/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080922.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, September 22, 2008, Vol. 9, No. 188 Headlines A U S T R I A HERRENAUSSTATTER KIRCHBAUMER: Claims Filing Period Ends Sept. 30 JAKOB TURNER: Claims Registration Period Ends October 6 JAKOB TURNER & CO: Claims Registration Period Ends October 6 MALERBETRIEB GUSTAV: Claims Registration Period Ends October 8 SIRENETTA RESTAURANT: Claims Registration Period Ends October 7 B E L G I U M PORTOLA: Gets Initial OK to Use GECC's US$75 Mil. Facility F R A N C E DELPHI CORP: Chapter 11 Examiner Will Cause Delay, Committee Says DELPHI CORP: Equity Panel Taps Farrell Fritz as Conflicts Counsel DELPHI CORP: Joseph Firm to Step Down as Equity Panel Counsel EUROPCAR GROUPE: S&P Shifts BB- Credit Rating Outlook to Negative G E O R G I A * GEORGIA: IMF Approves US$750 Million Stand-By Arrangement G E R M A N Y A+O PROJEKT: Claims Registration Period Ends September 30 ACS HAUS: Claims Registration Period Ends September 30 ALPHA-KLINIK FUER: Claims Registration Period Ends September 30 ANUBIS-WELTREISEN: Claims Registration Period Ends September 30 ARCHITEKTUR GMBH: Creditors' Meeting Slated for September 30 BENNKO BAU GMBH: Claims Registration Period Ends September 30 BOMBARDIER INC: Ends Learjet Development Agreement with Grob DUERR AG: Improved Liquidity Cues S&P to Lift Credit Rating to B+ KOS PLANUNGS: Claims Registration Period Ends Sept. 30 LEHMAN BROTHERS: German Finance Ministry Questions KfW Transfer MAX-LEUCHTEN GMBH: Claims Registration Period Ends Sept. 30 NACHRICHTENTECHNISCHE SYSTEM: Claims Filing Period Ends Sept. 30 WESTLB AG: Says Slightly Affected by Lehman Chapter 11 Filing I T A L Y ALITALIA SPA: Lone Bidder Walks Away on Unresolved Rescue Plan K A Z A K H S T A N ADJAMAL LLP: Creditors Must File Claims by November 12 ALBA CORPORATION: Claims Deadline Slated for November 12 CRAGE ENERGY: Claims Filing Period Ends November 12 DELTABANK: Moody's Assigns E+ Bank Financial Strength Rating KAPOLIGRAF JSC: Creditors' Claims Due on November 12 OIMAUYT LLP: Claims Registration Ends November 12 ROS SHYN: Creditors Must File Claims by November 12 STARLINE TOUR: Claims Deadline Slated for November 12 T. T. CORPORATION: Claims Filing Period Ends November 11 TARAZ STROY: Creditors' Claims Due on November 12 K Y R G Y Z S T A N TRANS-MAGISTRAL LLC: Creditors Must File Claims by Nov. 3 N E T H E R L A N D S TRONOX INC: FMR LLC Discloses Minimal Equity Stake TRONOX INC: S&P Lowers Corporate Credit Rating to CCC- from CCC+ R U S S I A AGRO-DON-SERVICE-STROY: Creditors Must File Claims by November 4 ASTRA PLUS: Creditors Must File Claims by October 4 BASH-NEFTE-PROM-STROY: Creditors Must File Claims by October 4 EVROBALTIYA OJSC: Creditors Must File Claims by October 4 PLANT OF REINFORCED: Creditors Must File Claims by October 4 RUBTSOV-ENERGO-STROY: Creditors Must File Claims by October 4 TRADEMAKS LLC: Moscow Bankruptcy Hearing Set December 9 VAGON-ZHIL-STROY: Creditors Must File Claims by October 4 * Fitch: Russia's Investment Notion Could Lead to Liquidity Woes * RUSSIA: Biz Leaders Doubt Efforts to Stabilize Markets S P A I N TDA 26: Fitch Affirms Ratings on Two Note Classes at 'CCC' TDA 29: Fitch Affirms Rating on Class D Notes at 'CCC' S W E D E N FORD MOTOR: Urges Congress to Fund US$25BB Loan Program S W I T Z E R L A N D GAAZ WINTERTHUR: Creditors Have Until Oct. 22 to File Claims GENERAL MOTORS: Urges Congress to Fund US$25BB Loan Program GENERAL MOTORS: May Issue Securities to Raise Funds GROB AEROSPACE: Bombardier Ends Learjet Development Agreement KOECHLIN BAUMGARTNER: Oct. 31 Set as Deadline to File Claims MANGOLD WASTE: Creditors Must File Proofs of Claim by Oct. 31 R. BADER JSC: Deadline to File Proofs of Claim Set Oct. 31 REMATON JSC: Proofs of Claim Filing Deadline is Oct. 15 WABRENT LLC: Creditors' Proofs of Claim Due by Oct. 10 T U R K E Y * S&P Sees Little Progress in Turkish Transparency & Disclosure U K R A I N E BIG LINE: Creditors Must File Claims by September 25 BOTIYEVSKOYE BREADRECEIVING: Claims Filing Period Ends Sept. 26 FACTOR CJSC: Creditors Must File Claims by Sept. 26 FAREZ LLC: Creditors Must File Claims by Sept. 25 KADUTSEY-ARMA: Creditors Must File Claims by September 25 KARPATBUILDING: Creditors Must File Claims by Sept. 25 KOLOS-K LLC: Creditors Must File Claims by September 25 LEGION SPORT: Creditors Must File Claims by September 25 MICHURIN AGRICULTURAL: Creditors Must File Claims by Sept. 25 SLAVIANKA LLC: Creditors Must File Claims by September 27 WESTRESOURCE LLC: Creditors Must File Claims by September 26 YUTOR LLC: Creditors Must File Claims by Sept. 26 U N I T E D K I N G D O M FAMOUSCHALLEN LTD: Brings in Liquidators from Vantis GOLFIZUS LTD: Claims Filing Period Ends December 4 HURSTWOOD DEVELOPMENTS: Goes Into Administration HURSTWOOD FACILITIES: Goes Into Administration INGRAM MICRO: Economic Softness to Continue in September IRP REALISATIONS: Calls in Liquidators from BDO Stoy Hayward LEHMAN BROTHERS: Gets Interim OK to Borrow US$200MM from Barclays LEHMAN BROTHERS: US$138BB in Advances by JPMorgan Is Secured LEHMAN BROTHERS: To Sell Investment Mgmt Unit to Bain, Hellman LEHMAN BROTHERS: SIPC Does Not Expect Liquidation LEHMAN BROTHERS: U.S. Trustee Appoints Panel, RR Donnelly Quits LEHMAN BROTHERS: 3 Directors Dispose of Company Shares LEHMAN BROTHERS: Linklaters Advises Administrator PwC LEHMAN BROTHERS: Case More Complex Than Enron's, PwC States LEHMAN BROTHERS: UK Staff May Not Get Paid, Administrator Says LEHMAN BROTHERS: To Sell US$8MM Stake in Guyana Hotel by Year-End LEHMAN BROTHERS: Japan Banks, Insurers Have US$2.3BB Exposure LEHMAN BROTHERS: Asian Unit Quits as Citic Privatization Advisor LEHMAN BROTHERS: S&P Cuts Ratings on 11 Securities Transactions LEHMAN BROTHERS: S&P Cuts Five Ratings and Puts Under Dev. Watch MORGAN STANLEY: In Merger Talks with Wachovia SEA CONTAINERS: Files Amended Plan and Disclosure Statement SEA CONTAINERS: SCL Panel, et al., Balk at Disclosure Statement VICTORIA CAVENDISH: Joint Liquidators Take Over Operations WEARSIDE MARBLE: Taps Liquidators from Tenon Recovery * S&P Drops Ratings on Various European Leveraged Super Sr. Notes * European Construction Biz Diversifies to Cope Crunch, S&P Says * Fitch Weighs Latent Rating Impact of Lehman's Bankruptcy on CDOs * UK: ECB and Bank of England Inject Billions to Stabilize Markets * BOND PRICING: For the Week Sept. 15 to Sept. 19, 2008 ********* ============= A U S T R I A ============= HERRENAUSSTATTER KIRCHBAUMER: Claims Filing Period Ends Sept. 30 ---------------------------------------------------------------- Creditors owed money by LLC Herrenausstatter Kirchbaumer have until Sept. 30, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Gerhard Kucher St. Veiter Strasse 9 9020 Klagenfurt Austria Tel: 0463/507510 Serie Fax: 0463/507510-11 E-mail: rechtsanwalt@kucher-moessler.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Oct. 7, 2008, for the examination of claims at: The Land Court of Klagenfurt Meeting Room 225 Second Floor Klagenfurt Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on Sept. 2, 2008, (Bankr. Case No. 40 S 54/08v). JAKOB TURNER: Claims Registration Period Ends October 6 ------------------------------------------------------- Creditors owed money by LLC Jakob Turner have until Oct. 6, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Gerd Kapeller Kardinalschuett 9 9020 Klagenfurt Austria Tel: 0463/59 09 46 Fax: 0463/59 09 46-11 E-Mail: kapeller.gerd@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at [time] on [date] for the examination of claims at: The Land Court of Klagenfur Meeting Room 225 Second Floor Klagenfur Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on Sept. 3, 2008, (Bankr. Case No. 41 S 93/08m). JAKOB TURNER & CO: Claims Registration Period Ends October 6 ------------------------------------------------------------ Creditors owed money by LLC Jakob Turner & Co KG have until Oct. 6, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Gerd Kapeller Kardinalschuett 9 9020 Klagenfurt Austria Tel: 0463/59 09 46 Fax: 0463/59 09 46-11 E-mail: kapeller.gerd@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Oct. 13, 2008, for the examination of claims at: The Land Court of Klagenfur Meeting Room 225 Second Floor Klagenfur Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on Sept. 3, 2008, (Bankr. Case No. 41 S 92/08i). MALERBETRIEB GUSTAV: Claims Registration Period Ends October 8 -------------------------------------------------------------- Creditors owed money by LLC Malerbetrieb Gustav Huber have until Oct. 8, 2008, to file written proofs of claim to the court- appointed estate administrator: Mag. Clemens Richter Esteplatz 4 1030 Wien Austria Tel: 01/712 33 30 Fax: 01/712 33 30 30 E-mail: engelhart@csg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:45 p.m. on Oct. 22, 2008, for the examination of claims at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Bruck an der Leitha, Austria, the Debtor declared bankruptcy on Sept. 3, 2008, (Bankr. Case No. 36 S 100/08k). SIRENETTA RESTAURANT: Claims Registration Period Ends October 7 --------------------------------------------------------------- Creditors owed money by LLC Sirenetta Restaurant have until Oct. 7, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Friedrich Nusterer Riemerplatz 1 3100 St. Poelten Austria Tel: 02742/47087 Fax: 02742/47089 E-mail: ra-nusterer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:20 a.m. on Oct. 21, 2008, for the examination of claims at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Herzogenburg, Austria, the Debtor declared bankruptcy on Sept. 2, 2008, (Bankr. Case No. 14 S 133/08m). ============= B E L G I U M ============= PORTOLA: Gets Initial OK to Use GECC's US$75 Mil. Facility ---------------------------------------------------------- The Hon. Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware authorized Portola Packaging Inc. and its debtor-affiliates to obtain, on an interim basis, up to US$75,000,000 in debtor-in-possession financing from (i) GE Capital Markets Group Inc., as syndication agent, and General Electric Capital Corporation, as administrative and collateral agent, and (ii) Wayzata Investment Partners LLC, as administrative and collateral agent. He also authorized the Debtors to use cash collateral securing repayment of secured loan to the lenders. A hearing is set for Sept. 22, 2008, at 4:00 p.m., to consider final approval of the Debtors' motion. The Debtors told the Court that the lenders agreed to provide up to US$79,000,000 in financing, on a final basis. The committed US$79,000,000 consists of (i) a US$50,000,000 million in postpetition financing under the fifth amended and restated senior postpetition credit agreement dated Aug. 27, 2008, between the Debtors and GECC, and (ii) a US$79,000,000 less the GECC payoff amount under the second amended and restated postpetition credit agreement dated Aug. 27, 2008, among the Debtors and Wayzata. As of their bankruptcy filing, the Debtors owe at least US$48,306,767 plus accrued and unpaid interest of US$239,126 to GECC and US$22,500,000 plus accrued and unpaid interest of US$329,000 to Wayzata. Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor LLP, said that the Debtors have an immediate need to obtain the DIP financing and use cash collateral to permit the Debtors to, among other things: -- continue to operate their businesses; -- maintain business relationships with vendors, suppliers and customers; -- pay employee wages in the ordinary course; -- make necessary capital expenditures; -- satisfy other working capital and operational needs; and -- make intercompany transfers to non-debtor affiliates for similar purposes. Under the first lien DIP financing agreement, the DIP loan will incur a variable rate of 2.5% per annum plus a floating rate equal to the higher of (i) the rate publicly quoted from time to time by The Wall Street Journal as the "base rate on corporate loans posted by at least 75% of the nation's 30 largest banks" and (ii) the Federal Funds Rate plus 50 basis points per annum. Under the second lien DIP financing agreement, the DIP loan will accrue interest at 12.0%. Furthermore, the DIP liens will incur default rate of interest at 2.0% in excess of the rates otherwise payable, after the occurrence and during the continuance of an event of default. Furthermore, the DIP liens are subject to US$1,250,000 carve-out for payment of fees, expenses and costs of professionals retained by the Debtors or the committee. To secure their DIP obligations, the lenders will be granted allowed superpriority administrative expense claims over any and all other administrative claims against the Debtor pursuant to Section 364(c)(1) of the Bankruptcy Code. The DIP credit agreements contain customary and appropriate events of default including, among other things, failure to make required payments, default under other debt agreements, and breach of covenants and warranties. A full-text copy of the Second Amended and Restated Senior Postpetition Credit Agreement dated Aug. 27, 2008, is available for free at http://ResearchArchives.com/t/s?3227 A full-text copy of the Fifth Amended and Restated Senior Postpetition Credit Agreement dated Aug. 27, 2008, is available for free at http://ResearchArchives.com/t/s?3228 A full-text copy of the the 13 Week Cash Flow Budget is available for free at http://ResearchArchives.com/t/s?3229 About Portola Packaging Portola Packaging Inc. -- http://www.portpack.com/-- designs, manufactures, and markets a full line of tamper-evident plastic closures, bottles, and equipment for the beverage and food industries, as well as plastic closures and containers for the cosmetics industry. The company and 6 of its debtor-affiliates filed for Chapter 11 reorganization on Aug. 27, 2008 (Bankr. D. Del. Lead Case No. 08-12001). Edmon L. Morton, Esq., Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors as counsel. When the Debtors filed for protection from their creditors, they listed assets of between US$50 million and US$100 million, and debts of between US$100 million and US$500 million. The company has locations in China, Mexico and Belgium. =========== F R A N C E =========== DELPHI CORP: Chapter 11 Examiner Will Cause Delay, Committee Says ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in Delphi Corp.'s bankruptcy case asserts that the United States Bankruptcy Court for the Southern District of New York is not required to appoint an examiner in the Chapter 11 cases under Section 1104(c) of the Bankruptcy Code because a plan of reorganization has already been confirmed by the Court. CR Intrinsic Investors, LLC and Highland Capital Management, L.P.'s request is not supported by the terms of the statute or by any case law, asserts Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New York. The Committee asserts that while the Court has the discretion to appoint an examiner at this time notwithstanding Section 1104(c), it should not exercise that discretion here. Mr. Rosenberg contends that the downside to appointing an examiner at this stage vastly outweighs the upside. He argues that an examiner would simply distract all parties from dealing with the important matters at hand in the Chapter 11 cases. The Committee asserts that the current focus of the cases is the Debtors' request to enter into amendments to the Global Settlement Agreement and a Master Restructuring Agreement with General Motors Corporation. Mr. Rosenberg points out that because the Debtors seek in that motion to grant GM an administrative expense claim measured in the billions of dollars and a general release, the determination of what recoveries general unsecured creditors might receive will hinge on the outcome of that motion, regardless of whether or not an examiner is appointed. "An examiner is therefore likely only to cause delay and increase expenses without providing any benefit to the Debtors or their creditors." About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Equity Panel Taps Farrell Fritz as Conflicts Counsel ----------------------------------------------------------------- The Official Committee of Equity Holders in Delphi Corp.'s bankruptcy case seeks authority from the United States Bankruptcy Court for the Southern District of New York, pursuant to Sections 328 and 1103 of the Bankruptcy Code, and Rule 2014 of the Federal Rules of Bankruptcy Procedure, to retain Farrell Fritz, P.C., as conflicts counsel. Representing the Equity Committee, Bonnie Steingart, Esq., at Fried, Frank, Harris, Shriver & Jacobson LLP, in New York, narrates in Court that the Equity Committee's intent to retain Farrell Fritz stems from A-D Acquisition Holdings, LLC's, question whether Fried Frank was conflicted from further representation of the Equity Committee on matters in which the Committee was potentially adverse to the Plan Investors due to its representation of Appaloosa on matters unrelated to the Chapter 11 cases. This led to the retention of the Gregory P. Joseph Law Offices as conflicts counsel for the Equity Committee, which it sought and obtained on November 9, 2007, pursuant to Sections 328 and 1103 of the Bankruptcy Code, Mr. Steingart recalls. On May 16, 2008, the Debtors filed an adversary proceeding against the Plan Investors. Since then, the Joseph firm has been actively involved in the adversary proceeding on the Equity Committee's behalf. For reasons unrelated to any substantive aspects of its representation of the Committee, and no current conflicts have arisen in connection with the Joseph Firm's representation, it notified the Equity Committee of its firm desire to withdraw as conflicts counsel. After discussing the terms and conditions of the withdrawal, the Equity Committee consented to the Joseph Firm's withdrawal provided that the Equity Committee was able to obtain this Court's authorization to retain a substitute conflicts counsel and that the Joseph Firm would cover the costs associated with the transition to substitute conflicts counsel and not seek reimbursement of any amount from the Debtors. To ensure that the Equity Committee continues to have conflicts counsel to represent them in the mediation and litigation with the Plan Investors, the Equity Committee intends to retain Farrell Fritz to replace the Joseph Firm as conflicts counsel. Farrell Fritz is expected to render legal services in matters that may not be handled by Fried Frank due to conflicts of interest. As conflicts counsel to the Equity Committee, Farrell Fritz's responsibilities will include representing the Equity Committee in matters where Fried Frank has a conflict of interest or is otherwise unable to represent the Equity Committee. Those matters will include any legal services in connection with the pending litigation against the Plan Investors. The Equity Committee seeks to retain Farrell Fritz as its conflicts counsel because Farrell Fritz has extensive experience in the fields of business and financial litigation, bankruptcy and creditors' rights. Furthermore, Farrell Fritz's practice, which also includes banking and finance, corporate, securities and mergers and acquisitions, will permit it to fully represent the interest of the Equity Committee in an efficient and effective manner. The Equity Committee believes that Farrell Fritz is well-qualified and uniquely able to represent the Equity Committee effectively in these Chapter 11 Cases, Mr. Steingart relates. Farrell Fritz has not received a retainer. The firm will be compensated on an hourly basis and will be reimbursed for actual, necessary out-of-pocket expenses incurred in performing services. Farrell Fritz's rates are: Professional Hourly rate ------------ ----------- Louis A. Scarcella US$575 Ted A. Berkowitz 575 Law clerks/paralegals 75 to 225 Associates 250 to 360 Partners 425 to 595 Counsel 335 to 650 Louis A. Scarcella, a member of Farrell Fritz, assures the Court that her firm does not hold or represent any interest adverse to and has no connection with the Equity Committee, the Debtors, their creditors or any party-in-interest in matters upon which Farrell Fritz is to be retained. The Equity Committee also believes that Farrell Fritz is a "disinterested person" as that phrase is defined in Section 101(14) of the Bankruptcy Code. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Joseph Firm to Step Down as Equity Panel Counsel ------------------------------------------------------------- The Gregory P. Joseph Law Offices LLC seeks permission from the United States Bankruptcy Court fort the Southern District of New York to withdraw as conflict counsel for the Official Committee of Equity Security Holders in Delphi Corp.'s bankruptcy cases, including as counsel in the adversary proceedings between Delphi and Appaloosa Management L.P., et al. Peter R. Jerdee, Esq., a member of the Joseph Firm, relates that the firm has requested to end its representation for reasons unrelated to any substantive aspects of its representation of the Committee, and no current conflicts have arisen in connection with the Joseph Firm's representation. After due consideration, the Equity Committee acquiesced to the Joseph Firm's request, provided that the Committee first obtain and put in place replacement counsel and that the Joseph Firm cover the costs associated with the transition to replacement counsel. Mr. Jardee asserts (i) "good cause" is established by the Committee's consent to the firm's withdrawal and because its interests will be fully protected by successor counsel, (ii) the Committee will not be prejudiced by the Joseph Firm's withdrawal as conflict counsel; and (iii) the Joseph Firm has made appropriate arrangements with the Committee and its successor counsel to ensure that the Debtors' estates do not incur any incremental cost as a result of the withdrawal. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) EUROPCAR GROUPE: S&P Shifts BB- Credit Rating Outlook to Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services has revised the outlook on its 'BB-' long-term corporate credit ratings on France-based car rental company Europcar Groupe S.A. to negative from stable. "The outlook revision reflects Europcar's weaker earnings expectations over the short to medium term. S&P believes the company will find it difficult to maintain its credit metrics at the current levels, which are currently weak for the rating category," said S&P's credit analyst Anna Stegert. Europcar is the leading car rental firm in Europe. The company posted relatively solid second-quarter results, but like its competitors stated that economic conditions had become increasingly challenging and are likely to lead to slowing revenue growth and reduced earnings. About one-third of the company's revenues come from cyclical airport-related business that is likely to be affected by the slowing growth rate of passenger flights. Pricing held up in the first half of 2008, with a like-for-like decrease of revenues per day of only 0.6% at constant exchange rates. However, this is likely to come under further pressure if consumer demand weakens further in Western Europe, where Europcar generates virtually all of its revenues and earnings. As at June 2008, the company had adjusted debt of about EUR4.1 billion, including reported debt of EUR3.5 billion and adjustments for off-balance-sheet obligations and debt-like liabilities amounting to about EUR600 million. The company remains highly leveraged, with adjusted debt to capital rising to 84% as at June 2008 from 81% at year-end 2007, reflecting the highly seasonal nature of the business. The negative outlook reflects the possibility of a one-notch downgrade in the next few quarters should the company's operating and financial performance deteriorate from the current level. At the 'BB-' rating level, Europcar should achieve funds from operations to adjusted debt of at about 15%, a level comparable to that achieved in the previous year, and debt to capital of about 80% at year-end 2008 and beyond. ============= G E O R G I A ============= * GEORGIA: IMF Approves US$750 Million Stand-By Arrangement ----------------------------------------------------------- The Executive Board of the International Monetary Fund, on Sept. 15, 2008, approved an 18-month Stand-By Arrangement, with total access equivalent to SDR77.1 million (about US$750 million) to support the Georgian authorities' macroeconomic policies, aiming to rebuild gross international reserves and bolster investor confidence. The SBA involves exceptional access since it would exceed limits of 100 percent of Georgia's IMF quota annually and 300 percent of the quota (net of scheduled repurchases) cumulatively. An amount equivalent to SDR161.7 million (US$250 million) will be made available immediately, with the remaining balance distributed in six installments over the next 18 months. Following the Executive Board's discussion on Georgia, Mr. Takatoshi Kato, Deputy Managing Director and Acting Chairman, made the following statement: "In the wake of the early-August armed conflict, Georgia has experienced pressures on the capital account of its balance of payments that have been reflected in a decline in international reserves, a fall in bank deposits, and increased Eurobond spreads. The Fund has approved an 18-month US$750 million Stand-By Arrangement to make significant resources available to replenish international reserves and bolster investor confidence, with the aim of sustaining private capital inflows that have been critical to Georgia's economic growth in recent years. In addition to Fund resources, Georgia is expected to receive financial assistance from multilateral and bilateral donors and creditors in support of the reconstruction effort. "The program supported by the Stand-By Arrangement aims to limit the deterioration in the external accounts by containing the fiscal deficit, maintaining a cautious monetary policy stance, and further strengthening the financial sector. The immediate focus will be on avoiding liquidity disruptions and accepting higher fiscal spending on reconstruction. Georgia's track record of adjustment and reform over recent years has strengthened the structure of the economy and its ability to deal with the economic consequences of the shock. "On fiscal policy, the plan is to reduce current spending in order to free resources for relief and reconstruction. Concessional loans and grants are expected to be provided by multilateral and bilateral partners to supplement domestic resources in financing further reconstruction needs, and will be accommodated within the program's fiscal targets. "Monetary policy will focus on providing sufficient liquidity to the banking system while maintaining a stable exchange rate and an adequate level of international reserves. The program supports the authorities' short-term policy of avoiding excessive volatility in the exchange rate but envisages a return to a flexible exchange rate regime. "The banking system has been resilient to the current pressures, and the supervisory authorities are working with banks on plans to assess vulnerabilities and mitigate risks. The program envisages actions to improve the framework for managing liquidity. It also aims to strengthen the independence and capacity of the Financial Supervision Agency as well as cooperation between the Agency and the central bank," Mr. Kato said. Background and Program Summary Georgia's near-term growth prospects have been hit by the armed conflict in August 2008, but the economy is well placed to recover from the shock. The impressive record of adjustment and reform over recent years has strengthened the structure of the economy and its ability to deal with the economic consequences of the shock. Before the conflict, economic growth reached double digits, with inflation around 10 percent. The external current account deficit reached 20 percent of GDP in 2007 and was fully financed by private capital inflows, in particular foreign direct investment. Recent events have led to pressures on Georgia's capital account, reflected in a decline in international reserves, a fall in bank deposits, and increased Eurobond spreads. The program is designed to make significant resources available in order to replenish international reserves and bolster investor confidence, with the aim of sustaining private capital inflows that have been critical to Georgia's growth performance in recent years. The authorities' program aims to limit the deterioration in the external accounts by containing the fiscal deficit, maintaining a cautious monetary stance, and further strengthening the financial sector. On fiscal policy, the plan is to reduce current expenditures in order to free resources for relief and reconstruction. Currently available financing for 2008-09 comprises the proceeds of the US$500 million Eurobond issued this year, and privatization receipts that will be complemented by donors' support for the reconstruction effort. Monetary policy will focus on providing sufficient liquidity to the banking system while maintaining a stable exchange rate and an adequate level of international reserves. The program envisages actions to strengthen the framework for providing liquidity to the banking system, build up the capacity of the Financial Supervision Agency (FSA), strengthen its independence, and enhance cooperation between the central bank and the FSA. ============= G E R M A N Y ============= A+O PROJEKT: Claims Registration Period Ends September 30 --------------------------------------------------------- Creditors of a+o projekt GmbH have until Sept. 30, 2008, to register their claims with court-appointed insolvency manager Edgar Groenda. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Nov. 13, 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 Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen 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: Edgar Groenda Domshof 18-20 28195 Bremen Germany Tel: 0421-3686-0 Fax: 0421-3686-100 E-mail: InsOBremen@schubra.de Web site: www.schubra.de The District Court of Bremen opened bankruptcy proceedings against a+o projekt GmbH on Sept. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: a+o projekt GmbH Konsul-Schmidt-Str. 8f 28217 Bremen Germany ACS HAUS: Claims Registration Period Ends September 30 ------------------------------------------------------ Creditors of ACS haus GmbH have until Sept. 30, 2008, to register their claims with court-appointed insolvency manager Matthias Dieckmann. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.m. on Oct. 23, 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: Matthias Dieckmann Gute Anger 11 85356 Freising Germany Tel: 08161/988110 Fax: 08161/82472 The District Court of Munich opened bankruptcy proceedings against ACS haus GmbH on Aug. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ACS haus GmbH Liebigstr. 4 85354 Freising Germany ALPHA-KLINIK FUER: Claims Registration Period Ends September 30 --------------------------------------------------------------- Creditors of Alpha-Klinik fuer Knie- und Wirbelsaulenchirurgie GmbH have until Sept. 30, 2008, to register their claims with court-appointed insolvency manager Barbara Beutler. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Oct. 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Barbara Beutler Schwanthalerstr. 32 80336 Munich Germany Tel: 089/54511-0 Fax: 089/54511-444 The District Court of Munich opened bankruptcy proceedings against Alpha-Klinik fuer Knie- und Wirbelsaulenchirurgie GmbH on Aug. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Alpha-Klinik fuer Knie- und Wirbelsaulenchirurgie GmbH Effnerstr. 38 81925 Munich Germany ANUBIS-WELTREISEN: Claims Registration Period Ends September 30 --------------------------------------------------------------- Creditors of Anubis-Weltreisen Verwaltungs GmbH have until Sept. 30, 2008, to register their claims with court-appointed insolvency manager Heinrich Stellmach. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Oct. 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Osnabrueck Hall N 301 Kollegienwall 10 49074 Osnabrueck 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: Heinrich Stellmach Kollegienwall 3-4 49074 Osnabrueck Germany Tel: 0541/1817-0 Fax: 0541/1817210 E-mail: osnabrueck@stellmach-broeckers.de The District Court of Osnabrueck opened bankruptcy proceedings against Anubis-Weltreisen Verwaltungs GmbH on Aug. 21, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Anubis-Weltreisen Verwaltungs GmbH Grosse Strasse 27-32 49074 Osnabrueck Germany ARCHITEKTUR GMBH: Creditors' Meeting Slated for September 30 ------------------------------------------------------------ The court-appointed insolvency manager for Architektur GmbH, Christian Koehler-Ma will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:25 a.m. on Sept. 30, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 11:00 a.m. on Dec. 2, 2008, at the same venue. Creditors have until Oct. 2, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Christian Koehler-Ma Kurfuerstendamm 26a 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Architektur GmbH on Aug. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Architektur GmbH Dankelmannstr. 19 14059 Berlin Germany BENNKO BAU GMBH: Claims Registration Period Ends September 30 ------------------------------------------------------------- Creditors of Bennko Bau GmbH have until Sept. 30, 2008, to register their claims with court-appointed insolvency manager Dr. Per Hendrik Heerma. Creditors and other interested parties are encouraged to attend the meeting at 10:55 a.m. on Oct. 31, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Per Hendrik Heerma Jungfernstieg 50 20354 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Bennko Bau GmbH on Aug. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bennko Bau GmbH Suederstrasse 345a 20537 Hamburg Germany BOMBARDIER INC: Ends Learjet Development Agreement with Grob ------------------------------------------------------------ Bombardier Aerospace is assuming complete responsibility for the detail design and manufacturing of all primary and secondary structures for the all-new Bombardier Learjet 85 midsize business jet. Learjet has terminated its development agreement with Grob Aerospace AG of Switzerland. "Given the uncertainty surrounding Grob's insolvency, Learjet has decided to terminate its agreement with Grob Aerospace, effective Sept. 17, 2008. Bombardier Aerospace is taking decisive action and this decision reflects our strong commitment to both the Learjet 85 aircraft program and to a growing number of leading business jet customers worldwide who have selected this exciting, all-new midsize business jet," stated Steve Ridolfi, President, Bombardier Business Aircraft. "Development of the Learjet 85 aircraft is now in the final stages of a successful joint definition phase that actively involves our suppliers. Bombardier Aerospace is a leader in civil aircraft development and has successfully introduced a total of 24 aircraft programs since 1989 - we are excited about the Learjet 85 business jet and look forward to introducing the aircraft into service," added Mr. Ridolfi. The New Learjet 85 Business Aircraft Designed to provide a larger, more comfortable cabin than any existing midsize aircraft, the Learjet 85 business jet will offer eight passengers a stand-up cabin built to ensure superior productivity and comfort. True to its legendary heritage, the Learjet 85 aircraft is set to deliver the extraordinary performance, superior technology and exceptional value Learjet aircraft owners expect. Powered by Pratt & Whitney Canada PW307B engines, the aircraft engines each boast 6,100 lb. (2,772 kg) of take-off thrust, while the low-emission combuster offers reduced environmental impact. The clean-sheet Learjet 85 aircraft targets a high-speed cruise of Mach 0.82 and a transcontinental range of up to 3,000 nautical miles (5,556 km)*. The new Learjet 85 aircraft flight deck combines advanced technology with superior design elements for a cockpit environment unlike any other midsize jet. The latest in technological advancements from Rockwell Collins �- the new Pro Line Fusion avionics suite �- is once again paired with superior design aesthetics to create the ultimate Learjet flight control environment. Learjet is the first name in corporate aviation. Since acquiring Learjet Inc. in 1990, Bombardier Aerospace has carried forward the brand's proud legacy by launching eight high-performance and fuel- efficient aircraft. As reported in the TCR-Europe on Aug. 22, 2008, Grob Aerospace GmbH Germany has been forced to file for insolvency in Germany. "This unfortunate situation has arisen as a consequence of recent delays in the spn program, resulting in the increased requirement for cash to see the program through to certification. Under the circumstances, our current loan provider has elected to discontinue their support," Grob CEO Niall Olver said. About Bombardier Inc. Headquartered in Canada, Bombardier Inc. (TSE:BBD.B) -- http://www.bombardier.com/-- manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. The company manufactures rail equipment through its Bombardier Transportation unit. Bombardier Transport's Europe management office is located in Germany. The company also has production facilities in France, Spain, Switzerland, Belgium, Italy, Austria, Hungary, Czech Republic, Poland, Denmark, Sweden, Norway an the United Kingdom. Other production facilities are located in Brazil, China, India and Australia. * * * Bombardier Inc. continues to carry Fitch's 'BB+' long-term debt rating with stable outlook. The rating was previously at 'BB' and was upgraded by Fitch to its current level in May 2008. The company also carries 'BB+' long-term corporate credit and senior unsecured debt ratings from Standard & Poor's. The long- term corporate credit rating rating was previously at 'BB' and was raised by S&P to its current level in April 2008. DUERR AG: Improved Liquidity Cues S&P to Lift Credit Rating to B+ ----------------------------------------------------------------- Standard & Poor's Ratings Services has raised its long-term corporate credit rating on Germany-based auto supplier Duerr AG to 'B+' from 'B'. S&P also raised the debt rating on Duerr's EUR200 million 2011 subordinated bond to 'B-' from 'CCC+'. The ratings were removed from CreditWatch where they were placed with positive implications on June 18, 2008. The outlook is stable. "The rating action reflects Duerr's improved credit profile following continued strengthening of its operating performance, improved liquidity position, and a recent capital increase with gross proceeds of about EUR44 million, which will be applied principally for high cost debt repayments," said S&P's credit analyst Varvara Nikanorava. This has resulted in improved credit measures for the last 12 months (LTM) to June 30, 2008, with adjusted funds from operations (FFO) to debt at about 26% and adjusted debt to EBITDA 2.9x pro forma for the equity increase- related debt reduction. Duerr has demonstrated a positive operating trend over the past quarters, with a reported EBIT margin improved to 4.4% for the LTM to June 30, 2008, from 3.8% in 2007 and 2.4% in 2006, on the back of restructuring gains. These margins are still relatively low, partly because of the company's low vertical integration. Nevertheless, this allows for relatively solid returns, with a reported return on capital employed at 15% at year-end 2007. S&P expects Duerr to largely maintain credit measures in the near to medium term, despite the challenging conditions in the underlying automotive industry. The company should achieve this through ongoing operational initiatives, such as continued expansion of more profitable and stable service business, increased production in the lower-cost emerging markets, and more selective order intake. Restructuring and operational gains, as well as lower interest charges due to the partial bond redemption should benefit the group's free cash flow generation, which S&P expects to be positive in 2008. "The stable outlook reflects our expectation that, despite the currently prevailing weak market conditions, Duerr's credit measures should be sustainable over the near to medium term," said Ms. Nikanorava. "The group is likely to achieve this by its ability to continue its good operating trend, supported by the ongoing operating enhancements." KOS PLANUNGS: Claims Registration Period Ends Sept. 30 ------------------------------------------------------ Creditors of KOS Planungs-GmbH have until Sept. 30, 2008, to register their claims with court-appointed insolvency manager Dr. Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 30, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Giessen Hall 408 Fourth Floor Building B Gutfleischstrasse 1 35390 Giessen 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. Jan Markus Plathner c/o Rae Brinkmann und Kollegen Lyoner Strasse 14 60528 Frankfurt/Main Germany Tel: 069/9623340 Fax: 069/96233422 The District Court of Giessen opened bankruptcy proceedings against KOS Planungs-GmbH on Sept. 5, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KOS Planungs-GmbH Schwabenroeder Strasse 5 36304 Alsfeld Germany Attn: Hartmut Otto, Manager Palmenweg 5 34560 Fritzlar Germany LEHMAN BROTHERS: German Finance Ministry Questions KfW Transfer --------------------------------------------------------------- The German Finance Ministry has questioned the transfer of EUR300 million (US$246 million) by Kfw to Lehman Brothers on the day the U.S. bank filed for bankruptcy, demanding an explanation, Reuters reports. "We expect a swift explanation of such a technical failure, which is inexplicable to us, but which will hopefully be explained soon," Torsten Albig, a spokesman for the Finance Ministry, was quoted by Reuters as saying. Reuters however relates that on Tuesday Kfw declared it mistakenly transferred the funds to Lehman. Citing The Frankfurter Allgemeine Zeitung (FAZ) newspaper, Reuters notes an erroneous swap payment occurred. Meanwhile, S&P said KfW's Lehman exposure had no impact on the German bank's credit rating, Reuters adds. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). MAX-LEUCHTEN GMBH: Claims Registration Period Ends Sept. 30 ----------------------------------------------------------- Creditors of MAX-Leuchten GmbH have until Sept. 30, 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 9:00 a.m. on Nov. 12, 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 The District Court of Munich opened bankruptcy proceedings against MAX-Leuchten GmbH on July 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MAX-Leuchten GmbH Attn: Irene Schmid, Manager Donaustaufferstr. 8a 80993 Munich Germany NACHRICHTENTECHNISCHE SYSTEM: Claims Filing Period Ends Sept. 30 ---------------------------------------------------------------- Creditors of NTS Nachrichtentechnische Systementwicklungs-GmbH have until Sept. 30, 2008, to register their claims with court- appointed insolvency manager Dr. Hans von Gleichenstein. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Nov. 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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. Hans von Gleichenstein Rottmannstr. 11 a 80333 Munich Germany Tel: 089/5427300 Fax: 089/54273015 The District Court of Munich opened bankruptcy proceedings against NTS Nachrichtentechnische Systementwicklungs-GmbH on Aug. 13, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: NTS Nachrichtentechnische Systementwicklungs-GmbH Attn: Christina Benyr, Manager Pahlstr. 32 81377 Munich Germany WESTLB AG: Says Slightly Affected by Lehman Chapter 11 Filing ------------------------------------------------------------- Investment Bank Lehman Brothers Holdings Inc. filing for chapter 11 protection has only limited effects on WestLB AG. WestLB said it has no unsecured exposure in either bonds or structured paper issued by Lehman Brothers. The net exposure with regard to derivative products is in the low single digit million Euro field. WestLB has no credit lines to Lehman Brothers. The same situation pertains also to AIG. WestLB also here has no credit lines. The net exposure with regard to derivatives also here lies in the low single digit million Euro area. With regard to bonds and structured paper issued by AIG, WestLB has only an insignificant unsecured exposure. About WestLB Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB) -- http://www.westlb.com/-- provides financial advisory, lending, structured finance, project finance, capital markets and private equity products, asset management, transaction services and real estate finance to institutions. In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC. WestLB's shareholders are the two savings banks associations in NRW (25.15% each), two regional associations (0.52% each), the state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW (64.7%) and two regional associations (35.3%). * * * West LB AG continues to carry Fitch's 'F' Individual Rating. The rating was previously at 'D/E' and was downgraded by Fitch to its current level in January 2008. ========= I T A L Y ========= ALITALIA SPA: Lone Bidder Walks Away on Unresolved Rescue Plan -------------------------------------------------------------- Compagnia Aerea Italiana s.r.l., a newly formed investor group backed by Italian Prime Minister Silvio Berlusconi, withdrew its bid to buy Alitalia SpA's healthier assets after failing to win the support of labor unions, various reports say. As reported in the TCR-Europe on Sept. 10, 2008, Alitalia's unions rejected the employment contract proposed by CAI. Under CAI's proposal: * pilots' vacation will be reduced from 42 to 30 days a year, with extra day off for every five years of service in the company; * attendants' fixed salary will be reduced by 43% while their variable salary will be reduced by 28%-31%; * flight hours per flight personnel will be reduced between 750 and 900 hours; * ground personnel benefits for work during holidays, Sundays and nights, will be reduced; and * work-hour per week will pass from 37.5 to 40. Unions described the proposal as "worst, unfeasible, and not viable," following a meeting with the Italian government, Alitalia and CAI. Only three of the carrier's nine unions accepted the terms of CAI's rescue plan. Bloomberg News reports that on Sept. 14, the airline's four biggest unions won an agreement from CAI to include 1,000 more workers in the rescue plan. However, on Sept. 18, CGIL, one of the four largest unions, joined the remaining five unions in pushing for more concessions, says the report. Without an alternative in place, CAI's bid withdrawal would push Alitalia into total collapse. The Wall Street Journal says the airline is now running on just EUR30 million (US$42.5 million) to EUR50 million in cash, and loses between EUR1 million and EUR2 million every day. Meanwhile, some analysts told Bloomberg News that Alitalia, which is already under government bankruptcy protection, had no choice but to liquidate. "The most likely scenario is that the government will break up the company and cancel contracts," Diogenis Papiomytis, a transport analyst at Frost & Sullivan in London, was cited by Bloomberg News as saying. "That will have huge social costs and will probably set off industrial action." Moves to save the state-controlled airline became clear after the Italian government amended its bankruptcy law to hasten the sale of its 49.9% stake in Alitalia and it turn around, a TCR-Europe report on Sept. 1, 2008, said. Under Intesa Sanpaolo S.p.A.'s "Phoenix" rescue plan, Italy government amended the Marzano Law, which was used to reorganize Parmalat. The government tapped Intesa Sanpaolo as adviser for the sale of its 49.9% stake in Alitalia. The amended law allowed Alitalia to be split into two -- an oldco and a newco. The oldco will shoulder the cost of the planned 5,000-7,000 job cuts and take on Alitalia's EUR1.1 billion debt -- including the recent EUR300 million loan from the government and a EUR750 million convertible bond. The government will place the oldco under extraordinary administration and appoint an extraordinary commissioner to oversee the sale of unprofitable assets. The law also allowed Alitalia's extraordinary commissioner to sell its assets through private talks and without holding public auction. The newco, meanwhile, will inherit Alitalia's fleet and real estate assets as well as the remaining employees and up to EUR500 million in debt. It would receive around EUR300 million in assets from AirOne S.p.A., which would be folded under the newco. AirOne leads a group of 16 local investors who pledged to inject around EUR1 billion into the newco in exchange for shares. 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. Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi has appointed Augusto Fantozzi as extraordinary commissioner. =================== K A Z A K H S T A N =================== ADJAMAL LLP: Creditors Must File Claims by November 12 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Adjamal insolvent. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (7252) 53-48-34 8 (7252) 54-02-36 ALBA CORPORATION: Claims Deadline Slated for November 12 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Alba Corporation insolvent. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan CRAGE ENERGY: Claims Filing Period Ends November 12 --------------------------------------------------- LLP Crage Energy Services has declared liquidation. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: LLP Crage Energy Services Jeleznodorojnaya Str. 1 060002, Atyrau Kazakhstan Tel: 8 701 111 76-66 DELTABANK: Moody's Assigns E+ Bank Financial Strength Rating ------------------------------------------------------------ Moody's Investors Service assigned the following global scale ratings to DeltaBank: B3 long-term and Not Prime short-term foreign and local currency deposit ratings and an E+ bank financial strength rating. All of the bank's ratings carry a stable outlook. DeltaBank's E+ BFSR, which translates to a Baseline Credit Assessment of B3, is based on the bank's fundamental credit strength, which, in Moody's view, is constrained by its limited franchise, significant borrower and depositor concentrations, aggressive liquidity management and historically weak financial performance, but underpinned by its solid capitalization and established office presence throughout Kazakhstan. The bank's local and foreign currency deposit ratings do not factor in any expectation of systemic support in the event of a stress situation, given DeltaBank's very low national market share and relative importance to the country's banking system. Although support from the bank's shareholders cannot be ruled out, its extent and timeliness are somewhat uncertain. Consequently the long-term deposit ratings are at the same level as the bank's B3 Baseline Credit Assessment. In Moody's view, DeltaBank's ratings could be upgraded if it were to succeed in improving its franchise, as well as materially reducing its level of borrower concentration, while maintaining reasonable capitalization and asset quality. Conversely, a mismanagement of the bank's growth strategy that adversely affected its liquidity and asset quality profiles or any material losses arising from its loan book, which has until recently been rapidly expanding, could have negative rating implications. A decrease in capital adequacy levels deriving from the rapidly expanding balance sheet could also warrant a downgrade of the bank's ratings. Based in Almaty, Kazakhstan, DeltaBank reported total audited IFRS assets of US$166 million and shareholders' equity of US$48 million at year-end 2007. The majority stake in DeltaBank was acquired by its new private shareholders in 2007 through an injection into the bank's capital. The bank's current strategy is focused on expanding its operations in even proportions across the SME, retail and corporate segments. KAPOLIGRAF JSC: Creditors' Claims Due on November 12 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared JSC Kapoligraf insolvent. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Satpaev Str. 22/1-56 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 777 261 87-27 OIMAUYT LLP: Claims Registration Ends November 12 ------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Oimauyt insolvent. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan Tel: 8 (7252) 53-48-34 8 (7252) 54-02-36 ROS SHYN: Creditors Must File Claims by November 12 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Ros Shyn insolvent. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Jahayev Str. 71 Kyzylorda Kazakhstan Tel: 8 (72422) 27-23-65 STARLINE TOUR: Claims Deadline Slated for November 12 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Starline Tour insolvent. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan T. T. CORPORATION: Claims Filing Period Ends November 11 -------------------------------------------------------- LLP Singaporean Representation of Company T. T. Corporation Pte Ltd. has declared liquidation. Creditors have until Nov. 11, 2008, to submit written proofs of claims to: LLP Singaporean Representation of Company T. T. Corporation Pte Ltd. Jarokov Str. 290-78 Almaty Kazakhstan TARAZ STROY: Creditors' Claims Due on November 12 ------------------------------------------------- LLP Taraz Stroy Techno Project has declared liquidation. Creditors have until Nov. 12, 2008, to submit written proofs of claims to: LLP Taraz Stroy Techno Project Kazybek bi Str. 103-32 Taraz Jambyl Kazakhstan Tel: 8 (7262) 43-37-01 =================== K Y R G Y Z S T A N =================== TRANS-MAGISTRAL LLC: Creditors Must File Claims by Nov. 3 --------------------------------------------------------- LLC Trans-Magistral has shut down. Creditors have until Nov. 3, 2008, to submit written proofs of claim to: LLC Trans-Magistral Mederov Str. 44 Bishkek Kyrgyzstan Tel: (+996 312) 54-93-33 ===================== N E T H E R L A N D S ===================== TRONOX INC: FMR LLC Discloses Minimal Equity Stake -------------------------------------------------- FMR LLC disclosed in a regulatory filing with the Securities and Exchange Commission that it has ceased to be the beneficial owner of more than five percent of the class of securities of Tronox Incorporated. FMR may be deemed to beneficially own 206,300 shares of Tronox's Class A Common Stock, which represents about 1.1% of the outstanding shares. Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) -- http://www.tronox.com/-- is a producer and marketer of titanium dioxide pigment. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply performance products to approximately 1,100 customers in 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. The Troubled Company Reporter reported on Aug. 6, 2008, that Tronox Incorporated reported a preliminary loss from continuing operations of US$29.9 million for the second quarter ended June 30, 2008, compared with a loss from continuing operations for the 2007 second quarter of US$20.0 million. Including discontinued operations, net loss for the quarter was US$34.4 million, versus a net loss of US$21.2 million in the 2007 second quarter. On Aug. 27, the TCR reported that the company has US$1.7 billion in total assets, including US$703.5 million in current assets, as at June 30. The company has US$937.8 million in current debts and US$336.9 million in total non-current debts. TRONOX INC: S&P Lowers Corporate Credit Rating to CCC- from CCC+ ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on chemical company Tronox Inc., including its corporate credit rating to 'CCC-' from 'CCC+'. The ratings on Tronox remain on CreditWatch with negative implications, where S&P placed them on July 31, 2008, following uncertainty regarding the company's ability to comply with financial covenants, and the appointment of an investment bank to advise on strategic alternatives. In addition, the CreditWatch now reflects uncertainty related to Tronox's attempts to extend the September 2008 maturity of a receivable securitization program, which is an important source of liquidity. As of June 30, 2008, Tronox had approximately US$800 million in debt. "The downgrade reflects heightened concern on Tronox's liquidity, specifically related to near-term covenant compliance and its ability to meet an upcoming interest payment in December without covenant relief," said Standard & Poor's credit analyst Paul Kurias. An additional, but potential longer-range concern, relates to Tronox's recent announcement that it received notice of a lawsuit for the recovery of US$280 million incurred by the EPA in the cleanup of a New Jersey wood treatment site. Tronox's liquidity remains constrained by its covenant situation, and by its need to refinance a US$75 million asset securitization program, which matures on Sept. 24, 2008. Although Tronox has alternate sources of liquidity such as its US$250 million revolving credit facility, which had about US$69 million in utilization at June 30, 2008, the securitization program forms an important component of liquidity. The company's ability to meet its third-quarter 2008 covenant requirement is contingent on an improvement in EBITDA from about US$6 million in the second- quarter. The company has announced several price increases in recent weeks, but Tronox's operating environment remains challenging, and could forestall the meaningful improvement in earnings required to comply with covenants. In the absence of sufficient covenant relief or successful steps to preserve access to liquidity, the company could be challenged to make an upcoming interest payment of approximately US$16 million on Dec. 1, 2008. The amount Tronox provides for in its reserves is far lower than the US$280 million claimed by the EPA in its lawsuit. Although the outcome of the lawsuit is unlikely to result in a cash outflow in the near term, the lawsuit raises the possibility of additional financial pressure on Tronox's already weakened financial profile at a time when the improvement of operating performance remains uncertain and a breach of financial covenants is increasingly likely. Oklahoma-based Tronox, with about US$1.4 billion in annual sales, is the third-largest global producer of TiO2, behind industry leader E.I. DuPont de Nemours & Co. and Millennium Inorganic Chemicals. S&P will resolve the CreditWatch within the next few weeks after the company clarifies the outcome of its strategic review, and after it can reassess prospects for improving operating performance and liquidity, which includes covenant compliance and an extension of the maturity on the securitization program. S&P will also review the company's ability to meet its near-term interest payment in the absence of covenant relief. The CreditWatch listing indicates that another downgrade is likely if operating performance and liquidity management do not improve meaningfully, or if the outcome of the company's review of strategic alternatives results in actions with potentially negative implications for credit quality. =========== R U S S I A =========== AGRO-DON-SERVICE-STROY: Creditors Must File Claims by November 4 ---------------------------------------------------------------- Creditors of LLC Agro-Don-Service-Stroy (TIN 6162007875, RVC 616201001) have until Nov. 4, 2008, to submit proofs of claims to: I. Postukyan Insolvency Manager Buynakskaya Str. 2/56 344037 Rostov-on-Don Russia The Arbitration Court of Rostovskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-2984\2008-S1-33. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: LLC Agro-Don-Service-Stroy 2nd Lugovaya Str. 10 344007 Rostov-on-Don Russia ASTRA PLUS: Creditors Must File Claims by October 4 --------------------------------------------------- Creditors of LLC Astra Plus have until Oct. 4, 2008 to submit proofs of claims to: S. Kungurov Temporary Insolvency Manager Melnikayte Str. 106/455 Tumen Russia The Arbitration Court of Tumenskaya will convene at 9:00 a.m. on Dec. 11, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A70-4439/3-2008. The Debtor can be reached at: LLC Astra Plus Plodovaya Str. 7 Lugovoe Tumenskaya Russia BASH-NEFTE-PROM-STROY: Creditors Must File Claims by October 4 -------------------------------------------------------------- Creditors of OJSC Bash-Nefte-Prom-Stroy Subsidiary of LLC Bash- Nefte-Prom-Stroy-Invest have until Oct. 4, 2008, to submit proofs of claims to: A. Kulyashov Insolvency Manager Neftayanikov Str. 24 452680 Neftekamsk Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-10561/08-G-KhRM. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: OJSC Bash-Nefte-Prom-Stroy 452680 Neftekamsk Bashkortostan Russia EVROBALTIYA OJSC: Creditors Must File Claims by October 4 --------------------------------------------------------- Creditors of OJSC Evrobaltiya have until Oct. 4, 2008, to submit proofs of claims to: Yu. Abdulin Temporary Insolvency Manager Lunacharskogo Str. 185-203 620026 Yekaterinburg Russia The Arbitration Court of Sverdlovskaya commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A60-11889/08-S11. The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia The Debtor can be reached at: OJSC Evrobaltiya Severnoe shosse 4 622051 Tizhniy Tagil Russia PLANT OF REINFORCED: Creditors Must File Claims by October 4 ------------------------------------------------------------ Creditors of LLC Plant of Reinforced Concrete Products have until Oct. 4, 2008, to submit proofs of claims to: S. Maslovskiy Temporary Insolvency Manager Rusanova Str. 12 169607 Pechora Komi Tel/Fax: 8-(82142) 7-13-16 The Arbitration Court of Komi will convene at 9:10 a.m. on Nov. 13, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A29-4874/2008. The Court can be reached at: The Arbitration Court of Komi Room 407 Ordzhonikidze Str. 49a Syktyvkar Russia The Debtor can be reached at: LLC Plant of Reinforced Concrete Products Puteyskaya Str. 1A Pechora Komi Russia RUBTSOV-ENERGO-STROY: Creditors Must File Claims by October 4 ------------------------------------------------------------- Creditors of OJSC Rubtsov-Energo-Stroy have until Oct. 4, 2008, to submit proofs of claims to: V. Zorin Insolvency Manager Post User Box 4608 656049 Barnaul Russia The Arbitration Court of Altayskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A03-7098/08-B. The Debtor can be reached at: OJSC Rubtsov-Energo-Stroy Traktornaya Str. 43 658209 Rubtsovsk Russia TRADEMAKS LLC: Moscow Bankruptcy Hearing Set December 9 ------------------------------------------------------- The Arbitration Court of Moscow will convene at 9:00 a.m. on Dec. 9, 2008, to hear bankruptcy supervision procedure on LLC Trademaks. The case is docketed under Case No. A40-37585/08-95- 91B. The Temporary Insolvency Manager is: A. Rodin Post User Box 7 124683 Moscow Russia The Court is located at: The Arbitration Court of Moscow Building 1 Novaya Basmannaya Str.13/2 107078 Moscow Russia The Debtor can be reached at: LLC Trademaks Building 1 Novoyasenevskiy prospect 22 117574 Moscow Russia VAGON-ZHIL-STROY: Creditors Must File Claims by October 4 --------------------------------------------------------- Creditors of LLC Vagon-Zhil-Stroy have until Oct. 4, 2008, to submit proofs of claims to: R. Ayulov Temporary Insolvency Manager Apt. 35 Chkalova Str. 31 453204 Ishimbay Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A07-9613/2008GT-ShAB. The Court is located at: The Arbitration Court of Bashkortostan Office 106 S. Yulayeva Str. 7 450057 Ufa Bashkortostan Russia The Debtor can be reached at: LLC Vagon-Zhil-Stroy B. Khmelnitskogo Str. 2a 453203 Ishimbay Bashkortostan Russia * Fitch: Russia's Investment Notion Could Lead to Liquidity Woes ---------------------------------------------------------------- Fitch Ratings says that current conditions in Russia including international investors' sentiment to inward investment and their re-appraisal of the country's risk profile, coupled with this week's domestic equity and on-going bond market conditions, could lead to increased liquidity concerns for many Russian companies, particularly in the real estate and construction sectors. Short- term debt maturity profiles and an attachment to a vulnerable bank system already negatively affect many Russian Corporate ratings. As highlighted in Fitch's recent Corporate Liquidity Study, dated 18 August 2008, Russian corporates often rely on uncommitted short-term lines from banks. Those that rely on Russian banks for funding find that refinancing risk is a constant issue to manage. It exposes those companies with a lack of internally generated stable cash flow relative to debt maturities to rely upon the provision of capital from Russian banks or the bond markets. Even if the domestic rouble or international eurobond bond markets have been tapped, the domestic rouble bond market can be short-term in nature with periodic investor puts. Both markets are currently difficult to access even with heightened risk premiums. As a consequence of the structural use of short-term funding, representative rated companies within Fitch's corporate portfolio currently have around 20%-30% of their debt due to mature before the end of this year. As always during such nervous times, trust and established relationships are the currency for continued financial support. Companies that have relationships with the three largest banks (Sberbank, VTB and Gazprombank - see Fitch's "Financial Pressures Build on Russia and its Banks" released yesterday) - which have received increased access to liquidity in the form of budgetary fund placements - are likely to have their lines extended by these banks. Of the sectors in Fitch's corporate portfolio of around 40 publicly rated Russian companies, which are concentrated in the 'BB' and 'B' rating categories, the higher-rated oil and gas companies and rated telecom companies are likely to have their near-term maturities refinanced, although probably at higher cost. The oil and gas entities are of considerable size, sufficient stand-alone financial strength, strategic importance to the country, and are well-served by international banks, while the rated telecom companies (either Svyazinvest-owned or with state ownerships) are likely to have state-owned financial institutions look favorably upon these entities if renewed lines are required. The remainder of rated corporates fall into two groups (i) those with specific refinance issues due to treasury management, and (ii) sectors that are vulnerable to a downturn as banks conserve liquidity. Fitch continues to actively review the near-term maturity profile of Russian corporates, particularly those with no state-connected bank relationships and those who were expecting to refinance imminent debt maturities with bank or bond funding. Real estate and construction companies are at particular risk. Fitch believes that if banks withdraw lending, commercial and residential property values will decline as examples of forced selling are prevalent. Furthermore, where existing debt financing is asset-specific and near-term refinancing is not achieved, many banks can quickly enforce their security and the relevant corporate left weakened. Currently, the following companies' ratings, which are mainly grouped in the 'B' rating category, reflect the risk profile of this domestic sector and where applicable Rating Watch Negatives or Negative Outlooks reflect current liquidity concerns (OJSC LSR Group, Mirax Group LLC, JSC OPIN Open Investments, OJSC PIK Group and Sistema-Hals JSC). Although less evident in Fitch's rated universe, retail companies would also be at risk from consumer tightening brought about by banking system issues. Some companies have positioned themselves to rely more on the international bank market for funding, accessing committed and longer-dated funding. Entities with these characteristics include the oil and gas companies (Lukoil, TNK-BP, Rosneft and Gazprom - which all have low 'BBB' category ratings). Similarly, Norilsk Nickel ('BBB-'), Evraz ('BB') and NLMK ('BB+'), could also be regarded as companies of international stature that may well join this list of likely preferred treatment by the large domestic banks. * RUSSIA: Biz Leaders Doubt Efforts to Stabilize Markets -------------------------------------------------------- Amid President Dmitry Medvedev's assurances, Russian business leaders warned last week that the government's moves to stabilize the Russian financial markets "may not be sufficient," Charles Clover writes for the Financial Times in Moscow. President Medvedev had said that the economy was stable and banks would get all the liquidity they needed, FT notes. On Sept. 15, 2008, the Russian stock market fell a further 4.8%, a 24% fall so far this month over increased fears on a severe liquidity crisis and bank failures, FT reports. In a summit with the president, Aleksander Shokhin, head a group of the country's main business leaders, asserted that "[t]he financial markets are falling . . . . [t]here needs to be an active, anti-crisis policy," FT relates. Mr. Medvedev told the Russian Union of Industrialists and Entrepreneurs, known as the oligarchs' summit that "the task of the government at the present time is to ensure sufficient liquidity in the domestic market," FT continues. Alexei Kudrin, finance minister, suggested the government could double the amount of budget funds for short-term deposits at commercial banks to RUR1,232 billion (US$47.79 billion, EUR33.65 billion, GBP26.7 billion), FT says. On Sept. 15, 2008, the central bank extended US$12.65 billion to banks to boost liquidity, following a US$13.4 billion injection on September 13, FT notes. Some market players won't accept second and third tier bonds as collateral depicting concern over the credit worthiness of issuers, FT writes. David Nangle, banking analyst at Renaissance Capital in Moscow said that it's possible for smaller banks to go under," FT adds. ========= S P A I N ========= TDA 26: Fitch Affirms Ratings on Two Note Classes at 'CCC' ---------------------------------------------------------- Fitch Ratings has affirmed TDA 26 Mixto and TDA 29, Fondo de Titulizacion de Activos RMBS transactions. The transactions are backed by mortgages loans originated by Banca March and Banco Guipuzcoano. The rating actions are: TDA 26 -- Class 1-A2 (ISIN ES0377953015): affirmed at 'AAA'; Outlook Stable -- Class 1-B (ISIN ES0377953023): affirmed at 'A'; Outlook Stable -- Class 1-C (ISIN ES0377953031): affirmed at 'BBB'; Outlook Negative -- Class 1-D (ISIN ES0377953049): affirmed at 'CCC'; Outlook Stable -- Class 2-A (ISIN ES0377953056): affirmed at 'AAA'; Outlook Stable -- Class 2-B (ISIN ES0377953064): affirmed at 'A-'; Outlook Stable -- Class 2-C (ISIN ES0377953072): affirmed at 'CCC'; Outlook Stable -- Class 1-A1 (ISIN ES0377953007): paid in full January 2008 TDA 29 -- Class A1 (ISIN ES0377931003): affirmed at 'AAA'; Outlook Stable -- Class A2 (ISIN ES0377931011): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN ES0377931029): affirmed at 'A'; Outlook changed to Negative from Stable. -- Class C (ISIN ES0377931037): affirmed at 'BBB'; Outlook changed to Negative from Stable. -- Class D (ISIN ES0377931045): affirmed at 'CCC'; Outlook Stable TDA 26 has issued two groups of notes; Group 1 notes, comprising only first-ranking mortgages with loan-to-value ratios under 80% and Group 2 notes, backed by first and second-ranking mortgage loans with LTVs above 80%. To date the Group 1 pool has seen a higher level of loans in arrears by more than three months, accounting for 1.21% of the pool as of July 2008, 24 months after closing. Group 2 arrears are almost half that level, accounting for 0.69% of the pool at of the July investor report. The outlook negative in place of the Class 1-C (Group 1) reflect the high arrears and defaults to date. Increasing levels of defaults produced a slight draw of the group 1 reserve fund in October 2007. At the next interest payment date the RF was topped up and has remained at its required level since then. The portfolios are concentrated in the Balearic and Canary islands, which represent 44% and 74% of the group 1 and 2, respectively. TDA 29 has a single pool combining both portfolios. Arrears have shown an upward trend since closing, reaching 0.87% in the last reported month. Defaults are defined as loans more than 12 months in arrears and because the deal is in its early stages defaults have only been reported in two months, reaching 0.04%. Arrears levels and the current and projected level of defaults are higher than expected at closing, prompting the change of outlooks. The arrears pipeline shows that the pace of new defaults is likely to increase in the next quarter. Given the guaranteed excess spread of 0.55% that the transaction has, this does not necessarily mean that the reserve fund will draw. At closing the portfolio was geographically concentrated in the Balearic Islands and Canary Islands and represented 32.52% of the portfolio. Both sellers are medium-sized, regional Spanish banks with c.250 branches. Guipuzcoano's activities are concentrated in the Basque Country whereas Banca March operates mainly in the Balearic Islands. Fitch has employed its credit-cover multiple methodology in reviewing these transactions to assess the level of credit support available to each class of notes. Rating Outlooks for European structured finance tranches provide forward-looking information to the market. An Outlook indicates the likely direction of any rating change over a one- to two-year period. TDA 29: Fitch Affirms Rating on Class D Notes at 'CCC' ------------------------------------------------------ Fitch Ratings has affirmed TDA 26 Mixto and TDA 29, Fondo de Titulizacion de Activos RMBS transactions. The transactions are backed by mortgages loans originated by Banca March and Banco Guipuzcoano. The rating actions are: TDA 26 -- Class 1-A2 (ISIN ES0377953015): affirmed at 'AAA'; Outlook Stable -- Class 1-B (ISIN ES0377953023): affirmed at 'A'; Outlook Stable -- Class 1-C (ISIN ES0377953031): affirmed at 'BBB'; Outlook Negative -- Class 1-D (ISIN ES0377953049): affirmed at 'CCC'; Outlook Stable -- Class 2-A (ISIN ES0377953056): affirmed at 'AAA'; Outlook Stable -- Class 2-B (ISIN ES0377953064): affirmed at 'A-'; Outlook Stable -- Class 2-C (ISIN ES0377953072): affirmed at 'CCC'; Outlook Stable -- Class 1-A1 (ISIN ES0377953007): paid in full January 2008 TDA 29 -- Class A1 (ISIN ES0377931003): affirmed at 'AAA'; Outlook Stable -- Class A2 (ISIN ES0377931011): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN ES0377931029): affirmed at 'A'; Outlook changed to Negative from Stable. -- Class C (ISIN ES0377931037): affirmed at 'BBB'; Outlook changed to Negative from Stable. -- Class D (ISIN ES0377931045): affirmed at 'CCC'; Outlook Stable TDA 26 has issued two groups of notes; Group 1 notes, comprising only first-ranking mortgages with loan-to-value ratios under 80% and Group 2 notes, backed by first and second-ranking mortgage loans with LTVs above 80%. To date the Group 1 pool has seen a higher level of loans in arrears by more than three months, accounting for 1.21% of the pool as of July 2008, 24 months after closing. Group 2 arrears are almost half that level, accounting for 0.69% of the pool at of the July investor report. The outlook negative in place of the Class 1-C (Group 1) reflect the high arrears and defaults to date. Increasing levels of defaults produced a slight draw of the group 1 reserve fund in October 2007. At the next interest payment date the RF was topped up and has remained at its required level since then. The portfolios are concentrated in the Balearic and Canary islands, which represent 44% and 74% of the group 1 and 2, respectively. TDA 29 has a single pool combining both portfolios. Arrears have shown an upward trend since closing, reaching 0.87% in the last reported month. Defaults are defined as loans more than 12 months in arrears and because the deal is in its early stages defaults have only been reported in two months, reaching 0.04%. Arrears levels and the current and projected level of defaults are higher than expected at closing, prompting the change of outlooks. The arrears pipeline shows that the pace of new defaults is likely to increase in the next quarter. Given the guaranteed excess spread of 0.55% that the transaction has, this does not necessarily mean that the reserve fund will draw. At closing the portfolio was geographically concentrated in the Balearic Islands and Canary Islands and represented 32.52% of the portfolio. Both sellers are medium-sized, regional Spanish banks with c.250 branches. Guipuzcoano's activities are concentrated in the Basque Country whereas Banca March operates mainly in the Balearic Islands. Fitch has employed its credit-cover multiple methodology in reviewing these transactions to assess the level of credit support available to each class of notes. Rating Outlooks for European structured finance tranches provide forward-looking information to the market. An Outlook indicates the likely direction of any rating change over a one- to two-year period. =========== S W E D E N =========== FORD MOTOR: Urges Congress to Fund US$25BB Loan Program ------------------------------------------------------- Top executives at General Motors Corp., Chrysler LLC and Ford Motor Co. met with House Speaker Nancy Pelosi and other congressional leaders on Wednesday to pursue the funding of a US$25 billion loan program intended to help the automakers modernize their plants to meet fuel efficiency requirements in the future, reports say. GM Chairman and CEO Rick Wagoner, Ford CEO Alan Mulally and Chrysler Chairman and CEO Robert Nardelli, also sent a letter stating their request for the loan program. In it, they warned that sluggish U.S. economy could affect thousands of workers. Dow Jones reports that House Speaker Pelosi told reporters on the same day that she plans to unveil a US$25 billion loan package to U.S. automakers next week that could possibly add new efficiency standards. It would likely be contained in a government funding bill. Congress has authorized US$25 billion in loans in last year's energy bill, but the plan has yet to be funded. The program authorizes Congress to provide US$25 billion in low-cost loans in order for automakers and their suppliers to meet new fuel- efficiency requirements of at least 35 miles per gallon by 2020, a 40% increase. According to a report by the Associated press, the loans would have an interest rate of around 5 percent, providing about US$100 million a year in savings for every US$1 billion the companies receive in loans. The interest rate would have been in double-digit on the open market because of the companies' poor bond ratings, the report said. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings 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. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. About Ford Motor Co. 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. * * * As reported in the Troubled Company Reporter on Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts. ===================== S W I T Z E R L A N D ===================== GAAZ WINTERTHUR: Creditors Have Until Oct. 22 to File Claims ------------------------------------------------------------ Creditors owed money by LLC Gaaz winterthur are requested to file their proofs of claim by Oct. 22, 2008, to: Dr. A. M. Furrer Nelkenstrasse 5 8400 Winterthur Switzerland The company is currently undergoing liquidation in Winterthur. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 21, 2008. GENERAL MOTORS: Urges Congress to Fund US$25BB Loan Program ----------------------------------------------------------- Top executives at General Motors Corp., Chrysler LLC and Ford Motor Co. met with House Speaker Nancy Pelosi and other congressional leaders on Wednesday to pursue the funding of a US$25 billion loan program intended to help the automakers modernize their plants to meet fuel efficiency requirements in the future, reports say. GM Chairman and CEO Rick Wagoner, Ford CEO Alan Mulally and Chrysler Chairman and CEO Robert Nardelli, also sent a letter stating their request for the loan program. In it, they warned that sluggish U.S. economy could affect thousands of workers. Dow Jones reports that House Speaker Pelosi told reporters on the same day that she plans to unveil a US$25 billion loan package to U.S. automakers next week that could possibly add new efficiency standards. It would likely be contained in a government funding bill. Congress has authorized US$25 billion in loans in last year's energy bill, but the plan has yet to be funded. The program authorizes Congress to provide US$25 billion in low-cost loans in order for automakers and their suppliers to meet new fuel- efficiency requirements of at least 35 miles per gallon by 2020, a 40% increase. According to a report by the Associated press, the loans would have an interest rate of around 5 percent, providing about US$100 million a year in savings for every US$1 billion the companies receive in loans. The interest rate would have been in double-digit on the open market because of the companies' poor bond ratings, the report said. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings 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. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. About Ford Motor Co. 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. * * * As reported in the Troubled Company Reporter on Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. GENERAL MOTORS: May Issue Securities to Raise Funds --------------------------------------------------- General Motors Corp. disclosed in a Securities and Exchange Commission filing that it plans to register and issue these classes of securities: 1) Debt Securities; 2) Common Stock (par value US$12/3 per share); 3) Preferred Stock (without par value); 4) Preference Stock (par value US$0.10 per share); and 5) Warrants GM said in its prospectus that an indeterminate aggregate initial offering price and number or amount of the securities of each identified class is being registered as may from time to time be sold at indeterminate prices. Separate consideration may or may not be received for securities that are issuable upon conversion of, or in exchange for, or upon exercise of, convertible or exchangeable securities. Registration fees of US$809,000 for up to US$10 billion net aggregate principal amount of securities were paid previously by the GM in connection with the Registration Statement on Form S-3 (File No. 333-108532) originally filed on September 5, 2003. Pursuant to Rule 457(p) under the Securities Act of 1933, the fees of US$629,402 with respect to US$7,780,000,000 aggregate initial offering price of securities that were previously registered and not sold are being carried forward, and such unsold securities are deregistered, GM said. In accordance with Rules 456(b) and 457(r), the company is deferring payment of all of the registration fee except that portion previously paid and which is being carried forward. GM said net cash proceeds from the issuance of the securities will be added to its general funds and will be available for general corporate purposes, including capital expenditures, working capital and the repayment of existing indebtedness. A copy of GM's prospectus is available free of charge at: http://researcharchives.com/t/s?3236 About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. GROB AEROSPACE: Bombardier Ends Learjet Development Agreement ------------------------------------------------------------- Bombardier Aerospace is assuming complete responsibility for the detail design and manufacturing of all primary and secondary structures for the all-new Bombardier Learjet 85 midsize business jet. Learjet has terminated its development agreement with Grob Aerospace AG of Switzerland. "Given the uncertainty surrounding Grob's insolvency, Learjet has decided to terminate its agreement with Grob Aerospace, effective Sept. 17, 2008. Bombardier Aerospace is taking decisive action and this decision reflects our strong commitment to both the Learjet 85 aircraft program and to a growing number of leading business jet customers worldwide who have selected this exciting, all-new midsize business jet," stated Steve Ridolfi, President, Bombardier Business Aircraft. "Development of the Learjet 85 aircraft is now in the final stages of a successful joint definition phase that actively involves our suppliers. Bombardier Aerospace is a leader in civil aircraft development and has successfully introduced a total of 24 aircraft programs since 1989 - we are excited about the Learjet 85 business jet and look forward to introducing the aircraft into service," added Mr. Ridolfi. The New Learjet 85 Business Aircraft Designed to provide a larger, more comfortable cabin than any existing midsize aircraft, the Learjet 85 business jet will offer eight passengers a stand-up cabin built to ensure superior productivity and comfort. True to its legendary heritage, the Learjet 85 aircraft is set to deliver the extraordinary performance, superior technology and exceptional value Learjet aircraft owners expect. Powered by Pratt & Whitney Canada PW307B engines, the aircraft engines each boast 6,100 lb. (2,772 kg) of take-off thrust, while the low-emission combuster offers reduced environmental impact. The clean-sheet Learjet 85 aircraft targets a high-speed cruise of Mach 0.82 and a transcontinental range of up to 3,000 nautical miles (5,556 km)*. The new Learjet 85 aircraft flight deck combines advanced technology with superior design elements for a cockpit environment unlike any other midsize jet. The latest in technological advancements from Rockwell Collins �- the new Pro Line Fusion avionics suite �- is once again paired with superior design aesthetics to create the ultimate Learjet flight control environment. Learjet is the first name in corporate aviation. Since acquiring Learjet Inc. in 1990, Bombardier Aerospace has carried forward the brand's proud legacy by launching eight high-performance and fuel- efficient aircraft. As reported in the TCR-Europe on Aug. 22, 2008, Grob Aerospace GmbH Germany has been forced to file for insolvency in Germany. "This unfortunate situation has arisen as a consequence of recent delays in the spn program, resulting in the increased requirement for cash to see the program through to certification. Under the circumstances, our current loan provider has elected to discontinue their support," Grob CEO Niall Olver said. Headquartered in Zurich, Switzerland, Grob Aerospace -- http://www.grob-aerospace.net/-- is one of the world's largest and most experienced composite aircraft manufacturers since 1971. Grob's research, development, manufacturing and assembly facilities are located in Tussenhausen-Mattsies, Germany, where it maintains its own purpose built airfield. Its central base in the United States is located in Portsmouth, New Hampshire with several regional sales offices throughout the USA. KOECHLIN BAUMGARTNER: Oct. 31 Set as Deadline to File Claims ------------------------------------------------------------ Creditors owed money by JSC Koechlin, Baumgartner & Cie. are requested to file their proofs of claim by Oct. 31, 2008, to: Dr. Christoph Noelpp Trust Company Brenner Treuhand Gewerbestrasse 6 9242 Oberuzwil Switzerland The company is currently undergoing liquidation in Oberuzwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 25, 2008. MANGOLD WASTE: Creditors Must File Proofs of Claim by Oct. 31 ------------------------------------------------------------- Creditors owed money by Mangold waste water and aeration systems Ltd., are requested to file their proofs of claim by Oct. 31, 2008, to: Dr. Urs Grohbiel Hasenrainstrasse 29 4102 Binningen Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Aug. 13, 2008. R. BADER JSC: Deadline to File Proofs of Claim Set Oct. 31 ---------------------------------------------------------- Creditors owed money by JSC R. Bader Konstruktionswerkstatte are requested to file their proofs of claim by Oct. 31, 2008, to: Rolf Bader Gmeindweg 1 8598 Bottighofen Switzerland The company is currently undergoing liquidation in Bottighofen. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 14, 2007. REMATON JSC: Proofs of Claim Filing Deadline is Oct. 15 -------------------------------------------------------- Creditors owed money by JSC Rematon are requested to file their proofs of claim by Oct. 15, 2008, to: Trust Company JSC B + S Universal Treuhand Bahnhofstrasse 4 6102 Malters Switzerland The company is currently undergoing liquidation in Risch. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 19, 2007. WABRENT LLC: Creditors' Proofs of Claim Due by Oct. 10 ------------------------------------------------------ Creditors owed money by LLC Wabrent are requested to file their proofs of claim by Oct. 10, 2008, to: Hauptstrasse 13 5734 Reinach Switzerland The company is currently undergoing liquidation in Reinach AG. =========== T U R K E Y =========== * S&P Sees Little Progress in Turkish Transparency & Disclosure --------------------------------------------------------------- Expectations of continuing improvements in transparency and disclosure at Turkish companies have largely evaporated over the past 12 months, says a research report published by Standard & Poor's Ratings Services. Titled "Turkish Transparency And Disclosure Survey 2008: A Year Of Little Or No Progress," the report reveals that firms in Turkey have little appetite for improving their disclosure practices above current levels and beyond that required by regulation. The report summarizes the results of the final phase of a four- year study into disclosure undertaken by S&P in conjunction with the Corporate Governance Forum of Turkey at Sabanci University in Istanbul. "After the initial promising results in the early phases of the study, our latest survey confirms that companies' efforts to improve their disclosure levels have stalled, showing little or no change year-on-year from last year's results," said S&P's governance analyst Amra Balic. "For example, the average score for disclosure per company among the 50 firms in our study sample is 61%, the same as in 2007. The average score achieved for financial reporting, meanwhile, slipped to 73% from 75% last year. "However, we do note some positive developments, predominantly the shrinking gap between the top performers and the remainder of our sample." Although the reasons for the slowdown in disclosure gains are not entirely clear, S&P believes that one factor is a general lack of voluntary disclosure. Evidence of this is shown by the fact that company scores seem to converge around the disclosure required and captured under International Financial Reporting Standards, a mandatory standard in Turkey since 2005. Further evidence that disclosure is mainly driven by regulations is shown by the continuing very low levels of information related to the board of directors. "We expect the next wave of improvements in disclosure at Turkish companies will occur with the enactment of the long-awaited new Commercial Code," said Ms. Balic. Looking across the four years of the study, three firms feature repeatedly in the top five for disclosure (in alphabetical order) -- Anadolu Efes Biracilik ve Malt Sanayii AS (BB/Stable/--), Ko� Holding, and Turkcell Iletisim Hizmetleri A.S. (foreign currency BB/Positive/--). Notably among this trio, Anadolu Efes and Turkcell are dual-listed and therefore subject to the stricter disclosure regimes of the London Stock Exchange and New York Stock Exchange, respectively. Other key findings of the 2008 survey reveal that: -- The overall improvements in disclosure levels continue to be greatest among the companies that scored lowest in the previous years' surveys. -- Holding companies and their subsidiaries continue to have different disclosure levels, and therefore concerns remain about the transparency of business groups. The study sample of 50 Turkish companies includes 44 firms that were constituents of the S&P/IFC Global Index in October 2004 when the original sample was selected, the remainder being taken from the top 100 companies listed on the Istanbul Stock Exchange (ISE). The companies involved are selected by the researchers on the basis of being the largest in terms of market capitalization and liquidity. ============= U K R A I N E ============= BIG LINE: Creditors Must File Claims by September 25 ---------------------------------------------------- Creditors of Building Corporation Big Line (code EDRPOU 31325853) have until Sept. 25, 2008, to submit proofs of claim to: The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 7, 2008. The case is docketed as 22/4b. The Debtor can be reached at: Building Corporation Big Line Karl Marks Str. 8 91000 Lugansk Ukraine BOTIYEVSKOYE BREADRECEIVING: Claims Filing Period Ends Sept. 26 --------------------------------------------------------------- Creditors of OJSC Botiyevskoye Breadreceiving Enterprise (code EDRPOU 00954248) have until Sept. 26, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on July 31, 2008. The case is docketed as B 26/151-08. The Debtor can be reached at: OJSC Botiyevskoye Breadreceiving Enterprise Heroes of Stalingrad Str. 181 49057 Dnipropetrovsk Ukraine FACTOR CJSC: Creditors Must File Claims by Sept. 26 --------------------------------------------------- Creditors of CJSC Factor (code EDRPOU 22065052) have until Sept. 26, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 23, 2008. The case is docketed as 49/96-b. The Debtor can be reached at: CJSC Factor Apt. 1 Trekhsviatitelskaya Str. 9 01001 Kiev Ukraine FAREZ LLC: Creditors Must File Claims by Sept. 25 ------------------------------------------------- Creditors of LLC Farez (code EDRPOU 34484342) have until Sept. 25, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 7, 2008. The case is docketed as 28/234-b. The Debtor can be reached at: LLC Farez Solomenskaya Str. 5 03100 Kiev Ukraine KADUTSEY-ARMA: Creditors Must File Claims by September 25 --------------------------------------------------------- Creditors of LLC Kadutsey-Arma (code EDRPOU 34804243) have until Sept. 25, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 4, 2008. The case is docketed as 44/166-b. The Debtor can be reached at: LLC Kadutsey-Arma Ofc. 3 Gorky Str. 13 01004 Kiev Ukraine KARPATBUILDING: Creditors Must File Claims by Sept. 25 ------------------------------------------------------ Creditors of Building Enterprises Corporation Karpatbuilding Subsidiary Company Karpatbuilding (code EDRPOU 30918694) have until Sept. 25, 2008, to submit proofs of claim to: The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 8, 2008. The case is docketed as 4/98. The Debtor can be reached at: Building Enterprises Corporation Karpatbuilding Subsidiary Company Karpatbuilding Princess Olga Str. 5V 79044 Lvov Ukraine KOLOS-K LLC: Creditors Must File Claims by September 25 ------------------------------------------------------- Creditors of LLC Kolos-K (code EDRPOU 31593340) have until Sept. 25, 2008, to submit proofs of claim to: The Economic Court of Sumy Shevchenko Avenue 18/1 40030 Sumy Ukraine The Economic Court of Sumy commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 7, 2008. The case is docketed as 6/135-08. The Debtor can be reached at: LLC Kolos-K Trudovaya Str. 48 Duboviazovka Konotop District 41655 Sumy Ukraine LEGION SPORT: Creditors Must File Claims by September 25 -------------------------------------------------------- Creditors of LLC Legion Sport (code EDRPOU 32948961) have until Sept. 25, 2008, to submit proofs of claim to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 6, 2008. The case is docketed as B-24/145-08. The Debtor can be reached at: LLC Legion Sport Lenin Avenue 9 61166 Kharkov Ukraine MICHURIN AGRICULTURAL: Creditors Must File Claims by Sept. 25 ------------------------------------------------------------- Creditors of Michurin Agricultural LLC (code EDRPOU 03789264) have until Sept. 25, 2008, to submit proofs of claim to: The Economic Court of Hmelnitskij Nezalezhnosti Square 1 29000 Hmelnitskij Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy supervision procedure on the company. The case is docketed as 3/151-B. The Debtor can be reached at: Michurin Agricultural LLC Novoselitsa Polonsky District 30500 Hmelnitskij Ukraine SLAVIANKA LLC: Creditors Must File Claims by September 27 --------------------------------------------------------- Creditors of LLC Company Slavianka (code EDRPOU 32127236) have until Sept. 27, 2008, to submit proofs of claim to: The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent on June 2, 2008. The case is docketed as 4/219. The Debtor can be reached at: LLC Company Slavianka Zamarstynovskaya Str. 219 Lvov Ukraine WESTRESOURCE LLC: Creditors Must File Claims by September 26 ------------------------------------------------------------ Creditors of LLC Westresource (code EDRPOU 33294492) have until Sept. 26, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 43/234. The Debtor can be reached at: LLC Westresource Okhtyrsky Lane 3 03022 Kiev Ukraine YUTOR LLC: Creditors Must File Claims by Sept. 26 ------------------------------------------------- Creditors of LLC Yutor (code EDRPOU 33440209) have until Sept. 26, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on July 30, 2008. The case is docketed as 43/178. The Debtor can be reached at: LLC Yutor Molodogvardeyskaya Str. 11 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== FAMOUSCHALLEN LTD: Brings in Liquidators from Vantis ---------------------------------------------------- Colin Ian Vickers and Christopher David Stevens of Vantis Business Recovery Services,were appointed joint liquidators of Famouschallen Ltd. on Sept. 2, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Famouschallen Ltd. 1 Horsham Gates North Street Horsham West Sussex England GOLFIZUS LTD: Claims Filing Period Ends December 4 -------------------------------------------------- Creditors of Golfizus Ltd. have until Dec. 4, 2008, to send in their full forenames and surnames, address and descriptions, full particulars of their debts or claims, and the names and addresses of their solicitors (if any), to: David Elliott Liquidator Moore Stephens LLP Victory House Admiralty Place Chatham Maritime Kent ME4 4QU England David Elliott of Moore Stephens LLP was appointed liquidator of the company on Sept. 4, 2008, for the creditors' voluntary winding-up procedure. HURSTWOOD DEVELOPMENTS: Goes Into Administration ------------------------------------------------ Chris Barry of Manchester Evening News reports that two further Hurstwood Group subsidiaries have been put into administration, resulting to job losses. Hurstwood Developments and Hurstwood Facilities Management went bust after being hit by the credit crunch, the collapse of the housing market and pressure from creditors, the report relates. According to the report, the administration process is being handled by KPMG. "We have spent millions of pounds over the last 12 months trying to keep Hurstwood Developments alive but pressures outside our control and the knock-on effect of placing Hurstwood Construction into administration earlier this year, eventually took their toll," Hurstwood chairman Stephen Ashworth was quoted by Manchester Evening News as saying. "Restructuring is a very painful process and we have no choice but to close down all of our construction activity and by doing so, retreat to our core activity of property investment," Mr. Ashworth added. Based in Bolton, Hurstwood Developments is behind nearly 20 schemes in the region, including the GBP60 million New Hall Hey project in Rossendale, the report discloses. As reported in the TCR-Europe, Hurstwood Construction, a unit of the Hurstwood Group, was placed into administration in June. Begbies Traynor was appointed as administrator of the company. The move was a result of "funding problems" in its Howard Town Mill project in Glossop, Derbyshire. HURSTWOOD FACILITIES: Goes Into Administration ---------------------------------------------- Chris Barry of Manchester Evening News reports that two further Hurstwood Group subsidiaries have been put into administration, resulting to job losses. Hurstwood Facilities Management and Hurstwood Developments went bust after being hit by the credit crunch, the collapse of the housing market and pressure from creditors, the report relates. According to the report, the administration process is being handled by KPMG. "We have spent millions of pounds over the last 12 months trying to keep Hurstwood Developments alive but pressures outside our control and the knock-on effect of placing Hurstwood Construction into administration earlier this year, eventually took their toll," Hurstwood chairman Stephen Ashworth was quoted by Manchester Evening News as saying. "Restructuring is a very painful process and we have no choice but to close down all of our construction activity and by doing so, retreat to our core activity of property investment," Mr. Ashworth added. Based in Bolton, Hurstwood Developments is behind nearly 20 schemes in the region, including the GBP60 million New Hall Hey project in Rossendale, the report discloses. As reported in the TCR-Europe, Hurstwood Construction, a unit of the Hurstwood Group, was placed into administration in June. Begbies Traynor was appointed as administrator of the company. The move was a result of "funding problems" in its Howard Town Mill project in Glossop, Derbyshire. INGRAM MICRO: Economic Softness to Continue in September -------------------------------------------------------- Ingram Micro Inc. issued a revised financial outlook for the third quarter ending Sept. 27, 2008. Revenues for the third quarter now are expected to range from US$8.3 billion to US$8.6 billion. Net income is expected to range from US$30 million to US$39 million, or US$0.18 to US$0.23 per diluted share based on 169 million weighted average shares outstanding. This includes an estimated US$5 million (US$3 million net of tax or US$0.02 per diluted share) in costs to be incurred during the third quarter related to the completion of expense-reduction plans in North America and Europe. "Earlier this month, we disclosed that softer economies created more competitive environments in July and August," said Gregory M. Spierkel, chief executive officer, Ingram Micro Inc. "It's now clear that this economic softness is continuing into September, which is exerting greater pressure on operating margins. In Europe, we are not seeing the typical September bounce- back from the summer holidays. North America seemed to be relatively stable in the summer months, but we're experiencing broad-based softness in September." Mr. Spierkel added that all regions have initiatives in place to improve results. "We are exiting low-return businesses and categories, particularly in our largest operations, which dampens results during this challenging economic period but will create a more profitable operation in the future," Mr. Spierkel explained. "We are also reducing costs as quickly as possible, with our current restructuring program expected to generate US$18 million to US$24 million of annualized savings beginning early next year, but the pace of the downturn is more rapid than expected. We are reviewing additional cost-reduction actions to supplement this current program in the coming quarters. We also introduced a freight-recovery initiative to offset rising fuel costs, which is still in a transition phase but we're confident it will strengthen the organization for the long-term." The company is scheduled to report results for the third quarter on Oct. 23, 2008. About Ingram Micro Headquartered in Santa Ana, California, Ingram Micro Inc. (NYSE: IM) -- http://www.ingrammicro.com/-- together with its subsidiaries, distributes information technology products and supply chain solutions worldwide. Its IT products include peripherals, networking, software, and systems. The company has operations in Brazil, Chile, the United Kingdom, Belgium, Switzerland, among others. * * * Ingram Micro Inc. continues to carry a Ba1 long-term corporate family rating from Moody's Investors Service with a stable outlook. The company also carries the agency's Ba2 bank loan debt rating and Ba1 probability of default rating. IRP REALISATIONS: Calls in Liquidators from BDO Stoy Hayward ------------------------------------------------------------ Toby Scott Underwood and Francis Graham Newton of BDO Stoy Hayward LLP were appointed joint liquidators of IRP Realisations Ltd. (formerly Intermet Refractory Products Ltd.) on Sept. 3, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: IRP Realisations Ltd. c/o BDO Stoy Hayward LLP 1 Bridgewater Place Water Lane Leeds LS11 5RU England LEHMAN BROTHERS: Gets Interim OK to Borrow US$200MM from Barclays --------------------------------------------------------------- Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York granted Lehman Brothers Holdings Inc. interim authority to immediately borrow up to US$200,000,000 from Barclays Bank Plc and use those borrowed funds as outlined in a budget to which Lehman and Barclays have agreed. Judge Peck held that the the terms and conditions of the parties' DIP Credit Agreement are fair and reasonable under the circumstances, and that Lehman Brothers' business would be irreparably harmed if the DIP Credit Agreement were not approved. Judge Peck will convene a Final DIP Financing Hearing on Oct. 2, 2008, in Manhattan. Objections, if any, must be filed and served no later than 4:00 p.m. on Sept. 25, 2008. Lehman Brothers' ability to maintain business relationships with its customers, pay its employees, and satisfy other critical operating expenses is essential to its ability to survive, Richard P. Krasnow, Esq., at Weil, Gotshal & Manges LLP, told Judge Peck at a hearing Sept. 17 in Manhattan, and there is little or no cash available to the Debtor. In light of the events of the last week, Mr. Krasnow said, Lehman no longer has liquidity to fund its operations. Without immediate access to a source of fresh working capital, Mr. Krasnow warned, Lehman's operations may literally shut down and result in irreparable harm to its business and substantial deterioration of the value of its enterprise to the detriment of its estate, its thousands of employees, its creditors, and its stockholders. Lehman Brothers is seeking to borrow up to US$450,000,000 under a Senior Secured Superpriority Debtor-in-Possession Credit Facility arranged by Barclays. The Debtor will repay all amounts borrowed from Barclays from the proceeds of the sale of Lehman Brothers Inc. to Barclays Capital Inc. (or any higher bidder) for US$1.7 billion. The terms of the DIP loan are: Borrower: Lehman Brothers Holdings Inc. DIP Lenders: Barclays Bank plc and any other lenders who become a party to the DIP Credit Agreement. Loan Amount: US$450,000,000, in the form of: -- a US$250,000,000 Term Loan to be made available immediately following the entry of an Interim DIP Financing Order and -- a US$200,000,000 Revolving Loan to be made available to the Debtor upon entry of a Final DIP Financing Order. Mandatory Prepayments: Proceeds from the Sale of Lehman Brothers Inc. and certain other assets must be used to pay off the DIP Credit Facility. All cash in excess of US$5,000,000 at the close of any business day must be used to pay down any borrowings under the Revolving Loan Facility. Maturity Date: The earliest of: (A) March __, 2009; (B) the date on which the LBI/Barclays Sale Agreement terminates; and (C) consummation of a sale of Neuberger Berman Holdings LLC; Interest: At Barclays option: (1) for the first 60 days: -- LIBOR plus 6.0% per annum; -- the Prime Rate plus 5.0% per annum; or -- the Federal Funds Rate plus 5.5%; and (2) thereafter: -- LIBOR plus 7.5% per annum; -- the Prime Rate plus 6.5%; or -- the Federal Funds Rate plus 7.0%. all subject to a 3.5% LIBOR floor, a 4.5% Prime Rate floor, and a 4.0% Federal Funds Rate floor. In the event of a default, the Interest Rate increases by 2.0%. Fees: Lehman Brothers will pay Barclays an Unused Line Fee equal to 1% per year on every dollar is doesn't borrow under the DIP Financing Facility. Lehman Brothers will pay Barclays additional fees described in a non-public Fee Letter dated September 17, 2008. Collateral: All loans will be secured by a first priority lien in all of Lehman Brothers' equity interests in Neuberger Berman. Carve-Out: Barclays liens and superpriority administrative expense claims are subject to a US$6,000,000 Carve- Out for payment of fees and expenses owed to the professionals representing Lehman Brothers and its Creditors' Committee, the Court Clerk and the U.S. Trustee in the event of a default. Use of Proceeds: The proceeds of the DIP Credit Facility will be used by the Debtor to fund professionals fees, personnel expenses and other operating expenses in accordance with a [non-public] budget to be agreed upon with the DIP Lenders. Conditions & Covenants: Lehman Brothers is required to appoint: Brian Marsal ALVARAZ & MARSAL, LLC 600 Lexington Avenue, 6th Floor New York, NY 10022 Telephone (212) 759-4433 Fax (212) 759-5532 as its Chief Restructuring Officer on terms reasonably acceptable to Barclays, and Mr. Marsal must report directly to Lehman's Board of Directors. Lehman Brothers is required to hire an investment banker or other financial advisor satisfactory to Barclays. Barclays has the right to appoint and retain its own financial advisor at Lehman Brothers' expense. Ian T. Lowitt, Lehman's chief financial officer, controller, and executive vice president, told Judge Peck that he believes the terms of the Barclays Loan Facility are significantly more favorable than any terms that would be offered by other lenders. Mr. Lowitt says this arises largely from the fact that Barclays is the proposed purchaser of Lehman Brothers Inc. Mr. Lowitt is convinced that the DIP Credit Facility reflects the exercise of the Debtor's sound business judgment. Mr. Lowitt assured Judge Peck that the Debtor negotiated with the DIP Lenders at arms- length, in good faith and pursuant to its sound business judgment. Subject only to the Carve-Out, all amounts Lehman borrows from Barclays will: -- constitute, under section 364(c)(1) of the Bankruptcy Code, allowed superpriority administrative expense claims against the Debtor having priority over all administrative expenses of the kind specified in, or ordered pursuant to, any provision of the Bankruptcy Code, including, without limitation, those specified in, or ordered pursuant to, sections 105, 326, 328, 330, 503(b), 506(c), 507(a), 507(b), 546(c), 726 and 1114 of the Bankruptcy Code, or otherwise, whether incurred in the Chapter 11 Case or any conversion thereof to a case under chapter 7 of the Bankruptcy Code or any other related proceeding; and -- be secured, pursuant to section 364(c)(2) of the Bankruptcy Code, by valid, binding, enforceable, first priority and perfected Postpetition Liens in (a) all of Lehman's equity interests in Neuberger Berman Holdings LLC. Judge Peck instructs the Debtor to deliver a copy of the Fee Letter to the Court, the Creditors' Committee and the U.S. Trustee, and directs those parties to keep that document secret. Barclays is represented by: Lisa Schweitzer, Esq. Lindsee Granfield, Esq. CLEARY GOTTLIEB STEEN & HAMILTON LLP One Liberty Plaza New York, NY 10006 A full-text copy of the 100-page Credit Agreement is available at http://bankrupt.com/misc/LehmanBarclaysDIP.pdfat no charge. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: US$138BB in Advances by JPMorgan Is Secured ---------------------------------------------------------- Lehman Brothers Holdings, Inc., sought and obtained confirmation from the U.S. Bankruptcy Court for the Southern District of New York regarding the status and treatment of transfers amounting to US$138 billion made by JPMorgan Chase Bank, N.A., to Lehman Brothers, Inc. Lehman Brothers Inc., a non-Debtor subsidiary of Lehman Brothers Holdings, is a registered broker-dealer with the Securities and Exchange Commission. JPMorgan Chase Bank is party to five clearing agreements with Debtor and certain of its affiliates: (A) the Clearance Agreement executed by Chase as of June 15, 2000 and executed by the Debtor, LBI, Lehman Commercial Paper Inc., Lehman Brothers International (Europe), Lehman Brothers OTC Derivatives Inc., and Lehman Brothers Japan Inc. as of June 7, 2000; (B) the Clearance Agreement, dated as of September 10, 2008, with Lehman Brothers Bank, FSB; (C) the Clearance Agreement, dated as of September 10, 2008, with Lehman Brothers Bankhaus Aktiengesellschaft; (D) the Clearance Agreement, dated as of September 10, 2008, with Lehman Brothers Commercial Bank; and (E) the Global Custody and Clearance Agreement, dated March 14, 2001, with LBI, and together with the June 2000 Clearance Agreement. Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, in New York, says pursuant to the June 2008 Clearance Agreement, the September 2008 Clearance Agreements and the Global Clearance Agreement, Chase may, in its sole discretion, make advances to or for the benefit of the respective Lehman Clearance Parties, which advances are payable by the Lehman Clearance Parties upon demand by Chase. Mr. Miller says further that the obligations of the Lehman Clearance Parties under the Clearance Agreements are guaranteed by Lehman pursuant to: (1) the Guaranty, dated as of August 26, 2008, by the Debtor in favor of Chase and its successors and assigns; and (2) the Guaranty, dated as of September 9, 2008, made by the Debtor in favor of Chase and its affiliates, subsidiaries, successors, and assigns. According to Mr. Miller, the Debtor's obligations under the Guarantee Agreements are secured by collateral, including all its proceeds, whether arising before or after the Commencement Date, pledged to Chase pursuant to: (a) the Security Agreement, dated as of August 26, 2008, by the Debtor in favor of Chase and any of its successors and assigns party to the Clearance Agreements; and (b) the Security Agreement, dated as of September 9, 2008, by the Debtor in favor of Chase and any of its affiliates, subsidiaries, successors, and assigns. The Agreements contain these additional key provisions: -- the Clearance Agreement was amended Aug. 26, 2008 pursuant to which Lehman Brothers Holdings, Inc., Lehman Brothers International (Europe), Lehman Brothers OTC Derivatives Inc. and Lehman Brothers Japan Inc., joined Lehman Brothers Inc. and Lehman Commercial Paper Inc. as customers under the Agreement. The amendment also said that except for the obligations of Lehman Brothers Holdings under the Guaranty and Security Agreement dated Aug. 26, 2008, the obligations and liabilities of each of the Lehman entities will be several and not joint. -- on Sept. 10, 2008, Lehman Brothers Bank, FSB, Lehman Brothers Bankhaus Aktiengesellschaft, and Lehman Brothers Commercial Bank signed separate clearance agreements with Chase. -- Pursuant to the Clearance Agreement, Chase will make advances or loans to LBI and other Lehman Entities, which loans will be backed by security interest in, among other things, liens upon and right of set-off as to balance of every existing or future deposit that it maintains with Chase. -- Ian Lowitt, as CFO of Lehman Brothers Holdings, signed a Guaranty dated Aug. 26, 2008, pursuant to which the company agreed to guarantee the loans and advances made by Chase to LBI, et al. -- Chase agreed to act as non-exclusive agent for securities transactions for the Lehman entities. Chase also agreed to provide tri-party custodian services, pursuant to which it will accept from LBI any securities, which include physical securities and securities held by the Federal Reserve Bank of New York, DTC, PTC, First Chicago Clearing Center, or other depository or clearing corporation. Full-text copies of the Agreements can be accessed for free at http://bankrupt.com/misc/LehmanChaseAgreements.pdf US$138 Billion in Advances By Chase on Sept. 15 and 16 At the opening of the U.S. securities markets on Sept. 15, 2008, after the filing of Lehman's Chapter 11 petition, Chase advanced US$87 billion to or for the benefit of the Lehman Clearance Parties at the request of the Debtor and the Federal Reserve Bank of New York, Mr. Miller relates. That Commencement Date Advance was necessary to clear, and facilitate the settlement of, securities transactions with customers or clients of the Lehman Clearance Parties to avoid a disruption of the financial markets, he says. The Commencement Date Advance was repaid by the Federal Reserve Bank. Mr. Miller relates further that on Sept. 16, Chase advanced "a comparable amount" to or for the benefit of the Lehman Clearance Parties at the request of the Debtor and the Federal Reserve Bank of New York. He says the Second Day Advance was necessary to clear, and facilitate the settlement of, securities transactions with customers or clients of the Lehman Clearance Parties to avoid a disruption of the financial markets. Chase may elect to make additional advances under the Clearance Agreements in its sole discretion. Pursuant to the Guarantee Agreements and Security Agreements, all Postpetition Advances are guaranteed by the Debtor, which guarantees are secured by the Holding Company Collateral, Mr. Miller adds. Bankruptcy Court Confirms Advances Pursuant to Section 105(a) of the Bankruptcy Code, the Debtor sought and obtained confirmation from Judge James M. Peck that any of Chase's claims arising under or pursuant to the Clearance Agreements, Guarantee Agreements, or Securities Agreements -- which agreements are securities contracts within the meaning of Section 741(7)(A) of the Bankruptcy Code -- arising from any Postpetition Advances, will be allowed as claims under the Guarantee Agreements and will be secured by the Holding Company Collateral to the same extent as if they had been made prior to the Petition Date. Mr. Miller asserted that to assure that Chase will continue to perform under the Clearance Agreements, out of an abundance of caution, it is necessary for the Court to confirm that the claims of Chase that may arise from Postpetition Advances or other transactions arising under or pursuant to the Clearance Agreements, Guarantee Agreements, or Security Agreements post the Petition Date will be allowed as claims under the Guarantee Agreements secured by the Holding Company Collateral. To the extent the Court views the Postpetition Advances as the postpetition incurrence of debt, the Debtor asked the Court to confirm that the Postpetition Advances are authorized under Section 364 of the Bankruptcy Code as to the Guarantee Agreements and the Holding Company Collateral. The Debtor clarified that it is not asking the Court to validate Chase's guarantees or the liens securing the guarantees, or to grant administrative expense status for the Clearing Claims. Rather, out of an abundance of caution, it was asking the Court to confirm that Chase's Clearing Claims will be allowed as claims under the Guarantee Agreements that are secured by the Holding Company Collateral to the same extent as if they had been made prior to the Commencement Date. The Debtor has been advised by Chase that, if the Court will not grant the request, Chase will be unable to continue to make Postpetition Advances at the Debtor's request, Mr. Miller relates. It is essential to the Debtor's customers that Chase continue to clear securities transactions for the Lehman Clearance Parties in accordance with its prepetition practices. Any cloud on the guarantees vis-a-vis the Holding Company Collateral will inhibit Chase from clearing advances to or for the benefit of the Lehman Clearance Parties to the detriment of public investors. According to Mr. Miller, approval of the Debtor's proposal is fully consistent with the terms of the Bankruptcy Code, will facilitate a smooth and orderly transition of the Debtor's operations into Chapter 11, and minimize not only the disruption of the Debtor's business affairs, but also the disruption of the financial markets as a whole. After a hearing on September 16, the Court ruled that any of Chase's claims against Lehman arising under or pursuant to the Clearance Agreements, the Guarantee Agreements, or the Securities Agreements arising from any Postpetition Advances will be allowed as claims under the Guarantee Agreements and will be secured by the Holding Company Collateral to the same extent as if they had been made prior to the date on which the Debtor commenced its Chapter 11 case in the Court. Chase: Advances for Clearing of Securities Transactions with LBI clients JPMorgan Chase Bank, N.A., delivered a statement to Judge Peck supporting the Debtor's motion for confirmation of the status of the Clearing Advances. Harold S. Novikoff, Esq., at Wachtell, Lipton, Rosen & Katz, in New York, confirmed that Chase advanced US$87 billion to or for the benefit of LBI on September 15, 2008, in order to clear, and facilitate the settlement of, certain securities transactions with customers or clients of LBI. The advance was repaid on Sept. 15, 2008. Mr. Novikoff adds that on Sept. 16, 2008, Chase advanced US$51 billion. Mr. Novikoff stressed that the Debtor is not asking for a validation of Chase's guarantee from the Debtor or of the liens that secure that guarantee, nor does it seek a determination that Chase is entitled to administrative expense status. Rather, the Court is being asked to confirm that Clearing Claims arising from Postpetition Advances or other transactions after the filing of the Debtor's bankruptcy petition will be allowed as claims under the Guarantee Agreements, and will be secured by the Holding Company Collateral, to the same extent as if they had been made prior to the filing of the Debtor's bankruptcy petition. Mr. Novikoff warned that if the Court does not grant the Debtor's proposal, Chase would stop making Postpetition Advances as it has been doing at the Debtor's request. * * * According to Bloomberg News, Chase said that the second advance of US$51 billion has been repaid and the process will zero out the advances at the end of each day. The advances are guaranteed through collateral of Lehman Brothers' holding company under an existing agreement. Chase holds about US$17 billion in collateral to secure the advances, according to Bloomberg. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: To Sell Investment Mgmt Unit to Bain, Hellman -------------------------------------------------------------- According to Bloomberg News, Lehman Brothers Holdings is in discussions regarding a sale of its investment-management unit to private-equity firms Bain Capital LLC and Hellman & Friedman LLC, Bloomberg News reports, citing people familiar with the negotiations. Lehman's Investment-Management unit recorded net revenues (revenues less interest) of US$634 million in the quarter ended Aug. 31, 2008, compared to US$802 million during the same period in 2007. Investment Management provides strategic investment advice and services to institutional and high-net-worth clients on a global basis. During 2007, Lehman acquired H.A. Schupf, a high net worth boutique asset manager with approximately US$2.3 billion in assets under management; LightPoint Capital Management LLC, a leveraged loan investment manager based in Chicago, Illinois, with approximately US$3.2 billion in assets under management; Dartmouth Capital, a U.K.-based investment advisory firm with approximately US$340 million in assets under advisory; and MNG Securities, an equity securities brokerage firm in Turkey. Lehman also purchased interests in both Spinnaker Asset Management Limited and Spinnaker Financial Services, part of Spinnaker Capital, an emerging markets investment management firm, and a 20% interest in the D.E. Shaw group, a global investment management firm. The Asset Management section under Investment-Management includes proprietary asset management products across traditional and alternative asset classes, through a variety of distribution channels, to individuals and institutions: (i) Neuberger Berman, which Lehman acquired in 2003; (ii) Lehman Brothers Asset Management brands; and (iii) Private Equity, under which a number of private equity portfolios are managed. A second section, Private Investment Management, provides traditional brokerage services and comprehensive investment, wealth advisory, trust and capital markets execution services to both high-net- worth individuals and small and medium size institutional clients, leveraging all the resources of Lehman Brothers. Established in 1984, Bain Capital is an private investment firm, managing over US$78 billion in assets. Its affiliated advisors in private equity, public equity, leveraged debt assets, venture capital and global macro assets. Hellman & Friedman LLC, founded in 1984, is a private equity investment firm well respected for its distinctive investment philosophy and approach. During its 22-year investing history, it has raised and managed over US$16 billion of committed capital and has invested in over 50 companies. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: SIPC Does Not Expect Liquidation ------------------------------------------------- The Securities Investor Protection Corporation, which maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms, issued the following statement this morning in relation to reports about the bankruptcy filing of Lehman Brothers Holdings, Inc. SIPC President Stephen Harbeck said: "SIPC has not initiated a liquidation proceeding against the broker-dealer Lehman Brothers Inc. and we do not currently anticipate doing so. As of this morning, it appears that all customer cash, stocks and other securities are accounted for." "It is important to understand that the holdings of broker-dealer Lehman Brothers Inc., would not be directly impacted by a bankruptcy filing at the separate entity Lehman Brothers Holdings, Inc. "Should the situation at Lehman Brothers Inc. change in some material way not now anticipated by SIPC and regulators, we will, of course, intervene as necessary to protect the cash and securities of customers. However, I want to underscore that such an action is considered unlikely at this time. "SIPC is working closely with the U.S. Securities and Exchange Commission (SEC) to monitor the situation at Lehman Brothers Inc. "The Securities Investor Protection Corporation remains vigilant and committed to our core mission: When a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing, SIPC steps in as quickly as possible and, within certain limits, works to return customers' cash, stock and other securities. Without SIPC, investors at financially troubled brokerage firms might lose their securities or money forever or wait for years while their assets are tied up in court." About SIPC The Securities Investor Protection Corporation is the U.S. investor's first line of defense in the event a brokerage firm fails, owing customer cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non- negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of US$500,000. This figure includes a maximum of US$100,000 on claims for cash. From the time Congress created it in 1970 through December 2006, SIPC has advanced US$505 million in order to make possible the recovery of US$15.7 billion in assets for an estimated 626,000 investors. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: U.S. Trustee Appoints Panel, RR Donnelly Quits --------------------------------------------------------------- Pursuant to Section 1102 of the Bankruptcy Code, Diana G. Adams, the United States Trustee for Region 2, appointed these seven creditors to serve on the Official Committee of Unsecured Creditors in Lehman Brothers' Chapter 11 cases: 1. Wilmington Trust Company, as Indenture Trustee 520 Madison Avenue, 33rd Floor New York, New York 10022 Attn: James J. McGiniey, Managing Debtor Phone Number (212) 415-0522 Fax Number (212) 415-0513 2. The Bank of NY Mellon 101 Barclay - 8 W. New York, New York 10286 Attn: Gerard Facendola, Vice President Corporate Trust Phone Number (212) 815-5373 3. Shinsei Bank, Limited 1-8, Uchisaiwaicho 2- Chome Chiyoda - Ku, Tokyo 100-8501 Japan Attn: Edward P. Gilbert Phone Number 81-3-5510-6614 Fax Number 81-3-4560-2846 4. Mizuho Corporate Bank, Ltd. as Agent 1251 Avenue of the Americas New York, New York 10020-1104 Attn: Noel P. Purcell, Senior Vice President Phone Number (212) 282-3486 Fax Number (212) 282-4490 5. The Royal Bank of Scotland, PLC 101 Park Avenue, 6th Floor New York, New York 10178 Attn: Alan Ferguson/Michael Fabiano Phone Number (212) 401-3552 or (212) 401-3663 6. Metlife 10 Park Avenue P.O. Box 1902 Morristown, New Jersey 07962-1902 Attn: David Yu, Director Phone Number (973) 355-4581 Fax Number (973) 355-4230 7. RR Donnelley & Sons 3075 Highland Parkway Downers Grove, Il. 60515 Attn: Daniel Pevonka, Senior Manger Legal Accounts Phone Number (630) 322-6931 Fax Number (630) 322-6052 R.R. Donnelley & Sons Company said in a statement released Sept. 17 that it has resigned from the Creditors Committee. The U.S. Trustee has not yet appointed a replacement. R.R. Donnelley said that its exposure to Lehman is less than US$1 million. The Trial Attorney at the United States Trustee's office in charge of Lehman Brothers' chapter 11 cases is: Andrew D. Velez-Rivera, Esq. Office of the United States Trustee 33 Whitehall Street, 21st Floor New York, New York 10004 Tel. No. (212) 510-0500 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. Lehman's creditors convened for the Organizational Meeting at 6:00 p.m. Tuesday evening and waited until almost midnight as the Office of the U.S. Trustee interviewed candidates for the committee and assessed potential conflicts of interest. According to Bloomberg News, creditors interviewed by the U.S. Trustee that weren't named as committee members included Swedish bank Svenska Handelsbanken AB; London-based investment manager Western Asset Management Co.; Bank of China Ltd.; Bank of Tokyo Ltd.; Charlotte, North Carolina-based Bank of America Corp.; and BlackRock Inc. Milbank On Board The Committee has selected Milbank Tweed Hadley & McCloy LLP, as its legal counsel. Kramer Levin Naftalis & Frankel, Akin Gump Strauss Hauer & Feld and Paul Weiss Rifkind Wharton & Garrison were also interviewed by the Committee as potential counsel, Kramer Levin partner David Feldman said in an interview with Bloomberg. Milbank Tweed's attorneys primarily responsible for the firm's representation of the Committee are: Dennis F. Dunne, Esq. Luc A. Despins, Esq. Wilbur F. Foster, Jr., Esq. MILBANK, TWEED, HADLEY & McCLOY LLP 1 Chase Manhattan Plaza New York, New York 10005 Telephone: (212) 530-5000 Facsimile: (212) 530-5219 E-mail: ddunne@milbank.com ldespins@milbank.com wfoster@milbank.com - and - Paul Aronzon, Esq. Gregory A. Bray, Esq. MILBANK, TWEED, HADLEY & McCLOY LLP 601 South Figueroa Street, 30th Floor Los Angeles, CA 90017 Telephone: (213) 892-4000 Facsimile: (213) 629-5063 E-mail: paronzon@milbank.com gbray@milbank.com Mr. Despins is a senior partner in the Financial Restructuring Group, and is resident in the Firm's New York office. Mr. Despins' prior engagements include advising the unsecured creditors committees in Refco, Inc.'s and Enron Corp.'s chapter 11 proceedings, and representing the agent for the secured lenders in Adelphia Communications' chapter 11 cases. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: 3 Directors Dispose of Company Shares ------------------------------------------------------ Three directors of Lehman Brothers Holdings Inc., filed with the U.S. Securities and Exchange Commission statements of changes in beneficial ownership of Lehman common stock after they disposed of their shares on the day Lehman filed for bankruptcy protection. Richard Fuld Jr., chief executive officer and director, disclosed that he beneficially owns 21,040,914 shares of the company's common stock after disposing of 2,878,302 shares on Sept. 15, 2008. He further said that some of these shares are held in various benefit plans. Thomas Cruikshank disclosed that he beneficially owns 5,000 shares of the company's common stock after disposing of 28,000 shares on Sept. 15, 2008. Meanwhile, Henry Kaufman reported a zero beneficial securities ownership after he disposed of 5,000 shares of the company's common stock on the same date. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: Linklaters Advises Administrator PwC ----------------------------------------------------- In the United Kingdom, a three-partner team from Linklaters, will advise PricewaterhouseCoopers, the court-appointed administrator in Lehman Brothers Holdings Inc.'s administration case, Times Online reports. Tony Bugg, Esq., heads the Linklaters team that is supported by banking partners, Richard Holden and David Eriera, Times Online says. A team from Weil Gotshal & Manges in New York is managing Lehman Brothers' case under chapter 11 of the U.S. Bankruptcy Code, the report relates. Harvey Miller, Esq., a veteran restructuring lawyer and former chairman of boutique bank Greenhill, leads the Weil Gotshal team, Times Online says. Other laws firms engaged in Lehman Brothers' case include Lovells, which is advising the Financial Services Authority, the U.K. regulator; and Freshfields Bruckhaus Deringer, which is advising the Bank of England. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. LEHMAN BROTHERS: Case More Complex Than Enron's, PwC States ----------------------------------------------------------- Lehman Brothers Holdings Inc.'s winding down in the United Kingdom will be larger and more complex than that of Enron or MG Rover, Chris Marshall of City Wire reports, citing PricewaterhouseCoopers LLP, the court-appointed administrators for the Debtor's case. PricewaterhouseCoopers stated in a press conference that parts of Enron had required six years of work, according to the report. Early this week, PwC had said that more Lehman employees will be notified about job cuts, City Wire relates. PwC also said it is unsure if the US$75 million salary, gross of tax, would be paid, City Wire notes. PwC commented that it's a surprise that "a business as huge as [Lehman Brothers] can fail," City Wire relates. The report discloses that several dozens of PwC staff were working in Lehman Brothers's building in Canary Wharf. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. LEHMAN BROTHERS: UK Staff May Not Get Paid, Administrator Says -------------------------------------------------------------- The Birmingham Post reported that Lehman Brothers Holdings Inc.'s workers in the United Kingdom may not get their last week's salaries. As reported by the Troubled Company Reporter on Sept. 17, 2008, Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, were appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. Lehman Brothers, the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. The joint administrators have been appointed to wind down the business in as orderly a manner as possible. PwC partner Tony Lomas, who indicated the forthcoming wage bill was EUR75 million, or GBP42 million, said "(The administration) is a period of stress and distress for the people," according to the Birmingham Post. He added that there's no certainty as to the availability of cash for the wages, the report related. Mr. Lomas disclosed that the company is engaging in several transactions of vast values but it will "take some time to unravel the affairs of the company, the Birmingham Post said. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed $639 billion in assets and $613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion ($33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. LEHMAN BROTHERS: To Sell US$8MM Stake in Guyana Hotel by Year-End ----------------------------------------------------------------- Lehman Brothers Holdings Inc. is reportedly selling its US$8 million share in Le Meridien Pegasus hotel in Guyana to a Guyanese businessman by year-end, Kevin Lindon writes for the Caribbean Net News in Guyana. The undisclosed buyer is living in the United States, according to the Caribbean Net News. News of the sale follows Lehman Brothers' bankruptcy filing on Sept. 15, 2008, the report says. Caribbean Net News also said that investors are mulling on dropping "Le Meridien" off the hotel's name and retain "Pegasus." Mr. Plas asserted that the Pegasus brand would have more impact on travelers and tourists in Guyana, based on the report. The hotel's manager, Bert Plas, confirmed the report on the name change saying that the matter is under talks, Caribbean Net News relates. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. LEHMAN BROTHERS: Japan Banks, Insurers Have US$2.3BB Exposure ------------------------------------------------------------- Japan's banks and insurers disclosed a combined JPY245 billion (US$2.3 billion) of potential losses tied to the collapse of Lehman Brothers Holdings Inc., Bloomberg News reports. According to Bloomberg, Banks from Tokyo-based Mitsubishi UFJ, Japan's largest, to Bank of the Ryukyus Ltd., a lender based in Okinawa, disclosed assets that might become worthless following Lehman's filing for bankruptcy protection. The total for 37 banks was JPY198 billion, compared with a combined JPY47 billion at seven Japanese insurers, according to data compiled by Bloomberg based on announcements. Mitsubishi UFJ said in a statement that, on a net basis, the total amount of credits, etc., extended by group companies of Mitsubishi UFJ Financial Group, Inc., to Lehman Brothers Holdings and related companies is US$235 million: 1. The Bank of Tokyo-Mitsubishi UFJ, Ltd. (total US$260 million) Credits, including loans, etc.: US$218 million Of which, to the headquarters: US$35 million to Japanese subsidiary: JPY20 billion Corporate bonds: US$42 million Of these amounts US$40 million is hedged by credit default swaps. 2. Mitsubishi UFJ Trust & Banking Corporation (total US$15 million) Mizuho Financial Group Inc., Japan's second-largest bank by revenue, may record losses as much as JPY20 billion due to exposure to Lehman, spokeswoman Masako Shiono said in an interview, according to Bloomberg. The absolute priority rule under the Bankruptcy Code provides that creditors have priority over a company's equity holders. Shareholders will only receive value after creditors have been paid. Unsecured creditors won't obtain any recovery until secured creditors receive recovery to the extent of the value of their collateral. Additionally, the Singapore Stock Exchange has suspended Lehman Brothers Pte Ltd from taking on new securities and derivatives positions. SGX is facilitating the orderly transfer of customers' derivatives positions from LBPL to other brokers. At present, LBPL is meeting their financial obligations to SGX's securities and derivatives clearing houses. SGX will continue to monitor the situation and maintain the orderly function of the markets. Korea's financial regulator, the Financial Services Commission, also has banned Lehman Brothers Holdings Inc.'s Korean units from selling and repaying debts until Dec. 15., the day after parent firm filed for bankruptcy in the U.S., Yonhap News reports. According to the report, Lehman's Seoul units will also be prohibited from receiving deposits, trading stocks and transferring money overseas. The commission, the report relates, said the ban was aimed at "protecting investors at home and preventing potential chaos in local financial markets." The Korean Times notes that Seoul's benchmark stock index plunged 6.54% on the news of Lehman's bankruptcy and insurance giant AIG Inc.'s struggle for survival after being battered by mortgage losses. Moreover, Asia Pulse relates, that the Korean won currency also plunged by KRW50.9 to close at 1,160.0 versus the U.S. dollar, marking the biggest one-day loss since August 1998, as local banks scrambled to buy the U.S. currency. "The situation in the U.S. financial markets appears to be bad because Lehman filed for bankruptcy only three days after it announced a plan to sell its assets," Asia Pulse cited Shim Jae-yeop, a senior analyst at Meritz Securities Co. in Seoul, as saying. Government officials, Yonhap points out, tried to calm the market by assuring the public that Lehman's demise would probably erase uncertainties in global financial markets in the long term. The Pulse says that the Korea's finance ministry and the Bank of Korea said they would act "if necessary." Vice Finance Minister Kim Dong-soo said the government will provide liquidity to stabilize the nation's financial markets. "The government and the Bank of Korea will take steps against excessive fluctuations in foreign exchange markets," he said. As of the end of July, the Lehman units in Seoul had a total of KRW1.6 trillion (US$1.44 billion) in assets from investors. South Korean financial companies held about US$720 million in securities linked to Lehman. In Taiwan, the Financial Supervisory Commission, Taiwan's watchdog, said it would help investor's of Lehman Brothers Holdings Inc.'s Taiwan unit to file for damages against its parent firm if the need arises, Business News reports. The Commission, the report relates, also ordered the Lehman's Taiwan office to suspend operations until the parent company's financial crisis is over. The local benchmark TAIEX stock index, The China Post relates, precipitated in a steep and combined loss of 554 points in the first two days of trading this week, compared with the sharp fall of 504 points in the Dow Jones industrial average index on Monday. Taiwan Stock Exchange executives conducted an audit check at the office of Lehman Brothers in accordance with the enforcement regulations concerning TSE business operations, but have found no abnormalities except it voluntarily ceased in securities trading on September 16, according to The Post. The Post says that a large number of financial institutions in Taiwan have made investments in the bonds and other securities issued, guaranteed by, or related to the Lehman. Among the local financial institutions, Hua Nan Commercial Bank revealed that it still holds about NTUS$440 million worth of such bonds, The Post says. Hua Nan executives said they have taken necessary actions to secure the NTUS$1.7 billion loan extended to the local branch of Lehman Brothers, the same report adds. Taiwan's institutional and retail investors have about NTUS$80 billion (US$2.5 billion US dollars) of exposure in Lehman investments. The Taiwan branch of Lehman Brothers has also made investment in the transactions of non-performing loans and delinquent assets on the Taiwan market. Business News points out that some Taiwan investors have asked the Commission to freeze the assets of Lehman's Taiwan office to cover their potential losses, but the Commission said that if there are losses, the parent company is responsible, not its unit in Taiwan. If there is a need, it would help Taiwan investors seek damages from the parent company, the commission added. In India, the Reserve Bank of India (RBI) has advised Indian unit, Lehman Brothers Capital Pvt Ltd, that it would need prior approval of RBI before contracting any direct/indirect liability from any institution in India or outside India or making any foreign currency remittance, India Infoline News Service reports. According to Infoline News, the RBI is keeping a close watch on the developments in the wake of Lehman's bankruptcy filing and is in constant touch with banks and other market participants to manage any fallout of these developments on the Indian markets in an orderly manner. Meanwhile, The Economic Times says Lehman's bankruptcy wiped off more than Rs 2,000 crore (US$431 million) from the market valuation of those Indian companies in which the U.S. firm has made equity investments. In addition, recent news reports cited by The Financial Express says Lehman had asked a section of its BPO staff in India to quit. In India, Lehman employs a total of 2,500 including those in the BPO unit. The Times relates that Lehman has recorded a loss of more than Rs 50 crore on its investments in India, which is nearly 10 per cent of its current holding worth an estimated over Rs 500 crore. Late last month, Lehman offloaded around Rs 400 crore of its equity holding in nearly 10 companies, most of which were purchased by Deutsche Bank. Prior to the sell-off, Lehman's Indian equity portfolio is estimated to have been worth more than Rs 1,000 crore, which has now nearly halved to about Rs 500 crore, the Times says. Lehman also had equity holding in about two dozen firms at the end of June quarter including Spice Communications, Spice Mobile, Anant Raj Industries, Edelweiss Cap, IVRCL Infra and Tulip Telecom, the Times adds. Separately, the Times reports that Lehman's bankruptcy will impact India's largest private bank ICICI Bank partly. ICICI Bank, the same report says, will have to take a hit of US$28 million on account of the additional provisioning that ICICI Bank's UK subsidiary will have to make. ICICI Bank's UK subsidiary had investments of EUR57 million (around US$80 million) in senior bonds of Lehman Brothers, the Times notes. Broking house Edelweiss foresees the UK subsidiary would have to book mark-to-market losses of US$200 million. its subsidiaries. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: Asian Unit Quits as Citic Privatization Advisor ---------------------------------------------------------------- Lehman Brothers Asia Limited has withdrawn as financial adviser to Gloryshare Investments Limited in connection with the proposed privatization of CITIC International Financial Holdings Limited. Lehman Brothers Asia has asked Gloryshare, a unit of CITIC group, to seek a replacement advisor after the Stock Exchange of Hong Kong, Ltd., issued restriction notices on four Hong Kong-based Lehman Brothers entities, after Lehman Brothers Holdings, Inc., filed for Chapter 11 protection in the U.S. Morgan Stanley Asia Ltd has replaced Lehman effective Sept. 17 as financial advisor. Lehman Brothers was formally retained by Gloryshare in June 10, 2008, but has been making a number of proposals to CITIC group in connection with the transaction since 2007. The terms of the privatisation proposal envisaged that Banco Bilbao Vizcaya Argentaria S.A., presently a substantial shareholder of CIFH, would increase its shareholding interest in CIFH from about 15% to 30%, the balance of the shares in CIFH being held by the offeror or members of its group. The proposal has not been accepted by CIFH shareholders. In late August 2008, CITIC group beefed up its offer by boosting proposed cash payments by US$493.2 million, offering HKD2.16 per share plus one China CITIC Bank Corp Ltd H share for each CIFH share. CITIC group originally offered one CNCB CITIC Bank Corp H share plus HKD1.46 cash for each CIFH share. Jones Day is the adviser to CIFH, and Linklaters is the adviser to Banco Bilbao. Separately, Lehman Brothers Holdings Inc. suspended the provision of secondary market quotes or liquidity for unlisted structured products. In a Sept. 17 statement, Lehman Brothers said it suspended the provision for unlisted structured products issued by Pacific International Finance Limited, Atlantic International Finance Limited, and Pyxis Finance Limited pending further announcements. Lehman Brothers is the swap guarantor for the minibonds issued by Pacific International and the notes issued by the two other companies. It is also the guarantor of the collateral for the notes and for some series of minibonds. The swap counterparties for the minibonds and the notes are all wholly-owned subsidiaries of Lehman Brothers. Lehman Brothers Asia Limited is the arranger of the Lehman Brothers Unlisted Structured Products. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Barclays Bank Plc has agreed, subject to U.S. Court and relevant regulatory approvals, to acquire Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. (Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEHMAN BROTHERS: S&P Cuts Ratings on 11 Securities Transactions --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 10 Lehman Bros. Holdings Inc.-related and one Lehman Bros. Inc.- related repackaged securities transactions. At the same time, S&P removed its rating on one of the downgraded transactions from CreditWatch with developing implications, where it was placed on Sept. 12, 2008, and placed its ratings on another transaction on CreditWatch with developing implications. S&P lowered its ratings on these transactions following Standard & Poor's downgrade of LBHI to D/--/D on Sept. 16, 2008, and Standard & Poor's downgrade of Lehman Bros. Inc. to BB-/Watch Dev/B on Sept. 15, 2008. Nine of the repack downgrades reflect heightened risk to the transactions given LBHI's recent bankruptcy filing. The filing has increased the likelihood of cash flow shortfalls because the repayment terms of those transactions were, in whole or in part, supported by the fact that LBHI was acting as a guarantor of an unrated affiliate's swap payment obligations. The rating on OMX Timber Finance Investments II LLC, a pass- through transaction, is based solely on LBHI's guarantee of the repayment of an installment note that was issued by Boise Land & Timber II LLC, which Standard & Poor's does not rate. The rating on RACERS Series 2002-38-S, a pass-through transaction, is based, in part, on Lehman Bros. Inc.'s obligation to make whole market value losses upon the occurrence of a "non-investment-grade downgrade event," as per the transaction documents, related to the underlying issuer of the assets. The Lehman Bros. Inc. and LBHI-related research updates, "Lehman Bros. Holdings Downgraded To 'Selective Default'; Other Lehman Entities To 'BB-' Or 'R'" and "Lehman Brothers Holdings Inc. Rating Lowered To 'D'," were published on Sept. 15, and Sept. 16, respectively, on RatingsDirect. Ratings Lowered Restructured Asset Certificates With Enhanced Returns (RACERS) Series 2002-10-TR Trust US$14 million certificates Rating ------ Class To From ----- -- ---- Certs CCC A- Restructured Asset Certificates With Enhanced Returns (RACERS) Series 2003-7-A Trust US$17 million certificates Rating ------ Class To From ----- -- ---- Certs CCC A+ RACERS Series 2004-6-MM Trust US$2,925 million certificates Rating ------ Class To From ----- -- ---- C A-1 Restructured Asset Securities with Enhanced Returns (RACERS) Series 2004-25-TR US$63 million Rating ------ Class To From ----- -- ---- A-1 CCC BB A-2 CCC BB A-3 CCC BB A-4 CCC BB A-6 CCC BB A-7 CCC BB Restructured Asset Certificates w/Enhanced Returns (RACERS) Series 2005-6-A Trust US$5 million credit-linked certificates Rating ------ Class To From Certs CCC AA+ Restructured Asset Certificates with Enhanced Returns ("RACERS") Series 2006-15-A Trust US$500 million certificates Rating ------ Class To From ----- -- ---- Certs CCC AAA Restructured Asset Securities w/Enhanced Returns, Series 2007-7 MM Trust US$5000 million notes Rating ------ Class To From ----- -- ---- C A-1/Watch Dev Variable Funding Trust 2007-1 US$500 million variable rate senior secured revolving notes Rating ------ Class To From ----- -- ---- Notes CCC A Variable Funding Trust 2008-1 US$500 million variable rate senior secured revolving notes Rating ------ Class To From ----- -- ---- Notes CCC A OMX Timber Finance Investments II LLC US$735 million Notes Rating ------ Class To From ----- -- ---- A-2 CCC A Restructured Asset Certificates With Enhanced Returns (RACERS) Series 2002-38-S US$50 million certificates Rating ------ Class To From ----- -- ---- A-1 BB-/Watch Dev A- A-2 BB-/Watch Dev A- LEHMAN BROTHERS: S&P Cuts Five Ratings and Puts Under Dev. Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its short-term ratings on nine Lehman Brothers Inc. liquidity facility-backed issues and placed them on CreditWatch with developing implications. This action follows Standard & Poor's Sept. 15, 2008, downgrade of Lehman Brothers Inc. to 'BB-/B' from 'A+/A-1' and placement of the rating on CreditWatch with developing implications. As Lehman Brothers provides liquidity for the issues, the downgrade and CreditWatch action only affect the short-term ratings on the issues. Issue Description * Ribco Trust (California) floating rate trust receipts series 2004 L27 relating to State of California economic recovery bonds series 2004A * Ribco Trust series 00L-12 floating rate trust receipts relating to Chicago college single-family mortgage revenue bonds series 2000A * Ribco Trust series 00L-9 floating rate trust receipts relating to Colorado Housing Finance Authority single- family bonds 2000 B-2 * Ribco Trust (Florida Hsg Fin Corp.) series 2004 L9 floating rate trust receipts relating to Florida Housing Finance Corp. homeowner mortgage revenue bonds 2004 series 2 * Ribco Trust (Jefferson Parish Home Mtg Auth) series 2003 L-51J floating rate trust receipts relating to Parish of Jefferson Home Mortgage Authority single-family mortage revenue bonds series 2003C * Ribco Trust (Metropolitan Transp Auth) Floating Rate Trust Receipts series 2008-F111W relating to Metropolitan Transp Authority * Ribco Trust (Missouri Hsg Dev Comm) series 2004 L15 floating rate trust receipts relating to Missouri Housing Development Community single-family mortgage revenue bonds series 2004 series A-1 * Ribco Trust (Nebraska Invest Fin Auth) series 2001L-31 floating rate trust receipts single-family housing revenue bonds series 2000A * Ribco Trust series 2004L2 floating rate trust receipts relating to Texas Department of Housing and Community Affairs home mortgage revenue bonds MORGAN STANLEY: In Merger Talks with Wachovia --------------------------------------------- Aaron Lucchetti, Randall Smith, and Jenny Strasburg at The Wall Street Journal report that Morgan Stanley is in preliminary merger talks with Wachovia Corp. and other banks in hopes of insulating itself from the growing financial pressures. Morgan Stanley aims to regain investor confidence, citing people familiar with the matter. Jessica Hall and Joseph A. Giannone at Reuters report that Morgan Stanley's stock dropped sharply on Wednesday, suffering its worst one-day decline ever and falling to a 10-year low during the session. Reuters adds that Morgan Stanley's credit default swaps traded as if it were in imminent danger of default. The New York Times relates that relates that Morgan Stanley approached Wachovia about a potential deal, earlier this year, but was rebuffed. Telegraph.co.uk relates that Morgan Stanley wants a commercial bank with a significant deposit base to increase its access to capital in light of the continued credit crunch. According to WSJ, commercial banks like Wachovia, perceived to be more stable, could create strong incentive for the investment banks to link up with them. A source said that Wachovia is also seeking ways to limit short sales of its stock, Bloomberg reports. Wachovia Chief Executive Officer Robert Steel is cutting the firm's expenses by US$1.5 billion and reducing risk to cope with increasing losses from the company's US$122 billion of option adjustable-rate mortgages. According to Reuters, Wachovia "has been hobbled by mortgage losses, stemming from its ill-timed takeover of Golden West at the peak of the housing boom in 2006," and the company has reportedly been seeking a merger partner, hiring Goldman Sachs to study its options. WSJ relates that Morgan Stanley's chief executive, John Mack, said earlier in a Fortune magazine interview that he was "not thinking about selling the firm," but when its stock price continued to decline, Mr. Mack received a call from Mr. Steel about a potential merger. "I don't think Morgan Stanley can buy Wachovia because of regulatory hurdles. And I don't know that Wachovia has the capital to buy Morgan Stanley," Reuters quoted Danielle Schembri, a bond analyst covering broker-dealers at BNP Paribas in New York, as saying. Morgan Stanley is also exploring preliminary mergers with other banks all over the world, WSJ relates, citing people familiar with the matter. These sources, according to WSJ, said that Morgan Stanley may remain independent, but if a merger deal would be reached it could "come with the likes of HSBC Holdings PLC of the U.K., Banco Santander SA of Spain, Japan's Nomura Holdings Inc., a Chinese financial institution or a domestic partner such as Bank of New York Mellon Corp." WSJ reports that Mr. Mack also called U.S. Treasury Secretary Henry Paulson, Securities and Exchange Commission Chairperson Christopher Cox, and Goldman Sachs CEO Lloyd Blankfein, to discuss how to stop the drop in share prices. Morgan Stanley and Goldman Sachs focused on how to stop short-sellers betting on a decline in Goldman and Morgan shares, the report says, citing sources. Former Morgan Stanley market strategist Byron Wien suggested that greater transparency and controls be placed on the market for credit-default swaps, which measure the cost of insuring a company's debt, WSJ relates. Mr. Wien said that the increasing cost of those swaps has influenced stock-price drops, according to the report. WSJ relates that Morgan Chief Financial Officer Colm Kelleher said Tuesday that the company doesn't need to issue debt or new stock until 2009. CNBC reports that Morgan Stanley was also having deal discussions with CITIC, the China-controlled conglomerate that owns brokerage firm CITIC Securities. About Wachovia Corporation Based in Charlotte, North Carolina, Wachovia Corporation (NYSE:WB) -- http://www.wachovia.com/-- is one of the nation's diversified financial services companies, with assets of US$812.4 billion at June 30, 2008. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to customers through 3,300 retail financial centers in 21 states from Connecticut to Florida and west to Texas and California, and nationwide retail brokerage, mortgage lending and auto finance businesses. Clients are served in selected corporate and institutional sectors and through more than 40 international offices. Its retail brokerage operations under the Wachovia Securities brand name manage more than US$1.1 trillion in client assets through 18,600 registered representatives in 1,500 offices nationwide. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com; and investment products and services at evergreeninvestments.com. As reported in the Troubled Company Reporter on July 22, 2008, reports say that a team of regulators from more than five states investigated the St. Louis headquarters of Wachovia Corp.'s securities division in relation to its auction-rate bonds sales, reports say. The regulators were from Missouri, Illinois, Massachusetts, Pennsylvania, New Jersey and other states. Missouri Secretary of State Robin Carnahan said in a statement the investigation was prompted because Wachovia hasn't "fully complied" with a Missouri probe on the matter. Investors have filed complaints after they were unable to access money frozen when firms in the auction-rate bonds market abandoned their operations in February. The team delivered more than a dozen subpoenas to the unit's executives and agents on July 17 as part of its probe into sales practices, internal evaluations of the auction-rate securities market and marketing strategies. Bloomberg News reports that up to US$218 billion of auction-rate bonds sold by student-loan providers, municipalities and closed- end mutual funds remained frozen. About Morgan Stanley New York-based Morgan Stanley -- http://www.morganstanley.com-- is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to a group of clients and customers, including corporations, governments, financial institutions and individuals. Morgan Stanley's business segments include Institutional Securities, Global Wealth Management Group and Asset Management. The company conducts its business from New York City, its regional offices and branches throughout the United States and its principal offices in London, Tokyo, Hong Kong and other world financial centers. As reported in the Troubled Company Reporter on May 9, 2008, Fitch cut Morgan Stanley's certificate rating to C/DR4 from CC/DR2. SEA CONTAINERS: Files Amended Plan and Disclosure Statement ----------------------------------------------------------- Sea Containers Caribbean Inc., Sea Containers Ltd., and Sea Containers Services Ltd. delivered to the U.S. Bankruptcy Court for the District of Delaware a first amended joint plan of reorganization and accompanying disclosure statement on Sept. 16, 2008. The Amended Plan offers more details about the company's intended activity once it emerges from bankruptcy protection. The Court will convene a hearing on September 19, 2008, to consider the adequacy of the information contained in the Debtors' Disclosure Statement. The hearing to consider confirmation of the Plan is scheduled on November 17, 2008. Parties have until November 10 to file objections to the Plan. New Equity The Amended Plan provides that equity of Newco, the entity to which SCL will transfer its remaining container interests, will vest in the Plan Administrator and, subject to certain holdbacks and trusts set aside for certain claims, beneficial ownership interest in Newco Equitv will be distributed on a pro rata basis to holders of allowed claims. The value of Newco Equity in large part will derive, in large part, from (i) the value of SCL's interests in GE SeaCo SRL, the joint-venture entity between SCL and General Electric Capital Corporation, and (ii) the value of SCL's interests in Sea Containers SPC Ltd., the special purpose subsidiary established by SCL that owns a substantial portion of SCL's shipping containers and related lease revenues. To ensure that Non-Debtor Subsidiary directors do not seek to enforce intercompany claims, the Amended Plan contemplates the establishment of the Non-Debtor Subsidiary Reserve, which will consist of cash and Newco Equity that will be available to fund certain payments to creditors of the Non-Debtor Subsidiaries that are currently known, or that the Debtors will know of by Nov. 30, 2008. The payments will be paid according to an entity priority model dividend rate so as to approximate what those creditors would have received in a simultaneous group-wide liquidation. The Non-Debtor Subsidiary Reserve is estimated to have US$6,000,000 of cash and US$3,000,000 in aggregate value of Newco Equity shares. Equalization Escrow Account The Amended Plan also contemplates the establishment of an equalization escrow account, which will hold the equalization claim reserve, to be administered by the equalization escrow agent. The Equalization Claim Reserve will be used to satisfy any valid Equalization Claim. In addition, a separate reserve will be established to satisfy equalization-related employee claims, if any. The Equalization-Related Employee Claim Reserve is currently estimated to consist of US$4,500,000 in cash and shares of Newco Equity with an aggregate value of US$13,100,000. The Amended Plan provides that any residual value in the Equalization Claim Reserve after satisfaction of the allowed Equalization Claim will be transferred to the Equalization- Related Employee Claim Reserve subject to a US$23,800,000 maximum limit of Newco Equity that can be transferred to the Equalization-Related Employee Claim Reserve. All Newco Equity that was maintained by the Equalization Claim Reserve that is not transferred to the Equalization-Related Employee Claim Reserve will be cancelled. Any residual property remaining in the Equalization-Related Employee Claim Reserve other than Newco Equity after satisfaction of Allowed Equalization-Related Employee Claims will revert to Reorganized SCL, and, after payment of post-emergence costs, will be used to pay the Newco Repatriation Note. After the Newco Repatriation Note is paid in full, any remaining property of Reorganized SCL, other than Newco Equity, will be distributed to Reorganized SCL for distribution to the holders of Allowed Claims on a pro rata basis. Bermuda and U.K. Scheme of Arrangement In light of SCL being incorporated in Bermuda, the Bermuda Scheme of Arrangement is necessary to ensure that the Plan can be implemented under the laws of Bermuda. The Debtors have also determined that the U.K. Scheme of Arrangement is necessary to implement the Pension Schemes Settlement Agreement, which settles significant claims against the Debtors, and is a major aspect of the Plan. The effectiveness of the Schemes of Arrangement is a condition to consummation of the Plan. Because of certain English regulatory requirements, the Pension Schemes Claims against SCSL can only be compromised by way of a U.K. scheme of arrangement or their treatment must be otherwise approved by the U.K. Pension Protection Fund. As a consequence, the Pension Schemes will participate in the U.K. Scheme of Arrangement. The Amended Plan says that there will only be a single class of U.K. Scheme Claims in the U.K. Scheme of Arrangement consisting of the 1983 Pension Scheme Claims and the 1990 Pension Scheme Claims. It is anticipated that the English Court will have held the hearing to approve the UK Scheme of Arrangement prior to the close of voting for the Plan. Voting on the U.K. Scheme of Arrangement and any Debtor affiliate schemes of arrangement is separate from voting on the Plan. New Provisions Added to the Plan The Plan Proponents have inserted to the Amended Plan a section relating to their settlement negotiations with GECC with respect to GE SeaCo. In the section on disposal of the Debtors' non-core business, a provision was added to reflect that each Non-Debtor Subsidiary will pay the costs of its own liquidation and wind- down, including the costs of disposing of non-container-leasing businesses and assets. The Plan is also amended to add sections relating to, among other things, risks with respect to the Sea Containers America pension plan. In that section, the Debtors express their disagreement with the assertions of Pension Benefit Guaranty Corporation that, among other things, SC America and the Debtors are jointly and severally obligated to contribute to the Pension Plan the amounts necessary to satisfy the minimum funding standards of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. Exit Financing The Amended Plan discloses that in an effort to obtain the most attractive exit financing, the Debtors approached 10 potential exit lenders, including their existing bondholders, who were already knowledgeable about the Debtors' container interests and leasing activities. The Debtors received three preliminary, non- binding letters of intent from the 10 parties. After consulting with its advisors and the Official Committee of Unsecured Creditors' representatives, the Debtors selected a still unnamed exit lender with significant experience financing container leasing companies as the preferred lender because of its more attractive offers. The Debtors subsequently negotiated extensively for weeks to reach agreement on a financing term sheet that best meets the Debtors' requirements. The term sheet, which is in the final stages of negotiation, contemplates a financing facility of up to US$150,000,000 to Newco to repay the DIP Facility, fund certain payments contemplated under the Plan, and provide working capital for Newco. According the Plan, the Debtors expect shortly to complete negotiation of the term sheet, and to receive a financing commitment. They assure the Court that a summary of the material terms of the term sheet will be subsequently filed. They anticipate that any financing commitment will be subject to certain customary conditions, which will need to be satisfied prior to funding. Avoidance Actions The Debtors have analyzed potential avoidance of prepetition transfers under Sections 547 and 550 of the Bankruptcy Code, identifying approximately US$10,000,000 of potentially preferential transfers in the aggregate. Based upon their analysis, the Debtors believe that prosecution of these transfers through adversary proceedings likely will not produce sufficient recoveries to justify the costs incurred in connection with prosecution. The Debtors, however, believe that the existence of the transfers may provide the basis for the disallowance of one more proofs of claim filed against the Debtors, pursuant to Section 502(d) of the Bankruptcy Code. The Debtors are currently engaged in discussions with advisors to the Creditors Committees with respect to the benefits and associated costs of prosecuting preference actions. In any event, the Debtors assert that nothing in the Amended Plan or Amended Disclosure Statement will be construed to restrict or constitute a waiver of the Debtors' ability to bring avoidance actions against any entity, except with respect to those entities expressly released under the Plan. A full-text copy of the Debtors' First Amended Chapter 11 Plan is available for free at: http://ResearchArchives.com/t/s?3253 A full-text copy of the Debtors' First Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?3254 A blacklined copy of the Debtors' First Amended Plan is available for free at: http://ResearchArchives.com/t/s?3255 A blacklined copy of the Debtors' First Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?3256 Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: SCL Panel, et al., Balk at Disclosure Statement --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sea Containers, Ltd., relates that the Debtors' request to approve the settlement of the Pension Claims has been briefed, tried and argued, and the parties await the decision of the U.S. Bankruptcy Court for the District of Delaware. The SCL Committee asserts that the Court could resolve the Settlement Request in one of these ways: (i) the Court could grant the Settlement Request, and approve the proposed Pension Settlement; (ii) the Court could deny the Settlement Request outright; or (iii) the Court could deny the Settlement Request, while providing guidance reflecting the Court's view of reasonable settlement elements and a reasonable settlement range. The Debtors are asking the Court to move forward immediately with proceedings to approve their disclosure statement explaining their proposed joint plan of reorganization, and to solicit and confirm the Plan that assumes and permits only one outcome on the Settlement Request -- approval of the Pension Settlement -- even if that settlement is one of the most hotly contested issues in the bankruptcy cases, asserts William H. Sudell, Jr., Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware. "Dissemination of the Plan prior to a ruling on the Settlement is premature and is a potentially needless waste of the time and resources of the Court and the estates," Mr. Sudell contends. He points out that if the Settlement Request is denied, or if the Pension Settlement is modified, the Debtors would be required to prepare a new disclosure statement and plan, and re-solicit votes from the creditors. The proposed Plan is premised on fundamental and critical uncertainties, Mr. Sudell says. He notes that the Plan requires that the Court grant the Settlement Request in its entirety, and thus, it is impossible for Plan confirmation to proceed unless the Court rules to approve the Pension Settlement. He adds that if the Settlement Request is denied, parties would likely be forced for an expeditious re-negotiation with the relevant facts and law now on the table. Against this backdrop, the SCL Committee maintains that the most prudent, practical, economical, and expeditious way to arrive at a confirmable Plan is for the Court to issue an order (i) denying approval of the adequacy of the Disclosure Statement, and (ii) denying the pending Settlement Request, and that provides guidance reflecting the Court's view of a reasonable settlement range. SCSL Committee & Trustees Object Too Although the disclosure statement accompanying the Debtors' joint plan of reorganization purports to characterize the factors that will inform the Pension Schemes' decision to accept or reject the Plan, it fails to disclose that the Pension Schemes intend to vote to reject the Plan if, by the voting deadline, there is any chance that the Plan will be consummated in a way that would jeopardize the Pension Schemes' ability to enter the Pension Protection Fund or trigger a Pension Protection Fund assessment period, the Official Committee of Unsecured Creditors of Sea Containers Services Limited and the Pension Schemes' Trustees tell Judge Carey. David B. Stratton, Esq., at Pepper Hamilton LLP, in Wilmington, Delaware, relates that the Plan contemplates that one of the joint provisional liquidator in Bermuda or Ernst & Young LLP will be appointed Plan administrator, with the Reorganized Sea Containers Limited to pay all reasonable amounts needed by the administrator and currently pegged at US$8,000,000. Mr. Stratton argues that further disclosure is required with respect to the contemplated terms of the Plan Administrator's engagement. The Plan sets forth procedures for the appointment of the initial Plan Administrator; however, the Disclosure Statement fails to disclose in any detail the terms of the Plan Administrator's compensation, he points out. "As the Plan Administrator's compensation will be paid from the same assets that will be used to satisfy distributions to creditors of the Reorganized SCL, holders of claims against Reorganized SCL should be made fully aware of the terms of compensation prior to voting on the Plan," Mr. Sudell tells the Court. "As currently drafted, the Disclosure Statement does not provide sufficient information regarding compensation and any other material terms of the engagement to enable claim holders to make an informed judgment about the Plan," he continues. The SCSL Committee and the Pension Trustees have identified several disclosure issues to the Debtors, Mr. Sudell discloses. He states that as of the Disclosure Statement deadline, many of those issues remained unresolved. He notes that in a number of instances, and in the hope of reaching a compromise on certain open issues, the SCSL Committee and the Pension Trustees proposed their own language for inclusion in the Disclosure Statement. To the extent that any of the issues raised by the SCSL Committee and the Pension Trustees remain unresolved at the time of the Disclosure Statement hearing, the SCSL Committee and the Pension Trustees reserve their right to raise any objections in respect of those issues at the hearing. Accordingly, the SCSL Committee and the Pension Trustees ask the Court to deny the Debtors' request for approval of Disclosure Statement's adequacy, unless the Disclosure Statement is revised to disclose: (a) that the Pension Schemes will vote to reject the Plan if they believe by the voting deadline that the Plan is likely to be consummated in a way that would jeopardize the Schemes' Pension Protection Fund Eligibility; and (b) the contemplated terms of the Plan Administrator's compensation. Contrarian, et al., See Flaws Bondholders Contrarian Capital Advisors, LLC, J.P. Morgan Securities Inc., Credit Trading Group, Post Advisory Group, LLC, Trilogy Capital LLC, and Varde Investment Partners, L.P., jointly submit their reservation of rights to the Court with respect to the Debtors' request for the Court to find their proposed disclosure statement as containing adequate information. As mentioned by the Debtors' counsel during the recent status conference, the Debtors have been working with, among others, the Official Committee of Unsecured Creditors of Sea Containers, Ltd., and the Bondholders' counsel to resolve any open issues with respect to the Disclosure Statement, relates Neal J. Levitsky, Esq., at Fox Rothschild LLP, in Wilmington, Delaware. He notes that the Bondholders are hopeful that the open issues will be resolved. If there are still additional information requested by the Bondholders that the Debtors have not yet finalized or filed by the deadline for filing Disclosure Statement objections, the Bondholders reserve all of their rights to raise any objections they may have at the Disclosure Statement hearing. Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) VICTORIA CAVENDISH: Joint Liquidators Take Over Operations ---------------------------------------------------------- Colin Ian Vickers and Christopher David Stevens of Vantis Business Recovery Services were appointed joint liquidators of Victoria Cavendish Investments Ltd. (formerly VCI Holdings Ltd. and Bonusexpand Ltd.) and Victoria Cavendish Properties Ltd. (formerly Ignitron Ltd.) on Sept. 2, 2008, for the creditors' voluntary winding-up proceeding. The companies can be reached at: 1 Horsham Gates North Street Horsham England WEARSIDE MARBLE: Taps Liquidators from Tenon Recovery ----------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery were appointed joint liquidators of Wearside Marble & Granite Ltd. on Aug. 27, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Wearside Marble & Granite Ltd. c/o Tenon Recovery Tenon House Ferryboat Lane Sunderland Tyne and Wear SR5 3JN England * S&P Drops Ratings on Various European Leveraged Super Sr. Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services has lowered and kept on CreditWatch with negative implication its ratings on various spread-based leveraged super senior (LSS) notes issued by Chess II Ltd., Midgard CDO PLC, Omega Capital Investments PLC, and Saphir Finance PLC. At the same time, S&P placed its ratings on Claris Ltd. series 64/2006, Eirles Two Ltd. series 337, and the class B7E-1 notes of Omega Capital Investments PLC series 12 on CreditWatch negative. The rating actions follow a significant widening in credit default swap spreads for the underlying reference obligors over recent weeks. For spread-based LSS transactions, this has led to an increased likelihood that a breach of the portfolio spread trigger might occur. Furthermore, some of the transactions affected have suffered defaults in the underlying reference portfolio. Consequently the note ratings have been lowered and remain on CreditWatch negative or are being placed on CreditWatch negative. LSS transactions reference both credit and market-value risks associated with the underlying portfolio. These transactions have a market-value trigger based on the weighted-average portfolio spread and portfolio losses at a given point in time. If breached, this would lead to an unwind event. S&P assesses the likelihood of breaching the attachment point (credit risk) as well as the probability of breaching a specific spread trigger (market value risk) when assigning a rating. Ratings Lowered And Remaining On CreditWatch Negative: Chess II Ltd.: US$10 million secured leveraged super senior credit-linked floating-rate notes series 10 Class Ratings To Rating From ----- ---------- ----------- A BB/Watch Neg BBB-/Watch Neg EUR5 million secured leveraged super senior credit-linked notes series 11 BB/Watch Neg BBB-/Watch Neg EUR5 million secured leveraged super senior credit-linked notes series 12 BB/Watch Neg BBB-/Watch Neg EUR5 million secured leveraged super senior credit-linked notes series 13 BB/Watch Neg BBB-/Watch Neg EUR5 million secured leveraged super senior credit-linked notes series 14 BB/Watch Neg BBB-/Watch Neg EUR3 million secured leveraged super senior credit-linked notes series 15 BB/Watch Neg BBB-/Watch Neg EUR10 million secured leveraged super senior credit-linked notes series 16 BB/Watch Neg BBB-/Watch Neg EUR12 million secured leveraged super senior credit-linked notes series 17 BB/Watch Neg BBB-/Watch Neg EUR8 million secured leveraged super senior credit-linked notes series 18 BB/Watch Neg BBB-/Watch Neg EUR30 million secured leveraged super senior credit-linked notes series 19 BB/Watch Neg BBB-/Watch Neg EUR30 million secured leveraged super senior credit-linked notes series 20 BB/Watch Neg BBB-/Watch Neg EUR10 million secured leveraged super senior credit-linked fixed-rate notes series 21 BB/Watch Neg BBB-/Watch Neg EUR20 million secured leveraged super senior credit-linked fixed-rate notes series 22 BB/Watch Neg BBB-/Watch Neg Midgard CDO PLC: EUR15 million Embla fixed-rate leveraged super senior credit linked notes series 2005-14 CCC/Watch Neg A/Watch Neg Omega Capital Investments PLC: EUR100 million secured floating-rate notes (Highway series 1) series 12 C7E-1 BB/Watch Neg AAA/Watch Neg C7E-2 BB/Watch Neg AAA/Watch Neg Saphir Finance PLC: EUR20 million long/short leveraged super senior tranche notes series 2006-1 BB/Watch Neg BBB/Watch Neg Ratings Placed On CrediWatch With Negative Implications: Claris Ltd.: EUR50 million leveraged floating-rate credit-linked notes series 64/2006 AAA/Watch Neg AAA Eirles Two Ltd. EUR15 million variable-rate LSS Secured credit-linked notes series 337 BB+/Watch Neg BB+ Omega Capital Investments PLC: EUR100 million secured floating-rate notes (Highway series 1) series 12 B7E-1 AAA/Watch Neg AAA * European Construction Biz Diversifies to Cope Crunch, S&P Says ---------------------------------------------------------------- Despite cooling property markets and tighter lending conditions, some sectors of the European construction industry are holding up and could help companies counter the industry downturn, says Standard & Poor's Ratings Services in the "Industry Report Card: European Construction Firms Diversify To Manage Cooling Property Markets And Tighter Lending," published on RatingsDirect. "Civil engineering activity should remain solid given the enormous pent-up demand for infrastructure across the continent," said S&P's credit analyst Izabela Listowska. Second, the still-buoyant demand for construction assets in developing markets such as Eastern Europe, Russia, and the Middle East, will continue benefiting European builders present in these regions. Furthermore, earnings contributions from activities beyond traditional construction, such as concessions, utilities, environmental services, should continue to provide some credit support. "In general, broad business diversity is an important factor in limiting exposure to industry risks and stabilizing overall operating performance and cash flow generation," said Ms. Listowska. "Consequently, the large and well-diversified construction groups, in particular, should be better placed than homebuilders to manage the industry's cyclical downturn. These include Austria-based Strabag SE (BBB-/Stable/--) and Germany's Bauer AG (BB+/Positive/--). Cooling housing markets, softening GDP, and tighter lending terms will depress European construction activity and investment over the next few quarters, the report says. After the boom of the past few years, the Western European homebuilding sector, which accounts for a sizable share of the total European construction output, is now facing a sharp correction that will weigh on the overall construction industry's statistics and outlook. Over the medium term, nonresidential markets, which generally lag some way behind economic cycles, are also likely to start feeling the impact of overall economic weakening and falling pricing power, although the length and magnitude of the slowdown is yet uncertain. * Fitch Weighs Latent Rating Impact of Lehman's Bankruptcy on CDOs ------------------------------------------------------------------ Fitch Ratings is currently assessing the potential rating impact of the bankruptcy of Lehman Brothers Holdings Inc. on synthetic collateralized debt obligations that it rates. Following LBHI's declaration of bankruptcy on 15 September Fitch downgraded the Issuer Default Rating and debt ratings of LBHI and its parent, Lehman Brothers Inc., along with other subsidiaries. These downgrades may adversely impact the ratings of synthetic CDOs whose credit quality is linked in some way to that of Lehman- related entities. As a result, Fitch has placed 23 tranches of CDO transactions on Ratings Watch Negative. Lehman acted as CDS swap counterparty in 27 Fitch-rated public synthetic CDOs (and 35 private CDOs); 12 (17 private) in Europe; 15 (15 private) in Asia and three private in the U.S. In many of these transactions, Lehman Brothers Special Financing Inc. acted as the buyer of credit protection from the CDO as CDS swap counterparty, and LBIH acted as a guarantor or credit support provider. The impact on CDO note ratings where a Lehman entity acts as swap counterparty will depend upon many factors, including whether the swap may be transferred to another counterparty, whether the CDO transaction faces an automatic unwind following the Lehman bankruptcy, and the extent to which noteholders may be subject to market value risk of eligible securities in the event of early termination of the transaction. Should the swap counterparty, guarantor, or credit support role not be taken over by another adequately rated institution, Fitch expects early termination events to be triggered, if not immediately, then within a 30 day timescale. If an early termination is triggered where the swap counterparty is the defaulting party, the eligible securities would be either liquidated and used to repay the CDO notes before any swap termination payment is potentially due to LBHI, or would be delivered to the noteholders. In these instances, the CDO noteholders' risk profile may shift from the portfolio of reference entities to either the liquidation value or to the ongoing credit and market risk of the eligible securities. In the liquidation scenario, the CDO noteholders will either be paid in full from proceeds of the eligible securities, or will incur a shortfall if the proceeds are less than the outstanding amount of the notes, plus any accrued and unpaid interest. In the three private US transactions, collateral-posting arrangements were in place to cover any difference between the market value of the eligible securities and the outstanding balance of the notes, should early termination occur. In such cases, the loss to noteholders would be expected to be limited. For the remaining 27 (32 private) transactions, collateral-posting arrangements were documented to come into force only following the swap counterparty's, guarantor's, or credit support provider's Short-term rating being downgraded below 'F1'. Since it is not expected that LBHI will meet its collateral-posting obligations, should early termination occur, the noteholders would be subject to market value risk on the eligible collateral, and the noteholders may lose some portion of their investment, depending on the current market value of the eligible securities. As a result, Fitch expects that an early termination may result in the downgrade of the notes to the 'CCC' category or below despite the fact that recoveries may be good to high in many cases. As a result, Fitch has placed the following 23 tranches on RWN (and is maintaining 11 on RWN). Europe Jupiter Quartz Finance Plc Series 2004-1 -- Class A (ISIN XS0193411864): 'AA+'; remain on RWN -- Class B (ISIN XS0193412169): 'AA'; remain on RWN Jupiter Quartz Finance Plc Series 2004-2 -- Class A (ISIN XS0199578450): 'AA-'; remain on RWN -- Class B (ISIN XS0199578708): 'A+'; remain on RWN Phoenix 2002-1 -- Class A (CUSIP 71915QAA5): 'AA+'; on RWN -- Class B (CUSIP 71915QAB3): 'AA'; remain on RWN -- Class C (CUSIP 71915QAC1): 'BB-'; remain on RWN -- Angiolieri Finance plc Series 2002-1 notes due 2012: 'AAA'; on RWN -- Boccaccio Finance plc Series 2002-1 notes due 2012: 'AAA'; on RWN -- Dante Finance plc Series 2002-1 notes due 2012: 'AAA'; on RWN -- Petrarca Finance plc Series 2002-1 notes due 2012: 'AAA'; on RWN -- Programma Dinamico SpA notes due 2012: 'AAA'; on RWN Quartz Finance PLC Series 2003-1 Eldon Street -- Class A (ISIN XS0165686949): 'AAA'; remain on RWN -- Class B (ISIN XS0165396432): 'A+'; remain on RWN Quartz Finance PLC Series 2003-3 Upper Thames -- Class A (ISIN XS0173138867): 'AAA'; on RWN Quartz Finance PLC Series 2004-1 Upper Thames -- Class 2004-1 (ISIN XS0199047258): 'AAA'; on RWN Quartz Finance PLC Series 2005-1 (Kingsbury) -- Class A (ISIN XS0210163225): 'AA+'; remain on RWN -- Class B (ISIN XS0210163654): 'A+'; remain on RWN Asia -- Beryl Finance Limited Series 2005-14 (ISIN XS0236944418): 'AA'; remain on RWN -- Beryl Finance Limited Series 2006-10: 'B-'; on RWN -- Beryl Finance Limited Series 2006-11: 'B-'; on RWN -- Beryl Finance Limited Series 2006-12 (ISIN XS0272788927): 'B+'; on RWN -- Beryl Finance Limited Series 2007-1: 'B'; on RWN -- Beryl Finance Limited Series 2008-11 (ISIN XS0372554914): 'BB-'; on RWN -- Beryl Finance Limited Series 2008-12 (ISIN XS0372555135): 'BB'; on RWN -- Beryl Finance Limited Series 2008-13 (ISIN XS0372555218): 'BB+'; on RWN -- Beryl Finance Limited Series 2008-16 (ISIN XS0382664620): 'B-'; on RWN Zircon Finance Limited Series 2007-1 -- Class A (ISIN AU3FN0002085): 'B+'; on RWN -- Class B (ISIN AU3FN0002093): 'B-'; on RWN -- Zircon Finance Limited Series 2007-3 (ISIN AU3FN0002325): 'BB-'; on RWN Zircon Finance Limited Series 2007-9 -- Class A: 'BB-'; on RWN -- Class B: 'B-'; on RWN -- Zircon Finance Limited Series 2007-11: 'AAA'; on RWN -- Zircon Finance Limited Series 2007-12 (ISIN XS0307005032): 'B-'; on RWN -- Zircon Finance Limited Series 2007-13: 'B-'; on RWN In all cases, there is the risk that one or more interest payments may be missed during the period between now and either the replacement of Lehman as party to the transaction, or liquidation of the eligible securities. A missed interest payment would typically be classed as a technical default. Fitch will issue rating actions on synthetic CDOs exposed to Lehman entities following analysis of transaction-specific performance and features. Fitch: Implications of Lehman Bankruptcy on Global Synthetic CDOs * UK: ECB and Bank of England Inject Billions to Stabilize Markets ------------------------------------------------------------------ The European Central Bank disclosed last week that it had allotted EUR30 billion (US$42.04 billion) in one-day liquidity to counter financial turmoil in the wake of the crisis in the U.S. banking system, The Financial Times reports. The Bank of England, according to the report, said it would offer GBP5 billion of extra reserves to help stabilize conditions in the sterling money markets. According to FT, the Bank of England is reportedly seeking to stem the fall-out from Lehman Brothers' slide into bankruptcy. The report writes that many U.K. banks will be short of cash over their financial exposure to Lehman Brothers. The money is not lost, but the central bank may have to intervene until it becomes clearer how much can be recovered, the report says. The bank intends to auction GBP5 billion today, Sept. 22, 2008, through an exceptional fine tuning open market operation, FT relates. The loans matured Sept. 18, 2008. The bank said it received GBP24.1 billion in bids for its GBP5 billion injection. The allocation per bidder was 20.75%, the report adds. Like ECB, the Bank of England is "closely monitoring" market conditions and will "ensure the overnight rate is close to Bank Rate," FT reports. ECB Wants to Curb Abuse of Its Generosity The ECB said it had alloted the money at a marginal rate of 4.30% and an average rate of 4.39%, FT relates. Based on the report, all together 51 banks bid EUR90.27 billion. ECB earlier said that it "continues to closely monitor the conditions in the Euro area money market," FT writes. Amid the eased lending conditions provided by the U.S. Federal Reserve, the ECB restricted the use of some riskier assets earlier this month to curb the abuse of its generosity, the report notes. To combat inflation, the ECB keeps a very clear distinction between its liquidity-boosting operations in financial markets and its main interest rate policy, FT says. "With rising risks of feed-back effects from the financial crisis to the real economy, that separation could become increasingly untenable. While the ECB will obviously be reluctant to consider rate cuts, its past behavior does not necessarily rule that out," FT quotes Jacques Cailloux, economist at Royal Bank of Scotland, as saying. Bundesbank, Bafin, Germany's financial regulator, and the finance ministry, issued a joint statement describing German financial groups' exposure to Lehman as manageable. BaFin, which listed EUR14.3 billlion in debts to institutional clients, placed a moratorium on Lehman's German unit, preventing asset sales or payments, FT says. About European Central Bank The European Central Bank (ECB) -- http://www.ecb.int/-- is one of the world's most important central banks, responsible for monetary policy covering the 15 member countries of the Eurozone. It was established by the European Union (EU) in 1998 with its headquarters in Frankfurt, Germany. About Bank of England The Bank of England (formally the Governor and Company of the Bank of England) -- http://www.bankofengland.co.uk -- is a state-owned institution[1] and the central bank of the United Kingdom. The Bank's Monetary Policy Committee is responsible for managing the monetary policy of the country. It was established in 1694 to act as the English Government's banker, and to this day it still acts as the banker for the UK Government. The Bank has a monopoly[2] on the issue of banknotes in England and Wales. The Bank's headquarters has been located in London's main financial district, the City of London, on Threadneedle Street, since 1734. It is sometimes known as The Old Lady of Threadneedle Street or just The Old Lady. The current Governor of the Bank of England is Mervyn King, who took over on 30 June 2003 from Sir Edward George. * BOND PRICING: For the Week Sept. 15 to Sept. 19, 2008 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Republic of Austria 1.000 06/22/22 EUR 68.71 5.000 10/24/35 EUR 64.41 FRANCE ------ Alcatel S.A. 4.750 01/01/11 EUR 14.90 Altran Technologies S.A. 3.750 01/01/09 EUR 12.74 Calyon 6.000 06/18/47 EUR 41.15 CAP Gemini S.A. 2.500 01/01/10 EUR 50.32 1.000 01/01/12 EUR 40.89 Club Mediterranee S.A. 3.000 11/01/08 EUR 67.98 4.380 11/01/10 EUR 45.45 CMA CGM 5.500 05/16/12 EUR 91.99 Credit Agricole 4.500 02/22/26 EUR 74.37 Essilor Intl 1.500 07/02/10 EUR 69.90 Soc Air France 2.750 04/01/20 EUR 20.94 Wavecom S.A. 1.750 01/01/14 EUR 17.93 GERMANY ------- Allgemeine HypothekenBank Rheinboden 5.080 12/10/14 EUR 63.81 Deutsche Schifbk 4.200 01/23/09 EUR 99.67 IRELAND ------- Allied Irish Bks 5.630 11/29/30 GBP 69.98 5.250 09/10/25 GBP 64.72 Banesto Finance Plc 6.120 11/07/37 EUR 6.12 Depfa ACS Bank 0.500 03/03/25 CDN 49.27 0.250 07/08/33 CDN 29.22 UT2 Funding Plc 5.320 06/30/16 EUR 70.03 ITALY ----- CIR SPA 5.750 12/16/24 EUR 76.15 LUXEMBOURG ---------- Bank of Moscow 6.810 05/10/17 US$ 82.54 Beverage Pack 9.500 06/15/17 EUR 74.20 Del Monte Fin SA 6.630 05/24/06 EUR 45.45 NETHERLANDS ----------- ABN Amo Bank B.V. 6.000 03/16/35 EUR 65.06 Air Berlin Finance B.V. 1.500 04/11/27 EUR 28.40 ALB Finance BV 7.880 02/01/12 EUR 56.41 9.250 09/25/13 US$ 52.14 9.000 11/22/10 US$ 60.89 9.750 02/14/11 GBP 61.12 8.750 04/20/11 USD 70.13 Biopetrol Finance 4.000 02/21/12 EUR 47.50 BK Ned Gemeenten 0.500 06/27/18 CDN 69.05 0.500 02/24/25 CDN 49.31 Centercrdt Intl 8.630 01/30/14 US$ 90.16 Cirio Del Monte 7.750 03/14/05 EUR 16.95 DAF BV 6.750 06/15/10 EUR 2.85 EM.TV Finance B.V. 5.250 05/08/13 EUR 3.82 Turanalem Fin BV 8.000 03/24/14 US$ 68.67 8.500 02/10/15 USD 65.79 8.250 01/22/37 USD 64.37 7.750 04/25/13 USD 71.49 8.250 01/22/37 USD 59.48 6.250 09/27/11 EUR 72.94 SPAIN ----- Bancaja 4.380 02/14/17 EUR 72.66 SWITZERLAND ----------- Cytos Biotechnology 2.880 02/20/12 CHF 68.13 UNITED KINGDOM -------------- Allianc&Leic Bld 5.880 08/14/31 GBP 81.61 Anglian Water Finance Plc 2.400 04/20/35 GBP 50394 Aspire Defence 4.670 03/31/40 GBP 63.31 4.670 03/31/40 GBP 63.24 Bradford&Bin BLD 5.750 12/12/22 GBP 57.17 6.630 06/16/23 GBP 52.44 Brit Insurance 6.630 12/09/30 GBP 72.42 Britannia Building Society 5.880 03/28/33 GBP 66.36 5.750 12/02/24 GBP 72.42 Broadgate Finance 5.100 04/05/33 GBP 71.80 Cattles plc 7.130 07/05/17 GBP 71.47 Daily Mail & Gen 5.750 12/07/18 GBP 75.25 6.380 06/21/27 GBP 70.75 Derby Eealthcare 5.560 06/30/41 GBP 74.95 Enterprise Inns 6.380 09/26/31 GBP 70.24 Unique Pub Fin 6.460 03/30/32 GBP 69.93 ********* 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, Melanie Pador, Marie Therese V. 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 * * *