/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080804.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, August 4, 2008, Vol. 9, No. 153 Headlines A U S T R I A KARL UND FRIEDERIKE: Claims Registration Period Ends August 14 SALK BAU: Claims Registration Period Ends August 14 SG. MAVIL LLC: Claims Registration Period Ends August 14 SOLIDUS LLC: Claims Registration Period Ends August 14 TONEX LLC: Claims Registration Period Ends August 12 B U L G A R I A ANTENNA TV: Sells Nova TV Bulgaria to MTG for EUR620 Million * Three to Four Black Sea Coast Hotels Go Bankrupt Every Week F R A N C E ALCATEL-LUCENT: S&P Shifts Outlook to Neg., Affirms BB-/B Rtngs THOMSON S.A.: Moody's Lowers Corporate Family Rating to B1 G E R M A N Y AMPEX CORPORATION Court Confirms Amended Joint Chapter 11 Plan EPCOS AG: Inks Business Combination Agreement with Japan's TDK EPCOS AG: TDK Tender Offer Cues S&P to Put Rating on Watch Pos. ESCADA AG: Moody's Confirms B2 Corporate Family Rating FRESENIUS SE: US$2.4BB Debt Issue Won't Affect Fitch's Ratings GB WORLD: Claims Registration Period Ends August 11 GESELLSCHAFT ZUR: Claims Registration Period Ends August 11 GP CARGO: Claims Registration Period Ends August 13 GRAAFF TRANSPORTSYSTEME: Claims Registration Period Ends Aug. 11 LASER CARE: Claims Registration Period Ends August 11 LEAR CORP: Names William Mattingly VP for Global Electrical Biz LULIGHT GMBH: Claims Registration Period Ends August 11 MARCANT-SANITAR-GMBH: Claims Registration Period Ends August 11 NEN-ELEKTRONIK GMBH: Claims Registration Period Ends August 11 OEKO-BAU GMBH: Claims Registration Period Ends August 11 PFLEIDERER AG: Revenue Up 3.5% to EUR917 Mln in 2008 First Half PFLEIDERER: Moody's Reviews Ba2 CFR for Possible Downgrade PREPS 2005-2: Fitch Puts 'B' Rated Notes Under Negative Watch SON-TRANS GMBH: Claims Registration Period Ends August 12 STADTNET GMBH: Claims Registration Period Ends August 11 TECH-SOLUTIONS GMBH: Claims Registration Period Ends August 11 WAGGONBAU ELZE: Claims Registration Period Ends August 11 W + N SPANDAU: Creditors Meeting Slated for September 29 G R E E C E ANTENNA TV: Sells Nova TV Bulgaria to MTG for EUR620 Million ANTENNA TV: EUR620 Million Asset Sale Cues S&P's WatchDeveloping I R E L A N D ELAN CORP: Rating Unaffected by Drug Trial Results, S&P Says I T A L Y ALITALIA SPA: Net Debt Reaches EUR1.115 Billion at June 30, 2008 BERICA 6: S&P Puts BB Rating on Class D Notes on WatchNegative PARMALAT SPA: UniCredit Group Settles for EUR271.7 Million TISCALI SPA: Unit Partners with Equinix for European Expansion K A Z A K H S T A N AKSUSKOYE ATP: Creditors Must File Claims by September 17 AKTAU LAVA: Claims Deadline Slated for September 18 AZAMAT SERVICE: Claims Filing Period Ends September 17 BUILD LLP: Creditors' Claims Due on September 17 GEO MINING: Claims Registration Ends September 18 KAZ SPETS: Creditors Must File Claims by September 17 LAND OIL: Claims Deadline Slated for September 16 ONSHORE LLP: Claims Filing Period Ends September 17 ORDA NEFTEGAS: Creditors' Claims Due on September 16 K Y R G Y Z S T A N STREITOS LLC: Creditors Must File Claims by September 4 L U X E M B O U R G EVRAZ GROUP: Forms JV with MCC for Cape Lambert Iron Ore Project STEEL CAPITAL: Fitch Rates US$1.25 BB Notes Due 2013 at 'BB' N O R W A Y CHC HELICOPTER: Extends Offer for 7-3/8% Notes to September 15 R U S S I A BRIDGE CONSTRUCTION: Court Names V. Boldyrev to Manage Assets CHUKOTSKOE GOLD: Creditors Must File Claims by August 28 COSMOS OJSC: Perm Bankruptcy Hearing Slated for October 31 CROCUS LLC: Court Starts Bankruptcy Supervision Procedure DIAMOND LLC: Moscow Bankruptcy Hearing Slated for October 28 ENTERPRISE TAIRA: Court Names A. Bezmolenko to Manage Assets EVRAZ GROUP: Forms JV with MCC for Cape Lambert Iron Ore Project HOME CREDIT: S&P Puts B+ L-T Rating on US$250MM Proposed Notes KORSHINOV-STROY-ETALON: Court Starts Bankruptcy Supervision S L O V A K R E P U B L I C VALEANT PHARMACEUTICALS: Moody's Withdraws Low-B Ratings S P A I N * Fitch Says Spanish Consumer ABS Face Rising Credit Risks S W E D E N FORD MOTOR: Fitch Highlights Effect of Declining Resale Values FORD MOTOR: S&P Cuts Rating to B- and Removes Negative Watch S W I T Z E R L A N D ANDREAS SCHILD: Aug. 17 Set as Deadline to File Proofs of Claim BACOSYS LLC: Creditors Have Until Aug. 18 to File Claims CMD MODEN: Creditors Must File Proofs of Claim by Aug. 15 DWWI JSC: Deadline to File Proofs of Claim Set Aug. 16 FIVE ASHES: Proofs of Claim Filing Deadline is Aug. 15 GENERAL MOTORS: Fitch Details Effect of Declining Resale Values GENERAL MOTORS: S&P Cuts Rating to B- on Mounting Cash Losses H. FISCHBACHER: Creditors' Proofs of Claim Due by August 17 HESS KRANKENTRANSPORTE: Aug. 15 Set as Deadline to File Claims INDATEX JSC: Creditors Must File Proofs of Claim by August 18 ISKY LLC: Deadline to File Proofs of Claim Set August 15 LALITA JSC: Proofs of Claim Filing Deadline is August 17 SEMGROUP LP: Wants to Access BofA's US$250,000,000 DIP Financing SEMGROUP LP: Term Loan Lenders Assert Distinct Prepetition Liens SEMGROUP LP: Bankruptcy Impacts Independent Oil Producers SEMGROUP LP: Selects Weil Gotshal as Bankruptcy Counsel SEMGROUP LP: Celtic, et al. Disclose Financial Exposures T U R K E Y ALBARAKA TURK: Fitch Holds 'BB-' LT Foreign Currency ID Rating KUVEYT TURK: Fitch Holds LT Foreign Currency ID Rating at 'BB' TURKIYE IS: Fitch Affirms 'B' Short-Term Foreign Currency IDR * TURKEY: S&P Shifts Outlook to Stable, Affirms Low-B Ratings U K R A I N E ALFA BANK: Moody's Affirms Ba3 Long-Term Foreign Currency Rating U N I T E D K I N G D O M CHRYSLER LLC: Mulling Foreign Auto Tie Ups to Slash Costs CHRYSLER LLC: Fitch Highlights Effect of Declining Resale Values CHRYSLER LLC: S&P Cuts Rating; Keeps Watch on Bank Lines Renewal DAWNAY DAY: BDO Stoy Hayward Takes Control of Two Companies EUROMANX AIRWAYS: Creditors Unlikely to Recover Investments FGIC CORP: Fitch Junks Rating on US$325MM of 6% Senior Notes FROSTFRENCH LTD: Goes Into Administration; Owes GBP4 Million NUNEATON BOROUGH: Appoints Martin Coyne as Liquidator RESLOC UK 2007-1: S&P Places BB/B Ratings on Negative Watch SOLUTIA INC: Posts US$16Mln Net Loss for 2nd Qtr Ended June 30 SOLUTIA INC: Uncertainty Looms at Nylon Biz; Exploring Options SOLUTIA INC: Registers 600 Million Stock and Debt Securities SOLUTIA INC: ITC Probes Firms for Infringement of Flexys Patent VONAGE HOLDINGS: Commences Tender Offer for 5% Convertible Notes * S&P Reports U.K. Universities Face Risks Despite High Revenues * U.K. Corporate Insolvencies Down 3.1% in 2Q 2008, PwC Says * BOND PRICING: For the Week July 25 to July 29, 2008 ********* ============= A U S T R I A ============= KARL UND FRIEDERIKE: Claims Registration Period Ends August 14 -------------------------------------------------------------- Creditors owed money by OG Karl und Friederike Mihelic have until Aug. 14, 2008, to file written proofs of claim to the court-appointed estate administrator: Peter Handler from Advocacy LLC Handler Rechtsanwalt Hauptplatz 33 8530 Deutschlandsberg Austria Tel: 03462/4141 Fax: 03462/414141 E-mail: office@handler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:15 p.m. on Aug. 21, 2008, for the examination of claims at: The Land Court of Graz Room 222 2nd Floor Graz Austria Headquartered in Wettmannstatten, Austria, the Debtor declared bankruptcy on July 4, 2008, (Bankr. Case No. 26 S 78/08b). SALK BAU: Claims Registration Period Ends August 14 --------------------------------------------------- Creditors owed money by LLC Salk Bau have until Aug. 14, 2008, to file written proofs of claim to the court-appointed estate administrator: Wolfgang Winkler Reisnerstrasse 32/12 1030 Vienna Austria Tel: 715 50 45 Fax: 715 50 474 E-mail: office@anwalt-vienna.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on Aug. 28, 2008, for the examination of claims at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 2, 2008, (Bankr. Case No. 6 S 94/08b). SG. MAVIL LLC: Claims Registration Period Ends August 14 -------------------------------------------------------- Creditors owed money by LLC SG. Mavil have until Aug. 14, 2008, to file written proofs of claim to the court-appointed estate administrator: Clemens Richter Esteplatz 4 1030 Vienna Austria Tel: 712 33 30-0 Fax: 712 33 30-30 E-mail: kanzlei@engelhart.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:15 a.m. on Aug. 28, 2008, for the examination of claims at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 3, 2008, (Bankr. Case No. 6 S 97/08v). SOLIDUS LLC: Claims Registration Period Ends August 14 ------------------------------------------------------ Creditors owed money by LLC Solidus have until Aug. 14, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Carl Knittl Porzellangasse 22a/7 1090 Vienna Austria Tel: 532 47 77 Fax: 532 47 77 50 E-mail: rae@kniwi.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Aug. 28, 2008, for the examination of claims at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on July 2, 2008, (Bankr. Case No. 6 S 92/08h). TONEX LLC: Claims Registration Period Ends August 12 ---------------------------------------------------- Creditors owed money by LLC Tonex have until Aug. 12, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Franz Hofbauer Hauptplatz 6 3370 Ybbs/Donau Austria Tel: 07412/52731 Fax: 07412/52731-22 E-mail: dr.hofbauer@wibs.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:50 a.m. on Sept. 2, 2008, for the examination of claims at: The Land Court of St. Poelten Room 216 2nd Floor St. Poelten Austria Headquartered in Persenbeug, Austria, the Debtor declared bankruptcy on July 8, 2008, (Bankr. Case No. S 106/08s). =============== B U L G A R I A =============== ANTENNA TV: Sells Nova TV Bulgaria to MTG for EUR620 Million ------------------------------------------------------------ Modern Times Group MTG AB has signed an agreement to acquire 100% of Nova Televisia Bulgaria for EUR620 million in cash, on a cash and debt free basis and subject to closing adjustments, from Antenna Bulgaria, a member of the Kyriakou-owned Antenna Group. Nova Televisia Bulgaria was established in 1994 and owns 100% of "Nova", the second most watched TV channel in Bulgaria, as well as 80% of leading Bulgarian women's magazine "EVA". The Nova commercial TV channel had an 18.2% share of viewing amongst the target audience group of 18-49 year olds in the first half of 2008, and an approximately 32.4% share of the EUR 125 million Bulgarian net TV advertising market in 2007. Nova has an urban-focused, young and predominantly female audience profile, and broadcasts a wide range of local content, as well as successful international formats such as "Big Brother", "CSI", "House", "Prison Break" and "Ugly Betty". Nova is broadcast under a national terrestrial free-TV license, as well as on cable and satellite networks, and is available to 99% of people meter panel households in Bulgaria. MTG already operates the family of Diema channels in Bulgaria through its 50% controlling interest in Balkan Media Group Limited. The Diema channels had a 10.0% combined share of viewing (18-49) in the first half of 2008. The transaction is expected to yield significant synergies for MTG's Bulgarian TV operations going forward, and to facilitate the further development of MTG's "media house" approach in the Bulgarian TV market. The Bulgarian TV advertising market grew by 30% in 2007 and is expected to continue to demonstrate high levels of growth in the coming years. Nova Televisia Bulgaria generated a 54% year on year increase in net sales to EUR42.0 (27.3) million in 2007, and a more than doubling of EBIT to EUR19.1 (8.1) million with an increased operating margin of 45.5% (29.7%). The acquisition will be financed from MTG's existing available liquid funds and from new debt financing. MTG is in the process of arranging approximately SEK 3 billion of additional debt funding, in order to fully finance the transaction and provide continued flexibility for the Group. MTG generated SEK2.0 billion of EBIT in 2007 and SEK2.4 billion in the first six months of 2008 (including a SEK1.2 billion gain from the sale of DTV Group Russia). The transaction is subject to approval by the relevant regulatory authorities and is expected to be completed within approximately three months. Hans-Holger Albrecht, President and CEO of MTG, commented: "The acquisition is our largest to date, and substantially strengthens our position in one of Europe's fastest growing and most attractive broadcasting markets. It further demonstrates our commitment to expand our operations into high growth emerging markets, and to extend our successful multi-channel multi-country business model. Nova has outperformed the growth in the Bulgarian advertising market and generates healthy margins. Its market position as the primary challenger to the incumbent, as well as the channel's complementary programming mix and audience profile, fit well with our existing operations. We look forward to further accelerating the channel's development and capitalizing on its potential. "The acquisition will create significant synergies for us as a media house, as we already operate the Diema group of TV channels in Bulgaria. It will not only boost MTG's sales growth and operating margins, but also accelerate our progress towards the achievement of the five year strategic objectives that we set last year. "We have historically strengthened our balance sheet precisely in order to have the financial flexibility to seize opportunities such as this. The gearing levels that will result will optimize our overall capital structure, and are moderate when compared with the strong cash flow generation from our existing operations". MTG is being advised on the acquisition of Nova Televisia Bulgaria by JP Morgan. Headquartered in Athens, Greece, Antenna TV S.A. -- http://www.antenna.gr/-- operates Antenna TV (the leading television broadcast network and producer of television programming in Greece), Antenna FM (a radio station in the greater Athens area), and also has a 50% interest in Daphne, a publishing company with a portfolio of 13 magazines. Antenna also owns 100% of Nova Television, one of only two private national television networks in Bulgaria. * * * Antenna TV S.A. continues to carry 'B' long-term corporate credit and senior unsecured debt ratings from Standard & Poor's with negative outlook. S&P affirmed the ratings on the group in June 2008. * Three to Four Black Sea Coast Hotels Go Bankrupt Every Week ------------------------------------------------------------- Three to four hotels on the Black Sea coast in Bulgaria file for bankruptcy every week, according to data gathered by the Bulgarian State Agency for Tourism (SAT), Svetlana Guineva of Sofia Echo reports. Citing SAT head Aneli Kroushkova, the report relates that supply is high and demand is low on the Black Sea coast, which saw 820 hotels being built in the first part of 2008. Ms. Kroushkova said hotel owners could not meet their financial obligations as hotels remained half-empty. She said there were hotels put up for sale. However, no buyers have expressed interest so far, the report says. Ms. Kroushkova, the report adds, expects Bulgaria to buy out all bankrupt hotels as what Spain did following the downturn in the Spanish real estate market. =========== F R A N C E =========== ALCATEL-LUCENT: S&P Shifts Outlook to Neg., Affirms BB-/B Rtngs --------------------------------------------------------------- Standard & Poor's Ratings Services has revised to negative from stable its outlook on France-based telecommunications equipment supplier Alcatel Lucent. At the same time, the 'BB-/B' long- and short-term corporate credit ratings on Alcatel Lucent, the 'BB-/B-1' long and short- term corporate credit ratings on subsidiary Lucent Technologies Inc., and all issue ratings on both companies were affirmed. At June 30, 2008, Alcatel Lucent had on-balance-sheet gross debt of EUR5.5 billion, including the equity component of convertible bonds. "The outlook revision primarily reflects our concerns about the slow pace of improvement of Alcatel Lucent's margins and the group's large negative free cash flow," said S&P's credit analyst Patrice Cochelin. S&P is also concerned that Alcatel Lucent's announced management changes could create further disruption for the company at a time when operating performance remains weak and carrier demand is softening. Both Alcatel Lucent's non-executive chairman and Chief Executive Officer will step down before year-end 2008. A new CEO is yet to be found. S&P may downgrade the company by one notch if operating performance (notably margins and cash flow generation) remains weak -- in particular if prospects for a mid to high-single digit adjusted operating margin in 2009 recede -- and if Alcatel Lucent's liquidity position deteriorates unexpectedly. "An outlook revision to stable would likely require steady and meaningful sequential improvements in margins, and good prospects for a sustainable return to free cash flow break even, with the maintenance of a solid liquidity position," said Mr. Cochelin. THOMSON S.A.: Moody's Lowers Corporate Family Rating to B1 ---------------------------------------------------------- Moody's Investor's Service downgraded the Corporate Family Rating for Thomson S.A. to B1 from Ba2 and downgraded the junior subordinated rating for Thomson's perpetual junior subordinated bonds to Caa1 from B2 reflecting a LGD 6 loss given default assessment given the deeply subordinated status of this instrument. The outlook has been changed to stable. Oliver Giani, Senior Analyst at Moody's said: "Thomson's financial results for the first half of 2008 have weakened with regard to sales and profitability, which has further tightened covenant headroom. New management is expected to continue executing on cost saving measures already identified with a view to stabilizing Thomson's H2 performance more in line with the same period in 2007, which would ensure continued covenant compliance contained within its debt agreements. Supported by the relatively reliable license income and the usual fourth quarter upswing in the cash generation of the systems and services businesses, Thomson has the potential to contain its deteriorating credit metrics below 6 times debt/EBITDA (pre- restructuring charges) and keep interest cover comfortably above 3 times in 2008. The B1 rating category, in which Thomson is reasonably positioned, expects achievement of these metrics with a modest free cash flow and no major asset write-down or impairments in the current year." So far in 2008, the benefits from past restructuring measures have proven insufficient to offset the reduced business volumes resulting in a 42% decline of operating profit to EUR43 million and a EUR182 million net loss. A further EUR248 million reduction in equity as a result of the impairment of the stake in Videocon Industries has also resulted in limited headroom under Thomson's financial debt covenants. Still, Moody's does anticipate continued compliance, because of (i) a normalization in film processing and DVD replication after the end of the US writers strike, (ii) contract wins in access products and (iii) stable license income, all adding to the cost saving measures that are being implemented and position the company for a stabilization in profitability and cash flows. The three notch difference between Corporate Family Rating and the junior subordinate rating for the EUR500 million undated fixed- to floating rate notes issued in 2005 is one notch below the outcome of Moody's Loss Given Default Rating Model to reflect the increased risk of a coupon non-payment in addition to the deeply subordinated status of this instrument ranking junior to all other creditors except shareholders. Even though Thomson's historic performance has been volatile, at least seasonally, the rating outlook has been stabilized since certain headroom has been incorporated into the rating to accommodate modest deviation from our central scenario for the trend in financial metrics, essentially in line with the performance in H2, 2007. Moody's B1 rating for Thomson expects that the company will execute on its restructuring measures and debt reduction and the overall simplification of the group. As at June 30, 2008 the company also had 665 million of cash to support the company's turnaround strategy. Downgrades: ..Issuer: Thomson S.A. ....Probability of Default Rating, Downgraded to B1 from Ba2 ....Corporate Family Rating, Downgraded to B1 from Ba2 ....Junior Subordinated Regular Bond/Debenture, Downgraded to Caa1 from B2 Outlook Actions: ..Issuer: Thomson S.A. ....Outlook, Changed To Stable From Rating Under Review The last rating action for Thomson has been on July 16, 2008, when Moody's placed the ratings under review for possible downgrade. Headquartered in Paris, France, Thomson is a leading provider of technology, systems and service solutions for integrated media and entertainment companies operating in three business segments: Thomson's Services division offers end-to-end management of services for the media and entertainment industry, from finishing movie content (post-production) to content replication of film and DVD and distribution. The Systems division provides professional broadcasting and network equipment for TV stations and other network operators as well as broadband access products. The Technology division combines Thomson's research and exploitation of its patent portfolio through licensing programs. In fiscal year 2007 the company generated revenues from continuing operations of EUR5.6 billion. For 6 months to June 30, 2008, the company generated revenues of EUR2.2 billion. ============= G E R M A N Y ============= AMPEX CORPORATION Court Confirms Amended Joint Chapter 11 Plan --------------------------------------------------------------- The Hon. Arthur J. Gonzalez of the United States Bankruptcy Court for the Southern District of New York confirmed the first modified third amended joint Chapter 11 plan of reorganization filed by Ampex Corporation and its debtor-affiliates on July 9, 2008. The Debtors are expected to emerge from bankruptcy within the next few months. Upon emergence, the Debtors will have deleveraged their capital structure and have access to new funding that will be used, among other things: i) for general working capital purposes, and ii) to repay a portion of their outstanding senior notes. Furthermore, the Debtors will have financing in place, if needed, to satisfy future pension contributions to their defined benefit plans. As reported in the Troubled Company Reporter on July 24, 2008, the Court granted the Debtors' request to modify their Third Amended Joint Chapter 11 Plan of Reorganization dated June 8, 2008, and approved a proposed supplement to the disclosure statement relating to the Plan, and other related relief. The plan was modified, among other things, to revise certain terms relating to lump sum cash payment elections by holders of unsecured claims and certain conditions precedent to consummation of the Plan. The Supplement contains a summary of the modifications made to the Plan. On July 9, 2008, the Debtors entered into a Plan Support Agreement with the Official Committee of Unsecured Creditors. Under the PSA, the Committee agreed to support the Plan and to urge holders of unsecured claims to vote to accept the Plan, among other things. As reported in the Troubled Company Reporter on June 12, 2008, the Committee filed an objection to the Debtors' earlier versions of the disclosure statement and plan. The Committee argued that the plan leaves unsecured creditors with minor equity share in the reorganized Debtors. As of March 30, 2008, the Debtors issued at least US$59.6 million of outstanding notes, wherein US$6.9 million represents amounts due under an agreement dated Feb. 28, 2002, as amended, entered into between the Debtors and U.S. Bank, National Association. Under the agreement, the Debtors issued 12% senior secured notes due 2008, which are secured by liens on the Debtors' future royalty receipts. The remaining US$52.7 million of outstanding indebtedness represents Hillside Capital Incorporated Notes that were issued in connection with its satisfaction of required contribution obligation under the pension plans -- Ampex Corporation Retirement Plan and Quantegy Media Retirement Plan. The pension plans will not be terminated under the Debtors' Plan. The Debtor will continue to fund the pension plans in accordance with the minimum financing standards under the Internal Revenue Code and the Employee Retirement Income Security Act of 1974. The Debtors anticipate making pension plan contributions of at least US$52.9 million by 2013. As of Dec. 31, 2007, both pension plans were underfunded by US$57.7 million in the aggregate. The First Modified Third Amended Plan classifies claims against and interest in the Debtors in eight classes. The classification and treatment of claims and interests are: Treatment of Claims and Interests Type of Estimated Estimated Class Claims Treatment Amount recovery ----- ------- --------- --------- --------- unclassified Administrative US$100,000 100% Expense Claims unclassified Fee Claims US$2,900,000 100% unclassified Priority Tax US$200,000 100% Claims 1 Priority Non- unimpaired US$0 100% Tax Claims 2 Senior Secured impaired US$6,900,000 Note Claims 3 Other Secured unimpaired US$0 100% Claims 4 Hillside impaired US$11,000,000 100% Secured Claims 5 General impaired US$51,600,000 10% Unsecured Claims 6 Existing Common impaired US$0 0% Stock 7 Existing impaired US$0 0% Securities Laws Claims 8 Other Existing impaired US$0 0% Interests If holder of Class 5 general unsecured creditors agrees to a different treatment, holder will receive its 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. Holders of claims in classes 2, 4 and 5 are entitled to vote to accept or reject the Plan. A full-text copy of the First Modified Third Amended Joint Chapter 11 Plan of Reorganization dated July 9, 2008, is available for free at: http://ResearchArchives.com/t/s?3049 A full-text copy of the Third Amended Disclosure Statement dated June 8, 2008, is available for free at: http://ResearchArchives.com/t/s?2d9b A full-text copy of the Supplement to the Disclosure Statement with Respect to First Modified Third Amended Joint Chapter 11 Plan of Reorganization, dated July 14, 2008, is available for free at: http://researcharchives.com/t/s?2fcc A full-text copy of the Plan Support Agreement dated July 9, 2008, among the Debtors and the Committee is available for free at: http://researcharchives.com/t/s?2fce Headquartered in Redwood City, California, Ampex Corp. (Nasdaq:AMPX) -- http://www.ampex.com/-- 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. EPCOS AG: Inks Business Combination Agreement with Japan's TDK -------------------------------------------------------------- TDK Corporation and EPCOS AG have signed a Business Combination Agreement that would merge the companies' activities in the electronic components field. The combination will create an industry-leading electronic components company with a strong presence across customer sectors and regions. The BCA contains the basis of the partnership and the road map for its implementation. As a first step, TDK will launch a public tender offer for all outstanding shares of EPCOS and will offer EPCOS' shareholders EUR17.85 in cash per share. The offer price represents a 52% premium over the three-months average closing share price on the Frankfurt Stock Exchange (Xetra) prior to the date of this announcement and a 29% premium over the closing price (Xetra) on July 30, 2008. Based on the number of EPCOS shares outstanding, this offer would value EPCOS at around EUR1.2 billion equity value. Including net financial liabilities, pension obligations and minority interests this implies an enterprise value for EPCOS of around EUR1.4 billion. TDK currently holds around 2.5% of the current registered share capital of EPCOS and has secured delivery of a further around 7.0%. The offer document is expected to be published after approval by the German Federal Financial Supervisory Authority (BaFin � Bundesanstalt fuer Finanzdienstleistungsaufsicht) during August 2008. The offer is subject to certain conditions, including a 50% plus one share minimum acceptance threshold on a fully diluted basis, and regulatory approvals. TDK expects the offer to close by October. It is intended that the all-cash transaction will be financed by a bridge loan. Following the successful completion of the public tender offer, TDK will immediately begin the process of carving out its relevant passive components business. The objective is to combine this business with EPCOS' business under a new company, provisionally named TDK EP Components KK. This corporate separation is subject to the approval of TDK's general shareholders' meeting. Continuity Assured The parties have agreed that the Board of Directors of the new company will consist of three representatives from TDK and two from EPCOS and will oversee the management of the combined passive components businesses of TDK and EPCOS. Basic structural changes within EPCOS will require the support of all new company Board Members. The new company Board of Directors is committed to EPCOS' employees and customers and will preserve EPCOS' existing headquarters. The well-established TDK and EPCOS brands will continue to be used in the future. Combination to Create Benefits "With the signing of the BCA, we are pleased to have reached an important milestone on the road to a promising joint future," said Takehiro Kamigama, President and COO of TDK. "The customers, employees and shareholders of both companies will benefit from the combination of these two outstanding components companies which have decided to conduct their future business in the spirit of a merger of equals. Our very attractive offer presents full and immediate value to the shareholders of EPCOS." The Supervisory Board and the Management of EPCOS are fully supportive of the transaction and are expressly committed to EPCOS joining TDK. "TDK is one of the world's most successful components companies and is an excellent partner for us," explained Klaus Ziegler, Chairman of EPCOS' Supervisory Board. "With this strategy-oriented and financially strong majority shareholder, our company will noticeably gain standing and create an especially solid basis for future success." Combining the components businesses will enable both companies to concentrate more intensely on strengthening competitiveness and enhancing enterprise value. "The combination will create an industry-leading global player," said Gerhard Pegam, President and CEO of EPCOS. The outlook is very promising given that the components activities of TDK and EPCOS barely overlap and complement each other very well. That holds true technologically as well as with respect to the industries served and the geographical footprint of both parties. "TDK is well established primarily in Asia, the largest growth region, as well as in all application areas, particularly in consumer electronics and IT," noted Mr. Kamigama. "The especially strong position of EPCOS in Europe in the growth markets of automotive and industrial electronics and its global importance in mobile communications constitute an excellent fit. In addition, we expect synergy effects in R&D, purchasing and sales. Overall, the highly complementary nature of the businesses will create attractive opportunities for the employees and customers of both groups." TDK is looking forward to joining forces with management team and employees of EPCOS who will bring their highly valued commitment, experience and creativity into the partnership and work together with TDK for a successful future. About TDK TDK is a leading global electronics company based in Japan. It was established in 1935 to commercialize "ferrite", a key material in electronics and magnetic products. TDK's current product line includes ferrite materials, electronic components, wireless computer networking products, magnetic heads for HDD, and advanced digital recording media. About Epcos Headquartered in Munich, Germany, Epcos AG -- http://www.epcos.de/-- produces and supplies electronic components and modules. Its product portfolio includes multilayer ceramic components, capacitors, piezo actuators, thermistors, varistors, sensors and sensor systems, surge arresters, switching spark gaps, inductors, chokes and transformers. * * * Epcos AG carries BB+ short- and long-term corporate credit ratings from Standard & Poor's, which said the outlook is stable. EPCOS AG: TDK Tender Offer Cues S&P to Put Rating on Watch Pos. --------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with positive implications its 'BB+' long-term corporate credit rating on Germany-based passive electronic components manufacturer EPCOS AG. The CreditWatch placement reflects the announcement by Japan-based TDK Corp. (AA-/Watch Neg/A-1+) that it will launch a public tender offer for all outstanding EPCOS shares at EUR17.85 in cash per share, representing an enterprise value of about EUR1.4 billion, including pension liabilities. The offer is subject to certain conditions, including a 50%-plus-one-share minimum acceptance threshold on a fully diluted basis, and regulatory approvals. TDK expects the offer to close by October. Following the successful completion of the offer, TDK plans to carve out its combined passive components business (including EPCOS' business) into a new company. The ratings on TDK have been placed on CreditWatch with negative implications following the announcement -- indicating that a one notch rating downgrade is possible -- given the expected deterioration of its financial position. "If the tender offer is successful, EPCOS is likely to be upgraded several notches to an investment-grade rating," said S&P's credit analyst Matthias Raab. "A rating equalization with TDK is possible but not certain at this stage, as it would depend on certain factors such as the percentage of shares tendered to TDK, the expected long-term ownership of the newly formed company by TDK, and the level of financing support from the latter," said Mr. Raab. S&P expects to resolve the CreditWatch on EPCOS at the same time as that on TDK, which will likely be after the end of the tender offer. ESCADA AG: Moody's Confirms B2 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service has confirmed ESCADA AG Corporate Family Rating and senior unsecured rating on the notes due 2012 to B2 (LGD3, 47%). The rating action concludes the review process initiated on June 23, 2008 when the company announced the second profit warning in less than three months. The outlook on the ratings is left to negative. The rating confirmation reflects the relief on the company's liquidity profile following the announced signing of a new EUR90 million bank facility and a EUR50 million capital injection. According to Paolo Leschiutta, lead analyst at Moody's Investors Service for ESCADA, "Moody's expects the company's operating performance during the current financial year to remain under pressure given the current market conditions, however the recently announced measures partially remove the concerns on the company's liquidity profile". The analyst added: "Moody's recognizes the effort and the progress the company is making in restructuring its operations, however current soft consumer spending in key reference markets is likely to heighten the execution risk associated with the ESCADA Excellence program". Profitability and key credit metrics, such as financial leverage and fixed charge coverage, are likely to remain weak even for a B2 rating over the intermediate term, at time when free cash flow generation will be also under pressure given the lower expected cash flow from operation in conjunction with the planned investments by the company. The negative outlook reflects Moody's view that 2008 will remain a year of transition for ESCADA as the pressure on top line and the relative high operating leverage of Group's activities reduce the company's flexibility and that, as a consequence, profitability is likely to remain under pressure beyond October 2008 as the company implements its restructuring program. The outlook also reflects the current economic conditions and the fact that consumer spending is likely to remain low over the intermediate term. The outlook could be changed to stable following the clear evidence of improvements in operating margins and successful implementation of the restructuring program. Additional erosion in operating performance declining below new company estimates and deterioration in working capital management that had to lead to financial leverage, measured as Debt to EBITDA, to exceed 6x and fixed charge coverage, measured as (EBITDA - Capex) to Interest Expenses, below 1x on a sustained basis could result in further negative pressure on the rating. Ratings could be also downgraded in case the new bank facility, maturing December 2009, is not refinanced in a timely manner or in the case of a change in Moody's perception of current market conditions. The following ratings have been confirmed: * Corporate Family Rating of B2; * Senior Unsecured rating on the EUR 200 million notes due 2012 of B2 (LGD3, 47%); ESCADA, headquartered in Munich, is one of the leading European manufacturers and distributors of ready-to-wear luxury apparel for women. In the financial year ended Oct. 31, 2007, the company reported consolidated sales of EUR686 million and EBITDA of EUR68.2 million. As at half year April 30, 2008, the company reported consolidated sales of EUR295.6 million and EBITDA of EUR19.3 million. FRESENIUS SE: US$2.4BB Debt Issue Won't Affect Fitch's Ratings -------------------------------------------------------------- Fitch Ratings says it does not expect Fresenius SE's planned issuance of US$2.4 billion of secured debt to have any impact on the 'BB' senior unsecured ratings of both the company and its main rated subsidiary, Fresenius Medical Care AG Co. KGaA. The total debt issue includes a five-year term loan A of US$850 million, a six-year term loan B of US$900 million and a revolver of US$650 million. Both the term loans and US$150 million of the revolving facility will be used to finance Fresenius SE's acquisition of APP Pharmaceuticals Inc. The drawn amount of secured debt will account for about 40% of the total financing package for APP Pharmaceuticals Inc, upon completion. Although the debt issue will increase the group secured debt as a percentage of consolidated EBITDA, to around 2x on a fully drawn basis based on forward looking pro-forma 2009 EBITDA, Fitch does not consider this to be material enough to trigger a downgrade of the senior unsecured debt of Fresenius SE and FMC. Fitch expects this ratio to decline in the short-to-medium term, helped by an increase in EBITDA and a reduction in the amount of consolidated secured debt. Therefore, Fitch continues to assume average recovery prospects for unsecured creditors upon default. To determine the materiality of the senior secured debt in the debt structure, Fitch uses a consolidated approach given the control Fresenius SE has over FMC and the centralized treasury in place, among other factors. On July 7, 2008 Fitch changed Fresenius SE's and FMC's Long-term Issuer Default rating Outlooks to Negative from Stable and affirmed their Short-term IDRs and instrument ratings. This followed Fresenius SE's agreement to purchase APP Pharmaceuticals Inc., a leading manufacturer of generic I.V. drugs in North America, for a cash consideration of US$3.7 billion plus an additional US$0.9 billion of net debt assumed and a contingent value right. Fitch currently rates Fresenius as: Fresenius SE: -- Long-term Issuer Default rating at 'BB' with Outlook Negative -- Short-term IDR at 'B' -- Senior unsecured debt rating at 'BB' Fresenius Finance B.V.: -- Senior unsecured debt rating for guaranteed senior notes at 'BB' Fresenius Medical Care AG & CO. KGaA (FMC): -- Long-term IDR at 'BB' with Negative Outlook -- Short-term IDR at 'B' -- Senior unsecured debt rating at 'BB' Fresenius Medical Care Capital Trusts: -- Subordinated rating for guaranteed trust preferred securities at 'B+' GB WORLD: Claims Registration Period Ends August 11 --------------------------------------------------- Creditors of GB World GmbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Ulrich Kraft. Creditors and other interested parties are encouraged to attend the meeting at 9:40 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 of Friedberg (Hessen) Hall 20a Homburger Strasse 18 61169 Friedberg (Hessen) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Kraft Hanauer Landstrasse 215 60314 Frankfurt am Main Germany Tel: (069) 4035 31-0 Fax: (069) 4035 31-15 The District Court of Friedberg (Hessen) opened bankruptcy proceedings against GB World GmbH on June 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GB World GmbH Hasselheckerstrasse 23 61239 Ober-Moerlen Germany GESELLSCHAFT ZUR: Claims Registration Period Ends August 11 ----------------------------------------------------------- Creditors of Gesellschaft zur Foerderung des Zimmerer- u. Holzbaugewerbes mbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Dr. Michael Jaffe. Creditors and other interested parties are encouraged to attend the meeting at 9:20 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Michael Jaffe Franz-Joseph-Str. 8 80801 Munich Germany Tel: 089/255487-00 Fax: 089/255487-10 The District Court of Munich opened bankruptcy proceedings against Gesellschaft zur Foerderung des Zimmerer- u. Holzbaugewerbes mbH on June 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gesellschaft zur Foerderung des Zimmerer- u. Holzbaugewerbes mbH Eisenacher Str.17 80804 Munich Germany GP CARGO: Claims Registration Period Ends August 13 --------------------------------------------------- Creditors of GP Cargo Beteiligungs- und Verwaltungs-GmbH have until Aug. 13, 2008, to register their claims with court- appointed insolvency manager Andreas Schoss. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Hagen Meeting Hall 252 Second Floor Heinitzstrasse 42/44 58097 Hagen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Schoss Alter Markt 9 - 13 42275 Wuppertal Germany The District Court of Hagen opened bankruptcy proceedings against GP Cargo Beteiligungs- und Verwaltungs-GmbH on June 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GP Cargo Beteiligungs- und Verwaltungs-GmbH Willertshagener Str. 2 a 58540 Meinerzhagen Germany Attn: Udo Schneider, Manager Koelner Str. 148 57290 Neunkirchen Germany GRAAFF TRANSPORTSYSTEME: Claims Registration Period Ends Aug. 11 ---------------------------------------------------------------- Creditors of Graaff Transportsysteme GmbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Helge Wachsmuth. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Hildesheim Hall 124 Main Building Kaiserstrasse 60 31134 Hildesheim 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: Helge Wachsmuth Alexanderstr. 2 30159 Hannover Germany Tel: 0511/325095 Fax: 0511/329934 The District Court of Hildesheim opened bankruptcy proceedings against Graaff Transportsysteme GmbH on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Graaff Transportsysteme GmbH Heinrich-Nagel-Str. 1 31008 Elze Germany LASER CARE: Claims Registration Period Ends August 11 ----------------------------------------------------- Creditors of Laser Care GmbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Undine Haller. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Aug. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Heilbronn Hall 4 Ground Floor Rollwagstr. 10a 74072 Heilbronn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Undine Haller Bismarckstrasse 39 74074 Heilbronn Germany Tel: 07131/173032 Fax: 07131/171112 The District Court of Heilbronn opened bankruptcy proceedings against Laser Care GmbH on July 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Laser Care GmbH Danziger Strasse 6-8 74613 Oehringen Germany LEAR CORP: Names William Mattingly VP for Global Electrical Biz --------------------------------------------------------------- Lear Corporation has appointed William Mattingly as vice president - Engineering, Global Electrical and Electronics, effective Aug. 1, 2008. Mr. Mattingly will report to Mr. Ray Scott, president of Lear's Global Electrical and Electronics business, and will be responsible for global engineering, including new product innovation, product development and on-going technical support of Lear's electrical and electronics portfolio. He also will lead Lear's new global Center of Excellence for hybrid electric and high-voltage power systems located on the Company's Southfield Campus, as well as the globalization of wireless products, terminals and connectors and smart junction box technology. Mr. Ray Scott, said, "A priority for Lear is to expand its presence in the global automotive Electrical and Electronics segment. To support our growth and margin improvement objectives, we need world-class engineering support to execute our plan. I am extremely pleased to welcome someone with Bill's industry knowledge and experience in automotive electronics to lead Lear's global electrical and electronics engineering team in developing and designing innovative solutions for this rapidly expanding product segment." About Lear Corporation Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) - http://www.lear.com/-- supplies automotive interior systems, electrical distribution systems and related electronic products. The company has around 91,000 employees at 215 facilities in 35 countries. Outside the United States, Lear has subsidiaries in Germany, Luxembourg, Sweden, Singapore, China, India and Mexico, among others. * * * Lear Corp. still carries Standard & Poor's Ratings Services' B+ corporate credit, Long-Term Foreign and Local Issuer Credit ratings, which the rating agency affirmed in May 2008. Lear Corp. also carries B2 Corporate Family, Bank Loan Debt and Probability-of-Default ratings, and B3 Senior Unsecured Debt rating from Moody's Investors Service, which said the outlook is stable. LULIGHT GMBH: Claims Registration Period Ends August 11 ------------------------------------------------------- Creditors of LuLight GmbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Jens Hamdorf. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 1, 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 Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens Hamdorf Treugarant AG Hallerstr. 76 20146 Hamburg Germany Tel: 040/4146380 Fax: 040/445635 The District Court of Lueneburg opened bankruptcy proceedings against LuLight GmbH on July 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LuLight GmbH Landesstrasse 7 21400 Neu Wendhausen Germany MARCANT-SANITAR-GMBH: Claims Registration Period Ends August 11 --------------------------------------------------------------- Creditors of Marcant-Sanitar-GmbH have until Aug. 11, 2008,to register their claims with court-appointed insolvency manager Christina Koerber-Reith. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Christina Koerber-Reith Bauerngasse 21 90443 N�rnberg Germany The District Court of Nuremberg opened bankruptcy proceedings against Marcant-Sanitar-GmbH on June 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Marcant-Sanitar-GmbH Attn: Heinrich Maurer Zum Anger 2 91177 Thalmassing Germany NEN-ELEKTRONIK GMBH: Claims Registration Period Ends August 11 -------------------------------------------------------------- Creditors of NEN-Elektronik GmbH New Electronic Networks have until Aug. 11, 2008, to register their claims with court- appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 8:10 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 Nordhorn Hall 42 Seilerbahn 15 48529 Nordhorn 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 Sontopski Gnoiener Platz 10 48493 Wettringen Germany Tel: 02557/93840 Fax: 02557/938450 The District Court of Nordhorn opened bankruptcy proceedings against NEN-Elektronik GmbH New Electronic Networks on June 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: NEN-Elektronik GmbH New Electronic Networks Denekamper Strasse 237 48529 Nordhorn Germany OEKO-BAU GMBH: Claims Registration Period Ends August 11 -------------------------------------------------------- Creditors of oeko-bau GmbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Joerg Riedemann. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Sept. 1, 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 Dessau Hall 123 Willy-Lohmann-Str. 33 Dessau 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: Joerg Riedemann Muehlweg 47 06114 Halle Germany Tel: 0345/293900 Fax: 0345/2939029 The District Court of Dessau opened bankruptcy proceedings against oeko-bau GmbH on June 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: oeko-bau GmbH Attn: Heiko May and Volker Lesko, Managers Eisenbahnstrasse 37 06766 Bitterfeld-Wolfen Germany PFLEIDERER AG: Revenue Up 3.5% to EUR917 Mln in 2008 First Half --------------------------------------------------------------- On the basis of preliminary figures, Pfleiderer AG increased its consolidated revenue in the first half of 2008 by 3.5% to EUR917 million (H1 2007: EUR886 million). The regions of Western Europe and Eastern Europe were the growth drivers, while revenue decreased in North America primarily due to the closure of the La Baie plant and exchange-rate effects. Earnings before interest, taxes, depreciation and amortization of EUR119 million were similar to the prior-year level (H1 2007: EUR121 million). Earnings were impacted by rising prices for raw materials and reduced scope for price adjustments. EBIT also includes expenses of EUR9.8 million for the closure of the MDF plant in La Baie, Canada. EBIT amounted to EUR55 million, compared with EUR70 million in the first half of 2007. Earnings per share for the first half of 2008 were 10 euro cents (H1 2007: 43 euro cents). Without the plant closure of La Baie, earnings per share would have been 22 euro cents. Pfleiderer AG assumes that its business in the second half of 2008 could be affected by the economic consequences of the ongoing crisis of the financial markets. At present therefore, Pfleiderer AG sees only limited opportunities to pass on the increases in raw-material costs to the required extent in the short term. The targets set last year of EUR2 billion revenue and a 15% EBITDA margin in full-year 2008 must therefore be questioned. At present, a shortfall on both targets of 5% to 15% is anticipated, but from today's perspective, the company expects to surpass last year's EBITDA. About Pfleiderer Headquartered in Neumarkt, Germany, Pfleiderer AG -- http://www.pfleiderer.com/-- manufactures engineered woods and infrastructure products through its subsidiaries. The Company produces wood-based panels for furniture and interior fittings, track systems for urban and intercity rail networks, and a range of poles and towers for energy and commercial infrastructures. * * * Pfleiderer AG continues to carry Ba2 Corporate Family rating with stable outlook from Moody's Investor Service. The company also continues to carry BB+ Issuer Default and B short-term ratings from Standard & Poor's. PFLEIDERER: Moody's Reviews Ba2 CFR for Possible Downgrade ---------------------------------------------------------- Moody's Investors Service has placed the Ba2 Corporate Family Rating of Pfleiderer AG and the B1 Junior Subordinate Rating of its subordinated guaranteed finance subsidiary Pfleiderer Finance B.V. on review for possible downgrade. The review was prompted by (1) Pfleiderer's recent announcement that sales and operating margins may decline in 2008 by 5-15% from initial indications following the weakening of the North American market combined with difficulties in Eastern Europe, especially in Poland, (2) Moody's view that Pfleiderer may be challenged to visibly improve key credit metrics measured as Debt/EBITDA (Debt/EBITDA on a LTM basis as per end of March 2008: 3.9x), as was expected in the Ba2 rating, against the backdrop of increasing raw materials which may be challenging to pass on to customers and (3) Pfleiderer's relatively weak capital structure following the acquisition of Pergo in the beginning of 2007 for EUR300 million and the execution of share buy-backs in combination with the expectation of weaker markets going forward. The review will focus on the impact of the company's revised outlook for the full year on the operating performance and leverage metrics of the company in 2008 and beyond and the measures which the company takes to tackle the weaknesses in some of its major markets. The initial rating assignment of Ba2 had assumed that Pfleiderer will improve its leverage ratios (cash flow to debt and debt to EBITDA) over time following the positive contribution from the Pergo acquisition. This is no longer expected to materialize in full-year 2008, which puts the rating under downward pressure. Moody's expects the rating downgrade, if any, to be limited to one rating notch. Moody's previous rating action on Pfleiderer was the initial assignment of the Ba2 Corporate Family Rating with a stable outlook in April 2007. On Review for Possible Downgrade: ..Issuer: Pfleiderer AG ....Corporate Family Rating, Placed on Review for Possible Downgrade, currently Ba2 ..Issuer: Pfleiderer Finance B.V. ....Junior Subordinated Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B1 Outlook Actions: ..Issuer: Pfleiderer AG ....Outlook, Changed To Rating Under Review From Stable ..Issuer: Pfleiderer Finance B.V. ....Outlook, Changed To Rating Under Review From Stable Headquartered in Neumarkt/Germany, Pfleiderer AG, is one of the leading manufacturers of engineered wood in Europe and North America. Group sales and operating result in 2007 amounted to EUR1.8 billion and EUR137 million respectively. PREPS 2005-2: Fitch Puts 'B' Rated Notes Under Negative Watch ------------------------------------------------------------- Fitch Ratings has placed PREPS 2005-2 PLC's notes due December 2014 on Rating Watch Negative, as: -- EUR204,329,696.39 Class A1 notes (ISIN: XS0236849005): 'AA' on RWN, -- EUR49,905,409.72 Class A2 notes (ISIN: XS0236849427): 'AA' on RWN, -- EUR41,500,000 Class B1 notes (ISIN: XS0236849930): 'B' on RWN, -- EUR12,500,000 Class B2 notes (ISIN: XS0236850862): 'B' on RWN. Fitch released two new criteria on 30 April 2008: new Global Criteria for Corporate CDO/CLOs and new Global Criteria for Cash Flow Analysis in Corporate CDOs. At that time, Fitch noted that it would be reviewing its ratings with these two new criteria to establish consistency for existing and new transactions, and these rating actions are a result of this review. This transaction is a cash securitization of subordinated loans to medium-sized enterprises in five jurisdictions, namely Germany, Austria, Switzerland, Italy, and Belgium. As of the review in July 2008, based on the latest portfolio information available, the portfolio contained 58 performing obligors. The largest exposure accounted for 4.1% of the performing portfolio amount and the top three obligors 12.3% of the portfolio. Since closing, there have been three defaults. One other loan agreement has been terminated with an expectation to partially prepay in the future. As highlighted in the investor report dated June 2008, five of the remaining assets are under risk management process and one further portfolio company delayed the quarterly payment, together comprising 15.1% of the performing portfolio. The current amount of the principal deficiency ledger equals EUR31.6 million. If no further principal deficiency events occur, Fitch expects that this amount would not be repaid to Class A noteholders until the scheduled maturity date. In Fitch's opinion, among five Fitch-rated PREPS transactions PREPS 2005-2 PLC and PREPS 2006-1 plc are performing worse than the rest. The securitised debt instruments comprising the portfolio are deeply subordinated. As a result, Fitch assumes no recovery in its analysis. In addition to default simulations using its Portfolio Credit Model, Fitch has performed cash-flow analysis to stress possible interest rate and default timing patterns. The transaction benefits from high levels of excess spread and a principal deficiency mechanism for excess spread trapping. The structure is most sensitive to front-loaded default timing. Based on this analysis, the credit enhancement derived from both subordination and excess spread is not sufficient to justify the current ratings of the notes. As no further portfolio deterioration has been observed since the review by Fitch in December 2007 the Negative Watch status is, to a large extent, attributable to the CDO methodology change. Moreover, Fitch is reviewing its default assumptions for SME CDOs. Accordingly, given the limited number of obligors in this transaction, previously applied portfolio approaches to assessing underlying credit quality may not sufficiently reflect the risk of the individual borrowers. Additionally, the resolution of the Negative Watch status will depend on the updated credit profiles of the underlying obligors. Based on the latter two points the guidance provided regarding the potential downgrade actions is broad: -- Class A1 notes: Likely to be downgraded within the investment grade range -- Class A2 notes: Likely to be downgraded within the investment grade range As the Class B1 and Class B2 notes were downgraded to 'B' on 10 December 2007, no guidance regarding the potential downgrade actions will be provided. The resolution of the Negative Watch status will incorporate any changes made to the portfolio or the transaction along with additional portfolio migration. Updated annual financial information regarding the underlying portfolio is expected to become available over the next few months, which could have a material impact on the ratings. SON-TRANS GMBH: Claims Registration Period Ends August 12 --------------------------------------------------------- Creditors of SON-Trans GmbH have until Aug. 12, 2008, to register their claims with court-appointed insolvency manager Dr. Tibor Braun. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 24, 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 Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Str. 28 Ludwigsburg 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. Tibor Braun Kriegerstrasse 3 70191 Stuttgart Germany Tel: 0711 22 55 83-0 The District Court of Ludwigsburg opened bankruptcy proceedings against SON-Trans GmbH on July 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SON-Trans GmbH Attn: Yakup Zeybek, Manager Hertichstrasse 10 71229 Leonberg AG Stuttgart Germany STADTNET GMBH: Claims Registration Period Ends August 11 -------------------------------------------------------- Creditors of StadtNet GmbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Martin Schoebe. Creditors and other interested parties are encouraged to attend the meeting at 9:15 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Martin Schoebe Ainmillerstr. 11 80801 Munich Germany Tel: 089/18 93 77 0 Fax: 089/18 93 77 50 The District Court of Munich opened bankruptcy proceedings against StadtNet GmbH on June 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: StadtNet GmbH Infanteriestrasse 5 80325 Munich Germany Tel: 089/5597-06 Fax: 089/5597-2777 TECH-SOLUTIONS GMBH: Claims Registration Period Ends August 11 -------------------------------------------------------------- Creditors of Tech-Solutions GmbH have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Rainer Bachert. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Sept. 22, 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 Mannheim Hall 232 Second Floor Schloss 68149 Mannheim 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: Rainer Bachert Hauptstr. 161 68259 Mannheim Germany Tel: 0621/43288990 The District Court of Mannheim opened bankruptcy proceedings against Tech-Solutions GmbH on July 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tech-Solutions GmbH Attn: Monika Florian, Manager Buergermeister-Fuchs-Strasse 63 68169 Mannheim Germany WAGGONBAU ELZE: Claims Registration Period Ends August 11 --------------------------------------------------------- Creditors of Waggonbau Elze GmbH & Co. Besitz-KG have until Aug. 11, 2008, to register their claims with court-appointed insolvency manager Helge Wachsmuth. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Hildesheim Hall 13 Main Building Kaiserstrasse 60 31134 Hildesheim 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: Helge Wachsmuth Alexanderstr. 2 30159 Hannover Germany Tel: 0511/325095 Fax: 0511/329934 The District Court of Hildesheim opened bankruptcy proceedings against Waggonbau Elze GmbH & Co. Besitz-KG on June 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Waggonbau Elze GmbH & Co. Besitz-KG Attn: Guenter Homes and Eberhard Miehlke, Managers Heinrich-Nagel-Str. 1 31008 Elze Germany W + N SPANDAU: Creditors Meeting Slated for September 29 -------------------------------------------------------- The court-appointed insolvency manager for W + N Spandau Motors GmbH & Co. KG, Dr. Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:20 a.m. on Aug. 13, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 10:15 a.m. on Nov. 26, 2008, at the same venue. Creditors have until Sept. 29 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against W + N Spandau Motors GmbH & Co. KG on DATE. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: W + N Spandau Motors GmbH & Co. KG Am Juliusturm 13-29 13599 Berlin Germany =========== G R E E C E =========== ANTENNA TV: Sells Nova TV Bulgaria to MTG for EUR620 Million ------------------------------------------------------------ Modern Times Group MTG AB has signed an agreement to acquire 100% of Nova Televisia Bulgaria for EUR620 million in cash, on a cash and debt free basis and subject to closing adjustments, from Antenna Bulgaria, a member of the Kyriakou-owned Antenna Group. Nova Televisia Bulgaria was established in 1994 and owns 100% of "Nova", the second most watched TV channel in Bulgaria, as well as 80% of leading Bulgarian women's magazine "EVA". The Nova commercial TV channel had an 18.2% share of viewing amongst the target audience group of 18-49 year olds in the first half of 2008, and an approximately 32.4% share of the EUR 125 million Bulgarian net TV advertising market in 2007. Nova has an urban-focused, young and predominantly female audience profile, and broadcasts a wide range of local content, as well as successful international formats such as "Big Brother", "CSI", "House", "Prison Break" and "Ugly Betty". Nova is broadcast under a national terrestrial free-TV license, as well as on cable and satellite networks, and is available to 99% of people meter panel households in Bulgaria. MTG already operates the family of Diema channels in Bulgaria through its 50% controlling interest in Balkan Media Group Limited. The Diema channels had a 10.0% combined share of viewing (18-49) in the first half of 2008. The transaction is expected to yield significant synergies for MTG's Bulgarian TV operations going forward, and to facilitate the further development of MTG's "media house" approach in the Bulgarian TV market. The Bulgarian TV advertising market grew by 30% in 2007 and is expected to continue to demonstrate high levels of growth in the coming years. Nova Televisia Bulgaria generated a 54% year on year increase in net sales to EUR42.0 (27.3) million in 2007, and a more than doubling of EBIT to EUR19.1 (8.1) million with an increased operating margin of 45.5% (29.7%). The acquisition will be financed from MTG's existing available liquid funds and from new debt financing. MTG is in the process of arranging approximately SEK 3 billion of additional debt funding, in order to fully finance the transaction and provide continued flexibility for the Group. MTG generated SEK2.0 billion of EBIT in 2007 and SEK2.4 billion in the first six months of 2008 (including a SEK1.2 billion gain from the sale of DTV Group Russia). The transaction is subject to approval by the relevant regulatory authorities and is expected to be completed within approximately three months. Hans-Holger Albrecht, President and CEO of MTG, commented: "The acquisition is our largest to date, and substantially strengthens our position in one of Europe's fastest growing and most attractive broadcasting markets. It further demonstrates our commitment to expand our operations into high growth emerging markets, and to extend our successful multi-channel multi-country business model. Nova has outperformed the growth in the Bulgarian advertising market and generates healthy margins. Its market position as the primary challenger to the incumbent, as well as the channel's complementary programming mix and audience profile, fit well with our existing operations. We look forward to further accelerating the channel's development and capitalizing on its potential. "The acquisition will create significant synergies for us as a media house, as we already operate the Diema group of TV channels in Bulgaria. It will not only boost MTG's sales growth and operating margins, but also accelerate our progress towards the achievement of the five year strategic objectives that we set last year. "We have historically strengthened our balance sheet precisely in order to have the financial flexibility to seize opportunities such as this. The gearing levels that will result will optimize our overall capital structure, and are moderate when compared with the strong cash flow generation from our existing operations". MTG is being advised on the acquisition of Nova Televisia Bulgaria by JP Morgan. Headquartered in Athens, Greece, Antenna TV S.A. -- http://www.antenna.gr/-- operates Antenna TV (the leading television broadcast network and producer of television programming in Greece), Antenna FM (a radio station in the greater Athens area), and also has a 50% interest in Daphne, a publishing company with a portfolio of 13 magazines. Antenna also owns 100% of Nova Television, one of only two private national television networks in Bulgaria. * * * Antenna TV S.A. continues to carry 'B' long-term corporate credit and senior unsecured debt ratings from Standard & Poor's with negative outlook. S&P affirmed the ratings on the group in June 2008. ANTENNA TV: EUR620 Million Asset Sale Cues S&P's WatchDeveloping ---------------------------------------------------------------- Standard & Poor's Ratings Services has placed its 'B' long-term corporate credit rating on Greek broadcaster Antenna TV S.A. on CreditWatch with developing implications, following the announcement that Antenna has agreed to sell its Bulgarian TV business, Nova Televizia, to Modern Times Group MTG AB for about EUR620 million in cash. "While the sale will considerably strengthen Antenna's capital structure and liquidity, we don't expect the related funds to remain on balance sheet for long," said S&P's credit analyst Melvyn Cooke. S&P expects the cash proceeds from the disposal to be used for expansion plans, which the group has said it hasn't yet finalized. The group's ratings, after completion of the transaction and upon resolution of the CreditWatch status, will depend on the size and creditworthiness of the asset or assets that Antenna decides to buy and/or invest in using the disposal proceeds. The ratings evolution will also depend on the group's financial policy, capital structure, and liquidity once it has completed its expansion plans. The sale of Nova Televizia, while subject to regulatory approval, is expected to be completed over the next three months. S&P will continue to closely monitor the situation and expect to update or resolve the CreditWatch status once it has more information about the group's financial policy and expansion plans, as well as on Antenna TV's capital structure and liquidity after completion of any such acquisitions and/or investments. "Any potential rating upside deriving from the group's expansion plans would primarily depend on our assessment of the group's medium-term capital structure and liquidity, as well as Antenna's ability to replace Nova Televizia with an asset or assets of similar creditworthiness," said Mr. Cooke. Potential upside could also come from a turnaround of operating performance at Antenna1. On the other hand, if such a scenario didn't materialize, and/or if the cash proceeds were to be used for aggressive shareholder return actions, the ratings could be affirmed or lowered. ============= I R E L A N D ============= ELAN CORP: Rating Unaffected by Drug Trial Results, S&P Says ------------------------------------------------------------ Standard & Poor's Ratings Services said that its rating and outlook on Elan Corp. PLC (B/Positive/--) are not affected by the company's mixed Phase II clinical trial results for its Alzheimer's drug, bapineuzumab. The rating and outlook are predicated on the continued growing sales of the company's main franchise, Tysabri (for the treatment of multiple sclerosis), and S&P's expectations that the company will turn profitable in the near-to-intermediate term. S&P also expects the company to properly address its upcoming debt maturities in 2011 and 2013. While the latest clinical data creates uncertainty as to the launch, timing, and commercial prospects of bapineuzumab, the drug's R&D costs and S&P's analysis of Elan's pipeline are already incorporated into the current rating and outlook. ========= I T A L Y ========= ALITALIA SPA: Net Debt Reaches EUR1.115 Billion at June 30, 2008 ---------------------------------------------------------------- The Alitalia Group's net debt as of June 30, 2008 amounted to EUR1.115 billion, showing a slight decrease in net indebtedness of EUR6 million compared to the situation on May 31, 2008, announced on June 30, 2008; regarding the EUR300 million cashed according to legislative decree no. 80 of April 23, 2008 and the subsequent legislative decree no. 93 of May 27, 2008, it should be noted that this amount is not included in the indebtedness mentioned, since it is not possible to determine at present how much will be used according to decree no. 93 of May 27, 2008; The net debt of the parent company Alitalia on June 30, 2008, including short-term financial credits and debts for subsidiaries, amounted to EUR1.106 billion showing a slight decrease of EUR2 million (-0.2%) compared to net debt as of May 31, 2008; regarding the EUR300 million cashed according to legislative decree no. 80 of April 23, 2008 and the subsequent legislative decree no. 93 of May 27, 2008, it should be noted that this amount is not included in the indebtedness mentioned, since it is not possible to determine at present how much will be used according to decree no. 93 of May 27, 2008. The Group's cash-to-hand and short-term financial credits as of June 30, 2008, at the Group level and for Alitalia, amounted to 375 and 392 million respectively (the corresponding figures on May 31, 2008 were EUR388 million and EUR401 million). Group's short-term financial indebtedness, as of June 30, 2008, amounted to EUR173 million. It should be noted that as of June 30, 2008, there were several leasing contracts at the Group level (referring almost entirely to fleet aircraft mostly held by the parent company amounting to EUR78 million) whose capital share, including lease closure value, amounted to EUR89 million. By comparison, the same figure as of May 31, 2008, amounted to EUR90 million, of which EUR12 million falling due in the twelve months from the reference date. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During June 2008, repayments were made of medium/long-term financing amounting to about EUR20 million. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on June 30, 2008, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, decisions are still pending for the petitions filed by Alitalia regarding: * an injunction related to supposed different pricing policies issued by a carrier for EUR6 million (two decrees); * another injunction issued by a supplier of on-board movies for EUR1.2 million (two decrees); * a further injunction has been issued by an IT services supplier for EUR812,000; * an injunction has been issued by an Italian subsidiary of an air carrier bankruptcy for EU288,000; * another injunction has been issued by a maintenance services supplier for EUR492,000; * a further injunction has been issued by the special manager of a firm for presumed debts relating to air ticket sales, for EUR3.2 million; * one injunction issued by a fuel supplier (airport rights) for about EUR1 million; * another injunction has been issued by an airport management company for limited failure to pay handling fees for about EU375,000; * an injunction has been issued by a supplier of several services for EUR112,000. There are no other injunction orders or executive actions undertaken by creditors notified as of June 30, 2008, nor are there any threats by suppliers to suspend operations. It should be pointed out that, as part of ordinary management practices, the Company is committed to maintaining commercial relations with its customers and suppliers who guarantee -� in the absence of critical situations or operational emergencies �- the necessary financial flexibility in support of cash-to-hand requirements. About Alitalia Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. * * * Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million in 2006, and EUR494.64 million in 2007. BERICA 6: S&P Puts BB Rating on Class D Notes on WatchNegative -------------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its credit rating on the class D notes issued by Berica 6 Residential MBS S.r.l. S&P has also affirmed its ratings on the remaining classes of notes. The rating actions follow a review of the Berica 6 transaction in light of the recent performance of the underlying asset pool. The pool has experienced an increase in delinquencies and defaults over the past few quarters. At the latest interest payment date, the cumulative gross defaults for Berica 6 were 2.34%, which is higher than the other Berica transactions and other Italian RMBS transactions with similar seasoning. The delinquencies for Berica 6 are also higher than average. Delinquencies between 30 and 90 days due have now stabilized in the 2.5%-3.5% range, while the trend for 90+ day delinquencies is higher than in transactions with similar seasoning and collateral characteristics. On the most recent interest payment date, Berica 6 drew under its cash reserve for a seventh consecutive time. The cash reserve is now EUR10.5 million, 43% lower than its target amount of EUR18.5 million and 7.3% lower than at closing (EUR11.4 million). On the first two interest payment dates, the transaction had topped up its cash reserve to the target amount of EUR18.5 million by trapping excess spread of EUR7.1 million. The drawings were all made to cover defaulted and delinquent loans. Berica 6 features a structural mechanism that traps excess spread to cover 100% of the balance of defaulted mortgages, and 15% of the balance of delinquent loans. As a result of excess spread trapping and the drawings under the cash reserve, the balance of the notes is now approximately EUR30 million lower than the collateral balance. Mortgage loans in Berica 6 are defined as being defaulted if they are 12 months in arrears. The definition of delinquencies is five missed installments for loans paying monthly, and one missed installment for semi-annual loans. The pool factor is currently 78.9%. The weighted-average loan-to-value ratio of the pool has decreased to 63.7% from 69% at closing. In terms of geographical distribution, the pool is in line with the closing figures. The average seasoning is now 42 months. Class D note interest is paid only after the replenishment of the cash reserve. As a result of the top-up of the cash reserve on the first interest payment date and the repeated reserve fund drawings, interest payments have been skipped in seven out of 10 interest payment dates. As of the latest interest payment date the unpaid interest on the class D notes was EUR886,000. Ratings List: -- EUR1,427.65 Million Mortgage-Backed Floating-Rate Notes (Plus An Over-Issuance Of EUR8.565 Million Mortgage-Backed Deferrable-Interest Class D Notes) Ratings Placed On CreditWatch With Negative Implications: Class To From ----- -- ---- D BB/Watch Neg BB Ratings Affirmed: A2 AAA B A+ C BBB+ PARMALAT SPA: UniCredit Group Settles for EUR271.7 Million ---------------------------------------------------------- Parmalat S.p.A. has reached an agreement with the UniCredit Group settling all transactions and claims between the parties in any way related to the period prior to the date when the Parmalat Group was declared insolvent (December 2003). Consequently, Parmalat S.p.A. is ceasing all actions to void and actions for damages that it has filed or could possibly file in the future against the UniCredit Group. In consideration of this agreement, the UniCredit Group will pay Parmalat S.p.A. EUR229.7 million. Similar settlement agreements have been executed by the banks of the UniCredit Group, on the one hand, and the Extraordinary Administration Commissioner of the Parmatour Group, Parma Associazione Calcio and the other companies of the old Parmalat Group currently under extraordinary administration on the other hand. Pursuant to these agreements, the UniCredit Group will pay: * EUR37 million to the companies of the Parmatour Group; * EUR4 million to Parma Associazione Calcio; and * EUR1 million to the other companies under extraordinary administration (licensee companies, Streglio, Eliair, Parmalat Molkerei and Deutsche Parmalat), Unicredit also waived all verified claims it may hold against the companies. Moreover, the UniCredit Group waived all claims put forth in actions filed against companies under extraordinary administration challenging or demanding the verification of claims and, more in general, any and all claim for damages, thereby minimizing the impact of the remaining disputes. For his part, the Extraordinary Commissioner agreed to waive any further claims or actions to void or actions for damages filed against the UniCredit Group for aiding and abetting in bringing about and/or aggravating the financial collapse of various companies. The Extraordinary Commissioner further agreed to refrain from joining as plaintiff seeking damages in any of the pending criminal proceedings. Parmalat, UniCredit and the Extraordinary Commissioner express their satisfaction at the agreement reached. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. TISCALI SPA: Unit Partners with Equinix for European Expansion -------------------------------------------------------------- Tiscali International Network has selected Equinix Inc. as a strategic partner for the expansion of the carrier's European network initially from Equinixs Frankfurt and Paris Internet Business Exchange data centers. Paolo Gambini, Sales and Marketing Director at TINet, "We have partnered with Equinix in Europe because of the high quality and reliability of their IBX data centers as well as for the opportunities Equinix offers to interconnect with important players and key customers across the world, providing TINet with an opportunity to expand our global network while enhancing reliability and performance and reducing overall costs. To strengthen our presence in the European data center facilities of Equinix is part of our expansion plans of TINet footprint worldwide." Mr. Michael Winterson, vice president of sales and marketing for Equinix Europe, comments, "Equinix is pleased to have TINet join our network partners, providing access to Europe's important expanding markets. They bring comprehensive Internet network expertise and a recognized reputation, providing high performance network services to the customers and partners in Equinix's European data center network. We look forward to working together and assisting them in meeting their European growth targets." TINet offers IP Transit, MPLS lines and long distance Ethernet services to major service providers in North America, Hong Kong, Singapore and across Europe. TINet has an extensive network of close to 100 IP/MPLS PoPs and prides itself of being a specialist providing exclusively wholesale services to service and content providers worldwide. It is also one of the few companies in Europe to have a "next generation Internet" network in actual production. About Tiscali Headquartered in Cagliari, Italy, Tiscali S.p.A. -- http://www.tiscali.com/-- offers Internet access in the country. The group also operates in other European countries, serving more than seven million subscribers, of which over 1.5 million are broadband users. Tiscali posted consecutive net losses for the past years: EUR5.5 million in 1999, EUR101 million in 2000, EUR1.66 billion in 2001, EUR593.1 million in 2002, EUR242.4 million in 2003, EUR131.8 million in 2004, EUR12.9 million in 2005, and EUR103.6 million in 2006. It posted EUR3.88 million in net losses on EUR614.33 million in net revenues for the nine months ended Sept. 30, 2007. * * * Tiscali S.p.A. continues to carry Standard & Poor's Ratings Services' B+ long-term corporate credit rating. The rating was previously at B and was raised by S&P to its current level in February 2008. =================== K A Z A K H S T A N =================== AKSUSKOYE ATP: Creditors Must File Claims by September 17 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Aksuskoye ATP insolvent. Creditors have until Sept. 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 AKTAU LAVA: Claims Deadline Slated for September 18 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Aktau Lava insolvent. Creditors have until Sept. 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 27, 39-25 Aktau Mangistau Kazakhstan Tel: 8 (7292) 41-32-87 AZAMAT SERVICE: Claims Filing Period Ends September 17 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Firm Azamat Service insolvent on May 12, 2008. Creditors have until Sept. 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Post Office Box 72 Main Post Office 050000, Almaty Kazakhstan BUILD LLP: Creditors' Claims Due on September 17 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola has declared LLP Firm Build insolvent. Creditors have until Sept. 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 GEO MINING: Claims Registration Ends September 18 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Geo Mining insolvent. Creditors have until Sept. 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Nurmahanov Str. 31 Micro District Taugul-3 Almaty Kazakhstan Tel: 8 (7272) 39-17-43 KAZ SPETS: Creditors Must File Claims by September 17 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Kaz Spets Bur Munai insolvent. Creditors have until Sept. 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan LAND OIL: Claims Deadline Slated for September 16 ------------------------------------------------- LLP Land Oil has declared insolvency. Creditors have until Sept. 16, 2008, to submit written proofs of claims to: LLP Land Oil Makarenko Str. 50 Shymkent South Kazakhstan Kazakhstan ONSHORE LLP: Claims Filing Period Ends September 17 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Onshore insolvent on June 17, 2008. Creditors have until Sept. 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Post Office Box 72 Main Post Office 050000 Almaty Kazakhstan ORDA NEFTEGAS: Creditors' Claims Due on September 16 ---------------------------------------------------- LLP Orda Neftegas Consulting has declared insolvency. Creditors have until Sept. 16, 2008, to submit written proofs of claims to: LLP Orda Neftegas Consulting Shokai Str. 94 Tas-Boget Kyzylorda Kazakhstan =================== K Y R G Y Z S T A N =================== STREITOS LLC: Creditors Must File Claims by September 4 ------------------------------------------------------- LLC Streitos has declared insolvency. Creditors have until Sept. 4, 2008, to submit written proofs of claim to: LLC Streitos Isanov Str. 60-39 Bishkek Kyrgyzstan =================== L U X E M B O U R G =================== EVRAZ GROUP: Forms JV with MCC for Cape Lambert Iron Ore Project ---------------------------------------------------------------- Evraz Group S.A. has signed a Co-operation Agreement with China Metallurgical Group Corporation for the joint development of the Cape Lambert Iron Ore Project located in the Northern coastal Pilbara region of Western Australia. The Project comprises a 1.56 billion ton JORC compliant magnetite iron ore resource with a projected annual output of 15 million tons of magnetite concentrate and is at feasibility stage. Evraz and MCC will jointly invest in the development of the Project with Evraz having a 75% and MCC a 25% economic interest in the Project. It is anticipated that all of the Project's iron ore will be shipped to China to meet the requirements of Chinese mills, while MCC will be entitled to sign an off-take agreement for up to 60% of the iron ore volumes. The new Joint Venture will benefit from a combination of the extensive magnetite mining and production expertise and financial resources of the two parent companies, Evraz and MCC. Evraz has considerable experience in processing magnetite ore to make significant volumes of pellets and fines. MCC will bring its expertise in EPC (provision of engineering design services, procurement and construction), based on its access to the best engineering processes, technologies and equipment in China and worldwide. Evraz's participation in the Joint Venture is subject to FIRB approval in Australia. Merrill Lynch is acting as financial adviser and Blake Dawson is acting as legal adviser to Evraz. 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. STEEL CAPITAL: Fitch Rates US$1.25 BB Notes Due 2013 at 'BB' ------------------------------------------------------------ Fitch Ratings has assigned Steel Capital S.A.'s US$1,250 million loan participation notes due 2013 a final senior unsecured 'BB' rating. The notes have a coupon of 9.75%. Steel Capital S.A. is a public limited liability company incorporated under the laws of the Grand Duchy of Luxembourg. Steel Capital S.A. will issue the notes and lend the proceeds under a loan agreement to the ultimate borrower, OJSC Severstal (Severstal, 'BB'/'B'/Outlook Stable). The 'BB' rating of the LPNs is in line with Severstal's senior unsecured rating of 'BB' and reflects the strong operational profile of Severstal's core Russian operations, a higher value-added product mix, self- sufficiency in raw materials and positive developments in day- to-day corporate governance practices. Severstal will use the proceeds for any of the following purposes: general corporate purposes; financing working capital; partially funding the acquisition of US-steel producers WCI Steel and Esmark; refinancing a portion of its existing debt. Steel Capital S.A. has granted a first fixed charge in respect of various rights and interests under the loan agreement with Severstal to Citibank N.A., London Branch, as trustee, for the benefit of the trustee and the noteholders. The loan agreement, notes, trust deed and other related documents are governed by English law. The notes are subject to selling restrictions in the United Kingdom, the United States and the Russian Federation. Terms contained in the loan agreement between Steel Capital S.A. and Severstal include that the loan ranks at least equally with all unsecured and unsubordinated indebtedness of Severstal, a negative pledge, restrictions on mergers and disposals, maintenance of property and authorization, maintenance of insurance and limitation on indebtedness. The loan agreement also includes a consolidated leverage ratio of 3.5:1. This covenant is instead of the consolidated net debt/net worth of 0.75 included in Severstal's existing 2009 and 2014 notes. The terms and conditions of the new notes are substantially similar to previous issuances involving Severstal, although the redemption put event following a change-of-control has been removed, as has the change-of-control clause. Severstal's Long-term IDR and senior unsecured ratings were upgraded to 'BB' from 'BB-' by Fitch on 20 June 2008. Severstal is the largest Russia-based vertically-integrated steel producer in Russia by volume, with crude steel production of 17.5 million tonnes in 2007. The company generated revenues of US$15.2 billion, EBITDAR of US$3.7 billion and had an adjusted net leverage of 0.3x at FYE07. =========== N O R W A Y =========== CHC HELICOPTER: Extends Offer for 7-3/8% Notes to September 15 -------------------------------------------------------------- CHC Helicopter Corporation extended its cash tender offer for all of its outstanding 7-3/8% Senior Subordinated Notes due 2014 (CUSIP No. 12541CAF1) and the related consent solicitation to midnight, New York City time, on Sept. 15, 2008, unless further extended or earlier terminated by CHC. As reported in the Troubled Company Reporter on May 29, 2008, CHC Helicopter Corporation commenced a cash tender offer for all of its outstanding 7-3/8% Senior Subordinated Notes due 2014 (CUSIP No. 12541CAF1). Holders tendering their Notes will be required to consent to proposed amendments to the Indenture and the Notes, which would eliminate substantially all of the restrictive covenants contained in the Indenture and the Notes (except the covenants relating to change of control and asset sale offers), eliminate certain events of default, modify the covenant regarding mergers and consolidations, and modify or eliminate certain other provisions, including certain provisions relating to defeasance, contained in the Indenture and the Notes. Holders may not tender their Notes without also delivering Consents and may not deliver Consents without also tendering their Notes. CHC also disclosed that 6922767 Canada Inc., an affiliate of a fund managed by First Reserve Corporation, has, as permitted by the Arrangement Agreement between the Purchaser and CHC dated Feb. 22, 2008, notified CHC that it has extended the Outside Date to Sept. 15, 2008. CHC expects the acquisition of all of the outstanding Class A and Class B shares of CHC to be completed by Sept. 15, 2008, however, completion of the Arrangement remains subject to a number of conditions, including receipt of transportation regulatory approvals in Canada and Europe. CHC and the Purchaser continue discussions with the applicable regulatory authorities. Both the Purchaser and CHC retain the ability to extend the Outside Date from time to time until Nov. 19, 2008, in accordance with the terms of the Arrangement Agreement. The consent payment deadline for the Offer and Consent Solicitation has now passed and withdrawal rights have terminated. Consequently tendered Notes may no longer be withdrawn and consents delivered may no longer be revoked. Holders of Notes who have not already tendered their Notes may do so at any time on or prior to Expiration Date, but such holders will only be eligible to receive the tender offer consideration of US$1,035 per US$1,000 principal amount of Notes. Holders whose Notes are accepted for payment in the Offer will receive accrued and unpaid interest in respect of such purchased Notes from the last interest payment date to, but not including, the payment date for Notes purchased in the Offer. Other terms of the Offer and Consent Solicitation as set forth in CHC's Offer to Purchase and Consent Solicitation Statement dated May 27, 2008, and the Consent and Letter of Transmittal remain unchanged. As of July 28, 2008, approximately US$391.3 million principal amount of the Notes had been validly tendered and not withdrawn pursuant to the Offer. The completion of the Offer is not a condition to completion of the Arrangement or the financing thereof. The Offer and the Consent Solicitation are subject to the satisfaction or waiver of certain conditions, including the closing of the Arrangement having occurred or the Arrangement occurring substantially concurrent with the Expiration Date. Morgan Stanley & Co. Retained as Dealer Manager CHC has retained Morgan Stanley & Co. Incorporated to act as Dealer Manager and Solicitation Agent in connection with the Offer and the Consent Solicitation. Morgan Stanley & Co. Incorporated may perform the services contemplated by the Offer and the Consent Solicitation in conjunction with its affiliates (including, without limitation, its affiliates incorporated under the federal laws of Canada). Persons with questions regarding the Offer or the Consent Solicitation should contact Morgan Stanley & Co. Incorporated at (800) 624-1808 (toll-free) or (212) 761-1941 (collect). Persons residing or incorporated in Canada should contact Morgan Stanley Canada Limited at (416) 943-8417. Requests for documentation may be directed to D.F. King & Co., Inc., the Information Agent, which can be contacted at (212) 269-5550 (banks and brokers, call collect) or (888) 869-7406 (all others, call toll-free). About CHC Helicopter Corporation Headquartered in Richmond, British Columbia, in Canada, CHC Helicopter Corporation (TSE:FLY.A)V7B - http://www.chc.ca/-- is a commercial helicopter operator. The company, through its subsidiaries, operates in over 30 countries, on all seven continents and in most of the offshore oil and gas producing regions of the world. The company's operating units are based in the United Kingdom, Norway, the Netherlands, South Africa, Australia and Canada. It provides helicopter transportation services to the oil and gas industry for production and exploration activities through its European and global operations segments. It also provides helicopter transportation services for emergency medical services and search and rescue activities and ancillary services, such as flight training. The company's Heli-One segment is a non-original equipment manufacturer helicopter support company, providing repair and overhaul services, aircraft leasing, integrated logistics support, helicopter parts sales and distribution and other related services. * * * As reported in the Troubled Company Reporter on February 2008, Moody's Investors Service placed under review for possible downgrade the Ba3 corporate family rating and probability of default rating for CHC Helicopter Corporation. The review also covered the B1 (LGD 5, 72%) rating on CHC's US$400 million senior subordinated notes. These actions followed the statement that a fund managed by First Reserve Corporation has entered into an agreement to acquire CHC. =========== R U S S I A =========== BRIDGE CONSTRUCTION: Court Names V. Boldyrev to Manage Assets ------------------------------------------------------------- The Arbitration Court of Krasnodar appointed V. Boldyrev as Insolvency Manager for OJSC Bridge Construction Team (TIN 2320031241). He can be reached at: V. Boldyrev Insolvency Manager Pushkina Str. 47/1 350063 Krasnodar Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-15709/05-38/234-B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: OJSC Bridge Construction Team 629830 Krasnodar Russia CHUKOTSKOE GOLD: Creditors Must File Claims by August 28 -------------------------------------------------------- Creditors of CJSC Financial-Industrial Company Chukotskoe Gold have until Aug. 28, 2008, to submit proofs of claim to: S. Kozlov Insolvency Manager Post User Box 167 Anadyr 689000 Chukotskiy Russia The Arbitration Court of Chukotskiy will convene at 10:00 a.m. on Sept. 19, 2008, to hear bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A80-126/2008-B. The Debtor can be reached at: CJSC Financial-Industrial Company Chukotskoe Gold Lenina Str. 22 Anadyr 689000 Chukotskiy Russia COSMOS OJSC: Perm Bankruptcy Hearing Slated for October 31 ---------------------------------------------------------- The Arbitration Court of Perm will convene at 11:00 a.m. on Oct. 31, 2008, to hear the bankruptcy supervision procedure on OJSC Cosmos. The case is docketed under Case No. A50-5594/2008-B-3. The Temporary Insolvency Manager is: Y. Mashkovtsev Kirova Str. 224-1 614068 Perm Russia The Court is located at: The Arbitration Court of Perm Lunacharskogo Str. 3 Perm Russia The Debtor can be reached at: OJSC Cosmos Vseobucha Str. 86 Solikamsk 618553 Perm Russia CROCUS LLC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------- The Arbitration Court of Bashkortostan commenced bankruptcy supervision procedure on LLC Crocus. The case is docketed under Case No. A10-286/08. The Temporary Insolvency Manager is: I. Dolgikh Post User Box 3034 670024 Ulan-Ude Russia Tel: 8 (3012) 46-05-72 The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Crocus Novoselov Str. 23 Taksimovo Muyskiy 671561 Bashkortostan Russia DIAMOND LLC: Moscow Bankruptcy Hearing Slated for October 28 ------------------------------------------------------------ The Arbitration Court of Moscow will convene on Oct. 28, 2008, to hear the bankruptcy supervision procedure on LLC Diamond. The case is docketed under Case No. A40-19894/08-38-57B. The Temporary Insolvency Manager is: A. Maltabar Post User Box 619 170006 Tver Russia The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: LLC Diamond 3 Avtozavodskiy Pr. 4 Moscow Russia ENTERPRISE TAIRA: Court Names A. Bezmolenko to Manage Assets ------------------------------------------------------------ The Arbitration Court of Krasnodar appointed A. Bezmolenko as Insolvency Manager for CJSC Enterprise Taira. He can be reached at: A. Bezmolenko Insolvency Manager Post User Box 8 352503 Labinsk Russia The Court will convene on Nov. 12, 2008, to hear the bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-32-5731/2008-38/181-B. The Court is located at: The Arbitration Court of Krasnodar Krasnaya Str. 6 Krasnodar Russia The Debtor can be reached at: CJSC Enterprise Taira Lenina Str. 93 Armavir Russia EVRAZ GROUP: Forms JV with MCC for Cape Lambert Iron Ore Project ---------------------------------------------------------------- Evraz Group S.A. has signed a Co-operation Agreement with China Metallurgical Group Corporation for the joint development of the Cape Lambert Iron Ore Project located in the Northern coastal Pilbara region of Western Australia. The Project comprises a 1.56 billion ton JORC compliant magnetite iron ore resource with a projected annual output of 15 million tons of magnetite concentrate and is at feasibility stage. Evraz and MCC will jointly invest in the development of the Project with Evraz having a 75% and MCC a 25% economic interest in the Project. It is anticipated that all of the Project's iron ore will be shipped to China to meet the requirements of Chinese mills, while MCC will be entitled to sign an off-take agreement for up to 60% of the iron ore volumes. The new Joint Venture will benefit from a combination of the extensive magnetite mining and production expertise and financial resources of the two parent companies, Evraz and MCC. Evraz has considerable experience in processing magnetite ore to make significant volumes of pellets and fines. MCC will bring its expertise in EPC (provision of engineering design services, procurement and construction), based on its access to the best engineering processes, technologies and equipment in China and worldwide. Evraz's participation in the Joint Venture is subject to FIRB approval in Australia. Merrill Lynch is acting as financial adviser and Blake Dawson is acting as legal adviser to Evraz. 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. HOME CREDIT: S&P Puts B+ L-T Rating on US$250MM Proposed Notes -------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'B+' long-term ratings to the proposed U.S. dollar-denominated senior unsecured loan participation notes to be issued by Eurasia Capital S.A. The notes will be due 2011 and will have limited recourse to Eurasia Capital. The sole purpose of the notes is to finance a loan to Home Credit and Finance Bank LLC (HCFB; B+/Stable/B). The minimum amount of the proposed notes will be US$250 million, but the exact amount will be confirmed in the first half of August 2008. The proposed loan participation notes issue is an offer to the holders of the US$200 million 9.5% LPN due 2010 and issued by Eurasia Capital in April 2007 to exchange those notes for these proposed ones. "The rating on the proposed notes mirrors the long-term counterparty credit rating on HCFB," said Standard & Poor's credit analyst Eugene Tarzimanov. "Because we base this rating on draft documentation, we might change it should the final terms and conditions of the issue materially differ from those presented in the drafts." The ratings on Home Credit reflect the bank's high credit risk, short track record in mass consumer lending, lack of funding diversification, and high refinancing needs. Positive rating factors include a supportive owner, which has provided financial assistance and technical expertise; good capitalization; and adequate profitability. In addition, the bank benefits from Russia's good macroeconomic prospects, which support high loan demand. Home Credit and Finance Bank LLC is an important player in Russia's consumer finance market. With US$3.5 billion in total assets at March 31, 2008, the bank provides point-of-sale loans, revolving credit facilities, and cash loans. KORSHINOV-STROY-ETALON: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy supervision procedure on LLC Korshinov-Stroy-Etalon (TIN 5406350608). The case is docketed under Case No. A56-2031/2008. The Temporary Insolvency Manager is: A. Korunov Room 606 Building 1 Mira Pr. 68 129110 Moscow Tel: (495) 680-11-93 Russia The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Korshinov-Stroy-Etalon Premise 7-N Letter A Mikhaylova Str. 8 195009 St. Petersburg Russia ============================= S L O V A K R E P U B L I C ============================= VALEANT PHARMACEUTICALS: Moody's Withdraws Low-B Ratings -------------------------------------------------------- Moody's Investor's Service withdrew the ratings of Valeant Pharmaceuticals International following Valeant's recent redemption of its US$300 million senior unsecured notes due 2011. Moody's has withdrawn the ratings for Moody's business reasons. Moody's added that the ratings were withdrawn because the issuer has no rated debt outstanding. These ratings have been withdrawn: -- B2 Corporate Family Rating -- B1 Probability of Default Rating -- Ba3 (LGD3, 39%) rating on $300 million 7% senior unsecured notes due 2011 Moody's does not rate Valeant's 3% convertible subordinated notes of US$240 million due 2010 or its 4% convertible subordinated notes of $US240 million due 2013. Headquartered in Aliso Viejo, California, Valeant Pharmaceuticals International [NYSE: VRX] is a multinational specialty pharmaceutical company. Valeant reported approximately US$872 million of total sales during 2007. ========= S P A I N ========= * Fitch Says Spanish Consumer ABS Face Rising Credit Risks ---------------------------------------------------------- Fitch Ratings says in a special report published that Spanish consumer ABS face rising credit risk as a slowing economy begins to weigh on credit quality metrics. "Given the ongoing credit constraints, coupled with a more challenging economic environment, we expect to see continued increases in delinquencies and defaults over the coming months," said Rui J. Pereira, Managing Director and Head of Spanish Structured Finance at Fitch. "However, we view positively some of the recent actions taken by the Spanish consumer loan servicers to address deteriorating credit performance, including tightening underwriting guidelines and reinforcing their servicing platforms". While consumer ABS performance had held up well up to 2007, with reported arrears and defaults well within expectations, Fitch has noticed a weakening trend in recent quarters due to the softening Spanish economy and somewhat more aggressive underwriting standards employed in recent years. Notably, several transactions have reported sharply higher arrears and breached early amortization triggers. Even as issuers have begun to take steps to more actively manage/service their consumer portfolios and mitigate risk, Fitch believes credit quality statistics will continue to weaken over the medium-term, with the magnitude dependent on the duration and severity of the downturn in the Spanish economy. Nonetheless, in Fitch's view, some of the structural features of these deals provide additional support to investors. Those include early amortization triggers tied to delinquencies, provisioning mechanisms that allow defaulted loans to be written off using available excess spread as well as interest deferral triggers on the subordinated notes to protect senior investors. =========== S W E D E N =========== FORD MOTOR: Fitch Highlights Effect of Declining Resale Values -------------------------------------------------------------- The recent announcements by the financing arms of Chrysler LLC, GM Corp. and Ford Motor Co. regarding the discontinuation or overhaul of their auto lease programs underscores the impact of rapidly declining vehicle resale values, according to Fitch Ratings. Earlier this week Chrysler Financial, GMAC and Ford Motor Credit announced significant changes to their auto lease businesses with Chrysler Financial suspending their U.S. auto lease program all together. GMAC announced it will stop subsidizing leases in Canada and will eliminate certain lower credit quality borrowers from consideration domestically. Ford announced significant increases in lease rates for certain SUVs and trucks. All three companies indicated that their decision was influenced by the ongoing decay in the resale values of vehicles coming off lease. Coincident with these declines, Fitch is currently completing a review of its auto lease ratings with a focus on the 2007 and 2008 vintages. Fitch currently has 20 public ratings outstanding from 10 transactions representing approximately US$7.2 billion in principal outstanding from 2007 and 2008 U.S. captive finance company issuances. The initial review is expected to be completed over the next two to three weeks. "As Fitch has noted, dramatic drops in the value of used cars is impacting the entire auto ABS sector, but those declines are having an amplified affect on the performance of auto lease transactions," said Managing Director and U.S. ABS group head Kevin Duignan. "Transactions from 2007 and 2008 may not have built enough credit enhancement to offset the potential increase in residual value losses while still maintaining coverage consistent with Fitch's original ratings." U.S. captive finance companies, in particular, are experiencing higher than expected residual value losses due to the steep drop in the values of vehicles coming off lease especially for SUVs and trucks. Fitch's base case residual value loss expectation for these companies' auto lease ABS transactions has increased by 20-30% since the second half of 2007 as value declines accelerated. However, current data suggests that actual declines are exceeding this range in certain transactions with further deterioration expected. 'While ratings in the auto lease sector have traditionally been remarkably stable, the rapid rate of decline in vehicle values over the past six months is unprecedented and will put those ratings to the test,' said ABS Senior Director Ravi Gupta. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, 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. FORD MOTOR: S&P Cuts Rating to B- and Removes Negative Watch ------------------------------------------------------------ Standard & Poor's Ratings Services lowered the ratings on General Motors Corp., Ford Motor Co., and Chrysler LLC, all to 'B-' from 'B'. The ratings on GM and Ford were removed from CreditWatch with negative implications, where they had been placed on June 20, 2008. Chrysler will remain on CreditWatch pending the renewal of certain bank lines at DaimlerChrysler Financial Services Americas LLC, which S&P expects to be completed in the next few days. If the bank lines are renewed as expected, S&P would affirms the ratings on Chrysler and DCFS and remove them from CreditWatch. At the same time, S&P lowered the ratings on GMAC LLC, Ford Motor Credit Co., and DCFS, also to 'B-' from 'B', and removed the ratings on GMAC and Ford Credit from CreditWatch negative, where they had also been placed on June 20, 2008. The ratings on DCFS will remain on CreditWatch negative until its bank line renewal is complete. S&P also lowered the corporate credit rating on FCE Bank PLC, Ford Credit's European bank, to 'B' from 'B+'. The outlooks on all the companies are negative. (The issuer credit rating on GMAC's Residential Capital LLC mortgage unit [CCC+/Negative/C] is not affected by these rating actions.) The downgrades reflect mounting cash losses in GM's, Ford's, and Chrysler's North American automotive operations and deteriorating conditions in the U.S. auto market. "We believe sharply lower U.S. light-vehicle demand and the recent dramatic shift in demand away from large pickup trucks and SUVs amid higher gas prices will complicate the turnaround efforts of all three automakers and reduce their currently adequate liquidity considerably over the next year and a half," said Standard & Poor's credit analyst Robert Schulz. "This will leave them more vulnerable to already adverse industry, economic, and credit market conditions." The greatest threats to the ratings over the next 18 months are the depth of economic weakness and the extent of the demand shift away from light trucks in the U.S. S&P estimates GM will use as much as US$16 billion from its global automotive operations this year, including cash restructuring costs and costs related to bankrupt former unit Delphi Corp. Of that amount, GM used US$3.9 billion in the first quarter. S&P estimate Ford will burn as much as US$12 billion to US$13 billion from its global automotive operations this year, including cash restructuring costs. Of that amount, Ford used US$4.9 billion in the first six months of 2008. Chrysler does not make its financial results public, but S&P expects the company to experience a net cash outflow from its automotive operations in 2008, its first full year since being acquired by Cerberus Capital Management L.P. Aggressive fixed- cost reduction and conservative industry sales assumptions have kept Chrysler at or above most of its financial targets through the first quarter and likely through the second quarter. Liquidity for all three automakers is adequate for now, but will be significantly reduced in the second half of this year and during 2009 by continued heavy losses and cash outflows. Industry sales, including those of pickups and SUVs, continue to weaken, which will likely lead to higher cash losses for all three automakers in the second half of the year. S&P expects U.S. light-vehicle sales to be 14.4 million units in 2008, the lowest in 15 years and down sharply from 16.1 million units in 2007. S&P expects sales to fall further in 2009, to about 14.1 million units, as the economy remains weak and housing prices and consumers' access to credit remain under pressure. S&P estimates that there is a 20% chance that auto sales in 2008 and 2009 will plummet to 13.6 million and 11.7 million units, respectively, which would present an overwhelming challenge for all three Michigan-based automakers. Another major headwind has been plummeting prices for used SUVs and pickups, which is causing alarming losses on leasing activities and will lead Ford Credit to be unprofitable for 2008, even excluding a US$2 billion charge booked in the second quarter. GM and GMAC will likely take impairment charges in the upcoming quarters. There has been periodic speculation that the Michigan-based automakers might eventually seek to reorganize under Chapter 11 bankruptcy protection. Managements at all three companies have strongly denied any such intention and appear committed to executing on their turnaround plans. Few of the automakers' problems--including lower sales, adverse product mix shifts, and high commodity costs--would be altered by a bankruptcy filing. S&P believe the most likely trigger for a bankruptcy filing would be cash reserves falling to dangerously low levels, rather than the automaker's making a strategic choice to seek Chapter 11 reorganization. The outlooks on each company and its financial unit reflect our expectation that liquidity at each automaker will be almost halved by cash losses in 2008 and 2009 but will not sink to dangerously low levels, even if industry conditions do not materially improve by the end of next year. S&P could revise the outlooks, or place the ratings on CreditWatch and subsequently lower them, if it came to believe that cash and short-term investments plus secured revolving credit facility availability would drop below certain levels before the end of 2009. This could occur if U.S. light-vehicle sales drop well below 14 million units this year and next, or if higher gas prices lead to an even more substantial decline in light-truck demand beyond current levels. S&P could also lower the rating on GM if GMAC loses access to the asset-backed securitization markets for any extended period. S&P does not expect to revise the outlook to stable or raise the ratings within the next year, given the economic outlook, ongoing turnaround plan execution risk, and potential pressure on liquidity. ===================== S W I T Z E R L A N D ===================== ANDREAS SCHILD: Aug. 17 Set as Deadline to File Proofs of Claim --------------------------------------------------------------- Creditors owed money by JSC Andreas Schild are requested to file their proofs of claim by Aug. 17, 2008, to: Schild-Neiger Andreas Mittlere Gasse 3856 Brienzwiler Switzerland The company is currently undergoing liquidation in Brienzwiler. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 23, 2008. BACOSYS LLC: Creditors Have Until Aug. 18 to File Claims -------------------------------------------------------- Creditors owed money by LLC Bacosys are requested to file their proofs of claim by Aug. 18, 2008, to: Martin Rodemich Mail Box: 66 8612 Uster 2 Switzerland The company is currently undergoing liquidation in Uster. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 14, 2008. CMD MODEN: Creditors Must File Proofs of Claim by Aug. 15 ---------------------------------------------------------- Creditors owed money by JSC CMD Moden are requested to file their proofs of claim by Aug. 15, 2008, to: Ursula Tschannen Liquidator Gassackerweg 71 4402 Frenkendorf Switzerland The company is currently undergoing liquidation in Frenkendorf. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 1, 2008. DWWI JSC: Deadline to File Proofs of Claim Set Aug. 16 ------------------------------------------------------- Creditors owed money by JSC DWWI - Dighton World Wide Investments are requested to file their proofs of claim by Aug. 16, 2008, to: J. Donnet, Budin & Associates 20, rue Senebier 1211 Geneve 12 Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 17, 2008. FIVE ASHES: Proofs of Claim Filing Deadline is Aug. 15 ------------------------------------------------------- Creditors owed money by LLC Five Ashes are requested to file their proofs of claim by Aug. 15, 2008, to: Sander Herden Liquidator Gotthardstrasse 31 6304 Zug Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 10, 2008. GENERAL MOTORS: Fitch Details Effect of Declining Resale Values --------------------------------------------------------------- The recent announcements by the financing arms of Chrysler LLC, GM Corp. and Ford Motor Co. regarding the discontinuation or overhaul of their auto lease programs underscores the impact of rapidly declining vehicle resale values, according to Fitch Ratings. Earlier this week Chrysler Financial, GMAC and Ford Motor Credit announced significant changes to their auto lease businesses with Chrysler Financial suspending their U.S. auto lease program all together. GMAC announced it will stop subsidizing leases in Canada and will eliminate certain lower credit quality borrowers from consideration domestically. Ford announced significant increases in lease rates for certain SUVs and trucks. All three companies indicated that their decision was influenced by the ongoing decay in the resale values of vehicles coming off lease. Coincident with these declines, Fitch is currently completing a review of its auto lease ratings with a focus on the 2007 and 2008 vintages. Fitch currently has 20 public ratings outstanding from 10 transactions representing approximately US$7.2 billion in principal outstanding from 2007 and 2008 U.S. captive finance company issuances. The initial review is expected to be completed over the next two to three weeks. "As Fitch has noted, dramatic drops in the value of used cars is impacting the entire auto ABS sector, but those declines are having an amplified affect on the performance of auto lease transactions," said Managing Director and U.S. ABS group head Kevin Duignan. "Transactions from 2007 and 2008 may not have built enough credit enhancement to offset the potential increase in residual value losses while still maintaining coverage consistent with Fitch's original ratings." U.S. captive finance companies, in particular, are experiencing higher than expected residual value losses due to the steep drop in the values of vehicles coming off lease especially for SUVs and trucks. Fitch's base case residual value loss expectation for these companies' auto lease ABS transactions has increased by 20-30% since the second half of 2007 as value declines accelerated. However, current data suggests that actual declines are exceeding this range in certain transactions with further deterioration expected. 'While ratings in the auto lease sector have traditionally been remarkably stable, the rapid rate of decline in vehicle values over the past six months is unprecedented and will put those ratings to the test,' said ABS Senior Director Ravi Gupta. 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. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. 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. GENERAL MOTORS: S&P Cuts Rating to B- on Mounting Cash Losses ------------------------------------------------------------- Standard & Poor's Ratings Services lowered the ratings on General Motors Corp., Ford Motor Co., and Chrysler LLC, all to 'B-' from 'B'. The ratings on GM and Ford were removed from CreditWatch with negative implications, where they had been placed on June 20, 2008. Chrysler will remain on CreditWatch pending the renewal of certain bank lines at DaimlerChrysler Financial Services Americas LLC, which S&P expects to be completed in the next few days. If the bank lines are renewed as expected, S&P would affirms the ratings on Chrysler and DCFS and remove them from CreditWatch. At the same time, S&P lowered the ratings on GMAC LLC, Ford Motor Credit Co., and DCFS, also to 'B-' from 'B', and removed the ratings on GMAC and Ford Credit from CreditWatch negative, where they had also been placed on June 20, 2008. The ratings on DCFS will remain on CreditWatch negative until its bank line renewal is complete. S&P also lowered the corporate credit rating on FCE Bank PLC, Ford Credit's European bank, to 'B' from 'B+'. The outlooks on all the companies are negative. (The issuer credit rating on GMAC's Residential Capital LLC mortgage unit [CCC+/Negative/C] is not affected by these rating actions.) The downgrades reflect mounting cash losses in GM's, Ford's, and Chrysler's North American automotive operations and deteriorating conditions in the U.S. auto market. "We believe sharply lower U.S. light-vehicle demand and the recent dramatic shift in demand away from large pickup trucks and SUVs amid higher gas prices will complicate the turnaround efforts of all three automakers and reduce their currently adequate liquidity considerably over the next year and a half," said Standard & Poor's credit analyst Robert Schulz. "This will leave them more vulnerable to already adverse industry, economic, and credit market conditions." The greatest threats to the ratings over the next 18 months are the depth of economic weakness and the extent of the demand shift away from light trucks in the U.S. S&P estimates GM will use as much as US$16 billion from its global automotive operations this year, including cash restructuring costs and costs related to bankrupt former unit Delphi Corp. Of that amount, GM used US$3.9 billion in the first quarter. S&P estimate Ford will burn as much as US$12 billion to US$13 billion from its global automotive operations this year, including cash restructuring costs. Of that amount, Ford used US$4.9 billion in the first six months of 2008. Chrysler does not make its financial results public, but S&P expects the company to experience a net cash outflow from its automotive operations in 2008, its first full year since being acquired by Cerberus Capital Management L.P. Aggressive fixed- cost reduction and conservative industry sales assumptions have kept Chrysler at or above most of its financial targets through the first quarter and likely through the second quarter. Liquidity for all three automakers is adequate for now, but will be significantly reduced in the second half of this year and during 2009 by continued heavy losses and cash outflows. Industry sales, including those of pickups and SUVs, continue to weaken, which will likely lead to higher cash losses for all three automakers in the second half of the year. S&P expects U.S. light-vehicle sales to be 14.4 million units in 2008, the lowest in 15 years and down sharply from 16.1 million units in 2007. S&P expects sales to fall further in 2009, to about 14.1 million units, as the economy remains weak and housing prices and consumers' access to credit remain under pressure. S&P estimates that there is a 20% chance that auto sales in 2008 and 2009 will plummet to 13.6 million and 11.7 million units, respectively, which would present an overwhelming challenge for all three Michigan-based automakers. Another major headwind has been plummeting prices for used SUVs and pickups, which is causing alarming losses on leasing activities and will lead Ford Credit to be unprofitable for 2008, even excluding a US$2 billion charge booked in the second quarter. GM and GMAC will likely take impairment charges in the upcoming quarters. There has been periodic speculation that the Michigan-based automakers might eventually seek to reorganize under Chapter 11 bankruptcy protection. Managements at all three companies have strongly denied any such intention and appear committed to executing on their turnaround plans. Few of the automakers' problems--including lower sales, adverse product mix shifts, and high commodity costs--would be altered by a bankruptcy filing. S&P believe the most likely trigger for a bankruptcy filing would be cash reserves falling to dangerously low levels, rather than the automaker's making a strategic choice to seek Chapter 11 reorganization. The outlooks on each company and its financial unit reflect our expectation that liquidity at each automaker will be almost halved by cash losses in 2008 and 2009 but will not sink to dangerously low levels, even if industry conditions do not materially improve by the end of next year. S&P could revise the outlooks, or place the ratings on CreditWatch and subsequently lower them, if it came to believe that cash and short-term investments plus secured revolving credit facility availability would drop below certain levels before the end of 2009. This could occur if U.S. light-vehicle sales drop well below 14 million units this year and next, or if higher gas prices lead to an even more substantial decline in light-truck demand beyond current levels. S&P could also lower the rating on GM if GMAC loses access to the asset-backed securitization markets for any extended period. S&P does not expect to revise the outlook to stable or raise the ratings within the next year, given the economic outlook, ongoing turnaround plan execution risk, and potential pressure on liquidity. H. FISCHBACHER: Creditors' Proofs of Claim Due by August 17 ----------------------------------------------------------- Creditors owed money by LLC H. Fischbacher are requested to file their proofs of claim by Aug. 17, 2008, to: Silvia Marti Florastrasse 19 8620 Wetzikon Switzerland The company is currently undergoing liquidation in Hinwil ZH. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 16, 2008. HESS KRANKENTRANSPORTE: Aug. 15 Set as Deadline to File Claims -------------------------------------------------------------- Creditors owed money by LLC Hess Krankentransporte are requested to file their proofs of claim by Aug. 15, 2008, to: Oliver Gafner Eisenbahnstrasse 11 4901 Langenthal Switzerland The company is currently undergoing liquidation in Gerlafingen SO. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on May 29, 2008. INDATEX JSC: Creditors Must File Proofs of Claim by August 18 ------------------------------------------------------------- Creditors owed money by JSC Indatex are requested to file their proofs of claim by Aug. 18, 2008, to: JSC Wirtschafts-Treuhand AUCTOR SCHWYZ Oberer Steisteg/PF 148 6431 Schwyz Switzerland The company is currently undergoing liquidation in Emmen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 25, 2008. ISKY LLC: Deadline to File Proofs of Claim Set August 15 -------------------------------------------------------- Creditors owed money by LLC Isky are requested to file their proofs of claim by Aug. 15, 2008, to: Martin M. Iskraut Wasserwerkstrasse 24 4332 Stein Switzerland The company is currently undergoing liquidation in Stein AG. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on April 21, 2008. LALITA JSC: Proofs of Claim Filing Deadline is August 17 -------------------------------------------------------- Creditors owed money by JSC Lalita are requested to file their proofs of claim by Aug. 17, 2008, to: JSC OBT Rorschacherstrasse 63 9004 St. Gallen Switzerland The company is currently undergoing liquidation in St. Gallen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 26, 2008. SEMGROUP LP: Wants to Access BofA's US$250,000,000 DIP Financing -------------------------------------------------------------- SemCrude, L.P., SemGroup, L.P., and their debtor-affiliates sought the authority of U.S. Bankruptcy Court for the District of Delaware to obtain US$250,000,000 of senior secured superpriority postpetition financing from Bank of America, as administrative agent for a syndicate of lenders. Pending final approval of the request, the Debtors sought authority, on an interim basis, to borrow up to US$150,000,000 under the DIP Facility to allow them to (i) meet all of their administrative obligations during the early stages of their Chapter 11 cases, and (ii) purchase inventory critical to the operation of their businesses. The Debtors previously obtained interim permission from the Court to use until Aug. 15, 2008, the cash collateral encumbered by liens granted to a group of lenders led by BofA who extended more than US$2,000,000,000 of prepetition loans to the Debtors. The DIP Lenders, according to the Debtors' proposed counsel, Harvey R. Miller, Esq., at Weil, Gotshal & Manges, LLP, in New York, constitute a subset of the lenders under the Debtors' prepetition loan agreements. Mr. Miller related that the Debtors lack sufficient unencumbered funds with which to operate their business on an ongoing basis. The cash available under the Interim Cash Collateral Order is not sufficient to operate the Debtors' business beyond a very short term. In particular, he said the Debtors are unable to purchase sufficient inventory for the operation of their businesses without borrowing additional funds. The funds available under the DIP Facility will be available to provide the Debtors with working capital and funds for other general corporate purposes solely in accordance with a weekly budget covering a 13-week period. The Budget, however, will still be filed with the Court on or before the hearing on the request for interim authority. The salient terms of the DIP Credit Agreement are: Borrower: SemCrude, L.P. Administrative Agent and Lender: Bank of America, N.A., as administrative agent for a syndicate of lenders Guarantors: SemOperating GP, L.L.C., SemGroup, L.P., and each of SemGroup's debtor subsidiaries DIP Facility: A secured superpriority DIP credit facility in an aggregate amount of US$250,000,000, with a sublimit of US$150,000,000 for letters of credit Interest Rate: 1-month LIBOR, subject to a floor of 4.00%, plus 6.00% or Prime, subject to a floor of 3.00%, plus 5.00% Fees: The Debtors will pay an unused line fee of 1% for undrawn amounts under the DIP Facility. The Debtors will also pay 6.00% per annum on the outstanding face amount of each letter of credit plus customary fees for issuance, amendments, and processing and a fronting fee equal to 0.25-1.00% per annum. Maturity: The DIP Facility will expire no later than January 18, 2009, provided that the maturity may be extended until April 18, 2009, upon the DIP Lenders' holding more than 50% of the aggregate DIP Facility commitments satisfaction that certain conditions relating to the sale of the Debtors' assets have been met. Priority & Liens: BofA, for its own benefit and for the benefit of the DIP Lenders, will be granted: (i) a perfected first priority lien on and security interest in all property of the Debtors' estates not subject to valid, perfected, and non-avoidable liens as of the bankruptcy filing, other than the Avoidance Actions, but subject to the entry of a final DIP Order, any proceeds or property recovered in respect of any Avoidance Actions; (ii) a perfected junior lien on all property of the Debtors that is subject to valid, perfected and non-avoidable liens; and (iii) a perfected first priority, senior priming lien on and security interest in all of the collateral that is subject to existing liens that secure the obligations of the Debtors under or in connection with the Prepetition Credit Agreement. The obligations under the DIP Facility will be entitled to superpriority claim status in the Debtors' Chapter 11 cases. All of the Debtors' obligations under the DIP Facility will be senior to all obligations under the Prepetition Credit Agreement. Thus, the liens created under the DIP Facility are priming liens with respect to liens currently held by the Prepetition Lenders. Carve-Out: As provided under the Interim Cash Collateral Order, refers to the statutory fees payable to the U.S. Trustee, and after the termination date of the Cash Collateral, the payments of allowed professionals fees and disbursements incurred by the Debtors or any official unsecured creditors committee provided that the amount will not exceed US$2,000,000. Events of Default: [To be determined] Conditions: The DIP Facility will be conditioned on, among other things, BofA's receipt of an initial Budget, receipts of all necessary consents, finalization of satisfactory legal documentation, and the Court's entry of interim and final approvals of the DIP Facility. A full-text copy of the DIP Term Sheet is available for free at http://bankrupt.com/misc/semgroup_DIPTermSheet.pdf According to Mr. Miller, the Final DIP Agreement will set forth milestones and timeframes, acceptable to BofA and the DIP Lenders, for the successful completion of the sale of all or substantially all of the Debtors' assets. Law Phelps, spokesperson for SemGroup, told The Journal Record that "discussions [on the proposed sale] are under way." He said "the company has gotten lots of calls from people." "We want to just keep running oil through the pipelines and keep the business running as normally as possible while this orderly asset sale is under way, because if you're a potential buyer of assets, you'd much rather buy assets that have customers attached to them, at the end of the pipeline, for example, and employees who know how to run the system," the Journal Record further quoted Mr. Phelps as saying. Mr. Miller said the Debtors, BofA, and the DIP Lenders have entered into letter agreements regarding fees in connection with the postpetition financing. However, the Fee Letters were not publicly disclosed due to the commercially sensitive nature of the fees. Judge Shannon will convene a hearing on July 31, 2008, to consider approval of the request to obtain the DIP Facility. Objections are due July 30. 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. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc. The CCAA stay expires on Aug. 20, 2008. SemGroup L.P.'s 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. (SemGoup Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * On July 25, 2008, the Troubled Company Reported that Fitch Ratings downgraded the ratings of SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all ratings. The withdrawn ratings include Issuer default Rating D assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS Midstream Co. Fitch Ratings has downgraded, removed from Rating Watch Negative, and simultaneously withdrawn (a) SemGroup, L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c) SemCAMS Midstream Co. (SemCAMS) Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'. Also, 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. Further, Fitch Ratings 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. SEMGROUP LP: Term Loan Lenders Assert Distinct Prepetition Liens ---------------------------------------------------------------- A group of prepetition lenders who provided SemGroup L.P. and its debtor-affiliates a US$142,000,000 term loan asserted that their claims are distinct from the claims of the other prepetition lenders. The distinctions, according to the Term Loan Lenders' counsel, Mark Minuti, Esq., at Saul Ewing, LLP, in Wilmington, Delaware, may have substantial economic impact on the recoveries of each lender categories, which may diverge significantly. Mr. Minuti told the U.S. Bankruptcy Court for the District of Delaware that the issues they presented are (i) broader in scope than those that Bank of America, as administrative agent to the prepetition lenders, is required to undertake, and (ii) reflect conflicting interests among the Term Loan Lenders and the other competing lender groups. Accordingly, the Term Loan Lenders asserted that BofA is an unsuitable advocate for their interests. The Term Loan Lenders sought separate representation of their issued in the Debtors' Chapter 11 cases, and seek entitlement to the payment of the fees and expenses they or their professionals incur in connection with the Debtors' bankruptcy cases. Mr. Minuti contended that the distinct rights and interests of the Term Loan Lenders, as holders of a first priority lien on the revolver/term priority collateral and second priority lien on the working capital priority collateral, will require separate representations and diligence throughout the Debtors' Chapter 11 cases. The Debtors have obtained interim authority from the Bankruptcy Court to use until Aug. 15, 2008, the cash collateral securing more than US$2,000,000,000 of prepetition loans extended by a group of lenders led by Bank of America. As adequate protection for any diminution in the value of the cash collateral, the Debtors clarified that the Prepetition Lenders will be granted a valid, perfected, replacement security interest in and lien on all of the Collateral, including, without limitation, subject to entry of a final DIP order, the proceeds or property recovered in respect of the Avoidance Actions. The Adequate Protection Liens will be subject and subordinate only to: (i) valid, perfected and enforceable prepetition liens, if any, which are senior to the Prepetition Lenders' liens or security interests as of the bankruptcy filing; (ii) the liens granted to BofA, for its own benefit and for the benefit of the DIP Lenders, and any liens on the Collateral senior to BofA's liens; and (iii) the Carve-Out. To reduce the outstanding principal balance of the prepetition indebtedness, the Debtors will pay to the Prepetition Lenders all proceeds from a sale, lease or disposition of the Collateral, after deducting necessary costs of the Debtors, provided that all of the Debtors' obligations under the DIP Facility have been paid in full, all commitments under the DIP Facility have been terminated, and all outstanding letters of credit issued under the DIP Facility have been cash collateralized. 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. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc. The CCAA stay expires on Aug. 20, 2008. SemGroup L.P.'s 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. (SemGoup Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * On July 25, 2008, the Troubled Company Reported that Fitch Ratings downgraded the ratings of SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all ratings. The withdrawn ratings include Issuer default Rating D assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS Midstream Co. Fitch Ratings has downgraded, removed from Rating Watch Negative, and simultaneously withdrawn (a) SemGroup, L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c) SemCAMS Midstream Co. (SemCAMS) Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'. Also, 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. Further, Fitch Ratings 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. SEMGROUP LP: Bankruptcy Impacts Independent Oil Producers --------------------------------------------------------- Small oil producers in Oklahoma, Kansas, and Texas, are hit the greatest by SemGroup, L.P.'s bankruptcy filing, the Wall Street Journal reported. SemGroup, which said it lost US$2,400,000,000 from trading in the oil-futures market, collects oil from more than 2,000 independent oil producers and operators in southwest United States, and most of these independent producers have not been paid for delivered oil since June or early July. SemGroup, in its petition for protection under Chapter 11, disclosed that it owes more than US$1,300,000,000 to oil vendors. SemGroup listed BP Oil Supply Co. as its largest unsecured creditor with more than US$159,000,000 in trade debt. Since July 22, 2008, the day SemGroup sought bankruptcy protection, until July 29, oil producers Dorado Oil Company, D.E. Exploration, Inc., Mull Drilling Company, and Bominflot Atlantic, Inc., filed reclamation notices demanding payment of oil they delivered to SemGroup and its affiliates during the 45 days before July 22. Other independent oil producers, including Sunoco Logistics Partners, L.P., ARC Resources, Ltd., Petroflow Energy, Ltd., and Hiland Holdings GP, LP, expressed that they have million dollar collectibles from SemGroup for the delivery of oil. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 gives vendors rights to reclaim payment for goods delivered to the debtor during the 45-day period before the debtor commenced a Chapter 11 filing. The vendor has until the 20th day after the Chapter 11 filing to deliver a reclamation demand to the debtor. The BAPCPA also gives vendors the right to receive an administrative expense claim for the value of goods delivered within 20 days before the Chapter 11 filing provided that the goods were sold "in the ordinary course of business." Mike Terry, president of the Oklahoma Independent Petroleum Association, told the Journal that "[t]here will be some oil taken off the market." However, traders in the physical oil market, according to the Journal, said any significant change to the amount of crude shipped via SemGroup's pipelines isn't expected to become apparent before August 2008. According to Dow Jones Newswires, Semgroup's collapse has illuminated the inner workings of the U.S.' energy markets. Unlike oil futures that are listed on the New York Mercantile Exchange, real barrels of crude oil change hands in thousands of transactions daily in an opaque physical market dominated by often secretive trading companies. Whether these firms will retain their influence in the wake of SemGroup's bankruptcy filing in the market remains to be seen, as key participants along the energy supply chain scramble to keep oil flowing, the report said. 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. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc. The CCAA stay expires on Aug. 20, 2008. SemGroup L.P.'s 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. (SemGoup Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * On July 25, 2008, the Troubled Company Reported that Fitch Ratings downgraded the ratings of SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all ratings. The withdrawn ratings include Issuer default Rating D assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS Midstream Co. Fitch Ratings has downgraded, removed from Rating Watch Negative, and simultaneously withdrawn (a) SemGroup, L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c) SemCAMS Midstream Co. (SemCAMS) Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'. Also, 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. Further, Fitch Ratings 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. SEMGROUP LP: Selects Weil Gotshal as Bankruptcy Counsel ------------------------------------------------------- SemGroup L.P. sought authority from the U.S. Bankruptcy Court for the District of Delaware to employ Weil, Gotshal & Manges LLP, as their bankruptcy counsel, nunc pro tunc to the bankruptcy filing. The Debtors selected Weil Gotshal as their attorneys because of the firm's extensive experience and knowledge in the rights of debtors and creditors, and Chapter 11 business reorganizations. As the Debtors' counsel, Weil Gotshal will: (a) take all necessary action to protect and preserve the Debtors' estates, including the prosecution on behalf of the Debtors' estates, the defense of any actions commenced against those estates, negotiation of disputes, and the preparation of objections to claims filed against the estates; (b) prepare, on the Debtors' behalf, necessary motions, applications, answers, orders, reports and other legal papers necessary to the administration of the Debtors' estates; (c) take all necessary or appropriate action in connection with a Chapter 11 plan, disclosure statement, and all related documents, as well as other actions as may be required in the administration of the Debtors' estates; and (d) perform other necessary legal services in connection with the Debtors' Chapter 11 cases. Prior to the bankruptcy filing, Weil Gotshal received US$1,100,000 from the Debtors for professional services performed and expenses incurred, as an advanced payment to cover charges from July 10, 2008, to the bankruptcy filing. The Debtors will pay Weil Gotshal professionals according to their customary hourly rates: Professional Hourly Rates ------------ ------------ Members and Counsel US$650 to US$900 Associates US$355 to US$595 Paraprofessionals US$155 to US$290 The Debtors will also reimburse Weil Gotshal for any necessary out-of-pocket expenses the firm incurs while providing services for the Debtors. Martin A. Sosland, Esq., at Weil Gotshal, assured the Court that the members, counsel, and associates of Weil Gotshal are "disinterested persons" as the term is defined under Section 101(14) of the Bankruptcy Code. 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. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc. The CCAA stay expires on Aug. 20, 2008. SemGroup L.P.'s 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. (SemGoup Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * On July 25, 2008, the Troubled Company Reported that Fitch Ratings downgraded the ratings of SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all ratings. The withdrawn ratings include Issuer default Rating D assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS Midstream Co. Fitch Ratings has downgraded, removed from Rating Watch Negative, and simultaneously withdrawn (a) SemGroup, L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c) SemCAMS Midstream Co. (SemCAMS) Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'. Also, 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. Further, Fitch Ratings 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. SEMGROUP LP: Celtic, et al. Disclose Financial Exposures -------------------------------------------------------- Various entities disclosed financial exposures to the bankruptcy filing of SemGroup L.P. and its debtor-affiliates. A. Celtic Exploration Celtic Exploration Ltd. has potential financial exposure to SemCAMS ULC, a Canadian subsidiary of U.S. based SemGroup LP, relating to the marketing of a portion of the company's natural gas and associated by-products production. SemGroup filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In addition, SemCAMS filed an application to obtain an order under the Companies' Creditors Arrangement Act (Canada) in the Court of Queen's Bench of Alberta Judicial District of Calgary. Celtic has a potential financial exposure of approximately CUS$30,000,000 relating to natural gas and associated by-product sales, net of processing costs. The Company is now marketing its natural gas through an alternative purchaser, with the agreement of SemCAMS. These new arrangements are effective immediately. At this time, Celtic cannot determine the period within which or the amount of the financial exposure that will ultimately be collected. Celtic is diligently pursuing all options available to recover the amounts owing to the Company. Celtic has sufficient available bank credit lines to finance the potential financial exposure, without affecting the planned 2008 capital expenditure budget of CUS$180,000,000. The amount of the potential financial exposure represents approximately 17% of the Company's forecasted annualized exit 2008 funds from operations of CUS$176,500,000. This forecast is based on commodity price assumptions of US$96.00 per barrel for WTI oil and US$9.75 per mmbtu for NYMEX natural gas. Applying the full potential financial exposure, Celtic's debt to 2008 exit funds from operations ratio would remain under 1.0 times. B. Iteration Energy Iteration Energy Ltd. announced that it has potential exposure of approximately CUS$16,000,000 to SemCanada Crude Company and SemCAMS, both Canadian subsidiaries of SemGroup, L.P., relating to the marketing of a portion of the Company's crude oil, natural gas liquids and natural gas production. SemCanada, togehter with SemCAMS, filed for creditor protection in Canada under the CCAA. As of this date, the company is not able to quantify the portion, if any, of the US$16,000,000 exposure that will be collectible. C. Orleans Energy Orleans Energy Ltd. announces that it has estimated potential financial exposure of approximately US$8,600,000 to SemCAMS ULC, a Canadian subsidiary of SemGroup L.P., relating to the marketing of a portion of the company's natural gas and natural gas liquids sales for the month of June 2008 and for 22 days in July 2008. The contract pertaining to the production volumes purchased by SemCAMS has been terminated and does not represent an ongoing exposure for Orleans. As of the date of reporting, Orleans is not able to neither determine the period within which nor quantify with certainty the portion of the exposure that will be ultimately collected from SemCAMS. However, the monetary exposure amount is not considered significantly material to Orleans' overall financial position nor is it anticipated to impair the company's ability to fund its remaining 2008 capital expenditures program. Based on the company's current market guidance projections, applying the full potential financial exposure, Orleans' year-end net debt-to-2008 cash flow from operations would remain under one times. As of the close of business on July 25, 2008, the company had US$17,680,000 of bank debt drawn against its available US$65,000,000 operating credit facility in-place with a Canadian chartered bank. D. KA Fund Advisors KA Fund Advisors, LLC has evaluated the impact of recent adverse developments related to SemGroup, L.P. and its affiliate, SemGroup Energy Partners, L.P., on the three publicly-traded funds it manages: * Kayne Anderson MLP Investment Company (KYN: 26.73, -0.21, -0.8%), * Kayne Anderson Energy Total Return Fund, Inc. (KYE: 26.98, -0.36, -1.3%), and * Kayne Anderson Energy Development Company (KED: 22.82, +0.29, +1.3%). Between July 16 and July 24, 2008, the net asset values per share of KYN, KYE and KED decreased US$0.04, US$0.07 and US$0.31 per share, respectively, as a result of the decline in value of securities issued by SemGroup and SGLP. For KYN and KYE, the impact is equivalent to a decline in NAV of 0.2% compared to the NAV as of July 10, 2008. For KED, the impact is equivalent to a decline in NAV of 1.3% compared to the NAV as of May 31, 2008, the most recently published NAV for KED. SemGroup is a privately held, diversified energy midstream company that transports, stores and markets multiple energy products. SGLP, an affiliate of SemGroup, is a publicly-traded master limited partnership that stores and transports crude oil and asphalt. SGLP derives a substantial portion of its revenues from SemGroup. On July 22, 2008, SemGroup filed Chapter 11 bankruptcy due to claimed liquidity issues. SGLP has not filed for bankruptcy and is not included in SemGroup's filing. As a result of these events, SemGroup's 8.75% Senior Notes declined in value from approximately 96.5% of par on July 16, 2008 to approximately 17% of par on July 24, 2008. SGLP's common unit price has declined significantly from a close of US$22.80 per unit on July 16, 2008 to a close of US$7.72 per unit on July 24, 2008. As of July 24, 2008, KED no longer held any SemGroup debt or any SGLP common units. 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. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc. The CCAA stay expires on Aug. 20, 2008. SemGroup L.P.'s 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. (SemGoup Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * On July 25, 2008, the Troubled Company Reported that Fitch Ratings downgraded the ratings of SemGroup, L.P., SemCrude L.P, and SemCAMS Midstream Co. and simultaneously withdrawn all ratings. The withdrawn ratings include Issuer default Rating D assigned to SemGroup, L.P., SemCrude, L.P., and SemCAMS Midstream Co. Fitch Ratings has downgraded, removed from Rating Watch Negative, and simultaneously withdrawn (a) SemGroup, L.P.'s Senior unsecured to 'C' from'B/RR3'; (b) SemCrude L.P.'s Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'; and (c) SemCAMS Midstream Co. (SemCAMS) Senior secured working capital facility to 'CCC' from 'BB-/RR1'; Senior secured revolving credit facility to 'CC' from 'B+/RR1'; and Senior secured term loan B to 'CC' from 'B+/RR1'. Also, 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. Further, Fitch Ratings 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. =========== T U R K E Y =========== ALBARAKA TURK: Fitch Holds 'BB-' LT Foreign Currency ID Rating -------------------------------------------------------------- Fitch Ratings has affirmed Turkey-based Albaraka Turk Katilim Bankasi A.S.'s (Albaraka Turk) ratings as: -- Long-term foreign currency Issuer Default rating: affirmed at 'BB-' -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'BB-' -- Short-term local currency IDR: affirmed at 'B' -- National Long-term rating: affirmed at 'A+(tur)' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '3' The Outlooks for the Long-term ratings are Stable. The Long-term foreign and local currency, Support and National ratings reflect Fitch's view over the probability of support from Albaraka Turk's majority shareholder, Albaraka Banking Group in case of need. Fitch believes ABG would have a high propensity to support, but its ability to do would be limited resulting in a moderate probability of support. The Individual rating reflects Albaraka Turk's good asset quality, minimal market risk and improved capitalization. These factors are offset by the bank's small size in the Turkish financial system, limited diversification of funding and slight concentration into certain sectors. Albaraka Turk is primarily involved with its core lending business, as it does not trade any interest bearing instrument. Its loan book is slightly concentrated on construction. Otherwise, asset quality and reserve coverage are good and improving, helped also by recovery of impaired receivables. The company has been sustaining good operating profitability in line with its peers. Net fees and commissions are also growing very fast but the contribution to operating revenue is still low. The bank has adequate liquid assets and funding has proved stable but the bank's small size and structural maturity mismatch make it potentially vulnerable. Capitalization was considerably improved with the issuance of new capital through an IPO in 2007. Albaraka Turk is the fourth and the smallest participation bank in Turkey, with a market share of 18.9% in the participation banking segment. The bank is a member of the Bahrain-registered ABG, a leading Islamic banking group. The bank offers corporate and retail finance, leasing and international banking. Albaraka Turk has 90 branches, nearly half of which are located in the Istanbul area. KUVEYT TURK: Fitch Holds LT Foreign Currency ID Rating at 'BB' -------------------------------------------------------------- Fitch Ratings has affirmed Kuveyt Turk Katilim Bankasi A.S.'s ratings as: -- Long-term foreign currency Issuer Default rating: affirmed at 'BB' -- Short-term foreign currency IDR: affirmed at 'B' -- Long-term local currency IDR: affirmed at 'BBB-' -- Short-term local currency IDR: affirmed at 'F3' -- National Long-term rating: affirmed at 'AAA(tur)' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '3' The Outlooks for the Long-term ratings are Stable. Kuveyt Turk's Long-term foreign and local currency IDRs, Short- term local currency IDR, Support and National ratings reflect the moderate likelihood of support from its majority shareholder, Kuwait Finance House ('A'/Outlook Stable), in case of need. The Individual rating reflects its below-average, albeit improving, efficiency and loan concentration in certain sectors. These are offset by Kuveyt Turk's improving capitalization and relatively diversified funding. Kuveyt Turk's operating profitability improved, bringing it closer to the peer average and making it more sustainable, with a greater focus on stable fee-generating businesses. The bank has higher exposure to retail lending than its peers and longer loan maturities. Asset quality has continuously improved since 2006, although there is some loan concentration in certain sectors and reserve coverage of impaired loans remains moderate. Kuveyt Turk maintains a stable deposit base, with no dependence on large funding sources, and its asset liquidity remains adequate. Kuveyt Turk was incorporated in 1989 and is 62%-owned by KFH. Kuveyt Turk engages in interest-free banking, primarily involving commercial lending. The bank also targets retail customers and has a larger exposure to that segment, as compared to immediate peers. Kuveyt Turk is the third-largest of Turkey's four participation banks in terms of funds collected, with a 21% market share in this segment at end-2007. TURKIYE IS: Fitch Affirms 'B' Short-Term Foreign Currency IDR ------------------------------------------------------------- Fitch Ratings has affirmed Turkiye Is Bankasi A.S.'s ratings at Long-term foreign currency Issuer Default 'BB', LT local currency IDR 'BBB-', ST foreign currency IDR 'B', ST local currency IDR 'F3', National LT 'AAA(tur)', Individual 'C' and Support '4'. The Outlooks on the LT foreign and local currency IDRs and the National LT rating remain Stable. The Support Rating Floor is affirmed at 'B+'. The LT foreign currency IDR is constrained by Turkey's 'BB' Country Ceiling. The LT local currency IDR is rated two notches above the sovereign's due to the bank's stand-alone financial strength. The Individual rating reflects Isbank's dominant position in Turkey's banking system as the largest bank by equity and with leading market shares in assets (14.3%), loans (12.5%) and deposits (13.8%) at end-2007. In addition, the rating acknowledges its good profitability, healthy risk profile, stable core funding and adequate capitalization, but also its exposure to a volatile operating environment. Profitability improved in 2007, driven by strong growth in retail and commercial lending. Compared to its peers, Isbank's performance was also satisfactory in 2007, a trend which continued into Q108. Despite slowing growth, gross loans including leasing receivables represented a higher 47% of assets at end-Q108 (2006: 41%, 2005: 36%), reflecting the shift in Isbank's asset composition in favour of loans. Loan portfolio is dominated by Turkish lira retail and commercial loans, while the share of FX loans rose to 33% in Q108 (2007: 29.1%) on the back of project finance loans. Its asset quality remains sound as the loan portfolio continues to be diversified and healthy. Isbank's structural maturity mismatch and potential liquidity risks are mitigated to some extent by its stable core deposit base and continued access to both international syndicated loan markets and money market funds. At end-Q108 Isbank's consolidated regulatory Tier 1 ratio declined to 17.6% (2007: 20.5%), mainly due to an increase in risk-weighted assets. However, it remains adequate and one of the highest among Turkey's private banks. Isbank was established in 1924 as Turkey's first private commercial bank to support the country's economic development. It was Turkey's largest bank by equity at end-Q108. Isbank Group's core business is retail, corporate, commercial and private banking services. The group is also active through its subsidiaries in a wide range of financial services and has a portfolio of non-core strategic participations in large Turkish companies - mainly in the glass and telecommunications sectors. * TURKEY: S&P Shifts Outlook to Stable, Affirms Low-B Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on the Republic of Turkey to stable from negative. S&P also said that it affirmed its 'BB-/B' foreign currency, 'BB/B' local currency, and 'trAA+/trA-1' Turkish national scale credit ratings on the republic. The 'BB+' transfer and convertibility assessment on Turkey was also affirmed. "The revision of the outlook to stable from negative reflects Turkey's diminished near-term political uncertainties," explained S&P's credit analyst Farouk Soussa. "This follows the July 30 decision by the constitutional court not to ban the ruling Justice and Development Party and many of its leading politicians from office. The resulting improved prospects for policy continuity and political stability will likely bolster investor confidence, widening the sources for the financing of Turkey's large current account deficit." The external imbalances in the Turkish economy continue to constrain the ratings. Turkey's current account registered a deficit of 5.7% of GDP and 25% of current account receipts in 2007. Although net inward foreign direct investment offset 53% of the deficit, with portfolio equity making up for another 9%, external borrowing remained substantial. Since 2003, the cumulative net portfolio and debt inflow into Turkey has amounted to 17% of 2007 GDP, almost 30% of which was invested in domestic debt and equity markets. This massive cumulative inflow has subjected the relatively shallow Turkish domestic and foreign exchange markets to pronounced downswings when foreign investors withdraw their funds en masse in response to either changing global liquidity conditions or a perceived increase in domestic risk. Such swings could have a detrimental effect on Turkey's creditworthiness if they are prolonged, raising the government's financing costs and hurting the domestic economy. Supporting the ratings are the Turkish government's track record of sound economic and fiscal management as well as the significant structural improvements these have yielded to Turkey's public finances since 2001. Moreover, since 2003, privatization and foreign investment have picked up considerably, and real economic growth has averaged almost 7%. "The stable outlook on Turkey balances the improvement in the republic's external financing prospects and underlying fundamentals against its vulnerability to financing shocks," Mr. Soussa added. "If the government continues to reduce the economy's vulnerability to external financing shocks through continued reform and fiscal consolidation, the ratings on Turkey could improve. If significant slippage in fiscal policy occurs or there is a resurgence in political risks beyond what we currently envisage, the ratings could come under downward pressure." ============= U K R A I N E ============= ALFA BANK: Moody's Affirms Ba3 Long-Term Foreign Currency Rating ---------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 long-term foreign currency rating of Alfa Bank Ukraine's upcoming senior unsecured notes expected to be issued by Ukraine Issuance Plc, a UK-based special-purpose company. The notes will be issued on a limited recourse basis with the sole purpose of financing senior unsecured loans to Alfa Bank Ukraine. The rating affirmation follows Moody's receipt of further details of the issuance, which do not affect the rating. This includes the tenor of the notes, which is expected to be three years with a put option after 1 year, and the amount of the notes, which is US$250 million. The outlook for the rating is stable. According to Moody's, the Ba3 rating is based on the fundamental credit strength of ABU -- currently rated Ba3/Not Prime/E+/Aa1.ua -- and does not incorporate any potential systemic support from the Ukrainian authorities in case of need. It does, however, incorporate a moderate probability of parental support from the bank's affiliated companies. Moody's also notes that, according to the terms of the programme, ABU will have to comply with a number of covenants such as a negative pledge, a limitation on mergers and consolidations as well as restrictions on mergers, disposals, transactions with affiliates, restricted payments and maintenance of capital adequacy. According to the rating agency, the likelihood of any of the above covenants being triggered is relatively low. However, if any such were to occur, it could potentially have adverse liquidity implications for the bank and might exert severe downward pressure on its ratings. ABU is required to maintain full compliance with prudential supervision ratios and other requirements of the National Bank of Ukraine. Moody's cautions that the transaction also has an embedded rating trigger whereby the notes will become payable if, within 90 days after a change of control of ABU, its ratings are downgraded by one or more notches or publicly placed under review for possible downgrade. Moody's notes that a change of control of ABU will be viewed as a risk factor; if the noteholders' put option were to be exercised, this could result in the need to repay a sizeable obligation, thus placing a burden on the bank's financial resources and potentially destabilising its ratings further. Alfa Bank Ukraine is headquartered in Kiev, Ukraine, and reported total assets of US$3.2 billion and net income of US$8.8 million under IFRS-compliant Condensed Interim Financial Information and Review Report as of March 31, 2008. =========================== U N I T E D K I N G D O M =========================== CHRYSLER LLC: Mulling Foreign Auto Tie Ups to Slash Costs --------------------------------------------------------- Chrysler LLC is mulling potential joint ventures with foreign counterparts to cut costs and to secure finances, The Wall Street Journal reports, citing people familiar with the matter. Reuters relates that Chrysler and Fiat S.p.A. are negotiating production and distribution deals, while Chrysler is discussing plans with Tata Motors Ltd. relating to the sale and assembly of Chryslers' Jeep Wrangler SUV in India and other Asian markets through Tata Motors. In April 2008, the Troubled Company Reporter disclosed that Chrysler and Nissan Motor Co., Ltd., entered into two new agreements for the supply of products between both companies. Nissan agreed, in January, to supply Chrysler with a new car based on the Nissan Versa sedan for limited distribution in South America on an Original Equipment Manufacture basis in 2009. According to WSJ, owner Cerberus Capital Management LP is seeking ways to push Chrysler's turnaround plan, including joint ventures with foreign auto makers. Chrysler is also restricting its costs on development projects and reconsidering increasing production plans for the fuel-efficient Phoenix auto engine. As disclosed in the TCR on July 29, 2008, Chrysler's financial arm, Chrysler Financial, will cease offering vehicle lease alternatives in the U.S. to focus more on financing vehicle purchases. In addition, Chrysler is planning to reduce 1,000 salaried jobs by September 30 in an effort to cut costs amid a deep slump in U.S. auto sales. About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As disclosed in the Troubled Company Reporter-Europe on Aug. 1, 2008, Fitch Ratings has downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. As reported in the Troubled Company Reporter on June 24, 2008, Moody's Investors Service affirmed the B3 Corporate Family Rating and Probability of Default Rating of Chrysler LLC, but changed the outlook to negative from stable. 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, citing the need to evaluate the financial damage being inflicted by deteriorating U.S. industry conditions -- largely as a result of high gasoline prices. Included in the CreditWatch placement are the finance units Ford Motor Credit Co. and DaimlerChrysler Financial Services Americas LLC, as well as GM's 49%-owned finance affiliate GMAC LLC. CHRYSLER LLC: Fitch Highlights Effect of Declining Resale Values ---------------------------------------------------------------- The recent announcements by the financing arms of Chrysler LLC, GM Corp. and Ford Motor Co. regarding the discontinuation or overhaul of their auto lease programs underscores the impact of rapidly declining vehicle resale values, according to Fitch Ratings. Earlier this week Chrysler Financial, GMAC and Ford Motor Credit announced significant changes to their auto lease businesses with Chrysler Financial suspending their U.S. auto lease program all together. GMAC announced it will stop subsidizing leases in Canada and will eliminate certain lower credit quality borrowers from consideration domestically. Ford announced significant increases in lease rates for certain SUVs and trucks. All three companies indicated that their decision was influenced by the ongoing decay in the resale values of vehicles coming off lease. Coincident with these declines, Fitch is currently completing a review of its auto lease ratings with a focus on the 2007 and 2008 vintages. Fitch currently has 20 public ratings outstanding from 10 transactions representing approximately US$7.2 billion in principal outstanding from 2007 and 2008 U.S. captive finance company issuances. The initial review is expected to be completed over the next two to three weeks. "As Fitch has noted, dramatic drops in the value of used cars is impacting the entire auto ABS sector, but those declines are having an amplified affect on the performance of auto lease transactions," said Managing Director and U.S. ABS group head Kevin Duignan. "Transactions from 2007 and 2008 may not have built enough credit enhancement to offset the potential increase in residual value losses while still maintaining coverage consistent with Fitch's original ratings." U.S. captive finance companies, in particular, are experiencing higher than expected residual value losses due to the steep drop in the values of vehicles coming off lease especially for SUVs and trucks. Fitch's base case residual value loss expectation for these companies' auto lease ABS transactions has increased by 20-30% since the second half of 2007 as value declines accelerated. However, current data suggests that actual declines are exceeding this range in certain transactions with further deterioration expected. 'While ratings in the auto lease sector have traditionally been remarkably stable, the rapid rate of decline in vehicle values over the past six months is unprecedented and will put those ratings to the test,' said ABS Senior Director Ravi Gupta. About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. CHRYSLER LLC: S&P Cuts Rating; Keeps Watch on Bank Lines Renewal ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered the ratings on General Motors Corp., Ford Motor Co., and Chrysler LLC, all to 'B-' from 'B'. The ratings on GM and Ford were removed from CreditWatch with negative implications, where they had been placed on June 20, 2008. Chrysler will remain on CreditWatch pending the renewal of certain bank lines at DaimlerChrysler Financial Services Americas LLC, which S&P expects to be completed in the next few days. If the bank lines are renewed as expected, S&P would affirms the ratings on Chrysler and DCFS and remove them from CreditWatch. At the same time, S&P lowered the ratings on GMAC LLC, Ford Motor Credit Co., and DCFS, also to 'B-' from 'B', and removed the ratings on GMAC and Ford Credit from CreditWatch negative, where they had also been placed on June 20, 2008. The ratings on DCFS will remain on CreditWatch negative until its bank line renewal is complete. S&P also lowered the corporate credit rating on FCE Bank PLC, Ford Credit's European bank, to 'B' from 'B+'. The outlooks on all the companies are negative. (The issuer credit rating on GMAC's Residential Capital LLC mortgage unit [CCC+/Negative/C] is not affected by these rating actions.) The downgrades reflect mounting cash losses in GM's, Ford's, and Chrysler's North American automotive operations and deteriorating conditions in the U.S. auto market. "We believe sharply lower U.S. light-vehicle demand and the recent dramatic shift in demand away from large pickup trucks and SUVs amid higher gas prices will complicate the turnaround efforts of all three automakers and reduce their currently adequate liquidity considerably over the next year and a half," said Standard & Poor's credit analyst Robert Schulz. "This will leave them more vulnerable to already adverse industry, economic, and credit market conditions." The greatest threats to the ratings over the next 18 months are the depth of economic weakness and the extent of the demand shift away from light trucks in the U.S. S&P estimates GM will use as much as US$16 billion from its global automotive operations this year, including cash restructuring costs and costs related to bankrupt former unit Delphi Corp. Of that amount, GM used US$3.9 billion in the first quarter. S&P estimate Ford will burn as much as US$12 billion to US$13 billion from its global automotive operations this year, including cash restructuring costs. Of that amount, Ford used US$4.9 billion in the first six months of 2008. Chrysler does not make its financial results public, but S&P expects the company to experience a net cash outflow from its automotive operations in 2008, its first full year since being acquired by Cerberus Capital Management L.P. Aggressive fixed- cost reduction and conservative industry sales assumptions have kept Chrysler at or above most of its financial targets through the first quarter and likely through the second quarter. Liquidity for all three automakers is adequate for now, but will be significantly reduced in the second half of this year and during 2009 by continued heavy losses and cash outflows. Industry sales, including those of pickups and SUVs, continue to weaken, which will likely lead to higher cash losses for all three automakers in the second half of the year. S&P expects U.S. light-vehicle sales to be 14.4 million units in 2008, the lowest in 15 years and down sharply from 16.1 million units in 2007. S&P expects sales to fall further in 2009, to about 14.1 million units, as the economy remains weak and housing prices and consumers' access to credit remain under pressure. S&P estimates that there is a 20% chance that auto sales in 2008 and 2009 will plummet to 13.6 million and 11.7 million units, respectively, which would present an overwhelming challenge for all three Michigan-based automakers. Another major headwind has been plummeting prices for used SUVs and pickups, which is causing alarming losses on leasing activities and will lead Ford Credit to be unprofitable for 2008, even excluding a US$2 billion charge booked in the second quarter. GM and GMAC will likely take impairment charges in the upcoming quarters. There has been periodic speculation that the Michigan-based automakers might eventually seek to reorganize under Chapter 11 bankruptcy protection. Managements at all three companies have strongly denied any such intention and appear committed to executing on their turnaround plans. Few of the automakers' problems--including lower sales, adverse product mix shifts, and high commodity costs--would be altered by a bankruptcy filing. S&P believe the most likely trigger for a bankruptcy filing would be cash reserves falling to dangerously low levels, rather than the automaker's making a strategic choice to seek Chapter 11 reorganization. The outlooks on each company and its financial unit reflect our expectation that liquidity at each automaker will be almost halved by cash losses in 2008 and 2009 but will not sink to dangerously low levels, even if industry conditions do not materially improve by the end of next year. S&P could revise the outlooks, or place the ratings on CreditWatch and subsequently lower them, if it came to believe that cash and short-term investments plus secured revolving credit facility availability would drop below certain levels before the end of 2009. This could occur if U.S. light-vehicle sales drop well below 14 million units this year and next, or if higher gas prices lead to an even more substantial decline in light-truck demand beyond current levels. S&P could also lower the rating on GM if GMAC loses access to the asset-backed securitization markets for any extended period. S&P does not expect to revise the outlook to stable or raise the ratings within the next year, given the economic outlook, ongoing turnaround plan execution risk, and potential pressure on liquidity. DAWNAY DAY: BDO Stoy Hayward Takes Control of Two Companies ----------------------------------------------------------- Dawnay Day Properties and Dawnay Day International have been put under BDO Stoy Hayward's control, various reports say. BDO, Times Online relates, has been appointed administrator to Dawnay Day International, which according to the Telegraph had gross assets of US$3 billion and managed another US$4.5 billion. BDO, however, said other businesses of the group will continue to trade under the existing management. BDO, the Telegraph adds, is now in control of 65 of the group's operations. A TCR-Europe report on July 21, 2008, disclosed creditors of Dawnay Day Group have appointed Shay Bannon, Toby Underwood and Mark Shaw of BDO Stoy Hayward as joint administrative receivers for Starlight Investment and Insureprofit, two of its property companies. Creditors opted to call in receivers after they resolved they could no longer support the company-led restructuring under Ernst & Young. Headquartered in London, Dawnay Day is a diversified international financial and property group. Since 2004 Dawnay Day has four property funds, Puma (U.K. commercial property), Dawnay Shore Hotels (U.K. hotels), Dawnay Day Carpathian (Eastern Europe) and Dawnay Day Treveria (German) . According to the Times, the group has interests in more than 250 companies, through hundreds of subsidiaries and holding companies, and owns and manages more than US$10 billion (GBP5 billion) worth of assets. EUROMANX AIRWAYS: Creditors Unlikely to Recover Investments ----------------------------------------------------------- PriceWaterhouseCoopers LLP's Mike Simpson, liquidator for Euromanx Airways IOM Ltd., has told around 7,000 creditors that they might not receive their investments back, Ilse of Man Examiner reports. Mr. Simpson told the Examiner that Euromanx had little assets when it ceased operations in May 2008. The company had around GBP3 million in debt "There's not so much in the way of assets but certainly dealing with such a large number of creditors has been challenging," Mr. Simpson was quoted by the Examiner as saying. The company also owes around GBP1.1 million to preferential creditors including various branches of government which are owed VAT, National Insurance and money paid out as compensation for employees' unpaid wages, the Examiner relates. The High Court of Wales and England on July 10, 2008, issued a winding up order against Euromanx and appointed Mr. Simpson as liquidator. Mr. Simpson has called a creditors meeting at 12 noon on Aug. 4, 2008. Euromanx Airways IOM Ltd. -- http://www.euromanx.com/-- provides flights from Isle of Man to locations that includes Belfast, Liverpool, London and Manchester. FGIC CORP: Fitch Junks Rating on US$325MM of 6% Senior Notes ------------------------------------------------------------ Fitch Ratings has downgraded these ratings on FGIC Corporation and its financial guaranty insurance subsidiaries Financial Guaranty Insurance Company and FGIC UK Ltd. as shown below: FGIC FGIC UK Ltd. -- Insurer financial strength to 'CCC' from 'BBB'. Fitch has placed these ratings on Rating Watch Evolving. FGIC Corp. -- Long-term Issuer to 'CCC-' from 'BB'; -- US$325 million of 6% senior notes due Jan. 15, 2034 to 'CCC-' from 'BB'. Fitch has placed these ratings on Rating Watch Negative. The rating action is based on Fitch's expectation that FGIC will experience further credit deterioration on its book of business backed by residential mortgage-backed securities. This deterioration could lead to further additions in loss reserves which will increase the possibility that FGIC could become subjected to some form of regulatory intervention. Moreover, as of March 31, 2008 FGIC would have negative statutory capital if not for the $600 million 'contingent gain' the company recognized related to a structured finance CDO transaction, known as Havenrock II, that is currently being disputed in court. Fitch continues to monitor developments with respect to this dispute for potential implications to the financial condition of FGIC. In the event that some form of regulatory intervention were to occur, FGIC's exposure to credit derivatives would be subject to immediate termination with its outstanding counterparties. In this scenario, FGIC would be required to settle the CDS contracts at their current market value; a level that Fitch believes is considerably greater than the company's existing claims-paying resources. Given the heightened risk of regulatory intervention, and FGIC's inability to date to raise additional third-party capital, either from its existing owners or externally, it is likely the company will need to pursue the commutation of some of its most capital intensive exposures, namely SF CDOs underwritten in CDS form. Such options are more likely given the precedent set by the recently announced commutation of several SF CDO contracts between Security Capital Assurance Ltd. and Merrill Lynch & Co., Inc. The Rating Watch Evolving reflects: -- The uncertainty noted above related to the outcome of the Havenrock II dispute, and the potential for either favorable or negative outcomes; -- Fitch's expectation for higher RMBS loss reserves in the next several quarters; -- Ongoing negotiations with external reinsurance providers that could ultimately improve certain policyholder positions; and -- Rating implications tied to Fitch's ultimate viewpoint related to the nature of the negotiations surrounding probable commutations. Given FGIC's greatly weakened financial condition, Fitch would evaluate any commutation to judge whether it was 'distressed' and viewed as an economic default per Fitch's rating methodology. The Rating Watch Negative on FGIC Corp.'s long-term issuer and senior unsecured debt ratings reflects Fitch's expectation that if FGIC's financial condition continues to deteriorate and triggers some form of regulatory intervention, regulators will likely prevent FGIC from paying dividends to FGIC Corp. in order to service its debt or other holding company operating expenses. Fitch will comment on the impact of the downgrade of FGIC's IFS rating on the ratings of securities insured by FGIC in a separate release. FGIC Corp. is a U.S. holding company whose primary operating financial guaranty subsidiaries are FGIC and FGIC U.K Ltd. For March 31, 2008, FGIC Corp. reported consolidated assets under Generally Accepted Accounting Principles of $6.7 billion and shareholders' equity of approximately $548 million. On an aggregated basis, net par outstanding for FGIC totaled $308 billion as of March 31, 2008. FROSTFRENCH LTD: Goes Into Administration; Owes GBP4 Million ------------------------------------------------------------ FrostFrench Ltd., a clothing company, has gone into administration, racking up debts of more than GBP4 million, the Independent reports. FrostFrench owners Sadie Frost and Jemima French, the report relates, blamed poor sales and management changes for the company's troubles. "After external investment in FrostFrench in 2006, in which they had to relinquish their overall control and influence in the company, a new management team was installed. Sadie and Jemima have been unhappy with the strategic direction and many of the day-to-day decisions," FrostFrench said in a statement. The two, however, set up a new company, FrostFrench Retail Ltd., along with a new Norwegian investor, the report discloses. According to the report, the business and assets of the previous company, whose administration is being handled by Asher Miller of David Rubin & Partners, were transferred to Frost French Retail, ensuring the future of the brand and preserving jobs. The report adds FrostFrench underwear and accessories will still be sold at Debenhams. The Islingston store will also remain open despite the closure of the King's Road boutique. NUNEATON BOROUGH: Appoints Martin Coyne as Liquidator ----------------------------------------------------- Nuneaton Borough Football Club called in Martin Coyne of Poppleton & Appleby to liquidate its assets, the Coventry Telegraph reports. Mr. Coyne, the report relates, was appointed liquidator of the club at a shareholders' and creditors' meeting. The report says the club incurred deficiencies of more than GBP1 million. "Nuneaton Borough was operated by Stadia Safe Ltd. but was wound up last week owing considerable amounts of money to the Revenue and Excise, trade creditors and directors," Mr. Coyne was quoted by the Coventry Telegraph as saying. "Several creditors - and supporters - have asked us to investigate what happened to proceeds from that sale, and we are currently undertaking that work." Mr. Coyne added Borough Leisure Ltd. is taking over the club, which will be renamed Nuneaton Town next season, the report discloses. The club was relegated two divisions from Conference to BGB Souther Midlands Division after it went into liquidation. Nuneaton Borough AFC -- http://www.nbafc.net/-- plays football in the Conference North division of English football: The highest level of football within the market town of Nuneaton, Warwickshire. RESLOC UK 2007-1: S&P Places BB/B Ratings on Negative Watch ----------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with negative implications its credit ratings on the class E1b, E2b, and F1b notes issued by ResLoc U.K. 2007-1 PLC. All other classes of notes in this transaction are unaffected by the CreditWatch placements. On the June 2008 interest payment date, ResLoc 2007-1 drew GBP904,548 (7.6%) of its opening quarter reserve fund balance, leaving the reserve fund at 90% of the reserve fund required amount. This draw is mainly due to a loss of GBP1,061,551 in the quarter. Total delinquencies on the June interest payment date were 9.9% and 90+ day delinquencies were 5%. These values are low compared with other 2007 vintage nonconforming residential mortgage backed securities (RMBS) transactions. However, S&P has seen 48 properties repossessed in Q2, so it may see further losses in the coming quarters. The weighted-average loan-to-value ratio as reported in the June investor report is 81.7%. If house prices continue to decrease, this will place further pressure on losses experienced on the sale of the repossessed properties. S&P has received loan-level data for this transaction and will now carry out a more detailed cash flow analysis to investigate whether these classes of notes can retain their current ratings. The results of this review and any changes in the ratings are expected in due course. The notes, issued in May 2007, are backed by a portfolio of first-ranking residential mortgages secured over freehold and leasehold properties in the U.K. The loans were originated by GMAC (75.3%), Advantage (11%), Amber (10.2%), and Victoria (3.5%). Ratings List: -- GBP485.8 Million, EUR395.5 Million, And US$303.7 Million Mortgage-Backed And Excess Spread Floating-Rate Notes Ratings Placed On CreditWatch Negative: Class To From ----- -- ---- E1b BB/Watch Neg BB E2b BB/Watch Neg BB F1b B/Watch Neg B SOLUTIA INC: Posts US$16Mln Net Loss for 2nd Qtr Ended June 30 --------------------------------------------------------------- Solutia Inc. reported net sales of US$1,095,000,000 for the second quarter of 2008, a 20% increase over net sales of US$911,000,000 for the same period in 2007. Approximately 8% of this increase is attributable to the consolidation of Flexsys sales beginning on May 1, 2007, following Solutia's acquisition of the remaining 50% share of its former joint venture. On a pro forma basis, adjusting 2007 second quarter sales to include Flexsys, sales increased 14% over the prior year. Solutia had a consolidated loss of US$16,000,000 for the second quarter 2008 compared to income from continuing operations of US$27,000,000 for the same period in 2007. Solutia's results were impacted by certain events affecting comparability totaling an after-tax loss of US$33,000,000 in 2008 and an after-tax gain of US$10,000,000 in 2007. After consideration of these special items in both periods, income held steady at US$17,000,000 in the second quarter of 2008 or US$0.28 per share, despite increased depreciation and amortization expense, higher interest cost and higher stock compensation expense. "We are pleased to report solid second quarter growth, driven by strong volumes and price increases across our businesses," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "Importantly, even though the escalation of raw materials accelerated in the second quarter compared to the first, our focused pricing actions and strong market positions allowed us to recover a significant percentage of this cost increase. We also continued to benefit from our geographically diverse business, as international growth -- particularly in China -- more than offset softening domestic markets." Mr. Quinn added, "In addition to producing strong results during the second quarter, we announced two important strategic developments which will have the potential to further enhance our transformation to a high-margin pure play specialty chemical company. We retained HSBC to review strategic alternatives for the Nylon business, and laid the foundation for a key longer- term growth opportunity by establishing our Saflex Photovoltaic business." Reported consolidated EBITDA for the second quarter decreased to US$67,000,000 from US$110,000,000 in 2007. After taking into consideration events affecting comparability and non-cash stock compensation expense (as detailed below in the summary of events affecting comparability) of net charges totaling US$51,000,000 and net gains totaling US$26,000,000 for 2008 and 2007, respectively, Adjusted EBITDA increased to US$118,000,000 from US$84,000,000. On a pro forma basis, including Flexsys results for April 2007 on a 100% basis, Adjusted EBITDA in the second quarter 2008 increased US$25,000,000 from US$93,0000,000 over the prior year. The most significant adjustment in the current quarter was a negative margin impact from the selling of inventory that was fair valued at the time of emergence as required by fresh start accounting. This impact was a non-cash charge of US$49,000,000. The company's June 30, 2008 balance sheet showed US$4.7 billion in total assets, US$3.7 billion in total liabilities, and US$1.7 billion in stockholders' equity. Unallocated and Other After taking into consideration unusual charges and gains and decreases in equity earnings as a result of the Flexsys acquisition, corporate and other expenses were down US$15,000,000 compared to the second quarter 2007 predominantly due to lower adjustments to the company's LIFO inventory valuation allowance. Cash Flow Cash from operations before reorganization activities for six months ended June 2008 was a usage of US$63,000,000. This included a US$204,000,000 increase in inventory and trade accounts receivable, of which approximately 60% is due to escalating raw material and energy costs and the company's implementation of related price increases. This increase in working capital was partially offset by improved supplier payment terms. Outlook The company is raising its full-year 2008 adjusted EBITDA guidance to a range of US$400,000,000 to US$425,000,000 from its previous estimate of US$375,000,000 to US$400,000,000. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No. 129; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: Uncertainty Looms at Nylon Biz; Exploring Options -------------------------------------------------------------- The future of Solutia, Inc.'s nylon business continues to be uncertain, Brazoria County, Texas-based The Facts reports, citing Dan Jenkins, spokesperson of Solutia, who said that it could be months before HSBC Securities (USA), Inc., could find a solution. Solutia has retained HSBC Securities to explore strategic alternatives with respect to its nylon business, which generated net sales of US$1,892,000,000 in 2007, accounting for 51% of Solutia's total revenue. HSBC is tasked to explore strategies for Solutia, which including keeping its nylon business, selling it or possibly creating a joint venture with another company, Mr. Jenkins said, according to The Facts. "They're starting to put together some of their documentation." According to Mr. Jenkins, demand continues to be strong for nylon. However, he said , the company is evaluating its nylon business because energy costs and the costs for the raw materials to make it, much of it petroleum-based, are rising. CEO Jeffry Quinn said the company is considering strategic alternatives for its nylon business at a time when demand for nylon is high. Mr. Quinn and Jonathon P. Wright, senior vice president of Solutia Inc. and president of the company's integrated nylon division, have said they are mulling on giving up the nylon business to other firms who may be able produce nylon more cheaply. Mr. Wright said that the cost of the raw materials to make nylon is becoming a drain on Solutia's other businesses. "If the price of oil went back to 2002 levels, then the nylon division would be more profitable, and we probably would think about staying in the business," he told the Pensacola News Journal. Solutia's nylon business operates six plants and includes the Chocolate Bayou plant, located in Alvin, Texas and Gonzalez Plant, Pensacola Florida. Paul Zawila, Solutia's environmental health and safety lead at Chocolate Bayou, said the plant employs about 525 people as well as 350 contractors. The Gonzalez plant has 1,500 employees. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No. 129; Bankruptcy Creditors' Service, Inc.,http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: Registers 600 Million Stock and Debt Securities ------------------------------------------------------------ Solutia Inc. has filed Amendment No. 1 to its Form S-3 registration statement under the Securities Act of 1933 with the U.S. Securities and Exchange Commission. Solutia amends the Registration Statement, as necessary, to delay its effective date until further amendments, which specifically states that the Registration Statement will thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement will become effective on a date determined by the SEC. The prospectus, subject to completion, dated July 16, 2008, is available for free at http://ResearchArchives.com/t/s?302f As previously reported, Solutia has the authority to issue a total of 600,000,000 shares of capital stock consisting of: -- 500,000,000 shares of Common Stock at US$0.01 per share; and -- 100,000,000 shares of Preferred Stock at US$0.01 apiece As of March 31, 2008, Solutia has 60,763,046 shares of issued and outstanding Common Stock, and no shares of Preferred Stock have been issued and outstanding. * * * Solutia has filed a notice of effectiveness of its Form S-3 with the SEC. The effectiveness date is July 25, 2008. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No. 129; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: ITC Probes Firms for Infringement of Flexys Patent --------------------------------------------------------------- Flexsys(R) America L.P., a subsidiary of Solutia Inc., said that the United States International Trade Commission has voted to institute an investigation of certain rubber antidegradants, antidegradant intermediates, and products containing the same. The respondents named in the case are: Sinorgchem Co., Shandong; Korea Kumho Petrochemical Co., Ltd. (KKPC); Kumho Tire Co., Inc.; and Kumho Tire USA, Inc. This investigation is based upon a complaint filed by Flexsys on May 12, 2008, which asserts that the importation of Sinorgchem's 4-ADPA or any antidegradants made from its 4-ADPA into the U.S. violates section 337 of the U.S. Tariff Act, due to Sinorgchem's infringement upon Flexsys' patents for the production of 4-ADPA intermediates. "This action is one example of the aggressive measures we are taking to prevent our competitors from illegally misappropriating our patented technologies," said Jim Voss, senior vice president of Solutia Inc. and president of Flexsys. "We will continue to protect Flexsys' significant investment in manufacturing processes by enforcing our legal rights on a global scale." In this case, Flexsys seeks an exclusion order barring the importation of Sinorgchem's 4-ADPA as well as 6PPD made from Sinorgchem's 4-ADPA into the U.S., including that manufactured by KKPC. The technology at issue in this case relates to environmentally friendly methods for preparing compounds used in the manufacture of rubber products such as tires, belts and hoses. These compounds prevent premature degradation of rubber due to exposure to sun, heat, ozone and other factors. One such antidegradant is 6PPD, which is manufactured and sold by Flexsys under the brand name Santoflex(r) 6PPD. The material known as 4-ADPA is an intermediate compound used in the production of 6PPD. Flexsys also has a civil patent infringement case against Kumho Tire, KKPC and Sinorgchem, which is currently pending in U.S. District Court for the Northern District of Ohio. Flexsys products play an important role in the manufacture of tires and other rubber products, such as belts, hoses, seals and footwear. Flexsys is a global business with offices, manufacturing facilities and technology centers around the world. Flexsys has annual sales of more than US$650,000,000, about two-thirds of which take place outside the U.S. Flexsys Unit to Halt Wales Manufacturing by Year-End The Troubled Company Reporter related on June 19, 2008, that Flexsys(r) intends to cease manufacturing at its facility in Ruabon, Wales, by the end of 2008, with complete site exit by the end of 2011. "This action is part of our strategy to strengthen the profitable,market-leading positions that Flexsys holds across most of its portfolio, while taking steps to limit our exposure in smaller product lines where Flexsys is no longer cost competitive," said Jim Voss, president of Flexsys and senior vice president of Solutia Inc. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No. 129; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) VONAGE HOLDINGS: Commences Tender Offer for 5% Convertible Notes ---------------------------------------------------------------- Vonage Holdings Corp., on July 30, 2008, commenced a cash tender offer for any and all of its outstanding 5.0% Senior Unsecured Convertible Notes due 2010. The tender offer is being made in connection with the proposed refinancing of Vonage's debt announced last week. Vonage is offering to purchase the notes at a price of US$1,000 for each US$1,000 of principal amount of notes tendered, plus accrued and unpaid interest up to, but not including, the date the notes are paid pursuant to the offer. The tender offer is conditioned upon US$185,000,000 minimum principal amount of Notes being validly tendered and not properly withdrawn, the receipt by Vonage of the proceeds from a US$95 million senior secured first lien credit facility and the issuance by Vonage and its wholly owned subsidiary, Vonage America Inc., as co- issuers, of US$90 million of convertible secured second lien notes contemplated by the commitment letter, dated July 22, 2008, between Vonage and Silver Point Finance, LLC and satisfaction of certain other conditions. The tender offer will expire at midnight, Eastern Time on Aug. 27, 2008 unless extended. Any notes purchased pursuant to the tender offer will be canceled, and those notes will cease to be outstanding. The complete terms and conditions of the tender offer are set out in the Offer to Purchase filed with the U.S. Securities and Exchange Commission. Vonage noteholders may obtain copies of all the offering documents, including the Offer to Purchase, free of charge at the SEC's website (www.sec.gov) or by directing a request to D.F. King & Co., Inc., the Information Agent for the offer, at 48 Wall Street, New York, NY 10005 and by telephone 212-269-5550, for banks and brokers, or 1-888-628-9011 for others. Vonage has retained Miller Buckfire & Co., LLC to act as Dealer Manager in connection with the offer. American Stock Transfer & Trust Company, LLC has been appointed to act as the depositary for the offer, and D.F. King & Co., Inc. has been appointed to serve as information agent. Neither the Board of Directors of Vonage nor any other person makes any recommendation as to whether holders of notes should tender their notes, and no one has been authorized to make such a recommendation. Holders of notes must make their own decisions as to whether to tender their notes, and, if they decide to do so, the principal amount of notes to tender. 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. * S&P Reports U.K. Universities Face Risks Despite High Revenues ---------------------------------------------------------------- From a credit perspective, the U.K. higher education sector has made positive strides in the past few years, but it faces increasing risks in the medium-to-long term, according to a new report card published by Standard & Poor's Ratings Services, titled "U.K. Universities Enjoy Higher Revenues But Still Face Spending Pressures." "The U.K. university sector has benefited from higher revenues from tuition fees and growth in overseas student numbers, while the most research-intensive universities have seen a significant increase in their research income," S&P's credit analyst Hugo Foxwood said. "At the same time, however, universities are facing significant expenditure pressures, mainly relating to staff costs and capital investment in academic and residential infrastructure." The higher education sector may also face more intense competition, as an increasing number of U.K. universities compete with one another for overseas students as they seek to grow, or even just maintain student numbers in the face of an expected demographic decline. Maintaining global competitiveness will continue to require investment in staff and infrastructure. For many universities, this may mean accepting greater financial risk in the short term, in the hope of strengthening their overall competitiveness in the longer term. "In a future environment that is more competitive and more global -- and therefore less regulated -- we would expect the credit differentials of U.K. universities to widen, with certain universities ceasing to exist," Mr. Foxwood said. "We believe, however, that those universities publicly rated by Standard & Poor's are in a strong position to deal with these longer-term challenges." * U.K. Corporate Insolvencies Down 3.1% in 2Q 2008, PwC Says ------------------------------------------------------------ PricewaterhouseCoopers LLP conducted its own analysis into corporate insolvencies and found that the number of corporate insolvencies in quarter two of 2008 actually fell by 3.1% from the first quarter of the year, but were up by 22% on the same quarter of last year. In total, 3,277 businesses across England and Wales entered into insolvency in April, May and June of this year. However, even though this number is down on the previous quarter, when taking into account seasonal trends �- this figure is still at a five year high. Mike Jervis, partner in the business recovery services practice at PricewaterhouseCoopers LLP, commented: "Despite the small decrease in the figures this quarter, the numbers of insolvencies continue to rise on an annual basis at around 10%, as we predicted in January. We do think the numbers will continue to rise at least at this rate throughout the year. Firstly, because there are an increasing number of companies in work-out and secondly, because many management teams have not been through a downturn before. We recommend that they re-think their scenario planning, if necessary on a worst case basis, to manage through the downturn. "However, insolvency is not viewed as a death sentence anymore and businesses are seeing that insolvency techniques can be used as a mechanism to salvage and revitalize ailing operations. Used in the right circumstances, insolvency procedures including pre-packaged administrations can help to rescue a company, saving jobs, and preserving value for the company and continuity for suppliers.� The high levels of insolvencies continue to be driven by the retail and construction sectors. There were 449 insolvent construction companies in quarter two 2008 �- a 35% increase on the same period last year, and 432 retail companies went insolvent �- a 28% increase on the same time last year. When looking at the figures on a 12 month rolling basis, both are also seeing five year highs this quarter with 431 and 500 insolvencies respectively. In contrast, the manufacturers -� who have traditionally fared worse in a downturn �- are currently showing a five year low in insolvencies on the 12 months to the end of quarter two. This may be a reflection of the attractiveness of the U.K. market as the euro grows in strength against the pound. Commenting on the construction figures, Barry Gilbertson, partner in the property team at PricewaterhouseCoopers LLP, said: "In addition to the high numbers of construction insolvencies, the real estate sector is also starting to show some signs of pain with an 18% increase in insolvencies on the last quarter and a 92% increase on the same quarter last year with 117 insolvencies. "It is clear that the consumer downturn is now starting to have a real effect on the construction industry, but the slowdown in the industry is not yet fully visible. A large number of the construction insolvencies are sub-contractors to the housing industry whose pipelines of work have all but dried up following the slowdown in residential property as many projects are mothballed or stopped before they even begin. "We expect to see the problems in the industry further impacted by the amount of speculative built properties which are now unable to find tenants, giving no impetus for projects in the pipeline to be built. In addition, having a property pre-let provides no guarantee on occupation as previous downturns have shown that businesses are willing to walk away from pre-let property and lose their deposits if necessary." PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. * BOND PRICING: For the Week July 25 to July 29, 2008 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Kommunal Kredit Austria AG 0.500 03/15/19 CAD 65.09 0.250 10/14/26 CAD 40.45 Immofinanz Immobilien 2.750 01/20/14 EUR 66.56 Republic of Austria 0.000 10/10/25 EUR 72.59 5.000 10/24/35 EUR 64.35 0.000 02/21/16 EUR 72.59 5.000 10/24/35 EUR 64.35 BELGIUM Fortis Bank 8.750 12/07/10 EUR 54.64 FINLAND ------- M-Real Serla 7.250 04/01/13 EUR 66.99 Muni Finance PLC 0.500 04/26/13 AUD 72.86 1.000 10/30/17 AUD 60.65 1.000 02/27/18 AUD 59.78 1.000 11/21/16 NZD 63.23 0.250 06/28/40 CAD 21.23 0.500 09/24/20 CAD 61.92 FRANCE ------ Alcatel S.A. 4.750 01/01/11 EUR 14.74 Altran Technologies S.A. 3.750 01/01/09 EUR 12.66 Calyon 6.000 06/18/47 EUR 46.56 CAP Gemini S.A. 2.500 01/01/10 EUR 53.14 1.000 01/01/12 EUR 46.75 Club Mediterranee S.A. 3.000 11/01/08 EUR 67.16 4.380 11/01/10 EUR 45.90 Essilor Intl 1.500 07/02/10 EUR 64.06 Europcar Groupe 8.130 05/15/14 EUR 65.25 8.130 05/15/14 EUR 64.92 FCC Rome Alliance Funding 2.260 01/08/21 EUR 70.31 Groupe Vial 2.500 01/01/14 EUR 31.49 Havas S.A. 4.000 01/01/09 EUR 10.82 Infogrames Entertainment S.A. 4.000 04/01/09 EUR 0.25 Ingenico 2.750 01/01/12 EUR 16.31 Maurel & Prom 3.500 01/01/10 EUR 21.33 Publicis Group 1.000 01/18/18 EUR 45.51 Rhodia S.A. 0.500 01/01/14 EUR 34.13 Scor S.A. 4.125 01/01/10 EUR 2.08 Soc Air France 2.750 04/01/20 EUR 21.41 St Gobain 5.630 11/15/24 GBP 78.21 Theolia S.A. 2.000 01/01/14 EUR 20.16 Valeo 2.380 01/01/11 EUR 41.99 Wavecom S.A. 1.750 01/01/14 EUR 18.36 Wendel Invest S.A. 2.000 06/19/09 EUR 44.00 4.380 08/09/17 EUR 63.45 4.880 09/21/15 EUR 73.24 4.880 11/04/14 EUR 74.19 4.880 05/26/16 EUR 69.59 GERMANY ------- Callahan NRH 16.000 07/15/10 US$ 0.01 KfW Bankengruppe 0.500 10/30/13 AUD 70.73 0.500 12/19/17 EUR 68.38 1.250 05/23/20 EUR 73.05 1.250 07/29/20 EUR 72.82 5.000 07/21/25 EUR 67.94 5.000 08/10/30 EUR 66.21 1.250 07/07/20 EUR 73.83 5.000 09/01/25 EUR 70.35 Landeskreditbank Baden- Wuerttemberg Foerderbk 0.500 05/10/27 CDN 44.46 Landwirtschaftliche Rentenbank AG 1.000 03/29/17 NZD 61.88 GREECE ------ Fage Dairy Industries 7.500 01/15/15 EUR 60.08 ICELAND ------- Glitnir Banki HF 6.000 03/05/12 GBP 68.61 4.380 02/05/10 EUR 76.72 Kaupthing Bank 6.500 02/03/45 EUR 41.75 7.130 05/19/16 US$ 106.34 6.130 10/04/16 US$ 73.44 5.750 10/04/11 US$ 75.02 5.750 10/04/11 US$ 73.71 IRELAND ------- Banesto Finance Plc 6.120 11/07/37 EUR 6.12 Depfa ACS Bank 0.500 03/03/25 CDN 48.81 0.250 07/08/33 CDN 28.96 Irish Nationwide Building Society 5.500 01/10/18 GBP 60.44 Irish Perm Plc 2.500 02/15/35 EUR 50.04 Ono Finance II 8.000 05/16/14 EUR 64.89 ITALY ----- Alitalia SPA 7.500 07/22/10 EUR 65.71 Risanamento S.p.A. 1.000 05/10/14 EUR 37.02 Telecom Italia 5.250 03/17/55 EUR 73.55 LUXEMBOURG ---------- Ak Bars Bank 8.000 10/27/08 US$ 100.22 Beverage Pack 9.500 06/15/17 EUR 73.42 Global Yatirim Holding 9.250 07/31/12 US$ 74.19 Globus Capital Finance SA 8.500 03/05/12 US$ 74.44 IT Holding Fin 9.880 11/15/12 EUR 65.20 Kloeckner Fin. Intl 1.500 07/27/12 EUR 73.00 Lighthouse International 8.000 04/30/14 EUR 73.23 Nell AF S.A. 8.380 08/15/15 EUR 64.30 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 22.73 ALB Finance BV 9.250 09/25/13 US$ 74.24 7.880 02/01/12 EUR 71.63 BK Ned Gemeenten 0.500 06/27/18 CDN 68.56 0.500 02/24/25 CDN 48.85 EM.TV Finance B.V. 5.250 05/08/13 EUR 3.90 Hypo Real ES Finance 5.500 08/20/08 EUR 40.25 Indah Kiat Intl 11.880 06/15/02 US$ 53.00 IVG Finance B.V. 1.750 03/29/17 EUR 53.92 Kazkommerts Fin 8.500 06/13/17 US$ 73.06 Kazkommerts Intl 6.880 02/13/17 EUR 72.18 7.500 11/29/16 US$ 73.12 KBC Ifima NV 5.880 02/07/25 US$ 72.21 Lehman Bros TSY B.V. 2.000 03/18/15 EUR 73.73 4.169 02/16/17 EUR 62.97 6.000 02/15/35 EUR 53.17 2.000 03/16/35 EUR 40.91 7.000 05/17/35 EUR 43.25 7.250 10/05/35 EUR 38.10 6.000 11/02/35 EUR 40.51 3.050 09/22/14 EUR 77.19 Montell Finance B.V. 8.100 03/15/27 US$ 58.28 Natl Invester Bank 25.982 05/07/29 EUR 31.19 Ned Waterschapbk 6.000 06/01/35 EUR 62.33 6.500 08/15/35 EUR 54.67 6.000 06/30/45 EUR 57.22 NXP BV/NXP FUNDI 8.630 10/15/15 EUR 65.00 8.630 10/15/15 EUR 65.65 9.500 10/15/15 US$ 69.00 Portugal Tel Fin 4.500 06/16/25 EUR 74.49 Rabobank Groep N.V. 2.500 02/22/35 EUR 59.13 5.000 02/28/35 EUR 58.13 6.000 05/09/35 EUR 59.96 0.440 04/08/20 EUR 72.27 Tjiwi Kimia Finance BV 13.25 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 73.58 Norske Skogindustrier ASA 7.000 06/26/17 EUR 60.76 SPAIN ----- General De Alqui 2.750 08/20/12 EUR 74.58 SWEDEN ------ AB Svensk Export 0.500 03/27/13 AUD 74.03 SWITZERLAND ----------- Cytos Biotechnology 2.880 02/20/12 CHF 73.06 S-Air Group 0.130 07/07/05 CHF 11.97 Swiss RE 6.000 12/15/08 CHF 69.89 UBS AG Jersey 3.220 07/31/12 EUR 68.40 UNITED KINGDOM -------------- Anglian Water Finance Plc 2.400 04/20/35 GBP 51.83 Aspire Defence 4.670 03/31/40 GBP 64.18 4.670 03/31/40 GBP 67.61 Bradford&Bin BLD 5.750 12/12/22 GBP 68.49 6.630 06/16/23 GBP 64.93 Brit Insurance 6.630 12/09/30 GBP 77.98 Britannia Building Society 5.880 03/28/33 GBP 73.33 5.750 12/02/24 GBP 73.80 Cattles Plc 7.130 07/05/17 GBP 74.15 Enterprise Inns Plc 6.380 09/26/31 GBP 73.80 F&C Asset Management plc 6.750 12/20/26 GBP 70.96 Grainer Plc 3.630 05/17/14 GBP 57.63 Greene King Finance PLC 5.110 03/15/34 GBP 73.57 Hammerson Plc 6.000 02/23/26 GBP 76.09 HBOS Plc 4.500 03/18/30 EUR 72.36 HSBC Bank Plc 3.750 05/18/15 EUR 73.97 Ineos Group Holdings Plc 7.880 02/15/16 EUR 64.24 7.880 02/15/16 EUR 64.17 8.500 02/15/16 US$ 67.59 Jaztel Plc 5.000 04/29/10 EUR 73.61 Longstone Finance PLC 4.900 04/19/31 GBP 74.92 Louis No1 Plc 10.000 12/01/16 EUR 69.58 8.500 12/01/14 EUR 70.50 8.500 12/01/14 EUR 70.17 Marston's Issuer PLC 5.640 07/15/35 GBP 74.41 5.180 07/15/32 GBP 74.21 National Grid Gas Plc 1.750 10/17/36 GBP 42.67 1.770 03/30/37 GBP 42.66 ONO Finance PLC 10.500 05/15/14 EUR 65.17 10.500 05/15/14 EUR 65.92 Rexam Plc 6.750 06/29/67 EUR 75.04 Royal BK Scotland 9.500 04/04/25 US$ 64.63 2.790 06/29/30 EUR 43.79 2.790 06/29/30 EUR 43.79 Slough Estates plc 5.750 06/20/35 GBP 72.23 Taylor Woodrow 6.380 05/24/19 GBP 53.29 TXU Eastern Funding 6.450 05/15/05 US$ 0.01 ********* 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 Atadero, Marie Therese Profetana 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 * * *