debts. SEMGROUP LP: Chapter 11 Filing Cues Moody's to Junk Ratings ----------------------------------------------------------- Moody's Investors Service downgraded SemGroup, L.P.'s Corporate Family Rating to Ca from Caa2, its Probability of Default Rating to D from Caa3, its senior unsecured rating to C (LGD 5; 86%) from Ca (LGD 4; 69%), and its first secured bank facilities to Caa3 (LGD 3; 38%) from B3 (LGD 2; 21%). These actions affect rated cross guaranteed debt at parent SemGroup and its subsidiaries SemCams Holding Company and SemCrude, L.P. The downgrades reflect that on July 22, 2008, SemGroup, L.P. filed, on behalf of itself and most of its subsidiaries, voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The ratings had been under review for downgrade, with the new ratings being Moody's final ratings for the company. These ratings will be withdrawn in the near future due to the bankruptcy. More specifically, the ratings affected include: At parent SemGroup, L.P.: -- Corporate Family rating: Ca -- Probability of Default Rating: D -- Guaranteed senior unsecured notes: C At wholly owned SemCrude, L.P.: -- Senior secured working capital facility: Caa3 -- Senior secured bank revolver: Caa3 -- Senior secured term loan: Caa3 At wholly owned SemCams Holding Company: -- Senior secured working capital facility: Caa3 -- Senior secured bank revolver: Caa3 -- Senior secured term loan: Caa3 Moody's first downgraded SemGroup's ratings on July 17, 2008, after receiving SemGroup's May 2008 consolidating financial statements on July 15, 2007. The ratings were downgraded again on July 21, 2008 to the most recent level. Subsequently, SemGroup filed for Chapter 11 bankruptcy protection. The bankruptcy filing documents brought to light additional hedging liabilities that had not been reflected in SemGroup's liability structure at the time of the July 21, 2008 downgrades, which had assumed a 35% loss for the consolidated liabilities. In light of the new information, the expected consolidated loss was increased to 50%. The large majority of the firm's assets include accounts receivable, inventories, cash margin deposits, and balance sheet cash, with a minority of assets being in the fixed asset category. The fixed assets consist of logistical assets that support the movement of crude oil and refined products from point of production to consuming regions. SemGroup, L.P. is headquartered in Tulsa, Oklahoma. SEMGROUP LP: Bankruptcy Filing Cues Fitch to Put Default Ratings ---------------------------------------------------------------- Fitch Ratings has lowered the Issuer Default Ratings of SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. to 'D' following the bankruptcy petition by SemGroup and most of units on July 22, 2008. These ratings are removed from Rating Watch where they were placed on July 17, 2008. The bank facility and securities ratings of SemGroup and units remain on Rating Watch Negative pending a review of the bankruptcy court petition. Ratings affected by this action are: SemGroup, L.P. SemCrude, L.P. SemCAMS Midstream Co. -- IDR lowered to 'D' from 'B-'. Ratings remaining on Rating Watch Negative SemGroup, L.P. -- Senior unsecured 'B/RR3'. SemCrude L.P. -- Senior secured working capital facility 'BB-/RR1'; -- Senior secured revolving credit facility 'B+/RR1'; -- Senior secured term loan B 'B+/RR1'. SemCAMS Midstream Co. (SemCAMS) -- Senior secured working capital facility 'BB-/RR1'; -- Senior secured revolving credit facility 'B+/RR1'; -- Senior secured term loan B 'B+/RR1'. SemGroup is a privately held midstream energy partnership focused primarily on providing gathering, transportation, processing, and marketing services for crude oil and refined products in the U.S. Midcontinent region and Canada. SemGroup Energy Partners, L.P., a publicly traded Master Limited Partnership affiliate, was not included in the bankruptcy petition and is not rated by Fitch. SEMGROUP LP: Fitch Cuts, Withdraws Ratings After Chap 11 Filing --------------------------------------------------------------- Fitch Ratings has downgraded the ratings of SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all ratings. Ratings affected by this action are: These ratings are being withdrawn: SemGroup, L.P. SemCrude, L.P. SemCAMS Midstream Co. -- Issuer default Rating D Fitch Ratings has downgraded, removed from Rating Watch Negative, and simultaneously withdrawn these: SemGroup, L.P. -- Senior unsecured to 'C' from'B/RR3'. SemCrude L.P. -- Senior secured working capital facility to 'CCC' from 'BB-/RR1'; -- Senior secured revolving credit facility to 'CC' from 'B+/RR1'; -- Senior secured term loan B to 'CC' from 'B+/RR1'. SemCAMS Midstream Co. (SemCAMS) -- Senior secured working capital facility to 'CCC' from 'BB-/RR1'; -- Senior secured revolving credit facility to 'CC' from 'B+/RR1'; -- Senior secured term loan B to 'CC' from 'B+/RR1'. On July 22, 2008, SemGroup, LP and its major domestic wholly owned subsidiaries filed a petition for bankruptcy under Chapter 11 reflecting severe liquidity strains following a spike in crude oil prices. The company is seeking buyers for its assets and does not appear likely to emerge from bankruptcy. Additional news disseminated from the company and media reports highlight large losses in trading positions which have subsequently been closed, sold, or transferred to other parties as well as previously undisclosed exposures to an affiliate of the company's co-founder and former chief executive officer. At this time, Fitch is unable to evaluate, with any precision, estimated recovery levels on the various facilities and instruments in the capital structure. Consequently, no recovery ratings are assigned. To date, the company has not obtained debtor-in-possession financing, restricting ongoing business activities and impairing realizable asset values from potential sales. Bank facility and debt instrument ratings reflect their relative ranking in the capital structure and/or their collateral position. Fitch believes recovery prospects for the SemGroup LP senior unsecured noteholders are extremely poor. A protracted bankruptcy proceeding appears likely. SemGroup is a privately held midstream energy partnership focused primarily on providing gathering, transportation, processing, and marketing services for crude oil and refined products in the U.S. Midcontinent region and Canada. Additionally, through its SemMaterials subsidiary, SemGroup stores, transport and markets asphalt and asphalt products in the United States and Mexico. UBS AG: Attorney General Cuomo Files Securities Fraud Lawsuit ------------------------------------------------------------- Attorney General Andrew M. Cuomo, on July 24, 2008, filed a multi-billion dollar securities fraud lawsuit against UBS Securities LLC and UBS Financial Services, Inc. The lawsuit charges UBS with falsely selling and marketing auction rate securities as safe, highly liquid, and cash-equivalent securities. However, the representations were deceptive as the auction rate securities market came under tremendous strain, leaving the securities with mounting liquidity risks that eventually blocked thousands of customers across New York and the nation from accessing their holdings. Today, UBS customers are holding more than US$25 billion in illiquid, long-term paper as a result of UBS's fraudulent misrepresentations and illegal conduct. Mr. Cuomo's investigation into UBS also discovered that as the securities market started to collapse, the bank's top executives quickly sold-off US$21 million in personal holdings of auction rate securities, but continued to market the securities to its consumers. Internal UBS e-mails subpoenaed by Mr. Cuomo detail top executives' efforts to sell-off personal holdings of auction rate securities. "Not only is UBS guilty of committing a flagrant breach of trust between the bank and its customers, its top executives jumped ship as soon the securities market started to collapse, leaving thousands of customers holding the bag," said Attorney General Mr. Cuomo. "Today we bring the first nationwide lawsuit against UBS, seeking to recover billions of dollars for customers and sending a resounding message to the rest of the industry that this type of deceptive behavior will not be tolerated." UBS misrepresented the risks of auction rate securities to its retail clients and other customers. UBS Financial Advisors marketed auction rate securities to UBS customers as liquid, short-term investments that were similar to money market instruments with interest rates that would reset at periodic auctions based on the bids submitted by market participants. Customers then received account statements that identified auction rate securities as cash equivalent securities. UBS's representations were false; in fact, UBS knew that the auction rate securities market was becoming increasingly strained and that UBS was considering various options with respect to auction rate securities, including letting auctions fail. UBS's fraudulent sales practices proved effective - UBS stood out as a market leader in auction rate securities sales. As of February 2008, UBS had more than 50,000 customer accounts holding auction rate securities, including over 7,000 New York customer accounts. On Feb. 13, 2007, UBS stopped supporting its auctions, and UBS customers learned, much to their shock and dismay, that they could not get access to billions in what they believed was as liquid as cash. In the final months of 2007 and in the early weeks of 2008, UBS's management became increasingly concerned with the unsustainable growth in its holdings of auction rate securities and its need to support auctions in order to avoid auction failures. UBS created an auction rate securities working group specifically to address the floundering market. During this period, UBS also looked for ways to have its financial advisors sell auction rate securities and lessen the mounting pressure of UBS's growing inventory. While many options were discussed, the only one that was repeatedly implemented was to re-double sales efforts to UBS clients. Despite UBS's aggressive marketing of auction rate securities to consumers, the bank's top management continued to demonstrate serious concern over the health of the overall market. Furthermore, at least seven working group members sold a collective US$21 million of their personal auction rate securities after the working group had been formed. Attorney General Cuomo's lawsuit seeks to require UBS to buy back auction rate securities from defrauded customers at par. It also seeks disgorgement of ill-gotten gains, restitution and other damages, and injunctions from further violations of New York's Martin Act. The lawsuit was filed in the Supreme Court of New York, New York County. This case is being handled by Assistant Attorneys General Pamela Lynam Mahon, Ethan Zlotchew, and Christopher Mulvihill, as well as Economist for the Division of Economic Justice Kitty Kay Chan, under the supervision of Investor Protection Bureau Chief David A. Markowitz and Executive Deputy Attorney General for Economic Justice Eric Corngold. About UBS AG UBS AG (NYSE:UBS) -- 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. UBS employs more than 80,000 people around the world. 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 City. ============= U K R A I N E ============= BABILON ELIT: Creditors Must File Claims by August 9 ---------------------------------------------------- Creditors of LLC Babilon Elit Stroy (code EDRPOU 34883566) have until Aug. 9, 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 June 26, 2008. The case is docketed as B 26/126-08. The Debtor can be reached at: LLC Babilon Elit Stroy Apartment 3 Krasnozavodskaya Str. 68 49000 Dnipropetrovsk Ukraine DAKHSERVICE LLC: Creditors Must File Claims by August 9 ------------------------------------------------------- Creditors of LLC Dakhservice (code EDRPOU 32613268) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on June 26, 2008. The case is docketed as 12/4/08. The Debtor can be reached at: LLC Dakhservice 8th of March Str. 24/1 69068 Zaporozhje Ukraine FREIGHT LLC: Creditors Must File Claims by August 9 --------------------------------------------------- Creditors of LLC Building Agricultural Freight (code EDRPOU 34268164) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on June 26, 2008. The case is docketed as 12/5/08. The Debtor can be reached at: LLC Building Agricultural Freight 8th of March Str. 74/7 69068 Zaporozhje Ukraine INDUSTRIAL ELECTROINDUSTRY: Creditors Must File Claims by Aug. 9 ---------------------------------------------------------------- Creditors of LLC Trading Enterprise Industrial Electroindustry (code EDRPOU 33431588) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on May 19, 2008. The case is docketed as 16/123/08. The Debtor can be reached at: LLC Trading Enterprise Industrial Electroindustry Hortitsa Highway Str. 44-A Apartment 108 69124 Zaporozhje Ukraine INDUSTRIAL INVESTMENT: Creditors Must File Claims by August 9 ------------------------------------------------------------- Creditors of LLC Trading Company Building Industrial Investment (code EDRPOU 33446824) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 9, 2008. The case is docketed as 44/32-b. The Debtor can be reached at: LLC Trading Company Building Industrial Investment Oranzhereynaya Str. 3 04112 Kiev Ukraine MINELI-TRADE MARK: Creditors Must File Claims by August 10 ---------------------------------------------------------- Creditors of LLC Mineli-Trade Mark (code EDRPOU 34762193) have until Aug. 10, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 11, 2008. The case is docketed as 49/90-b. The Debtor can be reached at: LLC Mineli-Trade Mark Bulgakov Str. 16 03134 Kiev Ukraine MRIYA LLC: Proofs of Claim Filing Deadline Set August 9 ------------------------------------------------------- Creditors of LLC Mriya (code EDRPOU 30812858) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Chernovcy O. Kobylianska Str. 14 58000 Chernovcy Ukraine The Economic Court of Chernovcy commenced bankruptcy supervision procedure on the company on May 19, 2008. The case is docketed as 9/2/B. The Debtor can be reached at: LLC Mriya Oprisheny Glibochetsky District 60400 Chernovcy Ukraine PODOLSKY SMAK: Proofs of Claim Filing Deadline Set August 10 ------------------------------------------------------------ Creditors of LLC Podolsky Smak (code EDRPOU 22783818) have until Aug. 10, 2008, to submit proofs of claim to: The Economic Court of Hmelnitskij Nezalezhnosti Square 1 29000 Hmelnitskij Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy supervision procedure on the company. The case is docketed as 13/143-B. The Debtor can be reached at: LLC Podolsky Smak Ac. Zabolotny Str. 86/1 29021 Hmelnitskij Ukraine R.T.R. LLC: Creditors Must File Claims by August 9 -------------------------------------------------- Creditors of LLC R.T.R. (code EDRPOU 34663195) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 25, 2008. The case is docketed as 24/163-b. The Debtor can be reached at: LLC R.T.R. Saksagansky Str. 83 01033 Kiev Ukraine UKRAINIAN TRADING: Creditors Must File Claims by August 9 --------------------------------------------------------- Creditors of LLC Trading Company Ukrainian Trading Investment (code EDRPOU 33446793) have until Aug. 9, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 9, 2008. The case is docketed as 44/26-b. The Debtor can be reached at: LLC Trading Company Ukrainian Trading Investment Oranzhereynaya Str. 3 04112 Kiev Ukraine VITA-OKS: Creditors Must File Claims by August 10 ------------------------------------------------- Creditors of LLC Vita-OKS (code EDRPOU 34716791) have until Aug. 10, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on June 11, 2008. The case is docketed as 49/92-b. The Debtor can be reached at: LLC Vita-OKS Siretskaya Str. 37A 04073 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== AIR AFFAIRS: Taps Liquidators from BDO Stoy Hayward --------------------------------------------------- Simon Edward Jex Girling and Graham David Randall of BDO Stoy Hayward LLP were appointed joint liquidators of Air Affairs (U.K.) Ltd. on July 10 for the creditors' voluntary winding-up proceeding. The company can be reached at: Air Affairs (U.K.) Ltd. c/o BDO Stoy Hayward LLP One Victoria Street Bristol BS1 6AA England CHESAPEAKE CORP: UK Unit Agrees on Amended Recovery Plan -------------------------------------------------------- One of Chesapeake Corp.'s U.K. subsidiaries, on July 15, 2008, agreed with the Trustee of the Field Group Pension Plan on an amended recovery plan. As disclosed on April 17, 2008, the previous recovery plan required that the U.K. subsidiary make supplementary annual cash contributions to the Plan of at least GBP6 million over and above those needed to cover benefits and expenses and, if an interim funding level for the Plan of 90% was not achieved by April 5, 2008, an additional supplementary contribution to achieve an interim funding level of 90% to be paid on or before July 15, 2008. An interim valuation of the Plan as of April 5, 2008, determined that the supplementary payment necessary, in addition to the GBP6 million annual payment due on or before July 15, 2008, to achieve an interim funding level of 90% was GBP29.6 million. Under the terms of the Amended Recovery Plan, the Plan Trustee agreed to accept annual supplemental payments of GBP6 million over and above those needed to cover benefits and expenses until the earlier of (a) 2021 or (b) the Plan attaining 100% funding on an on-going basis after 2014, and has waived the requirement for the additional cash payment due on or before July 15, 2008, to achieve an interim funding level of 90%. The company's U.K. subsidiary has agreed, subject to certain terms and conditions, to grant fixed equitable and floating charges on assets of the U.K. subsidiary and its subsidiaries in the United Kingdom and the Republic of Ireland securing an amount not to exceed the Plan funding deficit on a scheme- specific basis. The security being granted to the Plan Trustee would be subordinated to the security given to the lenders under the Senior Revolving Credit Facility in Amendment No. 6, dated as of March 5, 2008, to the Second Amended and Restated Credit Agreement, dated as of Feb. 23, 2004, by and among Chesapeake and various subsidiary borrowers, the banks and other institutional lenders and Wachovia Bank, National Association, as administrative agent for the lenders. The subsidiary's agreement with the Plan Trustee also includes provisions for releases of the Plan Trustee's security interest under certain conditions in the event of the sale, transfer or other disposal of assets over which the Plan Trustee holds a security interest or upon the Plan Trustee's receipt of agreed cash payments to the Plan in addition to those described above. The U.K. subsidiary has made the GBP6 million supplemental payment to the Plan due for 2008. Also on July 15, 2008, the company agreed with its lenders on an amendment of certain provisions of its Credit Facility in Amendment No. 7, dated July 15, 2008, to the Credit Facility. The Seventh Amendment increases the total leverage ratio to 7.00:1 for the second fiscal quarter of 2008 and the senior leverage ratio to 3.40:1 for the second fiscal quarter. The Seventh Amendment also provides for agreement on the Amended Recovery Plan, including providing for an intercreditor agreement among the Credit Facility lenders, Chesapeake and the Trustee, places a limit on the future borrowing of the U.S. borrower under the Credit Facility, and provides for a new Event of Default if The Pensions Regulator in the U.K. issues a Contribution Notice or Financial Support Direction. Based on the company's current projections, it expects that it may not be in compliance with the financial covenants set forth in the Seventh Amendment as of the end of the third fiscal quarter of 2008. Failure to comply would be an event of default under the Credit Facility. If such an event were to occur, the lenders under the Credit Facility could require immediate payment of all amounts outstanding under the Credit Facility and terminate their commitments to lend under the Credit Facility and, pursuant to cross-default provisions in many of the instruments that govern other outstanding indebtedness, immediate payment of the company's other outstanding indebtedness could be required, all of which would likely have a material adverse effect on the company's business, results of operations and financial condition. About Chesapeake Corp. Headquartered in Richmond, Virginia, Chesapeake Corporation (NYSE: CSK) -- http://www.cskcorp.com/-- is a supplier of specialty paperboard packaging products in Europe and an international supplier of plastic packaging products to niche end-use markets. Chesapeake has 47 locations in France, Ireland, United Kingdom, North America, China, HongKong, among others and employs approximately 5,500 people. For the quarter ended March 30, 2008, the company reported US$1,225,100,000 in total assets and US$948,100,000 in total liabilities. * * * As disclosed in the Troubled Company Reporter on July 2, 2008, Moody's Investors Service placed all the credit ratings of Chesapeake Corp. on review for possible downgrade. This rating action follows Chesapeake's statement on June 27, 2008 that the completion of a proposed new credit facility will not be completed prior to the expiration of the commitment letter on July 1, 2008. Chesapeake further disclosed it is reviewing its balance sheet and exploring other alternatives for reducing leverage and improving its capital structure, in addition to the continued pursuit of asset sales to reduce debt. The existing credit facility matures in February 2009 and had an outstanding balance of US$185 million as of March 30, 2008. Moody's review for possible downgrade will primarily focus on the company's near-term liquidity pressures. Despite a recent amendment to the existing credit agreement that relaxed financial covenant levels through the end of 2008, Moody's is concerned that Chesapeake may breach its financial covenants at June 30, 2008. Regardless, Moody's estimate that effective availability under the revolver has been significantly diminished due to covenant constraints. Moody's placed these ratings of Chesapeake Corporation on review for possible downgrade: US$18.75 million 6.375% senior unsecured revenue bonds due 2019, B3 / LGD3 (48%); US$31.25 million 6.25% senior unsecured revenue bonds due 2019, B3 / LGD3 (48%); GBP67.1 million 10.375% senior subordinated notes due 2011, Caa1 / LGD5 (72%); EUR100 million 7% senior subordinated eurobonds due 2014, Caa1 / LGD5 (72%); Corporate Family Rating, B2; and Probability of Default Rating, B3. CHESTERTON INTERNATIONAL: Appoints Liquidators from PwC ------------------------------------------------------- Ian Christopher Oakley Smith and Michael John Andrew Jervis of PricewaterhouseCoopers LLP were appointed joint liquidators of Chesterton International Ltd. on July 9 for the creditors' voluntary winding-up proceeding. The company can be reached at: Chesterton International Ltd. c/o PricewaterhouseCoopers LLP Hill House Richmond Hill Bournemouth BH2 6HR England CPAM REALISATIONS: Claims Filing Period Ends August 22 ------------------------------------------------------ Creditors of CPAM Realisations Ltd.(formerly Chesterton Property Asset Management Ltd.) have until Aug. 22, 2008, to send in writing their names and addresses and the particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to: Ian Christopher Oakley Smith Michael John Andrew Jervis Joint Liquidators PricewaterhouseCoopers LLP Hill House Richmond Hill Bournemouth BH2 6HR England Ian Christopher Oakley Smith and Michael John Andrew Jervis of PricewaterhouseCoopers LLP were appointed joint liquidators of the company by the members and creditors on July 7, 2008. CPS REALISATIONS: Brings In Liquidators from PwC ------------------------------------------------ Ian Christopher Oakley Smith and Michael John Andrew Jervis of PricewaterhouseCoopers LLP were appointed joint liquidators of CPS Realisations Ltd. (formerly Chesterton Property Services Ltd.) and CO Realisations Ltd. (formerly Chesterton Overseas Ltd.) on July 7 for the creditors' voluntary winding-up proceeding. The companies can be reached at: CO Realisations Ltd. c/o PricewaterhouseCoopers LLP Hill House Richmond Hill Bournemouth BH2 6HR England HUGO REALISATIONS: Creditors' Meeting Slated for August 8 --------------------------------------------------------- Creditors of Hugo Realisations Ltd.(formerly Hugo Russell and Co. Ltd.)(Company Number 01095274) and Dilldash Holdings Ltd. (Company Number 04521292) will meet at 10:00 a.m. on Aug. 8, 2008, at: Smith & Williamson Ltd. 25 Moorgate London EC2R 6AY England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Aug. 7, 2008, to: Joanne Elizabeth Milner Joint Administrator Smith & Williamson Ltd. 25 Moorgate London EC2R 6AY England Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. INTERPUBLIC GROUP: Moody's Rates US$335MM Debt Facility at Ba3 -------------------------------------------------------------- Moody's assigned a Ba3 rating to The Interpublic Group of Companies, Inc.'s (IPG) new US$335 million senior unsecured revolving credit facility expiring on July 18, 2011. The facility allows IPG to increase the aggregate commitment to a maximum amount of US$485 million if lenders agree to the additional commitments. In Moody's opinion the bank credit facility enhances IPG's already solid liquidity position, which as of March 31, 2008 was supported by: (1) a large cash balance of US$1.5 billion; (2) free cash flow of US$212 million generated over the last 12 months period ended 03/31/2008 (3) US$750 million mostly unused Enhanced Liquidity Facility (ELF) maturing in June 2009 (4) modest near-term debt maturities and a largely unencumbered balance sheet. The new facility effectively replaces the ELF when it matures in 2009. IPG has an SGL-1 speculative grade liquidity rating. The rating outlook is positive. The new facility is not guaranteed by IPG's subsidiaries and ranks pari passu with other senior unsecured indebtedness of the company. The credit agreement possesses more stringent covenants as compared to the ELF, which had no covenants. It has a minimum interest coverage covenant of 4.5x and a maximum leverage covenant of 3.5x at Sept. 30, 2008, stepping down to 3.25x at March 31, 2009. Additionally, IPG is required to maintain minimum consolidated last 12 months EBITDA of US$600 million commencing with the first fiscal quarter ended Sept. 30, 2008. The company has the ability to add back US$75 million of non-cash charges to EBITDA in any period of four fiscal quarters. Further, cash acquisitions, capital expenditures and restricted payments (dividends, share repurchases and distribution of assets or securities to stockholders) together cannot exceed US$600 million in any fiscal year. IPG can carry forward US$200 million of the unused amount to the succeeding year if leverage is below 2.75x. Moody's notes that covenants under the facility (particularly interest coverage) may be tight over the next twelve months but should ease as the company expands its operating margins. The tightness of the covenant will likely result in the company maintaining its significant cash balance as interest income is netted against interest expense under the calculation. Based on the company's positive momentum in the last twelve months and prospects for improving margins over the coming year, we expect IPG to grow EBITDA and be covenant compliant over the next 12 months. Besides the substandard margins, economic pressure is the only anticipated near term challenge facing the company. Headquartered in New York, The Interpublic Group of Companies, Inc. is among the world's largest advertising, marketing and corporate communications holding companies in the world. Revenues and EBITDA (Moody's adjusted) for the last 12 months period ended March 31, 2008 were US$6.7 billion and US$1 billion respectively. JAJA INVESTMENTS: Taps Smith & Williamson to Administer Assets -------------------------------------------------------------- Anthony Cliff Spicer and Henry Anthony Shinners of Smith & Williamson Ltd. were appointed joint administrators of Jaja Investments Ltd. (Company Number 05600507) on July 18, 2008. Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. The company can be reached at: Jaja Investments Ltd. Ashfields Suite International House Cray Avenue Orpington Kent BR5 3RS England KEVDALE DEVELOPMENTS: Appoints Joint Administrators from Begbies ---------------------------------------------------------------- Paul Stanley and Stephen Conn of Begbies Traynor were appointed joint administrators of Kevdale Developments Ltd. (Company Number 05401648) on July 18, 2008. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: Kevdale Developments Ltd. c/o Begbies Traynor 340 Deansgate Manchester M3 4LY England MK KINGSTON: Calls In Administrators from Smith & Williamson ------------------------------------------------------------ Henry Anthony Shinners and Anthony Cliff Spicer of Smith & Williamson Ltd. were appointed joint administrators of MK Kingston Property Ltd. (Company Number 05479885) on July 17, 2008. Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. The company can be reached at: MK Kingston Property Ltd. Unit 1 Europa Business Park Kingston Milton Keynes Buckinghamshire MK10 0BF England PHOTO-OPTIX LTD: Creditors' Meeting Slated for August 11 -------------------------------------------------------- Creditors of Photo-Optix Ltd. (Company Number 00506094) will meet at 10:00 a.m. on Aug. 11, 2008, at: Smith & Williamson 25 Moorgate London EC2R 6AY England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Aug. 8, 2008, to: Stephen Robert Cork Joint Administrator Smith & Williamson 25 Moorgate London EC2R 6AY England Smith & Williamson -- http://www.smith.williamson.co.uk/-- provides investment management, financial advisory and accountancy services to private clients, professional practices, mid to large corporates and non-profit organizations. PROCOOK LTD: Exits Administration After Management Buy-Out ---------------------------------------------------------- ProCook Ltd. has been acquired in a management buy-out for an undisclosed sum, saving 260 jobs and 39 stores, Retail Week reports. KPMG administrator Joff Pope told Retail Week ProCook's business and assets were sold to Ensco 688. A TCR-Europe report on July 4, 2008, disclosed the company went into administration following tough trading conditions in the retail sector. Headquartered in Cheltenham, England, ProCook Ltd. -- http://www.procook.co.uk/-- retails kitchen equipment and cookware. The business operates online via its Web site and through a chain of 39 stores across the U.K., both in outlet villages and high street shops. It was established in 1993 and now employs 261 staff, including 20 at its head office in Cheltenham. QUEBECOR WORLD: Catalyst Slashes Reclamation Claim to US$1.85MM ---------------------------------------------------------------- Catalyst Paper (U.S.A.), Inc., informed the U.S. Bankruptcy Court for the Southern District of New York that it has amended the amount of its reclamation claim to US$1,852,016 against Quebecor World Inc. and its debtor-affiliates. Catalyst formerly demanded a US$8,388,821, reclamation claim on goods it sold to the Debtors 20 days before the bankruptcy filing. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The Debtors have until Sept. 30, 2008, to file a plan of reorganization in the chapter 11 case. The Debtors' CCAA stay has been extended to July 25, 2008. (Quebecor World Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: Inks Two Master Lease Pacts with National City -------------------------------------------------------------- Quebecor World (USA) Inc., entered into two prepetition master lease agreements with National City Commercial Capital Company, LLC. National City asserts that the Debtor has defaulted under the terms of the Master Lease Agreements. Accordingly, National City asks the Court to compel the Debtor to decide whether to assume or reject the Lease Agreement, and compel the Debtor to pay US$20,273 per month. If the Debtor fails to deliver the amounts, National City asks the Court to direct the Debtor to immediately deliver the equipment subject to the Lease Agreement, or lift the automatic stay, or award National City with an administrative claim for all monies coming due postpetition. Frank Peretore, Esq., at Peretore & Peretore, P.C., in Sparta, New Jersey, tells the Court that National City has demanded payments from the Debtor but the Debtor has not paid the demanded amounts. He asserts that if the Debtor does not decide whether to assume or reject the Leases, National City will continue to be irreparably harmed since the Debtor is using the leased equipment yet not making the required monthly payments. Aside from the US$20,273 monthly payment, National City also seeks payment of the rental for the use of the leased equipment, plus counsel fees, taxes and late charges. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The Debtors have until Sept. 30, 2008, to file a plan of reorganization in the chapter 11 case. The Debtors' CCAA stay has been extended to July 25, 2008. (Quebecor World Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SCOTTISH RE: A.M. Best Cuts Most Debt Ratings to 'c' ---------------------------------------------------- A.M. Best Co. has downgraded the ICR to "c" from "cc" and most debt ratings of Scottish Re. A.M. Best also has affirmed the remaining debt ratings of Scottish Re and Scottish Holdings Statutory Trust II and III. All ratings have been removed from under review with negative implications and assigned a negative outlook. Concurrently, A.M. Best Co. has downgraded the financial strength rating to C- (Weak) from C+(Marginal) and issuer credit ratings to "cc" from "b-" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Cayman Islands). These rating actions reflect A.M. Best's opinion that Scottish Re's financial position and liquidity have continued to deteriorate since A.M. Best's last review. The company's recently filed 10-K indicated severely strained liquidity and a further weakening in its capital position. The rating downgrades also reflect A.M. Best's concerns with the ongoing pricing, volatility, valuation and default risk in the mortgage- backed securities market, which have resulted in a substantial negative impact on Scottish Re's consolidated balance sheet. In its year-end 2007 10-K filing, Scottish Re reported significant impairments to its subprime and Alt-A asset portfolio valued at roughly US$780 million, with an additional first quarter 2008 impairment estimated of about US$752 million. The company indicated that a large portion of the impairment charges were in two of its three securitization structures, Ballantyne Re plc and Orkney Re II plc. While these securitization structures are without recourse to Scottish Re, they are consolidated in its financial statements under U.S. GAAP, and changes in the fair value of investments can negatively impact its reported financial results as well as the statutory reserve credit that Scottish Re (U.S.), Inc is able to recognize for these transactions. As a result of the fair value declines in the subprime and Alt-A securities, Scottish Re's statutory capital position and its ability to continue to take reserve credits for the reinsurance ceded to Ballantyne Re and Orkney Re II has been significantly reduced. At year-end 2007, reserves at Scottish Re (U.S.) Inc. were required to be strengthened by US$208 million, which adversely impacted the group's liquidity position. A.M. Best notes that the recently completed sale of its life reinsurance international (U.K) segment affords additional short-term liquidity but believes that Scottish Re's liquidity position continues to be strained. A.M. Best believes Scottish Re would face significant challenges in raising additional capital or securing letters of credit at this time. While Scottish Re has documented a very comprehensive strategic plan to ensure longer-term financial flexibility, any variation from the stated timelines documented by the company may result in exhaustion of its liquidity by first quarter 2009 or sooner. This would result in a likely need for Scottish Re to file for bankruptcy protection and creates an elevated risk for insolvency. The outlook will remain negative while A.M. Best obtains further clarity on the performance of the company's subprime and Alt-A mortgage-backed portfolios and assesses the impact of the revised strategy on Scottish Re's balance sheet. In addition, A.M. Best will monitor the disposition of the company's wealth management segment, the disposition of other key life reinsurance segments and their overall impact to the financial strength of Scottish Re. A.M. Best believes that the sale of Scottish Re's North American life reinsurance segment is integral to the ability of the organization to remain as an ongoing viable entity. The FSR has been downgraded to C-(Weak) from C+(Marginal) and ICRs to "cc" from "b-" for the following primary operating subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd. -- Scottish Re (U.S.), Inc. -- Scottish Re Life Corporation -- Orkney Re, Inc. The ICR has been downgraded to "c" from "cc" for Scottish Re Group Limited. This debt rating has been downgraded: Stingray Pass-Though Trust� -- to "c" from "b-" on US$325 million 5.902% senior secured pass-through certificates, due 2012 These indicative ratings have been downgraded: Scottish Re Group Limited� -- to "c" from "cc" on senior unsecured debt -- to "c" from "cc" on subordinated debt This debt rating has been affirmed: Scottish Re Group Limited� -- "d" on US$125 million non-cumulative preferred shares These indicative ratings have been affirmed: Scottish Re Group Limited� -- "c" on preferred stock Scottish Holdings Statutory Trust II and III� -- "c" on preferred securities SOLO CUP: Moody's Affirms B3 Corporate Family Rating ---------------------------------------------------- Moody's Investors Service assigned a Speculative Grade Liquidity Rating of SGL-2 to Solo Cup Company. Concurrently, Moody's also affirmed Solo Cup's B3 Corporate Family Rating and stable outlook. The SGL-2 liquidity rating reflects Solo Cup's adequate cash flow, covenant cushion and availability under credit facilities. Solo Cup's liquidity has been improved through the reduction in debt from the proceeds of asset sales and positive free cash flow generation from cost management and the divestiture of less profitable product lines. Funds from operations are expected to cover all cash needs over the next four quarters with the exception of the seasonally heavy first quarter which will require a modest draw on the revolver (depending upon resin prices). Free cash flow is expected to be sufficient for a modest level of debt reduction. Additional asset sales pending are bound by covenant to be applied to further debt reduction. The company is expected to maintain adequate cushion under its interest coverage ratio and leverage ratio covenant tests despite significant covenant step downs into year end 2008. Solo Cup has exceeded expectations year to date resulting in better than projected cushion under financial covenants. The SGL-2 rating remains sensitive to the company's level of funds from operations and cushion under financial covenants. A significant negative variance in operating performance would pressure the rating. Moody's ratings incorporate an expectation that the company will continue to maintain adequate cushion under its covenants, generate sufficient cash flow to cover the majority of cash needs, complete all asset sales before year end, and require only modest borrowings under its revolver. About Solo Cup Headquartered in Highland Park, Illinois, Solo Cup Company -- http://www.solocup.com/-- manufactures disposable foodservice products for the consumer and retail, foodservice, packaging, and international markets. Solo Cup has broad expertise in plastic, paper, and foam disposables and creates brand name products under the Solo, Sweetheart, Fonda, and Hoffmaster names. The company was established in 1936 and has a global presence with facilities in Asia, including Japan; Canada; Europe; Mexico; Panama; and the United States. VALLEY CONSERVATORIES: Calls In Liquidators from Tenon Recovery --------------------------------------------------------------- Jeremy Woodside and Christopher Ratten of Tenon Recovery were appointed joint liquidators of Valley Conservatories Ltd. (t/a Valley Windows and Conservatories) on July 9 for the creditors' voluntary winding-up proceeding. The company can be reached at: Valley Conservatories Ltd. Unit 1 Valley Forge Business Park Reedyford Road Nelson Lancashire BB9 8TU England VONAGE HOLDINGS: Gets US$215MM Debt Financing from Silver Point --------------------------------------------------------------- Vonage Holdings Corp. entered into a commitment letter with Silver Point Finance LLC establishing the terms and conditions for up to US$215 million in private debt financing of which Silver Point has committed to provide US$125 million. The availability of the Silver Point financing is subject to the negotiation and execution of definitive documentation and the satisfaction of certain conditions including certain other lenders committing to provide US$60 million of the private debt financing. If these conditions are met, an initial closing for between US$185 million and US$215 million of amounts under the financing is expected to occur in the third quarter of 2008. The company intends to use the net proceeds from the financing, plus cash on hand, to repurchase its existing convertible notes in a tender offer, which the company is required to commence promptly. The existing convertible notes can be put to the company on Dec. 16, 2008, and have a principal amount outstanding of approximately US$253 million. "Refinancing our existing debt has been a key priority for the company, John S. Rego, executive vice president and chief financial officer, said. "We believe this new financing will provide Vonage with the solid financial foundation to continue to grow our business profitably." Miller Buckfire & Co. LLC and Shearman & Sterling LLP are acting as financial and legal advisors to the company and Paul Weiss Rifkind, Wharton & Garrison LLP is acting as legal advisor to Silver Point in connection with this transaction. New CEO The Wall Street Journal reported that Vonage Holdings will name a new chief executive early as next week. According to WSJ, Jeffrey Citron, Vonage's chairman and interim CEO, plans to let someone else manage Vonage's day-to-day operations, though he will remain involved with the company. About Vonage Holdings Corp. Headquartered in Holmdel, New Jersey, Vonage Holdings Corp. (NYSE:VG) -- http://www.vonage.com/-- provides broadband telephone services with nearly 2.6 million subscriber lines. The company's Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and features like call waiting, call forwarding and voicemail for a flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc. and Target and is available to customers in the U.S., Canada and the United Kingdom. Going Concern Doubt BDO Seidman, LLP, in Woodbridge, New Jersey, raised substantial doubt as to Vonage Holdings 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. As reported by the Troubled Company Reporter on May 12, 2008 that Vonage Holdings's balance sheet at March 31, 2008, showed US$458.3 million in total assets and US$540.5 million in total liabilities, resulting in an US$82.2 million stockholders' deficit. * UK Industrials Sector Has Highest Pensions Risk, Deloitte Says ---------------------------------------------------------------- The investment strategies of FTSE 100 company pension schemes are exposing their corporate sponsors to significant risk according to analysis by actuaries at Deloitte, the business advisory firm. David Robbins, Pensions Partner at Deloitte, comments: "We estimate that the average FTSE 100 company is currently putting 8% of its market value at risk through its pension scheme. Our analysis shows a wide variation in the pensions risk being taken, from less than 1% of company market value to more than 100%, but the bottom line is that most companies are taking too much risk in their pension schemes. "To give an idea of the extent of the risk, we calculate that there is a 1 in 20 chance of FTSE 100 pension scheme deficits increasing by a further GBP80 billion over the next year. I seriously question whether this is the right economic climate for businesses to take such large gambles." Pension funding levels have deteriorated on the back of economic turmoil, pushing the accounting value of FTSE 100 pension schemes back into the red. Deloitte estimate that the aggregate position has worsened since the start of 2008 from a surplus of GBP15 billion to a deficit of GBP23 billion today. Typical pension scheme investment strategies currently focus on higher risk asset classes such as equities and property. While these asset classes may be expected to yield higher returns in the long term, market values can be volatile and expose the sponsoring company to the risk of having to inject high levels of cash into the pension scheme. David Robbins added: "Companies need to pro-actively work with pension scheme trustees to focus on the right strategy for their individual circumstances. There are a range of options available to manage pension liabilities and investment risk. The one thing that companies must not do is ignore it. "There has been a giant shift in pensions legislation and practice in recent years. Some companies have already reacted to the risks and taken action � others need to consider their options." These options could include: * matching expected benefit payments using bonds or derivatives � as carried out by WH Smith. * offloading risk by selling the liabilities to an insurance company - as recently carried out by Emap and Rank. * transfer�out programs for former employees � as recently carried out by P&O. Analysis By Sector Analyzing some of the trends by industry sector shows that: * The Industrials sector has the highest pensions risk (16%) compared to company value. These companies tend to have large defined benefit liabilities relative to their market value, which reflects both the decline of UK manufacturing relative to other sectors and the long history of defined benefit pension provision in this industry. Interestingly, within the sector, there is nevertheless a wide range of pensions risk being taken, from 3% to 27% of company value. * The companies in the Oil & Gas sector have a total of GBP16 billion at risk � 20% of the total for the FTSE 100. However, when compared to the market value of these companies, the pensions risk taken is below the FTSE 100 average. * Companies in the Financials sector are running slightly more conservative investment strategies when compared to the rest of the current FTSE 100. However, they still have significant pensions risk due to the scale of their pension liabilities. * S&P Says European Sovereign Finances Improved In Two Years ------------------------------------------------------------ Budgetary positions across the 27 European Union sovereigns have by and large improved over the past couple of years, a trend that is mainly due to buoyant economic growth and the associated boost to revenues, according to a Standard & Poor's Ratings Services published report, titled "European Government Finances: Past Simple, Future Tense." Now that the tide has turned for European economies, the question is to what degree cyclical factors contributed to these favorable budgetary performances, and, following from this, how the ongoing slowdown will weigh on public finances in 2008 and 2009. "The ongoing slowdown in economic growth across the E.U. will undoubtedly have an effect on government finances," S&P's credit analyst Marko Mrsnik said. More than one-half of the countries analyzed for the report were not able to achieve their targeted declines in the expenditure- to-GDP ratio in 2007. The main reason for worse-than-expected overall budgetary outcomes was the failure to comply with the previously set expenditure targets. This in turn was primarily related to weak control of government spending, rather than to variations in the GDP growth cycle -- the latter being a frequently invoked reason on the part of governments for incompliance with their own targets. "Given that the large majority of the sovereigns' budgetary plans for budgetary improvement in 2008 and 2009 are based on expenditure-side adjustments, these findings generate doubts regarding their credibility. This is particularly the case in the countries which, despite favorable cyclical conditions in recent years, have not fully complied with their own expenditure targets," Mr. Mrsnik said. From a sovereign ratings perspective, worsening budgetary outcomes in countries with currently relatively high public finance imbalances and high indebtedness -- which in some cases is coupled with low fiscal flexibility, such as in France, Greece, Hungary, and Italy -- would weigh on the current ratings, despite some recent improvement in the latter three. The same negative pressure also applies in countries where governments have pursued clearly pro-cyclical fiscal policies, such as in Romania and Lithuania. On the positive side, however, several sovereigns managed to substantially improve their budgetary situation over the past couple of years -- namely Cyprus, Czech Republic, Bulgaria, Finland, Germany, Slovenia, and Sweden. Finally, the notable lack of expenditure control over the past two years points to the importance of fiscal frameworks, including fiscal rules and institutions. In this context, any revisions of the rules now that the economic outlook has turned, such as those currently debated in the U.K., are harmful to their credibility in ensuring compliance with budgetary targets. * Economic Downturn Pressures S&P's Ratings on European Banks ------------------------------------------------------------- The major European banks are battling a range of rating pressures. The prospect of higher loan losses driven by the economic downturn, the hits on capital from market turmoil, and reduced investor appetite for the banking sector are all contributing to weaker financial profiles, Standard & Poor's Ratings Services noted in the published industry report card titled, "Credit Losses, Capital, And Confidence -- A Sharp Economic Downturn Adds To Pressures On Major European Bank Ratings". Although wholesale banking losses (and other write-downs of structured finance investment portfolios) continue to be high, they are likely to be in line with the expectations factored into existing ratings. "The focus is now shifting to the emerging problems in traditional loan books as the European economies enter into a downturn at varying speeds," said S&P's credit analyst Michelle Brennan. S&P expects to see these economic pressures reflected first in slower lending and revenues before the rating agency sees significant loan loss charges emerge. S&P is seeing generally more muted earnings expectations even from those banks that are still reporting respectable headline earnings. Further pressures arise from strained capital positions and the continuing adjustments to tougher funding conditions -- requiring structural changes rather than simply responses to a weaker part of the economic cycle. S&P expects to see an acceleration in the number of rating downgrades as these factors feed through to performance in the second half of 2008 and even more strongly into 2009. Although the main factors driving rating actions in the last year were liquidity pressures and the impact of write-downs, S&P expects rating actions over the coming year to be driven primarily by concerns over the level of credit losses in loan books, and by differences in capital philosophy. The difficult funding environment for smaller or more specialized institutions may also encourage some consolidation. As the European banking industry prepares to report its earnings for the first half of 2008, S&P expects wholesale banking to be the main driver of divergences in performance, predominantly on the back of the continued spillover from the United States housing markets. The agency expects write-downs to be lower for the second quarter than the first quarter, except for those banks that are heavily exposed to monoline bond insurers. The outlook for wholesale banking is still difficult, but S&P has largely factored this into its existing ratings. Rating actions through into 2009 are more likely to be driven by what is happening in the domestic real economies. S&P expects to see the greatest economic adjustments in the United Kingdom, Spain, and Ireland, although there is a widespread pattern of weaker economic activity driving slower revenues. S&P is also watching other markets including some of the Central European and Baltic economies where inflationary and fiscal pressures are high, and several Western European economies such as Denmark, the Netherlands, and France. From an asset-quality perspective, the first half of 2008 may be more interesting for what it will not yet show very clearly -- higher loan impairments -- than for the headline numbers. S&P does not expect to see significant increases in loan loss provisions for the first half of 2008, but it expects to notice early signs of rising delinquencies, tighter underwriting, slower loan growth, and increased resources in credit units -- and therefore the expectation of higher impairments. The rating agency also see increasing signs of sset-quality pressures in some specialized books, and expect this to spread more widely depending on the slowdowns in the European economies. "We expect asset-quality problems to be a feature of 2009 rather than 2008 results, but this has already led to negative rating actions (or outlook changes) in the U.K., Spain, and Ireland during the second quarter of 2008 (including several banks outside the Top-50 banks)," added Ms. Brennan. Capital adequacy has also come back into focus, and S&P expects diverging capital policies to contribute to rating actions. The growing consensus is that many European banks need to be more strongly capitalized to cope with times of turbulence. S&P welcomes banks' focus on higher capital targets, and greater emphasis on the quality of capital. "We anticipate that banks with more aggressive capital policies will look increasingly out of step, have greater problems with investor confidence, and face more rating pressures," added Ms. Brennan. The slowdown in the real economy is likely to constrain earnings and therefore restrict internal capital generation. This may make it more difficult for some banks to repair their financial profiles to levels more in line with their ratings. S&P also notes the turbulent responses to some recent efforts by European banks to raise capital. The market adjustments do create opportunities for some banks, however. Stronger players may have the capacity to take advantage of weaker competition and perhaps to acquire institutions that have reduced financial flexibility as independent entities. S&P expects this to lead to future opportunistic consolidation, when potential purchasers are happy with the underlying asset quality. Banco Santander S.A.'s agreed offer for Alliance & Leicester PLC is a good example. Within the Top-50 major European banks, the number of downgrades has risen, and a high proportion of banks have negative outlooks assigned to their long-term ratings (16 out of the Top-50, with one more on CreditWatch with negative implications). S&P expects the major European banks to maintain relatively high rating levels, but the probability of a one-notch downgrade is meaningful for a range of banks. Likely triggers include reduced ability to rebuild financial profiles to levels more in line with ratings (particularly if weaker economic conditions hold back revenues and lead to greater-than-expected loan problems), or capital strategies that do not reflect heightened risk. * Credit Losses Threaten European Consumer Finance, S&P Reports --------------------------------------------------------------- Despite their strong profitability, solid risk management, and satisfactory business positions, European consumer finance companies face a less benign business environment now than they have enjoyed over the past few years, said Standard & Poor's Ratings Services in a published report titled "Narrowing Margins And Rising Credit Losses Will Threaten The Risk Reward Balance In European Consumer Finance." "Rising funding costs and stiff competition are putting pressure on interest margins and limiting revenue growth potential," said S&P's credit analyst Aur�lie Thiellet. "In addition, credit risk is rising, resulting from both deteriorating economic conditions and expansion in more volatile markets." The persistence of adverse conditions could lead us to review downward our assessment of some companies' stand-alone creditworthiness. Given that most of them benefit from parental support from membership in sound banking or corporate groups, however, this would not automatically translate into a change in our ratings. Given these companies' wholesale funded profiles, liquidity risk management is key. Market turmoil has increased the vulnerability of funding, particularly for players that do not benefit from the support of a solid parent, but all have handled the crisis so far. S&P considers rated European consumer finance companies' capitalization as only adequate, and not a strength for the ratings on the companies. Subsidiaries of large banking groups maintain minimum regulatory requirements, due to their parents' centralized capital management policy. While S&P considers these levels as insufficient for the riskiness of consumer finance activities, the rating agency believes that the likelihood of ongoing and extraordinary parental support in case of need counterbalances the low capital levels. On the other hand, players that do not belong to banking groups have higher regulatory ratios, which S&P considers adequate for their business profiles. Under Basel II, most rated consumer finance players will benefit from capital relief. Despite this, based on group capital management policies and independent capital management decisions, S&P does not expect capitalization to stray far from current levels. * BOND PRICING: For the Week July 21 to July 25, 2008 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Kommunal Kredit Austria AG 0.500 03/15/19 CAD 64.11 0.250 10/14/26 CAD 40.36 Immofinanz Immob 2.750 01/20/14 EUR 65.72 Republic of Austria 1.000 06/22/22 EUR 69.02 0 10/10/25 EUR 62.83 BELGIUM ------- Fortis Bank 8.750 12/07/10 EUR 56.73 FINLAND ------- M-Real Serla 7.250 04/01/13 EUR 66.00 Muni Finance Ltd 1.000 03/19/13 AUD 74.68 Muni Finance PLC 0.500 04/26/13 AUD 72.08 1.000 10/30/17 AUD 59.32 1.000 02/27/18 AUD 58.44 1.000 11/21/16 NZD 62.55 0.250 06/28/40 CAD 21.13 0.500 09/24/20 CAD 61.02 FRANCE ------ Alcatel S.A. 4.750 01/01/11 EUR 14.73 Altran Technologies S.A. 3.750 01/01/09 EUR 12.61 BNP Paribas 0.250 12/20/14 US$ 74.73 Calyon 6.000 06/18/47 EUR 43.76 CAP Gemini S.A. 2.500 01/01/10 EUR 52.33 1.000 01/01/12 EUR 45.09 Club Mediterranee S.A. 3.000 11/01/08 EUR 67.05 4.375 11/01/10 EUR 46.15 Essilor Int'l 1.500 07/02/10 EUR 63.25 Europcar Groupe 8.125 05/15/14 EUR 64.28 8.125 05/15/14 EUR 64.92 FCC Rome Alliance Funding 2.260 01/08/21 EUR 68.60 Groupe Vial 2.500 01/01/14 EUR 31.75 Havas S.A. 4.000 01/01/09 EUR 10.83 Infogrames Entertainment S.A. 1.500 04/01/09 EUR 0.25 Ingenico 2.750 01/01/12 EUR 19.29 Maurel & Prom 3.500 01/01/10 EUR 21.19 Publicis Group 1.000 01/18/18 EUR 41.49 Rhodia S.A. 0.500 01/01/14 EUR 33.10 Scor SA 4.125 01/01/10 EUR 2.06 Soc Air France 2.750 04/01/20 EUR 21.56 ST Gobain 5.625 11/15/24 GBP 77.02 Theolia 2.000 01/01/14 EUR 20.79 Valeo 2.375 01/01/11 EUR 41.85 Wavecom S.A. 1.750 01/01/14 EUR 18.50 Wendel Invest S.A. 2.000 06/19/09 EUR 42.68 4.875 11/04/14 EUR 71.55 4.875 09/21/15 EUR 69.52 4.875 05/26/16 EUR 68.57 GERMANY ------- Callahan NRH 16.000 07/15/10 US$ 0.01 Deutsche Bank London 2.790 07/27/15 EUR 71.37 Deutsche Schifbk 4.200 01/23/09 EUR 99.52 IKB Deut Industriebank 4.080 12/20/35 EUR 73.45 KfW Bankengruppe 0.500 10/30/13 AUD 69.75 0.500 12/19/17 EUR 66.56 1.250 05/23/20 EUR 72.28 1.250 07/07/20 EUR 73.58 2.793 07/29/20 EUR 72.72 1.250 09/21/25 EUR 66.80 5.000 08/10/30 EUR 65.96 5.000 09/01/25 EUR 70.37 Landeskreditbank Baden- Wuerttemberg Foerderbk 0.500 05/10/27 CDN 44.04 Landwirtschaftliche Rentenbank AG 1.000 03/29/17 NZD 61.10 Westlb AG 3.350 10/19/26 EUR 74.19 ICELAND ------- Glitnir banki HF 4.375 02/05/10 EUR 77.44 6.000 03/05/12 GBP 77.39 Kaupthing Bank 6.500 02/03/45 EUR 41.68 5.750 10/04/11 US$ 77.26 5.750 10/04/11 US$ 78.29 7.125 05/19/16 US$ 105.63 6.125 10/04/16 US$ 73.42 IRELAND ------- Banesto Finance Plc 6.120 11/07/37 EUR 6.12 Depfa ACS Bank 0.500 03/03/25 CDN 48.35 0.250 07/08/33 CDN 28.84 Irish Nationwide Building Society 5.500 01/10/18 GBP 64.37 Irish Perm Plc 2.500 02/15/35 EUR 49.65 Ono Finance II 8.000 05/16/14 EUR 65.06 UT2 Funding Plc 5.320 06/30/16 EUR 74.92 ITALY ----- Alitalia SPA 7.500 07/22/10 EUR 65.61 Telecom Italia 5.250 03/17/55 EUR 71.27 LUXEMBOURG ---------- Globus Capital Finance SA 8.500 03/05/12 US$ 68.20 IT Holding Fin 9.880 11/15/12 EUR 64.37 Kloeckner & Co Fin Intl 1.500 07/27/12 EUR 71.22 Kudelski Financial Services SCA 1.625 10/05/12 CHF 74.52 Lighthouse Intl 8.000 04/30/14 EUR 74.91 Nell AF S.A.R.L. 8.375 08/15/15 EUR 62.80 8.375 08/15/15 US$ 63.83 NETHERLANDS ----------- ABN Amo Bank B.V. 6.000 03/16/35 EUR 64.31 Air Berlin Finance B.V. 1.500 04/11/27 EUR 22.85 ALB Finance B.V. 7.875 02/01/12 EUR 73.31 BK Ned Gemeenten 0.500 06/27/18 CDN 66.22 0.500 02/24/25 CDN 48.39 BLT Finance BV 7.500 04/17/74 US$ 67.55 Clondalkin BV 8.000 03/15/14 EUR 74.92 EM.TV Finance B.V. 5.250 05/08/13 EUR 04.03 Hypo Real ES Finance 5.500 08/20/08 EUR 39.48 Indah Kiat Intl 11.880 06/15/02 US$ 53.00 ING Bank N.V. 4.200 12/19/35 EUR 73.94 IVG Finance B.V. 1.750 03/29/17 EUR 50.94 Kazkommerts Finance 8.500 06/13/17 US$ 73.46 Kazkommerts Intl 7.500 11/29/16 US$ 74.04 7.500 11/29/16 US$ 74.71 6.875 02/13/17 EUR 72.90 KBC Ifima NV 5.880 02/07/25 US$ 72.40 Lehman Bros TSY B.V. 2.000 03/18/15 EUR 73.94 4.169 02/16/17 EUR 65.02 6.000 02/15/35 EUR 53.17 2.000 03/16/35 EUR 36.25 7.000 05/17/35 EUR 45.25 7.250 10/05/35 EUR 38.10 6.000 11/02/35 EUR 40.51 Montell Finance B.V. 8.100 03/15/27 US$ 58.21 Natl Invester Bank 25.982 05/07/29 EUR 29.26 Ned Waterschapbk 6.000 06/01/35 EUR 62.38 6.500 08/15/35 EUR 55.78 6.000 06/30/45 EUR 56.92 NXP BV/NXP FUNDI 8.625 10/15/15 EUR 64.02 9.500 10/15/15 US$ 70.25 Portugal Tel Fin 4.500 06/16/25 EUR 71.93 Rabobank Groep N.V. 2.500 02/22/35 EUR 59.38 2.000 03/23/35 EUR 57.08 6.000 05/09/35 EUR 60.50 Tjiwi Kimia Fin 13.250 08/01/01 US$ 0.01 NORWAY ------ Eksportfinans 13.000 02/25/09 US$ 69.25 Kommunalbanken A.S. 0.500 02/07/13 AUD 73.07 Norske Skogindustrier ASA 7.000 06/26/17 EUR 61.90 SPAIN ----- General De Alqui 2.750 08/20/12 EUR 74.85 SWEDEN ------ AB Svensk Export 0.500 03/27/13 AUD 73.02 Swedish Exp Cred 10.500 09/30/15 TRY 74.48 SWITZERLAND ----------- Cytos Biotechnology 2.875 02/20/12 CHF 69.33 S-Air Group 0.125 07/07/05 CHF 11.97 Swiss RE 6.000 12/15/08 CHF 71.37 UBS AG Jersey 3.220 07/31/12 EUR 69.59 TURKEY ------ Turkey Govt Bond 16.000 03/07/12 TRY 91.92 UNITED KINGDOM -------------- Allianc&Leic Bld 5.875 08/14/31 GBP 78.94 Anglian Water Finance Plc 2.400 04/20/35 GBP 50.74 Aspire Defence 4.670 03/31/40 GBP 67.62 4.670 03/31/40 GBP 67.59 Bank of Scotland 6.000 02/07/35 EUR 60.93 Bradford&Bin BLD 5.750 12/12/22 GBP 67.88 6.625 06/16/23 GBP 65.63 4.910 02/01/47 EUR 74.93 Brit Insurance 6.625 12/09/30 GBP 77.37 Britannia Building Society 5.875 03/28/33 GBP 72.55 5.750 12/02/24 GBP 72.14 Cattles Plc 7.125 07/05/17 GBP 72.17 Derby Healthcare 5.564 06/30/41 GBP 74.70 F&C Asset Management plc 6.750 12/20/26 GBP 70.51 Grainer Plc 3.630 05/17/14 GBP 56.45 Greene King Fin 5.106 03/15/34 GBP 72.93 Hammerson Plc 6.000 02/23/26 GBP 75.00 HBOS Plc 4.500 03/18/30 EUR 70.23 HSBC Bank Plc 3.750 05/18/15 EUR 71.77 Ineos Group Holdings Plc 7.875 02/15/16 EUR 64.17 7.875 02/15/16 EUR 63.84 8.500 02/15/16 US$ 67.55 Jaztel Plc 5.000 04/29/10 EUR 73.93 Lloyds TSB Bank 6.210 12/14/37 EUR 49.11 Louis No1 Plc 8.500 12/01/14 EUR 70.75 8.500 12/01/14 EUR 70.42 10.000 12/01/16 EUR 68.92 Marton's Issuer Plc 5.177 07/15/32 GBP 73.22 5.641 07/15/35 GBP 74.24 National Grid Gas Plc 1.754 10/17/36 GBP 41.68 1.771 03/30/37 GBP 41.67 ONO Finance PLC 10.500 05/15/14 EUR 65.42 10.500 05/15/14 EUR 65.67 Rexam Plc 6.750 06/29/67 EUR 69.79 Royal BK Scotland 0.250 03/27/14 US$ 73.65 9.500 04/04/25 US$ 64.41 1.250 06/09/25 EUR 49.10 2.793 06/29/30 EUR 43.50 Slough Estates plc 5.625 12/07/20 GBP 77.13 5.750 06/20/35 GBP 72.54 Taylor Woodrow 6.375 05/24/19 GBP 53.00 TXU Eastern Funding Co 6.450 05/15/05 US$ 0.01 Unique Pub Fin 6.464 03/30/32 GBP 73.31 Wessex Water Finance 1.369 07/31/57 GBP 19.65 ********* 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. Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy Agravante, Julybien D. Atadero and Peter A. Chapman, 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 * * *