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/raid1/www/Hosts/bankrupt/TCREUR_Public/070104.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, January 4, 2007, Vol. 8, No. 3 Headlines A U S T R I A BENQ CORP: Court Orders Austrian Unit to Close Eight Branches DR. RAU IMMOBILIEN: Creditors' Meeting Slated for January 11 DRUCKEREIMASCHINEN LLC: Claims Registration Period Ends Jan. 16 EIGNER TRANSPORT: Creditors to Recover 9% of Claims FERDINAND BLAHA: Wiener Neustadt Court Orders Business Shutdown FLAMUR LOSHAJ: Vienna Court Orders Business Shutdown GINDA DATENSERVICE: Court Orders Shutting Down of Business HFS LLC: Korneuburg Court Orders Business Shutdown HOSPOGA LLC: Manager Declares Property for Rent or Sale LEPPA & PARTNER: Vienna Court Orders Business Shutdown B E L G I U M GOODYEAR TIRE: S&P Affirms B+ Rating on New Labor Contract C Z E C H R E P U B L I C COMPUTER SCIENCES: Unveils Federal Contracts in Third Quarter MORAVAN-AEROPLANES: CzechAircraft s.r.o. Completes Acquisition F I N L A N D METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB F R A N C E ALCATEL-LUCENT: Completes Takeover of Nortel's UMTS Operations G E R M A N Y BENQ CORP: Court Opens Insolvency Proceedings for Mobile Unit E.U.-BAU: Claims Registration Ends January 8 FABER BAUUNTERNEHMUNG: Claims Registration Ends January 15 FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest FM-TRANSPORT: Claims Registration Ends January 8 FRUCHTIMPORT JUERGEN: Claims Registration Ends January 17 GUENTHER RUMLAND: Claims Registration Ends January 11 HANS KONRAD: Claims Registration Ends January 17 HUGO KOENIG: Claims Registration Ends January 12 MAZU MODEN: Creditors' Meeting Slated for January 8 PREU-PA: Creditors' Meeting Slated for January 11 PSIVIDA LIMITED: Lender Frees Firm From Loan Covenants READALL GMBH: Creditors' Meeting Slated for January 11 SPEDITION GRAUMANN: Claims Registration Ends January 12 H U N G A R Y CENTRAL EUROPEAN: Parent's Merger Cues Fitch to Affirm C Rating I R E L A N D MORAVAN-AEROPLANES: CzechAircraft s.r.o. Completes Acquisition I T A L Y ALITALIA SPA: Transport Minister Wary of Air France-KLM Takeover NORTEL NETWORKS: Completes Sale of UMTS Ops to Alcatel-Lucent NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic K A Z A K H S T A N ALFA-TRADER LLP: Creditors Must File Claims by Feb. 7 CAI-KAZAKHSTAN: Proof of Claim Deadline Slated for Feb. 7 ENERGOREMONT LLP: Claims Registration Ends Feb. 7 JANAOILSERVICE LLP: Mangistau Court Starts Bankruptcy Procedure OIL-GRAN LLP: Claims Filing Period Ends Feb. 7 K Y R G Y Z S T A N KENES-ANARHAISKAYA MJS: Creditors' Meeting Scheduled for Jan. 10 N E T H E R L A N D S ALCATEL-LUCENT: Completes Takeover of Nortel's UMTS Operations FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest GLOBAL POWER: Wants Until April 26 to Decide on Leases R U S S I A DALNEVOSTOCHNAYA OIL: Creditors Must File Claims by Feb. 9 DOLGOVSKOYE CJSC: Kurgan Bankruptcy Hearing Slated for March 14 KARAVAY OJSC: Creditors Must File Claims by Feb. 9 KRASNOYARSKIY FACTORY: Creditors Must File Claims by Feb. 9 LYSVA-WOOD CJSC: Creditors Must File Claims by Feb. 9 PRIKAMYE CJSC: Selling Assets Via Public Auction on Jan. 19 SAMARSKAYA GAS: Creditors Must File Claims by Feb. 9 SERGACHANKA CJSC: Bankruptcy Hearing Slated for March 27 SIB-OIL-SERVICE LLC: Bankruptcy Hearing Slated for Feb. 22 SIS CJSC: Creditors Must File Claims by Jan. 9 SKIF LLC: Creditors Must File Claims by Jan. 9 SREDNEVOLZHSKIY TRADING: Creditors Must File Claims by Feb. 9 TAT-AGRO-PROM-STORY OJSC: Creditors Must File Claims by Jan. 9 URALSKIY JEWELER: Creditors Must File Claims by Feb. 9 ZEYSKIY LLC: Creditors Must File Claims by Feb. 9 S L O V A K R E P U B L I C COMPUTER SCIENCES: Unveils Federal Contracts in Third Quarter VSEOBECNA UVEROVA: Fitch Keeps Individual Rating at C S L O V E N I A BANKA KOPER: Fitch Affirms Individual Rating at C S P A I N NORTEL NETWORKS: Completes Sale of UMTS Ops to Alcatel-Lucent NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic S W E D E N METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB S W I T Z E R L A N D BISANG FAHRZEUGTECHNIK: Court Suspends Bankruptcy Process EXPO AUTOSPRITZWERK: Sursee Court Starts Bankruptcy Proceedings JOST A. & O. STOREN: Sursee Court Starts Bankruptcy Proceedings PENSIONKASSE PLUS: Zug Court Closes Bankruptcy Proceedings M & A PARTNERS: Zug Court Closes Bankruptcy Proceedings MODE TIME: Olten Court Closes Bankruptcy Proceedings MSC MARKETING: Sursee Court Starts Bankruptcy Proceedings STAR FILTER: Zug Court Closes Bankruptcy Proceedings TIFFANY UHREN: Olten Court Suspends Bankruptcy Proceedings U K R A I N E GNIEVAN BAKERY: Registration of Claims Ends January 13 KHRESCHENDO LLC: Last Day for Submission of Claims Set Jan. 13 KOMUNAR OJSC: Creditors Must Submit Claims by January 13 POLONNOE FACTORY: Creditors Must File Claims by January 13 MLINOV PLANT: Creditors Must File Claims by January 13 TERENOVKA LLC: Creditors Must File Claims by January 13 TMT 96: Deadline for Filing of Claims Set January 13 UKRKOMPLEKT LLC: Creditors Must File Claims by January 13 UKRKWAR LLC: Creditors Must File Claims by January 13 U N I T E D K I N G D O M CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands COLLINS & AIKMAN: Overview & Summary of First Amended Plan COLLINS & AIKMAN: Seeks Court Nod on Solicitation Protocol DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent DURA AUTOMOTIVE: Wants to Employ Deloitte & Touche as Auditors FEDERAL-MOGUL: Court Sets Disclosure Statement Hearing on Feb. 2 FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest PSIVIDA LIMITED: Lender Frees Firm From Loan Covenants REFCO INC: Seeks to Reject 1997 Deal with SunGard Financial REFCO INC: Wants Court Nod to Assume Iron Mountain Contracts REFCO INC: Court Okays Sale of Refco Global Shares to Bank Frick SEA CONTAINERS: HSH Nordbank Doesn't Object to Aegean Stake Sale SEA CONTAINERS: Wants to Pay Employees Dismissed on Bankruptcy SOLUTIA INC: Hires Two Firms as Ordinary Course Professionals * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= BENQ CORP: Court Orders Austrian Unit to Close Eight Branches ------------------------------------------------------------- The Trade Court of Vienna entered Nov. 9, 2006, an order closing the enterprise branches of LLC BenQ Mobile CEE (FN 267077k) in Bulgaria, Czechia, Croatia, Romania, Switzerland, Serbia, Slovenia and Hungary. The Court based its decision pursuant to Article 8 and Article 115 of the Austrian Bankruptcy Code. About BenQ Headquartered in Vienna, Austria, LLC BenQ Mobile CEE is a subsidiary of Taiwan-based BenQ Corp. BenQ -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., BenQ Corp.'s wholly owned subsidiary in Munich, Germany, filed for insolvency on Sept. 29, 2006. The collapse follows a year after BenQ acquired the German mobile unit from Siemens. BenQ Mobile has lost market share against giant competitors. The Austrian Debtor consented to an out-of-court settlement on Oct. 24, 2006 (Case No. 45 Sa 7/06t) almost a month after the German unit's insolvency filing. Johannes Jaksch serves as the settlement manager for the estate. Stephan Riel represents Dr. Jaksch in the proceedings. The settlement manager and his representative can be reached at: Dr. Johannes Jaksch c/o Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna, Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at DR. RAU IMMOBILIEN: Creditors' Meeting Slated for January 11 ------------------------------------------------------------ Creditors owed money by LLC Dr. Rau Immobilien und Beteiligung (FN 242611g) are encouraged to attend the creditors' meeting at 9:50 a.m. on Jan. 11, to consider the adoption of the rule by revision and accountability. The creditors' meeting will be held at: The Trade Court of Vienna Room 1707 Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 27, 2006 (Bankr. Case No. 2 S 155/06s). Gerhard Bauer serves as the court-appointed property manager of the bankrupt estate. The property manager can be reached at: Mag. Gerhard Bauer Mahlerstrasse 7 1010 Vienna, Austria Tel: 512 97 06 Fax: 512 97 06 20 E-mail: ra-g.bauer@aon.at DRUCKEREIMASCHINEN LLC: Claims Registration Period Ends Jan. 16 --------------------------------------------------------------- Creditors owed money by LLC Druckereimaschinen (f.k.a. LLC B. & J. Kobylinski) (FN 51036d) have until Jan. 16, to file written proofs of claims to court-appointed property manager Alois Leeb at: Dr. Alois Leeb Triester Road 8 2620 Neunkirchen, Austria Tel: 02635/62060 Fax: 02635/62060-25 Email: kzl.neunkirchen@wlp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Jan. 30 to consider the adoption of the rule by revision. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt, Austria Headquartered in Sieding - Stixenstein, Austria, the Debtor declared bankruptcy on Nov. 13, 2006 (Bankr. Case No. 11 S 123/06h). EIGNER TRANSPORT: Creditors to Recover 9% of Claims --------------------------------------------------- The Land Court of Eisenstadt approved Nov. 9, 2006, the final decision on distribution of Astrid Haider, the court-appointed property manager of LLC Eigner Transport (FN 82534z). Under the property manager's project by final distribution, creditors will recover 9% of their claims. Headquartered in Burgenland, Austria, the Debtor declared bankruptcy on May 19, 2006 (Bankr. Case No. 26 S 53/06f). The property manager can be reached at: Mag. Astrid Haider Neusiedlerstrasse 24-26 7000 Eisenstadt, Austria Tel: 02682/66666 Fax: 02682/66966 E-mail: haider@thr.at FERDINAND BLAHA: Wiener Neustadt Court Orders Business Shutdown --------------------------------------------------------------- The Land Court of Wiener Neustadt entered Oct. 14, 2006, an order shutting down the business of LLC Ferdinand Blaha (FN 81880m). Court-appointed property manager Guenther Viehboeck declared the property of the Debtor is insufficient to cover creditors' proofs of claim. The property manager can be reached at: Dr. Guenther Viehboeck c/o Mag. Maria-Christina Nau Bahnhofsplatz 1a/Stg.1/Top 5 2340 Moedling, Austria Tel: 02236/22050 Fax: 02236/49239 E-mail: office@viehboeck.at Headquartered in Voesendorf - Sued, Austria, the Debtor declared bankruptcy on Nov. 3, 2006 (Bankr. Case No. 11 S 114/06k). Maria Christina Nau represents Dr. Viehboek in the bankruptcy proceedings. FLAMUR LOSHAJ: Vienna Court Orders Business Shutdown ---------------------------------------------------- The Trade Court of Vienna entered Nov. 14, 2006, an order shutting down the business of LLC Flamur Loshaj (FN 246818v). Court-appointed property manager Stefan Langer recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Stefan Langer c/o Dr. Annemarie Kosesnik-Wehrle Oelzeltgasse 4 1030 Vienna, Austria Tel: 713 61 92 Fax: 713 61 92-22 E-mail: kanzlei@kosesnik-langer.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 6, 2006 (Bankr. Case No. 3 S 148/06v). Annemarie Kosesnik-Wehrle represents Dr. Langer in the bankruptcy proceedings. GINDA DATENSERVICE: Court Orders Shutting Down of Business ---------------------------------------------------------- The Land Court of Krems an der Donau entered Nov. 14, 2006, an order shutting down the business of LLC Ginda Datenservice (FN 214382v). Court-appointed property manager Hubert Sacha recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Hubert Sacha Gartenaugasse 3 3500 Krems, Austria Tel: 02732/76767 Fax: 02732/76767-20 E-mail: drsacha@aon.at Headquartered in Grunddorf, Austria, the Debtor declared bankruptcy on Oct. 30, 2006 (Bankr. Case No. 9 S 55/06w). HFS LLC: Korneuburg Court Orders Business Shutdown -------------------------------------------------- The Land Court of Korneuburg entered Nov. 9, 2006, an order shutting down the business of LLC HFS (FN 97082v). Court- appointed property manager Ilse Korenjak recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Ilse Korenjak Gusshausstrasse 6 1040 Vienna, Austria Tel: 01/512 21 02 Fax: 01/512 21 02 20 E-mail: office@buresch-korenjak.at Headquartered in Himberg bei Wien, Austria, the Debtor declared bankruptcy on Nov. 8, 2006 (Bankr. Case No. 36 S 121/06w). HOSPOGA LLC: Manager Declares Property for Rent or Sale ------------------------------------------------------- Mag. Martin Prett, the court-appointed property manager for LLC Hospoga (FN 250875i), placed Nov. 9, 2006, the Debtor's property for rent or sale. Headquartered in Faak am See, Austria, the Debtor declared bankruptcy on Oct. 12, 2006 (Bankr. Case No. 41 S 109/06m). The property manager can be reached at: Mag. Martin Prett Ringmauergasse 8 9500 Villach, Austria Tel: 04242/22 681 Fax: 04242/ 22681-20 E-mail: prett+fattinger@villach.net LEPPA & PARTNER: Vienna Court Orders Business Shutdown ------------------------------------------------------ The Trade Court of Vienna entered Nov. 14, 2006, an order shutting down the business of LLC Leppa & Partner Ziviltechniker (FN 178217i). Court-appointed property manager Michael Lesigang recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The property manager can be reached at: Dr. Michael Lesigang Landstrasser Hauptstrasse 14-16/8 1030 Vienna, Austria Tel: 715 25 26 Fax: 715 25 26-27 E-mail: michael@lesigang.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 7, 2006 (Bankr. Case No. 3 S 150/06p). ============= B E L G I U M ============= GOODYEAR TIRE: S&P Affirms B+ Rating on New Labor Contract ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit and other ratings on Goodyear Tire & Rubber Co. and removed them from CreditWatch where they were placed with negative implications on Oct. 16, 2006, as a result of the labor dispute at several of the company's North American plants. The affirmation follows the announcement that Goodyear and the United Steel Workers Union, representing about 12,600 employees at 12 plants in the U.S. and Canada, have reached an agreement on a new contract and union members have ratified the agreement. The outlook is stable. Pro forma for US$1 billion of new debt sold in the fourth quarter -- partly to refinance US$515 million of debt coming due in the next six months, some of which was repaid in December -- Goodyear has total debt of about US$12 billion. The new contract should enable Goodyear to achieve substantial cost savings over the three-year contract term. The company estimates that compared with 2006 prestrike levels, savings are expected to total US$70 million in 2007, US$240 million in 2008, and US$300 million in 2009. These savings are comprised of capacity-related savings, reduced legacy costs, and savings from increased productivity. Significant terms of the new three-year contract include: -- the elimination of Goodyear's responsibility for all current and future retiree health care liabilities for the company's USW workforce in return for the creation of a VEBA trust with US$1 billion in initial funding, a portion of which could be funded with Goodyear's common equity. Resulting OPEB expense savings are estimated at US$110 million and cash savings at US$145 million annually compared with 2006. Goodyear's total unfunded OPEB liability was US$2.6 billion at the end of 2005, of which about half was the USW OPEB liability. -- the closure of the Tyler, Texas-based plant after the end of 2007. This closure will eliminate 9 million units of higher-cost capacity and save an estimated US$50 million annually. -- lower-cost wages and benefits for new hires during the first three years of employment. The level of savings will depend partly on the attrition rate of the existing workforce. =========================== C Z E C H R E P U B L I C =========================== COMPUTER SCIENCES: Unveils Federal Contracts in Third Quarter ------------------------------------------------------------- Computer Sciences Corp. disclosed that since Oct. 1, 2006, its Federal Sector business unit has signed 110 previously unannounced contracts and subcontracts during CSC's fiscal 2007 third quarter, which ends Dec. 29, 2006. These contracts have a total estimated value of US$643 million if all contract options are exercised. The performance periods for the contracts range from one month to 10 years. Civil agencies accounted for 40 awards with a total value of approximately US$115 million. Department of Defense agencies accounted for 70 awards with a total value of approximately US$528 million. "CSC's Federal Sector business unit continues its robust performance and is delivering according to our expectations," said CSC Chairman and Chief Executive Officer Van B. Honeycutt. "These contracts signify the confidence our clients have in CSC's ability to apply our vast experience and expertise to deliver business results for projects on the largest and smallest scales for a diverse cross section of agencies." Significant areas of award activity include the Departments of the Navy and Army, the National Aeronautics and Space Administration, the intelligence community and state and local agencies. All expressed contract award terms and values represent the amounts that CSC expects to receive from the agreements if all options are exercised. Headquartered in El Segundo, Calif., Computer Sciences Corporation (NYSE: CSC) -- http://www.csc.com/-- is a global information technology services company. The company's services include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. It maintains operations in Australia, China, Czech Republic, Slovakia, Denmark, France, among others. * * * As reported in the Troubled Company Reporter-Europe yesterday, Computer Sciences Corp. secured consents from the holders of the US$200-million aggregate outstanding principal amount of its 6-1/4% Notes due March 15, 2009, issued under the Indenture, dated as of March 8, 1999, among CSC, as issuer, and Citibank, N.A., a national banking association, as trustee. CSC was requesting a one-time waiver of any default or event of default that has arisen or may arise by virtue of CSC's failure to file with the U.S. Securities and Exchange Commission and furnish to the Trustee and holders of the Notes, certain reports required to be so filed and furnished by CSC pursuant to the terms of the Indenture. Approval of the Waiver effectively extends the existing 30-day cure period in the Indenture by 60 days with respect to the reporting requirements in the Indenture, which is consistent with the cure period for the reporting requirements under the indentures that govern CSC's three other outstanding series of notes and similar to the cure period provided in the waiver of default granted on Nov. 17, 2006, by CSC's lenders under its US$1 billion credit agreement for failure to comply with the reporting covenant in the Credit Agreement. Each holder of record on Dec. 11, 2006, who validly delivered their consent, and did not revoke such consent, will receive a payment of US$1.25 for each US$1,000 principal amount of Notes to which such consent related. If CSC has not filed its 2007 Second Quarter Report with the SEC on or before 5:30 p.m., New York City time, on Jan. 5, CSC will pay on the following business day, or as promptly as practicable thereafter, to each holder of record on Dec. 11, 2006, who validly delivered their consent, and did not revoke such consent, an additional US$1.25 for each US$1,000 in principal amount of Notes. MORAVAN-AEROPLANES: CzechAircraft s.r.o. Completes Acquisition -------------------------------------------------------------- CzechAircraft s.r.o. would commence its takeover of bankrupt aircraft maker Moravan-Aeroplanes a.s. this month after paying over CZK50 million to the company and its parent's creditors, Czech News Agency reports citing Petr Hajtmar, Moravan- Aeroplanes' receiver. CzechAircraft, controlled by Irish firm QucomHaps, had been the sole bidder in the first two tenders to acquire Moravan- Aeroplanes, but failed due to different reasons. In the fourth and final tender launched in November 2006, CzechAircraft bested local firm Dova Aircraft, after offering more than CZK50 million to the creditors of Moravan-Aeroplanes and parent Moravan, CTK relays. CzechAircraft recently completed the payment for the bankrupt assets, Mr. Hajtmar said. "Most assets will be taken over early in January, the rest in the course of the month," Jarmila Burianova, QucomHaps' representative in the Czech Republic, told CTK. About Moravan-Aeroplanes Headquartered in Otrokovice, Czech Republic, Moravan-Aeroplanes a.s. -- http://moravan.cz/-- produces the all-metal ZLIN aircraft ZLIN Z 142C, Z 242L, Z 143L and Z 143Lsi, including spare parts. It also operates a service center that is included in the assets being sold. The company employs 170 people staff. * * * The Regional Court in Brno declared Moravan-Aeroplanes bankrupt on June 18, 2004, at the request of management and employees. The company owes employees wages worth CZK12 million, over CZK60 million in social security premiums and CZK11 million in taxes. ============= F I N L A N D ============= METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB ------------------------------------------------------------ Metso Oyj finalized on Dec. 29, 2006, the divestment of the shares of Metso Powdermet AB in Sweden to Sandvik AB following the regulatory approvals. About Metso Headquartered in Helsinki, Finland, Metso Corporation -- http://www.metso.com/-- is a global engineering and technology corporation with 2005 net sales of approximately EUR4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. The company's principal production plants are located in Brazil, China, Finland, France, Germany, India, Italy, South Africa, Sweden, the United Kingdom and the United States. * * * As reported in the TCR-Europe on April 11, Standard & Poor's Ratings Services revised its outlook on Finland-based machinery and engineering group Metso Corp. to positive from stable, reflecting improvements in the group's operating performance and capital structure that offer it the potential to return to a low investment-grade rating. The 'BB+' long-term and 'B' short-term corporate credit ratings, as well as the 'BB' senior unsecured debt rating on the group were affirmed. =========== F R A N C E =========== ALCATEL-LUCENT: Completes Takeover of Nortel's UMTS Operations -------------------------------------------------------------- Alcatel-Lucent disclosed that, after all regulatory approvals have been met, the acquisition of Nortel Network Corp.'s UMTS radio access business and related assets has been completed on Dec. 31, 2006. In recent weeks, the two companies have achieved a number of significant milestones, the most important being the signature of the definitive agreement on Dec. 4, 2006. Nortel received a closing cash payment of US$320 million less significant deductions. With this acquisition, one in four UMTS operators -- about 40 customers around the world -- use Alcatel-Lucent UMTS solutions. Together with strengthened R&D and a broad products and solutions portfolio, Alcatel-Lucent is now uniquely positioned to lead the network technological evolutions from 3G to 4G -- relying on its OFDMA, SDR and MIMO expertise -- to address the customers' needs of today and tomorrow while realizing economies of scale. "This acquisition will enable the development teams to leverage additional capabilities from the integration into the broader Alcatel-Lucent and we count on the focus of the teams to deliver superior performance in the UMTS domain going forward," said Vivek Badrinath, France Telecom Group EVP Information Technology Networks & product Support. "We count on Alcatel-Lucent to serve the needs of mobilkom group moving forward," Boris Nemsic, CEO of mobilkom Austria, said. "Our customers will clearly benefit from the high value this acquisition brings, and the pre-integration work has progressed very well," said Mary Chan, President of Alcatel-Lucent's wireless activities. "Our combined expertise and portfolios will enable us to deliver the most compelling UMTS offer for our customers, allowing them to provide their subscribers with innovative and high-speed 3G services. Our aim is to achieve the optimum combination of Alcatel-Lucent and Nortel's technologies, with minimum customer disruption. We are well positioned to capture the UMTS market growth opportunity." With its undisputable wireless technology portfolio, encompassing CDMA/EV-DO, UMTS/HSPA, GSM/EDGE and WiMAX, Alcatel- Lucent is the only player positioned to craft 4G, taking the best from all technologies, to shape the future and deliver mobile broadband for all. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corp (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. In Europe, Nortel operates in the U.K., France, Germany, Spain, Italy and Turkey. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- 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. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Brazil and Indonesia. * * * As reported in the TCR-Europe on Dec. 14, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings I stable. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. ============= G E R M A N Y ============= BENQ CORP: Court Opens Insolvency Proceedings for Mobile Unit ------------------------------------------------------------- A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after court-appointed insolvency administrator Martin Prager failed to meet the deadline in finding a buyer for the company on Dec. 31, 2006. "The insolvency proceedings were officially opened Jan. 1," a spokesman for Mr. Prager told CIO Magazine. "Production will now wind down." Mr. Prager will order the shutdown of BenQ Mobile's office in Munich and its production plant in western Germany, Regine Petzsch, a spokeswoman for the insolvency administrator, told the International Herald Tribune. CIO Magazine relates that potential buyers were obliged to take over the entire company and its work force prior to the Dec. 31, 2006 deadline. However, as of Jan. 1, potential investors can bid to acquire all or a part of the company, without the law binding them to take over any former employees, CIO Magazine says. As reported in the TCR-Europe on Sept. 29, the board of directors of BenQ Corp. decided to discontinue capital injection into BenQ Mobile in order to stem unsustainable losses in the latter's operations. Subsequently it filed an insolvency petition for the German mobile phone unit. Bloomberg News reports that more than 3,000 manufacturing workers have been affected in the company's insolvency proceedings after it disclosed of plans to reduce two-thirds of its work force. The mobile unit took over a factory in Kamp Lintfort in western Germany from Siemens, which cost Siemens more than US$1 billion. Under the agreement, BenQ will have the right to use the Siemens brand for five years. Siemens owns a 2.5 percent stake in BenQ Corp. About Siemens Siemens (Berlin and Munich) -- http://www.siemens.com/-- is a global powerhouse in electrical engineering and electronics. The company has around 461,000 employees working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Siemens provides innovative technologies and comprehensive know-how to benefit customers in 190 countries. Founded more than 155 years ago, the company focuses on the areas of Information and Communications, Automation and Control, Power, Transportation, Medical, and Lighting. In fiscal 2005 (ended September 30), Siemens had sales from continuing operations of EUR75.4 billion and net income of EUR3.058 billion. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. * * * As reported in the TCR-AP on Oct. 31, Taiwan Ratings Corp. affirmed its twBB+/twB corporate credit ratings and twBB+ unsecured corporate bond issue rating on BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings removed all ratings from Credit Watch with negative implications, where they were placed on March 14, 2006, and withdrew all the ratings upon the company's request. E.U.-BAU: Claims Registration Ends January 8 -------------------------------------------- Creditors of E.U.-Bau GmbH have until Jan. 8 to register their claims with court-appointed provisional administrator Karsten Sauter. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Jan. 30, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rottweil Room 0.05 Branch Office Koernerstr. 29 Rottweil, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Rottweil opened bankruptcy proceedings against E.U.-Bau GmbH on Nov. 3, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: E.U.-Bau GmbH Attn: Ziya Ipekcioglu, Manager Haigerlocher Str. 28 72186 Empfingen, Germany The administrator can be contacted at: Karsten Sauter Berner Field 74 78628 Rottweil, Germany Tel: 0741/1754054 FABER BAUUNTERNEHMUNG: Claims Registration Ends January 15 ---------------------------------------------------------- Creditors of Faber Bauunternehmung GmbH have until Jan. 15 to register their claims with court-appointed provisional administrator Manfred Kuersch. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Feb. 2, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bad Neuenahr-Ahrweiler Hall 4 William Route 55-57 53474 Bad Neuenahr-Ahrweiler, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Bad Neuenahr-Ahrweiler opened bankruptcy proceedings against Faber Bauunternehmung GmbH on Nov. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Faber Bauunternehmung GmbH Attn: Elisabeth Faber, Manager Schulstr. 15 53534 Wiesemscheid, Germany The administrator can be contacted at: Manfred Kuersch Kirchstrasse 19 D-53518 Adenau, Germany Tel: 02691/93283 Fax: 02691/932840 E-mail: kanzlei@kuersch.de FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest ------------------------------------------------------------ Federal-Mogul Corporation and its debtor affiliates withdrew their request to transfer the equity interests of Servicio de Componente Automotrices, S.A. de C.V. and Servicios Administrativos Industriales, S.A. de C.V. to non-debtor subsidiary Cooperatief Federal-Mogul Dutch Investments U.A. The Debtors dropped their transfer plan with respect to the Mexican units in response to an informal objection raised by a party-in-interest. The Debtors did not disclose the identity of the objecting party. Accordingly, the Court only grants the Debtors' request with respect to the transfer of equity interests in Federal-Mogul Holding Deutschland GmbH to F-M Dutch HoldCo. Inter-company Equity Interest Transfers The Debtors secured an approval from the U.S. Bankruptcy Court for the District of Delaware for the inter-company transfers of equity interests in Federal-Mogul Holding Deutschland GmbH and certain Mexican subsidiaries to Cooperatief Federal-Mogul Dutch Investments U.A., a non-Debtor subsidiary. The equity interests are currently held either directly by Debtors Federal-Mogul Corporation, FM International LLC, and Federal-Mogul Ignition Company, or indirectly through their non- debtor affiliates. The proposed Transfers are part of an international restructuring that the Debtors intend to consummate before year- end to maximize the tax-efficiency of their corporate structure going forward. The restructuring will ultimately result in many of the Debtors' foreign subsidiaries being owned through the F-M Dutch HoldCo structure. F-M Dutch HoldCo, which was formed in connection with the Court-authorized French and Italian Recap, is a Dutch holding company with no current material liabilities and whose only significant assets are its indirect equity holdings in Federal-Mogul Holding Italy S.r.L. The Transfers will result in an estimated annual tax savings aggregating US$28,000,000, and will preserve a larger portion of post-tax funds that are repatriated through the F-M Dutch HoldCo structure. German Transfers F-M Germany is currently a wholly owned subsidiary of Federal- Mogul Corp., and is the parent of a number or subsidiaries that constitute about 60% of the Debtors' operations in Europe. The Debtors proposed to transfer ownership of F-M Germany from Federal-Mogul Corp., resulting in F-M Dutch HoldCo directly holding a 90% equity interest in F-M Germany with the remaining 10% held indirectly through a newly formed German partnership. The German Transfer allows the Debtors to effectuate their international restructuring and move funds up the corporate ownership chain to their United States parent companies. The German Transfer must be completed by the end of 2006 to allow the Debtors to take advantage of a number of beneficial tax attributes that are anticipated to result in an aggregate tax savings of approximately US$26,000,000. Mexican Transfers The Debtors' Mexican operations consist of 10 directly and indirectly held subsidiaries. None of the Mexican subsidiaries are Debtors in the Chapter 11 proceedings. Servicio de Componente Automotrices, S.A. de C.V., is the principal holding company for the Mexican businesses. The current shareholders of SEDECA are: (1) Debtor F-M International with a current interest of 25.52% interest in SEDECA; (2) Debtor F-M Ignition with a 70.74% interest in SEDECA; and (3) non-Debtor Federal-Mogul Canada Ltd., which is wholly owned by Federal-Mogul Corp., with a 3.74% interest in SEDECA. SEDECA directly or indirectly holds 100% of all of the SEDECA Subsidiaries except: * Servicios Administrativos Industriales, S.A. de C.V.; * Camshafts Castings de Mexico S. de R.L.; and * Federal-Mogul S.A. de C.V. The Debtors previously proposed to transfer the equity interests of SEDECA and SAISA to F-M Dutch HoldCo, which will permit the Debtors to avail themselves of certain tax advantages under Dutch and Mexican law. As part of the Mexican Transfer, the shareholders of the Mexican Subsidiaries will indirectly contribute their ownership interests in the Mexican Subsidiaries to F-M Dutch HoldCo in exchange for equity interests in F-M Dutch HoldCo. The Mexican Transfer is part of the Debtors' overall tax planning efforts to reduce the tax liability related to their Mexican operations. The Debtors estimated that the Mexican Transfers will result in an ownership structure that will confer a net US$2,000,000 annual savings in taxes. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. 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, Young, Jones & Weintraub, 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. (Federal-Mogul Bankruptcy News, Issue No. 122; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) FM-TRANSPORT: Claims Registration Ends January 8 ------------------------------------------------ Creditors of FM-Transport & Logistik GmbH have until Jan. 8 to register their claims with court-appointed provisional administrator Stephan Haspel. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Feb. 9, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Landau in der Pfalz Room 223 Marienring 13 76829 Landau in der Pfalz, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Landau in der Pfalz opened bankruptcy proceedings against FM-Transport & Logistik GmbH on Nov. 8, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: FM-Transport & Logistik GmbH Grosse Ahlmuehle 13 76865 Rohrbach, Germany Attn: Alfons Block, Manager Untere Hauptstr. 29 76863 Herxheim, Germany The administrator can be contacted at: Stephan Haspel Friedrich-Ebert-Str. 7 76829 Landau in der Pfalz, Germany Tel: 06341/51020 Fax: 06341/510229 FRUCHTIMPORT JUERGEN: Claims Registration Ends January 17 --------------------------------------------------------- Creditors of Fruchtimport Juergen Schroeder GmbH & Co. KG have until Jan. 17 to register their claims with court-appointed provisional administrator Wolfgang Hoppe. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on Feb. 28, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt/Main opened bankruptcy proceedings against Fruchtimport Juergen Schroeder GmbH & Co. KG on Oct. 27, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Fruchtimport Juergen Schroeder GmbH & Co. KG Josef-Eicher-Road 10 60437 Frankfurt/Main, Germany The administrator can be contacted at: Wolfgang Hoppe Mergenthalerallee 45-47 65760 Eschborn, Germany Tel: 06196/481969 Fax: 06196/482494 GUENTHER RUMLAND: Claims Registration Ends January 11 ----------------------------------------------------- Creditors of Guenther Rumland GmbH Forstwirtschaftliche Dienstleistungen und Landschaftspflege have until Jan. 11 to register their claims with court-appointed provisional administrator Hartwig Albers. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on Feb. 7, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Potsdam Hall 301 3rd Floor Branch Linden Road 6 14467 Potsdam, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Potsdam opened bankruptcy proceedings against Guenther Rumland GmbH Forstwirtschaftliche Dienstleistungen und Landschaftspflege on Nov. 15, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Guenther Rumland GmbH Forstwirtschaftliche Dienstleistungen und Landschaftspflege Attn: Guenther Rumland, Manager Semliner Dorfstrasse 39 14712 Rathenow, Germany The administrator can be contacted at: Hartwig Albers Luetzowstrasse 100 10785 Berlin, Germany HANS KONRAD: Claims Registration Ends January 17 ------------------------------------------------ Creditors of Hans Konrad GmbH have until Jan. 17 to register their claims with court-appointed provisional administrator Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting at 9:55 a.m. on Feb. 28, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt/Main opened bankruptcy proceedings against Hans Konrad GmbH on Oct. 31, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hans Konrad GmbH Attn: Hans Michael Konrad, Manager Roederichstrasse 52 60489 Frankfurt/Main, Germany The administrator can be contacted at: Dr. Jan Markus Plathner Lyoner Road 14 60528 Frankfurt/Main, Germany Tel: 069/9623340 Fax: 069/96233422 HUGO KOENIG: Claims Registration Ends January 12 ------------------------------------------------ Creditors of Hugo Koenig Fenster- und Tuerenfabrik Innenausbau GmbH have until Jan. 12 to register their claims with court- appointed provisional administrator Angelika Amend. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Feb. 13, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Frankfurt/Main opened bankruptcy proceedings against Hugo Koenig Fenster- und Tuerenfabrik Innenausbau GmbH on Oct. 30, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hugo Koenig Fenster- und Tuerenfabrik Innenausbau GmbH Flinschstrasse 8 60388 Frankfurt/Main, Germany The administrator can be contacted at: Angelika Amend Minnholzweg 2b D-61476 Kronberg, Germany Tel: 06173/78340 Fax: 06173/783422 MAZU MODEN: Creditors' Meeting Slated for January 8 --------------------------------------------------- The court-appointed provisional administrator for MaZu Moden GmbH, Bjoern Gehde, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:15 a.m. on Jan. 8. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 10:35 a.m. on March 19, at the same venue. Creditors have until Feb. 5, to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against MaZu Moden GmbH on Nov. 30, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MaZu Moden GmbH Jan-Petersen-Str. 14-18 12679 Berlin, Germany The administrator can be reached at: Dr. Bjoern Gehde Goethestr. 85 10623 Berlin, Germany PREU-PA: Creditors' Meeting Slated for January 11 ------------------------------------------------- The court-appointed provisional administrator for Preu-Pa Grundstuecksgesellschaft mbH & Co Galvanistrasse KG, Christoph Schulte-Kaubruegger, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:20 a.m. on Jan. 11. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg II. Stock Hall 218 District Court Place 1 14057 Berlin, Germany The Court will also verify the claims set out in the administrator's report at 9:30 a.m. on March 29 at the same venue. Creditors have until Jan. 30 to register their claims with the court-appointed provisional administrator. The District Court of Charlottenburg opened bankruptcy proceedings against Preu-Pa Grundstuecksgesellschaft mbH & Co Galvanistrasse KG on Nov. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Preu-Pa Grundstuecksgesellschaft mbH & Co Galvanistrasse KG Mommsenstr. 71 10629 Berlin, Germany The administrator can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin, Germany PSIVIDA LIMITED: Lender Frees Firm From Loan Covenants ------------------------------------------------------ pSivida Limited entered into an agreement with its principal institutional lender whereby the lender has agreed to a general forbearance with respect to any defaults through to and including the earlier of the closing of the Nordic Biotech Advisors (Nordic) transaction or March 31, 2007, subject to the satisfaction of closing conditions. The lender agreed: -- to allow the Company to transfer or grant security interests in the Company's MedidurTM and Mifepristone assets which would be necessary to complete specified financing transactions with Nordic; -- to forego the interest payment due on Jan. 2, 2007, in favor of adding approximately US$309,000 (AU$391,000) to the principal amount of the loan (representing the value of the American Depository Receipts (ADSs) with which the Company would have issued to satisfy the payment had it met certain conditions allowing it to pay with ADSs); -- to defer the Company's scheduled payment of US$800,000 (AU$1 million) for prior registration delay penalties until the earlier of the closing of the Nordic transaction or March 31, 2007; -- to forgive US$770,000 (AU$973,000) of additional registration delay penalties accruing through the earlier of the closing of the Nordic transaction or March 31, 2007; -- to amend the Company's loan covenants to release it from the obligation to satisfy a minimum cash balance test of 30% of the outstanding principal until March 31, 2007; and -- that the Company would have until ten days after the earlier of the closing of the Nordic transaction or March 31, 2007 to file a registration statement with respect to securities issuable on exercise of the lender's warrants. In return for the foregoing, the Company has issued to the lender warrants to purchase 1.5 million ADSs over five years with an exercise price of US$2.00 per ADS and has agreed, upon receipt of required approvals, including shareholder approval, and satisfaction of other standard conditions, to issue additional warrants to purchase 4.0 million ADSs over five years with an exercise of US$2.00, subject to adjustment based on the final terms of the Company's transaction with Nordic. The Company expects to close definitive documents with Nordic Biotech Advisors for a US$4 million (AU$5.1 million) corporate investment in the Company and a US$22 million (AU$27.8 million) investment over time in a 'Special Purpose Vehicle' that is expected to fully fund the Company's portion of costs to develop MedidurTM for the treatment of the chronic eye disease diabetic macular edema. About pSivida Limited Headquartered in Perth, Australia, pSivida Limited (NASDAQ:PSDV) (ASX:PSD) (Xetra:PSI) -- http://www.psivida.com/-- is an Australian is committed to biomedical applications of nano- technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's shares are listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. pSivida also operates subsidiaries in the United Kingdom, Singapore, Australia, and the United States. * * * Going Concern Doubt The company noted that its financial statements have been prepared assuming that it will continue as a going concern. After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default the note holder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. READALL GMBH: Creditors' Meeting Slated for January 11 ------------------------------------------------------ The court-appointed provisional administrator for ReadAll GmbH, Ralph Buenning, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 a.m. on Jan. 11. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Court House (New Building) Ostertorstr. 25-31 28195 Bremen, Germany The Court will also verify the claims set out in the administrator's report at 9:30 a.m. on Feb. 8, at the same venue. Creditors have until Jan. 16 to register their claims with the court-appointed provisional administrator. The District Court of Bremen opened bankruptcy proceedings against ReadAll GmbH on Oct. 24, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ReadAll GmbH Arster Hemm 52 28279 Bremen, Germany Attn: Hartmut Schmidt, Representative Robert-Hooke-Str. 28359 Bremen, Germany The administrator can be reached at: Ralph Buenning Domshof 18-20 28195 Bremen, Germany Tel: 0421/3686-0 Fax: 0421/3686-100 Web: http://www.schubra.de/ E-mail: InsOBremen@schubra.de SPEDITION GRAUMANN: Claims Registration Ends January 12 ------------------------------------------------------- Creditors of Spedition Graumann GmbH & Co. KG have until Jan. 12 to register their claims with court-appointed provisional administrator Wolfgang Folger. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Jan. 26, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Flensburg Hall A 220 Flensburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Flensburg opened bankruptcy proceedings against Spedition Graumann GmbH & Co. KG on Nov. 1, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Spedition Graumann GmbH & Co. KG Attn: Falk Redlich, Manager Industriestrasse 13 24848 Kropp, Germany The administrator can be contacted at: Wolfgang Folger Wrangelstrasse 17-19 24937 Flensburg, Germany ============= H U N G A R Y ============= CENTRAL EUROPEAN: Parent's Merger Cues Fitch to Affirm C Rating --------------------------------------------------------------- Fitch Ratings upgraded the Support rating of Intesa Sanpaolo, to 1 from 2 following the legal completion of its merger with Sanpaolo IMI. At the same time the bank's other ratings are affirmed at Issuer Default AA-, Short-term F1+, and Individual B. The Outlook on the Issuer Default rating remains Stable. In related rating actions Fitch has also affirmed all ratings assigned to Sanpaolo IMI at IDR AA- Stable Outlook, Short-term F1+, Individual B and Support 2 and simultaneously withdrew them as the bank ceased to operate as a separate legal entity following its merger into Banca Intesa, which has subsequently been renamed Intesa Sanpaolo. The agency also affirmed all ratings of Banca IMI, a 100%-owned subsidiary of Intesa Sanpaolo, at IDR AA- with a Stable Outlook, Short-term F1+ and Support 1. The ratings of the foreign subsidiaries of Intesa Sanpaolo are affirmed as listed below. Effective from Jan. 1, Sanpaolo IMI has been merged into Banca Intesa, which subsequently has changed its name to Intesa Sanpaolo. The bank's large size and its increased importance in the domestic and European banking sector, means that, in Fitch's opinion, the probability that the bank would receive support from the Italian authorities in case of need has increased and is now extremely high. Intesa Sanpaolo's IDR, Short-term and Individual ratings reflect the bank's leading domestic market share in retail and corporate banking, bancassurance and asset management. Intesa Sanpaolo expects to realize significant synergies totaling EUR1.6 billion by 2009 from the integration, mainly through reducing operating costs, which should help the bank achieve its targeted net income of around EUR7 billion by 2009. The group will operate through five macro areas concentrating on retail, private and SME banking, corporate and investment banking, public entities and infrastructure, foreign banks and insurance and asset management. Around 5% of the group's assets are located in Central and Eastern Europe, where it will have around 1,400 branches and six million customers. Banca IMI's ratings reflect its full ownership by Intesa Sanpaolo, its close integration in terms of operations and risk management within the group and the strategic importance of its investment banking and securities activities for the group. In Fitch's opinion, the creation of Intesa Sanpaolo will result in a formidable banking group, with a strong position to operate effectively in the domestic banking sector. Both merging banks are experienced in integrating merged and acquired operations, which should mitigate any integration risk. At the same time, both banks have a well-defined risk culture with strong and sophisticated risk management systems, which should help maintain good asset quality. With combined total equity of over EUR31 billion, Intesa Sanpaolo is Italy's second largest banking group by total assets. The group has headquarters in Turin and Milan and has a combined branch network of around 5,500 branches in Italy. Although less internationally diversified than other European banks of its size, Intesa Sanpaolo has banking subsidiaries in 10 CEE countries and a presence in 34 countries. Intesa Sanpaolo's foreign subsidiaries and their ratings are: Hungary: -- Central European International Bank: ratings affirmed at IDR A+ Negative Outlook, Short-term F1, Individual C, Support 1; and -- Inter-Europa Bank: Support rating affirmed at 1. Croatia: -- Privredna Banka Zagreb: Support rating affirmed at 2. Slovakia: -- Vseobecna Uverova Banka: ratings affirmed at IDR A+ Stable Outlook, Short-term F1, Individual C, Support 1. Slovenia: -- Banka Koper: ratings affirmed at IDR A+ Stable Outlook, Short-term F1, Individual C, Support 1. ============= I R E L A N D ============= MORAVAN-AEROPLANES: CzechAircraft s.r.o. Completes Acquisition -------------------------------------------------------------- CzechAircraft s.r.o. would commence its takeover of bankrupt aircraft maker Moravan-Aeroplanes a.s. this month after paying over CZK50 million to the company and its parent's creditors, Czech News Agency reports citing Petr Hajtmar, Moravan- Aeroplanes' receiver. CzechAircraft, controlled by Irish firm QucomHaps, had been the sole bidder in the first two tenders to acquire Moravan- Aeroplanes, but failed due to different reasons. In the fourth and final tender launched in November 2006, CzechAircraft bested local firm Dova Aircraft, after offering more than CZK50 million to the creditors of Moravan-Aeroplanes and parent Moravan, CTK relays. CzechAircraft recently completed the payment for the bankrupt assets, Mr. Hajtmar said. "Most assets will be taken over early in January, the rest in the course of the month," Jarmila Burianova, QucomHaps' representative in the Czech Republic, told CTK. About Moravan-Aeroplanes Headquartered in Otrokovice, Czech Republic, Moravan-Aeroplanes a.s. -- http://moravan.cz/-- produces the all-metal ZLIN aircraft ZLIN Z 142C, Z 242L, Z 143L and Z 143Lsi, including spare parts. It also operates a service center that is included in the assets being sold. The company employs 170 people staff. * * * The Regional Court in Brno declared Moravan-Aeroplanes bankrupt on June 18, 2004, at the request of management and employees. The company owes employees wages worth CZK12 million, over CZK60 million in social security premiums and CZK11 million in taxes. ========= I T A L Y ========= ALITALIA SPA: Transport Minister Wary of Air France-KLM Takeover ---------------------------------------------------------------- Alessandro Bianchi, Italy's Transportation Minister indicated that he would not be happy if national carrier Alitalia S.p.A. falls into foreign ownership, United Press International reports citing an interview by Radio 24. Mr. Bianchi said that Air France-KLM plans to convert Alitalia into a regional feeder for its European operations and claim the large passenger traffic and big hubs for itself, UPI relays. In a TCR-Europe report on Nov. 28, Alitalia confirmed that it is holding talks with Air France over a possible alliance. Alitalia, however, said that the talks are "still at an early stage and not exclusive." Alitalia noted that it has been cooperating with Air France under an extensive bilateral cooperation within SkyTeam, of which both airlines are members, and has implemented since 2002 a cross-shareholding setup. As reported in the TCR Europe on Dec. 1, airline industry experts expressed doubts that an Air France takeover would occur given Alitalia's history of unprofitability, poor management, labor unrest and political interference. "In conclusion, I would not be happy with [the takeover], but I would adapt to it," Mr. Bianchi was quoted by Radio 24 as saying. Meanwhile, local carrier Meridiana S.p.A. is reportedly eyeing to acquire Alitalia, UPI notes. As recently reported in the TCR-Europe, the Italian government formally launched the bidding process for its 30.1% stake in troubled national carrier Alitalia S.p.A. on Dec. 29, 2006. Italy's Ministry of Economy and Finance is inviting interested parties to submit a non-binding offer for around 30.1% to 49.9% of Alitalia's capital and 1,207,147,404 convertible bonds of the carrier's 7.5% 2002-2010 debenture loan. The sale will take place through a competitive procedure involving direct negotiations with potential buyers. Interested parties, which should have at least EUR100 million in capital, have until 6:00 p.m. on Jan. 29, 2007, to submit their written expression of interest to Merrill Lynch International, the sale advisor. According to the Ministry, potential buyers will be selected based on the economic terms of the offers received and an analysis of the business plans. The Ministry will also examine the compatibility of the offers and business plans with the Alitalia's restructuring, development and relaunch objectives. The Ministry also outlined mandatory commitments for the buyer to: -- keep at least a 30.1% stake in Alitalia until the business plan is successfully carried out: -- safeguard Alitalia's national identity; and -- guarantee the quality and quantity of services offered and coverage of the territory. Several Italian entrepreneurs are reportedly interested in Alitalia, The Times reports. Local bets include: -- Carlo Toto, founder of Air One, -- Luca di Montezemolo, head of Fiat and Ferrari; -- Diego Della Valle, chief of the Tod's shoe empire; and -- Banca Intesa and Sanpaolo IMI; The government aims to complete the process this month. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. In Europe, the company reaches 45 airports, with 1,238 flights per week. In the rest of the world, the Alitalia Group's aircrafts operate out of 32 airports with 255 flights per week. The Alitalia Group network is centered on two main airports, Rome Fiumicino and Milan Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182 aircrafts. 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 registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. NORTEL NETWORKS: Completes Sale of UMTS Ops to Alcatel-Lucent ------------------------------------------------------------- Nortel Networks Corp. has closed the sale of assets and liabilities related to its UMTS access business to Alcatel- Lucent. The sale closed on Dec. 31, 2006. As previously announced, the transaction is for US$320 million in cash less significant deductions and transaction related costs. The closing of the sale follows the signing of the definitive agreement on Dec. 4, 2006, and the signing of the non-binding Memorandum of Understanding between the companies on Sept. 1, 2006. As part of the agreement, approximately 1,700 of Nortel's UMTS access employees have transferred to Alcatel-Lucent. Regulatory approvals have been met. With the completion of this sale, Alcatel-Lucent acquired the UMTS access product portfolio, associated patents and tangible assets as well as customer contracts from Nortel. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- 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. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Brazil and Indonesia. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corp (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. In Europe, Nortel operates in the U.K., France, Germany, Spain, Italy and Turkey. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed US$2 billion notes. The outlook is stable. NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic ------------------------------------------------------------- Nortel Networks Corp. and Telefonica O2 Czech Republic, the largest provider of wireless voice and data services in the Czech Republic, have teamed to show how operators can use broadband wireless spectrum more efficiently. The two companies successfully demonstrated Europe's first CDMA2000 1xEV-DO Rev A call in the Telefonica O2 Czech Republic network at 450 MHz radio spectrum. This broadband capability is expected to enable Telefonica O2 Czech Republic to deliver more IP wireless services such as mobile music and interactive 3D gaming, VoIP, and high-speed file transfers; and support real- time interactive access to services such as push-to-talk, mobile television and video telephony. "We are glad that the 1xEV-DO Rev A deployment pilot has been successfully accomplished," said Pavel Kolar, Chief Network Infrastructure Officer, Telefonica O2 Czech Republic. "We have experienced significant improvement on the throughput and latency of Rev A data transfer. It clearly demonstrates that the latest CDMA2000 technology evolution, in combination with excellent radio propagation in the 450 MHz band, delivers improved customer benefits." "Nortel's 11-year experience with CDMA is helping us develop leading-edge solutions which benefit wireless operators by increasing revenue potential and enhancing the subscriber experience," said Wim Te Niet, president Central Region EMEA, NorTel: "With Telefonica O2 Czech Republic we're showing how Nortel's unique blend of broadband access products, IP core experience, network services and ability to deliver simple network upgrades helps to get the best from the wireless spectrum." The call was enabled by a simple upgrade from 1xEV-DO Rev 0 to Rev A technology. Using the same 1.25 MHz channel, CDMA2000 1xEV-DO Rev A provides both forward and reverse links with more capacity and higher data rates, with up to 3.1 Mbps in the forward link and 1.8 Mbps in the reverse link. These faster data rates combined with Quality of Service (QoS) and low latency, enables the provision of 3.5G services such as wireless gaming, streaming audio and video, and high performance push-to- talk capabilities. In addition to the Nortel upgrade, the demonstration was achieved using an ADU-500A CDMA EV-DO Rev A wireless modem from AnyDATA. Nortel CDMA 450 equipment creates networking efficiencies that help drive reduced capital and operating costs. The 1xEV-DO Rev A implementation only required one hardware addition -- the Rev A channel card -- on the Telefonica O2 Czech Republic network to enable the new service and maximize the operator's existing investment in 450 MHz spectrum and core network equipment. Nortel has provided EV-DO equipment to 21 of the 37 commercial networks with leading operators worldwide including Verizon Wireless and Sprint in the United States, Bell Mobility and Telus in Canada. Nortel was the first to commercially offer EV- DO in South America with Embratel, Brazil; in Central America with Telefonica Guatemala; and is now the first to deliver EV-DO at 450 MHz in Eastern Europe with Telefonica O2 Czech Republic. About Telefonica O2 Czech Republic Telefonica O2 Czech Republic a.s. offers the most comprehensive portfolio of voice and data services in this country. Special attention is paid to exploiting growth potential, in particular the company's data and Internet business. Telefonica O2 Czech Republic operates the largest fixed and mobile network including a unique 3rd generation network, CDMA (for data) and UMTS, enabling the transport of voice, data and video. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corp (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. In Europe, Nortel operates in the U.K., France, Germany, Spain, Italy and Turkey. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed US$2 billion notes. The outlook is stable. =================== K A Z A K H S T A N =================== ALFA-TRADER LLP: Creditors Must File Claims by Feb. 7 ----------------------------------------------------- LLP Alfa-Trader has declared insolvency. Creditors have until Feb. 7 to submit written proofs of claim to: LLP Alfa-Trader Buhar Jyrau Ave. 66 Karaganda Karaganda Region Kazakhstan CAI-KAZAKHSTAN: Proof of Claim Deadline Slated for Feb. 7 --------------------------------------------------------- The Branch of Central Asian Investment Company Cai-Kazakhstan has declared insolvency. Creditors have until Feb. 7 to submit written proofs of claim to: Cai-Kazakhstan Office 502 Respublika Square, 15 Almaty, Kazakhstan ENERGOREMONT LLP: Claims Registration Ends Feb. 7 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Stepnogorsky Energo Repair Energoremont insolvent. Creditors have until Feb. 7 to submit written proofs of claim to: LLP Stepnogorsky Energo Repair Energoremont Micro District 5, 14-215 Stepnogorsk Akmola Region Kazakhstan JANAOILSERVICE LLP: Mangistau Court Starts Bankruptcy Procedure --------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region commenced bankruptcy proceedings against LLP Janaoilservice on Dec. 4, 2006. OIL-GRAN LLP: Claims Filing Period Ends Feb. 7 ---------------------------------------------- LLP Oil-Gran has declared insolvency. Creditors have until Feb. 7 to submit written proofs of claim to: LLP Oil-Gran Office 3 Mametov Str. 54 West Kazakhstan Region Kazakhstan Tel: 8 (3112) 53-30-53 8 (3112) 53-77-78 =================== K Y R G Y Z S T A N =================== KENES-ANARHAISKAYA MJS: Creditors' Meeting Scheduled for Jan. 10 ---------------------------------------------------------------- Creditors of Kenes-Anarhaiskaya MJS will convene at 2:00 p.m. on Jan. 10 at: Lev Tolstoi Str. 20 Bishkek, Kyrgyzstan The Inter-District Court of Chui Region for Economic Issues declared Kenes-Anarhaiskaya MJS (Case No. ED-656/06 MCH-C5) insolvent on Oct. 27, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Creditors must submit their proofs of claim be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The Temporary Insolvency Manager is: Mr. Kubanychbek Duishenov Tel: (0-502) 65-84-13 ===================== N E T H E R L A N D S ===================== ALCATEL-LUCENT: Completes Takeover of Nortel's UMTS Operations -------------------------------------------------------------- Alcatel-Lucent disclosed that, after all regulatory approvals have been met, the acquisition of Nortel Network Corp.'s UMTS radio access business (UTRAN) and related assets has been completed on Dec. 31, 2006. In recent weeks, the two companies have achieved a number of significant milestones, the most important being the signature of the definitive agreement on Dec. 4, 2006. Nortel received a closing cash payment of US$320 million less significant deductions. With this acquisition, one in four UMTS operators -- about 40 customers around the world -- use Alcatel-Lucent UMTS solutions. Together with strengthened R&D and a broad products and solutions portfolio, Alcatel-Lucent is now uniquely positioned to lead the network technological evolutions from 3G to 4G -- relying on its OFDMA, SDR and MIMO expertise -- to address the customers' needs of today and tomorrow while realizing economies of scale. "This acquisition will enable the development teams to leverage additional capabilities from the integration into the broader Alcatel-Lucent and we count on the focus of the teams to deliver superior performance in the UMTS domain going forward," said Vivek Badrinath, France Telecom Group EVP Information Technology Networks & product Support. "We count on Alcatel-Lucent to serve the needs of mobilkom group moving forward," Boris Nemsic, CEO of mobilkom Austria, said. "Our customers will clearly benefit from the high value this acquisition brings, and the pre-integration work has progressed very well," said Mary Chan, President of Alcatel-Lucent's wireless activities. "Our combined expertise and portfolios will enable us to deliver the most compelling UMTS offer for our customers, allowing them to provide their subscribers with innovative and high-speed 3G services. Our aim is to achieve the optimum combination of Alcatel-Lucent and Nortel's technologies, with minimum customer disruption. We are well positioned to capture the UMTS market growth opportunity." With its undisputable wireless technology portfolio, encompassing CDMA/EV-DO, UMTS/HSPA, GSM/EDGE and WiMAX, Alcatel- Lucent is the only player positioned to craft 4G, taking the best from all technologies, to shape the future and deliver mobile broadband for all. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corp (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. In Europe, Nortel operates in the U.K., France, Germany, Spain, Italy and Turkey. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- 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. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Brazil and Indonesia. * * * As reported in the TCR-Europe on Dec. 14, following the completion of Alcatel S.A.'s merger with Lucent Technologies Inc., at which time Alcatel was renamed Alcatel Lucent, Fitch Ratings downgraded and removed Alcatel from Rating Watch Negative: -- Issuer Default Rating to BB from BBB-; and -- Senior unsecured debt to BB from BBB-. Alcatel's F3 short-term rating has also been withdrawn. The Rating Outlook for Alcatel-Lucent is Stable. Fitch has also withdrawn the following Lucent ratings due to the lack of clarity regarding Alcatel's support and, therefore, expected recovery of these securities in a distressed scenario: -- Issuer Default Rating BB-; -- Senior unsecured debt BB-; -- Convertible subordinated debt B; and -- Convertible trust preferred securities B. Moody's Investors Service downgraded to Ba2 from Ba1 the Corporate Family Rating of Alcatel S.A., which has completed its merger with Lucent Technologies Inc. and was renamed to Alcatel Lucent. The ratings for senior debt of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for short-term debt was affirmed. At the same time, Moody's raised the ratings for senior debt of Lucent to Ba3 from B1 reflecting both the standalone credit profile of Lucent and, given the strategic importance of Lucent to round-off the group's product range and regional presence expected financial support from Alcatel-Lucent, although this is not formally committed at this time. The ratings for the other legacy debt of Lucent were raised to B2 from B3 for subordinated debt and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable under its shelf registration. Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that management of the two entities will be fully integrated over the next several months and all of Lucent's non US activities merged with their Alcatel counterparts. This should result in a rapid convergence of the credit risks of the affected companies. The outlook for all these ratings I stable. Standard & Poor's, on Dec. 6, 2006, said that following news that the merger between French telecoms equipment supplier Alcatel and U.S. peer Lucent Technologies Inc. has received final approval from the U.S. Committee on Foreign Investments, it has lowered its long-term corporate credit and senior unsecured debt ratings on Alcatel -- now named Alcatel-Lucent to 'BB-' from 'BB', in line with its preliminary indication in its Nov. 7, 2006, research update. The 'B' short-term corporate credit rating on Alcatel-Lucent was affirmed. S&P said the outlook is positive. FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest ------------------------------------------------------------ Federal-Mogul Corporation and its debtor affiliates withdrew their request to transfer the equity interests of Servicio de Componente Automotrices, S.A. de C.V. and Servicios Administrativos Industriales, S.A. de C.V. to non-debtor subsidiary Cooperatief Federal-Mogul Dutch Investments U.A. The Debtors dropped their transfer plan with respect to the Mexican units in response to an informal objection raised by a party-in-interest. The Debtors did not disclose the identity of the objecting party. Accordingly, the Court only grants the Debtors' request with respect to the transfer of equity interests in Federal-Mogul Holding Deutschland GmbH to F-M Dutch HoldCo. Inter-company Equity Interest Transfers The Debtors secured an approval from the U.S. Bankruptcy Court for the District of Delaware for the inter-company transfers of equity interests in Federal-Mogul Holding Deutschland GmbH and certain Mexican subsidiaries to Cooperatief Federal-Mogul Dutch Investments U.A., a non-Debtor subsidiary. The equity interests are currently held either directly by Debtors Federal-Mogul Corporation, FM International LLC, and Federal-Mogul Ignition Company, or indirectly through their non- debtor affiliates. The proposed Transfers are part of an international restructuring that the Debtors intend to consummate before year- end to maximize the tax-efficiency of their corporate structure going forward. The restructuring will ultimately result in many of the Debtors' foreign subsidiaries being owned through the F-M Dutch HoldCo structure. F-M Dutch HoldCo, which was formed in connection with the Court-authorized French and Italian Recap, is a Dutch holding company with no current material liabilities and whose only significant assets are its indirect equity holdings in Federal-Mogul Holding Italy S.r.L. The Transfers will result in an estimated annual tax savings aggregating US$28,000,000, and will preserve a larger portion of post-tax funds that are repatriated through the F-M Dutch HoldCo structure. German Transfers F-M Germany is currently a wholly owned subsidiary of Federal- Mogul Corp., and is the parent of a number or subsidiaries that constitute about 60% of the Debtors' operations in Europe. The Debtors proposed to transfer ownership of F-M Germany from Federal-Mogul Corp., resulting in F-M Dutch HoldCo directly holding a 90% equity interest in F-M Germany with the remaining 10% held indirectly through a newly formed German partnership. The German Transfer allows the Debtors to effectuate their international restructuring and move funds up the corporate ownership chain to their United States parent companies. The German Transfer must be completed by the end of 2006 to allow the Debtors to take advantage of a number of beneficial tax attributes that are anticipated to result in an aggregate tax savings of approximately US$26,000,000. Mexican Transfers The Debtors' Mexican operations consist of 10 directly and indirectly held subsidiaries. None of the Mexican subsidiaries are Debtors in the Chapter 11 proceedings. Servicio de Componente Automotrices, S.A. de C.V., is the principal holding company for the Mexican businesses. The current shareholders of SEDECA are: (1) Debtor F-M International with a current interest of 25.52% interest in SEDECA; (2) Debtor F-M Ignition with a 70.74% interest in SEDECA; and (3) non-Debtor Federal-Mogul Canada Ltd., which is wholly owned by Federal-Mogul Corp., with a 3.74% interest in SEDECA. SEDECA directly or indirectly holds 100% of all of the SEDECA Subsidiaries except: * Servicios Administrativos Industriales, S.A. de C.V.; * Camshafts Castings de Mexico S. de R.L.; and * Federal-Mogul S.A. de C.V. The Debtors previously proposed to transfer the equity interests of SEDECA and SAISA to F-M Dutch HoldCo, which will permit the Debtors to avail themselves of certain tax advantages under Dutch and Mexican law. As part of the Mexican Transfer, the shareholders of the Mexican Subsidiaries will indirectly contribute their ownership interests in the Mexican Subsidiaries to F-M Dutch HoldCo in exchange for equity interests in F-M Dutch HoldCo. The Mexican Transfer is part of the Debtors' overall tax planning efforts to reduce the tax liability related to their Mexican operations. The Debtors estimated that the Mexican Transfers will result in an ownership structure that will confer a net US$2,000,000 annual savings in taxes. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. 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, Young, Jones & Weintraub, 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. (Federal-Mogul Bankruptcy News, Issue No. 122; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) GLOBAL POWER: Wants Until April 26 to Decide on Leases ------------------------------------------------------ Global Power Equipment Group and its debtor-affiliates ask the U.S Bankruptcy Court for the District of Delaware to further extend, until April 26, 2007, the period within which it can assume, assume or assign, or reject unexpired leases of nonresidential real property. The Debtors tells the Court that they have five unexpired leases of nonresidential real property, including, the Debtors' headquarters in Tulsa, Oklahoma; two of Williams Group facilities in Stone Mountain, Georgia and Lakeland, Florida; and Branden Group facilities in Tulsa, Oklahoma. The Debtors assure the Court that any lessor will not be harmed as a result of the requested extension, since they will continue to comply with their postpetition obligations. Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. =========== R U S S I A =========== DALNEVOSTOCHNAYA OIL: Creditors Must File Claims by Feb. 9 ---------------------------------------------------------- Creditors of OJSC Dalnevostochnaya Oil Company (TIN 2721042106) have until Feb. 9 to submit written proofs of claim to: A. Krylov, Insolvency Manager Office 9 Amurskiy Avenue 11 680028 Khabarovsk Region Russia Tel./Fax: 347-060 The Arbitration Court of Khabarovsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A73-11813/2006-36. The Debtor can be reached at: OJSC Dalnevostochnaya Oil Company Dzerzhinskogo Str. 71 Khabarovsk Region Russia DOLGOVSKOYE CJSC: Kurgan Bankruptcy Hearing Slated for March 14 --------------------------------------------------------------- The Arbitration Court of Kurgan Region will convene on March 14 to hear the bankruptcy supervision procedure on CJSC Dolgovskoye. The case is docketed under Case No. A34-7277/2006. The Temporary Insolvency Manager is: D. Ustyuzhanin K. Myakotina Str. 117/21 Kurgan Region Russia The Debtor can be reached at: CJSC Dolgovskoye Dolgie Chastoozerskiy Region Kurgan Region Russia KARAVAY OJSC: Creditors Must File Claims by Feb. 9 -------------------------------------------------- Creditors of OJSC Karavay (TIN 6154031480) have until Feb. 9 to submit written proofs of claim to: Y. Petrov, Insolvency Manager Office 201 Krasnoarmeyskaya Str. 109 344010 Rostov-na-Donu Russia The Arbitration Court of Rostov Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-18528/05-S2-7. The Arbitration Court of Rostov Region is located at: Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: OJSC Karavay 1st Kotelnaya Str. 79-A Taganrog 347910 Rostov Region Russia KRASNOYARSKIY FACTORY: Creditors Must File Claims by Feb. 9 ----------------------------------------------------------- Creditors of OJSC Krasnoyarskiy Factory of Towed Machinery have until Feb. 9 to submit written proofs of claim to: S. Vasilyev, Insolvency Manager Post User Box 20647 660017 Krasnoyarsk Region Russia The Arbitration Court of Krasnoyarsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-3087/04-s4. The Arbitration Court of Krasnoyarsk Region is located at: Lenina Str. 143 660021 Krasnoyarsk Region Russia The Debtor can be reached at: OJSC Krasnoyarskiy Factory of Towed Machinery Zavodskaya Str. 1 Sosnovoborsk 662500 Krasnoyarsk Region Russia LYSVA-WOOD CJSC: Creditors Must File Claims by Feb. 9 ----------------------------------------------------- Creditors of CJSC Lysva-Wood have until Feb. 9 to submit written proofs of claim to: Y. Shumilov, Insolvency Manager M. Raskovoy Str. 1 Solikamsk 618540 Perm Region Russia The Arbitration Court of Perm Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A50-11680/2006-B. The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: CJSC Lysva-Wood Galyagina Str. 1 Kormovishe Lysvenskiy Region Perm Region Russia PRIKAMYE CJSC: Selling Assets Via Public Auction on Jan. 19 ----------------------------------------------------------- The insolvency manager, the bidding organizer for CJSC Beverages Of Prikamye, will open a public auction for the company's properties at 11:00 a.m. on Jan. 19 at: CJSC Beverages of Prikamye Office 35 Mira Str. 45A 614022 Perm Region Russia The company has set a RUR5,020,000 starting price for the auctioned assets. To participate, bidders have until Jan. 17 to deposit an amount to: CJSC Beverages of Prikamye Settlement Account 40702810749490110282 in Joint-Stock Commercial Sberegatelnyj Bank RF (OJSC) Dzerzhinskiy Branch 6984, Perm BIK 045773603 Correspondent Account 3010181090000000603 Bidding documents must be submitted to: Insolvency Manager, Bidding Organizer Office 35 Mira Str., 45A 614022 Perm Region Russia Tel/Fax: 8(342) 227-49-90 8-902-473-71-35 The Debtor can be reached at: CJSC Beverages of Prikamye Office 35 Mira Str. 45A 614022 Perm Region Russia SAMARSKAYA GAS: Creditors Must File Claims by Feb. 9 ---------------------------------------------------- Creditors of LLC Samarskaya Gas Company have until Feb. 9 to submit written proofs of claim to: V. Ulyanov, Temporary Insolvency Manager Office 402 Moskovskoye Shosse 125B 443111 Samara Region Russia The Arbitration Court of Samara region commenced bankruptcy supervision procedure on LLC Samarskaya Gas Company. The case is docketed under Case No. A55-12509/2006. The Arbitration Court of Samara Region is located at: Avrory Str. 148 Samara Region Russia The Debtor can be reached at: LLC Samarskaya Gas Company Stara Zavora Str. 88-77 Samara Region Russia SERGACHANKA CJSC: Bankruptcy Hearing Slated for March 27 -------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region will convene at 10:00 a.m. on March 27 to hear the bankruptcy supervision procedure on CJSC Sergachanka (TIN 5229004519). The case is docketed under Case No. A43-30821/2006 24-565. The Temporary Insolvency Manager is: N. Slesar Energetikov Str. 14 Gagino Gaginskiy Region 607870 Nizhniy Novgorod Region Russia The Arbitration Court of Nizhniy Novgorod Region is located at: Kremlin 9 603082 Nizhniy Novgorod Region Russia The Debtor can be reached at: CJSC Sergachanka Molodyezhnyj 1A Sergach Nizhniy Novgorod Region Russia SIB-OIL-SERVICE LLC: Bankruptcy Hearing Slated for Feb. 22 ---------------------------------------------------------- The Arbitration Court of Tyumen Region will convene on Feb. 22 to hear the bankruptcy supervision procedure on LLC Sib-Oil- Service. The case is docketed under Case No. A-70-8345/3-2006. The Temporary Insolvency Manager is: I. Kravchenko Office 242 Melnikayte Str. 106 625026 Tyumen Region Russia The Arbitration Court of Tyumen Region is located at: Khokhryakova Str. 77 627000 Tyumen Region Russia The Debtor can be reached at: LLC Sib-Oil-Service Nekrasova Str. 11/1 Tyumen Region Russia SIS CJSC: Creditors Must File Claims by Jan. 9 ---------------------------------------------- Creditors of CJSC Trading House Sis have until Jan. 9 to submit written proofs of claim to: T. Potekhina, Insolvency Manager Krupskoy Str. 35 Yakutsk 677007 Sakha Republic Russia The Arbitration Court of Sakha Republic commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A58-6851/06. The Debtor can be reached at: CJSC Trading House Sis Glukhoy Per. 2/1 Yakutsk Sakha Republic Russia SKIF LLC: Creditors Must File Claims by Jan. 9 ---------------------------------------------- Creditors of LLC Furniture Factory Skif have until Jan. 9 to submit written proofs of claim to: E. Volk, Insolvency Manager Post User Box 4775 614023 Perm Region Russia The Arbitration Court of Perm Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-50-8794/2006-B. The Arbitration Court of Perm Region is located at: Lunacharskogo Str. 3 Perm Region Russia The Debtor can be reached at: LLC Furniture Factory Skif Lebedeva Str. 37 Perm Region Russia SREDNEVOLZHSKIY TRADING: Creditors Must File Claims by Feb. 9 ------------------------------------------------------------- Creditors of CJSC Srednevolzhskiy Trading House have until Feb. 9 to submit written proofs of claim to: A. Kuznetsov, Insolvency Manager Apartment 25 Taktasha Str. 26 Naberezhnye Chelny 423806 Tatarstan Republic Russia The Arbitration Court of Samara Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A55-6848/2006 38. The Arbitration Court of Samara Region is located at: Avrory Str. 148 Samara Region Russia The Debtor can be reached at: CJSC Srednevolzhskiy Trading House Tolyatti Region Russia TAT-AGRO-PROM-STORY OJSC: Creditors Must File Claims by Jan. 9 -------------------------------------------------------------- Creditors OJSC Bugulminskiy Brickworks Tat-Agro-Prom-Stroy have until Jan. 9 to submit written proofs of claim to: R. Samigullin, Insolvency Manager Post User Box 46 Bugulma 423239 Tatarstan Republic Russia The Arbitration Court of Tatarstan Republic commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A65-19803/2006-SG4-40. The Arbitration Court of Tatarstan Republic is located at: Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Republic Russia The Debtor can be reached at: OJSC Bugulminskiy Brickworks Tat-Agro-Prom-Story Bugulma Tatarstan Republic Russia URALSKIY JEWELER: Creditors Must File Claims by Feb. 9 ------------------------------------------------------ Creditors of CJSC Uralskiy Jeweler have until Feb. 9 to submit written proofs of claim to: D. Lazarev Post User Box 106 Central Post Office Ekaterinburg 620000 Sverdlovsk Region Russia The Arbitration Court of Sverdlovsk Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A60-4634/06-S11. The Arbitration Court of Sverdlovsk Region is located at: Lenina Pr. 34 620151 Ekaterinburg Region Russia The Debtor can be reached at: CJSC Uralskiy Jeweler Rodonitovaya Str. 23-12 Ekaterinburg Sverdlovsk Region Russia ZEYSKIY LLC: Creditors Must File Claims by Feb. 9 ------------------------------------------------- Creditors of LLC Meat and Milk Combine Zeyskiy have until Feb. 9 to submit written proofs of claim to: D. Gumirov, Insolvency Manager Lenina Str. 191 Blagoveshensk Amur Region Russia The Arbitration Court of Amur Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A04-3706/06-7/150 B. The Debtor can be reached at: LLC Meat and Milk Combine Zeyskiy Lenina Str. 233a Zeya Amur Region Russia ============================= S L O V A K R E P U B L I C ============================= COMPUTER SCIENCES: Unveils Federal Contracts in Third Quarter ------------------------------------------------------------- Computer Sciences Corp. disclosed that since Oct. 1, 2006, its Federal Sector business unit has signed 110 previously unannounced contracts and subcontracts during CSC's fiscal 2007 third quarter, which ends Dec. 29, 2006. These contracts have a total estimated value of US$643 million if all contract options are exercised. The performance periods for the contracts range from one month to 10 years. Civil agencies accounted for 40 awards with a total value of approximately US$115 million. Department of Defense agencies accounted for 70 awards with a total value of approximately US$528 million. "CSC's Federal Sector business unit continues its robust performance and is delivering according to our expectations," said CSC Chairman and Chief Executive Officer Van B. Honeycutt. "These contracts signify the confidence our clients have in CSC's ability to apply our vast experience and expertise to deliver business results for projects on the largest and smallest scales for a diverse cross section of agencies." Significant areas of award activity include the Departments of the Navy and Army, the National Aeronautics and Space Administration, the intelligence community and state and local agencies. All expressed contract award terms and values represent the amounts that CSC expects to receive from the agreements if all options are exercised. Headquartered in El Segundo, Calif., Computer Sciences Corporation (NYSE: CSC) -- http://www.csc.com/-- is a global information technology services company. The company's services include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. It maintains operations in Australia, China, Czech Republic, Slovakia, Denmark, France, among others. * * * As reported in the Troubled Company Reporter-Europe yesterday, Computer Sciences Corp. secured consents from the holders of the US$200-million aggregate outstanding principal amount of its 6-1/4% Notes due March 15, 2009, issued under the Indenture, dated as of March 8, 1999, among CSC, as issuer, and Citibank, N.A., a national banking association, as trustee. CSC was requesting a one-time waiver of any default or event of default that has arisen or may arise by virtue of CSC's failure to file with the U.S. Securities and Exchange Commission and furnish to the Trustee and holders of the Notes, certain reports required to be so filed and furnished by CSC pursuant to the terms of the Indenture. Approval of the Waiver effectively extends the existing 30-day cure period in the Indenture by 60 days with respect to the reporting requirements in the Indenture, which is consistent with the cure period for the reporting requirements under the indentures that govern CSC's three other outstanding series of notes and similar to the cure period provided in the waiver of default granted on Nov. 17, 2006, by CSC's lenders under its US$1 billion credit agreement for failure to comply with the reporting covenant in the Credit Agreement. Each holder of record on Dec. 11, 2006, who validly delivered their consent, and did not revoke such consent, will receive a payment of US$1.25 for each US$1,000 principal amount of Notes to which such consent related. If CSC has not filed its 2007 Second Quarter Report with the SEC on or before 5:30 p.m., New York City time, on Jan. 5, CSC will pay on the following business day, or as promptly as practicable thereafter, to each holder of record on Dec. 11, 2006, who validly delivered their consent, and did not revoke such consent, an additional US$1.25 for each US$1,000 in principal amount of Notes. VSEOBECNA UVEROVA: Fitch Keeps Individual Rating at C ----------------------------------------------------- Fitch Ratings upgraded the Support rating of Intesa Sanpaolo to 1 from 2 following the legal completion of its merger with Sanpaolo IMI. At the same time the bank's other ratings are affirmed at Issuer Default AA-, Short-term F1+, and Individual B. The Outlook on the Issuer Default rating remains Stable. In related rating actions Fitch has also affirmed all ratings assigned to Sanpaolo IMI at IDR AA- Stable Outlook, Short-term F1+, Individual B and Support 2 and simultaneously withdrew them as the bank ceased to operate as a separate legal entity following its merger into Banca Intesa, which has subsequently been renamed Intesa Sanpaolo. The agency also affirmed all ratings of Banca IMI, a 100%-owned subsidiary of Intesa Sanpaolo, at IDR AA- with a Stable Outlook, Short-term F1+ and Support 1. The ratings of the foreign subsidiaries of Intesa Sanpaolo are affirmed as listed below. Effective from Jan. 1, Sanpaolo IMI has been merged into Banca Intesa, which subsequently has changed its name to Intesa Sanpaolo. The bank's large size and its increased importance in the domestic and European banking sector, means that, in Fitch's opinion, the probability that the bank would receive support from the Italian authorities in case of need has increased and is now extremely high. Intesa Sanpaolo's IDR, Short-term and Individual ratings reflect the bank's leading domestic market share in retail and corporate banking, bancassurance and asset management. Intesa Sanpaolo expects to realize significant synergies totaling EUR1.6 billion by 2009 from the integration, mainly through reducing operating costs, which should help the bank achieve its targeted net income of around EUR7 billion by 2009. The group will operate through five macro areas concentrating on retail, private and SME banking, corporate and investment banking, public entities and infrastructure, foreign banks and insurance and asset management. Around 5% of the group's assets are located in Central and Eastern Europe, where it will have around 1,400 branches and six million customers. Banca IMI's ratings reflect its full ownership by Intesa Sanpaolo, its close integration in terms of operations and risk management within the group and the strategic importance of its investment banking and securities activities for the group. In Fitch's opinion, the creation of Intesa Sanpaolo will result in a formidable banking group, with a strong position to operate effectively in the domestic banking sector. Both merging banks are experienced in integrating merged and acquired operations, which should mitigate any integration risk. At the same time, both banks have a well-defined risk culture with strong and sophisticated risk management systems, which should help maintain good asset quality. With combined total equity of over EUR31 billion, Intesa Sanpaolo is Italy's second largest banking group by total assets. The group has headquarters in Turin and Milan and has a combined branch network of around 5,500 branches in Italy. Although less internationally diversified than other European banks of its size, Intesa Sanpaolo has banking subsidiaries in 10 CEE countries and a presence in 34 countries. Intesa Sanpaolo's foreign subsidiaries and their ratings are: Hungary: -- Central European International Bank: ratings affirmed at IDR A+ Negative Outlook, Short-term F1, Individual C, Support 1; and -- Inter-Europa Bank: Support rating affirmed at 1. Croatia: -- Privredna Banka Zagreb: Support rating affirmed at 2. Slovakia: -- Vseobecna Uverova Banka: ratings affirmed at IDR A+ Stable Outlook, Short-term F1, Individual C, Support 1. Slovenia: -- Banka Koper: ratings affirmed at IDR A+ Stable Outlook, Short-term F1, Individual C, Support 1. =============== S L O V E N I A =============== BANKA KOPER: Fitch Affirms Individual Rating at C ------------------------------------------------- Fitch Ratings upgraded the Support rating of Intesa Sanpaolo to 1 from 2 following the legal completion of its merger with Sanpaolo IMI. At the same time the bank's other ratings are affirmed at Issuer Default AA-, Short-term F1+, and Individual B. The Outlook on the Issuer Default rating remains Stable. In related rating actions Fitch has also affirmed all ratings assigned to Sanpaolo IMI at IDR AA- Stable Outlook, Short-term F1+, Individual B and Support 2 and simultaneously withdrew them as the bank ceased to operate as a separate legal entity following its merger into Banca Intesa, which has subsequently been renamed Intesa Sanpaolo. The agency also affirmed all ratings of Banca IMI, a 100%-owned subsidiary of Intesa Sanpaolo, at IDR AA- with a Stable Outlook, Short-term F1+ and Support 1. The ratings of the foreign subsidiaries of Intesa Sanpaolo are affirmed as listed below. Effective from Jan. 1, Sanpaolo IMI has been merged into Banca Intesa, which subsequently has changed its name to Intesa Sanpaolo. The bank's large size and its increased importance in the domestic and European banking sector, means that, in Fitch's opinion, the probability that the bank would receive support from the Italian authorities in case of need has increased and is now extremely high. Intesa Sanpaolo's IDR, Short-term and Individual ratings reflect the bank's leading domestic market share in retail and corporate banking, bancassurance and asset management. Intesa Sanpaolo expects to realize significant synergies totaling EUR1.6 billion by 2009 from the integration, mainly through reducing operating costs, which should help the bank achieve its targeted net income of around EUR7 billion by 2009. The group will operate through five macro areas concentrating on retail, private and SME banking, corporate and investment banking, public entities and infrastructure, foreign banks and insurance and asset management. Around 5% of the group's assets are located in Central and Eastern Europe, where it will have around 1,400 branches and six million customers. Banca IMI's ratings reflect its full ownership by Intesa Sanpaolo, its close integration in terms of operations and risk management within the group and the strategic importance of its investment banking and securities activities for the group. In Fitch's opinion, the creation of Intesa Sanpaolo will result in a formidable banking group, with a strong position to operate effectively in the domestic banking sector. Both merging banks are experienced in integrating merged and acquired operations, which should mitigate any integration risk. At the same time, both banks have a well-defined risk culture with strong and sophisticated risk management systems, which should help maintain good asset quality. With combined total equity of over EUR31 billion, Intesa Sanpaolo is Italy's second largest banking group by total assets. The group has headquarters in Turin and Milan and has a combined branch network of around 5,500 branches in Italy. Although less internationally diversified than other European banks of its size, Intesa Sanpaolo has banking subsidiaries in 10 CEE countries and a presence in 34 countries. Intesa Sanpaolo's foreign subsidiaries and their ratings are: Hungary: -- Central European International Bank: ratings affirmed at IDR A+ Negative Outlook, Short-term F1, Individual C, Support 1; and -- Inter-Europa Bank: Support rating affirmed at 1. Croatia: -- Privredna Banka Zagreb: Support rating affirmed at 2. Slovakia: -- Vseobecna Uverova Banka: ratings affirmed at IDR A+ Stable Outlook, Short-term F1, Individual C, Support 1. Slovenia: -- Banka Koper: ratings affirmed at IDR A+ Stable Outlook, Short-term F1, Individual C, Support 1. ========= S P A I N ========= NORTEL NETWORKS: Completes Sale of UMTS Ops to Alcatel-Lucent ------------------------------------------------------------- Nortel Networks Corp. has closed the sale of assets and liabilities related to its UMTS access business to Alcatel- Lucent. The sale closed on Dec. 31, 2006. As previously announced, the transaction is for US$320 million in cash less significant deductions and transaction related costs. The closing of the sale follows the signing of the definitive agreement on Dec. 4, 2006, and the signing of the non-binding Memorandum of Understanding between the companies on Sept. 1, 2006. As part of the agreement, approximately 1,700 of Nortel's UMTS access employees have transferred to Alcatel-Lucent. Regulatory approvals have been met. With the completion of this sale, Alcatel-Lucent acquired the UMTS access product portfolio, associated patents and tangible assets as well as customer contracts from Nortel. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- 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. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Brazil and Indonesia. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corp (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. In Europe, Nortel operates in the U.K., France, Germany, Spain, Italy and Turkey. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed US$2 billion notes. The outlook is stable. NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic ------------------------------------------------------------- Nortel Networks Corp. and Telefonica O2 Czech Republic, the largest provider of wireless voice and data services in the Czech Republic, have teamed to show how operators can use broadband wireless spectrum more efficiently. The two companies successfully demonstrated Europe's first CDMA2000 1xEV-DO Rev A call in the Telefonica O2 Czech Republic network at 450 MHz radio spectrum. This broadband capability is expected to enable Telefonica O2 Czech Republic to deliver more IP wireless services such as mobile music and interactive 3D gaming, VoIP, and high-speed file transfers; and support real- time interactive access to services such as push-to-talk, mobile television and video telephony. "We are glad that the 1xEV-DO Rev A deployment pilot has been successfully accomplished," said Pavel Kolar, Chief Network Infrastructure Officer, Telefonica O2 Czech Republic. "We have experienced significant improvement on the throughput and latency of Rev A data transfer. It clearly demonstrates that the latest CDMA2000 technology evolution, in combination with excellent radio propagation in the 450 MHz band, delivers improved customer benefits." "Nortel's 11-year experience with CDMA is helping us develop leading-edge solutions which benefit wireless operators by increasing revenue potential and enhancing the subscriber experience," said Wim Te Niet, president Central Region EMEA, NorTel: "With Telefonica O2 Czech Republic we're showing how Nortel's unique blend of broadband access products, IP core experience, network services and ability to deliver simple network upgrades helps to get the best from the wireless spectrum." The call was enabled by a simple upgrade from 1xEV-DO Rev 0 to Rev A technology. Using the same 1.25 MHz channel, CDMA2000 1xEV-DO Rev A provides both forward and reverse links with more capacity and higher data rates, with up to 3.1 Mbps in the forward link and 1.8 Mbps in the reverse link. These faster data rates combined with Quality of Service (QoS) and low latency, enables the provision of 3.5G services such as wireless gaming, streaming audio and video, and high performance push-to- talk capabilities. In addition to the Nortel upgrade, the demonstration was achieved using an ADU-500A CDMA EV-DO Rev A wireless modem from AnyDATA. Nortel CDMA 450 equipment creates networking efficiencies that help drive reduced capital and operating costs. The 1xEV-DO Rev A implementation only required one hardware addition -- the Rev A channel card -- on the Telefonica O2 Czech Republic network to enable the new service and maximize the operator's existing investment in 450 MHz spectrum and core network equipment. Nortel has provided EV-DO equipment to 21 of the 37 commercial networks with leading operators worldwide including Verizon Wireless and Sprint in the United States, Bell Mobility and Telus in Canada. Nortel was the first to commercially offer EV- DO in South America with Embratel, Brazil; in Central America with Telefonica Guatemala; and is now the first to deliver EV-DO at 450 MHz in Eastern Europe with Telefonica O2 Czech Republic. About Telefonica O2 Czech Republic Telefonica O2 Czech Republic a.s. offers the most comprehensive portfolio of voice and data services in this country. Special attention is paid to exploiting growth potential, in particular the company's data and Internet business. Telefonica O2 Czech Republic operates the largest fixed and mobile network including a unique 3rd generation network, CDMA (for data) and UMTS, enabling the transport of voice, data and video. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corp (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. In Europe, Nortel operates in the U.K., France, Germany, Spain, Italy and Turkey. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed US$2 billion notes. The outlook is stable. =========== S W E D E N =========== METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB ------------------------------------------------------------ Metso Oyj finalized on Dec. 29, 2006, the divestment of the shares of Metso Powdermet AB in Sweden to Sandvik AB following the regulatory approvals. About Metso Headquartered in Helsinki, Finland, Metso Corporation -- http://www.metso.com/-- is a global engineering and technology corporation with 2005 net sales of approximately EUR4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. The company's principal production plants are located in Brazil, China, Finland, France, Germany, India, Italy, South Africa, Sweden, the United Kingdom and the United States. * * * As reported in the TCR-Europe on April 11, Standard & Poor's Ratings Services revised its outlook on Finland-based machinery and engineering group Metso Corp. to positive from stable, reflecting improvements in the group's operating performance and capital structure that offer it the potential to return to a low investment-grade rating. The 'BB+' long-term and 'B' short-term corporate credit ratings, as well as the 'BB' senior unsecured debt rating on the group were affirmed. ===================== S W I T Z E R L A N D ===================== BISANG FAHRZEUGTECHNIK: Court Suspends Bankruptcy Process --------------------------------------------------------- The Bankruptcy Court of Willisau suspended the bankruptcy proceedings of JSC Bisang Fahrzeugtechnik on Nov. 27, 2006, pursuant to Article 230 of the Swiss Bankruptcy Code. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF5,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Aug. 16, 2006, can be reached at: JSC Bisang Fahrzeugtechnik Bahnhofstrasse 28 6244 Nebikon Lucerne Switzerland The Bankruptcy Service of Willisau can be reached at: Bankruptcy Service of Willisau 6130 Willisau Lucerne Switzerland EXPO AUTOSPRITZWERK: Sursee Court Starts Bankruptcy Proceedings --------------------------------------------------------------- The Bankruptcy Court of Sursee commenced bankruptcy proceedings against JSC EXPO Autospritzwerk on Oct. 25, 2006. The Debtor can be reached at: JSC EXPO Autospritzwerk Luzernerstrasse 19 6206 Neuenkirch Lucerne Switzerland The Bankruptcy Service of Sursee can be reached at: Bankruptcy Service of Sursee 6018 Buttisholz Lucerne Switzerland JOST A. & O. STOREN: Sursee Court Starts Bankruptcy Proceedings --------------------------------------------------------------- The Bankruptcy Court of Sursee commenced bankruptcy proceedings against JSC Jost A. & O. Storen on Oct. 25, 2006. The Debtor can be reached at: JSC Jost A. & O. Storen Gislerfeld 62 6234 Triengen Lucerne Switzerland The Bankruptcy Service of Sursee can be reached at: Bankruptcy Service of Sursee 6018 Buttisholz Lucerne Switzerland PENSIONKASSE PLUS: Zug Court Closes Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Zug entered Nov. 13, 2006, an order closing the bankruptcy proceedings of Pension Cashier's Office Pensionskasse Plus. The Debtor can be reached at: Pension Cashier's Office Pensionskasse Plus Rotfluhstrasse 91 8702 Zollikon Zurich Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland M & A PARTNERS: Zug Court Closes Bankruptcy Proceedings ------------------------------------------------------- The Bankruptcy Court of Zug entered Nov. 7, 2006, an order closing the bankruptcy proceedings of JSC M & A Partners. The Debtor can be reached at: JSC M & A Partners Graben 8 6301 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland MODE TIME: Olten Court Closes Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Olten entered Nov. 8, 2006, an order closing the bankruptcy proceedings of JSC Mode Time Out. The Debtor can be reached at: JSC Mode Time Out Aarauerstrasse 48 4600 Olten Solothurn Switzerland The Bankruptcy Service of Olten can be reached at: Bankruptcy Service of Olten 4702 Oensingen Solothurn Switzerland MSC MARKETING: Sursee Court Starts Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Court of Sursee commenced bankruptcy proceedings against LLC MSC Marketing Service Consult on Nov. 14, 2006. The Debtor can be reached at: LLC MSC Marketing Service Consult Dammstrasse 19 6300 Zug Switzerland The Bankruptcy Service of Sursee can be reached at: Bankruptcy Service of Sursee 6018 Buttisholz Lucerne Switzerland STAR FILTER: Zug Court Closes Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Zug entered Nov. 13, 2006, an order closing the bankruptcy proceedings of JSC Star Filter. The Debtor can be reached at: JSC Star Filter 12 6300 Zug Switzerland The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland TIFFANY UHREN: Olten Court Suspends Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Olten suspended the bankruptcy proceedings of JSC Tiffany Uhren-und Handels on Nov. 27, 2006, pursuant to Article 230 of the Swiss Bankruptcy Code. The bankruptcy proceedings will be declared closed once creditors fail to submit their claims and pay a CHF5,000 deposit. The right for the additional deposit is retained. The Debtor, declared bankrupt on Aug. 8, 2006, can be reached at: JSC Tiffany Uhren-und Handels Bleichestrasse 6 4632 Trimbach Solothurn Switzerland The Bankruptcy Service of Olten can be reached at: Bankruptcy Service of Olten 4702 Oensingen Solothurn Switzerland ============= U K R A I N E ============= GNIEVAN BAKERY: Registration of Claims Ends January 13 ------------------------------------------------------ Creditors of LLC Gnievan Bakery Produkts Industrial Complex (code EDRPOU 31774384) have until Jan. 13 to submit written proofs of claim to: Nadezhda Vozniakevich, Insolvency Manager Hmelnickiy Str. 2-a Vinnica Region Tel: 55-49-60 66-07-85 The Economic Court of Vinnica Region commenced bankruptcy proceeding against the company after finding it insolvent on Nov. 16, 2006. The case is docketed under Case No. 10/171-06. The Economic Court of Vinnica Region is located at: Hmelnickiy Str. 7 21036 Vinnica Region Ukraine The Debtor be reached at: LLC Gnievan Bakery Produkts Industrial Complex Promyshlennaya Str. 1 Gnievan Tyvriv District Vinnica Region Ukraine KHRESCHENDO LLC: Last Day for Submission of Claims Set Jan. 13 -------------------------------------------------------------- Creditors of LLC Khreschendo (code EDRPOU 33669856) have until Jan. 13 to submit written proofs of claim to: Iryna Savchenko, Liquidator Petrovskiy Avenu 50-a 49000 Dniepropetrovsk Region Ukraine Tel: (056) 371-30-74 The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceeding against the company after finding it insolvent on Dec. 7, 2006. The case is docketed under Case No. B 15/237/06. The Debtor be reached at: LLC Khreschendo Mayakovskiy Str. 3-a 49064 Dniepropetrovsk Region Ukraine KOMUNAR OJSC: Creditors Must Submit Claims by January 13 -------------------------------------------------------- Creditors of OJSC Komunar (code EDRPOU 14176151) have until Jan. 13 to submit written proofs of claim to: Oleg Sinishyn, Insolvency Manager Komunar Novoushyck District 31416 Hmelnitskij Region Ukraine Tel: +38(067)920-50-78 The Economic Court of Hmelnitskij Region commenced bankruptcy proceeding against the company after finding it insolvent on Nov. 24, 2006. The case is docketed under Case No. 13/4/188-B. The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor be reached at: OJSC Komunar Komunar Novoushyck District 31416 Hmelnitskij Region Ukraine POLONNOE FACTORY: Creditors Must File Claims by January 13 ---------------------------------------------------------- Creditors of CJSC Polonnoe Factory on Processing of the Raw Materials Secondary Resources (code EDRPOU 01878420) have until Jan. 13 to submit written proofs of claim to: Konstantin Kostenko, Insolvency Manager Shevchenko Str. 49 Hmelnitskij Region The Economic Court of Hmelnitskij Region commenced bankruptcy proceeding against the company after finding it insolvent. The Economic Court of Hmelnitskij Region is located at: Nezalezhnosti Square 1 29000 Hmelnitskij Region Ukraine The Debtor be reached at: CJSC Polonnoe Factory on Processing of the Raw Materials Secondary Resources Privokzalnaya Str. 68 Polonnoe 30500 Hmelnitskij Region Ukraine MLINOV PLANT: Creditors Must File Claims by January 13 ------------------------------------------------------ Creditors of OJSC Mlinov Plant of Foodstuffs have until Jan. 13 to submit written proofs of claim to: Duplika Pavel, Temporary Insolvency Manager p.o.b. 27 Rivne-23 33023 Rivne Region Ukraine Tel: +38(067) 314-42-14 The Economic Court of Rivne Region commenced bankruptcy supervision procedure on the company on Oct. 30, 2006. The case is docketed under Case No. 9/67. The Economic Court of Rivne Region is located at: Yavornitski Str. 59 33001 Rivne Region Ukraine The Debtor be reached at: OJSC Mlinov Plant of Foodstuffs Narodnaya Str. 50 Mlinov 35100 Rivne Region Ukraine TERENOVKA LLC: Creditors Must File Claims by January 13 ------------------------------------------------------- Creditors of LLC Terenovka (code EDRPOU 03732152) have until Jan. 13 to submit written proofs of claim to: The Economic Court of Vinnica Region Hmelnickiy Str. 7 21036 Vinnica Region Ukraine The Economic Court of Vinnica Region commenced bankruptcy proceeding against the company after finding it insolvent on Oct. 19, 2006. The case is docketed under Case No. 5/381-06. The Economic Court of Vinnica Region is located at: Hmelnickiy Str. 7 21036 Vinnica Region Ukraine The Debtor be reached at: LLC Terenovka Terenovka Koziatyn District 22111 Vinnica Region Ukraine TMT 96: Deadline for Filing of Claims Set January 13 ---------------------------------------------------- Creditors of LLC TMT 96 have until Jan. 13 to submit written proofs of claim to: Leonid Talan, Liquidator p.o.b. 158 49000 Dniepropetrovsk Region Ukraine Tel: (0562)92-53-18 The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceeding against the company on Dec. 7, 2006, after finding it insolvent. The case is docketed under Case No. B 24/340-06. The Economic Court of Dniepropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dniepropetrovsk Region Ukraine The Debtor be reached at: LLC TMT 96 Rusanovskaya Str. 125 49000 Dniepropetrovsk Region Ukraine UKRKOMPLEKT LLC: Creditors Must File Claims by January 13 --------------------------------------------------------- Creditors of LLC Enterprise Ukrkomplekt (code EDRPOU 32510511) have until Jan. 13 to submit written proofs of claim to: Leonid Talan, Liquidator P.O. Box 158 49000 Dniepropetrovsk Region Ukraine Tel: (0562)92-53-18 The Economic Court of Dnipropetrovsk Region commenced bankruptcy proceeding against the company on Dec. 7, 2006, after finding it insolvent. The case is docketed under Case No. B 24/339-06. The Economic Court of Dniepropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dniepropetrovsk Region Ukraine The Debtor be reached at: LLC Enterprise Ukrkomplekt ap. 503 b. 11 Panikakha Str. 2 49000 Dniepropetrovsk Region Ukraine UKRKWAR LLC: Creditors Must File Claims by January 13 ----------------------------------------------------- Creditors of LLC Ukrkwar (code EDRPOU 30753206) have until Jan. 13 to submit written proofs of claim to: Eduard Kokorev, Insolvency Manager International Str. 31 Pokotilovka Harkiv District Harkiv Region Ukraine Tel: +38(067)579-48-57 The Economic Court of Harkiv Region commenced bankruptcy proceeding against the company on Nov. 11, 2006, after finding it insolvent. The case is docketed under Case No. B-24/119-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region Ukraine The Debtor be reached at: LLC Ukrkwar International Str. 31 Pokotilovka Harkiv District Harkiv Region Ukraine =========================== U N I T E D K I N G D O M =========================== CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands -------------------------------------------------------------- Chattem Inc. closed its previously announced agreement to acquire the U.S. rights to five leading consumer and over-the- counter brands from Johnson & Johnson for US$410 million in cash. With the acquisition, Chattem's diverse portfolio of high quality brands has now been expanded to include five additional brands: * ACT(R), an anti-cavity mouthwash/mouth rinse; * UNISOM(R), an OTC sleep aid; * CORTIZONE, a hydrocortisone anti-itch product; * KAOPECTATE(R), an anti-diarrhea product; and * BALMEX(R), a diaper rash product. The acquired brands were divested in connection with the recent acquisition by Johnson & Johnson of Pfizer Inc.'s Consumer Healthcare business and certain regulatory requirements in connection with that acquisition. "We are very excited to add these leading brands to the Company's existing portfolio of quality products," said Zan Guerry, Chairman and Chief Executive Officer of Chattem. "With the tremendous cooperation of Johnson & Johnson and Pfizer Inc., we have worked very hard over the past several months to help ensure a smooth transition of ownership and remain very excited about the growth potential of these brands." The acquisition was funded in part with the proceeds from a new US$300 million term loan provided by Bank of America pursuant to a Fifth Amendment to and restatement of its Credit Agreement, with the remaining funds principally being provided through the use of a portion of the proceeds derived from Chattem's previously announced sale of 2% Convertible Senior Notes due 2013. Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT) -- http://www.chattem.com/-- manufactures and markets a variety of branded consumer products, including over-the-counter healthcare products and toiletries and skin care products. The company's products include Icy Hot(R), Gold Bond(R), Selsun Blue(R), Garlique(R), Pamprin(R) and BullFrog(R). * * * As reported in the Troubled Company Reporter on Dec. 5, 2006 Moody's Investors Service confirmed the Ba3 corporate family rating of Chattem Inc. and lowered the senior subordinated rating to B2 from B1. Moody's said the outlook is stable. COLLINS & AIKMAN: Overview & Summary of First Amended Plan ---------------------------------------------------------- Since filing a plan and disclosure statement on Aug. 30, 2006, Collins & Aikman Corp. and its debtor-affiliates have determined that the proposed business plan identified therein no longer offers the best way to maximize value of their assets for the benefits of their creditors. As a result of various factors, the Debtors' management, in consultation with key constituencies in the Chapter 11 cases, including the Prepetition Lenders, certain customers, and the Official Committee of Unsecured Creditors, has determined that the reorganization of the Debtors as a going concern is not feasible. Consequently, the Debtors have embarked on a sale process to maximize the value that can be realized from the Debtors' businesses and assets. The Sale Process contemplates, among other things: (i) a going concern sale of the Carpet & Acoustics business in the Debtors' Soft Trim segment; (ii) going concern sales of certain plants or divisions in the Debtors' Plastics business segment and the Debtors' Convertibles business; (iii) an orderly wind-down of the Debtors' non-salable business operations in cooperation with the customers; (iv) sales of all remaining assets; and (v) preservation of the Debtors' working capital assets and mitigation of administrative claims and other wind-down costs to the extent possible. Sale Process The Debtors believe that the Sale Process will be substantially complete within eight months. Due to the significant number of variables affecting the Sale Process, the Debtors cannot predict the amount, if any, of net recoveries from the disposition of those assets. Based on the extensive M&A process conducted during the Chapter 11 cases, the Debtors expect that the sale of the Carpet & Acoustics assets will yield a significant recovery for their estates. The Debtors intend to sell their Carpet & Acoustics assets on an expedited basis to prevent any loss of value from the uncertainties and pressures surrounding the Sale Process. Coincident with this, the Debtors will segregate the positive cash flow generated by the Carpet & Acoustics operations while the sale is pending and segregate the proceeds of the sale of the operations for the benefit of creditors in the Chapter 11 Cases. In conjunction with the Customer Agreement negotiated with their major customers, and JPMorgan Chase Bank, N.A., as agent to the Prepetition Lenders, the Debtors obtained long-term non- resourcing commitments from the customers for the Carpet & Acoustics business and obtained support for the expedited sale process, which will enhance the value achieved in the sale. In mid-October 2006, the Debtors and their advisors initiated the sale process for the Carpet & Acoustics business as a stand- alone entity. The Debtors and their advisors approached 13 potentially interested parties to submit an indication of interest by Nov. 6, 2006. The unofficial steering committee of the Prepetition Lenders together with the Debtors have selected a final bidder subject to that bidder further revising its indication of interest to incorporate certain additional concessions. The Debtors expect to file a sale motion in January 2007. In November and December 2006, the Debtors and their advisors generated information packages on each of the five operating segments and contacted over 70 potentially interested parties, many of whom had been previously contacted through the M&A process, to solicit interest. To coordinate the sale of the numerous Plastics plants to an expedited timetable, the Debtors, with the support of the Steering Committee, may retain additional investment bankers with specific and considerable knowledge and expertise in the automotive parts supply industry. Post-Consummation Trust On or prior to the effective date of the Amended Plan, the Debtors will consummate the Soft-Trim Sale Transaction. Both prior to and subsequent to the Effective Date, the Debtors and the Post-Consummation Trust, as applicable, will consummate the Remaining Sales Transactions. On the Effective Date, the Debtors, on their own behalf and on behalf of the Holders of Allowed Prepetition Facility Claims, will execute the Post-Consummation Trust Agreement and take all other steps necessary to establish the Post-Consummation Trust. The Debtors will transfer to the Post-Consummation Trust all of their rights, title and interests in all assets of the Debtors that are not divested prior to the Effective Date including, but not limited to, as a result of the Soft-Trim Sales Transaction or any Remaining Sales Transactions that are consummated prior to the Effective Date -- the Residual Assets. The Plan Administrator, as designated by JPMorgan, in consultation with the Prepetition Lenders and the Creditors Committee, will be appointed in accordance with the Post- Consummation Trust Agreement. The Post-Consummation Trust will terminate as soon as practicable, but in no event later than the fifth anniversary of the Effective Date; provided, that, on or prior to the date six months prior to termination, the Bankruptcy Court, upon motion by a party-in-interest, may extend the term of the Trust for a finite period if an extension is necessary to liquidate the Post-Consummation Trust Assets or to complete any distribution required under the Plan. The Plan Administrator, the Post-Consummation Trust, the professionals of the Trust, the Post-Consummation Advisory Trust Board and their representatives will be exculpated and indemnified pursuant to the terms of the Post-Consummation Trust Agreement. Consummation of the Plan is conditioned to, among others, the transfer to the Post-Confirmation Trust of the Residual Assets, which should include no less that US$3,000,000 in cash. Litigation Trust On the Effective Date, the Debtors will transfer to the Litigation Trust all of their rights, title and interests in any Causes of Action arising under Chapter 5 of the Bankruptcy Code that are not released under the Plan or other Bankruptcy Court- approved settlements. The Debtors, on their own behalf and on behalf of the Holders of Allowed Claims entitled to Litigation Trust Recovery Interests pursuant to the Plan, will execute the Litigation Trust Agreement and take all other steps necessary to establish the Litigation Trust. The Litigation Trust Administrator, as designated by JPMorgan, in consultation with the Prepetition Lenders and the Creditors Committee, will be appointed in accordance with the Litigation Trust Agreement. The Litigation Trust will terminate as soon as practicable, but in no event later than the fifth anniversary of the Effective Date; provided, that, on or prior to the date six months prior to termination, the Bankruptcy Court, upon motion by a party-in- interest, may extend the term of the Litigation Trust for a finite period if an extension is necessary to liquidate the Litigation Trust Claims. The Litigation Trust Administrator, the Litigation Trust, the professionals of the Litigation Trust and their representatives will be exculpated and indemnified pursuant to the terms of the Litigation Trust Agreement. Employee, Retiree and Workers' Compensation Benefits On or before the Effective Date, the Pension Benefit Guaranty Corporation or the Debtors, as applicable, will terminate the Debtors' existing employee benefit policies, plans and agreements. The Collins & Aikman Pension Plan, the sole tax-qualified United States-defined benefit pension plan maintained by the Debtors, will either be terminated by the Debtors involuntarily or by the PBGC voluntarily. All nonqualified deferred compensation plans will also be terminated. >From and after the Effective Date, neither the Debtors nor the Trusts will be obligated to pay retiree benefits or any similar health and medical benefits in accordance with the terms of the retiree benefit plans or other agreements governing the payment of the benefits. Conditions to Confirmation Confirmation of the Plan is subject to the satisfaction of various conditions, including: (a) The Bankruptcy Court will have entered the Confirmation Order in form and substance reasonably acceptable to the Debtors and JPMorgan; (b) The Bankruptcy Court will have entered a final order approving the Customer Agreement; (c) The Debtors will have consummated the Soft-Trim Sales Transaction; (d) The Bankruptcy Court will have entered an order or the Debtors will have entered into an agreement with the PBGC, either of which will provide that the Collins & Aikman Pension Plan and other pension obligations for the Debtors' United States employees are terminated; and (e) The Bankruptcy Court will have entered an order providing that there are no claims against the Post-Consummation Trust under Section 1114 of the Bankruptcy Code. Liquidation Analysis The Debtors believe that the Amended Plan maximizes recoveries for Holders of Allowed Claims. John R. Boken, the Debtors' chief restructuring officer, relates that any alternative to Confirmation of the Plan, including conversion of the Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code or attempts by another party-in-interest to file a plan, would result in significant delays, litigation and additional costs and, ultimately, would lower the recoveries for Holders of Allowed Claims. In a liquidation under Chapter 7, there would be no recovery for unsecured creditors classified in Classes 4, 5, 6, and 7, Mr. Boken explains. He says that the proceeds of a liquidation would not surpass amounts owed on account of the Prepetition Facility Claims. Because all proceeds of any liquidation would be subject to the liens and security interests of the Holders of the Prepetition Facility Claims, nothing would be left for unsecured creditors, he asserts. Mr. Boken notes that the recovery under the Amended Plan provided to Classes 4, 5, 6, and 7 is provided only because the acceptance of the Plan by Class 3, Prepetition Facility Claims, permits the recovery pursuant to certain provisions of Chapter 11 of the Bankruptcy Code, which provisions would not be applicable in a Chapter 7 proceeding. The Debtors' liquidation analysis prepared by KZC Services, LLC, the Debtors' restructuring consultants, and Lazard Freres & Co. LLC, the Debtors' financial advisors, will be provided in a subsequent filing no later than January 15, 2007. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) COLLINS & AIKMAN: Seeks Court Nod on Solicitation Protocol ---------------------------------------------------------- Collins and Aikman Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Michigan to enter an order: (a) approving the disclosure statement to their First Amended Joint Plan; (b) fixing, subject to modification as needed, (i) the Voting Record Date, (ii) the Voting Deadline, (iii) deadlines for filing objections, if any, to confirmation of the Plan and replies to any objections, and (iv) the date for the hearing on confirmation of the Plan; and (c) approving the Solicitation Procedures and the form of certain Solicitation Documents to be distributed in connection with solicitation of the Amended Plan. Adequacy of the Disclosure Statement Section 1125 of the Bankruptcy Code requires that a plan proponent provide "adequate information" regarding a debtor's proposed Chapter 11 plan. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, asserts that the Disclosure Statement contains the pertinent information necessary for holders of claims to make an informed decision about whether to vote to accept or reject the Plan, including, among other things, information regarding: (a) the Plan; (b) the history of the Debtors, including certain events leading to the commencement of the Chapter 11 cases; (c) the operation of the Debtors' businesses and significant events during the Chapter 11 cases; (d) the Debtors' prepetition capital structure and indebtedness; (e) the Debtors' corporate structure; (f) claims asserted against the Debtors' estates and the procedures for the resolution of contingent, unliquidated and disputed claims; (g) the classification and treatment of claims and equity interests under the Plan; (h) certain risk factors to consider that may affect the Plan; (i) the restructuring transactions contemplated under the Plan; (j) certain federal income tax law consequences of the Plan; (k) the provisions governing distributions under the Plan; (l) the means for implementation of the Plan; (m) pending litigation involving the Debtors; (n) identification of causes of action belonging to the Debtors; and (o) settlement, release, injunctive and exculpation provisions of the Plan. The Debtors submit that the Disclosure Statement contains more than sufficient information for a hypothetical reasonable investor to make an informed judgment about the Plan and complies with all aspects of Section 1125. Record Date The Debtors ask the Court to exercise its authority under Rules 3017(d) and 3018(a) of the Federal Rules of Bankruptcy Procedure to establish the date of entry of the order approving the Disclosure Statement as the record date for determining: (i) the creditors that are entitled to receive Solicitation Documents pursuant to the Solicitation Procedures; (ii) the creditors entitled to vote to accept or reject the Plan; and (iii) whether Claims have been properly transferred to an assignee pursuant to Rule 3001(e) such that the assignee can vote as the Holder of the Claim. Distribution of Solicitation Notices Pursuant to Local Rule 3018-1, a plan proponent must distribute certain solicitation materials within five business days after entry of an order approving the related disclosure statement. Given the size and complexity of the solicitation, the Debtors ask the Court to waive Local Rule 3018-10 to allow the Debtors to distribute the Solicitation Documents and related notices on a date that is no more than 10 business days following entry of the order approving the Disclosure Statement. Voting Deadline The Debtors ask the Court to exercise its authority under Rule 3017(c) to establish 5:00 p.m. prevailing Pacific Time on the date that is 10 days before the Confirmation Hearing as the deadline by which Holders of Claims must accept or reject the Plan in accordance with the Solicitation Procedures. The Debtors also ask Judge Rhodes to permit them to extend the Voting Deadline, if necessary, without further Court order, to a date no later than five days before the Confirmation Hearing with notice of the extension to all creditors entitled to vote. Objection Deadline Pursuant to Bankruptcy Rule 3020(b), the Debtors ask the Court to establish 5:00 p.m. prevailing Pacific Time on the date that is 10 days before the Confirmation Hearing as the deadline by which objections to confirmation of the Plan, if any, must be filed and served in accordance with the Solicitation Notice. The Debtors request that they be permitted to file a reply, no later than three days before the Confirmation Hearing, to any objections to confirmation of the Plan. Confirmation Hearing The Debtors request that the Court exercise its authority under Bankruptcy Rule 3017(c) to schedule a hearing on confirmation of the Plan, subject to the Court's calendar, as soon as practicable on or after 25 days from the Solicitation Distribution Date, which hearing may be continued from time to time by the Court or the Debtors without further notice other than adjournments announced in open court. Solicitation Procedures To conduct an effective solicitation of votes to accept or reject the Plan, consistent with the requirements of the Bankruptcy Code, the Bankruptcy Rules, the Local Rules and due process, the Debtors seek approval of the Solicitation Procedures. A. Duties of the Solicitation Agent The Debtors request that Kurtzman Carson Consultants LLC be authorized and directed to assist them in: (a) distributing Solicitation Documents, (b) receiving, tabulating and reporting on Ballots and Master Ballots cast to accept or reject the Plan by holders of claims against the Debtors, (c) responding to inquiries from creditors, equity interest holders and other parties in interest relating to the Disclosure Statement, the Plan, the Ballots and the Master Ballots, the Solicitation Procedures and all other Solicitation Documents and matters related thereto, (d) soliciting votes on the Plan, and (e) if necessary, contacting creditors and equity interest holders regarding the Plan. B. Record Holders of the Debtors' Securities Once the Voting Record Date is established, the Debtors and Kurtzman will contact the registrars of the Debtors' public securities and the applicable indenture trustees to compile and generate lists of holders of the Debtors' Securities as of the Voting Record Date. C. Solicitation Documents In accordance with Bankruptcy Rule 3017(d), the Debtors intend to distribute the materials to holders of claims and equity interests for purposes of soliciting their votes and providing adequate notice of the Confirmation Hearing. Specifically, the Debtors intend to serve all of the Solicitation Documents on the Core Group and the 2002 List. With respect to certain listed entities that are not in the Core Group or on the 2002 List, the Debtors will cause to be mailed, only: (a) the Solicitation Notice; (b) appropriate Ballots and Master Ballots and applicable Voting Instructions; (c) a pre-addressed, postage pre-paid return envelope; and (d) a CD-Rom containing the Disclosure Statement, the Solicitation Procedures Order, the Solicitation Procedures and certain other documents that are contained in the Plan Supplement. The Solicitation Notice will additionally instruct the parties that all other Solicitation Documents can be obtained by accessing the Debtors' Web site or by requesting a copy from the Solicitation Agent in writing or by telephone. To avoid duplication and reduce expenses, the Debtors propose to make every reasonable effort to ensure that creditors and equity interest holders who might otherwise receive multiple solicitation packages will receive no more than one set of Solicitation Documents and one Ballot or Master Ballot for each class of claims for which the creditor or equity interest holder is entitled to vote. D. Approval of the Form of Ballots All votes to accept or reject the Plan must be cast by using the appropriate ballot or, in the case of Beneficial Holders of the Debtors' Securities that are registered or otherwise held in the name of a Nominee, the appropriate master ballot. The Debtors will prepare and customize Ballots for all classes of claims that the Debtors anticipate will be entitled to vote to accept or reject the Plan in accordance with Bankruptcy Rule 3018(c). E. Form of Solicitation Notice To satisfy the requirements of Bankruptcy Rules 2002(b) and (d), the Debtors intend to send a solicitation document, which will contain, among other things: (a) instructions to creditors and interested parties on how they may view or obtain copies of the Court-approved Disclosure Statement, the Plan Supplement, the Solicitation Procedures Order, the Solicitation Procedures and all other materials in the Debtors' Solicitation Documents; (b) a disclosure regarding the settlement, third party release, exculpation and injunction language in Article XII of the Plan; (c) the Voting Record Date; (d) the procedures for the temporary allowance of claims; (e) the Voting Deadline; (f) the Plan Objection Deadline; and (g) the Confirmation Hearing date and time. The Debtors also intend to publish the Solicitation Notice to provide sufficient notice of the Plan Objection Deadline, the Confirmation Hearing and other relevant deadlines to entities that may not otherwise receive notice by mail. F. Forms of Other Notices i. Non-Voting Status Notices As reflected in the Amended Plan, certain classes of claims and equity interests under the Plan are not entitled to vote to accept or reject the Plan because the classes: (a) are unimpaired within the meaning of Section 1124 or (b) would receive no distribution under the Plan and, therefore, are deemed to reject the Plan pursuant to Section 1126(g). In addition, certain creditors whose claims are not classified in accordance with Section 1123(a)(1) are not entitled to vote to accept or reject the Plan. The Debtors propose that, unless specifically requested, they not be required to send Solicitation Documents to creditors and equity holders not entitled to vote on the Plan. In lieu of the Solicitation Documents, the Debtors intend to send to these creditors and equity interest holders both a Solicitation Notice and one of these notices: (a) the Notice Of Non-Voting Status With Respect To Unimpaired Classes Deemed To Accept The Plan And Unclassified Classes; or (b) the Notice Of Non-Voting Status With Respect To Impaired Classes Deemed To Reject The Plan, as applicable. ii. Causes of Action and Executory Contracts Notices The parties listed on the Nonexclusive List of Causes of Action and the counterparties to the Debtors' executory contracts and unexpired leases listed on the Plan will receive only the Solicitation Notice and one or both of these additional notices: (a) the Notice To Parties To Retained Causes Of Action and (b) the Notice To Counterparties To Executory Contracts And Unexpired Leases, as applicable. If any of these parties also have claims against or equity interests in the Debtors as of the Voting Record Date, the parties will also receive the Solicitation Documents. Voting and Tabulation Procedures The Debtors ask the Court to approve the voting and tabulation procedures in accordance with Section 1126(c) and Bankruptcy Rule 3018(a). (i) Voting and General Tabulation Procedures The Amended Plan contemplates impaired classes that will be entitled to vote on the Plan. The Debtors ask the Court to enter an order providing that only holders of claims in Classes 3 to 7 are entitled to vote to accept or reject the Plan. (ii) Master Ballot Tabulation Procedures The Plan also contemplates that certain Beneficial Holders of claims derived from, or based on, indentures issued by the Debtors will be entitled to accept or reject the Plan. The Debtors recognize that the records of the indenture trustees for the Debtors' Indentures may reflect the brokers, dealers, commercial banks, trust companies or other nominees through which certain Beneficial Holders hold the relevant Indentures rather than the Beneficial Holders themselves. For relevant materials to be fully and properly disseminated to the Beneficial Holders, the Debtors request that the Court order Nominees to: (a) disseminate the appropriate Solicitation Documents or other appropriate notices to the Beneficial Holders and (b) cooperate fully with the Debtors with respect to the solicitation process. (iii) Temporary Allowance of Claims for Voting Purposes If an objection to a claim is pending on the Voting Record Date, the holder of a claim will receive a copy of the Solicitation Notice and a Notice of Non-Voting Status with Respect to Disputed Claims, in lieu of a Ballot. The Objected-to-Claim Notice will inform the holder that (a) an objection to its claim is pending and (b) the holder cannot vote absent at least one of these events taking place prior to the Voting Deadline: -- an order is entered by the Bankruptcy Court, after notice and a hearing, temporarily allowing the Objected- to-Claim for voting purposes only pursuant to Bankruptcy Rule 3018(a); -- a stipulation or other agreement is executed between the holder of the Objected-to-Claim and the Debtors allowing the holder of the Objected-to-Claim to vote its Objected-to-Claim in an agreed upon amount; or -- the pending objection to the Objected-to-Claim is voluntarily withdrawn by the Debtors or overruled by the Bankruptcy Court. If a Resolution Event occurs before the Voting Deadline, no later than two business days after a Resolution Event, the Solicitation Agent will distribute a Ballot and a preaddressed, postage pre-paid envelope to the relevant holder of the Objected-to-Claim, which must be returned to the Solicitation Agent by no later than the Voting Deadline. If an objection to a claim is filed by the Debtors after the Voting Record Date, the Ballot of the holder of the Objected-to- Claim will not be counted absent a Resolution Event taking place on or before the Confirmation Hearing. Nothing in the Solicitation Procedures will affect the Debtors' right to object to any proof of claim on any other ground or for any other purpose. H. Returned Solicitation Packages and Notices The Debtors seek the Court's approval for a departure from the strict notice rule excuse from: (a) giving notice or providing service of any kind upon any entity to whom the Debtors mailed any Solicitation Documentation, including any notices, and received any of the documents returned by the United States Postal Service marked "undeliverable as addressed," "moved - left no forwarding address," "forwarding order expired" or similar marking, unless the Debtors have been informed in writing by the entity of its new address and (b) re-mailing the documents to those entities whose addresses differ from the addresses in the claims register or the Debtors' records as of the Voting Record Date. If a creditor has changed its mailing address after the Petition Date, the burden will be on the creditor or party-in-interest, not the Debtors, to advise the Solicitation Agent of the new address. * * * The Court will convene a hearing to consider the Debtors' request, including the adequacy of the Disclosure Statement, on Jan. 25 at 11:00 a.m. Objections are due Jan. 18 at 4:00 p.m. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware allowed DURA Automotive Systems, Inc. and its debtor affiliates to employ Kurtzman Carson Consultants, LLC, as their notice, claims and balloting agent. The Debtors have approximately 84,000 potential creditors. The office of the Clerk of the Bankruptcy Court for the District of Delaware is not equipped to efficiently and effectively serve notice on the large number of creditors and parties-in-interest and administer claims during the Debtors' Chapter 11 cases. "The sheer size and magnitude of the Debtors' creditor body makes it impracticable for the Clerk's Office to undertake that task," Keith Marchiando, chief financial officer, says. Kurtzman Carson is expected to: (a) prepare and serve required notices in the Debtors' Chapter 11 cases: * a notice of the commencement of the Reorganization Cases and the initial meeting of creditors under Section 341(a) of the Bankruptcy Code; * a notice of the claims bar date; * notices of objections to claims; * notices of any hearings on a disclosure statement and confirmation of a plan or plans of reorganization; and * other miscellaneous notices as the Debtors or the Court may deem necessary or appropriate for an orderly administration of the Debtors' Chapter 11 cases; (b) within three business days after the service of a particular notice, prepare for filing with the Clerk's Office a certificate or affidavit of service that includes an alphabetical list of persons on whom the notice was served, along with their addresses, and the date and manner of service; (c) maintain copies of all proofs of claim and proofs of interest filed; (d) maintain official claims registers by docketing all proofs of claim and proofs of interest in a claims database that includes this information for each claim or interest asserted: * the name and address of the claimant or interest holder and any agent thereof, if the proof of claim or proof of interest was filed by an agent; * the date the proof of claim or proof of interest was received by Kurtzman and the Court; * the claim number assigned to the proof of claim or proof of interest; and * the asserted amount and classification of the claim; (e) implement necessary security measures to ensure the completeness and integrity of the claims registers; (f) transmit to the Clerk's Office a copy of the claims registers on a weekly basis unless requested more or less frequently by the Clerk's Office; (g) maintain an up-to-date mailing list for all entities that have filed proofs of claim or proofs of interest and make that list available upon request to the Clerk's Office or any party-in-interest; (h) provide access to the public for examination of copies of the proofs of claim or proofs of interest filed without charge during regular business hours; (i) record all transfers of claims pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedure and, if directed by the Court, provide notice of those transfers as required by Bankruptcy Rule 3001(e); (j) comply with applicable federal, state, municipal, and local statutes, ordinances, rules, regulations, orders, and other requirements; (k) provide temporary employees to process claims as necessary; (l) promptly comply with further conditions and requirements as the Clerk's Office or the Court may at any time prescribe; (m) provide other claims processing, noticing, balloting, and related administrative services as may be requested from time to time by the Debtors; and (n) act as balloting agent, which may include some or all of these services: * printing of ballots, including the printing of creditor and shareholder specific ballots; * preparing voting reports by plan class, creditor, or shareholder and amount for review and approval by the client and its counsel; * coordinating the mailing of ballots, disclosure statement, and plan of reorganization to all voting and non-voting parties, and provide affidavit of service; * establishing a toll-free "800" number to receive questions regarding voting on the plan; and * receiving ballots at a post office box, inspecting ballots for conformity to voting procedures, date stamping and numbering ballots consecutively, and tabulating and certifying the results. In addition, at the Debtors' request, Kurtzman will assist the Debtors with, among other things: (1) preparing and mailing customized proofs of claim to the creditors listed on the Debtors' Schedules of Liabilities, (2) preparing, mailing, and tabulating ballots of certain creditors for the purpose of voting to accept or reject the plan or plans of reorganization; and (3) any other additional services requested by the Debtors. Kurtzman will bill: Professional Hourly Rate ------------ ----------- Clerical -- data input US$40 - US$65 Project Specialist -- document management and case administration US$75 - US$115 Consultant -- general consulting; document and data review US$125 - US$210 Senior Consultant -- general consulting; document and data review US$225 - US$250 Technology and Programming Consultant -- KCC Case View maintenance and support US$115 - US$195 The firm will send copies of its monthly invoices to the United States Trustee. With its appointment as notice, claims and balloting agent, Kurtzman: -- is not and will not be employed by any federal or state agency and will not seek any compensation from the Government; -- by accepting employment in the Debtors' cases, waives any right to receive compensation from the Government; -- is not an agent of the Government and is not acting on behalf of the Government; -- will not misrepresent any fact to the public; and -- will not employ any past or present employees of the Debtors for work involving the Chapter 11 cases. Eric Kurtzman, chief executive officer of Kurtzman Carson Consultants LLC, assures the Court that to the best of his knowledge, the officers and employees of his firm: (a) do not have any adverse connection with the Debtors, the Debtors' creditors or any other party-in-interest or their attorneys and accountants, the United States Trustee, or any person employed by the office of the U.S. Trustee; and (b) do not hold or represent an interest adverse to the Debtors' estates. Mr. Kurtzman attests that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). Prior to the Debtors' bankruptcy filing, Kurtzman performed certain professional services for the Debtors. The Debtors provided the firm with a US$100,000 advance payment retainer. Mr. Marchiando states the Debtors do not owe Kurtzman any amount for services performed or expenses incurred prior to the Petition Date. Kurtzman's original Retention Agreement provided for limitations of liability and indemnification. The Court, however, modified the Retention Agreement to remove that provision. A full-text copy of Kurtzman's Fee Structure is available for free at http://ResearchArchives.com/t/s?17d6 Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Wants to Employ Deloitte & Touche as Auditors -------------------------------------------------------------- DURA Automotive Systems, Inc. and its debtor affiliates ask the U.S. Bankruptcy Court for the District of Delaware for authority to employ Deloitte & Touche LLP as independent auditors and accountants, nunc pro tunc to Oct. 30, 2006. Keith Marchiando, vice president and chief financial officer, relates that Deloitte & Touche, an affiliate of Deloitte Tax LLP, is a national professional services firm with hundreds of partners and thousands of professional staff. The firm's experience in auditing and accounting is widely recognized, and it regularly provides services to large and complex business entities. Deloitte & Touche also has extensive experience in delivering auditing and accounting services in Chapter 11 cases. Deloitte & Touche functioned as the Debtors' independent auditors and accountants before the Debtors' filing for chapter 11 protection, Mr. Marchiando adds. The firm has agreed to: (a) audit the consolidated annual financial statements of the Debtors and its subsidiaries for the fiscal years ended Dec. 31, 2006, and onwards; (b) review the Debtors' interim financial information for each quarter for the fiscal year ending Dec. 31, 2006, and onwards; (c) render other audit and accounting services, including assistance in connection with reports requested by the Court, United States Trustee or parties-in-interest; accounting advisory services during the course of reorganization; and other similar requested assistance at an hourly rate basis; and (d) provide additional audit services, should the assumptions underlying the fixed fee estimate cost not materialize. Mr. Marchiando relates that as of the Petition Date, Deloitte & Touche holds a minimal retainer of approximately US$5,000, and provides services upon a fixed fee between US$3,430,000 and US$3,800,000. For the additional services, Deloitte & Touche will bill: Professionals Hourly Rates ------------- ------------ Partner, Principal, Director US$460 - US$650 Senior Manager US$390 - US$490 Manager US$320 - US$390 Senior Accountants US$200 - US$250 Staff Accountants US$135 - US$180 Paraprofessionals US$60 The firm discloses that from time to time, certain Deloitte & Touche Tohmatsu member firms will assist it in connection with its ongoing audit services with approximately US$15,000 in services that will be included in Deloitte & Touche's fee applications. The DTT Member Firms will be retained and paid by the applicable non-filing Debtor affiliates. The Debtors have also sought to retain Ernst & Young LLP as their internal auditors and tax service providers. Deloitte & Touche has advised the Debtors that it will make every effort to avoid duplication of its work and that of Ernst & Young, and Deloitte Tax. Christopher A. Swanson, a partner of Deloitte & Touche, discloses certain relationships with parties in connection with matters unrelated to the Debtors' Chapter 11 cases: -- the firm provides services to certain of the Debtors' largest unsecured creditors, including its lenders GE Capital Corp., Goldman Sachs, and Barclays Bank or their affiliates; and -- certain financial institutions that are prepetition lenders of the Debtors, including AXA, Harris Bank, Comerica, JPMorgan Chase, Wachovia Bank, Citigroup, Bank of America and affiliates of GE are lenders to the firm. Mr. Swanson assures the Court that the firm will not serve those entities in the Debtors' Chapter 11 cases. He attests that his firm is a disinterested person, as the term is defined in Section 101(14) of the Bankruptcy Code. Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). FEDERAL-MOGUL: Court Sets Disclosure Statement Hearing on Feb. 2 ---------------------------------------------------------------- The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware will convene a hearing on February 2, 2007, at 9:00 a.m. (prevailing Eastern time) to consider the adequacy of the Supplemental Disclosure Statement relating to Federal-Mogul Corporation and its debtor affiliates' Fourth Amended Joint Plan of Reorganization. The Supplemental Disclosure Statement provided information concerning modification to the holders of certain claims that are proposed to have their votes re-solicited with respect to the Fourth Amended Plan. For most claims against and interests in the Debtors, however, the Fourth Amended Plan provides for the same treatment as was contained in the Third Amended Plan, and it is proposed not to re-solicit votes with respect to the Fourth Amended Plan from the holders of the claims and interests. The deadline for filing objections to the Supplemental Disclosure Statement is on January 10, 2007, at 4:00 p.m. (prevailing Eastern time). Unless an objection to the Supplemental Disclosure Statement is filed and served by the Objection deadline, parties-in-interest may be barred from objecting and may not be heard at the Supplemental Disclosure Statement Hearing. The Supplemental Disclosure Statement Hearing may be adjourned from time to time without further notice to all parties. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. 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, Young, Jones & Weintraub, 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. (Federal-Mogul Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest ------------------------------------------------------------ Federal-Mogul Corporation and its debtor affiliates withdrew their request to transfer the equity interests of Servicio de Componente Automotrices, S.A. de C.V. and Servicios Administrativos Industriales, S.A. de C.V. to non-debtor subsidiary Cooperatief Federal-Mogul Dutch Investments U.A. The Debtors dropped their transfer plan with respect to the Mexican units in response to an informal objection raised by a party-in-interest. The Debtors did not disclose the identity of the objecting party. Accordingly, the Court only grants the Debtors' request with respect to the transfer of equity interests in Federal-Mogul Holding Deutschland GmbH to F-M Dutch HoldCo. Inter-company Equity Interest Transfers The Debtors secured an approval from the U.S. Bankruptcy Court for the District of Delaware for the inter-company transfers of equity interests in Federal-Mogul Holding Deutschland GmbH and certain Mexican subsidiaries to Cooperatief Federal-Mogul Dutch Investments U.A., a non-Debtor subsidiary. The equity interests are currently held either directly by Debtors Federal-Mogul Corporation, FM International LLC, and Federal-Mogul Ignition Company, or indirectly through their non- debtor affiliates. The proposed Transfers are part of an international restructuring that the Debtors intend to consummate before year- end to maximize the tax-efficiency of their corporate structure going forward. The restructuring will ultimately result in many of the Debtors' foreign subsidiaries being owned through the F-M Dutch HoldCo structure. F-M Dutch HoldCo, which was formed in connection with the Court-authorized French and Italian Recap, is a Dutch holding company with no current material liabilities and whose only significant assets are its indirect equity holdings in Federal-Mogul Holding Italy S.r.L. The Transfers will result in an estimated annual tax savings aggregating US$28,000,000, and will preserve a larger portion of post-tax funds that are repatriated through the F-M Dutch HoldCo structure. German Transfers F-M Germany is currently a wholly owned subsidiary of Federal- Mogul Corp., and is the parent of a number or subsidiaries that constitute about 60% of the Debtors' operations in Europe. The Debtors proposed to transfer ownership of F-M Germany from Federal-Mogul Corp., resulting in F-M Dutch HoldCo directly holding a 90% equity interest in F-M Germany with the remaining 10% held indirectly through a newly formed German partnership. The German Transfer allows the Debtors to effectuate their international restructuring and move funds up the corporate ownership chain to their United States parent companies. The German Transfer must be completed by the end of 2006 to allow the Debtors to take advantage of a number of beneficial tax attributes that are anticipated to result in an aggregate tax savings of approximately US$26,000,000. Mexican Transfers The Debtors' Mexican operations consist of 10 directly and indirectly held subsidiaries. None of the Mexican subsidiaries are Debtors in the Chapter 11 proceedings. Servicio de Componente Automotrices, S.A. de C.V., is the principal holding company for the Mexican businesses. The current shareholders of SEDECA are: (1) Debtor F-M International with a current interest of 25.52% interest in SEDECA; (2) Debtor F-M Ignition with a 70.74% interest in SEDECA; and (3) non-Debtor Federal-Mogul Canada Ltd., which is wholly owned by Federal-Mogul Corp., with a 3.74% interest in SEDECA. SEDECA directly or indirectly holds 100% of all of the SEDECA Subsidiaries except: * Servicios Administrativos Industriales, S.A. de C.V.; * Camshafts Castings de Mexico S. de R.L.; and * Federal-Mogul S.A. de C.V. The Debtors previously proposed to transfer the equity interests of SEDECA and SAISA to F-M Dutch HoldCo, which will permit the Debtors to avail themselves of certain tax advantages under Dutch and Mexican law. As part of the Mexican Transfer, the shareholders of the Mexican Subsidiaries will indirectly contribute their ownership interests in the Mexican Subsidiaries to F-M Dutch HoldCo in exchange for equity interests in F-M Dutch HoldCo. The Mexican Transfer is part of the Debtors' overall tax planning efforts to reduce the tax liability related to their Mexican operations. The Debtors estimated that the Mexican Transfers will result in an ownership structure that will confer a net US$2,000,000 annual savings in taxes. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. 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, Young, Jones & Weintraub, 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. (Federal-Mogul Bankruptcy News, Issue No. 122; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) PSIVIDA LIMITED: Lender Frees Firm From Loan Covenants ------------------------------------------------------ pSivida Limited entered into an agreement with its principal institutional lender whereby the lender has agreed to a general forbearance with respect to any defaults through to and including the earlier of the closing of the Nordic Biotech Advisors (Nordic) transaction or March 31, 2007, subject to the satisfaction of closing conditions. The lender agreed: -- to allow the Company to transfer or grant security interests in the Company's MedidurTM and Mifepristone assets which would be necessary to complete specified financing transactions with Nordic; -- to forego the interest payment due on Jan. 2, 2007, in favor of adding approximately US$309,000 (AU$391,000) to the principal amount of the loan (representing the value of the American Depository Receipts (ADSs) with which the Company would have issued to satisfy the payment had it met certain conditions allowing it to pay with ADSs); -- to defer the Company's scheduled payment of US$800,000 (AU$1 million) for prior registration delay penalties until the earlier of the closing of the Nordic transaction or March 31, 2007; -- to forgive US$770,000 (AU$973,000) of additional registration delay penalties accruing through the earlier of the closing of the Nordic transaction or March 31, 2007; -- to amend the Company's loan covenants to release it from the obligation to satisfy a minimum cash balance test of 30% of the outstanding principal until March 31, 2007; and -- that the Company would have until ten days after the earlier of the closing of the Nordic transaction or March 31, 2007 to file a registration statement with respect to securities issuable on exercise of the lender's warrants. In return for the foregoing, the Company has issued to the lender warrants to purchase 1.5 million ADSs over five years with an exercise price of US$2.00 per ADS and has agreed, upon receipt of required approvals, including shareholder approval, and satisfaction of other standard conditions, to issue additional warrants to purchase 4.0 million ADSs over five years with an exercise of US$2.00, subject to adjustment based on the final terms of the Company's transaction with Nordic. The Company expects to close definitive documents with Nordic Biotech Advisors for a US$4 million (AU$5.1 million) corporate investment in the Company and a US$22 million (AU$27.8 million) investment over time in a 'Special Purpose Vehicle' that is expected to fully fund the Company's portion of costs to develop MedidurTM for the treatment of the chronic eye disease diabetic macular edema. About pSivida Limited Headquartered in Perth, Australia, pSivida Limited (NASDAQ:PSDV) (ASX:PSD) (Xetra:PSI) -- http://www.psivida.com/-- is an Australian is committed to biomedical applications of nano- technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's shares are listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. pSivida also operates subsidiaries in the United Kingdom, Singapore, Australia, and the United States. * * * Going Concern Doubt The company noted that its financial statements have been prepared assuming that it will continue as a going concern. After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default the note holder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. REFCO INC: Seeks to Reject 1997 Deal with SunGard Financial ----------------------------------------------------------- Refco Inc. and its debtor-affiliates seek U.S. Bankruptcy Court for the Southern District of New York's authority to reject a May 1997 Remote Processing Agreement between SunGard Financial Systems Inc., and Refco Group Ltd., LLC, effective as of March 31, 2007. J. Gregory St. Clair, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, relates that the software provided pursuant to the SunGard Contract was utilized by Refco Capital Markets, Ltd., and Refco Securities, LLC, in trading operations of the Debtors' businesses. The software was also generally used for booking trades against the Debtors' stock records and supplying the general ledger with accounting information regarding sale proceeds and other receipts, like redemptions, interest and dividend payments. Monthly charges under the SunGard Contract total approximately US$300,000. The SunGard Contract currently terminates on Oct. 31, 2008. Mr. St. Clair tells Judge Drain that since the Debtors are in the final stages of winding up their operations, the services provided pursuant to the SunGard Contract will no longer be needed after the Rejection Date. Mr. St. Clair continues that subsequent to confirmation of the Debtors' Chapter 11 Plan, only RCM will utilize the services to complete any processing and reporting of trades necessary to liquidate its securities portfolio and wind up its affairs. After RCM's securities portfolio is substantially liquidated, the primary use for services provided under the SunGard Contract will relate to the storage of historical records and access to archived customer account information, he adds. By the Rejection Date, the Debtors expect that they will hold few open securities positions. As the remaining securities are liquidated, the Debtors will track the liquidation of those positions using a spreadsheet and will manually input accounting information into the general ledger. The Debtors believe that they will be able to access archived data through a replicated database in a different software system, which they are currently utilizing for their schedules and claims analysis. To the extent that SunGard seeks to assert a rejection damage claim resulting from the rejection of the SunGard Contract, the breach giving rise to those damages will be deemed to have occurred immediately before December 1, 2006. The Debtors ask the Court to establish the deadline for filing the Rejection Damage Claim as 30 days after the Motion is granted. About Refco Inc. Headquartered in New York City, Refco Inc. (OTC: RFXCQ) -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 51; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital Markets, Ltd., delivered a Chapter 11 plan of reorganization and accompanying Disclosure Statement to the Court. On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure Statement and on Oct. 13, filed a Modified Amended Disclosure Statement. On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure Statement and the Court Clerk entered an order on Oct. 20, 2006. On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the Court. That Plan became effective on Dec. 26, 2007. REFCO INC: Wants Court Nod to Assume Iron Mountain Contracts ------------------------------------------------------------ Refco Inc. and its debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's permission to assume two off-site data storage contracts Refco Group Ltd., LLC, entered into with Iron Mountain. The Debtors will assume the contracts effective as of the effective date of their proposed Modified Joint Chapter 11 Plan. The Debtors need the contracts to complete the liquidation of their businesses. The contracts relate to storage facilities, where the Debtors are maintaining hard copies of documents, as well as electronic files. The Debtors are obligated to take appropriate measures to maintain and preserve books and records and any other documentation required to wind-down their businesses to among other things, complete tax returns, maintain customer information in compliance with federal and state regulations, and retain records to assist in litigation. To minimize storage related expenses, the Debtors intend to continue to consolidate with Refco, LLC, their various storage facilities that maintain the books and records. The contracts were executed in November 2001 and March 2003. The November 2001 contract provides for one-year automatic renewals starting Dec. 1, 2003, unless written notice of non- renewal is given. The Debtors propose to pay US$1,217 to cure outstanding obligations under the November 2001 contract. The March 2003 contract provides one-year renewal term with automatic renewals for additional one-year terms, unless written notice of non-renewal is given. The Debtors propose to pay US$1,025 to cure outstanding obligations under the contract. About Refco Inc. Headquartered in New York City, Refco Inc. (OTC: RFXCQ) -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 53; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital Markets, Ltd., delivered a Chapter 11 plan of reorganization and accompanying Disclosure Statement to the Court. On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure Statement and on Oct. 13, filed a Modified Amended Disclosure Statement. On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure Statement and the Court Clerk entered an order on Oct. 20, 2006. On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the Court. That Plan became effective on Dec. 26, 2007. REFCO INC: Court Okays Sale of Refco Global Shares to Bank Frick ---------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan approved the Restated Share Sale and Purchase Agreement, dated Nov, 30, 2006, between Refco Global Finance Ltd., and Bank Frick & Co. Aktiengesellschaft. Pursuant to the Restated Purchase Agreement, Refco Global will sell 80 registered shares to Bank Frick for US$1,350,000. The Shares, with restricted transferability and each with a nominal value of CHF10,000, constitute 4% of outstanding share capital of Bank Frick. Refco Global will assign and transfer to Bank Frick all of the seller's rights, title, and interest in and to the Shares, free and clear of all liens, claims, and encumbrances as permitted by Section 363 of the Bankruptcy Code. About Refco Inc. Headquartered in New York City, Refco Inc. (OTC: RFXCQ) -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 51; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital Markets, Ltd., delivered a Chapter 11 plan of reorganization and accompanying Disclosure Statement to the Court. On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure Statement and on Oct. 13, filed a Modified Amended Disclosure Statement. On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure Statement and the Court Clerk entered an order on Oct. 20, 2006. On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the Court. That Plan became effective on Dec. 26, 2007. SEA CONTAINERS: HSH Nordbank Doesn't Object to Aegean Stake Sale ---------------------------------------------------------------- HSH Nordbank AG, an unsecured creditor in Sea Containers, Ltd. and its debtor-affiliates' chapter 11 case, does not object to the sale of the Debtors' 50% interest in their Aegean Speed Lines NE joint venture to Speed Shipping Company Ltd., pursuant to a sale agreement dated November 2006 between the Debtors, Speed Shipping, ASL, Niver Lines Shipping Co. SA, Hoverspeed GB Ltd., and Sea Containers Cyprus Holdings Ltd. HSH Nordbank wants to clarify that the mortgage on ASL's vessel, Speedrunner 1, secures the obligations of Hoverspeed GB Limited. Hoverspeed's obligations in turn guarantee the principal obligations that Hoverspeed Italia Srl owes to HSH Nordbank, which principal obligations are guaranteed by Sea Containers Ltd. As reported in the TCR-Europe on Dec. 4, 2006, the Debtors and Speed Shipping, who each owns 50% interest in ASL, had entered into a shareholders' agreement in February 2005, under which the parties each subscribed for 2,500 shares in ASL. ASL has no other operations aside from operating Speedrunner 1, a passenger ferry. HGB, an indirect, wholly owned subsidiary of the Debtors, owns Speedrunner 1 and charters it to SC Cyprus. SC Cyprus, in turn, sub-charters the ferry to ASL. Under the Shareholders' Agreement, the Debtors are obliged to make subordinated loans to ASL in amounts necessary to meet its portion of ASL's liability to third party creditors. HGB had agreed to sell the Vessel to Speed Shipping for US$2 million. In conjunction with the sale, the Debtors also agreed to sell their 50% stake in the ASL joint venture to Speed Shipping, and the release of its obligations under the Shareholders' Agreement. About Sea Containers 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). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. SEA CONTAINERS: Wants to Pay Employees Dismissed on Bankruptcy -------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask authority from the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to comply with their statutory obligations and pay the notice and redundancy payments required under the Employment Rights Act 1996 (England) to employees they dismissed after the Debtors filed for bankruptcy, in connection with their business rationalization efforts. As part of their restructuring efforts, the Debtors are evaluating their business operations and staffing needs on an ongoing basis. The Debtors believe it will be necessary to reduce the overall size of their workforce through layoffs of employees whose services are no longer required due to the rationalization of their business operations, Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware relates. Mr. Brady tells the Court that the Debtors, as required by the ERA and in the ordinary course of business, have entered into an employment contract with each of their Employees stating the length of notice, which the Debtors are obliged to give the Employee to terminate his/her contract of employment. The Debtors estimate that the potential aggregate cost of Statutory Redundancy Payments that would be owed to their Employees who may be dismissed over the next nine months is US$647,000. Claims by Dismissed Employees arising from the Debtors' failure to abide by the ERA's statutory requirements would be entitled to administrative expense priority pursuant to Section 503(b)(1)(A) of the Bankruptcy Code, Mr. Brady says. Mr. Brady tells Judge Carey that any failure by the Debtors to comply with their statutory obligations under the ERA and to make the required Statutory Payments to Dismissed Employees will: -- result in numerous administrative expense claims being asserted against the Debtors and their estates; -- subject the Debtors to legal action in England, which could, among other things, cause estate resources to be depleted by defending the actions, and could jeopardize the Debtors' ability to restructure their operations; and -- cause an adverse effect on the morale and loyalty of the Debtors' remaining Employees, at a time when the support is critical. About Sea Containers 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). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SOLUTIA INC: Hires Two Firms as Ordinary Course Professionals ------------------------------------------------------------- Solutia Inc. and its debtor-affiliates have employed certain professionals who will provide services that are unrelated to the bankruptcy aspects of their Chapter 11 cases. The Debtors and two firms have reached an agreement to continue the engagement pursuant to Section 327 of the Bankruptcy Code. A. Strasburger & Price Elizabeth Bonvillain Kamin, a partner at Strasburger & Price LLP, relates that Solutia Inc., has employed the firm since July 2006, to perform certain services relating to the defense of a contract claim for damages and pursuit of a counterclaim for breach of contract. The firm will be paid on an hourly basis by its professionals' customary rates and will be reimbursed for actual and necessary expenses incurred in connection with its representation, or services for, the Debtors. The hourly rates are: Partner US$385 Associate 240 Legal Assistant 135 Ms. Kamin tells the Court that Strasburger & Price revises its regular hourly rates on Nov. 1 of each year. Services amounting to US$7,810 have been rendered, and expenses totaling US$553 have been incurred that have not yet been billed or for which no payment has yet been received. The firm, its members, associates and other professionals may have in the past represented, currently represent, and may in the future represent entities that are parties-in-interest in matters totally unrelated to the Debtors' cases. Strasburger & Price will not represent any entity in connection with the Debtors' Chapter 11 cases and does not have any relationship with entities that would be adverse to the Debtors or their estates, Ms. Kamin assures the Court. B. Clement & Wheatley Glenn W. Pulley, a partner at Clement & Wheatley, tells the Court that the firm has been employed by Solutia since Aug. 14, 2006, to provide services relating to miscellaneous litigation arising in the ordinary course of the Debtors' business. The professionals will be paid according to their customary hourly rates: Glenn W. Pulley US$185 Darren W. Bentley 135 Mr. Pulley informs the Court that the firm revises its professionals' regular hourly rates by not more than 5% on Feb. 1 of each year. Clement & Wheatley will be reimbursed for actual and necessary expenses incurred during the engagement. The firm has rendered services and incurred expenses that have not yet been billed or for which no payment has yet been received. The value of the services and amount of expenses are US$6,692 and US$223. Mr. Pulley attests that Clement & Wheatley does not and will not represent any entities that are parties-in-interest to the Debtors' Chapter 11 cases, nor does it have any relationship with any entity that would be adverse to the Debtors or their estates. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. 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http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers - the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Contact: http://www.beardaudioconferences.com/ 240-629-3300 BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Contact: http://www.beardaudioconferences.com/ 240-629-3300 ********* 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/books/to 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. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors. Copyright 2007. 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 * * *