/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070924.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, September 24, 2007, Vol. 8, No. 189 Headlines A U S T R I A FISCHER & MANDL: Claims Registration Period Ends Sept. 28 HEINZ KELLNER: Claims Registration Period Ends Oct. 16 MBD LLC: Claims Registration Period Ends Oct. 15 RGR LLC: Claims Registration Period Ends Oct. 16 SCHMIEDINGER WOHNBAU: Claims Registration Period Ends Nov. 2 SCO GROUP: Organizational Meeting Scheduled for September 28 SCO GROUP: Bankruptcy Filing Prompts Nasdaq to Delist Securities SCO GROUP: Posts US$2.4 Mln Net Loss in Quarter Ended July 31 B E L G I U M INTERSTATE HOTELS: Partners With Investcorp to Buy Hotels LEVI STRAUSS: Tender Offer for Senior Notes Expires on Oct. 17 STERIGENICS INT'L: Moody's Cuts Corporate Family Rating to B3 F R A N C E PERNOD RICARD: Earns EUR831 Million in FY Ended June 2007 URS CORP: S&P Rates Proposed US$2.1 Billion Facilities at BB+ XEROX CORP: Invests US$60 Million in Next Generation Toner Plant G E R M A N Y ALERIS INT'L: S&P Rates US$105 Million Senior Notes at B- AUTOHAUS DIERKS: Claims Registration Period Ends Sept. 28 DR. WULFERT WOHNBAU: Claims Registration Period Ends Oct. 11 E.D.H. TRADING: Claims Registration Period Ends Sept. 28 GEORGI BETEILIGUNGS: Claims Registration Period Ends Oct. 9 GESUNDEN SCHLAF: Claims Registration Ends October 15 GLASBAU SCHULZ: Claims Registration Ends Oct. 15 HARTMANN & ERICHSEN: Claims Registration Ends October 11 HAUS- UND RAUMGESTALTUNG: Claims Registration Ends October 11 KABEL DEUTSCHLAND: Buys Orion's Networks for EUR585 Million KABEL DEUTSCHLAND: Network Buy Cues S&P’s Watch on B+ Rating MAKS OBJEKTEINRICHTUNGEN: Claims Registration Ends Oct. 10 MOLANA BUS: Claims Registration Ends Oct. 15 OEZKAN PAPIERVERARBEITUNG: Claims Registration Ends Oct. 15 OSTWALD GMBH: Claims Registration Period Ends Oct. 9 PROPLAN GMBH: Claims Registration Period Ends Sept. 26 SAINBACH VERWALTUNGSGESELLSCHAFT: Claims Filing Ends Oct. 15 TRANSTEC SPEDITIONS: Claims Registration Ends October 11 TUI AG: Drops Joint Venture Plans with Carnival Corp I T A L Y ALITALIA SPA: Selling Heathrow Slots to Raise Cash ALITALIA SPA: Ministers Air Support for Malpensa Downscale Plan IMAX CORP: Signs Ten-Theatre Deal with China's Wanda Cinema PARMALAT SPA: Parma Judge Raises Concerns on Case Against Banks K A Z A K H S T A N AVIATECH SERVICE: Proof of Claim Deadline Slated for Oct. 23 CHERNY DRAKON LLP: Creditors Must File Claims Oct. 23 DIAPAZON LLP: Claims Filing Period Ends Oct. 24 H.L.T. LLP: Creditors' Claims Due on Oct. 23 HALYK SAVINGS: Closes Syndication of US$300 Mln Term Loan HENKEL-ERA OJSC: Claims Registration Ends Oct. 26 I-COM-LIMITED LLP: Proof of Claim Deadline Slated for Oct. 24 ILNUR LLP: Creditors Must File Claims Oct. 26 MABEK LLP: Claims Filing Period Ends Oct. 26 UNIVERSAL LLP: Creditors' Claims Due on Oct. 24 K Y R G Y Z S T A N MITRA TRADE: Proof of Claim Deadline Slated for October 26 N E T H E R L A N D S BAUSCH & LOMB: Commences Tender Offers for Debt Securities FIRST DATA: Prices Tender Offers for US$2.2 Bln Debt Securities HOLLAND HOMES MBS 2003-1: Fitch Affirms Class D Notes at BB YUKOS FINANCE: Yukos Oil Completes Unit Sale to Promneftstroy R U S S I A AGRICULTURAL MACHINERY: Asset Sale Slated for October 5 ALLIANCE COSMETIC: Court Names B. Mazenko as Insolvency Manager BUILDER OF URAL-11: Creditors Must File Claims by Oct. 1 CEDAR LLC: Kemerovo Bankruptcy Hearing Slated for Jan. 17, 2008 DMITROVSKIY CRYSTAL: Creditors Must File Claims by Oct. 1 EAR LLC: Creditors Must File Claims by Nov. 1 GRAN’-SERVICE CJSC: Creditors Must File Claims by Oct. 1 LENIN CJSC: Creditors Must File Claims by Nov. 1 MAGNITOGORSK IRON: To Construct Manufacturing Site in Ohio MDM BANK: Fitch Hikes IDR to BB on Prudent Liquidity Management MONEY LLC: Court Starts Bankruptcy Supervision Procedure ORENDAR OJSC: Creditors Must File Claims by Nov. 1 RASSKAZOVSKIY DIARY: Creditors Must File Claims by Oct. 1 SECONDARY METAL: Bankruptcy Hearing Slated for Feb. 5, 2008 SERVICE-CENTRE CJSC: Creditors Must File Claims by Oct. 1 SISTEMA JSFC: Shareholders Approve Proposed Share Split TASHLINSKIY MEAT-PACKING: Creditors Must File Claims by Nov. 1 TRUBCHEVSK-AGRO-PROM-SERVICE: Names V. Bakhturin to Manage Asset YEKATERINBURG WINERY: Krasny Buys Assets for RUR180 Million YUKOS OIL: Completes Yukos Finance Sale to OOO Promneftstroy S P A I N TELECONNECT INC: June 30 Balance Sheet Upside-Down by US$6.1 Mln S W E D E N ARVINMERITOR INC: Extends & Reduces Credit Facility FORD MOTOR: Top U.S. Marketing Exec Francisco Codina Retires S W I T Z E R L A N D ALTECH-PLAST JSC: Creditors' Liquidation Claims Due September 28 ARVO INNENAUSBAU: Obwalden Court Closes Bankruptcy Proceedings AUTOMATEN ALPNACH: Obwalden Court Closes Bankruptcy Proceedings BAP INFORMATIK: Creditors' Liquidation Claims Due October 1 CREADATA LLC: Creditors' Liquidation Claims Due October 3 GRUPO GOURMET: Zug Court Starts Bankruptcy Proceedings HOBBY-CENTER W. GSELL: Creditors' Liquidation Claims Due Oct. 1 ISM IMMOBILIEN: Aargau Court Starts Bankruptcy Proceedings NOVE MARZO: Creditors' Liquidation Claims Due October 1 ZURIMATT JSC: Creditors' Liquidation Claims Due September 30 U K R A I N E ARMA-INGINEERING LLC: Creditors Must File Claims by September 27 AGRO-LADA LLC: Creditors Must File Claims by September 27 BONI LLC: Proofs of Claim Deadline Set September 27 MALPENZA LLC: Creditors Must File Claims by September 27 MEM LLC: Creditors Must File Claims by September 27 NIKOLAEV AGRICULTURAL: Proofs of Claim Deadline Set September 27 TAIR LLC: Creditors Must File Claims by September 27 TRADE SERVICE: Proofs of Claim Deadline Set September 27 YUKO MOTORS: Creditors Must File Claims by September 27 TALISMAN OJSC: Creditors Must File Claims by September 27 * Chadbourne & Parke's Kyiv Office Promotes Two Associates U N I T E D K I N G D O M BRITISH AIRWAYS: Increases US Flights in Summer 2008 BUSINESSF1 MAGAZINE: Royal Court Upholds Winding Up Petition CAR REALISATIONS: Creditors' Meeting Slated for Oct. 16 EMI GROUP: Majority of Noteholders Tender 8.625% Senior Notes EMI GROUP: S&P Withdraws All Debt Ratings on Repayment GENERAL MOTORS: Reaches General 'VEBA Trust' Framework with UAW INT'L RECTIFIER: Gets NYSE Notice Due to 10-K Filing Delay MISYS PLC: Partners with SAP to Provide Global Banking Software MSSAL LTD: Brings In Liquidators from Tenon Recovery NASDAQ STOCK: Moody's May Lift Ba3 Ratings After Review NEWFIELD EXPLORATION: Sells UK Interests to Centrica for US$486M NORTEL NETWORKS: Names Joel Hackney to Lead Enterprise Solutions SCOTTISH RE: Paying US$0.4531 Per Share Dividend on Oct. 15 SKYEPHARMA PLC: June 30 Balance Sheet Upside-Down by GBP55.1 Mln * BOND PRICING: For the Week Sept. 17 to Sept. 21, 2007 ********* ============= A U S T R I A ============= FISCHER & MANDL: Claims Registration Period Ends Sept. 28 --------------------------------------------------------- Creditors owed money by LLC Fischer & Mandl (FN 159470s) have until Sept. 28 to file written proofs of claim to court- appointed estate administrator Thomas Klein at: Mag. Thomas Klein c/o Dr. Dieter Neger Sackstrasse 21 8010 Graz Austria Tel: 0316/850400 Fax: 0316/850400-9 Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:50 p.m. on Oct. 11 for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 230 Hall L Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Aug. 28 (Bankr. Case No. 25 S 85/07y). HEINZ KELLNER: Claims Registration Period Ends Oct. 16 ------------------------------------------------------ Creditors owed money by LLC Heinz Kellner (FN 112006s) have until Oct. 16 to file written proofs of claim to court-appointed estate administrator Erich Allinger at: Mag. Erich Allinger Hauptplatz 11 2700 Wiener Neustadt Austria Tel: 02622/23228 Fax: 02622/23228-26 Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Oct. 30 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Ebenfurth, Austria, the Debtor declared bankruptcy on Aug. 21 (Bankr. Case No. 11 S 81/07h). MBD LLC: Claims Registration Period Ends Oct. 15 ------------------------------------------------ Creditors owed money by LLC MBD (FN 162686w) have until Oct. 15 to file written proofs of claim to court-appointed estate administrator Helmut Platzgummer at: Dr. Helmut Platzgummer c/o Mag. Caroline Klus Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Fax: 533 19 39-39 Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Oct. 29 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1706 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 21 (Bankr. Case No. 3 S 106/07v). Caroline Klus represents Dr. Platzgummer in the bankruptcy proceedings. RGR LLC: Claims Registration Period Ends Oct. 16 ------------------------------------------------ Creditors owed money by LLC RGR (FN 248082b) have until Oct. 16 to file written proofs of claim to court-appointed estate administrator Leopold Riess at: Dr. Leopold Riess c/o Dr. Eva Riess Zeltgasse 3/12 1080 Vienna Austria Tel: 402 57 01 Fax: 402 57 01 21 Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:45 p.m. on Oct. 30 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 20 (Bankr. Case No. 6 S 100/07h). Eva Riess represents Leopold Riess in the bankruptcy proceedings. SCHMIEDINGER WOHNBAU: Claims Registration Period Ends Nov. 2 ------------------------------------------------------------ Creditors owed money by LLC Schmiedinger Wohnbau (FN 184080g) have until Nov. 2 to file written proofs of claim to court- appointed estate administrator Erik Kroker at: Dr. Erik Kroker Schmerlingstrasse 2 6020 Innsbruck Austria Tel: 0512/58 30 74 Fax: 0512/58307418 Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Nov. 16 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Room 214 Second Floor Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Rinn, Austria, the Debtor declared bankruptcy on Aug. 20 (Bankr. Case No. 7 S 47/07g). SCO GROUP: Organizational Meeting Scheduled for September 28 ------------------------------------------------------------ The U.S. Trustee for Region 3 will hold an organizational meeting to appoint an official committee of unsecured creditors in The SCO Group, Inc. and its debtor-affiliates' chapter 11 cases at 10:00 a.m., on Sept. 28, 2007, at Room 2112, J. Caleb Boggs Federal Building, 844 North King Street, in Wilmington, Delaware. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. However, a representative of the Debtor will attend and provide background information regarding the cases. Creditors interested in serving on a Committee should complete and return to the U.S. Trustee a statement indicating their willingness to serve on an official committee. Official creditors' committees, constituted under Section 1102 of the Bankruptcy Code, ordinarily consist of the seven largest creditors who are willing to serve on a committee. In some Chapter 11 cases, the U.S. Trustee is persuaded to appoint multiple creditors' committees. Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes that the reorganization of the Debtors is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About The SCO Group Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate filed for separate Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Case No. 07-11337 thru 07-11338). James E. O'Neill, Esq. and Laura Davis Jones, Esq. of Pachulski, Stang, Ziehl & Jones LLP representn the Debtors in their restructuring efforts. The Debtor's total assets was US$14,800,000 and its total debts was US$7,500,000 as of Sept. 10, 2007. SCO GROUP: Bankruptcy Filing Prompts Nasdaq to Delist Securities ---------------------------------------------------------------- The SCO Group Inc. has received a notice from The Nasdaq Stock Market indicating that the company's securities will be delisted from Nasdaq on Sept. 27, 2007, pending an appeal. The Nasdaq Staff Determination Letter received on Sept. 18, 2007, indicated that as a result of the company's having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Staff has determined, using its discretionary authority under Nasdaq Marketplace Rules 4300 and IM-4300, that the company's securities will be delisted from The Nasdaq Stock Market and that trading in the company's common stock will be suspended unless the company requests a hearing to review the determination. The suspension of the company's common stock is set to occur at the opening of business on Sept. 27, 2007. However, an appeal will stay the suspension of the trading of the company's securities pending a panel decision by a Nasdaq Listing Qualifications Panel. The company intends to request a hearing to review the determination. There can be no assurance that the panel will grant the company's request for continued listing. About The SCO Group Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate filed for separate Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Case No. 07-11337 thru 07-11338). James E. O'Neill, Esq. and Laura Davis Jones, Esq. of Pachulski, Stang, Ziehl & Jones LLP representn the Debtors in their restructuring efforts. The Debtor's total assets was US$14,800,000 and its total debts was US$7,500,000 as of Sept. 10, 2007. SCO GROUP: Posts US$2.4 Mln Net Loss in Quarter Ended July 31 ------------------------------------------------------------- The SCO Group Inc. incurred a net loss of US$2.4 million in the third quarter ended July 31, 2007, compared to a net loss of US$3.6 million in the same period ended July 31, 2006. Revenue for the third quarter of fiscal year 2007 was US$3.7 million, down from US$6.2 million for the comparable quarter of the prior year. The decrease in revenue was primarily attributable to continued to a continued decline in the company's UNIX business as a result of continued competitive pressure from competing operating systems, particularly Linux, and from continuing negative publicity from the SCO Litigation which has adversely impacted and delayed customers' buying decisions. Legal and related costs incurred in connection with the company's litigation were US$1.2 million for the third quarter of fiscal year 2007, which was down from costs of US$2.3 million for the comparable quarter of the prior year. The decrease in legal and related costs was primarily attributable to decreased legal services provided by technical, industry, damage and other experts in connection with the SCO Litigation. Because of the unique and unpredictable nature of the SCO Litigation, the occurrence and timing of certain expenses such as damage, industry and technical review and other consultants is difficult to predict, and it will be difficult to predict for the upcoming quarters. Cash and cash equivalents totaled US$7,393,000 as of July 31, 2007. During this same time period, investment in available-for- sale marketable securities decreased from US$2,249,000 as of October 31, 2006 to US$0 as of July 31, 2007. As of July 31, 2007, the company also had US$3,020,000 of restricted cash, of which US$2,589,000 is set aside to cover expert and other costs related to the SCO Litigation and US$431,000 is set aside for royalties payable to Novell. At July 31, 2007, the company's consolidated balance sheet showed US$15.8 million in total assets, US$10.3 million in total liabilities, and US$5.5 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended July 31, 2007, are available for free at http://researcharchives.com/t/s?2395 Novell Ruling and Bankruptcy Filing On Aug. 10, 2007, the federal judge overseeing the company's lawsuit with Novell Inc. ruled in favor of Novell on several of the summary judgment motions that were before the United States District Court in Utah. The effect of these rulings was to significantly reduce or to eliminate certain of the company's claims in both the Novell and IBM cases, and possibly others. The court ruled that Novell was the owner of the UNIX and UnixWare copyrights that existed at the time of the 1995 Asset Purchase Agreement and that Novell retained broad rights to waive the company's contract claims against IBM. The company was directed to accept Novell's waiver of its UNIX contract claims against IBM. In addition, the court determined that certain SCOsource licensing agreements that the company executed in fiscal year 2003 included SVRx technology and that the company was required to remit some portion of the proceeds to Novell. Over the company's objection, a bench trial was set to begin on Sept. 17, 2007, and the federal judge was to determine what portion, if any, of the proceeds of the fiscal year 2003 SCOsource agreements is attributable to SVRx technology and should be remitted to Novell. The trial of these issues, however, was stayed as a result of the company's filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code on Sept. 14, 2007. The company intends to maintain business operations throughout the bankruptcy case. Subject to the bankruptcy court's approval, the company will use its cash, cash equivalents, restricted cash and subsequent cash inflows to meet its working capital needs throughout the reorganization process. About The SCO Group Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, among others. The company and its affiliate filed for separate Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Case No. 07-11337 thru 07-11338). James E. O'Neill, Esq. and Laura Davis Jones, Esq. of Pachulski, Stang, Ziehl & Jones LLP representn the Debtors in their restructuring efforts. The Debtor's total assets was US$14,800,000 and its total debts was US$7,500,000 as of Sept. 10, 2007. ============= B E L G I U M ============= INTERSTATE HOTELS: Partners With Investcorp to Buy Hotels --------------------------------------------------------- Interstate Hotels & Resorts has formed a joint venture partnership with Investcorp International's U.S. based Real Estate Group. The partnership, along with Interstate, have agreed to acquire three hotels from affiliates of The Blackstone Group L.P. for an aggregate price of US$118 million: -- the 321-room Hilton Seelbach Louisville in Kentucky; -- the 226-room Crowne Plaza Madison in Wisconsin; and -- the 288-room Sheraton Columbia in Maryland. Interstate will invest approximately US$4.7 million in exchange for a 15% equity interest in two of the properties, the Hilton Seelbach and the Crowne Plaza Madison. The two joint venture properties will continue to be managed by Interstate under new management agreements. As part of the overall transaction, Interstate will also acquire 100% of the third hotel, the Sheraton Columbia, for US$46.5 million. The company plans to invest US$12 million in a comprehensive renovation of the property, including upgrades to all guest rooms and public spaces, which is expected to be completed by the end of 2008. Interstate will fund the acquisition with available cash and capacity under its senior revolving credit facility. The transaction is expected to close in the fourth quarter. "This falls directly within our strategy of owning real estate, both for our own account and in joint venture partnerships," Thomas F. Hewitt, Interstate's chief executive officer, said. "This transaction is an illustration of our successful execution of our growth strategy. We remain opportunistic in our acquisition strategy and maintain flexibility to structure transactions within dynamic markets." "These three, geographically diverse properties are located in key urban, airport and major suburban markets," said Leslie Ng, chief investment officer. "All of the properties are strong performers with steadily improving RevPAR and income and have significant further upside potential. This is our first venture with Investcorp, one of the world's largest and most diverse alternative investment managers, and we look forward to exploring additional opportunities with them." "The acquisition of these hotels is consistent with our multi-disciplinary focus of aggressively pursuing opportunities across product platforms and geographies to deliver strong cash flows and above average returns to our global clients," said John Fraser, co-head, Investcorp Real Estate Group. "Interstate has been successfully managing these properties and is thoroughly familiar with the individual markets. Given Interstate's solid track-history, expertise and proprietary management systems, we are very confident in its ability to drive these properties to their fullest potential." Sheraton Columbia Maryland The 288-room Sheraton Columbia Hotel is located in Columbia, Maryland, a 14,000-acre planned community approximately 40 miles north of Washington, D.C., and 15 miles from Baltimore. Situated in Howard County features more than 2,500 businesses, over 60,000 jobs, 21 million square feet of commercial and residential space and an array of social, cultural, educational, entertainment and recreational programs and facilities. Hilton Seelbach Louisville Kentucky Since its opening in 1905, Seelbach Hilton Louisville, a 321- room property offers the atmosphere of a bygone era including internet access in all guest rooms and meeting rooms. It also is home to Kentucky's Oak Room restaurant. The hotel is situated downtown, close to Louisville's attractions. Crowne Plaza Madison Wisconsin Located off I-90/94, three miles from the Madison airport, the 226-room Crowne Plaza is situated near Madison's shopping mall, theater and restaurants, and proximate to the city's convention center, the University of Wisconsin and the state capitol. Renovated in 2005, the hotel features an indoor pool, restaurant and lounge, a business center and more than 6,800 square feet of meeting space. About Investcorp Real Estate Group The Investcorp Real Estate Group (LSE: IVC, BSE: INVCORP) -- http://www.investcorp.com/-- is a return-oriented real estate investor. Investcorp's real estate team, is experienced in the acquisition, development, financing, leasing, management, and disposition of a wide variety of property types including office, retail, hotel, residential, mixed-use, luxury resort and others. The Investcorp Real Estate Group is part of Investcorp, a provider and manager of alternative investment products. Investcorp has offices in New York, London and Bahrain. Founded in 1982, the firm has five lines of business: private equity, real estate, hedge funds, venture capital and Gulf growth capital. About Interstate Hotels & Resorts Inc. Headquartered in Arlington, Virginia, Interstate Hotels & Resorts Inc. (NYSE: IHR)-- http://www.ihrco.com/-- operated 189 hospitality properties with more than 43,000 rooms in 36 states, the District of Columbia, Belgium, Canada, Ireland, Mexico and Russia, including six wholly-owned properties and 20 properties with a minority ownership interest through 13 separate joint ventures, as of Aug. 31, 2007. In addition, Interstate Hotels & Resorts has contracts to manage 16 hospitality properties with nearly 4,600 rooms under development. * * * Moody's Investor Services placed Interstate Hotels & Resorts Inc.'s long term corporate family rating at B1 in January 2007. The outlook is negative. Standard & Poor's placed its long term foreign and local issuer credit ratings at B. These ratings placed in August 2004, still hold to this date. LEVI STRAUSS: Tender Offer for Senior Notes Expires on Oct. 17 -------------------------------------------------------------- Levi Strauss & Co. has commenced a cash tender offer for any and all of its outstanding US$525.0 million aggregate principal amount of 12.25% Senior Notes due 2012 on the terms and subject to the conditions set forth in the company's Offer to Purchase and Consent Solicitation Statement dated Sept. 19, 2007. The tender offer will expire at 12:00 midnight, New York City time, on Oct. 17, 2007, unless extended or earlier terminated by the company. In connection with the cash tender offer, the company is also soliciting consents to amend the indenture under which the Notes were issued to eliminate or make less restrictive most of the restrictive covenants, and certain related events of default, contained in the indenture. The tender offer documents more fully set forth the terms of the tender offer and consent solicitation. The total consideration for each US$1,000 principal amount of Notes validly tendered and not withdrawn prior to the Consent Payment Deadline, and accepted for purchase pursuant to the tender offer, will be determined as specified in the tender offer documents and will be equal to the present value, minus accrued interest, on the applicable payment date for the tender of Notes of (i) US$1,061.25 and (ii) the remaining scheduled interest payments on such Notes after the payment date for the tender of Notes to Dec. 15, 2007, in each case determined on the basis of a yield to the Redemption Date equal to the sum of (A) the yield on the 4.375% U.S. Treasury note due Dec. 31, 2007, as calculated by Credit Suisse Securities (USA) LLC, acting as dealer manager, in accordance with standard market practice, based on the bid side price for the Reference Treasury Security on the price determination date, plus (B) a fixed spread of 50 basis points. Each holder who validly tenders its Notes and delivers consents on or prior to 5:00 p.m., New York City time, on Oct. 3, 2007 will be entitled to a consent payment, which is included in the total consideration above, of US$30.00 for each US$1,000 principal amount of Notes tendered by such holder if such Notes are accepted for purchase pursuant to the tender offer. Holders who tender Notes after the Consent Payment Deadline, but prior to the expiration of the tender offer, will not be entitled to receive the consent payment. Prior to the expiration of the tender offer, upon satisfaction or waiver of the conditions to the tender offer, the company may, at its option, accept and pay for Notes tendered. Subject to limited conditions, all Notes tendered after the Consent Payment Deadline for purchase will be accepted and paid for promptly following the expiration date of the tender offer. Holders will be paid accrued and unpaid interest up to but not including the applicable date of payment. The company's obligation to consummate the tender offer is conditioned upon the satisfaction of certain conditions, including: (i) the company having amended its senior secured revolving credit facility to increase its line of credit thereunder by an additional US$200 million to US$750 million, which shall include a US$250 million tranche that is secured by the Levi's(R) trademark in the United States, upon terms and conditions satisfactory to it and (ii) holders of Notes representing not less than a majority in principal amount of the outstanding Notes having tendered their Notes and delivered their consents. The company has retained Credit Suisse as dealer manager and solicitation agent in connection with the tender offer and consent solicitation. Questions about the tender offer and consent solicitation may be directed to Credit Suisse at 212- 325-4951 (collect). Holders can request documents from D.F. King & Co., Inc., the information agent and tender agent, at 888-887-0082 (U.S. toll free) or 212-269-5550 (collect). Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss & Co. -- http://www.levistrauss.com/-- is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. The company market-leading apparel products are sold under the Levi's(R), Dockers(R) and Levi Strauss Signature(R) brands. Levi Strauss & Co. is privately held by descendants of the family of Levi Strauss. Shares of company stock are not publicly traded. Shares of Levi Strauss Japan K.K., the company's Japanese affiliate, are publicly traded in Japan. The company employs a staff of approximately 10,000 worldwide, including approximately 1,010 at the company's San Francisco, California headquarters. Levi Strauss Europe is headquartered in Brussels, Belgium, while Levi's Asia Pacific division is based in Singapore. Levi's has operations in Brazil, Mexico, Chile and Peru. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 31, 2007, Standard & Poor's Ratings Services has it raised its ratings on San Francisco-based apparel company Levi Strauss & Co. by one notch, including its long-term corporate credit rating to 'B+' from 'B'. The outlook is stable. STERIGENICS INT'L: Moody's Cuts Corporate Family Rating to B3 ------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Sterigenics International, Inc., to B3 from B2. Moody's also changed the outlook for the ratings to negative from stable. The downgrade of the ratings reflects the deterioration of the company's liquidity profile and weakening credit metrics following recent operating results that have been below expectations. Moody's believes Sterigenics' liquidity position is weak due to continued reliance on its revolving credit facility, minimal cash on hand and tightening levels of covenant compliance. Moody's understands that at June 30, 2007, approximately US$24 million of the company's US$30 million revolving credit facility had been drawn and the company had a minimal amount of available cash. Further, the company's operating results have lagged our expectations with regard to revenue growth, EBITDA, and free cash flow due in large part to decreased volume from a key customer. The combination of capital expenditures well in excess of anticipated levels and below forecasted levels of cash flow has increased the company's reliance on its revolver and weakened its ability to comply with the financial covenants included in the senior secured credit facility. The negative outlook reflects the expectation that the company will continue to see pressure on its liquidity position as covenant levels step down for the quarter ending December 31, 2007. The current total leverage ratio requirement of 4.40 times will be reduced to 4.25 times at Dec. 31, 2007. If the lower level had been in place as of June 30, 2007, the company would not have been in compliance. Therefore, without improvement in EBITDA performance or meaningful debt repayment, Moody's would expect the company to have difficulty remaining in compliance once the covenant levels step down. The ratings remain constrained by the relatively small revenue base and continued customer concentration. While revenue has been growing as the company opens new facilities and increases capacity at existing facilities, the concentration of revenue from its most significant customers continues. The ratings are also constrained by the significant financial leverage of the company following the US$75 million dividend to shareholders at the end of 2006 and the reliance on the revolving credit facility to fund capital expenditures. Also considered in the rating are the company's leading market position and its ability to satisfy customer needs through the offering of alternative modes of sterilization services. The company enjoys a relatively stable and long-lived customer base for whom switching is difficult. Additionally, the company's expansion strategy has been based on customer demand, ensuring a base level of business as capacity comes on line resulting in EBIT margins that are relatively strong for the rating category. A summary of Moody's rating actions: -- US$30 million senior secured revolving credit facility due 2011, to B3 (LGD3, 33%) from B2 (LGD3, 33%); -- US$290 million senior secured term loan B due 2013, to B3 (LGD3, 33%) from B2 (LGD3, 33%); -- Corporate Family Rating, to B3 from B2; and -- Probability of Default Rating, to Caa1 from B3. Sterigenics International, Inc., headquartered in Oak Brook, IL, is a provider of contract sterilization and ionization services for medical devices, food safety and advanced materials applications. The company operates 40 facilities in California, Mexico, Belgium, Denmark, France, China, Thailand, among others. For the twelve months ended June 30, 2007, the company recognized net revenue of approximately US$233 million. =========== F R A N C E =========== PERNOD RICARD: Earns EUR831 Million in FY Ended June 2007 --------------------------------------------------------- The Pernod Ricard Board of Directors’ meeting of Sept. 19, 2007, chaired by Patrick Ricard, approved the financial statements for the 2006/2007 financial year ended June 30, 2007. The 2006/07 fiscal year was a highly successful year for Pernod Ricard, marked by: -- Dynamic sales in all regions, driven by the strong growth of the wine and spirits market and by the Group’s performance, which took full advantage of the commercial synergies related to the Allied Domecq acquisition; -- A strong 21%* increase in operating profit from ordinary activities, which resulted from increased sales, higher contribution margin from the portfolio, due to the 15 strategic brands representing a greater share of consolidated sales, and from the achievement of 100% of structure synergies; -- A sharp increase in profit from ordinary activities and improved debt ratios. * Organic growth measured excluding July for Allied Domecq brands ** Measured on a constant foreign exchange basis Strong sales growth (+6.2%) Net sales for the 2006/07 financial year increased by 6.2% to EUR6.4 billion (excluding duties and taxes). The increase was due to a strong 9.1% organic growth, a 2.8% negative foreign exchange effect and a 0.2% positive Group structure effect. The company said this strong organic growth was based on: -- The good overall performance of our markets, particularly in emerging countries; -- The dynamism of our brand portfolio, in particular our 15 strategic brands, which registered growth of +9%* and +13%* in volume and value, respectively; -- Pernod's powerful global network and commercial synergies related to the Allied Domecq acquisition; -- The relaunch of media and advertising & promotional campaigns for brands acquired as part of the Allied Domecq takeover, which benefited from a substantial increase in advertising expenditure, in particular in the second half- year. Improved contribution margin from the portfolio Gross margin increased by +10.2%*, thanks to strong sales growth and the improved gross margin/sales ratio, which rose to 59.8% from 59.0% on a constant foreign exchange basis. The greater proportion represented by the Top 15 brands, the overall evolution of the mix within the Top 15 and the value strategy applied to the whole portfolio all strongly contributed to the improvement, in spite of the rise in alcohol and energy prices. This good performance made it possible to significantly increase advertising and promotional expenditure, in line with sales growth. The increase was further enhanced in the second half- year due to the roll-out of the new campaigns of brands acquired as part of the Allied Domecq takeover, in particular Ballantine’s, Beefeater and Stolichnaya. The 15 strategic brands attracted more than 70% of marketing expenditure and 90% of growth in the 2006/07 financial year. All in all, the contribution after advertising and promotional expenses generated by the brand portfolio totalled EUR2,486 million, (+10.3%*) being 38.6% of sales (+ 60 bp vs 2005/06 on a constant foreign exchange basis). * Organic growth measured excluding July for Allied Domecq brands Decrease in the Structure costs / Sales ratio Structure costs amounted to EUR1.039 billion over the period, compared to EUR1.075 billion in the previous financial year. The speed of the Allied Domecq integration indeed allowed, as planned, the achievement of 100% of the EUR270 million in synergies in the 2006/07 financial year and to lower the structure costs / sales ratio from 19% before the takeover to 15.6%, excluding the (non cash) impact of the cost of stock options. Operating profit from ordinary activities Overall, under the combined effect of growing sales, increased portfolio contribution margin rate and structure synergies, operating profit from ordinary activities grew by 21%* to EUR1.447 billion. The operating profit margin improved by 230 bp to 22.5% compared to the previous financial year, on a constant foreign exchange basis. Analysis of performance by region Asia/Rest of the World and America were again the leading profit growth drivers in the financial year, posting increases of +39%* and +21%* in operating profit from ordinary activities, respectively. The two regions generated total operating profit from ordinary activities of EUR807 million, being 56% of Group profits. Against the background of an improving economic situation, Europe and France also experienced a 2006/07 financial year of strong growth, with increases in operating profit from ordinary activities of +12%* and +10%*, respectively. This renewed dynamism was generated by stronger sales in numerous markets, such as France, Germany and Italy, and by continuing strong growth in Central and Eastern Europe markets (Russia, Poland). These two regions realized a combined operating profit from ordinary activities of EUR640 million. Profit from ordinary activities Financial Income/(expense) from ordinary activities was an expense of EUR341 million, of which EUR332 million corresponded to financial expenses paid in respect of the debt (i.e. an average interest rate of about 5.0%), EUR12 million in finance structuring costs, and EUR3 million in other financial income. Income tax on items from ordinary activities resulted in a EUR249 million expense (i.e. a rate of 22.5%). Disposed operations did not generate any profits in the 2006/07 financial year, whereas profits of Dunkin Brands and Britvic had contributed EUR57 million in the previous year, until their respective disposals. Finally, the minority interest share of profit from ordinary activities was EUR25 million and originated from Corby (Canada), Jinro Ballantine’s (South Korea) and Havana Club International (Cuba). * Organic growth measured excluding July for Allied Domecq brands Overall, profit from ordinary activities (Group share) amounted to EUR833 million, a 24% increase on constant foreign exchange basis compared to 2005/06. Our initial guidance of an increase of about 20% was thus exceeded. Diluted earnings per share from ordinary activities grew by 21% to EUR7.75, on a constant foreign exchange basis. Net profit Other operating income/(expense) was a EUR20 million income. The balance of EUR31 million in costs relating to the restructuring and integration of Allied Domecq was largely offset by asset disposal capital gains of EUR31 million and other income of EUR20 million. The EUR10 million expense from other financial items primarily comprised exchange losses. Finally, other items generated an income tax expense of EUR11 million. After taking account of all other items, net profit (Group share) totaled EUR831 million, a 30% increase compared to the 2005/06 financial year. Debt Net debt at June 30, 2007 amounted to EUR6.5 billion, compared to an opening balance of EUR6.9 billion, after payment of capital gains tax upon the disposal of Dunkin Brands. The decrease in debt resulted in improved debt ratios, with in particular a Net Debt**/EBITDA ratio decrease to 3.9 against 4.3 in 2005/06. Finally, pension commitment follow-up showed a decrease of nearly EUR500 million in the deficit over the financial year, due in particular to payments made to pension funds and the rising value of the assets invested in these funds. This performance was made more secure by the reduction of the share of assets invested in shares, from 50% to 24% at 30 June 2007, within the pension funds taken over following the Allied Domecq acquisition. Payments to UK funds will thus be reduced to about EUR70 million in 2008, from EUR150 million in 2006. Dividend: +20% These excellent results allow the Board of Directors to propose to the Annual General Meeting of 7 November 2007 a cash dividend of EUR2.52 per share, stable compared to last year’s. This is an effective increase of 20%, considering the granting of one free share for every five shares held on 16 January 2007. Such an increase, combined to that of the previous financial year, results in a 41% rise in the dividend since the Allied Domecq acquisition. * Organic growth measured excluding July for Allied Domecq brands ** After restatement of treasury shares value Due to the payment of an interim dividend of EUR1.26 on July 4, 2007, the balance of EUR1.26 will be paid on Wednesday, Nov. 14, 2007. In addition, the Board of Directors will submit for approval by the General Meeting a one-for-one share split, to be carried out in January 2008. Conclusion and Outlook Commenting on these results, Patrick Ricard declared: “2006/07 was an excellent year for Pernod Ricard, with in particular the confirmed success of the Allied Domecq takeover and the strong growth in results and profitability. The dynamism of our brands, the strength of our distribution network and the good start of the new financial year in July and August, in particular for the premium brands (only aniseed-based products suffered from the adverse weather) allow us to begin the 2007/08 financial year with confidence, while keeping a watchful eye on business environment developments. Therefore, based on current market conditions and on a like-for- like basis*, our guidance is a further year of strong growth in Pernod Ricard sales and operating profit from ordinary activities in the 2007/08 financial year.” About Pernod Ricard Headquartered in Paris, France, Pernod Ricard -- http://www.pernod-ricard.com/-- produces and distributes spirits and wines. The Company operates in Europe, North America, Central and South America, and the Asia-Pacific region. * * * Pernod Ricard carries Standard & Poor's BB+ ratings on its 5.245% floating rate notes and 4-5/8% unsubordinated notes. URS CORP: S&P Rates Proposed US$2.1 Billion Facilities at BB+ ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' bank loan rating and '2' recovery rating to URS Corp.'s proposed US$2.1 billion senior secured credit facilities, indicating expectations of substantial (70%-90%) recovery in the event of a payment default. The facilities are rated the same as the corporate credit rating on the company. The facilities are expected to consist of: A five-year, US$700 million revolving credit facility, all of which is available for LOCs;A five-year, US$1.1 billion term loan A facility; and A 5.5-year, US$300 million term loan B facility. The company also has the option to add a synthetic LOC facility of up to US$500 million at any time within four years of the closing date. Headquartered in San Francisco, California, URS Corporation (NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program and construction management, and operations and maintenance services for transportation, facilities, environmental, water/wastewater, industrial infrastructure and process, homeland security, installations and logistics, and defense systems. The company operates in more than 20 countries with approximately 29,500 employees providing engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries. The company also has offices in Argentina, Australia, Belgium, China, France, Germany, and Mexico, among others. XEROX CORP: Invests US$60 Million in Next Generation Toner Plant ---------------------------------------------------------------- Xerox Corporation began filling more than 20 miles of pipe and stainless steel tanks with billions of micron-sized toner particles with the opening of its first U.S.-based emulsion aggregation Toner plant. The new US$60 million facility is the latest move by Xerox to support the growth of color pages in the digital printing market while being environmentally responsible. Last year alone more than 30 billion color pages were printed on Xerox devices. Developed by Xerox and protected by more than 300 patents, EA toner produces sharper images using less toner per page, and is already used in more than a dozen Xerox products like the company's WorkCentre(TM) multifunction devices that print, copy, scan and fax, and the Xerox DocuColor(TM) series of color printers. The five-story 100,000 square-foot plant located near Rochester, New York, will be staffed by more than 40 chemical engineers and increases Xerox's capacity for toner made by the EA process by 175%. In addition to producing better quality prints, EA Toner is significantly more environmentally friendly. Unlike traditional toner, which is created by physically grinding composite polymeric materials to micron-sized particles, EA toner is chemically grown enabling the size, shape and structure of the particles to be precisely controlled. This Xerox-developed technology leads to improved print quality, less toner usage, less toner waste and less energy required for manufacturing and for printing. EA Toner was developed exclusively at the company's start up production facility in Mississauga, Ontario, attached to the Xerox Research Centre Canada, where the toner was first developed. The new EA Toner plant, opened on Sept. 17, 2007, in Webster, is one of the company's "smartest" manufacturing facilities and is part of Xerox's commitment to reduce its overall greenhouse gas emissions 10% by 2012. "Xerox is the world's largest manufacturer of toner, so we need to do it efficiently," Richard Schmachtenberg, vice president of Consumables Development & Manufacturing Group, said. "The plant is designed for energy efficiency, and is packed with more than 4,000 sensors that track information about temperature, humidity, air flow and other variables." The plant is also organized into zones that can be separately controlled for the most efficient operation. Depending upon the process being run, whole zones can be shut off when not needed, saving energy costs. The decision to open this state-of-the-art EA Toner plant is part of the company's overall commitment to continue to invest in the manufacturing of technologies that give the company a competitive edge. More than 6,000 employees currently work at the company's 1,100 acre campus, known as the Joseph C. Wilson Technology Center. In addition to manufacturing its high-end production level printers, the center is a key research and development location. "We could have chosen to build this new plant anywhere in the world but we're taking advantage of the strong manufacturing and engineering competencies that exist in Monroe County," Wim Appelo, vice president of Xerox Strategic Services, said. "It's an investment in the community and in our people and symbolic of our on-going initiative to make our Webster facility a model showcase." About Xerox Corp. Headquartered in Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/-- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. The company maintains operations in France, Japan, Italy, Nicaragua, among others. * * * As reported in the Troubled Company Reporter on May 23, 2007, Standard & Poor's Ratings Services revised its rating outlook on Stamford, Connecticut-based Xerox Corp. to positive from stable. Ratings on the company, including the 'BB+' long-term and 'B-1' short-term corporate credit ratings, were affirmed. ============= G E R M A N Y ============= ALERIS INT'L: S&P Rates US$105 Million Senior Notes at B- --------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P has affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P has assigned a 'B-' rating to the company's recent US$105 million 9% senior notes due 2014, which are an add-on to the company's existing US$600 million 9% senior notes due 2014. Pro forma total debt outstanding at June 30, 2007, approximates US$2.8 billion. "The outlook revision reflects recent operating weakness in the company's North American global rolled and extruded products segment and the expectation that this trend will continue in the near term," said S&P's credit analyst Marie Shmaruk. During the three months ended June 30, 2007, volumes in this segment declined 20% year-over-year, primarily because of weaker demand for building and construction, distribution, and transportation products. This, combined with increased debt balances due to the company's aggressive growth strategy, has resulted in credit measures that are weak for the rating. "We could lower the ratings in the near term if the company's debt levels remain high and performance weakens materially because of intensified competition or market conditions deteriorate," Ms. Shmaruk said. "An outlook revision back to stable would depend on management improving and maintaining a financial profile more consistent with the rating through earnings growth and more moderate debt levels." Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. AUTOHAUS DIERKS: Claims Registration Period Ends Sept. 28 --------------------------------------------------------- Creditors of Autohaus Dierks Koethen GmbH have until Sept. 28 to register their claims with court-appointed insolvency manager Steffen Koch. Creditors and other interested parties are encouraged to attend the meeting at 10:25 a.m. on Oct. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Koch Albert-Einstein-Ring 11 22761 Hamburg Germany Tel: (040) 899 56-0 Fax: (040) 899 56-10 The District Court of Walsrode opened bankruptcy proceedings against Autohaus Dierks Koethen GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Autohaus Dierks Koethen GmbH Attn: Joerg Brinkmann, Manager Konrad-Adenauer-Allee 4 06366 Koethen Germany DR. WULFERT WOHNBAU: Claims Registration Period Ends Oct. 11 ------------------------------------------------------------ Creditors of Dr. Wulfert Wohnbau GmbH have until Oct. 11 to register their claims with court-appointed insolvency manager Dr. Joerg Nerlich. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Nov. 16, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall W 1.26 William-Strasse 23 53111 Bonn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Nerlich Sternstr. 79 53111 Bonn Germany Tel: 0228/94 59 820 Fax: 0228/9459829 The District Court of Bonn opened bankruptcy proceedings against Dr. Wulfert Wohnbau GmbH on Sept. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dr. Wulfert Wohnbau GmbH Attn: Ulrich Wulfert, Manager Toepferstrasse 10 53721 Siegburg Germany E.D.H. TRADING: Claims Registration Period Ends Sept. 28 -------------------------------------------------------- Creditors of E.D.H. Trading GmbH have until Sept. 28 to register their claims with court-appointed insolvency manager Steffen Koch. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on Oct. 22, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Steffen Koch Albert-Einstein-Ring 11 22761 Hamburg Germany Tel: (040) 899 56-0 Fax: (040) 899 56-10 The District Court of Walsrode opened bankruptcy proceedings against E.D.H. Trading GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: E.D.H. Trading GmbH Attn: Horst Dierks, Manager Westerwalseder Strasse 6 27386 Kirchwalsede Germany GEORGI BETEILIGUNGS: Claims Registration Period Ends Oct. 9 ----------------------------------------------------------- Creditors of Georgi Beteiligungs GmbH have until Oct. 9 to register their claims with court-appointed insolvency manager Reni Lindemann-Deffert. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 19, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Osnabrueck Branch N 301 Kollegienwall 10 49074 Osnabrueck Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Reni Lindemann-Deffert Niedersachsenstrasse 15a 49074 Osnabrueck Germany Tel: 0541/357910 Fax: 0541/3579128 The District Court of Osnabrueck opened bankruptcy proceedings against Georgi Beteiligungs GmbH on Sept. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Georgi Beteiligungs GmbH Attn: Anke Faenger, Manager Giesbert-Bergerhoff-Str. 24 49076 Osnabrueck Germany GESUNDEN SCHLAF: Claims Registration Ends October 15 ---------------------------------------------------- Creditors of gesunden Schlaf GmbH have until Oct. 15 to register their claims with court-appointed insolvency manager Dr. Harald Hess. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Nov. 15, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kaiserslautern Hall 13 Bahnhofstrasse 24 67655 Kaiserslautern Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Harald Hess W.-Th.-Roemheld-Str. 14 55130 Mainz Germany Tel: 06131/2850-0 Fax: 06131/2850-28 The District Court of Kaiserslautern opened bankruptcy proceedings against gesunden Schlaf GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: gesunden Schlaf GmbH Heidestr. 40 67677 Enkenbach-Alsenborn Germany Attn: Marco Creuzburg, Manager Hauptstr. 81 67691 Hochspeyer Germany GLASBAU SCHULZ: Claims Registration Ends Oct. 15 ------------------------------------------------ Creditors of Glasbau Schulz GmbH have until Oct. 15 to register their claims with court-appointed insolvency manager Rainer Froelich. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Nov. 6, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 409 Fourth Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rainer Froelich Vohwinkeler Strasse 58 42329 Wuppertal Germany The District Court of Duesseldorf opened bankruptcy proceedings against Glasbau Schulz GmbH on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Glasbau Schulz GmbH Schneewittchenweg 7 42111 Wuppertal Germany HARTMANN & ERICHSEN: Claims Registration Ends October 11 -------------------------------------------------------- Creditors of Hartmann & Erichsen GmbH & Co KG have until Oct. 11 to register their claims with court-appointed insolvency manager Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Oct. 23, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kiel Hall 17 Deliusstr. 22 Kiel Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg Germany Tel: 040/334460 The District Court of Kiel opened bankruptcy proceedings against Hartmann & Erichsen GmbH & Co KG on Sept. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hartmann & Erichsen GmbH & Co KG Attn: Peter Grommisch, Manager Taubenkrug 26 24111 Kiel Germany HAUS- UND RAUMGESTALTUNG: Claims Registration Ends October 11 ------------------------------------------------------------- Creditors of Haus- und Raumgestaltung Doebeln GmbH have until Oct. 11 to register their claims with court-appointed insolvency manager Michael C. Frege. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Nov. 8, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 145 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael C. Frege Augustusplatz 9 04109 Leipzig Germany Tel: 0341/2167225 Fax: 0341/2167232 Web site: insolvenz@cms-hs.com The District Court of Leipzig opened bankruptcy proceedings against Haus- und Raumgestaltung Doebeln GmbH on Sept. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Haus- und Raumgestaltung Doebeln GmbH Attn: Mario Kress, Manager Obermarkt 7 04720 Doebeln Germany KABEL DEUTSCHLAND: Buys Orion's Networks for EUR585 Million ----------------------------------------------------------- Kabel Deutschland GmbH signed a purchase agreement with the Orion Group to acquire networks serving approximately 1.2 million cable television subscribers for EUR585 million. The subscribers are located in eight German federal states (Schleswig-Holstein, Hamburg, Bremen, Lower Saxony, Mecklenburg- Western Pomerania, Rhineland-Palatinate, Saarland und Bavaria), in which Kabel Deutschland operates the level 3 (distribution network) and level 4 networks (home networks). The transaction resolves the historic and unique separation of network levels in these federal states to a large extent. "These households which have been limited to DTAG offers for the first time will be able to receive highly competitive Triple- Play-Services - high-speed internet, telephony and digital television services from Kabel Deutschland", said Kabel Deutschland’s CEO, Adrian v. Hammerstein. The closing is anticipated to occur in the first quarter of 2008 after FCO clearance. KDG also announced that it will no longer pursue its options related to Primacom and will tender into the Orion offer. About Kabel Deutschland Headquartered in Unterfoehring, Germany, Kabel Deutschland -- http://www.kabeldeutschland.com/en.html-- operates cable networks in 13 German states and supplies its services to more than 9 million connected TV households in Germany. It is Germany's largest cable network operator. KDG offers an open digital TV platform for all program providers. The company operates the networks, markets cable connections and provides comprehensive services for all matters of cable connectivity. In fiscal year 2006/2007 (12 months ended March 31, 2007), Kabel Deutschland reported a total revenue of approximately EUR1.1 billion. The company has around 2,700 employees. KABEL DEUTSCHLAND: Network Buy Cues S&P’s Watch on B+ Rating ------------------------------------------------------------ Standard & Poor's Ratings Services has placed its 'B+' long-term corporate credit rating on German cable operator Kabel Deutschland GmbH on CreditWatch with negative implications, following KDG's announcement of its acquisition of networks serving about 1.2 million cable TV subscribers from the Orion Group for about EUR585 million. "The CreditWatch placement reflects the need for deeper analysis to determine whether the expected material increase in debt resulting from the transaction is compatible with the group's current rating and to examine the nature of the funding," said Standard & Poor's credit analyst Leandro de Torres Zabala. The outlook was previously negative, reflecting the execution risk embedded in KDG's strategy to roll out phone and Internet services, and the expected resulting negative impact on the group's leverage and free cash flow generation in the near-to- medium term. Although Standard & Poor's appreciates the transaction's business logic and a downgrade is not certain, we must assess the acquisition in the context of the group's very highly leveraged balance sheet and negative free cash flow generation. S&P’s review will focus on KDG's revised business plan following the acquisition, particularly regarding capital expenditures and cash flow forecasts. S&P also needs to understand the characteristics of the new funding and the related implications, if any, for the group's current capital structure. The group's adjusted total debt amounted to EUR3.72 billion at June 30, 2007. This translated into a ratio of adjusted total debt to adjusted last-12-month EBITDA as high as 7.8x, pre- acquisition. "We expect to resolve the CreditWatch status within the next few weeks, once we have obtained further information about the group's revised business and financial plans and have carried out a more detailed review of its financial policy and funding plans," said Mr. de Torres. MAKS OBJEKTEINRICHTUNGEN: Claims Registration Ends Oct. 10 ---------------------------------------------------------- Creditors of MAKS Objekteinrichtungen GmbH have until Oct. 10 to register their claims with court-appointed insolvency manager Steffen Beck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Oct. 31, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Esslingen Hall 1 Ritterstr. 5 (Eingang Strohstrasse 1) Esslingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Steffen Beck Breitscheidstr. 10 70174 Stuttgart Germany Tel: 0711/2525660 Fax: 0711/2525 The District Court of Esslingen opened bankruptcy proceedings against MAKS Objekteinrichtungen GmbH on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MAKS Objekteinrichtungen GmbH Attn: Frank Dieter Volkmar, Manager Marie-Curie-Str. 29 73230 Kirchheim Germany MOLANA BUS: Claims Registration Ends Oct. 15 -------------------------------------------- Creditors of Molana Bus GmbH have until Oct. 15 to register their claims with court-appointed insolvency manager Stefano Buck. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on Nov. 13, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Offenburg Hall 0.005 Hindenburgstr. 5 77654 Offenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Stefano Buck Eisenbahnstr. 19-23 77855 Achern Germany The District Court of Offenburg opened bankruptcy proceedings against Molana Bus GmbH on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Molana Bus GmbH Attn: Rebecca Tarlow, Manager Am Alten Bahnhof 4 77694 Kehl Germany OEZKAN PAPIERVERARBEITUNG: Claims Registration Ends Oct. 15 ----------------------------------------------------------- Creditors of Oezkan Papierverarbeitung GmbH have until Oct. 15 to register their claims with court-appointed insolvency manager Christian Hellmich. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 5, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Str. 28 Ludwigsburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christian Hellmich Koenigstr. 20 70173 Stuttgart Germany Tel: 0711/223320 The District Court of Ludwigsburg opened bankruptcy proceedings against Oezkan Papierverarbeitung GmbH on Sept. 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Oezkan Papierverarbeitung GmbH Attn: Barbaros Oezkan, Manager Dornierstr. 3 71272 Renningen Germany OSTWALD GMBH: Claims Registration Period Ends Oct. 9 ---------------------------------------------------- Creditors of Ostwald GmbH have until Oct. 9 to register their claims with court-appointed insolvency manager Dr. Karsten Foerster. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on Nov. 6, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Karsten Foerster Herbert-Jensch-Str. 111 15234 Frankfurt (Oder) Germany The District Court of Frankfurt (Oder)opened bankruptcy proceedings against Ostwald GmbH on Sept. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ostwald GmbH Schubertstrasse 65 15234 Frankfurt (Oder) Germany Attn: Herrn Erhard Ostwald, Manager Schulweg 2 15328 Alt Germany PROPLAN GMBH: Claims Registration Period Ends Sept. 26 ------------------------------------------------------ Creditors of ProPlan GmbH have until Sept. 26 to register their claims with court-appointed insolvency manager Siegfried Mueller. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on Oct. 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall W 1.26 First Floor William-Strasse 23 53111 Bonn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Siegfried Mueller Zum Markt 10 53894 Mechernich Germany Tel: 02443/98120 Fax: 02443/981219 The District Court of Bonn opened bankruptcy proceedings against ProPlan GmbH on Sept. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ProPlan GmbH Barentsstr. 15 53881 Euskirchen Germany Attn: Carmen Schinke, Manager Peter-Hett-Str. 34 53909 Zuelpich Germany SAINBACH VERWALTUNGSGESELLSCHAFT: Claims Filing Ends Oct. 15 ------------------------------------------------------------ Creditors of Sainbach Verwaltungsgesellschaft mbH have until Oct. 15 to register their claims with court-appointed insolvency manager Dr. Wolfgang Pieper. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Nov. 14, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aschaffenburg Meeting Hall 5.103 Schlossplatz 5 63739 Aschaffenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Wolfgang Pieper Jahnstr. 74 63743 Aschaffenburg Germany Tel: 06028/997718 Fax: 06028-997719 The District Court of Aschaffenburg opened bankruptcy proceedings against Sainbach Verwaltungsgesellschaft mbH on Sept. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sainbach Verwaltungsgesellschaft mbH Stengerstr. 9 63741 Aschaffenburg Germany TRANSTEC SPEDITIONS: Claims Registration Ends October 11 -------------------------------------------------------- Creditors of TRANSTEC Speditions GmbH have until Oct. 11 to register their claims with court-appointed insolvency manager Joachim Walterscheid. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 1, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hameln Hall 106 Zehnthof 1 31785 Hameln Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Walterscheid Erichstrasse 2 31785 Hameln Germany Tel: 05151/407590 Fax: 05151/407591 E-Mail: kanzlei@walterscheidundcoll.com Web site: www.walterscheidundcoll.com The District Court of Hameln opened bankruptcy proceedings against TRANSTEC Speditions GmbH on Sept. 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TRANSTEC Speditions GmbH Attn: Matthias Hoch, Manager Goldbinnen 11 31840 Hess Germany TUI AG: Drops Joint Venture Plans with Carnival Corp ---------------------------------------------------- TUI AG and Carnival Corp. announced their intention to withdraw their anti-trust filing with the relevant authorities for a joint venture to develop a new cruise brand. TUI and Carnival had planned a joint venture and had filed this with the relevant authorities. Reason for the withdrawal is the extremely difficult environment with regards to competitive law making it impossible to close the transaction in Carnival's current business year. Failure to do so would create adverse tax consequences for the companies and would have a severe impact on the economies of the transaction. TUI and Carnival have decided not to implement the joint venture in the proposed form. TUI AG will stick to its plans to expand its own cruise activities. This will now happen mainly within the framework of Hapag-Lloyd Cruises. Hapag-Lloyd Cruises today operates four cruise liners and is one of the leading operators of premium and luxury cruises in the German speaking market. The fleet includes the MS Europa, the only ship in the world rated with "5-Stars Plus" by the Berlitz Cruise Guide. In the British market, TUI’s subsidiary, TUI Travel, also operates five cruise liners under the Thomson Cruises brand as well as two ships under the Island Cruises brand. About TUI Headquartered in Hanover, Germany, TUI AG -- http://www.tui-group.com/-- engages in the tourism and shipping sectors. The Company's core activities are in the tourism business, focusing mainly on the markets of Central, Northern and Western Europe. TUI AG's shipping and logistics activities are contained within its Hapag-Lloyd Container Linie GmbH and CP Ships Ltd. subsidiaries. * * * As reported in the TCR-Europe on Aug. 21, 2007, Moody's Investors Service placed the B1 Corporate Family Rating for TUI Aktiengesellschaft on review for possible downgrade. At the same time, the senior unsecured debt ratings are lowered to B2 from B1, and left on review for possible downgrade. The ratings of the unsecured notes were originally placed on review for possible downgrade on March 20, 2007, following the announcement of the planned merger between TUI's tourism division and First Choice PLC. In a TCR-Europe report on July 27, 2007, Standard & Poor's Ratings Services lowered its ratings on the senior unsecured issues of Germany-based tourism and shipping group TUI AG to 'B' from 'B+' and removed them from CreditWatch, where they were originally placed with negative implications on March 19, 2007. This follows the approval of the merger of its tourism business with U.K. travel operator First Choice Holidays PLC to TUI Travel PLC by antitrust authorities and First Choice shareholders, resulting in increased structural subordination of the group's senior unsecured indebtedness. At the same time, Standard & Poor's affirmed the 'BB-' long-term corporate credit rating on TUI. S&P said the outlook is negative. ========= I T A L Y ========= ALITALIA SPA: Selling Heathrow Slots to Raise Cash -------------------------------------------------- Alitalia S.p.A. plans to sell its take-off and landing slots at the Heathrow airport in the U.K. to raise cash for its operations, Thomson Financial cites Il Sole 24 Ore as reporting. According to Il Sole, the slot sale is one of the measures included in Alitalia's latest business plan to solve the carrier's liquidity crisis. As of June 30, 2007, Alitalia only had EUR562 million in cash and cash equivalents, compared to EUR706 million as of Dec. 31, 2006. Il Sole adds that Alitalia may raise more than EUR45 million if it sold all its slots at Heathrow. 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. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. ALITALIA SPA: Ministers Air Support for Malpensa Downscale Plan --------------------------------------------------------------- Italian Minister Pierluigi Bersani supported Alitalia S.p.A.'s plan to downscale operation at Milan's Malpensa airport, Reuters reports. Mr. Bersani told local newspaper Il Messaggero that Alitalia, in its current state, cannot sustain two hubs, adding that "the development of Malpensa cannot be entrusted to a company which risks bankruptcy." As previously reported in the TCR-Europe, Alitalia said it would "reposition the activities of Milan Malpensa airport by focusing on specific business segments." The carrier said it may reconsider this option "if and when the access regulations for Milan Linate airport were to be modified concentrating the major part of air traffic from/to Lombardy on Milan Malpensa, and if and when airport costs were reduced." Meanwhile, Regional Affairs Minister Linda Lanzillotta voiced her support for the downscale plan, implying that it would allow developments at the Malpensa, to be done by other carriers. "Malpensa has the right to be developed, and it seems to me Ryanair's offer goes in that direction," Ms. Lanzillotta told Il Messaggero. "One certainly cannot make Alitalia act against market logic." 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. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. IMAX CORP: Signs Ten-Theatre Deal with China's Wanda Cinema ----------------------------------------------------------- IMAX Corporation and Wanda Cinema Line Corporation has signed an agreement to install ten IMAX(R) theatres in The People's Republic of China, with the first two installations scheduled for December of this year. The agreement marks IMAX's largest ever multiple-theatre deal in Asia. Under the terms of the sales agreement, all of the theatres are to be installed either with IMAX's MPX(R) theatre system or the company's new digital projection technology, which is currently in the advanced stages of development. Wanda Cinema Line Corporation is the top performing and fastest growing exhibitor in The People's Republic of China with 121 screens in 15 locations. All ten IMAX theatres are expected to be installed by the end of 2010 and bring the total number of IMAX theatres scheduled to be open in The People's Republic of China to 39. "IMAX is a world-class brand that has been received exceptionally well across Asia, and we are very excited to include the IMAX theatre business as an integral part of our present and future growth," said Mr. Bao Jiazhong, General Manager of Wanda Cinema Line Corporation. "Moviegoers in China expect a premium experience when they visit a modern multiplex and our IMAX theatres will be able to deliver on that expectation and beyond, with the biggest Hollywood movies presented in the most engaging and immersive way. IMAX puts you IN the movie, and no other cinema technology can do that." "China continues to be a key strategic growth market for IMAX, and our partnership with Wanda Cinema Line -- an exhibitor AND property developer -- gives us the opportunity to significantly expand our audience-base and ultimately drive greater interest in the region," said IMAX Co-CEO's and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "This single deal is expected to increase our presence in China by more than 30 percent. We are encouraged by the enthusiasm of our new partners and we look forward to working with them to bring The IMAX Experience(R) to more people in China." The first three locations will utilize the IMAX(R) MPX(R) theatre system, IMAX's latest film projection technology specifically designed to enable multiplex operators to enter into the IMAX theatre business. The remaining seven locations are scheduled to utilize IMAX's digital projection system. The exhibitor has options to upgrade the three MPX theatre systems to IMAX digital on pre-negotiated terms, and to opt out of the final five installations subject to a material penalty. All ten IMAX theatres are scheduled to be installed as part of new multiplex constructions. The first two installations are scheduled to take place in December 2007, in the cities of Changsha and Changchun. Other identified cities include Beijing, Chongqing and Wuxi. Each theatre will be capable of playing digitally re-mastered Hollywood event films, as well as original IMAX productions, in both 2D and IMAX(R) 3D. About Wanda Cinema Line Corporation Wanda Cinema Line Corporation is the fastest growing and most competive cinema chain in China. Incorporated in 2005, the company is a full subsidary of Dalian-based Wanda Group. As of today, Wanda Cinema Line owns and operates 121 screens in 15 multiplexes with an average annual box office at over 100 million RMB. In 2007 alone, the company has scheduled to construct 10 new multiplexes with 80 screens, bringing its total number of screens by the end of this year to 200. The company has plans to add 100 to 150 screens each year between 2008 to 2010. By 2010, the company would expect to own and operate a total of 600 screens in 70 multiplexes with annual box office to reach 1.5 billion RMB, taking 30% market share of the entire country. Wanda Cinema Line will ultilize IMAX theatre systems as an important means to enter the international high-end cinema market with plans to build five IMAX theatres each year from 2008 to 2010, and by 2010 the company expects to have 15 to 20 IMAX screens, becoming the biggest IMAX exhibitor outside North America. About IMAX Corporation Headquartered jointly in New York City and Toronto, Canada, IMAX Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of the world's leading entertainment technology companies, with particular emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully-integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post-production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. * * * As reported in the Troubled Company Reporter-Latin America on July 27, 2007, Standard & Poor's Ratings Services affirmed its ratings, including the 'CCC+' corporate credit rating, on IMAX Corp. and removed them from CreditWatch. The ratings were originally placed on CreditWatch with negative implications on Apr. 2, 2007, with a revision to developing implications occurring on July 5, 2007. The rating action follows the company's filing of its SEC Form 10-Q for the first quarter of 2007 and its 2006 Form 10-K, which should put the company in compliance with its filing requirement under its bond indenture and alleviate the risk of a near-term acceleration. PARMALAT SPA: Parma Judge Raises Concerns on Case Against Banks --------------------------------------------------------------- Parma-based judge Giampaolo Fabbrizzi has expressed doubts on the validity of Parmalat S.p.A.'s EUR2.1 billion damages claim against creditor banks Deutsche Bank, JP Morgan, Credit Suisse, UBS, Banca Akros and Merrill Lynch, Il Sole 24 reports. Parmalat alleged that the banks contributed to its collapse. However, Judge Fabbrizzi noted that Parmalat would find it difficult to claim damages for an occurrence to which it had itself contributed. The banks' lawyers have argued that Parmalat chief executive Enrico Bondi cannot sue for “abusive recourse to credit,” citing a ruling in a separate case. The court will hear the case Nov. 26, 2008. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. =================== K A Z A K H S T A N =================== AVIATECH SERVICE: Proof of Claim Deadline Slated for Oct. 23 ------------------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty has declared LLP Aviatech Service insolvent on Aug. 6. Creditors have until Oct. 23 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Rodostovtsev Str. 47-11 Almaty Kazakhstan Tel: 8 701 558 34-19 CHERNY DRAKON LLP: Creditors Must File Claims Oct. 23 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Cherny Drakon insolvent on Aug. 1. Creditors have until Oct. 23 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Rodostovtsev Str. 47-11 Almaty Kazakhstan Tel: 8 701 558 34-19 DIAPAZON LLP: Claims Filing Period Ends Oct. 24 ----------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Diapazon insolvent. Creditors have until Oct. 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Utepov Str. 31/4-54 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 24-29-03 H.L.T. LLP: Creditors' Claims Due on Oct. 23 -------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Industrial-Commercial Company H.L.T. declared. Creditors have until Oct. 23 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Third Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (31222) 32-90-02 HALYK SAVINGS: Closes Syndication of US$300 Mln Term Loan --------------------------------------------------------- JSC Halyk Bank Kazakhstan has closed syndication of its new syndicated term loan facility for US$300 million. The transaction is new money and was arranged by these Initial Mandated Lead Arrangers: * The Bank of Tokyo-Mitsubishi UFJ, Ltd. * CALYON * Mizuho Corporate Bank, Ltd. The syndication was launched on Aug. 3, 2007, and despite volatile, challenging market conditions and competitive terms, the syndication has been closed successfully and the borrower's funding requirements met. Summary details of the transaction: Borrower: HSBK (Europe) B.V., Netherlands Guarantor: JSC Halyk Bank Kazakhstan Amount: US$300,000,000 Tenor: 3-years from signing Repayment: Bullet on final maturity Margin 40 bps pa Facility Agent: Calyon Bookrunners: BTMU, Calyon and Mizuho Headquartered in Almaty, Kazakhstan, Halyk Bank -- http://www.halykbank.kz/-- is the largest universal second-tier bank of Kazakhstan. * * * Halyk Bank carries Moody's Investors Service's Ba1 rating on its foreign long-term bank deposits, and a D rating on its bank financial strength. Standard & Poor's has also issued BB+ long- term foreign and local issuer credit ratings and B short-term foreign and local issuer credit ratings to the company. Meanwhile, Fitch Ratings' foreign currency Issuer Default BB+, Short-term foreign currency B, local currency Issuer Default BBB-, Short-term local currency F3, Individual C/D, and Support 3, still apply to date. HENKEL-ERA OJSC: Claims Registration Ends Oct. 26 ------------------------------------------------- Representation of OJSC Henkel-Era has declared insolvency. Creditors have until Oct. 26 to submit written proofs of claims to: Representation of OJSC Henkel-Era Room 14 Seifullin Ave. 460 Almaty Kazakhstan Tel: 8 (3272) 44-33-99 I-COM-LIMITED LLP: Proof of Claim Deadline Slated for Oct. 24 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP I-Com-Limited insolvent. Creditors have until Oct. 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 ILNUR LLP: Creditors Must File Claims Oct. 26 --------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Ilnur insolvent. Creditors have until Oct. 26 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 MABEK LLP: Claims Filing Period Ends Oct. 26 -------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Mabek insolvent. Creditors have until Oct. 26 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 UNIVERSAL LLP: Creditors' Claims Due on Oct. 24 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Universal insolvent. Creditors have until Oct. 24 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 =================== K Y R G Y Z S T A N =================== MITRA TRADE: Proof of Claim Deadline Slated for October 26 ---------------------------------------------------------- LLC Mitra Trade has declared insolvency. Creditors have until Oct. 26 to submit written proofs of claim to: LLC Mitra Trade Petrov Str. 33b Osh Kyrgyzstan ===================== N E T H E R L A N D S ===================== BAUSCH & LOMB: Commences Tender Offers for Debt Securities ---------------------------------------------------------- Bausch & Lomb is commencing cash tender offers and consent solicitations for four series of outstanding debt securities and two series of outstanding convertible debt securities. These tender offers and consent solicitations are being conducted as part of the financing with the proposed merger between the company and an affiliate of Warburg Pincus LLC. Debt Securities The tender offers and consent solicitations with respect to each series of outstanding debt securities will expire at 8:00 a.m., New York City time, on Oct. 19, 2007, unless extended or earlier terminated by the company. In order to be eligible to receive the purchase price, which includes the consent payment, holders must validly tender, and not validly withdraw, their Debt Securities prior to 5:00 p.m., New York City time on Oct. 3, 2007, unless extended or earlier terminated by the company. Holders tendering their Debt Securities after the applicable Consent Payment Deadline but prior to the applicable Expiration Date will be eligible to receive an amount equal to the purchase price less the consent payment. Debt Securities purchased in the tender offers will be paid for on the applicable settlement date for each tender offer, which, assuming the tender offers are not extended, is expected to be as soon as practicable after the applicable expiration date. 1) CUSIP No.: 071707AH6 Principal Amount Outstanding: US$133,195,000 Title of Security: 6.95% Senior Notes due 2007 Tender Offer Price*+: US$980.00 Consent Payment**: US$20.00 Purchase Price Including the Consent Payment*: US$1,000.00 2) CUSIP No.: 071707AL7 Principal Amount Outstanding: US$50,000,000 Title of Security: 5.90% Senior Notes due 2008 Tender Offer Price*+: US$980.00 Consent Payment**: US$20.00 Purchase Price Including the Consent Payment*: US$1,000.00 3) CUSIP No.: 07171JAE6 Principal Amount Outstanding: US$421,000 Title of Security: 6.56% Medium-Term Notes due 2026 Tender Offer Price*+: US$980.00 Consent Payment**: US$20.00 Purchase Price Including the Consent Payment*: US$1,000.00 4) CUSIP No.: 071707AG8 Principal Amount Outstanding: US$66,429,000 Title of Security: 7.125% Debentures due 2028 Tender Offer Price*+: US$980.00 Consent Payment**: US$20.00 Purchase Price Including the Consent Payment*: US$1,000.00 * = Per US$1,000 principal amount of Debt Securities, excluding accrued and unpaid interest to, but not including, the settlement date with respect to each series, which will be paid in addition to the purchase price. ** = Per US$1,000 principal amount of Debt Securities. + = Equal to Purchase Price less the Consent Payment. Holders tendering their Debt Securities will be required to consent to the proposed amendments to the indentures governing the Debt Securities, which would eliminate or make less restrictive substantially all of the restrictive covenants, as well as certain events of default and related provisions in the indentures. The tender offers and consent solicitations are being made pursuant to the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated Sept. 19, 2007 for the Debt Securities and the related Letter of Transmittal and Consent. Convertible Debt Securities Concurrent with the tender offers and consent solicitations for the Debt Securities, the Company is separately commencing cash tender offers and consent solicitations with respect to its 2004 Senior Convertible Securities due 2023 and its Floating Rate Convertible Senior Notes due 2023. The tender offer and consent solicitation with respect to each series of Convertible Securities will expire at 8:00 a.m., New York City time, on Oct. 19, 2007, unless extended or earlier terminated by the company. The purchase price for each US$1,000 principal amount of Convertible Securities validly tendered and not validly withdrawn pursuant to the tender offers and consent solicitations is US$1,216.14 for the 2004 Senior Convertible Securities due 2023 and US$1,216.14 for the Floating Rate Convertible Senior Notes due 2023, plus, in each case, accrued and unpaid interest to, but not including, the settlement date with respect to each series, which is expected to be as soon as practicable after the applicable expiration date. Holders tendering their Convertible Securities will be required to consent to the proposed amendments to the indentures governing the Convertible Securities, which would eliminate or make less restrictive substantially all of the restrictive covenants, as well as certain events of default and related provisions, in the indentures. The tender offers and consent solicitations are being made pursuant to the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated September 19, 2007 for the Convertible Securities and the related Letter of Transmittal and Consent. Citigroup Global Markets Inc., Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities Inc. are acting as dealer managers for the tender offers and consent solicitations. Questions regarding the transaction and the procedures for consenting may be directed to Citigroup Global Markets Inc. by telephone at (800) 558-3745 (toll-free), Banc of America Securities LLC by telephone at (888) 292-0070 (toll-free) for the Debt Securities and (888) 583-8900 x2200 (toll-free) for the Convertible Securities, Credit Suisse Securities (USA) LLC by telephone at (212) 325-7596 (collect) or J.P. Morgan Securities Inc. by telephone at (212) 270-1477 (collect). Global Bondholder Services is the information agent for the tender offers and consent solicitations. Requests for documentation should be directed to Global Bondholder Services at (866) 540-1500 (toll-free). About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on July 12, 2007, Standard & Poor's Ratings Services said its 'BB+' corporate credit and senior secured ratings on Bausch & Lomb Inc. remain on CreditWatch with negative implications in light of the July 5, 2007 acquisition bid by Advanced Medical Optics Inc. As reported in the Troubled Company Reporter on May 18, 2007, Moody's Investors Service stated that it will continue its review of Bausch & Lomb Incorporated's ratings for possible downgrade following the announcement that the company has entered into a definitive merger agreement with affiliates of Warburg Pincus. Ratings subject to review for possible downgrade include the company's Ba1 Corporate Family rating and Ba1 Probability of Default rating. In addition, the Warburg Pincus deal prompted Fitch to maintain its Negative Rating Watch on the company. Fitch also warned that the transaction would significantly increase leverage and likely result in a multiple-notch downgrade, including an Issuer Default Rating of no higher than 'BB-'. FIRST DATA: Prices Tender Offers for US$2.2 Bln Debt Securities --------------------------------------------------------------- First Data Corporation disclosed the determination of the total consideration and tender offer consideration to be paid pursuant to its cash tender offers and related consent solicitations in respect of an aggregate of approximately US$2.2 billion of its outstanding unsecured debt securities. The total consideration for the Notes, which will be payable in respect of Notes accepted for payment that were validly tendered with consents and not withdrawn at or prior to 5:00 p.m., New York City time, on Aug. 16, 2007, will be an amount equal to the total consideration specified in the table below for each US$1,000 principal amount of Notes. The tender offer consideration for the Notes, which will be payable in respect of Notes accepted for payment that are validly tendered subsequent to 5:00 p.m., New York City time, on Aug. 16, 2007 but at or prior to 8:00 a.m., New York City time, on Sept. 24, 2007 (unless extended or earlier terminated by the company), will be an amount equal to the total consideration minus the applicable consent payment. In each case, holders whose Notes are accepted for payment in the tender offers will receive accrued and unpaid interest in respect of such purchased Notes from the last interest payment date to, but not including, the payment date for Notes purchased in the tender offers. The total consideration and tender offer consideration for each series of Notes under the terms of the tender offers are enumerated. 1) CUSIP and ISIN Nos.: 32006YAG7 and US32006YAG70 Security Description: 6-3/8% Notes due 2007 Applicable Spread: 25 bps Tender Offer Yield: 4.205% Total Consideration: US$1,004.67 Consent Payment: US$30.00 Tender Offer Consideration: US$974.67 2) CUSIP and ISIN Nos.: 319963AG9 and US319963AG92 Security Description: 3.375% Notes due 2008 Applicable Spread: 42 bps Tender Offer Yield: 4.630% Total Consideration: US$989.58 Consent Payment: US$30.00 Tender Offer Consideration: US$959.58 3) CUSIP and ISIN Nos.: 32006YAH5 and US32006YAH53 Security Description: 5.8% Medium-Term Notes due 2008 Applicable Spread: 38 bps Tender Offer Yield: 4.472% Total Consideration: US$1,015.58 Consent Payment: US$30.00 Tender Offer Consideration: US$985.58 4) CUSIP and ISIN Nos.: 319963AJ3 and US319963AJ32 Security Description: 3.9% Notes due 2009 Applicable Spread: 40 bps Tender Offer Yield: 4.416% Total Consideration: US$990.13 Consent Payment: US$30.00 Tender Offer Consideration: US$960.13 5) CUSIP and ISIN Nos.: 319963AL8 and US319963AL87 Security Description: 4.5% Notes due 2010 Applicable Spread: 43 bps Tender Offer Yield: 4.458% Total Consideration: US$1,001.01 Consent Payment: US$30.00 Tender Offer Consideration: US$971.01 6) CUSIP and ISIN Nos.: 319963AF1 and US319963AF10 Security Description: 5.625% Senior Notes due 2011 Applicable Spread: 44 bps Tender Offer Yield: 4.644% Total Consideration: US$1,036.21 Consent Payment: US$30.00 Tender Offer Consideration: US$1,006.21 7) CUSIP and ISIN Nos.: 319963AH7 and US319963AH75 Security Description: 4.7% Notes due 2013 Applicable Spread: 64 bps Tender Offer Yield: 5.176% Total Consideration: US$976.16 Consent Payment: US$30.00 Tender Offer Consideration: US$946.16 8) CUSIP and ISIN Nos.: 319963AK0 and US319963AK05 Security Description: 4.85% Notes due 2014 Applicable Spread: 68 bps Tender Offer Yield: 5.216% Total Consideration: US$978.70 Consent Payment: US$30.00 Tender Offer Consideration: US$948.70 9) CUSIP and ISIN Nos.: 319963AM6 and US319963AM60 Security Description: 4.95% Notes due 2015 Applicable Spread: 72 bps Tender Offer Yield: 5.256% Total Consideration: US$980.70 Consent Payment: US$30.00 Tender Offer Consideration: US$950.70 The tender offers and the related consent solicitations relating to the Notes are made upon the terms and conditions set forth in the company's Offer to Purchase and Consent Solicitation Statement dated Aug. 3, 2007, and the related Consent and Letter of Transmittal, as amended. The tender offers and consent solicitations are subject to the satisfaction of certain conditions, including the merger of First Data with an affiliate of Kohlberg Kravis Roberts & Co. pursuant to the previously announced merger agreement having occurred, or the Merger occurring substantially concurrent with the Offer Expiration Date. First Data has retained Citigroup Global Markets Inc. to act as the lead dealer manager for the tender offers and lead solicitation agent for the consent solicitations, and they can be contacted at (800) 558-3745 (toll-free) or (212) 723-6106 (collect). First Data has also retained Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Lehman Brothers Inc. to act as co-dealer managers for the tender offers and co-solicitation agents for the consent solicitations. Deutsche Bank Luxembourg SA has been appointed Luxembourg Tender Agent for the Offers and may be contacted at: Deutsche Bank Luxembourg SA Trust & Securities Services 2 BLD Konrad Adenauer L-1115 Luxembourg Telephone 00352-421-22-460 Fax 00352-421-22-426 Requests for documentation may be directed to Global Bondholder Services Corporation, the Information Agent, which can be contacted at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll-free). About First Data Headquartered in Greenwood Village, Colorado, First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/-- provides electronic commerce and payment solutions for businesses worldwide including those in New Zealand, the Netherlands and Mexico. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; receivables management solutions; electronic check acceptance services through TeleCheck; well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2 million ATM and retail locations. * * * As reported in the Troubled Company Reporter on Sept. 19, 2007, Moody's Investors Service assigned to First Data Corporation a B2 Corporate Family Rating and Ba3 rating to senior secured credit facilities related to its acquisition by Kohlberg, Kravis, Roberts & Co. The rating outlook for the new ratings is stable. Standard & Poor's Ratings Services lowered its corporate credit rating on Greenwood Village, Colorado-based First Data Corp. to 'B+' from 'BB+' and removed the rating from CreditWatch, where it was placed on April 2, 2007, with negative implications. The outlook is negative. Upon conclusion of its review of First Data Corp.'s new capital structure for the expected close of its leveraged buy-out transaction with Kohlberg Kravis Roberts & Co.'s, Fitch Ratings has taken these rating actions on FDC: Long-term Issuer Default Rating downgraded to 'B+' from 'BBB' and removed from Rating Watch Negative; US$2 billion senior secured revolving credit facility due 2013 rated 'BB/RR2'; and US$13 billion senior secured term loan B due 2014 rated 'BB/RR2'. The Rating Outlook is Stable. HOLLAND HOMES MBS 2003-1: Fitch Affirms Class D Notes at BB ----------------------------------------------------------- Fitch Ratings has upgraded one tranche and affirmed 13 tranches of the Holland Homes transactions, originated by DBV Levensverzekeringsma-atschappij B.V, after a satisfactory performance review. The upgrade of the class B notes from Holland Homes MBS 2000-1 reflects the satisfactory performance of the transaction through 2006 and 2007. Credit enhancement has increased steadily for the class A and class B notes. For the class C notes, as the reserve fund reached its target level and is now amortising in line with the notes, the CE remains at around 2%. Holland Homes Oranje MBS B.V. benefits from the Nationale Hypotheek Garantie guarantee, which covers losses remaining after the foreclosure process. Excess spread is available to redeem the notes if losses materialize. The reserve fund is currently at 0.62% and is expected to build to the required target level of 0.7% of the principal outstanding balance of the class A notes. Delinquencies remain low in the Holland Homes' transactions and display some of the lowest levels of arrears seen in Dutch transactions. Up to July 2007, arrears have not exceeded 1.02% of the outstanding portfolio balances. Furthermore, no losses have been reported to date. Currently for Holland Homes MBS 2000-1, there are 1.02% arrears in the zero- to one-month category and 0.15% in the one- to two-month category. All other arrears categories are at 0%. Annualized principal payment rates, which reflect movements in collateral balances, are comparatively low to other Dutch transactions, with a current annualized average of 9.96% for Holland Homes MBS 2000-1. The rating actions are: Stichting Holland Homes III: -- Class A: affirmed at 'AAA'; Outlook Stable -- Class B: affirmed at 'AA'; Outlook Stable -- Class C: affirmed at 'A'; Outlook Stable -- Class D: affirmed at 'BBB'; Outlook Stable Holland Homes MBS 2000-1 B.V.: -- Class A (XS0119750031): affirmed at 'AAA'; Outlook Stable -- Class B (XS0119750114): upgraded to 'AA+' from 'AA'; Outlook revised to Stable from Positive -- Class C (XS0119750460): affirmed at 'A'; Outlook Stable Holland Homes MBS 2003-1 B.V.: -- Class A1 (XS0182739853): affirmed at 'AAA'; Outlook Stable -- Class A2 (XS0182741164): affirmed at 'AAA'; Outlook Stable -- Class B (XS0182741594): affirmed at 'A'; Outlook Positive -- Class C (XS0182741750): affirmed at 'BBB'; Outlook Stable -- Class D (XS0182740430): affirmed at 'BB'; Outlook Stable Holland Homes Oranje MBS B.V.: -- Class A (XS0238851827): affirmed at 'AAA'; Outlook Stable -- Class B (XS0238855141): affirmed at 'A'; Outlook Stable Rating Outlooks for European Structured Finance tranches provide forward-looking information to the market. An Outlook indicates the likely direction of any rating change over a one- to two- year period. YUKOS FINANCE: Yukos Oil Completes Unit Sale to Promneftstroy ------------------------------------------------------------- OOO Promneftstroy took legal control of Yukos Finance N.V. from OAO Yukos Oil Co. after signing a notary act formalizing the transfer of the finance unit's shares to the former, Itar-Tass reports. As reported in the TCR-Europe on Sept. 13, 2007, Promneftstroy has fully paid for 242,399 shares of Yukos Finance after it won the auction to acquire the stake for RUR7.838 billion. Yukos Finance carried a RUR7,598,361,000 starting price and a RUR40 million bid increment. The winning bidder must deposit RUR1,519,672,200 as initial payment. According to Itar-Tass, the parties have notified Yukos Finance and a Dutch court of the completion of the sale. The parties have also instructed Yukos Finance to make relevant changes in its register of shareholders. Yukos Finance's main assets include: -- a 49% stake in Transpetrol, worth between US$100 million and US$200 million; and -- proceeds from a 54% stake in Lithuanian refinery Mazeikiu Nafta AB, worth almost US$1.5 billion. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. =========== R U S S I A =========== AGRICULTURAL MACHINERY: Asset Sale Slated for October 5 ------------------------------------------------------- N. Postnikov, the bidding organizer for OJSC Agricultural Machinery, will open a public auction for the company's properties at 10:00 a.m. on Oct. 5 at: N. Postnikov Moskovskaya Str. 155A Orel Russia The case is docketed under Case No. A48-6602/05-16b. Interested participants have until Oct. 4 to deposit an amount equivalent to 10% of the starting price to: Settlement Account 40702810547170120017 Correspondent Account 30101810300000000601 BIK 045402601 TIN 5719002454 Bank Orlovskoe OSB 8595 Orel Mtsenskiy OSB 3862/058 Mtsensk Russia Bidding documents must be submitted to: N. Postnikov Moskovskaya Str. 155A Orel Russia The Debtor can be reached at: OJSC Agricultural Machinery Novosil Novosilskiy Orel Russia ALLIANCE COSMETIC: Court Names B. Mazenko as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Moscow appointed B. Mazenko as Insolvency Manager for CJSC Alliance Cosmetic. He can be reached at: B. Mazenko Post User Box 24 117042 Moscow Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-69242/06-103-1125B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Alliance Cosmetic Office 403 Ugreshskaya Str. 14 Moscow Russia BUILDER OF URAL-11: Creditors Must File Claims by Oct. 1 -------------------------------------------------------- Creditors of CJSC Builder of Ural-11 have until Oct. 1 to submit proofs of claim to: I. Marchevskaya Insolvency Manager Kombaynerov 34 614036 Perm Russia The Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-8666/2007-32-48-137. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: CJSC Builder of Ural-11 Pobedy Pr. 289 454000 Chelyabinsk Russia CEDAR LLC: Kemerovo Bankruptcy Hearing Slated for Jan. 17, 2008 --------------------------------------------------------------- The Arbitration Court of Kemerovo will convene at 1:45 p.m. on Jan. 17, 2008, to hear the bankruptcy supervision procedure on LLC Cedar. The case is docketed under Case No. A27-7274/2007-4. The Temporary Insolvency Manager is: V. Gusich Temporary Insolvency Manager Post User Box 3 Post Office 5 Mariinsk 652150 Kemerovo Russia The Court is located at: The Arbitration Court of Kemerovo Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: LLC Cedar Meliorativnaya Str. 4-2 Mariinsk 652150 Kemerovo Russia DMITROVSKIY CRYSTAL: Creditors Must File Claims by Oct. 1 --------------------------------------------------------- Creditors of OJSC Agro-Industrial Association Agro-Company Dmitrovskiy Crystal have until Oct. 1 to submit proofs of claim to: I. Novikova Temporary Insolvency Manager Building 1 Moskovskoe Shosse, 137 302025 Orel Russia The Arbitration Court of Orel will convene at 10:00 a.m. on Dec. 5 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A48-1931/07-20b. The Court is located at: The Arbitration Court of Orel Gorkogo Str. 42 302000 Orel Russia The Debtor can be reached at: OJSC Agro-Industrial Association Agro-Company Dmitrovskiy Crystal Lubyanka Dmitrovskiy Orel Russia EAR LLC: Creditors Must File Claims by Nov. 1 --------------------------------------------- Creditors of LLC Ear have until Nov. 1 to submit proofs of claim to: D. Glushkov Insolvency Manager P. Zheleznyaka Str. 17 660133 Krasnoyarsk Russia The Arbitration Court of Krasnoyarsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A33-5648/2007. The Court is located at: The Arbitration Court of Krasnoyarsk Lenina Str. 143 660021 Krasnoyarsk Russia The Debtor can be reached at: LLC Ear Shorsa Str. 8 Berezovka 662520 Krasnoyarsk Russia GRAN’-SERVICE CJSC: Creditors Must File Claims by Oct. 1 -------------------------------------------------------- Creditors of CJSC Gran’-Service have until Oct. 1 to submit proofs of claim to: S. Suvorov Temporary Insolvency Manager Post User Box 183 127018 Moscow Russia The Arbitration Court of Moscow will convene on Nov. 1 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A41-K2-5490/07. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Gran’-Service Papivina Str. 1/20 Klin 141600 Moscow Russia LENIN CJSC: Creditors Must File Claims by Nov. 1 ------------------------------------------------ Creditors of CJSC Named After Lenin (TIN 6413100479) have until Nov. 1 to submit proofs of claim to: V. Garchenko Insolvency Manager Muromtseva 1 650051 Kemerovo Russia The Arbitration Court of Novosibirsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A45-111/07/43/6. The Court is located at: The Arbitration Court of Novosibirsk Kirova Str. 3 630007 Novosibirsk Russia The Debtor can be reached at: CJSC Named After Lenin Acha Bolotninskiy 633351 Novosibirsk Russia MAGNITOGORSK IRON: To Construct Manufacturing Site in Ohio ---------------------------------------------------------- OAO Magnitogorsk Iron & Steel Works will build a manufacturing site for car body sheets in Ohio, U.S.A., Interfax News reports, citing CEO Viktor Rashnikov. MMK has allotted more than US$1 billion to construct the site, which will have an annual capacity of 1.5-million tons of cold- rolled automobile sheets, Interfax News relates. Ohio authorities offered MMK a site in Scioto County, close to Sun Coke Energy Inc. About Magnitogorsk Iron Headquartered in Magnitogorsk, Russia, OAO Magnitogorsk Iron and Steel Works -- http://www.mmk.ru/-- manufactures steel and accounts for about 20% of all steel products sold on the domestic market. MMK is a major fully integrated steel making complex encompassing all the required processes, from preparation of iron ore materials to high added value processing of steel. About half of the Company's output is exported worldwide. * * * In a TCR-Europe report on April 27, 2007, Moody's Investor's Service upgraded to Ba2 from Ba3 the corporate family rating for Magnitogorsk Iron and Steel Works as well as the rating on the company's guaranteed medium term notes issued by MMK Finance S.A. Moody's said the outlook for both ratings is stable. Magnitogorsk Iron carries BB Issuer Default and senior unsecured ratings from Fitch Ratings. The Outlook on the Issuer Default rating is Stable. The company also carries a BB Issuer Rating from Standard and Poor's. MDM BANK: Fitch Hikes IDR to BB on Prudent Liquidity Management --------------------------------------------------------------- Fitch Ratings has upgraded Russia-based MDM Bank's Long-term Issuer Default rating to 'BB' from 'BB-' and its National Long- term rating to 'AA-(rus)' from 'A+(rus)'. Fitch has also affirmed MDM's other ratings at Short-term IDR 'B', Individual 'C/D', Support '4' and Support Rating Floor 'B'. The Outlooks for both Long-term ratings are Stable. "The upgrade reflects lengthened tenor and improved diversification of MDM's foreign funding, which, together with prudent liquidity management during this period of problems in the international capital markets, is allowing the bank to relatively comfortably meet its refinancing needs," says Alexei Kechko, Associate Director of Fitch's Financial Institutions Group in Moscow. "The rating action also takes into account the bank's increased franchise and size, as well as strengthened corporate governance." MDM's ratings are also based on its adequate capitalization, sound management and risk management capabilities, satisfactory asset quality and sound performance. However, they also consider certain weaknesses in the Russian operating and banking environment, the potentially significant, although currently well managed, rollover risk associated with a high level of wholesale funding and the risks (credit, liquidity, etc.) inherent in the bank's rapid growth. MDM refinancing needs during the coming 12 months are moderate and are covered by a cash cushion the bank is running. Liquidity is prudently managed, and at end of first half of 2007 MDM had positive cumulative gaps across all time bands. MDM is the 10th-largest banking group in Russia, although market shares are modest. It is mainly a corporate bank, but is now pushing deeper into retail and SME banking. Following the 2006 restructuring, MDM now owns and consolidates all other financial companies of the MDM Group. MONEY LLC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------- The Arbitration Court of Perm commenced bankruptcy supervision procedure on LLC Money. The case is docketed under Case No. A50-6809/2007-B3. The Temporary Insolvency Manager is: A. Vyal’ Post User Box 137 Taganskaya Str. 51 620051 Ekaterinburg Russia The Court is located at: The Arbitration Court of Perm Lunacharskogo Str. 3 Perm Russia The Debtor can be reached at: LLC Money Volgodonskaya Str. 20A 614109 Perm Russia ORENDAR OJSC: Creditors Must File Claims by Nov. 1 -------------------------------------------------- Creditors of OJSC Orendar have until Nov. 1 to submit proofs of claim to: V. Ivanov Insolvency Manager Gaya Str. 23a 460000 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-5633/2007-14/GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: OJSC Orendar Matrosskiy Per. 12 460000 Orenburg Russia RASSKAZOVSKIY DIARY: Creditors Must File Claims by Oct. 1 --------------------------------------------------------- Creditors of OJSC Rasskazovskiy Diary have until Oct. 1 to submit proofs of claim to: R. Mochalin Temporary Insolvency Manager Office 205 Building 1 Permskaya Str. 11 107150 Moscow Russia The Arbitration Court of Tambov commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A64-3003/07-18. The Debtor can be reached at: OJSC Rasskazovskiy Diary Mira Str. 21 Rasskazovo 393250 Tambov Russia SECONDARY METAL: Bankruptcy Hearing Slated for Feb. 5, 2008 ----------------------------------------------------------- The Arbitration Court of Vladimir will convene at 1:30 p.m. on Feb. 5, 2008, to hear the bankruptcy supervision procedure on CJSC Secondary Metal. The case is docketed under Case No. A11-4563/2007-K1-117B/2B. The Temporary Insolvency Manager is: A. Alimov Post User Box 18 600005 Vladimir Russia The Court is located at: The Arbitration Court of Vladimir Oktyabrskiy Pr. 14 600025 Vladimir Russia The Debtor can be reached at: CJSC Secondary Metal Vladimir Russia SERVICE-CENTRE CJSC: Creditors Must File Claims by Oct. 1 --------------------------------------------------------- Creditors of CJSC Service-Centre (TIN 4303005340, KPP 430301001) have until Oct. 1 to submit proofs of claim to: S. Belorybkin Insolvency Manager Office 10 St. Khalturina Str. 2 610004 Kirov Russia The Arbitration Court of Kirov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-207/07-111/6. The Court is located at: The Arbitration Court of Kirov K-Libknekhta Str. 102 610017 Kirov Russia The Debtor can be reached at: CJSC Service-Centre Lugovaya Str. 1 Belaya Kholunitsa 613200 Kirov Russia SISTEMA JSFC: Shareholders Approve Proposed Share Split ------------------------------------------------------- The proposed split of the nominal value of JSFC Sistema's ordinary shares by 1,000 times has been approved by a majority of 99.98% of the votes cast at the Extraordinary General Meeting of its shareholders on Sept. 17, 2007. As a result of the share split, the company's share capital of RUR868,500,000 will now comprise 9,650,000,000 ordinary shares with a par value of RUR0.09 per share. In addition, the relevant amendments will be made to Sistema's Charter to reflect the changes in the company's share capital. About Sistema Sistema JSFC (LSE: SSA) -- http://www.sistema.com/-- is the largest private sector consumer services company in Russia and the CIS, with over 65 million customers. Sistema develops and manages market-leading businesses in selected service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media. Founded in 1993, the company reported revenues of US$7.5 billion for the first nine months of year 2006, and total assets of US$ 18.5 billion as at Sept. 30, 2006. Sistema's shares are listed under the symbol 'SSA' on the London Stock Exchange, under the symbol 'AFKS' on the Russian Trading System (RTS), and under the symbol 'SIST' on the Moscow Stock Exchange (MSE). * * * As reported in the TCR-Europe on Jan. 17, 2007, Fitch Ratings assigned Sistema Capital S.A.'s guaranteed debt issuance program a final B+ rating. The program, guaranteed by JSFC Sistema, has a maturity of 30 years and may issue up to US$3 billion. This rating action follows a review of the final terms and conditions, confirming information already received when Fitch assigned an expected rating of B+ on Dec. 12, 2006. In November 2006, Standard & Poor's Ratings Services raised its long-term debt rating to 'B+' from 'B' on the senior unsecured debt issued by Sistema Capital S.A. and OJSC Sistema Finance Investments, and on the senior secured debt issued by Sistema Finance S.A. All three companies are financing vehicles for Russian Telecommunications and industrials holding group Sistema (JSFC) (BB-/Stable/--), which guarantees the debt. TASHLINSKIY MEAT-PACKING: Creditors Must File Claims by Nov. 1 -------------------------------------------------------------- Creditors of LLC Tashlinskiy Meat-Packing Plant have until Nov. 1 to submit proofs of claim to: R. Khasanov Insolvency Manager Post User Box 2454 460051 Orenburg Russia The Arbitration Court of Orenburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A47-3672/07-14GK. The Court is located at: The Arbitration Court of Orenburg 9th January Str. 64 460046 Orenburg Russia The Debtor can be reached at: LLC Tashlinskiy Meat-Packing Plant Tashla Tashlinskiy Orenburg Russia TRUBCHEVSK-AGRO-PROM-SERVICE: Names V. Bakhturin to Manage Asset ---------------------------------------------------------------- The Arbitration Court of Bryansk appointed V. Bakhturin as Insolvency Manager for OJSC Trubchevsk-Agro-Prom-Service. He can be reached at: V. Bakhturin Post User Box 2 Mtsensk 303030 Orel Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A09-3772/07-34. The Court is located at: The Arbitration Court of Bryansk Room 602 Trudovoy Per. 5 Bryansk Russia The Debtor can be reached at: OJSC Trubchevsk-Agro-Prom-Service Komsomolskaya Str. 62 Trubchevsk Bryansk Russia YEKATERINBURG WINERY: Krasny Buys Assets for RUR180 Million ----------------------------------------------------------- Krasny Vyborzhets, a major producer of non-ferrous metals products, has won the auction for Yekaterinburg Winery's assets after rival bidder Alkotrade made an error in its paperwork, Interfax News reports, citing Eduard Chu, receiver for the winery. According to the report, Krasny Vyborzhets is acquiring the bankrupt winery's assets for RUR180 million, although it declined to discuss its plans for the Urals enterprise. Mr. Chu revealed it could take three months to complete all measures necessary for Sverdlovsk Region Court of Arbitration to end the bankruptcy proceedings against Yekaterinburg Winery, whose biggest creditor is Centrocredit Bank (Moscow). "The sale must be registered and the money be distributed among creditors," Mr. Chu was quoted by Interfax as saying. "Yekaterinburg Winery will be liquidated." The receiver, however, noted Alkotrade may contest the results of the auction. The Sverdlovsk region Agriculture Ministry, on the other hand, wants the tender winner to maintain the company profile, Interfax relates. YUKOS OIL: Completes Yukos Finance Sale to OOO Promneftstroy ------------------------------------------------------------ OOO Promneftstroy took legal control of Yukos Finance N.V. from OAO Yukos Oil Co. after signing a notary act formalizing the transfer of the finance unit's shares to the former, Itar-Tass reports. As reported in the TCR-Europe on Sept. 13, 2007, Promneftstroy has fully paid for 242,399 shares of Yukos Finance after it won the auction to acquire the stake for RUR7.838 billion. Yukos Finance carried a RUR7,598,361,000 starting price and a RUR40 million bid increment. The winning bidder must deposit RUR1,519,672,200 as initial payment. According to Itar-Tass, the parties have notified Yukos Finance and a Dutch court of the completion of the sale. The parties have also instructed Yukos Finance to make relevant changes in its register of shareholders. Yukos Finance's main assets include: -- a 49% stake in Transpetrol, worth between US$100 million and US$200 million; and -- proceeds from a 54% stake in Lithuanian refinery Mazeikiu Nafta AB, worth almost US$1.5 billion. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. ========= S P A I N ========= TELECONNECT INC: June 30 Balance Sheet Upside-Down by US$6.1 Mln ---------------------------------------------------------------- Teleconnect Inc.'s consolidated balance sheet at June 30, 2007, showed US$2.5 million in total assets and US$8.6 million in total liabilities, resulting in a US$6.1 million total stockholders' deficit. At June 30, 2007, the company's consolidated balance sheet likewise showed strained liquidity with US$950,000 in total current assets available to pay US$8.6 million in total current liabilities. The company incurred a net loss of US$1.3 million in the three months ended June 30, 2007, an increase from the net loss of US$603,000 reported in the same period last year, mainly due to lower revenues and an increase in selling, general and administrative expenses. Sales fell to US$980,000 from US$1.2 million. The decrease in sales is due to a decline in the volume of calls placed in 2007 as compared to 2006. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?2391 Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 3, 2007, Murrell, Hall, McIntosh & Co. PLLP expressed substantial doubt about Teleconnect Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Sept. 30, 2006. The auditor pointed to the company's recurring losses from operations and net capital deficiency. About Teleconnect Inc. Headquartered in Marbella, Spain, Teleconnect Inc. (OTC BB: TLCO.OB) was incorporated under the laws of the State of Florida on Nov. 23, 1998. The company is engaged in the telecommunication industry in Spain and offers telecommunications services for home and business use. =========== S W E D E N =========== ARVINMERITOR INC: Extends & Reduces Credit Facility --------------------------------------------------- ArvinMeritor Inc. entered into Amendment No. 4 to the Loan Agreement, dated as of Sept. 19, 2005, among ArvinMeritor, ArvinMeritor Receivables Corporation, the lenders party and SunTrust Robinson Humphrey Inc, relating to ArvinMeritor's U.S. accounts receivable securitization program. The purpose of the amendment is to: -- extend the program through Sept. 15, 2008; -- reduce the size of the facility to US$175 million from US$250 million; and -- adjust the concentration limits for receivables sold into the facility. Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs about 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. * * * As of Sept. 10, 2007, ArvinMeritor's US$175 million Convertible Senior Unsecured Notes is rated by Dominion Bond Rating Service at BB. DBRS also said that the trend is stable. The company also carries Moody's Investors Service's Ba3 corporate family rating. FORD MOTOR: Top U.S. Marketing Exec Francisco Codina Retires ------------------------------------------------------------ Ford Motor Company President and Chief Executive Officer Alan Mulally disclosed changes to his senior leadership team with the elevation of two key executives and the retirement of another. Francisco Codina, group vice president, North American Marketing Sales and Service, has elected to retire after 30 years with Ford Motor Company. His retirement is effective Nov. 1, 2007. Ford is beginning an immediate search for his replacement. "Cisco's passion and dedication to Ford will be missed," Mark Fields, executive vice president and president – The Americas, said. "Under Cisco's leadership, we began to stabilize our retail market share, energize our dealers, improve the resale value of our vehicles and speak with a more confident tone in our marketing." Mr. Codina joined Ford in 1977 and has served as vice president – Ford Customer Service Division, as well as general marketing manager for Ford Division, president of Ford of Argentina and a variety of sales and marketing assignments throughout the U.S. He was appointed group vice president, Marketing, Sales and Service in January 2006. John Parker, 59, has been elected an executive vice president of Ford Motor Company - Asia Pacific and Africa, one of the company's three core regional business units. Mr. Parker has been leading the region as a group vice president, based in Bangkok, Thailand. He will continue to have responsibility for all of Ford's operations and partnerships within Asia Pacific and Africa, including Mazda. He continues to report to Mr. Mulally. "John is a tremendous leader delivering solid results in the world's fastest growing and most dynamic region," Mr. Mulally said. "With John leading the way, Ford is poised for fast growth in Asia, as we work together to create the products that customers really want and value." Mike Bannister, chairman and chief executive officer of Ford Motor Credit Company, also has been elected an executive vice president of Ford Motor Company. Mr. Bannister, 57, will continue to be responsible for all operations of Ford Motor Credit worldwide, reporting to Don Leclair, executive vice president and chief financial officer. "Mike is an exceptional leader with tremendous business and financial acumen," Mr. Mulally said. "He is steering us to ever higher levels of excellence at Ford Motor Credit, which remains strategically core to our company's future. Under Mike's continued leadership, Ford Motor Credit is performing solidly through reduced costs, improved effectiveness and streamlined global operations." About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on July 30, 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. In June 2007, S&P raised the Issue Rating on Ford's senior secured credit facilities to B+ from B. ===================== S W I T Z E R L A N D ===================== ALTECH-PLAST JSC: Creditors' Liquidation Claims Due September 28 ---------------------------------------------------------------- Creditors of JSC ALTECH-PLAST have until Sept. 28 to submit their claims to: Innere Guterstrasse 4 6304 Zug Switzerland The Debtor can be reached at: JSC ALTECH-PLAST Zug Switzerland ARVO INNENAUSBAU: Obwalden Court Closes Bankruptcy Proceedings -------------------------------------------------------------- The Bankruptcy Service of Obwalden entered Aug. 21 an order closing the bankruptcy proceedings of JSC Arvo Innenausbau. The Bankruptcy Service of Obwalden can be reached at: Bankruptcy Service of Obwalden 6060 Sarnen OW Switzerland The Debtor can be reached at: JSC Arvo Innenausbau Steinhausstrasse 4 6056 Kagiswil Switzerland AUTOMATEN ALPNACH: Obwalden Court Closes Bankruptcy Proceedings --------------------------------------------------------------- The Bankruptcy Service of Obwalden entered Aug. 21 an order closing the bankruptcy proceedings of JSC Automaten Alpnach. The Bankruptcy Service of Obwalden can be reached at: Bankruptcy Service of Obwalden 6060 Sarnen OW Switzerland The Debtor can be reached at: JSC Automaten Alpnach Hofmatteliweg 1 6055 Alpnach Dorf Switzerland BAP INFORMATIK: Creditors' Liquidation Claims Due October 1 ----------------------------------------------------------- Creditors of JSC BAP Informatik have until Oct. 1 to submit their claims to: Kathrin Issler Liquidator Paulistrasse 93 8834 Schindellegi Switzerland The Debtor can be reached at: JSC BAP Informatik Steinmaur Dielsdorf ZH Switzerland CREADATA LLC: Creditors' Liquidation Claims Due October 3 --------------------------------------------------------- Creditors of LLC CreaData have until Oct. 3 to submit their claims to: Thomas Lutolf Liquidator Dorfstrasse 28 4665 Oftringen Zofingen AG Switzerland The Debtor can be reached at: JSC LLC CreaData Oftringen Zofingen AG Switzerland GRUPO GOURMET: Zug Court Starts Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC Grupo Gourmet on Aug. 14. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6301 Zug Switzerland The Debtor can be reached at: LLC Grupo Gourmet Bosch 108 6331 Hunenberg ZG Switzerland HOBBY-CENTER W. GSELL: Creditors' Liquidation Claims Due Oct. 1 --------------------------------------------------------------- Creditors of JSC Hobby-Center W. Gsell have until Oct. 1 to submit their claims to: JSC Micucci Treuhand Liquidator Romertorstrasse 1 8404 Winterthur ZH Switzerland The Debtor can be reached at: JSC Hobby-Center W. Gsell Winterthur ZH Switzerland ISM IMMOBILIEN: Aargau Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against LLC ISM Immobilien on Aug. 28. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Baden 5402 Baden AG Switzerland The Debtor can be reached at: LLC ISM Immobilien Milaim Bediju Shopping Center 13/2.2 8957 Spreitenbach Switzerland NOVE MARZO: Creditors' Liquidation Claims Due October 1 ------------------------------------------------------- Creditors of JSC Nove Marzo have until Oct. 1 to submit their claims to: Hauptstrasse 17 9053 Teufen AR Switzerland The Debtor can be reached at: JSC Nove Marzo Teufen AR Switzerland ZURIMATT JSC: Creditors' Liquidation Claims Due September 30 ------------------------------------------------------------ Creditors of JSC Zurimatt have until Sept. 30 to submit their claims to: Dr. Andreas Baumgartner Liquidator Dietrich, Baumgartner & Partner Sihlporte 3/Talstrasse 8021 Zurich Switzerland The Debtor can be reached at: JSC Zurimatt Zurich Switzerland ============= U K R A I N E ============= ARMA-INGINEERING LLC: Creditors Must File Claims by September 27 ---------------------------------------------------------------- Creditors of LLC Arma-Ingineering (code EDRPOU 34693125) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/491-b. The Debtor can be reached at: LLC Arma-Ingineering P.O. Box 189 01030 Kiev Ukraine AGRO-LADA LLC: Creditors Must File Claims by September 27 --------------------------------------------------------- Creditors of LLC Agro-Lada (code EDRPOU 30072315) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 10/213-07. The Debtor can be reached at: LLC Agro-Lada B. Hmelnitsky str., 6 Illintsy 22700 Vinnica Ukraine BONI LLC: Proofs of Claim Deadline Set September 27 --------------------------------------------------- Creditors of LLC Boni (code EDRPOU 32275264) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Poltava Zigin Str. 1 36000 Poltava Ukraine The Economic Court of Poltava commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 4/58. The Debtor can be reached at: LLC Boni Kosmicheskaya Str. 3 Kremenchuk Poltava Ukraine MALPENZA LLC: Creditors Must File Claims by September 27 -------------------------------------------------------- Creditors of LLC Malpenza (code EDRPOU 34514188) have until Sept. 27 to submit written proofs of claim to: Alexander Vozdvizhensky Liquidator a/b 1799 49027 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 15/141-07. The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Malpenza Panikakha Str. 2-b 49000 Dnipropetrovsk Ukraine MEM LLC: Creditors Must File Claims by September 27 --------------------------------------------------- Creditors of LLC Mem (code EDRPOU 32743776) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 45/38B. The Debtor can be reached at: LLC Mem Belousov str., 2a Constantinovka 85106 Donetsk Ukraine NIKOLAEV AGRICULTURAL: Proofs of Claim Deadline Set September 27 ---------------------------------------------------------------- Creditors of OJSC Nikolaev Agricultural Machinery-Technological Station (code EDRPOU 3033217) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 5/695/07. The Debtor can be reached at: OJSC Nikolaev Agricultural Machinery-Technological Station Heroes of Stalingrad Avenue 91 54025 Nikolaev Ukraine TAIR LLC: Creditors Must File Claims by September 27 ---------------------------------------------------- Creditors of LLC Tair (code EDRPOU 32936777) have until Sept. 27 to submit written proofs of claim to: Tatiana Rudenko Liquidator Lazurnaya Str. 50 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 5/635/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: LLC Tair Shevchenko Str. 61 Nikolaev Ukraine TRADE SERVICE: Proofs of Claim Deadline Set September 27 -------------------------------------------------------- Creditors of JSC Trade Service (code EDRPOU 22861027) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced the bankruptcy supervision procedure on the company on Aug. 13. The case is docketed under Case No. 15/613-b. The Debtor can be reached at: JSC Trade Service Nekrasovskaya Str. 6 Kiev Ukraine YUKO MOTORS: Creditors Must File Claims by September 27 ------------------------------------------------------- Creditors of LLC Yuko Motors (code EDRPOU 33558664) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 330/11b-06. The Debtor can be reached at: LLC Yuko Motors Sviatoshyn str., 40 Vishnevoe 08132 Kiev Ukraine TALISMAN OJSC: Creditors Must File Claims by September 27 --------------------------------------------------------- Creditors of OJSC Talisman (code EDRPOU 01558781) have until Sept. 27 to submit written proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 45/37B. The Debtor can be reached at: OJSC Talisman Ostrovsky str., 302 Constantinovka 85106 Donetsk Ukraine * Chadbourne & Parke's Kyiv Office Promotes Two Associates ---------------------------------------------------------- Chadbourne & Parke LLP has promoted two associates in its Kyiv office to international partners and has hired an additional four associates in the office. Oleg Mazur and Sergiy Onishchenko will become international partners, while the new associates are Vitaliy Artysh, Viktor Dovhan, Olena Repkina and Yuriy Voytsitskyi. "Oleg and Sergiy have proven themselves as skilled lawyers and business advisors for our clients in a range of practice areas," Charles O'Neill, Chadbourne managing partner, said. "They well deserve the expanded responsibilities of international partner." Chadbourne's Kyiv office plans for further expansion with a dditional new hires anticipated. The firm will soon move to a new location in Kyiv, enabling Chadbourne to double its office space there. The firm's Kyiv office represents multinational, foreign and local clients in large transactions in a variety of industries, including banking, oil exploration and refining, telecommunications, insurance, project and trade finance, pharmaceuticals and consumer products. Kyiv lawyers also advise clients on day-to-day legal issues in areas such as corporate organization and governance, mergers and acquisitions, privatizations, tax, real estate and litigation. "We are very pleased to have Vitaliy, Viktor, Olena and Yuriy joining the firm," Jaroslawa Johnson, Kyiv Office managing partner added. "They all have built strong legal reputations and will smoothly integrate into the work we're doing in the Kyiv office." Oleg Mazur specializes in finance, including capital markets (debt) securitizations, structured finance, loans, credit facilities, securities and foreign investment law. Prior to joining Chadbourne, he was a senior associate at Baker & McKenzie in Kyiv. Sergiy Onishchenko's practice focuses on general corporate law, international transactions, foreign investments and real estate finance. Mr. Onishchenko's experience includes representing clients in a variety of real estate transactions, structuring and negotiating acquisitions of enterprises in Ukraine, well as representing both lenders and borrowers in loan and equity financing. He has written several articles on topics such as administrative law and real estate. Prior to joining Chadbourne, Mr. Onishchenko taught Administrative Law at the Kharkiv Law Institute. He holds a law degree, with honors, from Kharkiv Law Institute and an LL.M. from Cornell Law School. Vitaliy Artysh joins Chadbourne from the business consulting firm of Munk, Andersen & Feilberg, where he was a senior lawyer and business development consultant. He advised domestic and international companies on foreign investments and real estate as well as on corporate, labor and import-export laws. He worked with many European Union companies on strategies to enter the Ukraine market. Mr. Artysh hold Honors Bachelors and Masters degrees from Ivan Franko National University of Lviv, Law Faculty. Viktor Dovhan joins Chadbourne from the Kyiv office of the Salans law firm, where he specialized in international trade and European Union law, as well as Ukrainian commercial and corporate law and real estate issues. Mr. Dovhan has particular experience advising on import/export operations and related commercial and customs issues. Mr. Dovhan holds a Specialist's degree in International Law from Ivan Franko National University of Lviv and a Candidate of Science degree in International Law from Taras Shevchenko National University of Kyiv, Institute of International Relations. Olena Repkina joins Chadbourne from Shevchenko Didkovskiy & Partners of Kyiv, where she was a senior associate. Her practice there concentrated on banking and finance, mergers and acquisitions, corporate law, securities, employment, and intellectual property. Ms. Repkina holds a Master's degree, with honors, from the Law Faculty of Taras Shevchenko National University of Kyiv. Prior to that, she held internships with the Kyiv Regional Prosecutor's Office and the Supreme Commercial Court of Ukraine. Yuriy Voytsitskyi comes to Chadbourne from the Salans law firm, where he was an associate in the Kyiv office. His practice focuses on corporate law, taxation and banking and finance. In addition to his work at law firms, Mr. Voytsitskyi has experience as a lawyer in the private sector and with a non- governmental organization dealing with economic and social issues. About Chadbourne & Parke LLP Headquartered in New York City, Chadbourne & Parke LLP -- http://www.chadbourne.com/-- is a law firm that provides a full range of legal services, including mergers and acquisitions, securities, project finance, private funds, corporate finance, energy, communications and technology, commercial and products liability litigation, securities litigation and regulatory enforcement, special investigations and litigation, intellectual property, antitrust, domestic and international tax, insurance and reinsurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. Major geographical areas of concentration include Central and Eastern Europe, Russia and the CIS, and Latin America. The firm has offices in New York, Washington, DC, Los Angeles, Houston, Moscow, St. Petersburg, Warsaw (through a Polish partnership), Kyiv, Almaty, Tashkent, Beijing, and a multinational partnership, Chadbourne & Parke, in London. =========================== U N I T E D K I N G D O M =========================== BRITISH AIRWAYS: Increases US Flights in Summer 2008 ---------------------------------------------------- British Airways plc's summer 2008 route network focuses on increased US flights from Heathrow following the EU-US "Open Skies" aviation treaty which comes in to effect in March 2008. The airline's daily flight to Dallas Fort Worth and double daily flights to Houston will move from Gatwick to Heathrow airport from March 30, 2008. In addition, the airline will increase frequencies from Heathrow to New York JFK, Seattle and Washington and from Gatwick to Orlando. In order to accommodate these changes, the airline is suspending flights between Heathrow and Detroit from March 30, 2008. Flights to Algiers that currently operate from Gatwick will move to Heathrow to ensure that the airline's oil and gas destinations in North Africa and the US are still linked through the same airport. Warsaw flights will move from Heathrow to Gatwick. Both changes are effective from March 30, 2008. In addition, there will be a new shorthaul route from Gatwick to Genoa in Italy starting on April 4, 2008 with daily flights. The airline is also making a change to its network for the winter 2007 season. From October 28, 2007, passengers traveling from Heathrow to Harare with British Airways will be routed via Johannesburg and then on to Harare with our franchise partner Comair. Direct services to Harare from Heathrow will be suspended from the same date. "We're taking advantage of the opportunities provided by Open Skies to further enhance our market leading network from London to the United States. Next summer, we will offer our customers 41 daily flights to 18 destinations across the US," Robert Boyle, British Airways' commercial director, said. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As reported in the TCR-Europe on Aug. 16, 2007, Moody's Investors Service upgraded the senior unsecured rating of British Airways plc to Ba1, one notch lower than the Corporate Family Rating (upgraded to Baa3, stable outlook), reflecting the subordination of unsecured debt to a substantial portion of secured debt. The debt instruments affected by the rating action are: -- GBP100 million 10.875% senior unsecured notes due 2008 to Ba1 from Ba2; -- GBP250 million 7.25% senior unsecured notes due 2016 to Ba1 from Ba2; -- US$115 million 5.25% and US$85 million 7.625% senior unsecured industrial revenue notes due 2032 to Ba1 from Ba2; -- EUR300 million 6.75% perpetual guaranteed preferred securities to Ba2 from Ba3 (issued by British Airways Finance (Jersey) L.P.). BUSINESSF1 MAGAZINE: Royal Court Upholds Winding Up Petition ------------------------------------------------------------ The Royal Courts of Justice in London placed BusinessF1 Magazine Ltd. (Company Number 4637219) in receivership on Sept. 5, 2007, upholding Anthony John Purnell's petition to wind up the company, Energy Efficient Motorsport online reports. According to eems online, Mr. Purnell, the former team principal of Jaguar Racing Formula One team and a creditor of BusinessF1, won a libel case against the company and its editor in May 2006. The award of GBP75,000 in damages was upheld at an appeal on April 2007, eems relates. Headquartered in London, England, BusinessF1 -- http://www.businessf1.com/-- is an international monthly publication for the business of Formula One. It is primarily about financing and management of the sport. CAR REALISATIONS: Creditors' Meeting Slated for Oct. 16 ------------------------------------------------------- Creditors of Car Realisations Ltd. (fka Country Artists Ltd.) will meet at 2:00 p.m. on Oct. 16 at: KPMG LLP 2 Cornwall Street Birmingham B3 2DL England Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims at noon on Oct. 15 at: M.J. Orton Joint Administrative Receiver KPMG LLP 2 Cornwall Street Birmingham B3 2DL England KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. EMI GROUP: Majority of Noteholders Tender 8.625% Senior Notes ------------------------------------------------------------- EMI Group Plc completed its offer to purchase for cash and solicitation of consents for its outstanding EUR425 million 8.625% senior notes due 2013, launched on Aug. 17, 2007. EMI received valid tenders of notes and deliveries of related consents from holders of around 96% of the principal amount of the outstanding notes as of Sept. 18, 2007 expiration date. Holders who tendered their notes before the consent payment deadline received the total consideration of EUR1,084.52 per EUR1,000 principal amount on Sept. 7, 2007. Holders who tendered their notes after the consent payment deadline but prior to the expiration date will be eligible to receive the purchase price of EUR1,054.52 per EUR1,000 principal amount on Sept. 21, 2007. Additionally, holders whose notes are purchased pursuant to the offer will receive any accrued but unpaid interest up to but not including the relevant payment date for the notes. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * As reported in the TCR-Europe on Aug. 6, 2007, Moody's Investors Service downgraded EMI Group plc's corporate family and senior debt ratings to B1 (from Ba3). All ratings remain under review for downgrade. Ratings downgraded to B1 (under review for further downgrade) are: EMI Group plc -- CFR and the ratings of the 8.25% GBP bonds due 2008 and the 8.625% Euro notes due 2013 Capitol Records Inc. (gtd. by EMI Group plc) -- the rating of the 8.375% guaranteed notes due 2009. All ratings remain under review for possible downgrade. Maltby has not yet signaled whether any of the rated instruments are expected to form part of EMI's capital structure to the extent they remain outstanding under their terms. Moody's ongoing review will now be focused on : (i) the new entity's capital structure and financial policies (ii) the relative position of the rated instruments within the new capital structure and their relative ranking amongst each other and relative to other classes of debt (to the extent they remain outstanding) and (iii) the outlook for the global music markets and the company's operational plans. In February 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-term rating was affirmed. At the same time, the long-term corporate credit rating and debt ratings were put on CreditWatch with negative implications. EMI GROUP: S&P Withdraws All Debt Ratings on Repayment ------------------------------------------------------ Standard & Poor's Ratings Services withdrew all debt ratings on U.K.-based music group EMI Group PLC and related entities Capitol Records Inc. and EMI Group Finance (Jersey) Ltd. The 'B+' long-term corporate credit ratings on all three entities and the 'B' short-term corporate credit ratings on EMI Group PLC remain on CreditWatch with negative implications, where they were placed on Feb. 5, 2007. The maintenance of the ratings on CreditWatch reflects uncertainties as to the group's funding structure and financial profile, after Maltby Ltd., a company formed at the direction of private equity house Terra Firma, bought about 93.5% of EMI's shares through a tender offer. The remaining 6.5% are likely to be acquired through a squeeze-out in the coming weeks. The withdrawal of the issue ratings reflects the repayment of all public debt through either tender offers or the exercise of call options. S&P expects the EUR17 million of bonds not tendered under EMI's EUR425 million bonds due 2013, to be repaid at the first call date in October 2008, through funds provided in advance by the company. The ratings on EMI were put on CreditWatch negative on Feb. 5, 2007, when the long-term rating stood at 'BB-', as a result of strong operating pressures. The ratings were lowered to 'B+' and left on CreditWatch after the company's board recommended the Maltby offer. The transaction will likely entail a substantial increase in leverage for EMI, as Maltby has secured GBP2.5 billion in term debt and a GBP350 million revolving credit facility. At March 31, 2007, EMI had GBP1.3 billion in gross unadjusted debt. "We will review our ratings on EMI as more information on the capital structure becomes available," said Standard & Poor's credit analyst Patrice Cochelin. "In case of a lack of sufficient information in the coming weeks, the ratings will be withdrawn." GENERAL MOTORS: Reaches General 'VEBA Trust' Framework with UAW --------------------------------------------------------------- General Motors Corp. and the United Auto Workers union have agreed on a general framework, over the weekend, creating a union-controlled health care trust fund, known as the Voluntary Employees Beneficiary Association or VEBA, various sources report citing people familiar with the talks. As reported in the Troubled Company Reporter on Sept. 19, 2007, GM, Ford Motor Co. and Chrysler LLC are believed to be pushing to finance the health care fund at no more than 70 cents on the dollar, which would create a trust fund in excess of US$60 billion, making it one of the largest investment funds in the country. The trust fund is expected to cut about US$95 billion from the car makers' retiree costs. In a letter to UAW members on Friday, cited by various sources, UAW President Ron Gettelfinger and his top GM negotiator, Cal Rapson, wrote that the bargainers were "continuing to make progress; however, we are pushing to accelerate the negotiating pace at all levels. It is our desire to reach an agreement without a strike, and we have demonstrated this by staying at the bargaining table up to this point. Nevertheless, we are continuing to evaluate our options on an hour-by-hour basis and we want to assure you that our efforts to reach an agreement in this manner should in no way be construed as removing any of our options." As previously reported in the TCR, GM and the UAW tentatively ceased VEBA fund negotiations on Thursday, after they couldn't agree on how much money GM would provide. Instead, the parties discussed other issues such as wage cuts for active employees, higher co-pays for active workers, cutting back on overtime, outsourcing of jobs not on the assembly line and lower second-tier wages for new hires. According to contract proposals, new hires would also get lesser health care benefits than current employees and won't get the pensions as current workers. The UAW is negotiating in behalf of 73,000 members who work for GM and 340,000 retirees and surviving spouses. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative, according to Moody's. INT'L RECTIFIER: Gets NYSE Notice Due to 10-K Filing Delay ---------------------------------------------------------- International Rectifier Corporation has received, as expected, a notice from the NYSE indicating that International Rectifier is not in compliance with the NYSE listed company manual Section 802.01E due to a delay in the filing of the company's annual report on Form 10-K for the fiscal year ended June 30, 2007. As reported in the Troubled Company Reporter-Latin America on Sept. 17, 2007, the company has filed with the U.S. Securities and Exchange Commission saying that it will be unable to timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2007. The delay arises from the previously disclosed investigation being conducted by the Audit Committee of the Board of the Directors, and the reconstruction and restatement of financial statements and other matters described in the company's public filings with the Securities and Exchange Commission. The company plans to file its Form 10-K for the fiscal year ended June 30, 2007 as promptly as practicable following completion of these matters. The company's shares remain listed on the NYSE and the company intends to cooperate with the procedures communicated to the company by the NYSE. International Rectifier Corporation -- http://www.irf.com/-- (NYSE:IRF) is a world leader in power management technology. IR's analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Leading manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. The company has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2007, Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on International Rectifier Corp. remains on CreditWatch with negative implications. MISYS PLC: Partners with SAP to Provide Global Banking Software --------------------------------------------------------------- Misys plc and SAP AG disclosed an agreement to deliver integrated solutions for the global banking industry. This aims to provide banks with a broad set of solutions from one source, helping them reduce complexity, grow revenue, increase flexibility and lower costs. Banks are looking for fewer, more strategic vendor relationships. The strength of SAP applications and its platform for banks combined with Misys’ domain expertise and leading position in the banking software sector will bring banks a rich technology platform and range of solutions available in the market today. Under this agreement, Misys and SAP will work together on an integrated universal banking solution, based on Misys BankFusion that will run on the SAP NetWeaver(R) platform. Misys and SAP will look at integrating SAP components, such as general ledger, into Misys BankFusion. It is intended that the universal banking solution will be jointly marketed by both companies. In addition, the award-winning Misys Trade Portal and Misys TI Plus 2.0 will be endorsed by SAP to work with the existing SAP for Banking solution portfolio to offer banks a complete end-to- end solution, enabling market-leading trade services dedicated to a bank’s trade finance requirements. The last element of the collaboration is the integration of SAP® Customer Relationship Management (SAP CRM) into the Misys retail banking solution set to enhance capabilities for customer- oriented processes such as targeting, attraction and retention. Mike Lawrie, Misys plc Chief Executive said: “A key part of our strategy is developing winning partnerships, and this is a powerful combination that brings together best-of-class solutions to build an offering that is unique in the marketplace. This allows us to reach markets that we have not been able to reach previously and will enable us to deliver results for new and existing customers. The application know- how and market presence from SAP combined with Misys’ domain expertise and market-leading position in banking software will enable global banks to get the best technology and a broader set of solutions from us.” “This partnership is a fine example of SAP’s long term strategy of co-innovation,” said Leo Apotheker, deputy CEO, member of the executive board and president, Global Customer Solutions and Operations, SAP AG. “It includes key aspects to enhance the SAP platform and add value to a bank without creating IT complexity. The deployment of leading partner solutions on SAP software and the SAP platform creates a win for banks by bringing together the best of two worlds. Co-innovation with a strategic partner like Misys is an important element in SAP’s growth in the banking sector and demonstrates our long-term commitment and investment in this market.” The partnership between Misys and SAP is effective immediately although there is no material financial impact expected this calendar year. Headquartered in the United Kingdom, Misys PLC -- http://www.misys.com/-- provides industry-specific software serving the international banking and healthcare industries and the U.K. general insurance industry. At May 31, 2007, the company’s balance sheet showed GBP567.2 million in total assets, GBP570.6 million in total liabilities and GBP3.4 million in stockholders’ deficit. The company’s May 31 balance sheet also showed strained liquidity with GBP294.6 million in total current assets available to pay GBP372.4 million in total liabilities coming due within the next 12 months. MSSAL LTD: Brings In Liquidators from Tenon Recovery ---------------------------------------------------- Matthew Colin Bowker and David Antony Willis of Tenon Recovery were appointed joint liquidators of Mssal Ltd. on Sept. 11 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery 33 George Street Wakefield WF1 1LX England NASDAQ STOCK: Moody's May Lift Ba3 Ratings After Review ------------------------------------------------------- Moody's Investors Service placed the Ba3 corporate family rating of Nasdaq Stock Market Inc., on review for upgrade. This action follows Nasdaq's agreement to sell a major portion of its common stock investment in the London Stock Exchange to Borse Dubai and reduce debt, as well as the potential business combinations between Borse Dubai, OMX AB and NASDAQ. The sale of the LSE investment is a stand-alone component of a complex series of transactions. It is not contingent upon the rest of the transactions being completed, is expected to close shortly and the proceeds will be used to repay NASDAQ's existing rated bank debt. Accordingly, Moody's will withdraw its ratings on this bank debt upon repayment. Moody's said that after this bank debt repayment occurs, NASDAQ's credit metrics will be substantially improved. However, this is expected to be temporary given the debt that will be raised to finance the cash component of NASDAQ's OMX purchase. Moody's said the review of NASDAQ's corporate family rating will focus on several factors. The review will examine the long-term strategic opportunities and execution risks presented by the combination of the NASDAQ and OMX franchises. Additionally, Moody's will consider NASDAQ's credit metrics, financial policy and appetite for leverage in the future. Finally, Moody's will assess the implications of Borse Dubai's significant ownership stakes in both NASDAQ and the London Stock Exchange should all components of the proposed series of transactions be completed. Given the complexity and uncertainty of closing this series of transactions, Moody's expects a ratings review period of roughly six months. These rating actions were taken on NASDAQ: -- Ba3 Corporate Family Rating placed on review for upgrade These ratings were confirmed and will be withdrawn on repayment: -- US$750 million six-year Senior Term Loan B Facility at Ba3; -- US$75 million, five-year Revolving Credit Facility at Ba3; and -- US$335 million six-year Term Loan C Facility at Ba3. NASDAQ Stock Market, Inc. operates a leading US stock exchange and reported earnings of US$74.4 million for the six months ending June 30, 2007. NEWFIELD EXPLORATION: Sells UK Interests to Centrica for US$486M ---------------------------------------------------------------- Newfield Exploration Company has signed the purchase and sale agreement to sell all of its interests in the U.K. North Sea to Centrica plc, the owner of British Gas, for US$486.4 million. The sale includes: -- an 85% interest in the Grove Field; -- an 80% interest in the undeveloped Seven Seas discovery; and -- an interest in about 200,000 net acres located in the Southern Gas Basin. The Grove Field commenced production in April 2007. The sale, which is subject to U.K. government approvals, is expected to close in the fourth quarter of 2007. This marks a complete exit by the company from the North Sea. Jefferies Randall & Dewey acted as financial advisor for Newfield in this transaction. About Centrica plc Headquartered in Windsor, Berkshire, Centrica plc (LON:CNA) -- http://www.centrica.co.uk/-- is focused on securing and delivering energy and offering a range of home and business energy solutions. The company's activities include finding and producing gas predominantly in the United Kingdom and it has acquired license blocks in Norway, and north and west Africa. It is a gas and electricity retailer and supplier for the residential and commercial sectors. It also provides central heating, gas appliance installation and maintenance. The company's segments are British Gas Residential, British Gas Business, British Gas Services, Centrica Energy, Centrica Storage, Centrica North America and Europe. About Newfield Exploration Company Headquartered in Houston, Texas, Newfield Exploration Company (NYSE: NFX) -- http://www.newfld.com/-- engages in the exploration, development, and acquisition of crude oil and natural gas properties in the United States. The company was founded in 1988. Newfield has locations in China, Malaysia and the United Kingdom. * * * As of June 25, 2007, Newfield Exploration Company continues to carry Fitch's BB+ long term issuer default rating. Fitch rates the company's bank loan debt and senior unsecured debt at BB+ while its senior subordinate rating is at BB-. The outlook remains stable. At the same time, the company also bears Moody's Investor Services' Ba2 rating on long term corporate family and probability of default, Ba1 rating on senior unsecured debt, Ba3 rating on senior subordinate, and B1 rating on preferred stock. The outlook is stable. The company also continues to carry Standard & Poor's BB+ long term foreign and local issuer debt ratings. The outlook remains stable. NORTEL NETWORKS: Names Joel Hackney to Lead Enterprise Solutions ---------------------------------------------------------------- Nortel Networks Corp. has appointed Joel Hackney as the company's president for enterprise solutions, effective immediately. This appointment reflects Nortel's stated objective of accelerating the strong momentum in its Enterprise business. "Joel Hackney is a high-energy, results-oriented leader with a proven track record of leading and growing businesses. He is widely recognized for operational excellence and speed of execution," Mike Zafirovski, president and chief executive officer of Nortel, said. "Joel is absolutely the right person to further accelerate the momentum in Nortel's Enterprise business that will be noticeable to customers, channel partners - and our competition." "Now is the time for Nortel to take its Enterprise to the next level, build on our momentum and take a stronger leadership position in the market. Joel and the team will push the Enterprise business to new heights by leveraging world-class partnerships with companies like Microsoft and IBM, as well as the leading technology innovations that are gaining rapid traction in the market," Mr. Zafirovski added. Over the past year, Nortel has built a solid base for its Enterprise business. As previously reported, second quarter 2007 revenues were US$590 million, representing an increase of 23 percent over the same period last year, and the fourth consecutive quarter of year-over-year growth. "The industry is in need of choice in the Enterprise market – real competition that will drive new innovation and meet rapidly changing customer needs," Mr. Hackney said. "We will increase our investments in Enterprise and accelerate our pace of execution. We will create best-in-class, go-to-market capability. And we will deliver solutions that make it much simpler for our customers to seize the opportunities of a hyperconnected world. Stay tuned." In his previous role, Mr. Hackney was Nortel's Senior Vice President, Global Operations and Quality. In addition to his Nortel experience, he has 14 years of global leadership experience at GE, including leadership of a billion dollar product division with 7,000 employees. After two decades of service to the company, Steve Slattery, the incumbent President of Enterprise Solutions, has decided to leave the company, effective Oct. 1, 2007. The company thanks Steve for his valuable contribution to its CDMA, Wireline and Enterprise businesses over the years and wishes him much success in his future endeavors. Joe Flanagan Appointed Senior Vice President Global Operations Joe Flanagan, who was previously the Vice President, Global Fulfillment, has been appointed Senior Vice President, Global Operations and will be charged with driving world-class results in the company's customer satisfaction, supply chain and order management operations. "Over the past year, Joe has made important progress simplifying customer order placement with 'touchless' orders, improving billing timeliness, standardizing process and metrics, and building a future-state supply chain architecture," Mr. Zafirovski said. "In his new and expanded role, he will accelerate the pace of change and make an even stronger contribution to Nortel's execution capabilities and operational excellence. The mandate is critical to our turnaround, and the leader we have chosen a proven results-driven executive." Mr. Hackney, Mr. Flanagan and the operations organization have made significant progress advancing Nortel's business transformation initiatives, including more than 100 Lean Six Sigma projects, and have spearheaded Nortel's improvements in quality and responsiveness. With a strong leadership team in place, Mr. Flanagan will build on the strong progress made to date and accelerate the pace of progress in Global Operations. In addition to his accomplishments at Nortel, Mr. Flanagan is a skilled leader with 13 years experience at GE where he held positions of increasing responsibility, including the General Manager of Operations for GE Consumer & Industrial in Europe, Middle East and Africa (EMEA). About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (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 Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * On March 27, 2007, Moody's Investors Service affirmed Nortel Networks' existing ratings, including its B3 corporate family rating, and assigned a B3 rating to the proposed US$1 billion convertible senior unsecured notes offering. Proceeds of the offering will be used to refinance a portion of the US$1.8 billion in 4.25% convertible notes due in 2008 when they become payable at par. Moody's said the outlook remains stable. On March 26, 2007, Standard & Poor's Ratings Services assigned its 'B-' debt rating to Canada-based Nortel Networks Corp.'s proposed US$1 billion senior unsecured convertible notes, which will consist of two tranches of USUS$500 million, maturing in 2012 and 2014, respectively. Proceeds from the convertible notes will be used to partially refinance NNC's US$1.8 billion senior unsecured convertible notes due Sept. 1, 2008, and therefore the overall debt 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). DBRS says 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. SCOTTISH RE: Paying US$0.4531 Per Share Dividend on Oct. 15 ----------------------------------------------------------- Scottish Re Group Limited's Board of Directors has declared a cash dividend of US$0.4531 per Perpetual Preferred Share outstanding to be paid on Oct. 15, 2007 to Perpetual Preferred Share shareholders of record as of the close of business on Sept. 28, 2007. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. On June 30, 2007, Scottish Re reported total assets of US$13.6 billion and shareholder's equity of US$1.2 billion. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 27, 2007, Moody's Investors Service affirmed the ratings of Scottish Re Group Limited, with the outlook changed to stable from positive, including its Senior unsecured shelf of (P)Ba3; its subordinate shelf of (P)B1; its junior subordinate shelf of (P)B1; its preferred stock of B2; and its preferred stock shelf of (P)B2. SKYEPHARMA PLC: June 30 Balance Sheet Upside-Down by GBP55.1 Mln ---------------------------------------------------------------- Skyepharma PLC released consolidated financial results for the six months ended June 30, 2007. The continuing operations (being the Group excluding the Injectable Business) achieved revenues of GBP19.7 million in the first half of the year, 8% below the GBP21.4 million reported for the same period in 2006. This reduction was primarily due to exchange rate fluctuations. Revenues included royalty income from approved products of GBP8.2 million (H1 2006: GBP9.3 million). Half of the GBP1.1 million decrease of royalty income was due to exchange translation effects and the balance largely arose from reduced sales and royalty rates following the entry of generic competition to Xatral(R) OD in Europe. The continuing operations incurred an operating loss of GBP8.8 million (H1 2006: loss of GBP11.2 million), a reduction of 19%. The loss was after charging GBP13.8 million (H1 2006: GBP14.2 million) for internally funded research and development, mainly on FlutiformTM. After net finance costs, the continuing operations incurred a loss before tax of GBP14.1 million (H1 2006: GBP15.8 million). The disposal of the Injectable Business (now called Pacira Pharmaceuticals Inc.) was completed on March 23, 2007. The loss after tax of the Injectable Business was GBP4.4 million in the period from Jan. 1, 2007 to March 23, 2007 (in the first half of 2006 its loss after tax was GBP11 million) which is reported in the result from discontinued operations. Following the impairment of goodwill of GBP37 million in 2006, the residual loss on sale of the Injectable Business was GBP1 million, included as an exceptional loss from discontinued operations. The net result for the continuing operations after finance charges and tax was a loss of GBP14.2 million (H1 2006: GBP16 million). The loss per share from continuing operations was 1.8 pence (H1 2006: loss per share of 2.1 pence). As at June 30, 2007 there were 814,988,636 ordinary 10 pence shares in issue. In the first half of 2007 there was a net cash outflow from operating activities of GBP11.8 million, compared with GBP2.3 million in the first half of 2006. During the year the Group received net proceeds on the disposal of the Injectable Business of GBP4.6 million, and receipts (net of costs) from the share issue and loan from CRC of GBP14.8 million and GBP28.5 million respectively. The Group paid GBP4.9 million of interest in H1 2007, mainly relating to the convertible bonds. Interest received on cash deposits amounted to GBP1.2 million. As at June 30, 2007 SkyePharma had cash and cash equivalents of GBP41.4 million, compared with GBP11.9 million as at Dec. 31, 2006. The increase in cash is primarily due to the draw down on the CRC loan and receipt of the GBP14.8 million net proceeds from the placing which took place in March 2007. In addition to the net cash, SkyePharma had GBP7 million of undrawn facilities as at June 30, 2007, giving total liquid funds available of GBP48.4 million The Group balance sheet as at June 30, 2007, shows GBP55.1 million in total shareholders' deficit, compared with a GBP48.4 million stockholders' deficit at Dec. 31, 2006. The reduction in net equity has arisen mainly due to the GBP19.6 million loss from continuing and discontinued operations. Paul Capital Finance In March 2007, in conjunction with the disposal of the Injectable Business, the Group renegotiated its agreements with Paul Capital from a share of royalties of certain products into a fixed amortizable note of US$92.5 million (GBP46.1 million) with up to an additional US$12.5 million (GBP6.2 million) payable if worldwide sales of DepoDurTM (a product of the Injectable Business) reach certain thresholds. The Note is repayable in accordance with an amortization schedule through to 2015. The Injectable Business has been sold on the basis that it retains responsibility to Paul Capital for its existing obligations to make payments based on sales of DepoCyt(R) and DepoDurTM and, to the extent that payments are made in respect of these, the continuing Group's liability under the Note will be reduced accordingly. The amount of the Continuing Group's liability therefore depends on estimates of the sales of DepoCyt(R) and DepoDurTM by the Injectable Business, now called Pacira Pharmaceuticals Inc. In August 2007 it was announced that EKR Therapeutics, Inc. had acquired the marketing and distribution rights for DepoDurTM for North, South and Central America from Pacira Pharmaceuticals. Sales of DepoCyt(R) continued to be steady in the first half of 2007. At June 30, 2007 the net present value of the liability (net of anticipated payments by Pacira Pharmaceuticals to Paul Capital), discounted at an annual rate of 11.2%, is US$43.9 million (GBP22 million) compared with the value of US$47.6 million (GBP24.3 million) for the previous agreements included in the Dec. 31, 2006 balance sheet. The finance charge in respect of the renegotiated agreements with Paul Capital is substantially less than the previous agreements. CRC Finance In December 2006 SkyePharma announced an agreement with a specialist lending entity domiciled in Ireland and advised by Christofferson Robb for a 10-year secured amortizing loan facility of approximately GBP35 million. The facility comprises initial commitments of US$35 million and EUR26.5 million repayable over 10 years based on a minimum amortization schedule. Half of the committed principal on each loan was drawn down in January 2007 and a further US$11.5 million and EUR9 million was drawn down in March 2007 to give an outstanding loan balance as of June 30, 2007 of GBP28.5 million. The remainder of the facility will be drawn down by December 2007. Outlook The Group is not expecting revenues in the second half of 2007 to be significantly different from the first half whereas costs are expected to ramp-up due to increased rate of development expenditure on FlutiformTM. Over the next 12 months it is expecting further country by country launches of Pulmicort(R) HFA-MDI and launches of Requip(R) Once-a-day, ZYFLO CRTM, LodotraTM and nisoldipine CR, which should lead to growth in revenues during 2008. The Group's objective remains to move into operating profit (before finance costs) during the course of 2008 and it reiterates its target to move into profit (after tax) in 2009. Going Concern Basis The Directors have reviewed the working capital requirements for the next twelve months, together with various available working capital and non-equity finance initiatives should these be necessary in the period prior to the anticipated approval of Flutiform in the second half of 2009. Following this review the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. "Substantial progress has been made in the first half to reshape the Group, focus the activity on oral and inhalation products, ensure that the Company has adequate financial resources to meet its objectives, and ensure the timely completion of the FlutiformTM Phase III program. Although there is an unexpected delay to the planned date for filing FlutiformTM in the US to the second half of 2008, the Board continues to have confidence in the potential for significant growth being created for shareholders in the coming years. This growth will arise from the commercialization of FlutiformTM by our partners, the continued contribution from the royalties of our eleven approved products, and the further development of our pipeline," Dr. Jerry Karabelas, non-executive chairman, said. Headquartered in London, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now 12 approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled, and topical delivery supported by advanced solubilization capabilities. * BOND PRICING: For the Week Sept. 17 to Sept. 21, 2007 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- Kommunal Kredit Austria AG 0.500 03/15/19 CDN 61.61 0.250 10/14/26 CDN 38.26 Republic of Austria 4.000 06/22/22 EUR 72.21 0.396 08/04/25 EUR 66.10 5.000 10/10/25 EUR 61.41 FINLAND ------- Muni Finance PLC 1.000 03/19/13 AUD 72.76 0.500 04/26/13 AUD 70.08 1.000 11/21/16 NZD 56.09 0.500 09/24/20 CDN 55.89 0.250 06/28/40 CDN 19.99 FRANCE ------ Accor S.A. 1.750 01/01/08 EUR 62.74 Alcatel S.A. 4.750 01/01/11 EUR 16.02 Altran Technologies S.A. 3.750 01/01/09 EUR 12.41 BNP Paribas 0.250 12/20/14 US$ 69.23 CAP Gemini S.A. 2.500 01/01/10 EUR 54.27 1.000 01/01/12 EUR 48.91 Club Mediterranee S.A. 3.000 11/01/08 EUR 66.59 4.375 11/01/10 EUR 54.06 FCC Rome Alliance Funding 2.256 01/08/21 EUR 72.96 Havas S.A. 4.000 01/01/09 EUR 10.80 Infogrames Entertainment S.A. 1.500 04/01/09 EUR 00.50 Ingenico 2.750 01/01/12 EUR 20.58 Maurel & Prom 3.500 01/01/10 EUR 21.83 Publicis Group 0.750 07/17/08 EUR 31.31 1.000 01/18/18 EUR 42.63 Rallye 3.750 01/01/08 EUR 51.40 Rhodia S.A. 0.500 01/01/14 EUR 44.07 Scor S.A. 4.125 01/01/10 EUR 2.26 Soc Air France 2.750 04/01/20 EUR 28.66 Soitec 4.625 12/20/09 EUR 13.33 Thomson (EX-TMM) 1.000 01/01/08 EUR 39.50 Valeo 2.375 01/01/11 EUR 48.09 Vivendi Universal S.A. 1.750 10/30/08 EUR 30.79 Wavecom S.A. 1.750 01/01/14 EUR 27.63 Wendel Invest S.A. 2.000 06/19/09 EUR 46.68 GERMANY ------- KfW Bankengruppe 0.500 10/30/13 AUD 67.86 0.500 12/19/17 EUR 65.86 5.000 05/23/20 EUR 74.53 1.250 07/07/20 EUR 72.55 1.250 07/29/20 EUR 72.96 6.000 07/21/25 EUR 68.19 5.000 09/01/25 EUR 69.94 8.000 08/10/30 EUR 66.06 Landeskreditbank Baden- Wuerttemberg Foerderbk 0.500 05/10/27 CDN 42.41 Landwirtschaftliche Rentenbank AG 1.000 03/29/17 NZD 56.08 GREECE ------ Hellenic Republic 0.628 07/13/20 EUR 66.44 Hellenic Republic 0.990 07/07/24 EUR 66.04 Hellenic Republic 6.000 07/06/25 EUR 72.28 ICELAND ------- Kaupthing Bank 6.500 02/03/45 EUR 68.94 IRELAND ------- Depfa ACS Bank 0.500 03/03/25 CDN 45.17 0.250 07/08/33 CDN 27.19 Irish Perm Plc 6.125 02/15/35 EUR 65.88 Magnolia Finance IV Plc 1.050 12/20/45 US$ 27.83 ITALY ----- Dexia Crediop S.p.A. 0.000 03/15/16 EUR 72.17 LUXEMBOURG ---------- Teksid Aluminum S.A. 12.375 07/15/11 EUR 42.38 NETHERLANDS ----------- ABN AMRO Bank N.V. 6.250 06/29/35 EUR 69.50 BK Ned Gemeenten 0.500 06/27/18 CDN 62.31 0.500 02/24/25 CDN 45.21 EM.TV Finance B.V. 5.250 05/08/13 EUR 6.02 Energy Group O/S 7.425 10/15/17 US$ 35.00 Gerling Global 3.500 08/16/21 EUR 62.52 Lehman Bros TSY B.V. 2.000 02/16/15 EUR 80.39 2.940 02/16/17 EUR 78.34 1.000 06/06/17 EUR 73.88 2.892 06/13/17 EUR 78.30 6.000 02/15/35 EUR 69.06 8.250 03/16/35 EUR 60.70 7.000 05/17/35 EUR 62.85 7.250 10/05/35 EUR 58.46 6.000 11/02/35 EUR 62.45 Ned Waterschapbk 6.000 06/01/35 EUR 70.93 6.500 08/15/35 EUR 65.82 Rabobank Groep N.V. 6.000 04/08/20 EUR 72.08 6.000 02/22/35 EUR 70.00 2.000 02/23/35 EUR 62.94 7.000 02/28/35 EUR 67.06 7.000 03/23/35 EUR 64.43 6.000 05/09/35 EUR 72.92 NORWAY ------ Kommunalbanken A.S. 0.500 02/07/13 AUD 70.88 SWEDEN ------ AB Svensk Export 0.500 03/27/13 AUD 70.42 SWITZERLAND ----------- UBS AG 1.000 01/25/12 NZD 74.74 1.000 02/27/12 NZD 74.34 1.000 03/28/12 NZD 73.89 1.000 06/28/12 NZD 72.76 1.000 07/30/12 NZD 72.46 UNITED KINGDOM -------------- Anglian Water Finance Plc 2.400 04/20/35 GBP 52.99 HBOS Treasury Services Plc 0.000 02/22/17 EUR 64.01 6.000 02/07/35 EUR 68.81 National Grid Gas Plc 1.754 10/17/36 GBP 43.34 1.771 03/30/37 GBP 43.28 Royal BK Scotland Plc 0.250 03/27/14 US$ 72.27 9.500 04/04/25 US$ 70.17 7.000 06/09/25 EUR 63.73 7.000 06/29/30 EUR 57.39 7.000 02/15/45 US$ 63.38 6.500 02/23/45 EUR 62.33 Wessex Water Finance Plc 1.369 07/31/57 GBP 28.81 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A. Godinez, and Pius Xerxes Tovilla, 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. 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