/raid1/www/Hosts/bankrupt/TCREUR_Public/080926.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
Friday, September 26, 2008, Vol. 9, No. 192
Headlines
A U S T R I A
BODENSYSTEME LIC: Claims Registration Period Ends October 10
DONYA LLC: Claims Registration Period Ends October 6
FORZA! LTD: Claims Registration Period Ends October 14
P.S.T.U. LLC: Claims Registration Period Ends October 14
TOMIDO BAU UND HOLZBAU: Claims Registration Period Ends Oct. 20
B E L G I U M
FEDERAL-MOGUL: Restructuring Plan Includes 4,000 Workforce Cut
F R A N C E
ALCATEL-LUCENT: Two Board Members Resign
DELPHI CORP: Access to GM Loans Illusory, Committee Says
DELPHI CORP: Government Balks at Release Provisions in GM Deal
DELPHI CORP: Wants Appaloosa's Motion to Strike Denied
DELPHI CORP: Will Not Pay Plan Investors
DELPHI CORP: Gets Permission to Halt Pension Contributions
GENERAL MOTORS: Mulls Sale of French Factory and Hummer Brand
G E R M A N Y
AUFBAU VERLAGSGRUPPE: Creditors Meeting Slated for October 1
AVR APPARTEMENTVERMIETUNG: Claims Registration Ends October 1
DEUTSCHE IMMOBILIEN: Claims Registration Period Ends Oct. 2
DIGILAB BIOVISION: Claims Registration Period Ends Oct. 2
HCP HEALTH: Claims Registration Period Ends October 1
HINZE MASSIVHAUS: Creditors' Meeting Slated for December 5
HMS DRUCKHAUS: Claims Registration Period Ends October 1
IGA-OPTIC GROLL: Claims Registration Period Ends October 1
IKB DEUTSCHE: KfW To Privately Sell Stake in Company
INJEKTIONSTECHNIK NORD: Claims Registration Period Ends Oct. 1
KFW BANKENGRUPPE: Suspends Two Directors Over Lehman Incident
KRAFT WOHNUNGSBAU: Creditors' Meeting Slated for October 6
KRIS CO-PAC: Claims Registration Period Ends October 4
MAMMA MIA: Creditors' Meeting Slated for October 6
MTV MALEREIBETRIEB: Creditors' Meeting Slated for October 6
NEXKOM GMBH: Claims Registration Period Ends Oct. 1
PLUS GMBH: Claims Registration Period Ends Oct. 1
SANITATSHAUS ORTHOSAN: Claims Registration Period Ends Oct. 1
PROSIEBENSAT.1 GROUP: To Fall Short of 2008 Earnings Target
VTS VERKEHRSTECHNIK: Claims Registration Period Ends October 2
WESTLB AG: Appoints New Corporate & Structured Finance Unit Head
* GERMANY: Continental Takeover Stirs Need to Curb Cash Swaps
I T A L Y
ALITALIA SPA: Investor Group CAI May Revive Bid for Airline
PARMALAT SPA: Hikes Share Capital by EUR117,199
K A Z A K H S T A N
AQUA TRADE: Creditors Must File Claims by November 12
JAS & TA: Claims Deadline Slated for November 7
KAZ-TRADE-2003 LLP: Claims Filing Period Ends November 7
NAURYZ-2007 LLP: Creditors' Claims Due on November 12
TRANS AIR: Claims Filing Period Ends November 11
STROY CONSTRUKTSIYA-2004: Creditors' Claims Due on November 11
W-STROY-SERVICE LLP: Claims Registration Ends November 11
K Y R G Y Z S T A N
NOK OJSC: Creditors Must File Claims by November 3
N E T H E R L A N D S
X5 RETAIL: Fulfills Karusel Bonds Obligations Under Put Option
X5 RETAIL: Unveils New Senior Management Appointments
* S&P Downgrades Ratings on Various European Leveraged Super CDOs
P O L A N D
VIVID.PL S.A.: Files Bankruptcy Petition in Warsaw Court
R U S S I A
ABAKAN-LES-TORG: Creditors Must File Claims by October 11
AGRO-GAS-DOR-BUSINESS: Creditors Must File Claims by October 11
NEFT-STROY-SERVICE: Creditor Must File Claims by November 11
OSTROGOZHSKIY CANNERY: Creditor Must File Claims by November 11
PROMTEKS UNION: Creditor Must File Claims by October 11
SEVERSTAL OAO: Inks US$1.2 Billion Syndicated Loan Facility
SHAKHT-SNAB-SERVICE: Creditor Must File Claims by October 11
SHUGUROVSKIY PETROLEUM: Creditors Must File Claims by October 11
SUE KIRISHSKIY: Creditors Must File Claims by October 11
TAKKU OIL: Karelia Bankruptcy Hearing Set December 16
VTB GROUP: Net Profit Up 34.7% to US$679 Mln for 2008 First Half
* RUSSIA: Offers Banks with Rbs500 Billion Additional Liquidity
S P A I N
MARTINSA FADESA: To Sell Hungarian and Eastern European Projects
S W E D E N
FORD MOTOR: Reviewing Lehman Bankruptcy's Impact on Loan
S W I T Z E R L A N D
AMATCO ENERGY: Creditors Must File Proofs of Claim by Oct. 10
CAT ATTACK: Proofs of Claim Filing Deadline is Oct. 10
GENERAL MOTORS: US$3.5BB Facility Draw Down Won't Affect S&P Rtngs
JITLADA-THAI LLC: Creditors Have Until Oct. 10 to File Claims
OBERMATT-IMMOBILIEN JSC: Proofs of Claim Due by October 8
ORIGO JSC: Deadline to File Proofs of Claim Set Oct. 8
P. ZBINDEN JSC: Proofs of Claim Filing Deadline is Oct. 8
ROBERTO RIVA: Creditors Have Until Oct. 9 to File Claims
SWITRASUD JSC: Deadline to File Proofs of Claim Set Oct. 10
TREYER OPTIK: Oct. 9 Set as Deadline to File Proofs of Claim
VS ECONOMATO: Oct. 10 Set as Deadline to File Proofs of Claim
T U R K E Y
* Turkish Banks To Withstand Environmental Challenges, S&P Reports
U K R A I N E
ALEXANDROVSKOYE 2000: Creditors Must File Claims by October 1
ENERGYRESOURCE LLC: Creditors Must File Claims by October 1
GENIUS LLC: Creditors Must File Claims by October 1
INTEK LLC: Creditors Must File Claims by October 1
INTEL-INVET TVK: Creditors Must File Claims by October 1
LIANDA LLC: Creditors Must File Claims by October 1
MACHINEKIT-TRADE GROUP: Creditors Must File Claims by October 1
MARKTRANS LLC: Creditors Must File Claims by October 1
MINERAL WATER: Creditors Must File Claims by October 1
QUATRO-CENTER LLC: Creditors Must File Claims by October 1
U N I T E D K I N G D O M
AIR COOL: Joint Liquidators Take Over Operations
BEANSCENE: Comes Out of Administration with New Owners
BRITISH ENERGY: EDF Unveils Terms of GBP12.5 Billion Cash Offer
BRITISH ENERGY: Centrica in Talks to Acquire 25% Stake
BRITISH ENERGY: UK Gov't Welcomes EDF's GBP12.5BB Takeover Offer
BRITISH ENERGY: Fitch Puts 'BB+' LT ID Rating Under Watch Positive
BROKER 4 BROKER: Brings in Liquidators from Mazars
CAR CARE: Goes Into Liquidation
DIOMED HOLDINGS: Plan Goes to Creditors for Confirmation Vote
DUNEDIN: Industrious Commercial Portfolio Goes Into Receivership
EQUUS LTD: Calls in Liquidators from Tenon Recovery
EUROSAIL-UK: Fitch 'BB'-Rated Class E1C Notes on Negative Watch
EUROSAIL-UK: Fitch Puts Neg. Watch After Cuts on LBHI's Ratings
I D CONSTRUCTION: Taps Liquidators from PKF
MARIE ANN: Appoints Liquidators from Mazars
MFI RETAIL: Could Go Into Administration; Seeks Buyer
SCOTIA LINEN: Tenon Sets Bids Closing Date September 29
SEA CONTAINERS: Court Approves 2nd Amended Disclosure Statement
SEA CONTAINERS: Court Approves Voting and Solicitation Procedures
SEA CONTAINERS: Court Approves Settlement Pact with Panel, et al.
SEA CONTAINERS: Seeks to Waive US$3,000,000 Intercompany Claims
VEDANTA RESOURCES: Not To Pursue Proposed Group Restructuring
* UK Unemployment Rises for Three Months to July 2008, ONS Says
* Auto Sector to Face Profound Shits and Challenges, PwC Says
* U.S. Federal Reserve Grants Swap Lines to Other Central Banks
* BOOK REVIEW: The Chief Executives
*********
=============
A U S T R I A
=============
BODENSYSTEME LIC: Claims Registration Period Ends October 10
------------------------------------------------------------
Creditors owed money by LLC Interior Completion Bodensysteme LIC
have until Oct. 10, 2008, to file written proofs of claim to the
court-appointed estate administrator:
Mag. Stefan Kohlfuerst
Marburger Kai 47
8010 Graz
Tel: 0316/815454
Fax: 0316/815454-22
E-mail: kohlfuerst@hofstaetter.co.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Oct. 16, 2008, for the
examination of claims at:
The Graz Land Court
Room 222
Second Floor
Graz
Austria
Headquartered in Graz-Liebenau, Austria, the Debtor declared
bankruptcy on Aug. 26, 2008, (Bankr. Case No. 26 S 100/08p).
DONYA LLC: Claims Registration Period Ends October 6
----------------------------------------------------
Creditors owed money by LLC Donya have until Oct. 6, 2008, to file
written proofs of claim to the court-appointed estate
administrator:
Dr. Edmund Roehlich
Am Heumarkt 9/I/11
1030 Vienna
Austria
Tel: 713 46 51
Fax: 713 84 35
E-mail: proksch@eurojuris.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Nov. 20, 2008, for the
examination of claims at:
The Trade Court of Vienna
Room 1703
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 27, 2008, (Bankr. Case No. 5 S 88/08p).
FORZA! LTD: Claims Registration Period Ends October 14
------------------------------------------------------
Creditors owed money by Forza! Ltd. & Co Kg have until Oct. 14,
2008, to file written proofs of claim to the court-appointed
estate administrator:
Mag. Dr. Eberhard Wallentin
Porzellangasse 4-6
1090 Vienna
Austria
Tel: 31374-0
Fax: 3137480
E-mail: office@ksw.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Oct. 28, 2008, for the
examination of claims at:
The Trade Court of Vienna
Room 1606
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 27, 2008, (Bankr. Case No. 4 S 122/08f).
P.S.T.U. LLC: Claims Registration Period Ends October 14
--------------------------------------------------------
Creditors owed money by LLC P.S.T.U. have until Oct. 14, 2008, to
file written proofs of claim to the court-appointed estate
administrator:
Dr. Kurt Bernegger
Jacquingasse 21
1030 Vienna
Austria
Tel: 799 15 80/0
Fax: 796 59 14
E-mail: kanzlei@bernegger-wt.com
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Oct. 28, 2008, for the
examination of claims at:
The Trade Court of Vienna
Room 1606
Vienna
Austria
Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 26, 2008, (Bankr. Case No. 4 S 121/08h).
TOMIDO BAU UND HOLZBAU: Claims Registration Period Ends Oct. 20
---------------------------------------------------------------
Creditors owed money by LLC Tomido Bau und Holzbau have until
Oct. 20, 2008, to file written proofs of claim to the court-
appointed estate administrator:
Mag. Alexandra Thomasberger
Roemerstrasse 48
4800 Attnang-Puchheim
Austria
Tel: 07674/63320
Fax: 07674/63320-13
E-mail: attnang@vb-lex.at
Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on Oct. 30, 2008, for the
examination of claims at:
The Land Court of Wels
Hall 101
Wels
Austria
Headquartered in Attnang–Puchheim, Austria, the Debtor declared
bankruptcy on Aug. 26, 2008, (Bankr. Case No. 20 S 102/08p).
=============
B E L G I U M
=============
FEDERAL-MOGUL: Restructuring Plan Includes 4,000 Workforce Cut
--------------------------------------------------------------
Federal-Mogul Corporation disclosed a restructuring plan designed
to improve operating performance and respond to challenging
conditions in the worldwide automotive market. The plan, when
combined with other workforce adjustments, is expected to reduce
the company's worldwide workforce by approximately 4,000
positions or 8%. The planned actions are expected to occur as
a result of several initiatives designed to streamline business
processes, consolidate or close selected locations, and reduce
general and administrative staffing.
The company is not disclosing the specific sites at this time,
pending further evaluation and consultations with appropriate
parties. The restructuring initiatives will begin during
September 2008 and continue into 2009 with several phases of
implementation.
Preliminary cost estimates of the restructuring program are
US$60 million to US$80 million through the end of 2009.
"We are taking actions in response to a downturn in regional
markets and global industry outlook," Jose Maria Alapont, Federal-
Mogul President and CEO, said. "We recognize this is a difficult
decision, yet these measures are required to prepare the company
for the increasingly challenging automotive environment. The
efficiencies gained as a result of these initiatives will
strengthen Federal-Mogul's competitive position and help assure
the company's future as we continue to implement our sustainable
global profitable growth strategy,"
About Federal-Mogul
Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a worlwide supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Belgium, Russia, Mexico,
Malaysia, Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed US$10.15 billion in assets and US$8.86 billion in
liabilities.
Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at
Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein
Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer,
Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the
Official Committee of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan. On July 28, 2004, the
District Court approved the Disclosure Statement. The estimation
hearing began on June 14, 2005. The Debtors submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007. The Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14. Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.
===========
F R A N C E
===========
ALCATEL-LUCENT: Two Board Members Resign
----------------------------------------
Ed Hagenlocker and Jean-Pierre Halbron have resigned from the
Board of Directors of Alcatel-Lucent S.A.
Mr. Hagenlocker's resignation is effective immediately.
Mr. Halbron's resignation will be effective immediately after the
close of the Board meeting, which is convened to approve the 2008
third quarter results.
Their departure is in line with the communication made on July 29,
2008 concerning the Board's reorganization.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe on Aug. 4, 2008, Standard & Poor's
Ratings Services has revised to negative from stable its outlook
on France-based telecommunications equipment supplier Alcatel
Lucent. At the same time, the 'BB-/B' long- and short-term
corporate credit ratings on Alcatel Lucent, the 'BB-/B-1' long
and short-term corporate credit ratings on subsidiary Lucent
Technologies Inc., and all issue ratings on both companies were
affirmed.
Alcatel-Lucent continues to carry Ba3 Corporate Family and
Senior Debt ratings, Not-Prime for short term debt, as well as
B2 ratings for subordinated debt with negative outlook from
Moody's Investors Service. The ratings were affirmed in
April 2008.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt still carry Standard & Poor's Ratings Services'
BB rating. Its Short-Term Corporate Credit rating stands at B.
DELPHI CORP: Access to GM Loans Illusory, Committee Says
--------------------------------------------------------
The Official Committee of Unsecured Creditors in Delphi Corp. and
its debtor-affiliates' cases says General Motors Corp. used its
overwhelming leverage against Delphi to force them to depress the
prices they charged to GM, to such a degree that the Debtors have
been losing billions of dollars per year on their sales to GM in
North America. The Panel asserts that the Debtors must create and
implement a strategy that leads to viable operations in North
America, and not simply continue running those operations at
significant losses to benefit GM.
The Creditors Committee thus asks the United States Bankruptcy
Court for the Southern District of New York to deny amendment to
Delphi Corp.'s liquidity arrangement with GM.
On April 30, 2008, the Court authorized the Debtors to enter into
an amendment and restatement of their DIP credit agreement, and
authorizing them to receive advances of up to US$650,000,000 from
GM pursuant to the terms of a liquidity support agreement between
Delphi and GM. The agreement was structured to provide a means by
which GM would advance funds to the Debtors representing the
amounts by which GM had underpaid for parts from the Debtors. GM
would already have paid those amounts to the Debtors had the
Chapter 11 Plan which was confirmed on Jan. 25, 2008, become
effective.
On Aug. 6, the Debtors asked the Court for the approval of an
amendment to the original Delphi/GM amendment, where GM would
increase the aggregate principal amount available by a maximum of
US$300,000,000.
On Sept. 12, the Debtors presented to the Court the Amended
Global Services Agreement and the Amended Master Restructuring
Agreement, which would increase its support for Delphi to
US$10,600,000,000, and help the auto-supplier exit bankruptcy
protection.
Unlike the Original Delphi/GM Agreement, the amendment providing
for the additional US$300,000,000 loan contains stringent
conditions precedent to the Debtors' ability to receive any of
the additional Tranche B Loans, and it is possible that these
additional loans may never become available to the Debtors,
states Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New
York.
"So many strings are attached new loans the Debtors would receive
under the amended liquidity arrangement with GM, that it would be
fair to say that the Debtors' access to these funds is illusory.
Mr. Rosenberg notes that in exchange for the illusory loans, the
Debtors would give away control over the chapter 11 plan process
to GM. In addition, GM, he points out, would not be obligated to
advance any new loans if the Court stops the Debtors from
repatriating funds to support the Debtors' North American
operations that are being run primarily for GM's benefit.
Mr. Rosenberg asserts that the use or disposition of estate
assets should be scrutinized in the present case because GM is an
"insider". He notes that since its spin-off of Delphi, GM:
(a) has received information from the Debtors that was not
available to other creditors, shareholders and the general
public;
(b) has had substantial influence over decisions made by the
Debtors;
(c) had special access to the Debtors' premises and personnel;
and
(d) was either the sole source or one of few sources of
financial support for the Debtors (particularly recently).
Mr. Rosenberg relates that the availability of the Tranche B
Loans terminates if the Debtors fail to file a chapter 11 plan
and disclosure statement in form and substance reasonably
satisfactory to GM by October 31, 2008. This condition is more
stringent than the terms of the proposed amended GSA (which sets
forth plan requirements, but does not require the Debtors to file
a plan in form and substance reasonably satisfactory to GM and
also does not set forth a deadline of October 31).
To preserve its ability to monitor the Debtors and take action if
necessary, the Committee has retained the right to object to
future repatriations of funds by the Debtors. However, if the
Committee prevails in such an objection, GM would be able to stop
making additional Tranche B Loans under the Amended Delphi/GM
Agreement, Mr. Rosenberg notes. "This is but another example of
GM taking control from the Debtors and the Committee."
Mr. Rosenberg notes the Debtors have agreed to new obligations
that favor of GM:
-- the Amended Delphi/GM Agreement provides that if the DIP
Facility is amended, modified or replaced such that the
interest rate of the highest-priced DIP loan tranche is
higher than the interest rate applicable to the existing
Tranche A Loans and the Tranche B Loans, then the interest
rate on all GM advances (including the existing Tranche A
Loans) would automatically increase to the rate in effect
for the highest-priced DIP tranche.
-- While the interest on the GM advances will be canceled if
certain events occur, there can be no guarantee that those
events actually will occur. Indeed, if the GSA/MRA Motion
is granted those events, such as confirmation of an
amended plan, may never occur and Delphi will be obligated
to repay GM advances in cash, with interest as an
administrative expense claim.
-- The Debtors have agreed to pay GM's and its counsel's fees
and expenses in connection with the preparation and
delivery of the Amended Delphi/GM Agreement.
Highland/CR Withdraw Examiner Request,
Trade Holders Joined Calls for Examiner
The Committee of Delphi Trade Holders joined in the request of CR
Intrinsic Investors, LLC, and Highland Capital Management, L.P.,
for the Court to appoint an examiner.
CR and Highland, which holds notes issued by the Debtors, asked
the Court to order the appointment of an examiner to ensure that
the interests of all creditor bodies are adequately protected and
see to it that the subsidiaries that own the profitable global
operations are not raided to prop up the corporations that own
the "money-losing and cash-guzzling" North American operations.
CR Intrinsic and Highland Capital Management, however, have
agreed to withdraw without prejudice their motion for appointment
of an examiner. They will continue to prosecute their objections
to the Debtors' motion seeking approval of the GM Arrangement
Amendment.
The Debtors ask the Court to deny CR/Highland's motion to appoint
an examiner, saying that it is not authorized by the Bankruptcy
Code, and alternatively, because it was brought in bad faith and
because the Noteholders have waived their right to seek the
appointment of an examiner based on their prior conduct in these
Chapter 11 cases.
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: Government Balks at Release Provisions in GM Deal
--------------------------------------------------------------
The United States of America objects to certain of the release
provisions in Delphi Corporation's new agreement with General
Motors Corporation.
The Debtors have presented to the United States Bankruptcy Court
for the Southern District of New York the Amended Global Services
Agreement and the Amended Master Restructuring Agreement, which
would increase its support for Delphi to US$10,600,000,000, and
help the auto-supplier exit bankruptcy protection.
The U.S. Government asserts that the language releasing the non-
debtors from any potential claims by the government should be
stricken, or in the alternative, the language which mirrors the
language added to the Court's confirmation order on Delphi's
Joint Plan of Reorganization on consent of all parties should be
added to the Amended Agreements and any order approving them.
Michael J. Garcia, the United States Attorney for the Southern
District of New York, tells the Court that the Amended Agreements
are objectionable to the extent that they seek to release non-
debtors from liability to the U.S. Government under any statute
for conduct in connection with the Debtors, the Chapter 11 case
or "Any Delphi Plan" -- particularly because new language in the
Amended Agreements can be read to foreclose the possibility of
inserting negotiated language like that put into the original
Confirmation Order into any eventual amended plan of
reorganization or confirmation order.
Mr. Garcia adds, even if the third-party releases were somehow
found to be acceptable with respect to ordinary creditors, they
are most certainly invalid as against the Government, especially
with reference to GM's environmental and tax liabilities.
Federal government agencies the U.S. Environmental Protection
Agency, the Internal Revenue Service, the Customs and Border
Protection, the Department of Health and Human Services, and the
Equal Employment Opportunity Commission have filed proofs of
claim in Delphi's case. The Department of Labor and the
Securities Exchange Commission have also filed claims.
* * *
The Debtors have filed the Amended and Restated Global Settlement
Agreement and the Restated Master Restructuring Agreement with
all the pertinent necessary exhibits. They have obtained the
Court's approval to file the documents under seal.
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: Wants Appaloosa's Motion to Strike Denied
------------------------------------------------------
Delphi Corp. and its debtor-affiliates ask the United States
Bankruptcy Court for the Southern District of New York to deny
Appaloosa Management LP's motion to re-argue the Court's Aug. 11
decision to deny dismissal of the US$2,550,000,000 adversary
complaints filed by Delphi Corporation. Delphi asserts that
Appaloosa has not demonstrated that the Court overlooked any
controlling decisions or factual matters, or presented new
arguments that would have changed the outcome.
The Debtors also oppose Appaloosa's motion to strike certain
allegations written by Delphi in its complaint, saying that those
statements go to the core of their claims against Appaloosa,
which claims the Court has sustained in denying the Motion to
Dismiss.
Edward A. Friedman, Esq., at Friedman Kaplan Seiler & Adelman
LLP, in New York, tells the Court that the Motion to Re-argue
does not come close to satisfying the exacting standards that
govern reconsideration motions, in fact, he says, Appaloosa's
motion to dismiss prefaced its entire legal argument with
reference to the general notice pleading standards, citing Rule
9(b) of the Federal Rules of Civil Procedure only in connection
with Delphi's fraud claim.
Regarding Delphi's opposition to the Motion to Strike,
Mr. Friedman notes that in deciding whether to grant a Civil Rule
12(f) motion to strike, it is settled law that the motion should
be denied, unless it can be shown that no evidence in support of
the allegation would be admissible.
Mr. Friedman asserts that reconsideration is an extraordinary
remedy to be employed sparingly in the interest of finality and
conservation of scarce judicial resources. The standard for
granting the motion [to re-argue and strike] is strict, and
reconsideration will generally be denied unless Appaloosa can
point to controlling decisions or data that the court overlooked
- matters that might reasonably be expected to alter the
conclusion reached by the Court, Mr. Friedman maintains.
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: Will Not Pay Plan Investors
----------------------------------------
Delphi Corporation refutes the counterclaims of Appaloosa
Management L.P. and A-D Acquisition Holdings, LLC, and the other
defendants.
The Debtors ask the United States Bankruptcy Court for the
Southern District of New York to dismiss each of the counterclaims
filed by ADAH, UBS Securities LLC, Merrill Lynch, Pierce, Fenner
& Smith Incorporated, Goldman Sachs & Co., Pardus DPH Holding
LLC, Harbinger Del-Auto Investment Company. Ltd., and Harbinger
Capital Partners Master Fund I, Ltd. In addition, the Debtors
ask the Court to award judgment in their favor, including
attorneys' fees, costs and disbursement.
Edward A. Friedman, Esq., at Friedman Kaplan Seiler & Adelman
LLP, in New York, tells that the Plan Investors are not entitled
to any US$82,500,000 alternate transaction fee, nor are they
entitled to reimbursement for expenses incurred in connection
with the transaction.
Mr. Friedman adds that even if Delphi were obligated to reimburse
the Plan Investors for transaction expenses, the amount of the
payments requested by the Plan Investors after April 4, 2008, are
exceeded by the amount the Plan Investors owe to Delphi as a
consequence of their breaches of the December 10,2007 EPCA, and
other fraudulent, wrongful, and inequitable conduct.
Moreover, the counterclaims of ADAH and the other parties are
barred by the doctrine of unclean hands, and the doctrine of the
waiver of estoppel, Mr. Friedman contends.
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: Gets Permission to Halt Pension Contributions
----------------------------------------------------------
David McLaughlin at Dow Jones Newswires reports that the Hon.
Robert Drain U.S. Bankruptcy Court for the Southern District of
New York granted Delphi Corp. permission on Tuesday to freeze
contributions to pension plans for hourly and salaried workers,
despite an objection by the Committee of Unsecured Creditors.
Dow Jones relates that Delphi will freeze the pension plan for
salaried workers on Sept. 30,2008. Delphi, says Dow Jones, will
freeze the pension plan for hourly workers as soon as an agreement
can be reached with labor unions.
Delphi said that it will save US$4 million per quarter by freezing
the pension plan for hourly workers and US$26 million per quarter
by freezing the plan for salaried workers, Dow Jones states.
Christopher Scinta at Bloomberg News reports that court documents
indicate that each month the hourly pension plan costs Delphi
about US$1 million.
Delphi will provide workers with replacement plans based on
defined contributions by the company, Dow Jones says.
According to Dow Jones, Robert Rosenberg, an attorney for the
creditors committee, said that the plan for top executives should
be approved as part of Delphi's bankruptcy plan. "Of all the
times to lock in a new program given what's going on in the auto
industry and the capital markets with no knowledge of what reality
is going to look like tomorrow let alone in a year, the timing is
just not appropriate," Dow Jones quoted Mr. Rosenberg as saying.
"It would be patently unreasonable" to create replacement plans
for everyone except 460 top executives, Bloomberg says, citing
Delphi attorney John Butler Jr.
Delphi will also ask the Court to shift US$3.4 billion in pension
liabilities to General Motors Corp., Dow Jones says. Bloomberg
relates that the creditors committee is also opposing revised
agreements that increase the financial contributions GM will make
to Delphi as part of its reorganization to US$10.6 billion from
US$6 billion. Attorneys from Latham & Watkins representing the
creditors said in a court filing that Delphi will "give away
control over the Chapter 11 plan process to GM" in exchange for
financing.
Bloomberg reports that the Court must approve the changes by the
end of September if GM is to take on US$3.4 billion of Delphi's
pension liabilities to block the federal Pension Benefit Guaranty
Corp. from putting a lien on Delphi's foreign assets.
The Court will hold a hearing amending the GM agreements until
Sept. 25, Bloomberg states.
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 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)
GENERAL MOTORS: Mulls Sale of French Factory and Hummer Brand
-------------------------------------------------------------
General Motors Corp. is planning to raise US$2 billion to US$4
billion in cash through sale of its Strasbourg, France,
manufacturing operation and its Hummer truck brand, various
reports say. The company is also reviewing other assets
for sale in the fourth quarter.
Amid mounting losses and declining U.S. sales, GM said in July it
will cut US$10 billion in costs and raise another US$5 billion
through asset sales and borrowing through the end of next year.
As reported in the Troubled Company Reporter on Sept. 22, 2008,
the automaker said it will draw down the remaining US$3.5 billion
of its US$4.5 billion secured revolving credit facility to
maintain a high level of financial flexibility for its ongoing
restructuring. GM also completed a US$322 million debt to equity
exchange.
"Accessing the funds available to us is a prudent liquidity
measure. Drawing on the revolver now improves our liquidity
position at a time when the capital markets have become more
challenging," said GM Treasurer Walter Borst.
Proceeds from the draw would also be available to be used to
retire US$750 million of debt maturities coming due in October,
and to pay Delphi Corporation in excess of US$1.2 billion as part
of its reorganization efforts, assuming court approval of the
revised agreements between GM and Delphi that were filed with the
court on Sept. 12. The US$4.5 billion secured revolving credit
facility was put in place in July 2006 with a consortium of banks
and provides liquidity that GM can draw on
from time to time to fund working capital and other needs.
John D. Stoll at The Wall Street Journal and Kathy Shwiff at Dow
Jones Newswires relate that GM already used about US$1 billion
from the line of credit early this year.
GM's decision, says WSJ, indicates concern about the effect tight
credit markets are having on the firm's cash cushion. The
company's executives said in June that drawing down the credit
line may send a negative signal to investors, WSJ relates. In the
past, the company avoided relying heavily on its credit lines, as
it enjoyed a relatively solid liquidity position, WSJ states.
According to WSJ, GM's liquidity has been drained by dropping
sales in the U.S. and restructuring charges recorded in recent
years.
As part of its capital market activities, GM has completed a debt
to equity exchange which will improve GM's liquidity by reducing
both its debt and its interest costs. GM issued 28.3 million new
shares of its common stock in exchange for US$322 million
principal amount of its 1.5% Series D Senior Convertible
Debentures, which mature in June 2009.
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.
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.
=============
G E R M A N Y
=============
AUFBAU VERLAGSGRUPPE: Creditors Meeting Slated for October 1
------------------------------------------------------------
The court-appointed insolvency manager for Aufbau Verlagsgruppe
GmbH, Joachim Voigt-Salus, will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 12:00
p.m. on Oct. 1, 2008.
The meeting of creditors and other interested parties will be held
at:
The District Court of Charlottenburg
Second Stock Hall 218
Amtsgerichtsplatz 1
14057 Berlin
Germany
The Court will also verify the claims set out in the insolvency
manager's report at 11:30 a.m. on Jan. 21, 2009, at the same
venue.
Creditors have until Nov. 28, 2008 to register their claims with
the court-appointed insolvency manager.
The insolvency manager can be reached at:
Joachim Voigt-Salus
Rankestrasse 33
10789 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy proceedings
against Aufbau Verlagsgruppe GmbH on Sept. 3, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
Aufbau Verlagsgruppe GmbH
Neue Promenade 6
10178 Berlin
Germany
AVR APPARTEMENTVERMIETUNG: Claims Registration Ends October 1
-------------------------------------------------------------
Creditors of AVR Appartementvermietung GmbH Ruegen have until
Oct. 1, 2008, to register their claims with court-appointed
insolvency manager Jens Dohse.
Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Oct. 29, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court of Stralsund
Hall AE 26
House A
Bielkenhagen 9
Stralsund
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Jens Dohse
Hermannstrasse 5
18055 Rostock
Germany
All pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
AVR Appartementvermietung GmbH Ruegen
Attn: Georg Heissler, Manager
Strandstrasse 12
18586 Goehren
Germany
DEUTSCHE IMMOBILIEN: Claims Registration Period Ends Oct. 2
-----------------------------------------------------------
Creditors of D. I. E. Deutsche Immobilien Entwicklungs GmbH have
until Oct. 2, 2008, to register their claims with court-appointed
insolvency manager Ralph Buenning.
Creditors and other interested parties are encouraged to attend
the meeting at 2:45 p.m. on Oct. 29, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court of Hannover
Hall 226
Second Upper Floor
Service Bldg.
Hamburger Allee 26
30161 Hannover
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Ralph Buenning
Karl-Wiechert-Allee 1 c
30625 Hannover
Germany
Tel: 0511 554706-0
Fax: 0511 554706-99
The District Court of Hannover opened bankruptcy proceedings
against D. I. E. Deutsche Immobilien Entwicklungs GmbH on
Aug. 1, 2008. Consequently, all pending proceedings against the
company have been automatically stayed.
The Debtor can be reached at:
D. I. E. Deutsche Immobilien Entwicklungs GmbH
Attn: Theodor Vaske, Manager
c/o AFS GmbH
Karl-Wiechert-Allee 74
30625 Hannover
Germany
DIGILAB BIOVISION: Claims Registration Period Ends Oct. 2
---------------------------------------------------------
Creditors of Digilab Biovision GmbH have until Oct. 2, 2008, to
register their claims with court-appointed insolvency manager
Henning Jung.
Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on Oct. 29, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court of Hannover
Hall 226
Second Upper Floor
Service Bldg.
Hamburger Allee 26
30161 Hannover
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Henning Jung
Odeonstr. 2
30159 Hannover
Germany
Tel: 0511 353960-60
Fax: 0511 353960-69
The District Court of Hannover opened bankruptcy proceedings
against Digilab Biovision GmbH on Aug. 1, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
Digilab Biovision GmbH
Attn: Sidney Braginsky, David Giddings
and Dr. Michael Juergens
Feodor-Lynen-Strasse 5
30625 Hannover
Germany
HCP HEALTH: Claims Registration Period Ends October 1
-----------------------------------------------------
Creditors of HCP Health Care Packaging GmbH have until Oct. 1,
2008, to register their claims with court-appointed insolvency
manager Volker Boehm.
Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Nov. 5, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court of Ansbach
Meeting Room 5
Promenade 8
91522 Ansbach
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:
Volker Boehm
Rothenburger Strasse 241
90439 Nuernberg
Germany
Tel: 0911/60001-0
Fax: 0911/6000170
The District Court of Ansbach opened bankruptcy proceedings
against HCP Health Care Packaging GmbH on Sept. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
HCP Health Care Packaging GmbH
Heininger Ring 8
91550 Dinkelsbuehl
Germany
HINZE MASSIVHAUS: Creditors' Meeting Slated for December 5
----------------------------------------------------------
The court-appointed insolvency manager for Hinze Massivhaus GmbH,
Christian Graf Brockdorff will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 11:05
a.m. on Dec. 5, 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 10:35 a.m. on March 6, 2009, at the same
venue.
Creditors have until Jan. 5, 2009, to register their claims with
the court-appointed insolvency manager.
The insolvency manager can be reached at:
Christian Graf Brockdorff
Friedrich-Ebert-Str. 36
14469 Potsdam
Germany
The District Court of Charlottenburg opened bankruptcy proceedings
against Hinze Massivhaus GmbH on Sept. 10, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
Hinze Massivhaus GmbH
Wandlitzstr. 10
10318 Berlin
Germany
HMS DRUCKHAUS: Claims Registration Period Ends October 1
--------------------------------------------------------
Creditors of HMS Druckhaus GmbH have until Oct. 1, 2008, to
register their claims with court-appointed insolvency manager
Clemens Ott.
Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Oct. 22, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court of Offenbach am Main
Hall 166N
First Floor
Kaiserstrasse 16-18
63065 Offenbach am Main
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Clemens Ott
OF - Fach 30
Waldstrasse 45
D 63065 Offenbach am Main
Germany
Tel: 069/80 07 49 - 0
Fax: 069/80 07 49 - 90
The District Court of Offenbach am Main opened bankruptcy
proceedings against HMS Druckhaus GmbH on Sept. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
HMS Druckhaus GmbH
Attn: Werner Schwendner, Manager
Benzstrasse 57
63303 Dreieich
Germany
IGA-OPTIC GROLL: Claims Registration Period Ends October 1
----------------------------------------------------------
Creditors of IGA-Optic Groll GmbH have until Oct. 1, 2008, to
register their claims with court-appointed insolvency manager
Stephan Michels.
Creditors and other interested parties are encouraged to attend
the meeting at 11:10 a.m. on Oct. 22, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court Muenster
Meeting Hall 101 B
Gerichtsstr. 2-6
48149 Muenster
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Stephan Michels
Hafenweg 46- 48
48155 Muenster
Germany
Tel: 0251/609652-0
Fax: +4925160965229
The District Court of Muenster opened bankruptcy proceedings
against IGA-Optic Groll GmbH on Aug. 19, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
IGA-Optic Groll GmbH
Muensterstrasse 22
48291 Telgte
Germany
Attn: Emilia Kopp, Manager
Dwoberger Strasse 70
27753 Delmenhorst
Germany
IKB DEUTSCHE: KfW To Privately Sell Stake in Company
----------------------------------------------------
The Supervisory Board of KfW Bankengruppe has decided to sell
KfW's shares in Deutsche Industriebank AG (IKB) to private
investor Lone Star. The Supervisory Board thus follows the
resolution of KfW's Executive Committee of Aug. 20, 2008, which
had recommended the sale.
Under the deal, Lone Star is taking over KfW's IKB shares in full.
The sale to a private investor meets the central objectives of the
rescue operation for IKB. A collapse of IKB has been prevented
and IKB can now continue operating as a bank for small and medium-
sized enterprises. Germany has been stabilized as a financial
center and substantial economic damage has been averted.
KfW conducted the structured, open and non-discriminating selling
process, including the selection of the buyer, in coordination
with KfW's Executive Committee. The Managing Board of KfW
Bankengruppe and Lone Star signed the corresponding purchase
agreement in Frankfurt am Main on Aug. 21, 2008. However, the
sale still required the approval of KfW's Supervisory Board, among
other conditions. Further authorizations are pending as well,
including European Commission approval.
The closing of the agreement will take place by October 2008.
About KfW Bankengruppe
Frankfurt, Germany-based KfW Bankengruppe (formerly Kreditanstalt
fuer Wiederaufbau) -- http://www.kfw.de/EN_Home/index.jsp-- is a
state-owned development bank designed to assist developing
countries and the German economy. The bank lends to small and
midsized German businesses and buys securitized small and midsized
business loan portfolios from German banks in order to keep that
area of lending robust. It also provides funds for housing,
infrastructure, environmental protection and preservation, and
venture capital. KfW is involved in funding telecommunications,
transportation, energy infrastructure, and industrial projects
around the world.
About IKB Deutsche
Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank
AG -- http://www.ikb.de/-- provides medium-sized companies with
long-term financing. The bank operates in several German
locations, as well as branches in the United Kingdom,
Luxembourg, Spain and France.
IKB had previously invested in securitized loans on the US
market for subprime mortgages, which are now almost worthless.
This resulted in a deep-seated crisis within the bank, pushing
it on the brink of bankruptcy.
* * *
Moody's Investors Service currently rates IKB Deutsche
Industriebank AG's bank financial strength at E; subordinated
debt at Ba2; junior subordinated securities at Ca and hybrid
capital instruments eligible for Tier 1 capital and the
preferred securities of IKB Funding Trust I & II at Caa3. The
ratings, which were downgraded to their current level in
April 2008, have stable outlook.
INJEKTIONSTECHNIK NORD: Claims Registration Period Ends Oct. 1
--------------------------------------------------------------
Creditors of Injektionstechnik Nord GmbH have until Oct. 1, 2008,
to register their claims with court-appointed insolvency manager
Peter Baumgarte.
Creditors and other interested parties are encouraged to attend
the meeting at 2:50 a.m. on Oct. 29, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court of Hannover
Hall 226
Second Upper Floor
Service Bldg.
Hamburger Allee 26
30161 Hannover
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Peter Baumgarte
Lange-Hop-Strasse 158
30539 Hannover
Germany
Tel: 0511 954750
Fax: 0511 9547599
The District Court of Hannover opened bankruptcy proceedings
against Injektionstechnik Nord GmbH on Aug. 18, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Injektionstechnik Nord GmbH
Attn: Frank Schuetz, Manager
Weissdornweg 2
30900 Wedemark
Germany
KFW BANKENGRUPPE: Suspends Two Directors Over Lehman Incident
-------------------------------------------------------------
Following a Supervisory Board meeting on Sept. 18, 2008, Federal
Minister Michael Glos, the Supervisory Board Chairman of
Kreditanstalt fuer Wiederaufbau (aka KfW Bankengruppe), and
Federal Minister Peer Steinbruck, his deputy, issued these
statements:
A. Suspension of Two Managing Board Members
The Supervisory Board has intensively analyzed the Lehman Brothers
Holdings, Inc. incident. It decided, at the proposal of KfW
Managing Board Chairman Dr. Ulrich Schroder, to suspend the two
responsible Managing Board members, Dr. Peter Fleischer and Detlef
Leinberger, from their functions with immediate effect pending
final clarification of the incident.
The Managing Board also suspended the Senior Vice President in
charge of the Risk Controlling Department with immediate effect
until the incident has been clarified.
The Supervisory Board has acknowledged that Dr. Ulrich Schroder
has hired a law firm to examine whether the events that have been
identified call for appropriate consequences.
B. Submission of Business Procedures
The Supervisory Board expressly supports the initiative of Dr.
Ulrich Schroder to submit the business procedures and
organizational structure of KfW, especially of the risk
management, to an in-depth audit. Dr. Schroder will report to the
Supervisory Board on the first results at the next meeting.
C. Sale of Stake at IKB to Lone Star
The Supervisory Board of KfW Bankengruppe has also decided to sell
KfW's shares in Deutsche Industriebank AG (IKB) to the private
Investor Lone Star. The Supervisory Board thus follows the
resolution of KfW's Executive Committee of Aug. 20, 2008, which
had recommended the sale.
Under the deal, Lone Star is taking over KfW's IKB shares in full.
The sale to a private investor meets the central objectives of the
rescue operation for IKB. A collapse of IKB has been prevented
and IKB can now continue operating as a bank for small and medium-
sized enterprises. Germany has been stabilized as a financial
centre and substantial economic damage has been averted.
KfW conducted the structured, open and non-discriminating selling
process, including the selection of the buyer, in coordination
with KfW's Executive Committee. The Managing Board of KfW
Bankengruppe and Lone Star signed the corresponding purchase
agreement in Frankfurt am Main on Aug. 21, 2008. However, the
sale still required the approval of KfW's Supervisory Board, among
other conditions. Further authorisations are pending as well,
including European Commission approval. The closing of the
agreement will take place by October 2008.
About KfW Bankengruppe
Frankfurt, Germany-based KfW Bankengruppe (formerly Kreditanstalt
fuer Wiederaufbau) -- http://www.kfw.de/EN_Home/index.jsp-- is a
state-owned development bank designed to assist developing
countries and the German economy. The bank lends to small and
midsized German businesses and buys securitized small and midsized
business loan portfolios from German banks in order to keep that
area of lending robust. It also provides funds for housing,
infrastructure, environmental protection and preservation, and
venture capital. KfW is involved in funding telecommunications,
transportation, energy infrastructure, and industrial projects
around the world.
KRAFT WOHNUNGSBAU: Creditors' Meeting Slated for October 6
----------------------------------------------------------
The court-appointed insolvency manager for Kraft Wohnungsbau GmbH
& Co. KG, Udo Feser will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 9:15 a.m. on
Oct. 6, 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 9:10 a.m. on Dec. 22, 2008, at the same venue.
Creditors have until Oct. 23, 2008, to register their claims with
the court-appointed insolvency manager.
The insolvency manager can be reached at:
Udo Feser
Uhlandstr. 165/166
10719 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy proceedings
against Kraft Wohnungsbau GmbH & Co. KG on Aug. 13, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Kraft Wohnungsbau GmbH & Co. KG
Uhlandstr. 7/8
10623 Berlin
Germany
KRIS CO-PAC: Claims Registration Period Ends October 4
------------------------------------------------------
Creditors of Kris Co-pac GmbH have until Oct. 4, 2008, to register
their claims with court-appointed insolvency manager Stefan
Hinrichs.
Creditors and other interested parties are encouraged to attend
the meeting at 9:30 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 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:
Stefan Hinrichs
Kaiser-Wilhelm-Strasse 93
20355 Hamburg
Germany
The District Court of Hamburg opened bankruptcy proceedings
against Kris Co-pac GmbH on Aug. 21, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
Kris Co-pac GmbH
Bargkoppelweg 50A
22145 Hamburg
Germany
MAMMA MIA: Creditors' Meeting Slated for October 6
--------------------------------------------------
The court-appointed insolvency manager for Mamma mia Gastronomie
Vermietungs- und Beteiligungsgesellschaft mbH, Dr. Christoph
Schulte-Kaubruegger will present his first report on the Company's
insolvency proceedings at a creditors' meeting at 10:35 a.m. on
Oct. 6, 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 10:10 a.m. on Jan. 12, 2009, at the samevenue.
Creditors have until Nov. 17, 2008, to register their claims with
the court-appointed insolvency manager.
The insolvency manager can be reached at:
Dr. Christoph Schulte-Kaubruegger
Genthiner Str. 48
10785 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy proceedings
against Mamma mia Gastronomie Vermietungs- und
Beteiligungsgesellschaft mbH on Aug. 20, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
Mamma mia Gastronomie Vermietungs- und
Beteiligungsgesellschaft mbH
Klosterstr. 3
13585 Berlin
Germany
MTV MALEREIBETRIEB: Creditors' Meeting Slated for October 6
-----------------------------------------------------------
The court-appointed insolvency manager for MTV Malereibetrieb
GmbH, Dr. Juergen Spliedt will present his first report on the
Company's insolvency proceedings at a creditors' meeting at 10:15
a.m. on Oct. 6, 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 10:05 a.m. on Jan. 12, 2008, at the same
venue.
Creditors have until Nov. 17, 2008, to register their claims with
the court-appointed insolvency manager.
The insolvency manager can be reached at:
Dr. Juergen Spliedt
Uhlandstr. 165/166
10719 Berlin
Germany
The District Court of Charlottenburg opened bankruptcy proceedings
against MTV Malereibetrieb GmbH on Aug. 14, 2008. Consequently,
all pending proceedings against the company have been
automatically stayed.
The Debtor can be reached at:
MTV Malereibetrieb GmbH
Birkbuschstr. 16
12167 Berlin
Germany
NEXKOM GMBH: Claims Registration Period Ends Oct. 1
---------------------------------------------------
Creditors of nexkom GmbH have until Oct. 1, 2008, to register
their claims with court-appointed insolvency manager Dr. Ralf
Bornemann.
Creditors and other interested parties are encouraged to attend
the meeting at 2:45 p.m. on Oct. 14, 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 Mayen
Hall 4
St. Veit-Strasse 38
56727 Mayen
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. Ralf Bornemann
Godesberger Allee 125-127
53175 Bonn
Germany
Tel: 0228/81 000-858
Fax: 0228/81 000-820
E-mail: rae-bonn@dhpg.de
The District Court of Mayen opened bankruptcy proceedings against
nexkom GmbH on Aug. 22, 2008. Consequently, all pending
proceedings against the company have been automatically stayed.
The Debtor can be reached at:
nexkom GmbH
Pommerhof 1
56637 Plaidt
Germany
Attn: Ralf Schmitz, Manager
Dr. Alb.-Schweitzer-Strasse 24
56626 Andernach
Germany
PLUS GMBH: Claims Registration Period Ends Oct. 1
-------------------------------------------------
Creditors of plus GmbH have until Oct. 1, 2008, to register their
claims with court-appointed insolvency manager Silvia Lackenbauer.
Creditors and other interested parties are encouraged to attend
the meeting at 9:25 a.m. on Oct. 22, 2008, at which time the
insolvency manager will present her first report on the insolvency
proceedings.
The meeting of creditors will be held at:
The District Court of Offenbach am Main
Hall 166N
First Floor
Kaiserstrasse 16-18
63065 Offenbach am Main
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Silvia Lackenbauer
Mentor Societat AG
Geleitsstrasse 63, D
63067 Offenbach
Germany
Tel: 069-82990-85
Fax: 069/82990-80
The District Court of Offenbach am Main opened bankruptcy
proceedings against plus GmbH on Sept. 3, 2008. Consequently, all
pending proceedings against the company have been automatically
stayed.
The Debtor can be reached at:
plus GmbH
Mainstrasse 37
63065 Offenbach am Main
Germany
SANITATSHAUS ORTHOSAN: Claims Registration Period Ends Oct. 1
-------------------------------------------------------------
Creditors of Sanitatshaus Orthosan GmbH have until Oct. 1, 2008,
to register their claims with court-appointed insolvency manager
Dr. Christoph Junker.
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 Dresden
Hall D132
Olbrichtplatz 1
01099 Dresden
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Dr. Christoph Junker
Karcherallee 25 a
01277 Dresden
Germany
Web site: www.junker-bartelheimer.de
The District Court of Dresden opened bankruptcy proceedings
against Sanitatshaus Orthosan GmbH on Aug. 29, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
Sanitatshaus Orthosan GmbH
Attn: Rita Richts, Manager
Robert-Koch-Str. 28
01589 Riesa
Germany
PROSIEBENSAT.1 GROUP: To Fall Short of 2008 Earnings Target
-----------------------------------------------------------
The ProSiebenSat.1 Group expects to fall short of its Group
earnings target for 2008. Recurring EBITDA for 2008 is assumed to
be in the range of EUR670 million to EUR 700 million, given the
lack of visibility in the German advertising market.
After a good start in July 2008 and August 2008, the trading
situation in September 2008 and early data for October 2008
indicate that the performance of the German Free TV business will
be below expectations in the second half of 2008.
ProSiebenSat.1 attributes its revenue performance in the German TV
advertising market primarily to the continuing impact of the
implementation of the sales model in 2008 and to deteriorating
conditions in the German economy.
This does not affect the Groups financing arrangements.
About ProsiebenSat.1
Headquartered in Munich, Germany, ProsiebenSat.1 Media AG --
http://en.prosiebensat1.com/-- broadcasts and produces
TV programs through 24 commercial TV stations, 24 premium Pay TV
channels and 22 radio network. In June 2007, the ProSiebenSat.1
Group acquired SBS Broadcasting Group. The company employs
around 6,000 Europe-wide.
* * *
ProsiebenSat.1 Media AG continues to carry Moody's Investors
Service's Ba1 senior unsecured and corporate family ratings.
VTS VERKEHRSTECHNIK: Claims Registration Period Ends October 2
--------------------------------------------------------------
Creditors of VTS Verkehrstechnik Sindelfingen GmbH have until Oct.
2, 2008, to register their claims with court-appointed insolvency
manager Dr. Wolfgang Bilgery.
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 Stuttgart
Hall 13
Ground Floor
Hauffstr. 5 (Am Neckartor)
70190 Stuttgart
Germany
The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.
The insolvency manager can be reached at:
Dr. Wolfgang Bilgery
Humboldtstr. 16
70178 Stuttgart
Germany
Tel: 0711/96 68 90
Fax: 0711/96 68 919
The District Court of Stuttgart opened bankruptcy proceedings
against VTS Verkehrstechnik Sindelfingen GmbH on Sept. 1, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.
The Debtor can be reached at:
VTS Verkehrstechnik Sindelfingen GmbH
Sonnenbergstr. 4
71065 Sindelfingen
Germany
WESTLB AG: Appoints New Corporate & Structured Finance Unit Head
-----------------------------------------------------------------
Dr. Volker Bruhl has been appointed Head of BU Corporate &
Structured Finance Products. Dr. Bruhl will take up his
appointment on April 1, 2009 at the latest. He also becomes a
member of the divisional board of the Corporates & Structured
Finance division.
Drawing on his long-standing and extensive experience, Dr. Bruhl
will have responsibility at WestLB for driving forward the closer
integration of the Corporates, Financing and Capital Markets
businesses.
Werner Taiber, WestLB Managing Board member said, "Volker Bruhl is
an acknowledged Corporate Finance expert who has an outstanding
reputation in the market. We are confident that he will enable us
to develop and expand our Corporates and Structured Finance
activities significantly both in Germany and internationally."
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.
* GERMANY: Continental Takeover Stirs Need to Curb Cash Swaps
-------------------------------------------------------------
Schaeffler Group KG's "creeping takeover" of Continental AG may
lead to new rules on cash-settled swaps in Germany -- financial
instruments that allow investors to build stakes without
disclosing them to regulators, The Financial Times reports.
FT says German government officials are looking at U.K. proposals
to create a disclosure regime for contracts for difference -- a
financial product similar to cash swaps. "Germany could build on
these experiences," an official has told FT.
The German move comes as governments and regulators worldwide have
been discussing the use of derivatives to secure big stakes in
companies without anyone noticing, FT observes. Unlike shares or
options, cash swaps currently do not have to be disclosed,
allowing investors to secure access to large stakes in acquisition
targets without triggering a mandatory takeover.
The UK, FT says, has been working for more than a year on a
proposal to create a disclosure regime for contracts for
difference. Germany was drawn into the debate this summer when
Schaeffler secretly secured 36% of Continental's shares, mainly by
cash swaps. The German finance ministry had dismissed the need
for regulatory change, but listed companies were calling for
action against creeping takeovers. Switzerland, which tightened
its rules last year, is about to amend them for the second time to
reduce the amount of unnecessary reporting on traded derivatives.
FT writes that tumbling share prices have left managers feeling
vulnerable to hostile takeovers.
Amid demands for tighter trade laws, some experts doubt the
effectiveness of that legislation, FT notes. Joachim von
Falkenhausen at Latham & Watkins law firm asserted that
"[i]nvestment bankers would immediately . . . find new ways of
building stakes secretly," FT relates.
Tyres & Accessries says Schaeffler Group had announced that it now
holds a total of 90.19% of Continental AG. This figure includes
the 82.41% holding Schaeffler has gained at the end of the
statutory additional acceptance period and the 7.78% stake it
already held. Reuters, according to Tyres & Accessories, reported
that Schaeffler had agreed last month to limit its stake in
Continental to just under half and said it would sell excess
shares back to banks for re-placement in the market.
FT notes that Schaeffler's EUR12.1 billion (US$17 billion, GBP9.7
billion) hostile take-over bid for Continental, launched shortly
after it revealed a large stake in the rival, has ended last week.
It resulted in Schaeffler owning almost half of Continental's
shares.
About Schaeffler Group
The Schaeffler Group KG, -- http://www.schaeffler.com/-- founded
in 1946, manufactures a vast array of bearings, from cylindrical
roller bearings to needle roller bearings, used in the aerospace,
automotive, machine tool, and semiconductor industries. Its three
main brands are INA, FAG, and LuK, and though the entities are
treated separately within the company, they also work
collaboratively on specific product development. The company is
owned by Maria-Elisabeth Schaeffler, the widow of a co-founder,
and her son, Georg F. W. Schaeffler.
About Continental AG
Hanover, Germany-based Continental AG --
http://www.conti-online.com/-- is an automotive industry
supplier. The company develops, produces and distributes products
that improve driving safety, driving dynamics and ride comfort.
It operates in six main divisions. Chassis and Safety provides
active and passive driving safety, safety and chassis sensor
systems, as well as chassis components. Powertrain offers
gasoline and diesel systems, actuators, motor drives and fuel
supply, as well as hybrid electric vehicles systems. Interior
manufactures information management modules and wireless mobile
devices. Passenger and Light Truck Tires provides tires for
passenger cars, light trucks, motorcycles and bicycles.
Commercial Vehicle Tires offers tires for trucks, as well as
industrial and off-the-road vehicles. ContiTech specializes in
the rubber and plastics technology, offering functional parts,
components and systems for the automotive industry and other
sectors.
=========
I T A L Y
=========
ALITALIA SPA: Investor Group CAI May Revive Bid for Airline
-----------------------------------------------------------
Compagnia Aerea Italiana s.r.l., an investor group backed by
Italian Prime Minister Silvio Berlusconi, may revive its bid for
ailing carrier Alitalia SpA as CAI executives met with the
government for the third time in two days, The Wall Street Journal
reports.
People familiar with the situation told WSJ that CAI executives
met with Premier Silvio Berlusconi's right-hand man, Gianni Letta,
Wednesday, Sept. 24, to continue discussions over the fate of
Alitalia after holding a similar meeting Tuesday, Sept. 23.
The move comes as Alitalia's biggest union, CGIL, said Wednesday
it remained open to talks with CAI, which comprises 16 domestic
investors, WSJ says.
CAI Abandons Buy Plan
As reported in the Troubled Company Reporter-Europe on Sept. 24,
2008, after CAI's rescue plan failed last week, Alitalia proceeded
with its fourth public request for offers to buy any or all parts
of the company's assets until Sept. 30, 2008. The carrier has
already prepared notices to be published in the Italian newspapers
Corriere della Sera, il Sole-24 Ore and la Repubblica, as well as
the London-based Financial Times, according to The Associated
Press.
In the prepared notice cited by The AP, Alitalia is seeking
"whoever might be able to guarantee the continuity, in the medium
term, of the transportation service ... to submit its expression
of interest."
On Sept. 22, 2008, TCR-Europe reported that CAI withdrew its bid
to buy Alitalia's healthier assets after failing to win the
support of labor unions.
Unions Reject CAI's Offer
A TCR-Europe report on Sept. 10, 2008, said Alitalia's unions
rejected the employment contract proposed by CAI. CAI proposed
among others that pilots' vacation be reduced from 42 to 30 days a
year, with extra day off for every five years of service in the
company; and attendants' fixed salary be reduced by 43% while
their variable salary will be reduced by 28%-31%. 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 reported that on September 14, the airline's four
biggest unions won an agreement from CAI to include 1,000 more
workers in the rescue plan. However, on September 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. Alitalia Special Administrator Augusto
Fantozzi has said the airline will use part of its remaining cash
to fund this month's payroll which is due Sept. 27, 2008.
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.
PARMALAT SPA: Hikes Share Capital by EUR117,199
-----------------------------------------------
Parmalat S.p.A. has communicated that, following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by EUR117,199
to EUR1,667,785,135 from EUR1,667,667,936. The share capital
increase is due to the assignation of 79,998 shares and to the
exercise of 37,201 warrant.
The latest status of the share allotment is as follows:
Number 28,245,192 shares representing approximately 1.7% of the
share capital are still in a deposit account c/o Parmalat S.p.A.,
of which:
* 13,053,678 or 0.8% of the share capital, registered in the
name of individually identified commercial creditors, are
still deposited in the intermediary account of Parmalat
S.p.A. centrally managed by Monte Titoli (compared with
13,114,722 shares as of Aug. 29, 2008);
* 15,191,514 or 0.9% of the share capital registered in the
name of the Foundation, called Fondazione Creditori
Parmalat, of which:
-- 120,000 shares representing the initial share capital
of Parmalat S.p.A. (unchanged);
-- 15,071,514 or 0,9% of the share capital that pertain
to currently undisclosed creditors (compared with
15,169,657 shares as of Aug. 29, 2008).
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months. It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
===================
K A Z A K H S T A N
===================
AQUA TRADE: Creditors Must File Claims by November 12
-----------------------------------------------------
The Tax Committee of Almaty has ordered the compulsory liquidation
of LLP Aqua Trade and Partners (RNN 600900142869).
Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:
The Tax Committee of Almaty
Office 307
Tole bi Str. 295
Almaty
Kazakhstan
Tel: 8 (7272) 44-54-96
8 (7272) 27-31-15
JAS & TA: Claims Deadline Slated for November 7
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Jas & Ta insolvent.
Creditors have until Nov. 7, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of Kostanai
Baitursynov Str. 70
Kostanai
Kazakhstan
KAZ-TRADE-2003 LLP: Claims Filing Period Ends November 7
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of North Kazakhstan
has declared LLP Kaz-Trade-2003 insolvent.
Creditors have until Nov. 7, 2008, to submit written proofs of
claims to:
The Specialized Inter-Regional
Economic Court of North Kazakhstan
Ujnaya Str. 9
Taiynsha
North Kazakhstan
Kazakhstan
NAURYZ-2007 LLP: Creditors' Claims Due on November 12
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Nauryz-2007 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
TRANS AIR: Claims Filing Period Ends November 11
------------------------------------------------
LLP Trans Air Tour has declared liquidation. Creditors have until
Nov. 11, 2008, to submit written proofs of claims to:
LLP Trans Air Tour
Satpayev Str. 53/140-16
Almaty
Kazakhstan
Tel: 8 (7272) 45-30-61
STROY CONSTRUKTSIYA-2004: Creditors' Claims Due on November 11
--------------------------------------------------------------
LLP Construction Company Stroy Construktsiya-2004 has declared
liquidation. Creditors have until Nov. 11, 2008, to submit
written proofs of claims to:
LLP Construction Company
Stroy Construktsiya-2004
Maresyev Str. 69-21
Aktobe
Aktube
Kazakhstan
W-STROY-SERVICE LLP: Claims Registration Ends November 11
---------------------------------------------------------
LLP Construction Company W-Stroy-Service has declared liquidation.
Creditors have until Nov. 11, 2008, to submit written proofs of
claims to:
LLP Construction Company W-Stroy-Service
Abai ave. 39/8
Kyzylorda
Kazakhstan
===================
K Y R G Y Z S T A N
===================
NOK OJSC: Creditors Must File Claims by November 3
--------------------------------------------------
Branch of OJSC Nok has shut down. Creditors have until Nov. 3,
2008, to submit written proofs of claim to:
Branch of OJSC Nok
Valihanov Str. 63
Karakol
Yssyk-Kul
Kyrgyzstan
=====================
N E T H E R L A N D S
=====================
X5 RETAIL: Fulfills Karusel Bonds Obligations Under Put Option
--------------------------------------------------------------
X5 Retail Group N.V. has fulfilled its obligations on Karusel
Finance bonds in accordance with the put option. The Company has
also paid to the bondholders the full amount of the fourth coupon
- RUR45.9 million (approximately US$5.7 million).
About X5 Retail
Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V.
(LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm
for the group of companies that operate retail grocery stores.
The main activity of the company is the development and
operation of grocery retail stores. The company operated
Pyaterochka and Perekrestok retail chains in Russia, including
Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan,
Samara, Ekaterinburg and Kiev, Ukraine.
* * *
As reported in the Troubled Company Reporter Europe on Aug 26,
2008, Moody's Investors Service affirmed the B1 corporate family
rating for X5 Retail Group N.V., but changed the rating outlook
to stable from positive. At the same time, Moody's Interfax
Rating Agency, which is majority owned by Moody's, has affirmed
the company's A1.ru national scale rating. The change in
outlook was mainly prompted Moody's view that the company's
rapid growth strategy and respective large investments will
postpone its de-leveraging and attainment of sustainable
improved credit metrics in line with a Ba3 category on the
developing markets.
X5 Retail and its subsidiaries also carry a 'BB-' long-term
corporate credit rating from Standard & Poor's Ratings Services.
S&P said the outlook is stable.
X5 RETAIL: Unveils New Senior Management Appointments
-----------------------------------------------------
X5 Retail Group N.V., Russia's largest retailer in terms of sales,
has unveiled new senior management appointments:
-- Mikhail Susov has been appointed as the Company's
Marketing Director. Mr. Susov will be responsible for X5's
marketing strategy, including positioning of the formats
and brand management.
-- Tatiana Ponomareva has been appointed as Hypermarket
Format Director. Prior to this appointment, Mrs.
Ponomareva held the position of Strategy and Investments
Director at X5 Retail Group.
-- Vagan Abgaryan is taking over as Investments Director.
-- Antonio Melo has completed his term as Chief Operational
Officer of X5 due to the expiration of his contract.
"We highly value Antonio Melo's contribution to the development of
the Company’s operational strategy, strengthening its competitive
positions and supporting the achievement of outstanding results,"
X5 Retail Group CEO Lev Khasis commented. "Antonio helped us to
design and implement the business-processes we use today in X5's
operations. He not only shared with us his expertise and deep
knowledge of global retail, but also invested a lot of effort into
creating a new generation of Russian retailers who know how to
apply international retail practices successfully in the Russian
market."
"We have decided to streamline our management structure in
operations with each format's head reporting directly to the CEO,"
Mr. Khasis added. "We have also significantly strengthened our
marketing efforts by having appointed Mikhail Susov – one of the
best marketing professionals in Russia – as X5's Marketing
Director. I believe these steps will enable us to ensure the
consistency and continuity of our operational strategy and achieve
the highly ambitious goals set by the Company."
"The years spent in Russia with X5 have been the most interesting
time in my career," Mr. Melo commented. "Russia is a unique
country with outstanding growth prospects for its retail sector,
while the Russian consumer is extremely open and responsive to
modern retail offers and innovations. In my view, X5's management
team is the strongest in the market and the Company has every
reason to continue capitalizing on yet untapped opportunities
faster and more effectively than its competitors."
About X5 Retail
Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V.
(LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding firm
for the group of companies that operate retail grocery stores.
The main activity of the company is the development and
operation of grocery retail stores. The company operated
Pyaterochka and Perekrestok retail chains in Russia, including
Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan,
Samara, Ekaterinburg and Kiev, Ukraine.
* * *
As reported in the Troubled Company Reporter Europe on Aug. 26,
2008, Moody's Investors Service affirmed the B1 corporate family
rating for X5 Retail Group N.V., but changed the rating outlook
to stable from positive. At the same time, Moody's Interfax
Rating Agency, which is majority owned by Moody's, has affirmed
the company's A1.ru national scale rating. The change in
outlook was mainly prompted Moody's view that the company's
rapid growth strategy and respective large investments will
postpone its de-leveraging and attainment of sustainable
improved credit metrics in line with a Ba3 category on the
developing markets.
X5 Retail and its subsidiaries also carry a 'BB-' long-term
corporate credit rating from Standard & Poor's Ratings Services.
S&P said the outlook is stable.
* S&P Downgrades Ratings on Various European Leveraged Super CDOs
-----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered ratings on various
spread-based leveraged super senior (LSS) notes issued by Eirles
Two Ltd., Motif Capital B.V., and Sceptre Capital B.V.
These 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
the increased probability of a breach of the portfolio spread
trigger. Furthermore, some of the affected transactions have
suffered defaults in the underlying reference portfolio.
Consequently the note ratings have been lowered and remain on
CreditWatch or have been 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:
Eirles Two Ltd.
-- SGD52 Million Fixed-Rate Leveraged Super Senior Credit-Linked
Notes Series 220
A BB/Watch Neg BBB/Watch Neg
Eirles Two Ltd.
-- SGD144 Million Fixed-Rate Leveraged Super Senior Credit-
Linked Notes Series 221
A B/Watch Neg BB+/Watch Neg
Eirles Two Ltd.
-- JPY3.9 Billion Fixed Rate Leveraged Super Senior Secured
Credit-Linked Notes Series 230
B/Watch Neg BB+/Watch Neg
Eirles Two Ltd.
-- EUR15 Million Variable-Rate LSS Secured Credit-Linked Notes
Series 337
BB/Watch Neg BB+/Watch Neg
Sceptre Capital B.V.
-- EUR50 Million Long-Short Variable-Redemption Limited Recourse
Leveraged CDO Notes Series 2005-7
B/Watch Neg BBB-/Watch Neg
Sceptre Capital B.V.
-- EUR20 Million Variable Redemption-Linked Recourse-Limited
Leveraged CDO Notes Series 2005-8
BB/Watch Neg BBB/Watch Neg
Ratings Lowered and Placed on CreditWatch Negative:
Motif Capital B.V.
-- EUR50 Million Long-Short Variable Redemption Limited Recourse
Leveraged CDO notes Series 2006-1
CCC/Watch Neg AAA
===========
P O L A N D
===========
VIVID.PL S.A.: Files Bankruptcy Petition in Warsaw Court
--------------------------------------------------------
The Management Board of Vivid.pl S.A., an indirect subsidiary of
KGHM Polska Miedz S.A., filed a bankruptcy petition and remediary
proceedings with the Regional Court for the City of Warsaw on
Sept. 24, 2008.
Telefonia DIALOG S.A., a subsidiary of KGHM Polska Miedz S.A.,
owns 100% of the Vivid.pl S.A. shares. The net carrying amount of
these shares in the assets of Telefonia DIALOG S.A. amounts to
PLN 4.28 million.
===========
R U S S I A
===========
ABAKAN-LES-TORG: Creditors Must File Claims by October 11
---------------------------------------------------------
Creditors of LLC Abakan-Les-Torg have until Oct. 11, 2008, to
submit proofs of claims to:
A. Maltsev
Temporary Insolvency Manager
Kolkhoznaya Str. 45/36
Abakan
Khakasia
Russia
The Arbitration Court of Khakasia commenced bankruptcy supervision
procedure against the company after finding it insolvent. The case
is docketed under Case No. A74-1731/2008.
The Debtor can be reached at:
LLC Abakan-Les-Torg
Office 505
Kryulova Str.
Abakan
Khakasia
Russia
AGRO-GAS-DOR-BUSINESS: Creditors Must File Claims by October 11
---------------------------------------------------------------
Creditors of LLC Agro-Gas-Dor-Business have until Oct. 11, 2008,
to submit proofs of claims to:
A. Makarov
Temporary Insolvency Manager
Volodarskogo Str.9/202
Penza
Russia
The Arbitration Court of Ryazanskaya will convene at 11:00 a.m. on
Jan. 27, 2009, to hear the company's bankruptcy supervision
procedure. The case is docketed under Case No. A54-2832/2008.
The Court is located at:
The Aritration Court of Ryazanskaya
Pochtovaya Str. 43/44
Ryazan
Russia
The Debtor can be reached at:
LLC Agro-Gas-Dor-Business
Zatinnaya Str. 7
390006 Ryazan
Russia
NEFT-STROY-SERVICE: Creditor Must File Claims by November 11
------------------------------------------------------------
Creditors of CJSC Neft-Stroy-Service (TIN 5072709564) have
until Nov. 11, 2008, to submit proofs of claims to:
L. Serdyuk
Insolvency Manager
Apt.6
Building 3
Moldagulovoy Str. 16
111395 Moscow
Russia
The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed Case No. A41-?2-12160/06.
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:
CJSC Neft-Stroy-Service
Kuybusheva Str.9
Lukhovtsu
140500 Moscovskaya
Russia
OSTROGOZHSKIY CANNERY: Creditor Must File Claims by November 11
---------------------------------------------------------------
Creditors of LLC Ostrogozhskiy Cannery Plant (TIN 3619009205)
have until Nov. 11, 2008, to submit proofs of claims to:
N. Korobkin
Insolvency Manager
Post User Box 15
394033 Voronezh-5
Russia
The Arbitration Court of Voronezhskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed Case No. A14-1216/2008/5/27b.
The Court is located at:
The Arbitration Court of Voronezhskaya
Sredne-Moskovskaya Str.77
394033 Voronezh
Russia
The Debtor can be reached at:
LLC Ostrogozhskiy Cannery Plant
Kuznetsova Str. 72
Ostrogozhsk
397855 Voronezhskaya
Russia
PROMTEKS UNION: Creditor Must File Claims by October 11
-------------------------------------------------------
Creditors of LLC Promteks have until Oct. 11, 2008, to submit
proofs of claims to:
M.Sharipov
Insolvency Manager
Office 35
Kharkovskaya Str. 129
450078 Ufa
Bashkortostan
Russia
The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed Case No. A76-9463/2008–48-133.
The Court is located at:
The Arbitration Court of Chelyabinskaya
Vorovskogo Str. 2
454091 Chelyabinsk
Russia
The Debtor can be reached at:
LLC Promteks Union
Prospect Matallurgov 12/86
455000 Magnitogorsk
Russia
SEVERSTAL OAO: Inks US$1.2 Billion Syndicated Loan Facility
-----------------------------------------------------------
OAO Severstal has successfully signed a 5-year syndicated loan
facility. The credit agreement secures US$1.2 billion available
immediately and provides for an option to further increase the
facility amount. The facility bears an interest rate of LIBOR +
2.35% p.a. and has a 1.5 year grace period followed by quarterly
repayments. The proceeds will be primarily used for acquisition
of PBS Coals Company as well as other corporate purposes.
Sergei Kuznetsov, Severstal CFO, said, "I am pleased to announce
the successful signing of the credit agreement. In the current
volatile environment in financial markets it demonstrates the
strength of our company and investors' confidence in our business
model. We will use the facility to continue to grow our company
and create value for our shareholders."
About Severstal
Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons. Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.
* * *
As reported in the Troubled Company Reporter Europe on Aug. 27,
2008, Fitch Ratings affirmed OAO Severstal's ratings at long term
Issuer Default 'BB', Short-term IDR 'B', and National 'AA-
(rus)'. The Outlooks on the Long-term IDR and National Long-term
rating are Stable.
OAO Severstal continues to carry Ba2 Corporate Family, Senior
Unsecured Debt and Probability-of-Default ratings from Moody's
Investor Service, which said the the outlook on all ratings is
stable. Moody's raised the company's ratings to its current
level in October 2007.
The company also carries BB long-term Foreign and Local Issuer
Credit ratings from Standard & Poor's, which said the outlook is
stable.
SHAKHT-SNAB-SERVICE: Creditor Must File Claims by October 11
------------------------------------------------------------
Creditors of LLC Shakht-Snab-Service have until Oct. 11, 2008, to
submit proofs of claims to:
V. Bashirov
Insolvency Manager
Pervomayskaya Str. 27/3
450112 Ufa
Bashkortostan
Russia
The Arbitration Court of Rostovskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed Case No. A53-161/2008-S1-52.
The Court is located at:
The Arbitration Court of Rostovskya
Office 104
Stanislavskogo Str.8a
Rostov-on-Don
Russia
SHUGUROVSKIY PETROLEUM: Creditors Must File Claims by October 11
----------------------------------------------------------------
Creditors of CJSC Shugurovskiy Petroleum Refinery have until
Oct. 11, 2008, to submit proofs of claims to:
T. Bikmukhametov
Temporary Insolvency Manager
Post User Box 2030
420061 Kazan
Tatarstan
Russia
The Arbitration Court of St. Petersburg commenced bankruptcy
supervision procedure against the company after finding it
insolvent. The case is docketed under Case No. A65-12312/
2008-SG4-40.
The Court is located at:
The Arbitration Court of St. Petersburg
Hall 113
Suvorovskiy Pr. 50/52
St. Petersburg
Russia
The Debtor can be reached at:
CJSC Shugurovskiy Petroleum Refinery
Office 27
Koshevogo Str.20
Leninogorsk
Tatarstan
Russia
SUE KIRISHSKIY: Creditors Must File Claims by October 11
--------------------------------------------------------
Creditors of SUE Kirishskiy Biochemical Plant have until Oct. 11,
2008, to submit proofs of claims to:
V. Chenskikh
Temporary Insolvency Manager
Apt.30
Admirala Lazareva Str. 27
117042 Moscow
Russia
The Arbitration Court of St. Petersburg will convene at noon on
Jan. 20, 2009, to hear the company's bankruptcy supervision
procedure. The case is docketed under Case No. A56-26174/2008.
The Court is located at:
The Arbitration Court of St. Petersburg
Hall 113
Suvorovskiy prospect 50/52
191015 St. Petersburg
Russia
The Debtor can be reached at:
SUE Kirishskiy Biochemical Plant
Shosse Zuevo 16km
Glazhevskaya
Kirishskiy
187126 Leningradskaya
Russia
TAKKU OIL: Karelia Bankruptcy Hearing Set December 16
-----------------------------------------------------
The Arbitration Court of Karelia will convene on Dec. 16, 2008, to
hear bankruptcy supervision procedure on LLC Takku Oil (Gasoline
Stands). The case is docketed under Case No. A26-848/ 2008.
The Temporary Insolvency Manager is :
I. Belyaminov
Post User Box 21
185030 Petrozavodsk
Karelia
Russia
The Debtor can be reached at:
LLC Takku Oil
Lesnaya Str. 18
Segezha
Karelia
Russia
VTB GROUP: Net Profit Up 34.7% to US$679 Mln for 2008 First Half
----------------------------------------------------------------
VTB Group released unaudited IFRS results for the six months
ending June 30, 2008.
VTB Group's net profit for the first six months of 2008 increased
by 34.7% to US$679 million from US$504 million in the first six
months of 2007.
Total assets grew 17.4% to US$ 108.8 billion in the first six
months of 2008 from US$92.609 billion in the same period in 2007.
VTB Group remains confident in the continued profitable growth of
its business. Going forward, VTB expects an increasing
contribution to net profit from its retail business, significant
revenue generation in investment banking and enhanced
effectiveness in corporate banking. Although market conditions
are more challenging and VTB is taking a more prudent stance in
its lending, VTB intends to continue developing innovative
products and services to match the evolving needs of its clients,
and will maintain the ROE and capital ratios at appropriate
levels.
Nikolai Tsekhomsky, VTB Chief Financial Officer and Member of the
Management Board, said, "We are delighted to report a strong set
of first half 2008 results. Given the challenging environment, we
are focusing on developing further the fundamental strengths of
our business and maintaining resilience in difficult market
conditions. However, longer term we continue to have confidence in
our ability to deliver our strategic objectives."
About OJSC VTB Bank
Headquartered in St. Petersburg, Russia, OJSC VTB --
http://www.vtb.com/-- is a leading Russian universal banking
group offering a wide range of banking services and products
across Russia, certain CIS countries and selected countries in
Western Europe, Asia and Africa.
* * *
OJSC VTB continues to carry a D bank financial strength rating
from Moody's Investors Service. The rating was placed in November
2007.
* RUSSIA: Offers Banks with Rbs500 Billion Additional Liquidity
---------------------------------------------------------------
RIA Novosti reported on Sept. 25, 2008, that Russia's Finance
Ministry said it will hold auctions on September 30 and October 1
offering banks up to 500 billion rubles (US$20 billion) in
temporarily available budget funds to boost liquidity.
At its September 30 auction, the ministry will offer 200 billion
rubles (US$7.9 billion) for a term between October 1 and
November 5 at a minimum rate of 8.25% per annum, Novosti said.
At its second auction, the Finance Ministry will offer up to
300 billion rubles (US$11.9 billion) from October 2 to October 9
at a minimum rate of 8% per annum, the report related.
According to the report, the Russian stock market slumped on
September 17 and trading was suspended for two days after share
prices plummeted to their lowest levels in nearly three years on
the RTS and MICEX stock exchanges amid worsening global financial
troubles. The market rebounded on September 19 after the
government took urgent measures to pump billions of dollars into
it to shore up liquidity.
Analysts say problems with liquidity experienced by the Russian
banking sector might prompt a wave of bank consolidation, and
reduce the number of credit institutions in Russia by a third, the
report wrote.
The Financial Times reported over the weekend that Russia's
finance ministry widened the provision of emergency budget funding
to Russia's banking system, a sign that despite US$130 billion
(EUR90 billion, GBP71 billion) of additional liquidity to the
country's financial markets announced last week, the banking
system is still under pressure.
The number of banks with access to budget funding, which is longer
term than central bank lending, was previously restricted to the
country's three largest banks, Sberbank, VTB, and Gazprombank, but
Sunday's decision increases that list to 28, FT noted.
=========
S P A I N
=========
MARTINSA FADESA: To Sell Hungarian and Eastern European Projects
----------------------------------------------------------------
Portfolio.hu reports that Martinsa Fadesa SA will put most of its
Eastern European projects up for sale, including projects in
Hungary.
Martinsa Fadesa will withdraw from these markets, the report
notes.
According to the report, Martinsa Fadesa wants to sell a major
city development project in Bucharest, Romania, and a residential
project in Poland. It is also offering for sale another
residential construction in the Czech Republic.
Martinsa Fadesa's ongoing projects in Hungary, include Budapest's
Central Passage and Danubio Park, the Riviera Park in Siofok and a
housing project in Csepel (Budapest).
As reported in the TCR-Europe on July 17, 2008, Martinsa Fadesa
filed for opening of administration procedures at the Mercantile
Court of La Coruna after it failed to a secure a EUR150 million
loan -- a requirement for its EUR4 billion debt refinancing
agreement with creditor banks.
The company had sought a waiver for the loan.
Martinsa Fadesa said it had insufficient cash-flow to meet
interest payments and pay suppliers. The company owes more than
EUR5 billion to creditors.
The property group attributed its financial troubles to "clear
recession that the Spanish economy is suffering at the moment".
Headquartered in Corunna, Spain, Martinsa Fadesa SA --
http://www.martinsafadesa.com/-- develops residential and
commercial property projects, including hotels, shopping centers
and golf courses, as well as industrial projects, among others.
The company also operates in Portugal, Romania, Hungary,
Ireland, France, Bulgaria, Mexico, the Dominican Republic, the
Czech Republic, Slovakia, and Poland.
===========
S W E D E N
===========
FORD MOTOR: Reviewing Lehman Bankruptcy's Impact on Loan
--------------------------------------------------------
Ford Motor Co. disclosed in a Securities and Exchange Commission
that it is currently assessing the impact, if any, that the
Chapter 11 bankruptcy filing by Lehman Brothers Holdings Inc. will
have on Lehman Commercial Paper Inc. and Lehman Brothers Bank's
commitments to the company.
Lehman CPI is one of the lenders participating in Ford Motor's
US$11.5 billion revolving credit facility that is part of its
secured Credit Agreement dated Dec. 15, 2006. Lehman CPI's
commitment under the revolving credit facility is US$890 million,
all of which is presently unfunded.
Lehman Brothers Bank, FSB provides US$238 million of the aggregate
US$16.3 billion of contractually committed liquidity facilities
supporting the retail securitization program of Ford Motor Credit
Company LLC, a wholly owned subsidiary.
Lehman Brothers Bank's commitment is guaranteed by Lehman Brothers
Holdings Inc., which is the ultimate parent company of Lehman CPI
and Lehman Brothers Bank.
On Sept. 15, 2008, Lehman filed for protection under Chapter 11 of
the U.S. Bankruptcy Code, but that its subsidiaries, which would
include Lehman CPI and Lehman Brothers Bank, were not included in
the filing.
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
=====================
AMATCO ENERGY: Creditors Must File Proofs of Claim by Oct. 10
-------------------------------------------------------------
Creditors owed money by JSC Amatco Energy are requested to file
their proofs of claim by Oct. 10, 2008, to:
Iso Lenzlinger
Alpenstrasse 12
Mail Box: 4662
6304 Zug
Switzerland
The company is currently undergoing liquidation in Zug. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 26, 2008.
CAT ATTACK: Proofs of Claim Filing Deadline is Oct. 10
------------------------------------------------------
Creditors owed money by LLC Cat Attack are requested to file their
proofs of claim by Oct. 10, 2008, to:
Driss Defouf
Haldenstrasse 5
6340 Baar
Switzerland
The company is currently undergoing liquidation in Baar. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 9, 2008.
GENERAL MOTORS: US$3.5BB Facility Draw Down Won't Affect S&P Rtngs
------------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
General Motors Corp. (B-/Negative/--) are not immediately affected
by the company's announcement that it will draw down the remaining
US$3.5 billion of its secured revolving credit facility. This
action underscores the anxious state of the capital markets, and
S&P remains concerned that the weak credit markets, if sustained,
could delay or complicate GM's plans to raise an additional
US$2 billion to US$3 billion from secured debt issuance and
another US$2 billion to US$4 billion from asset sales.
S&P does not believe GM's action reflects any additional
deterioration of the company's prospective cash outflows compared
to S&P's assumptions. S&P previously estimated that GM could use
as much as US$16 billion from its global automotive operations
this year, including cash restructuring costs and costs related to
bankrupt former unit Delphi Corp.
GM's cash and short-term investments totaled US$21 billion at
June 30, 2008, although S&P expects this amount to be reduced by
continued cash outflows. S&P could lower the ratings if it came
to believe that cash and short-term investments would drop below
US$15 billion before the middle of 2009, or if total liquidity
would drop below US$20 billion.
Separately, GM announced the completion of a US$322 million debt-
to- equity exchange. This action, although positive, represents
only a minor offset to the additional interest costs GM will take
on by drawing the remaining US$3.5 billion of its revolving credit
facility.
JITLADA-THAI LLC: Creditors Have Until Oct. 10 to File Claims
-------------------------------------------------------------
Creditors owed money by LLC Jitlada-Thai are requested to file
their proofs of claim by Oct. 10, 2008, to:
Brigitta Frey
Kyburgstrasse 26
8307 Ottikon b. Kemptthal
Switzerland
The company is currently undergoing liquidation in Lindau. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on March 10, 2008.
OBERMATT-IMMOBILIEN JSC: Proofs of Claim Due by October 8
---------------------------------------------------------
Creditors owed money by JSC Obermatt-Immobilien are requested to
file their proofs of claim by Oct. 8, 2008, to:
JSC HPF
Dynamostrasse 5
5400 Baden
Switzerland
The company is currently undergoing liquidation in Buchs ZH. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 15, 2008.
ORIGO JSC: Deadline to File Proofs of Claim Set Oct. 8
------------------------------------------------------
Creditors owed money by JSC Origo are requested to file their
proofs of claim by Oct. 8, 2008, to:
Kaspar Ludi
Gabelbachstrasse 31
3027 Bern
Switzerland
The company is currently undergoing liquidation in Bern. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 22, 2008.
P. ZBINDEN JSC: Proofs of Claim Filing Deadline is Oct. 8
---------------------------------------------------------
Creditors owed money by JSC P. Zbinden are requested to file their
proofs of claim by Oct. 8, 2008, to:
Schwarzseestrasse 29
1712 Tafers
Switzerland
The company is currently undergoing liquidation in Tafers. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 21, 2008.
ROBERTO RIVA: Creditors Have Until Oct. 9 to File Claims
--------------------------------------------------------
Creditors owed money by JSC Roberto Riva Fashion are requested to
file their proofs of claim by Oct. 9, 2008, to:
Dr. Hubertus Ludwig
Advocacy and notary's office VISCHER
Aeschenvorstadt 4
4010 Basel
Switzerland
The company is currently undergoing liquidation in Pratteln. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 20, 2008.
SWITRASUD JSC: Deadline to File Proofs of Claim Set Oct. 10
-----------------------------------------------------------
Creditors owed money by JSC Switrasud are requested to file their
proofs of claim by Oct. 10, 2008, to:
JSC RGS Administrations
Bleicherweg 14
Mail Box: 2080
8022 Zurich
Switzerland
The company is currently undergoing liquidation in Zurich. The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on March 27, 2008.
TREYER OPTIK: Oct. 9 Set as Deadline to File Proofs of Claim
------------------------------------------------------------
Creditors owed money by JSC Treyer Optik Holding are requested to
file their proofs of claim by Oct. 9, 2008, to:
Sandra Christine Treyer Schawalder
Trottenstrasse 24A
5408 Ennetbaden
Switzerland
The company is currently undergoing liquidation in Ennetbaden.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on July 29, 2008.
VS ECONOMATO: Oct. 10 Set as Deadline to File Proofs of Claim
-------------------------------------------------------------
Creditors owed money by LLC VS Economato are requested to file
their proofs of claim by Oct. 10, 2008, to:
Michele Vaucher
Sandmatthof 1
4532 Feldbrunnen
Switzerland
The company is currently undergoing liquidation in Feldbrunnen-St.
Niklaus. The decision about liquidation was accepted at an
extraordinary shareholders' meeting held on June 11, 2008.
===========
T U R K E Y
===========
* Turkish Banks To Withstand Environmental Challenges, S&P Reports
------------------------------------------------------------------
In a global context, Standard & Poor's Ratings Services considers
that the creditworthiness of the Turkish banking sector represents
higher-than-average risk. An environment of inflationary
pressure, domestic political turbulence, and widened international
funding margins has heightened risks for domestic banks in Turkey,
S&P noted in a report published titled, "Bank Industry Risk
Analysis: Turkish Banks Withstand Heightened Environmental
Hurdles". However, the strengthened banking profile in the
Republic of Turkey (foreign currency BB-/Stable/B, local currency
BB/Stable/B) has made the system resilient.
The system occupies group seven (out of 10; one representing the
strongest) in the Bank Industry Country Risk Assessment rankings,
which reflects the strengths and weaknesses of a country's banking
system relative to other countries. Similarly ranked banking
systems include China, Latvia, and Panama.
Unlike other emerging markets in the region, particularly in the
Commonwealth of Independent States, Turkish banks benefit from
diversified funding and good liquidity, with relatively moderate
reliance on international wholesale funds. The system is now more
resilient to moderate volatility due to the restructuring,
transformation, and growth in the period following the severe
economic and financial crisis of 2001.
"This is underpinned by better capitalization, reduced market
risk, stronger liquidity, and improved loan underwriting systems.
Nonetheless, the current negative environmental factors are
expected to dampen the system's fast pace of growth and earnings
prospects," said S&P's credit analyst Magar Kouyoumdjian. The
current domestic political turbulence is the latest among many in
recent years to test the resilience of the banking system.
Similar turbulence had cost the banking system severely in 2001,
leading to deteriorated asset quality, large financing costs, and
large foreign-exchange losses, ultimately resulting in 20 bank
closures.
The transformation of the banking system, coupled with Turkey's
large underbanked population, acted as a stimulus to attract
significant foreign investment, particularly between 2005 and
2006. Foreign investment remains lower than other emerging
markets in the region, however, particularly compared to Central
and Eastern Europe. Furthermore, the privatization of the large
state-owned banks, mainly Turkiye Halk Bankasi A.S. (Halkbank; not
rated) and T.C. Ziraat Bankasi A.S. (BB-/Stable/B), remains an
ongoing challenge.
Despite having a mature banking system, financial intermediation
remains the lowest in Turkey, even among emerging markets. This is
a legacy of historical high inflation, and government borrowing
requirements crowding out lending to the real economy. With the
reduction in inflation, banks continue to develop their commercial
business away from investing in government paper, particularly in
retail banking, where they compete using sophisticated
technological infrastructure. Loan growth exceeded 56% in 2007,
but is expected to slow down in 2008 given inflationary pressure
and widening wholesale funding margins. The profitability of
banks could also suffer in the medium term. Asset quality is also
expected to suffer somewhat, although it has demonstrated
significant improvement in the past seven years, with strengthened
provisions. The rapid increase in lending highlights the need for
a strong credit underwriting culture and systems, which some
Turkish banks still lack. The sector's liquidity is considered to
be satisfactory, with relatively low balance sheet leverage and
diversified funding.
"The largest private Turkish banks have used structured
transactions to access overseas funds, but the reliance on foreign
wholesale funds is relatively low, accounting for 13% of funding
at June 30, 2008," added Mr. Kouyoumdjian. Despite good
regulatory ratios, capitalization of the system is considered only
adequate given the prospect of continued loan growth and the risky
operating environment. Finally, corporate governance, accounting,
auditing, regulation, and supervision need to be strengthened
further and fully aligned with best international practices.
=============
U K R A I N E
=============
ALEXANDROVSKOYE 2000: Creditors Must File Claims by October 1
-------------------------------------------------------------
Creditors of LLC Alexandrovskoye 2000 (code EDRPOU 30614579) have
until Oct. 1, 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. 12, 2008.
The case is docketed as B-39/211-07.
The Debtor can be reached at:
LLC Alexandrovskoye 2000
Novoalexandrovka
Volchansk District
62545 Kharkov
Ukraine
ENERGYRESOURCE LLC: Creditors Must File Claims by October 1
-----------------------------------------------------------
Creditors of LLC Energyresource (code EDRPOU 30220831) have until
Oct. 1, 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 44/90-b.
The Debtor can be reached at:
LLC Energyresource
Ivan Lepse Str. 8
03124 Kiev
Ukraine
GENIUS LLC: Creditors Must File Claims by October 1
---------------------------------------------------
Creditors of LLC Trading Company Genius (code EDRPOU 34000672)
have until Oct. 1, 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. 18, 2008.
The case is docketed as 49/211-b.
The Debtor can be reached at:
LLC Trading Company Genius
Bulgakov Str. 16
03134 Kiev
Ukraine
INTEK LLC: Creditors Must File Claims by October 1
--------------------------------------------------
Creditors of LLC Intek (code EDRPOU 31353917) have until Oct. 1,
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. 26, 2008.
The case is docketed as 50/213.
The Debtor can be reached at:
LLC Intek
Botychev Tok Str. 35
Kiev
Ukraine
INTEL-INVET TVK: Creditors Must File Claims by October 1
--------------------------------------------------------
Creditors of LLC Intel-Invet TVK (code EDRPOU 35081937) have until
Oct. 1, 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. 18, 2008.
The case is docketed as 49/210-b.
The Debtor can be reached at:
LLC Intel-Invet TVK
Ap. 34
Pobeda Avenue 136
03115 Kiev
Ukraine
LIANDA LLC: Creditors Must File Claims by October 1
---------------------------------------------------
Creditors of Edition-PolygraphiC LLC Lianda (code EDRPOU 14081962)
have until Oct. 1, 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. 13, 2008.
The case is docketed as B-24/153-08.
The Debtor can be reached at:
Edition-PolygraphiC LLC Lianda
Ap. 50
Astronomicheskaya Str. 17
Kharkov
Ukraine
MACHINEKIT-TRADE GROUP: Creditors Must File Claims by October 1
---------------------------------------------------------------
Creditors of LLC Machinekit-Trade Group (code EDRPOU 34999667)
have until Oct. 1, 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. 18, 2008.
The case is docketed as 49/209-b.
The Debtor can be reached at:
LLC Machinekit-Trade Group
Bulgakov Str. 16
03134 Kiev
Ukraine
MARKTRANS LLC: Creditors Must File Claims by October 1
------------------------------------------------------
Creditors of LLC Marktrans (code EDRPOU 34319837) have until
Oct. 1, 2008, to submit proofs of claim to:
The Economic Court of Odessa
Shevchenko Avenue 4
65032 Odessa
Ukraine
The Economic Court of Odessa commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 19, 2008.
The case is docketed as 2/160-08-3394.
The Debtor can be reached at:
LLC Marktrans
Uspenskaya Str. 47
65011 Odessa
Ukraine
MINERAL WATER: Creditors Must File Claims by October 1
------------------------------------------------------
Creditors of LLC Mineral Water of Ukraine (code EDRPOU 24103124)
have until Oct. 1, 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. 26, 2008.
The case is docketed as 50/212.
The Debtor can be reached at:
LLC Mineral Water of Ukraine
Saliutnaya Str. 14
Kiev
Ukraine
QUATRO-CENTER LLC: Creditors Must File Claims by October 1
----------------------------------------------------------
Creditors of LLC Quatro-Center (code EDRPOU 35196348) have until
Oct. 1, 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. 19, 2008.
The case is docketed as 23/206-b.
The Debtor can be reached at:
LLC Quatro-Center
Panas Mirny Str. 16/13A
Kiev
Ukraine
===========================
U N I T E D K I N G D O M
===========================
AIR COOL: Joint Liquidators Take Over Operations
------------------------------------------------
J. S. French and A. Raja of Vantis Business Recovery Services were
appointed joint liquidators of Air Cool Engineering Ltd. (formerly
Aircool Engineering Ltd.) on Sept. 10, 2008, for the creditors'
voluntary winding-up proceeding.
The company can be reached at:
Air Cool Engineering Ltd.
c/o Vantis Business Recovery Services
43-45 Butts Green Road
Hornchurch
Essex
RM11 2JX
England
BEANSCENE: Comes Out of Administration with New Owners
------------------------------------------------------
Beanscene, a Scottish coffee-house chain which went into
administration, is now owned by Fifi & Ally, Jane Bradley of
scotsman reports.
Fifi & Ally has kept the 12 Beanscene stores open but closed 2
shops in Edinburgh.
Fiona Hamilton, a partner of Fifi & Ally said, "The Holyrood Road
and Commercial Quay stores did not have sufficient footfall.
The keys have been returned to the buildings' owners by the
administrators, although we have agreed to take on the staff."
Fifi & Ally, founded in 2005, sells homewares and clothes in
addition to running its restaurants.
Beanscene -- http://www.beanscene.com/-- is a small chain of
local coffee houses, established to provide a laid back
alternative to city center coffee chains.
BRITISH ENERGY: EDF Unveils Terms of GBP12.5 Billion Cash Offer
---------------------------------------------------------------
The Boards of EDF and British Energy, on Wednesday, Sept. 24,
2008, reached agreement on the terms of the recommended offers to
be made by Lake Acquisitions Limited, a wholly-owned subsidiary of
EDF S.A., for the entire issued and to be issued share capital of
British Energy Group plc.
The Offers
British Energy Ordinary Shareholders who validly accept the
Ordinary Offer may elect to participate in respect of their
British Energy Ordinary Shares for an all cash offer and Eligible
British Energy Ordinary Shareholders may alternatively elect for
the Partial CVR Alternative:
* the Cash Offer for the British Energy Ordinary Shares will
be 774 pence in cash for each British Energy Ordinary
Share;
* a Partial CVR Alternative will also be made available
under which Eligible British Energy Ordinary Shareholders
may elect to receive, subject to availability, in respect
of all or part of their holding of British Energy Ordinary
Shares, 700 pence in cash and one Nuclear Power Note
(issued by Barclays Bank PLC) for each British Energy
Ordinary Share. The Nuclear Power Notes will be issued
for a cash price, to be satisfied by the issue to Barclays
by Lake Acquisitions of the underlying Lake CVRs. This
Partial CVR Alternative is intended to afford Eligible
British Energy Ordinary Shareholders economic exposure to
wholesale power prices and the output of British Energy's
existing nuclear fleet, subject to minimum, maximum and
cumulative constraints and in accordance with the terms
and conditions of the Nuclear Power Notes;
* as part of the Partial CVR Alternative, an Additional CVR
Election Facility will also be made available, which will
enable Eligible British Energy Ordinary Shareholders who
elect for the Partial CVR Alternative to elect to receive,
subject to availability, two additional Nuclear Power
Notes, in lieu of receiving cash consideration of 74 pence
in respect of each additional Nuclear Power Note.
The Cash Offer for the British Energy Convertible Shares will also
be 774 pence in cash for each British Energy Convertible Share.
HM Government has the ability to direct Nuclear Liabilities Fund
Limited to exercise, subject to procedural restrictions, its right
to convert its financial interest existing from time to time (in
the form of the NLF Cash Sweep Payment) in British Energy
(currently representing approximately 35.58 per cent. of the
enlarged share capital of British Energy) and require British
Energy to issue British Energy Convertible Shares to NLF. NLF (at
the direction of the Secretary of State) has entered into an
irrevocable undertaking with Lake Acquisitions to exercise this
right and accept the Convertible Offer in respect of its entire
resulting holding provided that the Offers have been or will, upon
receipt of such acceptance from NLF, be declared unconditional in
all respects. British Energy also has the benefit of certain
provisions in this irrevocable undertaking.
Invesco, currently British Energy's largest shareholder, has
entered into an irrevocable undertaking with Lake Acquisitions to
accept the Ordinary Offer in respect of its entire holding of
British Energy Ordinary Shares, representing approximately 14.86
per cent. of the existing issued share capital of British Energy
(9.57 per cent. of the enlarged share capital of British Energy).
Including the irrevocable undertakings also received from each of
the British Energy Directors, Lake Acquisitions has therefore
received irrevocable undertakings in respect of British Energy
Shares representing in aggregate 45.16 per cent. of the enlarged
share capital of British Energy.
The Cash Offers value British Energy at approximately GBP12.5
billion. The price of 774 pence per British Energy Share
represents a premium of:
* 35.4 per cent. over the closing middle market price of a
British Energy Ordinary Share of 571.5 pence on March 14,
2008, the business day immediately prior to March 17,
2008, the date on which British Energy issued an
announcement that it was in discussions which might or
might not lead to an offer for the company and prior to
the payment of the dividends of 14.5 pence per British
Energy Ordinary Share on April 3, 2008 and 13.6 pence per
British Energy Ordinary Share on July 31, 2008;
* 8.2 per cent. to the average closing middle market price
of a British Energy Ordinary Share of 715 pence for the
six months prior to Sept. 24, 2008; and
* 6.9 per cent. to the closing middle market price of a
British Energy Ordinary Share of 724 pence on Sept. 23,
2008, being the business day immediately prior to the date
of this Announcement.
Recommendation
The British Energy Board, which has been so advised by Rothschild
(as lead financial adviser) and by Gleacher Shacklock, considers
the terms of the Cash Offers to be fair and reasonable and,
subject to the factors referred to below, considers the terms of
the Partial CVR Alternative to be fair and reasonable.
Accordingly, the British Energy Board intends unanimously to
recommend that British Energy Shareholders accept the Cash Offers
(in relation to the Ordinary Offer and the Convertible Offer, as
applicable) and consider, subject to the factors referred to
below, electing for the Partial CVR Alternative. Rothschild has
an existing relationship with EDF and, as a consequence, is a
connected party to EDF. Gleacher Shacklock is therefore providing
independent advice to the British Energy Board on the Offers for
the purposes of Rule 3 of the Code. In providing their advice,
Rothschild and Gleacher Shacklock have had regard to the British
Energy Board's commercial assessments. The British Energy
Directors have irrevocably agreed to accept the Ordinary Offer in
respect of their entire beneficial holdings of British Energy
Ordinary Shares (amounting to, in aggregate, 162,737 British
Energy Ordinary Shares, representing approximately 0.02 per cent.
of the existing issued share capital of British Energy).
The Partial CVR Alternative enables electing Eligible British
Energy Ordinary Shareholders to realize cash for the majority of
their investment in British Energy, but to retain an exposure to
wholesale power prices and to the output of British Energy's
existing nuclear fleet through the Nuclear Power Notes. The
Partial CVR Alternative may lead to holders of British Energy
Ordinary Shares who accept it receiving, in the long-term, either
more or less than the Cash Offer, depending on wholesale power
prices and the level of British Energy's output over the duration
of the Nuclear Power Notes. British Energy Shareholders'
attention is drawn to the information and risk factors about the
Nuclear Power Notes contained in Appendix IV to this Announcement
and to the illustrations of the potential payments that may accrue
to the Nuclear Power Notes in different scenarios contained in
Appendix IV. British Energy Shareholders should note that the
Nuclear Power Notes will not be listed by the UKLA. It is,
however, intended that they will be admitted to trading on PLUS-
quoted and potentially another EEA exchange.
The British Energy Board believes that, in reaching a decision
whether to elect for the Partial CVR Alternative, British Energy
Ordinary Shareholders should take into account among others, these
factors:
* that any payments under the Nuclear Power Notes will be
spread over the next 10 years;
* that trading in them could be illiquid or otherwise
affected by factors not directly related to the
electricity market or British Energy's output. This may
affect the price which could be obtained on any sale
during the lifetime of the Nuclear Power Notes;
* that the price and value of the Nuclear Power Notes and
any payments under the Nuclear Power Notes may fluctuate
significantly over their life;
* that:
*
-- increased output from British Energy's existing
nuclear power stations; or
-- higher output resulting from station life
extensions; or
-- a sustained period of wholesale power prices at
levels such as have been experienced recently,
may cause the Partial CVR Alternative to pay a
higher amount over time than the Cash Offer, as
illustrated in Part 4 of Appendix IV; and
* that:
*
-- unplanned large output losses (such as British
Energy has experienced in 2006/07 and 2007/08); or
-- earlier than currently anticipated closure of one
or more of the power stations; or
-- a sustained period of lower than current wholesale
electricity prices, could have a significantly
detrimental impact on any payout from the Nuclear
Power Notes.
Further information about the Partial CVR Alternative and the
Nuclear Power Notes (including risk factors in addition to those
contained in Appendix IV to this Announcement) will be provided in
the Offer Document and the Prospectus which will be posted/made
available in due course.
British Energy Ordinary Shareholders who wish to accept the
Ordinary Offer are strongly recommended to take their own
independent advice having regard to their own particular
circumstances and investment objectives before deciding whether to
opt for the Cash Offer and/or the Partial CVR Alternative.
Arrangements with HM Government
HM Government's energy policy has been developed in recognition
that new nuclear power stations can help the UK to meet its
objectives on climate change and energy security, at a time of
increasing energy demand and finite and decreasing resources.
While pursuing its ambition to become an active player in the
nuclear revival in the UK, EDF recognizes HM Government's policy
of ensuring that there is more than one new nuclear operator in
the UK.
As stated above, NLF (at the direction of the Secretary of State)
has entered into an irrevocable undertaking with Lake Acquisitions
to exercise the NLF Conversion Right and accept the Convertible
Offer in respect of its entire resulting holding provided that the
Offers have been or will be, upon receipt of such acceptance from
NLF, declared unconditional in all respects. British Energy also
has the benefit of certain provisions in this irrevocable
undertaking.
EDF, the Secretary of State and the NDA have also entered into
agreements, conditional on the Acquisition becoming wholly
unconditional, which require EDF, in certain circumstances, to
dispose of specified areas of land in the vicinity of existing
nuclear sites including some land currently owned by British
Energy. EDF's objective in entering into these arrangements is to
ensure that the Enlarged Group has access to sites suitable for
the construction of four new EPR type nuclear reactors in the UK.
The agreements should also facilitate the entry of other new
nuclear power generators into the UK, which will help achieve an
HM Government policy objective.
The Restructuring Agreements were originally entered into in
January 2005 by British Energy with, amongst others, the Secretary
of State as part of the financial restructuring plan which British
Energy agreed with certain key creditors and HM Government. Under
these Restructuring Agreements, in relation to the British Energy
Group's existing nuclear operations and subject to certain
exceptions:
* NLF (at the direction of the Secretary of State) agreed to
fund, to the extent of its assets: (i) qualifying
uncontracted nuclear liabilities; and (ii) qualifying
costs of decommissioning in relation to the British Energy
Group's existing nuclear power stations; and
* the Secretary of State agreed to fund: (i) qualifying
uncontracted nuclear liabilities and qualifying costs of
decommissioning to the extent that they exceed the assets
of NLF; and (ii) subject to a cap, qualifying contracted
liabilities for historic spent fuel of the British Energy
Group.
The Secretary of State has agreed, and has directed NLF to
consent, conditional on the Acquisition becoming wholly
unconditional, to limited amendments to the Restructuring
Agreements in connection with the Acquisition. These amendments
do not impact their respective contractual funding commitments to
the British Energy Group. The amendments, among other things and
subject to exceptions, restrict the rights and obligations imposed
by the Restructuring Agreements on British Energy and its
subsidiaries and subsidiary undertakings and, accordingly, do not
extend similar rights and obligations to EDF, or its subsidiaries
and subsidiary undertakings.
The State Aid Deed was originally entered into on Oct. 8, 2004,
pursuant to which British Energy Limited (formerly British Energy
plc) and, following completion of the Restructuring Plan, British
Energy have undertaken to HM Government to comply with
restrictions that substantially mirror the restrictions imposed on
HM Government by the 2004 State Aid Decision together with
additional reporting and compliance obligations.
Limited amendments will be made to the State Aid Deed, conditional
on the Acquisition becoming wholly unconditional.
Reasons for the Offers
British Energy's management has made considerable progress since
the implementation of the financial restructuring plan in 2005 and
has re-established British Energy as a key contributor to the UK's
generation sector. For EDF, the Acquisition represents a unique
opportunity to:
* become an active player in the growth of the UK nuclear
industry, in line with its aim of constructing, operating
and investing in ten new EPR type nuclear power stations
worldwide to be in operation by 2020, using British
Energy's and EDF's combined nuclear expertise and skills
to build four EPRs in the UK while maximizing the
operational life of the existing British Energy fleet
where economic and safe to do so;
* reinforce its assets and employees' skills in the UK, a
long-time core market, as part of its strategy to extend
its position in Europe by securing additional skills and
expertise; and
* expand operations in a market where building new nuclear
facilities as soon as possible is a key element of HM
Government's policy to secure future energy supply, by
diversifying the energy generation mix, and to meet the
UK's obligations on climate change.
The combination of British Energy and EDF is expected to create
synergies in New Nuclear Build and generally through increased
trading, retail growth opportunities and cost reductions.
EDF recognizes and appreciates the importance of British Energy's
employees and has given assurances to British Energy that the
existing employment rights, including pension rights, of the
management and employees of British Energy will be fully
safeguarded upon the Offers becoming or being declared
unconditional in all respects.
Discussions with Centrica
EDF and Centrica are in discussions in relation to an option for
Centrica to acquire a 25 per cent. interest in Lake Acquisitions
at the same implied price per share as EDF pays for British
Energy, subject to certain costs to be agreed. Centrica would
also be entitled to participate in EDF's New Nuclear Build
activities in the UK on a 75/25 (EDF/Centrica) basis.
Any agreement would be subject to conditions precedent including
completion of the Acquisition by Lake Acquisitions and merger
control approval from the UK competition authorities . No
agreement has yet been reached with Centrica. There is no
certainty that EDF and Centrica will succeed in reaching legally
binding agreements or that the conditions to the implementation of
such agreements will be satisfied.
EDF's willingness to proceed with the Acquisition is in no way
dependent upon reaching an agreement with Centrica; the making of
the Offers is not conditional upon any such agreement being
reached between EDF and Centrica and there will be no conditions
to the Offers relating to any such agreement. EDF retains sole
control and discretion in relation to the Acquisition, including
the structure and conduct of the Offers and Centrica will exercise
no control or influence over the terms or conditions of the
Offers.
Indicative Timetable
The Offers are on and subject to the terms and conditions set out
in Appendix I to this Announcement and the further terms and
conditions to be set out in the Offer Document. In particular,
the Ordinary Offer will be conditional upon:
* Lake Acquisitions having acquired, agreed to acquire, or
received valid acceptances in respect of not less than 75
per cent. of the voting rights relating to British Energy
Shares to which the Offers relate (or such lower
percentage as Lake Acquisitions may decide provided that
such condition will not be satisfied unless Lake
Acquisitions has acquired, agreed to acquire, or received
valid acceptances in respect of more than 50 per cent. of
the voting rights attaching to British Energy Shares)
provided that a valid acceptance has been received from
NLF in respect of its British Energy Convertible Shares;
* insofar as the Acquisition falls within the scope of the
European Commission Merger Regulation (ECMR), the European
Commission issuing or having been deemed to have issued a
decision pursuant to Article 6(1)(b) or 6(2) of the ECMR
that the Acquisition is compatible with the common market
(a Phase I clearance decision) or the European Commission
taking a decision to refer the whole or part of the
Acquisition to the competent authorities of one or more
Member States under Article 9(1) of the ECMR and the
relevant authority taking a decision equivalent to a Phase
I clearance decision and with respect to any part of the
Acquisition retained by the European Commission, it taking
a Phase I clearance decision;
* to the extent that they have jurisdiction to review the
Acquisition, confirmation having been received in terms
and in a form reasonably satisfactory to Lake Acquisitions
that neither the Office of Fair Trading nor the Secretary
of State intends to refer the Acquisition to the UK
Competition Commission; and
* neither GEMA nor HSE having sought and not having
indicated any intention to: (i) seek any modifications to,
issue any directions or attach any conditions to, or vary
or revoke any existing conditions to, any license held by
any member of the British Energy Group or EDF Energy
Group, as the case may be, under the Electricity Act 1989
or Nuclear Installations Act 1965; or (ii) seek any
undertakings of assurances from any member of the EDF
Group, any of which would be material in context of the
British Energy Group taken as a whole, or the EDF Energy
Group taken as a whole or the EDF Group taken as a whole,
or the Acquisition, as applicable, except on terms
reasonably satisfactory to Lake Acquisitions.
Should the conditions to the Offers be satisfied, the Acquisition
is expected to become effective in the last quarter of 2008 or
early 2009. In the event that the European Commission instigates
proceedings under Article 6(1)(c) of the ECMR or, to the extent it
has jurisdiction, the Office of Fair Trading refers the
Acquisition to the UK Competition Commission (Phase II
investigation) and the Acquisition is subsequently:
* approved by the European Commission issuing a decision
under Article 8(1) or 8(2) of the ECMR ;
and/or
* approved by the UK Competition Commission either in whole
or in part within the stipulated time period and, to the
extent that any remedies are considered appropriate,
within the requisite time for the agreement to and
acceptance by the UK Competition Commission of any
remedies reasonably acceptable to EDF which are required
to remedy, mitigate or prevent the significant lessening
of competition found by the UK Competition Commission in
its decision or the making by the UK Competition
Commission of any order reasonably acceptable to EDF to
the same effect,
EC Approval and/or CC Approval, as the case may be, being referred
to as 'Phase II Approval', EDF has given a conditional undertaking
to British Energy to make a new offer, subject to an agreed upward
price adjustment to reflect the delay in receipt of consideration
by British Energy Shareholders. Any breach of this undertaking
will entitle British Energy to claim a reverse break fee from EDF,
which shall be the sole remedy for any such breach.
Commenting on the Offer, Sir Adrian Montague, Chairman of British
Energy said: "Today's announcement is very important in the
development of British Energy and will enable us to build on the
work started at the time of the relisting of the company in
January 2005.
It will also allow us to develop fully British Energy's role in
New Nuclear Build, improve British Energy's financial strength and
in so doing help create a secure, long term future for our
business and our staff.
Together, the businesses of EDF and British Energy will have
broader access to markets and a unique blend of engineering
expertise, project management skills and physical assets available
for the development of New Nuclear Build in the UK. In addition,
this combination will be better able to prolong the contribution
of our existing fleet to the energy needs of the UK.
For our shareholders, the Offers represent good value and an
opportunity, if desired, to continue to participate in the
performance of the existing nuclear fleet and retain exposure to
UK power prices."
Commenting on the Offer, Pierre Gadonneix, Chairman and CEO of EDF
said: "We are delighted that the British Energy Board is
unanimously recommending our offer to its shareholders. EDF and
British Energy complement each other perfectly and this is an
exciting announcement for us both. For EDF, this is an historic
milestone in our strategic development plans in Europe and enables
the EDF Group to develop significantly in the UK, one of its key
markets. For British Energy, it places it at the vanguard of New
Nuclear Build in the UK and at the center of the global nuclear
renaissance.
There is a great fit between our two companies. Combining the
people, knowledge, skills, experience and assets of EDF and
British Energy will set the standard for the delivery of safe,
economic, low carbon generation both in Britain and around the
world. We look forward to welcoming British Energy's management
and employees into the Enlarged Group.
For UK business and retail customers, this paves the way for huge
investment in secure, economic energy supplies. This investment
will help secure affordable energy for our customers for the long
term. It is a responsible step towards addressing their concerns
about wholesale energy prices and dwindling world fossil fuel
supplies.
In the UK, the EDF Energy Group is committed to reducing the
carbon intensity of its generation by 60 per cent. by 2020 by
investing in a diverse energy mix including nuclear and
renewables. Together with British Energy, we will build on that
commitment through helping customers save energy, cut carbon
emissions and safeguard the needs of the planet."
Merrill Lynch is acting as financial adviser and corporate broker
to EDF and Lake Acquisitions. BNP Paribas is also acting as
financial adviser to EDF and Lake Acquisitions.
Rothschild is acting as lead financial adviser to British Energy.
Gleacher Shacklock is acting as independent financial adviser to
British Energy for the purposes of Rule 3 of the Code. JPMorgan
Cazenove and Citi are acting as joint corporate brokers to British
Energy and are also providing financial
advice to British Energy.
About EDF
The EDF Group is an integrated energy company with a presence in a
wide range of electricity related businesses: generation,
transmission, distribution, sale and energy trading. The EDF
Group is France's historic electricity operator and has a strong
position in the three other main European markets (Germany, the UK
and Italy), making it one of Europe's main electricity concerns as
well as a recognized player in the gas industry. With worldwide
installed power capacity totaling 126.7GW (124.5GW in Europe, 63GW
from nuclear generation) and global generation of 610.6TWh
(418.0TWh from nuclear generation) in 2007, it has the largest
generating capacity of all the major European energy corporations
with the lowest level of carbon dioxide emissions due to the
significant proportion of nuclear and hydroelectric power in its
generation mix. The EDF Group employs over 158,000 people
worldwide. The EDF Group supplies gas, electricity and associated
services to more than 38 million customer accounts worldwide
(including more than 28 million in France and 5.5 million in the
UK).
Lake Acquisitions is a wholly-owned subsidiary of EDF established
for the purpose of making the Offers.
About British Energy
Headquartered in Livingston, Scotland, British Energy Limited
-- http://www.british-energy.com/-- is the UK's largest
electricity generator, employing over 6,000 people. The British
Energy Group owns and operates eight nuclear power stations in the
UK: seven of these are Advanced Gas-cooled Reactor (AGR) stations,
located at Dungeness, Hartlepool, Heysham (two stations), Hinkley
Point, Hunterston, Torness and the only civil Pressurised Water
Reactor (PWR) station in the UK, located at Sizewell in Suffolk.
British Energy also owns and operates the Eggborough coal-fired
power station in Yorkshire. British Energy's total current
capacity is 10.6GW (of which 8.7GW from nuclear generation) with
delivered output of 58.4TWh (of which 50.3TWh comprises nuclear
output) for the year ended March 2008. British Energy is the
lowest carbon emitter of the UK's major electricity generators.
* * *
British Energy Ltd. continues to carry a Ba2 long-term corporate
family rating from Moody's with stable outlook.
The company still carries a BB+ long-term issuer default rating
from Fitch with stable outlook.
BRITISH ENERGY: Centrica in Talks to Acquire 25% Stake
------------------------------------------------------
On Wednesday, Sept. 24, 2008, Lake Acquisitions Limited, a
subsidiary of EDF SA, announced a recommended offer for the entire
issued share capital of British Energy Group plc.
Centrica plc and EDF S.A. are in discussions in relation to an
option for Centrica to acquire a 25 per cent interest in Lake
Acquisitions following the completion by Lake Acquisitions of its
acquisition of British Energy. The acquisition by Centrica would
be at the same implied price per share as EDF pays for British
Energy, subject to certain costs to be agreed.
EDF would retain control of British Energy through its 75 per cent
interest in Lake Acquisitions and be responsible for running all
British Energy's power stations. Centrica's 25 per cent interest
in Lake Acquisitions would give Centrica the right to offtake at
least 25 per cent of the uncontracted output of
British Energy's existing generation fleet. Profits of Lake
Acquisitions would be distributed to EDF and Centrica in
proportion to their equity interests.
Centrica would also be entitled to participate in EDF's nuclear
new build activities in the UK on a 75/25 (EDF/Centrica) basis,
with EDF leading the developments and being responsible for the
building and operation of the new nuclear power stations.
The terms are reflected in a non-legally binding Memorandum of
Understanding.
The proposed transaction would significantly address Centrica's
key strategic objective of increasing its vertical integration,
thereby reducing its exposure to volatile wholesale gas and
electricity prices.
Centrica would expect to fund the acquisition of its stake in
British Energy through a combination of debt and equity, with the
objective of maintaining credit ratings in the A range. Completion
of any acquisition by Centrica would be subject to the fulfilment
of certain conditions precedent, including
regulatory approvals.
There can be no certainty that Centrica will reach agreement with
EDF on the arrangements described above. A further announcement
will be made in due course.
Goldman Sachs International and Credit Suisse are acting as
financial advisers to Centrica.
About British Energy
Headquartered in Livingston, Scotland, British Energy Limited
-- http://www.british-energy.com/-- is the UK's largest
electricity generator, employing over 6,000 people. The British
Energy Group owns and operates eight nuclear power stations in the
UK: seven of these are Advanced Gas-cooled Reactor (AGR) stations,
located at Dungeness, Hartlepool, Heysham (two stations), Hinkley
Point, Hunterston, Torness and the only civil Pressurised Water
Reactor (PWR) station in the UK, located at Sizewell in Suffolk.
British Energy also owns and operates the Eggborough coal-fired
power station in Yorkshire. British Energy's total current
capacity is 10.6GW (of which 8.7GW from nuclear generation) with
delivered output of 58.4TWh (of which 50.3TWh comprises nuclear
output) for the year ended March 2008. British Energy is the
lowest carbon emitter of the UK's major electricity generators.
* * *
British Energy Ltd. continues to carry a Ba2 long-term corporate
family rating from Moody's with stable outlook.
The company still carries a BB+ long-term issuer default rating
from Fitch with stable outlook.
BRITISH ENERGY: UK Gov't Welcomes EDF's GBP12.5BB Takeover Offer
----------------------------------------------------------------
The UK Government welcomed EDF's proposed GBP12.5 billion takeover
offer for British Energy Group plc and the British Energy Board's
recommendation of the offer to its shareholders. The Government
has committed to accept the cash offer of 774p per share for its
36 per cent stake held by the Nuclear Liabilities Fund, subject to
certain conditions.
Prime Minister Gordon Brown said: "New nuclear is becoming a
reality. This deal is good value for the taxpayer and a
significant step towards the construction of a new generation of
nuclear stations to power the country. Nuclear is clean, secure
and affordable; its expansion is crucial for Britain's long term
energy security, as we reduce our oil dependence and move towards
a low carbon future."
Business Secretary John Hutton said: "Nuclear has the clear
potential to play a central role in giving our country a diverse
energy mix. It will be indispensable for our long term energy
security.
"Our ambition is to have more than one nuclear operator and so to
accelerate the building of new nuclear power stations. There are
strong signals of an appetite for this from the power industry and
today's announcements mean a number of sites could be made
available for others to play a part.
"EDF's recommended GBP12.5 billion bid to buy British Energy would
be one of the largest foreign direct investments ever made in
Britain and demonstrates the attractiveness of the UK market to
the private sector. And today is just the start. EDF's plans to
build four new nuclear reactors will also create a wide range of
jobs and a wealth of opportunities for Britain's manufacturers."
EDF also announced that as well as continuing to operate British
Energy's existing fleet of eight nuclear power stations it
proposes a further substantial investment to build four new
reactors with total generating capacity of 6.4GW of electricity.
It wants to construct and operate two reactors each at Hinkley
Point in Somerset and Sizewell in Suffolk and has said that under
its plans the first new reactor could be on-stream by the end of
2017.
The Government has reached agreement with EDF that the company
will sell land to other potential nuclear operators at some
specific sites in certain circumstances. This move is expected to
accelerate development of new nuclear power stations in the UK by
making desirable sites available to at least one further potential
operator. The Nuclear Decommissioning Authority has announced
that it intends to make available for sale through a competitive
sale process some specific sites of its own that could be suitable
for new nuclear build.
The terms of the proposed EDF offer, which is still subject to
shareholder acceptance and regulatory approval, represent value
for money for the taxpayer. The deal would mark the successful
culmination of the restructuring of British Energy and provide
funding for the future decommissioning of the company's eight
existing nuclear power stations.
Land Agreements
Under an agreement with the Government, EDF has confirmed that, if
the offer is successful, it will sell land to other potential
nuclear operators in certain pre-agreed circumstances, depending
principally on the progress of planning consents at Hinkley Point
and Sizewell. This agreement covers British Energy's land at
Bradwell (as well as any land at Bradwell which EDF may acquire
from the NDA) and land alongside existing stations at either
Dungeness or Heysham.
A process is also under way to gauge interest in land belonging to
the NDA, some of which could also be used for new nuclear build.
The NDA earlier this month announced it will offer for sale land
it owns at Wylfa, Oldbury and Bradwell via a competitive sale
process. EDF will not be permitted to bid for the NDA land at
Wylfa and Oldbury under this process, but it will be allowed to
bid for the NDA land at Bradwell. The NDA has entered into a
conditional agreement with EDF concerning the simultaneous
marketing of land the latter owns at Wylfa alongside the NDA's
land at Wylfa. NDA-owned land near the Sellafield site is also
being actively considered and will be subject to a separate
statement.
Neither this NDA land sale process nor the sale of British Energy
to EDF pre-empts or prejudices proper consideration of proposals
for power stations under the Government's Strategic Siting
Assessment and the planning system. The Strategic Siting
Assessment will determine which of those sites nominated by
developers should be included in a Nuclear National Policy
Statement for planning purposes.
EDF Proposals
The four new reactors that EDF is proposing to build would
generate clean electricity to meet more than 13% of forecast UK
electricity demand by the early 2020s and equate to a saving of
more than 14 million tonnes of CO2 emissions a year, helping
tackle climate change.
EDF, which has been established in the UK for ten years and
already employs 13,000 people in its UK subsidiary EDF Energy,
said that significant new employment and career opportunities
relating to new build would be created by its investment. It has
committed to maintaining British Energy's East Kilbride office and
anticipates that the staff at East Kilbride and other British
Energy locations including Barnwood would benefit from the new
opportunities.
Nuclear Liabilities Fund
The Government's stake in British Energy is held by the NLF which
is a segregated fund with its own trustees which was set up at the
time of British Energy's privatization in 1996 to meet the
eventual decommissioning costs of its existing nuclear power
stations.
In 2002, when British Energy was facing an uncertain future, the
Government stepped in to support a restructuring of the company in
order to ensure the safety of nuclear power and the security of
the country's electricity supplies. The restructuring agreements
which cover the nuclear decommissioning liabilities of British
Energy will remain in place and will conditionally be amended to
reflect ownership of British Energy by EDF and the development of
new nuclear generation. As part of the restructuring, which came
into effect in 2005, the NLF was given GBP275 million in British
Energy bonds and the contractual right to receive around two
thirds of its annual adjusted free cash flow. This contractual
right is convertible into shares in British Energy. In June 2007,
the NLF converted approximately half of this 'cash sweep' into
shares in British Energy which were sold on to institutional
investors, leaving the NLF with a stake of around 36 per cent in
the company.
A sale of this remaining stake at the offer price of 774p per
share announced today would raise proceeds of approximately GBP4.4
billion for the NLF. Together with its other assets, these funds
(amounting in aggregate to about GBP8 billion) should, at today's
prices, more than cover the current estimated costs of
decommissioning liabilities of British Energy's existing nuclear
power stations. The costs of cleaning up any new nuclear power
stations will be required to be met by their operator.
Completion of the transaction is expected to be in the fourth
quarter of 2008 or in early 2009, subject to clearance by European
competition authorities and other customary conditions. It is
expected that the UK's Office of Fair Trading and Ofgem will feed
their views on the proposed transaction into the European
competition process.
All nuclear sites in the UK are and will continue to be subject to
the stringent regulatory regime (including oversight by the
Nuclear Installations Inspectorate, the Environment Agency, the
Scottish Environment Protection Agency and the Office for Civil
Nuclear Security) to ensure they operate in accordance with high
safety, security and environmental standards.
About British Energy
Headquartered in Livingston, Scotland, British Energy Limited
-- http://www.british-energy.com/-- is the UK's largest
electricity generator, employing over 6,000 people. The British
Energy Group owns and operates eight nuclear power stations in the
UK: seven of these are Advanced Gas-cooled Reactor (AGR) stations,
located at Dungeness, Hartlepool, Heysham (two stations), Hinkley
Point, Hunterston, Torness and the only civil Pressurised Water
Reactor (PWR) station in the UK, located at Sizewell in Suffolk.
British Energy also owns and operates the Eggborough coal-fired
power station in Yorkshire. British Energy's total current
capacity is 10.6GW (of which 8.7GW from nuclear generation) with
delivered output of 58.4TWh (of which 50.3TWh comprises nuclear
output) for the year ended March 2008. British Energy is the
lowest carbon emitter of the UK's major electricity generators.
* * *
British Energy Ltd. continues to carry a Ba2 long-term corporate
family rating from Moody's with stable outlook.
The company still carries a BB+ long-term issuer default rating
from Fitch with stable outlook.
BRITISH ENERGY: Fitch Puts 'BB+' LT ID Rating Under Watch Positive
------------------------------------------------------------------
Fitch Ratings has placed British Energy Group plc's and British
Energy Bond Finance plc's (BEBF, formerly British Energy Holdings
plc) 'BB+' Long-term Issuer Default Ratings on Rating Watch
Positive. BEBF's amortizing bonds - rated 'BB' - are also put on
RWP. The rating actions follow the announcement of a proposed
takeover by France's EDF SA ('AA-'/ 'F1+'/Rating Watch Negative).
Fitch understands that BEG's current operations, future new-build
activities and associated finances are to be undertaken by a new
wholly owned subsidiary - Lake Acquisitions Limited - and ring-
fenced from the rest of the EDF group. The RWP reflects the
likely presence of strong legal, strategic and operational ties of
this entity to EDF SA. This will likely result in a single-notch
upgrade of the IDRs from their current levels, in line with
Fitch's parent and subsidiary rating linkage methodology
(published June 2007).
BEG's bond documentation stipulates that a change of control would
trigger an offer for BEBF's amortizing bonds by BEG or a third
party. The rating watch also reflects Fitch's belief that the
bonds will either be refinanced or prepaid. A bond prepayment
offer to BEBF's bondholders is likely to be accepted in whole or
in part in the light of current market conditions.
Additionally, to the extent that the offer may not be accepted in
its entirety by BEBF bondholders the RWP also reflects the benefit
BEG would achieve by being part of the larger EDF Group. Fitch
also views the cessation of the Nuclear Liabilities Fund cash
sweep of 35.58% of BEG's current adjusted cash-flows and the
potential termination of restructuring's target cash-flow reserve
requirements (GBP490 million plus the amount by which electricity
trading collateral exceeds GBP200 million), upon an upgrade to
investment-grade, as additional benefits.
Fitch believes the acquisition is favorable to BEG due to EDF's
position as a leading European nuclear expert, with a total of 58
nuclear plants in operation. It will also offer BEG additional
engineering expertise and the potential for BEG to achieve a more
stable profile by becoming part of the wider EDF UK Electricity
group. A substantial benefit concerning new-build is EDF's
partial ownership of leading Nuclear Vendor Areva SA - designer of
the European pressurized reactor. BEG has already established
2016 national grid connections for several EPRs as part of its
ambition to become a serious player in UK nuclear new-build.
Fitch also views BEG is an attractive target for EDF SA due to its
position as the sole UK commercial nuclear operator with 20% of
the country's generating capacity, owner of key sites that are
likely to form the basis of the UK's new-build program and its
substantial knowledge of chief nuclear regulators - the Health and
Safety Executive's Nuclear Installations Inspectorate and the
Environmental Agency. The acquisition is in line with EDF's
strategy of developing 10 nuclear reactors worldwide by 2020 in
target countries: US, UK, China and potentially South Africa.
However, this is balanced against the likely imminent negative
financial impact of the acquisition consideration on leverage.
Following a EU phase one competition investigation, Fitch
understands the deal may be approved in late 2008/early 2009.
Fitch aims to resolve the RWP during this period, when more
clarity on the deal structure (with Centrica potentially acquiring
a 25% stake in Lake Acquisitions) emerges.
BROKER 4 BROKER: Brings in Liquidators from Mazars
--------------------------------------------------
Robert David Adamson and Paul Charlton of Mazars LLP were
appointed joint liquidators of Broker 4 Broker Ltd. on Sept. 9,
2008, for the creditors' voluntary winding-up proceeding.
The company can be reached at:
Broker 4 Broker Ltd.
c/o Mazars LLP
Mazars House
Gelderd Road
Gildersome
Leeds
LS27 7JN
England
CAR CARE: Goes Into Liquidation
-------------------------------
Car Care (Gosport) Ltd. has gone into liquidation after eight
years in business, NS-Fareham & Gosport reported. Bob Thompson
has been appointed liquidator with Rendell Thompson.
According to the report, in August, the company decided not to
continue its business as a reason of its liabilities.
Around nine employees were likely to be affected, the report said.
Based in Hampshire, United Kingdom, Car Care (Gosport) Ltd. sells
and repairs cars.
DIOMED HOLDINGS: Plan Goes to Creditors for Confirmation Vote
-------------------------------------------------------------
Bill Rochelle of Bloomberg News reports that the United States
Bankruptcy Court for the District of Massachusetts will convene a
hearing on Nov. 4, 2008, to consider confirmation of the
liquidating Chapter 11 plan of Diomed Holdings, Inc., and its
debtor-affiliate Diomed, Inc.
Diomed obtained permission from the Court in June 2008 to sell its
assets for US$8 million to AngioDynamics Inc. plus the assumption
of specified liabilities. The Debtors are now holding US$7.7
million for distribution to creditors, Mr. Rochelle says, citing
the disclosure statement approved on Sept. 18 by the Court.
The Plan provides for a 20.6% recovery for unsecured creditors.
A distribution to unsecured creditors was made possible by a
settlement of a US$5.7 million claim of secured debenture
holders who agreed to take US$4.7 million, according to the
report.
Another creditor asserting a US$40 million claim agreed to accept
an unsecured claim for US$3 million and a claim of US$300,000
to be paid in cash, according to the report.
About Diomed Holdings
Based in Andover, Massachussetts, Diomed Holdings Inc. (AMEX:
DIO) -- http://www.evlt.com/and http://www.diomedinc.com/--
develops and commercializes minimal and micro-invasive medical
procedures that use its proprietary laser technologies and
disposable products. Diomed's EVLT(R) laser vein ablation
procedure is used in varicose vein treatments. Diomed also
provides photodynamic therapy for use in cancer treatments, and
dental and general surgical applications. Diomed Holdings has
no assets other than its 100% ownership in Diomed Inc., its
operating unit. Diomed Inc. owns 100% of Diomed Ltd. in the
United Kingdom and Diolaser Mexico SA de CV in Mexico. The
company also has an affiliate in Asia through Diomed Hong Kong.
The company and its affiliate, Diomed Inc., filed for Chapter 11
protection on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40750
and 08-40749). Douglas R. Gooding, Esq., at Choate Hall &
Stewart LLP, is the Debtors local counsel and McGuireWoods LLP
is its general counsel. Goulston & Storrs P.C. is counsel to
the Official Committee of Unsecured Creditors. The company's
schedules show total assets of US$19,936,479 and total
liabilities of US$14,743,485.
In connection with the Chapter 11 filings, Diomed Ltd. filed for
Administration under the laws of the United Kingdom in the
Cambridge County Court. Steven Mark Law of Ensors was named as
administrator.
DUNEDIN: Industrious Commercial Portfolio Goes Into Receivership
----------------------------------------------------------------
Dunedin's GBP520 million Industrious commercial portfolio has been
forced into receivership after attempts to secure short-term
working capital to cover breach of certain debt covenants failed,
Daniel Thomas of the Financial Times reports.
Alan Bloom, along with Ernst & Young partners Alan Hudson and
Colin Dempster, have been appointed joint administrative receivers
of Dunedin Property Capital Fund Limited and Dunedin Property
Industrial Fund, the two holding companies that own the
Industrious portfolio, the report says.
Industrious, the report discloses, owns and manages about 120
industrial, office and warehouse estates in the UK totaling 10m sq
ft of commercial property space, which generates GBP39 million in
rent every year.
The report relates that the 75% loan-to-value covenant on the
senior part of a GBP473 million loan from the Royal Bank of
Scotland was breached over the summer, when the properties were
valued at GBP521.4 million. The value of the Industrious
portfolio fell to GBP521 million at June 30 from GBP631 million
last September.
The report notes that while there have already been expressions of
interest in a sale of the properties, including from investment
group Highcross and Citicourt Investment Partners, the receivers
could opt to restructure the debt rather than simply sell the
assets.
EQUUS LTD: Calls in Liquidators from Tenon Recovery
---------------------------------------------------
Nigel Ian Fox and Alexander Kinninmonth of Tenon Recovery were
appointed joint liquidators of Equus (Dorset) Ltd. on Sept. 9,
2008, for the creditors' voluntary winding-up proceeding.
The company can be reached at:
Equus (Dorset) Ltd.
c/o Tenon Recovery
Highfield Court
Tollgate
Chandlers Ford
Eastleigh
Hampshire
SO53 3TZ
England
EUROSAIL-UK: Fitch 'BB'-Rated Class E1C Notes on Negative Watch
---------------------------------------------------------------
Fitch Ratings has placed all nine tranches from Eurosail-UK 07-4BL
PLC on Rating Watch Negative following the downgrade of Lehman
Brothers Holdings Inc. Eurosail-UK 07-4BL PLC has counterparty
exposure to LBHI or its subsidiaries on multiple levels, including
currency swaps. Due to the affect of the currency exposure in the
transaction, subsequent rating action could potentially result in
multi-category downgrades.
Eurosail-UK 07-4 BL PLC
-- Class A1a (ISIN XS0311594740) 'AAA'; On Rating Watch Negative
-- Class A1c (ISIN XS0311598907) 'AAA'; On Rating Watch Negative
-- Class A2a (ISIN XS0311680747) 'AAA'; On Rating Watch Negative
-- Class A3a (ISIN XS0311702657) 'AAA'; On Rating Watch Negative
-- Class A3c (ISIN XS0311704356) 'AAA'; On Rating Watch Negative
-- Class B1a (ISIN XS0311705759) 'AA'; On Rating Watch Negative
-- Class C1a (ISIN XS0311708696) 'A-' (A minus); On Rating Watch
Negative
-- Class D1a (ISIN XS0311713001) 'BBB'; On Rating Watch Negative
-- Class E1c (ISIN XS0311717416) 'BB'; On Rating Watch Negative
The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risks the swaps were
designed to hedge. In particular, the transaction includes a
currency swap to exchange the receipts that are received in GBP
into EUR to pay interest and principal on the notes. Fitch aims
to resolve the RWN once information is obtained regarding
replacement swap counterparties.
Because current currency exchange rates have moved in an
unfavourable way for the transaction Fitch believes it is unlikely
that an alternative currency swap provider would match the current
swap terms. The issuer could choose to replace the currency swap
under new terms or leave the exposure to currency risk unhedged.
If the swap were to be replaced, Fitch estimates that based on
current exchange rates, the transaction would be significantly
under- collateralized, potentially resulting in multi-category
downgrades.
In addition, the transaction would potentially have an interest
shortfall at each interest payment date. Leaving the currency
risk unhedged would expose the transaction to any future changes
to exchange rates as well as any movements which have occurred
since closing. If the currency swap provider were not replaced,
Fitch would assess the transaction based upon the agency's
currency risk criteria.
The transaction also benefited from a basis rate swap,
fixed/floating rate swap and an interest cap, all provided by
Lehman Brothers Special Financing, Inc. As of the last IPD in
June 2008 the fixed/floating swap generated 0.98% of the available
interest revenue, and the basis rate swap generated a further
0.03% of the available revenue. The impact of the fixed/floating
swap will reduce over time as loans revert to variable rate, with
the majority of loans reverting by June 2009. The basis rate swap
can potentially cause more of an affect on portfolio income over
time, as approximately 12.62% of the pool will ultimately
reference a variable rate linked to the Bank of England base rate,
compared to approximately 0.61% at the June 2008 IPD.
This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal. However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.
Fitch is continuing to assess the other European RMBS transactions
as detailed in Fitch's comment of 16 September, 'Fitch Assessing
Lehman Counterparty Exposure in 31 European RMBS Transactions'.
Further commentary or rating actions will take place as warranted.
EUROSAIL-UK: Fitch Puts Neg. Watch After Cuts on LBHI's Ratings
---------------------------------------------------------------
Fitch Ratings has placed Eurosail - UK 2007-3 BL plc on Rating
Watch Negative following the downgrade of Lehman Brothers Holdings
Inc. Eurosail - UK 2007-3 BL plc has counterparty exposure to
LBHI or its subsidiaries on multiple levels, including currency
swaps. Due to the affect of the currency exposure in the
transaction, subsequent rating action could potentially result in
multi-category downgrades.
Eurosail - UK 2007-3 BL plc
-- A1b (ISIN XS0308649309) 'AAA'; On Rating Watch Negative
-- A1c (ISIN XS0308653244) 'AAA'; On Rating Watch Negative
-- A2a (ISIN XS0308648673) 'AAA'; On Rating Watch Negative
-- A2b (ISIN XS0308650224) 'AAA'; On Rating Watch Negative
-- A2c (ISIN XS0308659795) 'AAA'; On Rating Watch Negative
-- A3a (ISIN XS0308666493) 'AAA'; On Rating Watch Negative
-- A3c (ISIN XS0308710143) 'AAA'; On Rating Watch Negative
-- B1a (ISIN XS0308672384) 'AA'; On Rating Watch Negative
-- B1c (ISIN XS0308716421) 'AA'; On Rating Watch Negative
-- C1a (ISIN XS0308673192) 'A-' (A minus); On Rating Watch
Negative
-- C1c (ISIN XS0308718047) 'A-' (A minus); On Rating Watch
Negative
-- D1a (ISIN XS0308673945) 'BBB'; On Rating Watch Negative
-- E1c (ISIN XS0308725844) 'BB+'; On Rating Watch Negative
-- ETc (ISIN XS0309312543) 'BB+'; On Rating Watch Negative
The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risks the swaps were
designed to hedge. In particular, the transaction includes a
currency swap to exchange the receipts that are received in GBP
into EUR and USD to pay interest and principal on the notes.
Fitch aims to resolve the RWN once information is obtained
regarding replacement swap counterparties.
Because current currency exchange rates have moved in an
unfavourable way for the transaction Fitch believes it is unlikely
that an alternative currency swap provider would match the current
swap terms. The issuer could choose to replace the currency swap
under new terms or leave the exposure to currency risk unhedged.
If the swap were to be replaced, Fitch estimates that based on
current exchange rates, the transaction would be significantly
under- collateralized, potentially resulting in multi-category
downgrades.
In addition, the transaction would potentially have an interest
shortfall at each interest payment date. Leaving the currency
risk unhedged would expose the transaction to any future changes
to exchange rates as well as any movements which have occurred
since closing. If the currency swap provider were not replaced,
Fitch would assess the transaction based upon the agency's
currency risk criteria.
The transaction also benefited from a basis rate swap,
fixed/floating rate swap and an interest cap, all provided by
Lehman Brothers Special Financing, Inc. As of the last IPD in June
2008 the fixed/floating swap generated 2.37% of the available
interest revenue, and the basis rate swap generated a further
0.22% of the available revenue. The impact of the fixed/floating
swap will reduce over time as loans revert to variable rate, with
the majority of loans reverting by June 2012. The basis rate swap
can potentially cause more of an affect on portfolio income over
time, as approximately 16.44% of the pool will ultimately
reference a variable rate linked to the Bank of England base rate,
compared to approximately 3.62% at the June 2008 IPD.
This transaction is serviced by Capstone Mortgage Services
Limited, a subsidiary of Lehman Brothers, which was recently
downgraded to a servicer rating of 'RPS3+'/Rating Watch Negative.
This transaction is not directly linked to Capstone and therefore
the downgrade of the servicer is expected to have no near-term
impact on the rating of this deal. However, Fitch will continue
to monitor the performance of this transaction and assess any
impact that the ongoing bankruptcy of Lehman Brothers has on the
ability of Capstone to service the mortgages.
Fitch is continuing to assess the other European RMBS transactions
as detailed in Fitch's comment of 16 September, 'Fitch Assessing
Lehman Counterparty Exposure in 31 European RMBS Transactions'.
Further commentary or rating actions will take place as warranted.
I D CONSTRUCTION: Taps Liquidators from PKF
-------------------------------------------
Kerry Bailey and Jonathan Newell of PKF (U.K.) LLP were appointed
joint liquidators of I D Construction Ltd. on
Sept. 8, 2008, for the creditors' voluntary winding-up proceeding.
The company can be reached at:
I D Construction Ltd.
c/o PKF (U.K.) LLP
Sovereign House
Queen Street
Manchester
M2 5HR
England
MARIE ANN: Appoints Liquidators from Mazars
-------------------------------------------
Tim Alan Askham and Robert David Adamson of Mazars LLP were
appointed joint liquidators of Marie Ann Peters Organisation Ltd.
on Sept. 8, 2008, for the creditors' voluntary winding-up
proceeding.
The company can be reached at:
Marie Ann Peters Organisation Ltd.
c/o Mazars LLP
Merchant Exchange
Whitworth Street West
Manchester
M1 5WG
England
MFI RETAIL: Could Go Into Administration; Seeks Buyer
-----------------------------------------------------
MFI Retail could fall into administration if a buyer could not be
found for the company in the coming weeks, the Sunday Times
reports.
According to the report, MFI's owner Merchant Equity Partners has
appointed Argyll Partners to urgently find investors to inject
fresh equity into the company.
MFI's owners, the report relates, have held talks with a number of
potential partners, including Homeform, which owns Moben Kitchens,
and Swedish retailer Nobia, which owns Magnet Kitchens in the UK.
MFI Retail is a retailer of quality fitted furniture in the UK.
Merchant Equity Partners acquired the company in October 2006.
SCOTIA LINEN: Tenon Sets Bids Closing Date September 29
-------------------------------------------------------
Due to the high level of interest in Scotia Linen Services, which
went into administration on Aug. 29, 2008, a closing date for
offers has been set for 12:00 p.m. on Monday Sept. 29, 2008.
Joint administrator Iain Fraser said that Tenon had now dispatched
over 30 sales packs and arranged several site visits.
"We have been very encouraged by the level of interest in the
business from across the UK, Iain Fraser said. Scotia Linen
Services is continuing to trade well and has received tremendous
support from customers, suppliers and staff. This has allowed us
to concentrate on managing the inquiries and ensuring interested
parties have every opportunity to view the business. It is
important they are aware of the closing date for offers and ensure
they have their bids in at the appointed time."
Headquartered in Aberdeen, Scotia Linen Services --
http://www.scotialinenandvalet.com/ -- has 14 sites in the North
and East of Scotland. The company provides industrial scale
laundry facilities for major corporate clients and a network of
retail sites based in residential areas which provide dry cleaning
and related services.
SEA CONTAINERS: Court Approves 2nd Amended Disclosure Statement
---------------------------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware approved a Second Amended Disclosure
Statement explaining Sea Containers Ltd. and its debtor-
affiliates' Second Amended Joint Plan of Reorganization, at a
hearing held Sept. 22, 2008.
The Court held that the Disclosure Statement contains adequate
information, as defined by Section 1125(a) of the Bankruptcy
Code, to enable creditors to make an informed decision on whether
to vote to accept or reject the Plan.
Objections to the approval of the Disclosure Statement that were
not withdrawn at, or prior to, the hearing were overruled.
At the initial hearing on the adequacy of the Disclosure
Statement held September 19, the Official Committees of Unsecured
Creditors for Sea Containers Ltd., and Sea Containers Services
Ltd. indicated that "discussions concerning additional comments
to the First Amended Disclosure Statement were ongoing."
Accordingly, the Court directed the Debtors to file the final
forms of the their Second Amended Plan and Disclosure Statement
prior to the telephonic hearing set for September 22.
The Committees and the U.S. Trustee did not oppose the revised
versions of the Plan and Disclosure Statement.
The Court will convene a hearing on Nov. 24, 2008, at 10:00 a.m.,
to consider confirmation of the Second Amended Plan. Parties
have until Nov. 10, 4:00 p.m., to file objections to
the Plan's confirmation.
2nd Amended Plan and
Disclosure Statement
The Second Amended Plan and Disclosure Statement reflect the
progress made by the Debtors, the Pension Schemes, and the
Official Committees of Unsecured Creditors with respect to the
issues surrounding the settlement of the Pension Claims, which
gained the Court's approval at the September 19 hearing.
In the Amended Plan, a section on Newco's governance replaced an
entire section tackling the ongoing negotiations of the Debtors'
two Official Committees of Unsecured Creditors regarding Newco.
The proposed registered company, The Depository Trust Company, on
which Newco's common stock certificates will be deposited, was
replaced with a generic term of "a securities depository."
The Plan Proponents also added new provisions, including those
relating to releases, injunction, discharges of claims, and
investment of trust funds.
The Pension Settlement
The Second Amended Plan provides that, notwithstanding the
Court's decision to approve the Pension Settlement, the (i) the
Official Committee of Unsecured Creditors of Sea Containers
Services Ltd. and the Pension Schemes, (ii) the Official
Committee of Unsecured Creditors of Sea Containers Ltd., and
(iii) the Debtors may agree to modify or amend the Pension
Settlement, provided that the modification will only be effective
if each of the parties agree to the changes in their sole and
absolute discretion.
If the proposed modification or amendment includes these
elements:
(a) the aggregate amount of the allowed Pension Schemes'
unsecured claims is reduced from US$194,000,000 by an amount
of up to US$13,000,000;
(b) the aggregate amount of the allowed Pension Schemes'
administrative claims is increased from US$5,000,000 to an
amount no greater than US$10,000,000;
(c) the initial Equalization Claim Reserve is reduced from
US$69,000,000 to US$60,000,000; and
(d) payment of fees and expenses incurred by counsel for
certain bondholders is made in an amount not to exceeding
US$700,000,
then all impaired creditors, who vote to accept the Plan, will be
deemed to have also accepted prospective Plan modifications that
give effect to the modified terms of the Pension Settlement.
To the extent that the Debtors, the Creditors Committees and the
Pension Schemes each agree to amend or modify the Plan to
implement the modified Pension Settlement, (i) a vote to accept
the Plan will constitute a vote to accept the Plan as so
modified, and (ii) the entry of the Plan's confirmation order
will constitute the Court's approval of that compromise or
settlement, pursuant to Section 363 of the Bankruptcy Code and
Rule 9019(a) of the Federal Rules of Bankruptcy Procedure,
without any further notice to, and order or approval of the
Court.
The Plan Proponents also amended the section on risks related to
the Pension Schemes' support for the Plan to provide that (i)
absent sanctioning of the U.K. Scheme of Arrangement and any
Debtor Affiliate Schemes of Arrangement by the English Court
prior to the closing of voting on the Plan, and (ii) if there is
any chance that the Plan will be consummated in a way that would
jeopardize the Pension Schemes' ability to enter into the Pension
Protection Fund or trigger a PPF assessment period, the Pension
Schemes intend to vote to reject the Plan as they cannot risk
jeopardizing their PPF eligibility.
Investment of Trust Funds
A whole new section is added to the Second Amended Plan regarding
investment of the funds of the trusts created under the Plan.
The Amendment provides that the Equalization-Related Employee
Claim Trustees have the right to invest or apply the assets in
the trust as if the assets were absolutely and beneficially
entitled to the trustees, except that the trustees' right to
invest or apply the assets is restricted to:
(1) purchasing or subscribing for stocks, shares, debenture
stocks, bearer securities or other investments;
(2) placing monies on deposit with a bank, insurance company,
building society, finance company or local authority; and
(3) giving guaranties, indemnities or undertakings.
The trustees will not be liable for (i) any loss of depreciation
in or default upon any of the investments, securities, stocks or
policies, in which the Equalization-Related Employee Claim
Reserve or the trustee costs reserve may be invested or applied,
(ii) any delay in the investment or application, (iii) the safety
of any securities or documents of title deposited by the trustees
for safe custody, (iv) the exercise of any power vested in the
trustees, or (v) reason of any other matter or thing, except that
the trustee will be liable for any losses arising from his
fraudulent or other dishonest conduct, knowingly or recklessly
acting in a manner that he knew was in breach of trust, or gross
negligence.
Copies of the Second Amended Joint Plan and Disclosure Statement
are available for free at:
http://bankrupt.com/misc/SeaCon_2ndAmended_Plan.pdf
http://bankrupt.com/misc/SeaCon_2ndAmended_DisclosureStatement.pdf
Blacklined copies of the Second Amended Joint Plan and Disclosure
Statement are also available without charges at:
http://bankrupt.com/misc/SeaCon_Blacklined_2ndAmendedPlan.pdf
http://bankrupt.com/misc/SeaCon_Blacklined_DisclosureStatement.pdf
About Sea Containers Ltd.
Headquartered 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. 52; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SEA CONTAINERS: Court Approves Voting and Solicitation Procedures
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
Sea Containers Ltd. and its debtor-affiliates' solicitation
procedures, packages and materials, well as the proposed forms
of ballots and notices.
The Court noted that ballots and copies of the Plan and Disclosure
Statement need not be provided to holders of claims (i) that are
unimpaired or not classified under the Plan, and (ii) or interests
that will not receive any distributions on account of their claims
or interests under the Plan.
Judge Kevin J. Carey also set:
-- Aug. 15, 2008, as the voting record date;
-- Oct. 3, 2008, as the date when solicitation packages
will be mailed;
-- Nov. 10, 2008, 4:00 p.m., prevailing Pacific Standard
Time, as the voting deadline; and
-- 10 days prior to the Plan's effective date, as the
distribution record date.
About Sea Containers Ltd.
Headquartered 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. 52; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SEA CONTAINERS: Court Approves Settlement Pact with Panel, et al.
-----------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
approved a settlement agreement among Sea Containers Ltd. and its
debtor-affiliates, its Official Committee of Unsecured Creditors,
and the trustees of the Sea Containers 1983 Pension Scheme and the
Sea Containers 1990 Pension Scheme. The Settlement resolves the
Trustees' claims and other issues relating to the Schemes. The
objection filed by the Official Committee of Unsecured Creditors
of Sea Containers Ltd. was overruled.
Under the Pension Settlement, which is in full and final
satisfaction of all of the Pension Claims against SCL, SCSL, and
certain non-Debtor subsidiaries, the 1983 Pension Scheme will
receive a US$153,800,000 allowed unsecured claim against SCL, and
the 1990 Pension Scheme will receive a US$40,200,000 allowed
unsecured claim against SCL, plus the establishment of an
equalization claim reserve on account of a US$69,000,000
equalization claim.
In a 21-page memorandum, the Court addressed SCL's objections to
the approval of the Settlement Agreement. The Court disagreed
with the SCL Committee's arguments that the valuations of the
Pension Claims, administrative expense allocation and
equalization reserve are unreasonable.
"The proposed settlement may not embody the best possible
compromise in the eyes of the SCL Committee, but it is safely
within the realm of potential litigation outcomes," the Court
held. "[F]urther litigation of the Trustees' proofs of claim
would be complex, lengthy, and expensive, and has already proven
quite costly. Continued wrangling over the Trustees' claims will
promote further delay, expense, and inconvenience, both in this
Court and potentially in foreign jurisdictions," the Court added.
The Court said that his final criteria in approving the Pension
Settlement was considering the paramount interest of creditors.
He noted that the SCL Committee may have objected because it is
"arguably most impacted" by the Pension Settlement, however, it
failed to convince the Court that the Pension Settlement "so
affects [its] position as to be unfair."
"While this settlement paves the way for the Debtors to achieve
confirmation of a plan, the settlement in and of itself does not
constitute a 'sub rosa plan,'" the Court further ruled.
In preparing their joint plan of reorganization, and its recent
amendment, the Debtors assumed that the Court will approve the
Pension Settlement. They believe that consummation of the Plan
is highly unlikely absent settlement of the Pension Claims.
According to the Plan, the Pension Settlement must be approved
prior to the Plan's confirmation.
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. 51;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Seeks to Waive US$3,000,000 Intercompany Claims
---------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates seek permission from
the United States Bankruptcy Court for the District of Delaware to
forgive US$3,000,000 in intercompany receivables owed by one of
Sea Containers Ltd.'s subsidiaries, Charleston Marine Containers,
Inc. The release is sought in connection with the stock sale of
Charleston to Gichner Systems Group, Inc.
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that in connection with the
steps they have taken to restructure their operations and divest
their non-core businesses, the Debtors determined to sell
Charleston, which produces specialized marine containers for its
principal customer, the U.S. Department of Defense. Charleston's
products are specially designed for the rapid and easy
transportation of military equipment and meet stringent U.S.
military requirements.
The Debtors determined that Gichner submitted the best offer of
approximately US$6,500,000, subject to working capital and other
adjustments, and subject to final due diligence and
documentation, Mr. Brady informs the Court. He adds that
Gichner and Sea Containers America, Inc., are finalizing the
terms of the Stock Purchase Agreement. SCA is the direct parent
of Charleston.
A portion of the sale proceeds will be used to fund SCA's
obligation under its defined benefit pension plan, currently
estimated to have a funding deficit of US$2,300,000, Mr. Brady
discloses. He relates that on account of the deficit, the
Pension Benefit Guaranty Corporation has asserted significant
unsecured, administrative and priority claims against the
Debtors.
"Along with alleged 'control-group' liability, SCL's liability on
account of the DB Plan could arise on account of alleged
intercompany obligations of SCL to SCA pursuant to a Services
Agreement, which arguably would allow SCA to bring claims against
SCL for any shortfall in employee-related costs, including
pension deficits," Mr. Brady says. As a result, he contends that
consummation of the sale, and the subsequent receipt of proceeds
by SCA, will greatly benefit the bankruptcy estates. He notes
that after repayment of SCA's third party creditors, SCL may also
realize cash proceeds indirectly from the sale.
The need for SCL to release its intercompany claim against
Charleston arises primarily because the deal is structured as a
sale of SCA's equity interests in Charleston, Mr. Brady tells
Court. He explains that the sale of Charleston to Gichner is
structured as a stock sale primarily because it would be very
difficult, if not impossible, for Charleston to assign its
contracts with the Defense Department to an asset purchaser.
The Defense Department's contracts represent the principal source
of revenue for Charleston, and an asset sale would yield very
little value without the ability to assign the contracts, Mr.
Brady argues. He notes that Charleston is party to lease
agreements for manufacturing facility and storage site, which
contain favorable, below-market terms. Hence, he insists, it is
unlikely that an asset purchaser would be able to secure equally
favorable lease terms, which would undoubtedly further reduce the
net purchase price in an asset sale transaction.
In a stock sale, Mr. Brady says, Gichner would inherit
Charleston's intercompany debts. Thus, to facilitate the
transaction, the parties have determined that it is necessary for
SCL to forgive the Intercompany Receivables. He reveals that SCA
and Sea Containers Treasury Limited are also forgiving
intercompany receivables from Charleston in the amounts of
US$6,800,000 and US$1,500,000.
"It is unlikely that a buyer would be willing to purchase the
stock of [Charleston] without resolution of these significant
debt obligations, even with a significant reduction in the
purchase price," Mr. Brady avers. "If the Intercompany
Receivable is not forgiven, even if [Charleston] is able to
locate a buyer of its stock, any sale proceeds may not cover
obligations under the DB Plan . . . or approximately US$1.7
million
of debts owed to other third party creditors," he continues.
Mr. Brady further argues that an asset sale and subsequent wind
down of Charleston would likely result in additional professional
fees and related expenses, which would further reduce the net
proceeds repatriated to SCL, if any.
The Debtors also ask the Court to shorten the notice period with
respect their request. They propose to have the request heard by
the Court on the next omnibus hearing, currently scheduled for
October 2, 2008. Parties have until September 30 to file
objections to the Debtors' request.
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. 51;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
VEDANTA RESOURCES: Not To Pursue Proposed Group Restructuring
-------------------------------------------------------------
Vedanta Resources plc said it won't pursue the proposed group
restructuring it announced on Sept. 9, 2008, in view of the recent
changes in global financial markets and investor feedback.
The restructuring plan according to Vedanta was in direct response
to shareholder requests to simplify the current corporate
structure and eliminate conflicts of interest.
As reported in the Troubled Company Reporter-Europe on Sept. 15,
2008, the respective Boards of Directors of Vedanta, Sterlite
Industries (India) Limited, and The Madras Aluminium Company
Limited (MALCO) have unanimously approved the Restructuring
Scheme.
The Scheme, which will be effective from April 1, 2009, states
that Sterlite will demerge its aluminium and energy businesses to
MALCO (to be simultaneously renamed Sterlite Aluminium Limited)
and Vedanta will transfer its 79.4% equity interest in Konkola
Copper Mines plc to Sterlite. The Scheme will also eliminate
cross holdings between businesses arising out of MALCO's holding
in Sterlite. The corporate restructuring is expected to be
completed by March 2009.
Under the Restructuring Scheme, MALCO will issue equity shares to
the shareholders of Sterlite in the ratio of Seven (7) Equity
Shares of Rupees Two each of MALCO for every Four (4) Equity
Shares of Rupees Two each held in Sterlite while Sterlite will
issue One (1) fully paid up equity share of Rupees Two each in
exchange for One (1) Equity Share of US$0.01 each of THL KCM
Limited, a wholly owned subsidiary
of Vedanta. Sterlite will also issue equity shares to the
shareholders of MALCO in the ratio of One (1) Equity Share of
Rupees Two each of Sterlite for every Fifty One (51) Equity Shares
of Rupees Two each held in MALCO.
Grant Thornton India conducted independent valuation for the
transaction while
JM Financial Consultants Private Limited provided a fairness
opinion on the share swap ratio. JPMorgan Cazenove and Morgan
Stanley acted as corporate brokers to
Vedanta. PricewaterhouseCoopers India acted as tax and regulatory
advisors.
About Vedanta Resources plc
Headquartered in London, England, Vedanta Resources plc --
http://www.vedantaresources.com/-- produces aluminium, copper,
zinc, lead, iron ore and commercial energy. Vedanta has
operations in India, Zambia and Australia. Vedanta employs 29,000
globally. On April 23, 2007, Vedanta acquired Finsider
International Company Limited (Finsider), an investment holding
company. In September 2007, the company, through one of its
subsidiaries, sold all of the interest it held in Twin Star
International.
* * *
As reported in the Troubled Company Reporter on Sept. 16, 2008,
Standard & Poor's Ratings Services revised its outlook on Vedanta
Resources PLC to stable from positive and affirmed its 'BB' long-
term foreign currency corporate credit rating. At the same time,
the 'BB' rating on Vedanta's senior unsecured debt was also
affirmed.
As reported in the Troubled Company Reporter on Sept. 15, 2008,
Fitch Ratings
changed Vedanta Resources PLC's Outlook to Negative from Stable.
Fitch also affirmed the 'BB+' ratings on Vedenta's US$1,250
million senior unsecured unsubordinated bonds issued in two
tranches (US$500 million due January 2014 and
US$750 million due July 2018) and US$600 million senior unsecured
bonds due 2010.
As reported in the Troubled Company Reporter on Sept. 12, 2008,
Moody's Investors Service placed the Baa3 corporate family rating
and the Ba1 long-term senior unsecured rating of Vedanta Resources
plc on review for possible downgrade.
* UK Unemployment Rises for Three Months to July 2008, ONS Says
---------------------------------------------------------------
The unemployment rate was 5.5 per cent for the three months to
July 2008, up 0.2 over both the previous quarter and over the
year. There has been another increase in the number of people
claiming Jobseeker's Allowance benefit. The number of job
vacancies has fallen. Growth in average earnings excluding
bonuses was unchanged but earnings growth including bonuses has
increased, the Office for National Statistics said.
The employment rate for people of working age was 74.7 per cent
for the three months to July 2008, down 0.2 from the previous
quarter but up 0.2 over the year. The number of people in
employment for the three months to July 2008 was 29.54 million,
down 16,000 over the quarter but up 333,000 over the year. Total
hours worked has increased by 3.5 million over the quarter to
reach 947.2 million. This reflects an increase in average hours
worked, particularly by women workers.
The number of jobs in June 2008 was 31.68 million, up 26,000 on
the quarter and up 142,000 over the year.
The unemployment rate was 5.5 per cent for the three months to
July 2008, up 0.2 over both the previous quarter and over the
year. The number of unemployed people increased by 81,000 over
the quarter and by 72,000 over the year, to reach
1.72 million.
The claimant count was 904,900 in August 2008, up 32,500 over the
previous month and up 56,300 over the year. The Claimant Count
has increased over the month in all regions of the UK.
The redundancy level for the three months to July 2008 was
138,000, up 28,000 over the quarter and up 18,000 over the year.
The inactivity rate for people of working age was 20.8 per cent
for the three months to July 2008, unchanged over the previous
quarter but down 0.4 over the year. The number of economically
inactive people of working age increased by 4,000 over the quarter
but fell by 97,000 over the year to reach 7.86 million.
The annual rate of growth in average earnings excluding bonuses
was 3.7 per cent in the three months to July 2008, unchanged from
the three months to June. Including bonuses, it was
3.5 per cent, up 0.1 from the three months to June.
There were 613,200 job vacancies for the three months to August
2008, down 56,900 over the previous quarter and down 53,200 over
the year. All sectors showed falls in vacancies over the quarter
with the largest falls occurring in distribution, hotels and
restaurants (down 18,200) and finance and business services (down
16,600).
The Office for National Statistics is the executive office of the
UK Statistics Authority, a non-ministerial department which
reports directly to Parliament. ONS is the UK Government's single
largest statistical producer.
* Auto Sector to Face Profound Shits and Challenges, PwC Says
-------------------------------------------------------------
Increasing fuel costs, CO2 emissions reductions, fluctuating
exchange rates, shifts in consumer behavior and a challenging
economic climate are just some of the issues facing the automotive
industry according to the latest PricewaterhouseCoopers report
Global Automotive Perspectives 2008.
Global Automotive Perspectives 2008 predicts that 2008/9 are set
to include profound industrial shifts and challenges for the
automotive industry, as it responds to a fast growing array of
commercial and regulatory pressures.
Philippe Vincent, partner, PricewaterhouseCoopers, said: "Great
opportunities exist for the automakers and suppliers who will be
able to deliver solutions to this structural industry
transformation. A clear challenge lies in the ability of western
automakers to adapt to the clear dichotomy existing between the
established, mature markets and emerging markets."
In 2007, sales of new cars skyrocketed in Russia, with a 66%
increase from the previous year, almost surpassing Germany to
become the largest car market in Europe. While most original
equipment manufacturers (OEMs) are arriving in droves, they may
experience difficulties in improving margins as the percentage of
automotive components manufactured in Russia is still extremely
low. Additionally, Russia is still an emerging country with a GDP
three times lower than the US, facing high inflation, and a
rapidly declining competitive manufacturing advantage.
Infrastructures as well as car maintenance and repair facilities
are struggling to cope with rapidly increasing demand.
Despite the global downturn, we expect to see a significant number
of deals happening. With the limited access to credit and
recessionary risks, deal prices are lower, which make the industry
more attractive to trade buyers. Financial buyers remain however,
interested in the industry as it still offers opportunities.
The automotive industry is global in name only as a clear
dichotomy exists between the established, mature and emerging
markets leading to automakers pursuing diametrically opposed
strategies.
In North America there has been a shift south as the Detroit 3
restructure and new capacity finds its way to southern US states
and Mexico. In Europe, there has been a shift east with the new
EU member states in central and Eastern Europe. From 2007 to 2015
emerging markets are expected to represent 18 times the estimated
growth in light vehicle assembly as mature markets in the same
period. PricewaterhouseCoopers forecasts that 95% of light
vehicle growth will originate from emerging markets, among these
markets, the BRIC (Brazil, Russia, India and China) countries are
eminent in the growth stakes, with more than 58% growth stemming
from them from 2007 to 2015. China and India are forecast to lead
whereas Russia and Brazil are expected to grow at a slower pace.
Philippe Vincent, partner, PricewaterhouseCoopers, said: "The
outlook for the global automotive market is challenging to say the
least. Manufacturers and suppliers need to be preparing
themselves to survive the intensity of competitive pressures."
Western Europe has been considerably stable since the late 1990s,
with sales of over 14 million. A lack of dynamic growth is a
feature of a mostly mature market such as Western Europe, where
replacement cycles and the prevailing economic situation drive
demand. With ten new EU members since 2004, these countries were
seen as sources of significant future sales growth – growth that
is only now being realized. However, increasing disquiet about
the general economic situation – stubbornly high unemployment
figures in France, the increased cost of credit in the UK, and the
rising cost of living in almost all markets suggests the picture
for 2008 will not be so rosy.
In 2007, Japan was the largest manufacturing country for cars and
trucks in the world. Its total assembly volumes and share of
global assembly volumes declined significantly to 15%. The major
challenge to the Japanese automakers will be to maintain Japan's
competitiveness as a major export hub. Two things appear
inevitable; Japan will witness more local assembly pressure in
overseas markets, and it will experience further domestic market
decline.
Philippe Vincent, partner, PricewaterhouseCoopers said: "The
Japanese vehicle assembly topline faces a myriad of negative
factors that will put pressure on automakers. Despite numerous
new vehicle introductions in 2007, demand has continued to slide
downward as negative economic outlook continues to erode consumer
confidence. In addition, the financial health of Japanese
automakers that heavily rely on American consumers has been
substantially shaken by the precarious combination of a struggling
US market and a stronger Yen."
It appears 2008 is proving to be a year of profound industrial
shifts and challenges for the automotive industry, as it responds
to a fast growing array of commercial and regulatory pressures.
As the industry undergoes structural changes, we may continue to
observe a significant number of deals, despite the global credit
crunch and macroeconomic turmoil.
About PricewaterhouseCoopers
PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their
stakeholders. More than 146,000 people in 150 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.
'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a
limited liability partnership in the United Kingdom) or, as the
context requires, the PricewaterhouseCoopers global network or
other member firms in the network, each of which is a separate
and independent legal entity.
* U.S. Federal Reserve Grants Swap Lines to Other Central Banks
---------------------------------------------------------------
The U.S. Federal Reserve, the Reserve Bank of Australia, the
Danmarks Nationalbank, the Norges Bank, and the Sveriges Riksbank
disclosed on Sept. 24, 2008, the establishment of temporary
reciprocal currency arrangements (swap lines) to address elevated
pressures in U.S. dollar short-term funding markets. These
facilities, like those already in place with other central banks,
are designed to improve liquidity conditions in global financial
markets. Central banks continue to work together during this
period of market stress and are prepared to take further steps as
the need arises.
Federal Reserve Actions
The Federal Open Market Committee has authorized the establishment
of new swap facilities with the Reserve Bank of Australia, the
Sveriges Riksbank, the Danmarks Nationalbank, and the Norges Bank.
These new facilities will support the provision of U.S. dollar
liquidity in amounts of up to US$10 billion each by the Reserve
Bank of Australia and the Sveriges Riksbank and in amounts of up
to US$5 billion each by the Danmarks Nationalbank and the Norges
Bank.
In sum, these new facilities represent a US$30 billion addition to
the US$247 billion previously authorized temporary reciprocal
currency arrangements with other central banks: European Central
Bank (US$110 billion), Bank of Japan (US$60 billion), Bank of
England (US$40 billion), Swiss National Bank (US$27 billion), and
Bank of Canada (US$10 billion).
These reciprocal currency arrangements have been authorized
through Jan. 30, 2009.
Information on related actions being taken by other central banks
is available at:
Reserve Bank of Australia Leaving the Board --
http://www.rba.gov.au/MediaReleases/2008/mr_08_15.html
Danmarks Nationalbank (National Bank of Denmark) --
http://www.nationalbanken.dk/C1256BE9004F4A13/side/920440223D349B6
8C12574CE001C7236/$file/29E.pdf
Norges Bank (Bank of Norway) -- http://www.norges-
bank.no/templates/article____72182.aspx
Sveriges Riksbank (Bank of Sweden) --
http://www.riksbank.com/templates/Page.aspx?id=29041
* BOOK REVIEW: The Chief Executives
-----------------------------------
Author: Isadore Barmash
Publisher: Beard Books
Paperback: 260 pages
List Price: US$34.95
Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587982285/internetbankrupt
The Chief Executives by Isadore Barmash is a provocative book
dealing with the chief executive cult in America. This should be
read by anyone interested in the American corporate system and
those who run it.
Isadore Barmash, one of the country's most respected business
writers, takes a penetrating look into the minds, hearts,
consciences, attitudes, and life styles of the CEOs of the 1970s.
This surprisingly candid book is based upon extensive research and
interviews with influential corporate chiefs, management
consultants, and economists.
Among others, Reginald Jones of GE, Irving Shapiro of Du Pont, and
John de Butts of AT&T offer new insights into management's modus
operandi, problems, and their own special public and private
worlds.
*********
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 * * *