/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080130.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 Wednesday, January 30, 2008, Vol. 9, No. 21 Headlines A U S T R I A ART-DEKOBAU: Claims Registration Period Ends March 4 AUTOHAUS JELINEK: Claims Registration Period Ends February 5 G.D.T. GRABNER: Claims Registration Period Ends February 5 GERFRIED HASCHKE: Claims Registration Period Ends February 7 HGT HYDRO: Claims Registration Period Ends Feb. 5 JITKA BAU: Claims Registration Period Ends Feb. 5 MAGAUER LLC: Wels Court Orders Business Shutdown PABNEU REISINGER: Claims Registration Period Ends Feb. 4 SALASSIA HOLDING: Claims Registration Period Ends Feb. 7 SANDMEIER LOGISTIK: Claims Registration Period Ends Feb. 25 STECO LLC: Claims Registration Period Ends Feb. 7 B E L G I U M CHEMTURA CORP: Selling Oleochemicals Business to PMC Group POPE & TALBOT: Obtains Additional Waivers to DIP Agreement POPE & TALBOT: PwC Reports Completion of Sale of 3 Surplus Lands SOLUTIA EUROPE: Parent Concerns Cue S&P to Watch B Ratings G E R M A N Y A.P. MANAGEMENT: Claims Registration Period Ends Feb. 14 BAB MANSKE: Claims Registration Period Ends Feb. 15 C.A.T. WERBEAGENTUR: Claims Registration Period Ends Feb. 14 C & H BLOCKHAUS: Claims Registration Period Ends Feb. 11 COLORTEK SERVICES: Claims Registration Period Ends Feb. 13 CYPACC GMBH: Claims Registration Period Ends Feb. 15 DATA COM: Claims Registration Period Ends Feb. 14 HOTELGESELLSCHAFT ELBTALAUE: Claims Period Ends Feb. 25 IVB GMBH: Claims Registration Period Ends Feb. 11 MAB MASSIVHAUS: Claims Registration Period Ends Feb. 12 MEIN HAUS: Claims Registration Period Ends Feb. 12 MONEYPLUS BETEILIGUNGS: Claims Registration Period Ends Feb. 12 OTT GMBH: Creditors' Meeting Slated for Feb. 11 P.A.F.P. ALTENPFLEGEAUSBILDUNG: Claims Period Ends Feb. 21 PB CONSUMER: Moody's Rates EUR17.4 Mln Class E Notes at Ba2 PB CONSUMER 2008-1: S&P Rates EUR17.4 Mln Class E Notes at BB PB CONSUMER 2008-1: Fitch Rates EUR17.4 Mln Class E Notes at BB SCHONDELMAIER INNENAUSBAU: Creditors' Meeting Slated for Jan. 30 TAQUITOS GMBH: Claims Registration Ends Feb. 15 TISCHLEREI EITZMANN: Claims Registration Ends Feb. 15 WROBEL GESELLSCHAFT: Claims Registration Period Ends Feb. 11 ZDI INDUSTRIEVERBUND: Claims Registration Ends Feb. 15 I R E L A N D RITCHIE IRELAND: Hikes DIP Financing to US$4.5 Million I T A L Y ALITALIA SPA: Deutsche Lufthansa May Bid for Malpensa Slots ALITALIA SPA: Cargo Traffic Down 7.8% in December 2007 PARMALAT SPA: Auditor Says Ex-CFO Alerted on Accounting Hole K A Z A K H S T A N ALEKSA IKAR: Proof of Claim Deadline Slated for Feb. 27 CENTRALNOYE GASOSNABJENIYE: Claims Period Ends Feb. 26 GALILEO KAZAKHSTAN: Claims Filing Period Ends Feb. 26 GUNEL PVC: Creditors' Claims Due on Feb. 26 KOSTANAISBYTENERGO LLP: Claims Registration Ends Feb. 22 MERIDIAN CAPITAL: Creditors Must File Claims by Feb. 26 PETROTORG LLP: Claims Filing Period Ends Feb. 26 SASA INTERNATIONAL: Creditors' Claims Due on Feb. 22 K Y R G Y Z S T A N ROOK-ENERGY LLC: Creditors Must File Claims by Feb. 15 N E T H E R L A N D S DUTCH MBS XI: S&P Puts BB-Rated Class D Notes on Watch Positive HEXION SPECIALTY: Extends Huntsman-Merger Termination to July 4 KONINKLIJKE AHOLD: Posts EUR6.6 Bln Net Sales in 4th Qtr 2007 N O R W A Y NORSKE SKOGINDUSTRIER: Weak Prospects Cue S&P's BB Ratings NORSKE SKOGINDUSTRIER: Refutes S&P's BB Credit Rating Level R U S S I A COMSTAR-UNITED: To Build NGN Network in Ukraine MOSCOW BANK: Moody's Changes Outlook on B1 Ratings to Positive S W I T Z E R L A N D ARCOS TREUHAND: Creditors' Liquidation Claims Due by Feb. 6 BIZNESS LLC: Creditors' Liquidation Claims Due by Feb. 6 BSH BERGER: Creditors' Liquidation Claims Due by Feb. 6 ETS ENGEL: St. Gallen Court Starts Bankruptcy Proceedings GONDA INVEST: Creditors' Liquidation Claims Due by Feb. 6 MEDIA-TREND JSC: Creditors' Liquidation Claims Due by Feb. 6 RESTAURANT NEUHOF: Berne Court Starts Bankruptcy Proceedings TEMPUS WATCH: Creditors' Liquidation Claims Due by Feb. 5 T U R K E Y VESTEL ELEKTRONIK: Weak Performance Cues Moody's to Cut Ratings U K R A I N E AKTIV LLC: Proofs of Claim Deadline Set Feb. 8 ASTA-ELIT LLC: Creditors Must File Claims by Feb. 8 COMSTAR-UNITED: To Build NGN Network in Ukraine KUYBISHEV CREAMERY: Creditors Must File Claims by Feb. 8 MAKEYEVKA PRODUCTION: Creditors Must File Claims by Feb. 8 ORBITA LLC: Proofs of Claim Deadline Set Feb. 8 SAMBOR MOTORCAR 24667: Creditors Must File Claims by Feb. 8 SKADOVSK MOTORCAR 16544: Proofs of Claim Deadline Set Feb. 8 STIR LLC: Creditors of Must File Claims by Feb. 8 U N I T E D K I N G D O M ARNOTT & SPURRELL: Claims Filing Period Ends March 1 BATQUEST LTD: M. H. Abdulali Leads Liquidation Procedure BAUSCH & LOMB: Names Gerald M. Ostrov as Chairman and CEO BAUSCH & LOMB: Acquiring Eyeonics Won't Affect S&P's Rating CHALLENGER SYNDICATESHIPS: Appoints Administrators from Begbies CHRYSLER LLC: Offers Compensation Packages to Hourly Workers D K KITCHENS: Brings In Liquidators from Tenon Recovery DOLCIS LTD: Pays Equity Backers Before Calling In Administrators EMAP PLC: S&P Keeps B Credit Ratings on Watch Developing ENRON CORP: High Court Refuses to Review Enron Investors' Case ENRON CORP: Retrial for Two Ex-Merrill Lynch Executives Delayed ENRON CORP: Seeks US$9 Mln in Remedies from Hewitt Associates F L ALUMINIUM: Calls In Liquidators from Moore Stephens HEATFAST MECHANICAL: Appoints Liquidators from Mazars NEW FOREST: Claims Filing Period Ends March 1 NORTHERN ROCK: FSA Fails as Regulator, Treasury Committee Says NORTHERN ROCK: Cerberus and Five Mile Eye Equity Stake UK BAKERIES: Creditors' Meeting Slated for Feb. 8 ********* ============= A U S T R I A ============= ART-DEKOBAU: Claims Registration Period Ends March 4 ---------------------------------------------------- Creditors owed money by LLC Art-Dekobau (FN 239249m) have until March 4, 2008, to file written proofs of claim to court- appointed estate administrator Helmut Platzgummer at: Dr. Helmut Platzgummer c/o Dr. Wolfgang Leitner Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Fax: 533 19 39 39 E-mail: helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:15 p.m. on March 18, 2008, 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 Dec. 14, 2007 (Bankr. Case No. 6 S 164/07w). Wolfgang Leitner represents Dr. Platzgummer in the bankruptcy proceedings. AUTOHAUS JELINEK: Claims Registration Period Ends February 5 ------------------------------------------------------------ Creditors owed money by LLC Autohaus Jelinek (FN 35976g) have until Feb. 5, 2008, to file written proofs of claim to court- appointed estate administrator Werner Stanek at: Dr. Werner Stanek Wollzeile 33/20 1010 Vienna Austria Tel: 512 29 02 Fax: 512 29 02 30 E-mail: werner-stanek@chello.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Feb. 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 18, 2007 (Bankr. Case No. 38 S 70/07g). G.D.T. GRABNER: Claims Registration Period Ends February 5 ---------------------------------------------------------- Creditors owed money by KEG G.D.T. Grabner Transporte (FN 227451m) have until Feb. 5, 2008, to file written proofs of claim to court-appointed estate administrator Philipp Dobner at: Dr. Philipp Dobner c/o Dr. Arno Maschke Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: dobner@sup.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 18, 2007 (Bankr. Case No. 4 S 143/07t). Arno Maschke represents Dr. Dobner in the bankruptcy proceedings. GERFRIED HASCHKE: Claims Registration Period Ends February 7 ------------------------------------------------------------ Creditors owed money by KEG Gerfried Haschke (FN 207961a) have until Feb. 7, 2008, to file written proofs of claim to court- appointed estate administrator Werner Borns at: Dr. Werner Borns Dr.-Wilhelm-Exner-Platz 6 2230 Ganserndorf Austria Tel: 02282/60 802 Fax: 02282/60 824 E-mail: insolvenzen@lawpartners.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Feb. 21, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 104 Hall 2 First Floor Korneuburg Austria Headquartered in Poysdorf, Austria, the Debtor declared bankruptcy on Dec. 14, 2007 (Bankr. Case No. 32 S 25/07z). HGT HYDRO: Claims Registration Period Ends Feb. 5 ------------------------------------------------- Creditors owed money by LLC HGT Hydro-Geo-Thermie Bohr (FN 277334w) have until Feb. 5, 2008, to file written proofs of claim to court-appointed estate administrator Bernhard Eder at: Dr. Bernhard Eder c/o Dr. Herbert Hochegger Brucknerstrasse 4 1040 Vienna Austria Tel: 505 78 61 Fax: 505 78 61 9 E-mail: eder@rechtsanwaelte.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Feb. 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 19, 2007 (Bankr. Case No. 4 S 145/07m). Herbert Hochegger represents Dr. Eder in the bankruptcy proceedings. JITKA BAU: Claims Registration Period Ends Feb. 5 ------------------------------------------------- Creditors owed money by LLC JITKA BAU (FN 285435h)have until Feb. 5, 2008, to file written proofs of claim to court-appointed estate administrator Elisabeth Stanek-Noverka at: Dr. Elisabeth Stanek-Noverka Hernalser Hauptstrasse 116 1170 Vienna Austria Tel: 486 14 37-0, 486 02 09-0 Fax: 486 02 09 18 E-mail: ra-noverka@chello.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 17, 2007 (Bankr. Case No. 38 S 67/07s). MAGAUER LLC: Wels Court Orders Business Shutdown ------------------------------------------------ The Land Court of Wels entered Dec. 19, 2007, an order shutting down the business of LLC Magauer (FN 105833m). Court-appointed estate administrator Walter Holme recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Walter Holme Dr. Koss Strasse 3 4600 Wels Austria Tel: 07242/67354-0 Fax: 07242/67354-50 E-mail: kanzlei@holme.at Headquartered in Wels, Austria, the Debtor declared bankruptcy on Dec. 14, 2007 (Bankr. Case No 20 S 145/07k). PABNEU REISINGER: Claims Registration Period Ends Feb. 4 -------------------------------------------------------- Creditors owed money by LLC pabneu Reisinger (FN 83426k) have until Feb. 4, 2008, to file written proofs of claim to court- appointed estate administrator Guenther Grassner at: Dr. Guenther Grassner c/o Dr. Norbert Mooseder Suedtirolerstrasse 4-6 4020 Linz Austria Tel: +43 70770815 Fax: +43 70770816 E-mail: lawfirm@gltp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 18, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 522 Fifth Floor Wiener Neustadt Austria Headquartered in Pabneukirchen, Austria, the Debtor declared bankruptcy on Dec. 11, 2007 (Bankr. Case No. 12 S 96/07s). Norbert Mooseder represents Dr. Grassner in the bankruptcy proceedings. SALASSIA HOLDING: Claims Registration Period Ends Feb. 7 -------------------------------------------------------- Creditors owed money by LLC Salassia Holding (FN 187806k) have until Feb. 7, 2008, to file written proofs of claim to court- appointed estate administrator Christian Hajos at: Mag. Christian Hajos c/o Dr. Wolfgang Winkler Hauptstrasse 6 2630 Ternitz Austria Tel: 02630/33 655 Fax: 02630/33655-14 E-mail: dr.winkler.ternitz@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Feb. 21, 2008, 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 Moedling, Austria, the Debtor declared bankruptcy on Dec. 20, 2007 (Bankr. Case No. 10 S 120/07m). Wolfgang Winkler represents Dr. Hajos in the bankruptcy proceedings. SANDMEIER LOGISTIK: Claims Registration Period Ends Feb. 25 ----------------------------------------------------------- Creditors of Sandmeier Logistik GmbH have until Feb. 25, 2008, to register their claims with court-appointed insolvency manager Arnd Sebelefsky. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 8, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Arnd Sebelefsky Arcostr. 3 80333 Muenchen Germany Tel: 089/5490250 Tel: 089/558674 The District Court of Munich opened bankruptcy proceedings against Sandmeier Logistik GmbH on Dec. 27, 2005. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sandmeier Logistik GmbH Fuerstenfelder Str. 7 85232 Bergkirchen Germany STECO LLC: Claims Registration Period Ends Feb. 7 ------------------------------------------------- Creditors owed money by LLC STECO (FN 289990g) have until Feb. 7, 2008, to file written proofs of claim to court-appointed estate administrator Karl Schirl at: Dr. Karl Schirl c/o Mag. Markus Siebinger Krugerstrasse 17/3 1010 Vienna Austria Tel: 513 22 31 Fax: 513 22 31 1 E-mail: dr.karl.schirl@der-rechtsanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Feb. 21, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Dec. 13, 2007 (Bankr. Case No. FN 289990g). Markus Siebinger represents Dr. Schirl in the bankruptcy proceedings. ============= B E L G I U M ============= CHEMTURA CORP: Selling Oleochemicals Business to PMC Group ---------------------------------------------------------- Chemtura Corporation has reached agreement to sell its oleochemicals business to PMC Group NA Inc. for an undisclosed amount, subject to financing and other conditions including customary closing conditions. Included in the transaction is Chemtura's production facility at Memphis, Tennessee. Proceeds from the sale will be used primarily for debt reduction. The transaction is expected to close by the end of the first quarter. The oleochemicals business had revenues for 2007 of about US$175 million. "This transaction will be another step in improving our polymer additives business by strategically divesting product lines to better focus on the products and businesses where we have our greatest strengths and leading market positions," Robert L. Wood, Chemtura chairman and CEO, said. "PMC Group NA Inc. is committed to this business and its growth, which will be an advantage to both customers and employees." Chemtura's Memphis facility has about 260 employees, who are expected to transfer to PMC Group NA Inc. The facility produces fatty acids, fatty esters, glycerin approved for pharmaceutical applications, glycerol esters, amides, bisamides, stearates and triglycerides. The Memphis plant is the only producer of primary amides in North America for the plastics additives market. About Chemtura Corporation Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:CEM) -- http://www.chemtura.com/-- is a manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products. The company has approximately 6,400 employees around the world and sells its products in more than 100 countries. The company has facilities in Singapore, Australia, China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany, Mexico, and The United Kingdom. * * * As reported in the Troubled Company Reporter-Europe on Dec. 21, 2007, Moody's Investors Service placed Chemtura Corporation's corporate family rating, CFR of Ba2 under review for possible downgrade after reports that its "board of directors has authorized management to consider a wide range of strategic alternatives available to the company to enhance shareholder value." Standard & Poor's Ratings Services placed its 'BB+' corporate credit and senior unsecured debt ratings of Chemtura Corp. on CreditWatch with developing implications, after reports that management is considering strategic alternatives, including sale or merger of the company. POPE & TALBOT: Obtains Additional Waivers to DIP Agreement ---------------------------------------------------------- In a regulatory filing with the U.S. Securities and Exchange Commission, Pope & Talbot and its debtor-affiliates disclosed that on Jan. 4, 2008, they entered into a second waiver to the Debtor-in-Possession Credit and Security Agreement with Ableco Finance LLC, Wells Fargo Financial Corporation Canada and certain other lenders. The Debtors also reported that on Jan. 7, 2008, they entered into a third waiver to the DIP Credit and Security Agreement. R. Neil Stuart, vice president and chief financial officer of Pope & Talbot Inc., stated that under the Second Waiver, the Lenders waived any default or event of default under the DIP Agreement, resulting from the occurrence of a material adverse deviation from the budget, during certain prior periods with respect to disbursements for payroll and other taxes and receipts set forth in the budget. Under the Third Waiver, Mr. Stuart disclosed, the Lenders waived any default or event of default under Section 8(a)(a) of the DIP Agreement resulting from the occurrence of a material adverse deviation from the budget, during certain prior periods with respect to lumber duties and insurance set forth in the budget. A full-text copy of the Second Waiver to the DIP Credit and Security Agreement is available for free at the SEC: http://researcharchives.com/t/s?276d A full-text copy of the Third Waiver to the DIP Credit and Security Agreement is available for free at the SEC: http://researcharchives.com/t/s?276e Mr. Stuart reported in a separate regulatory SEC filing dated Jan. 17, 2008, that the same parties entered into a fourth waiver to the DIP Credit and Security Agreement on January 11. Under the Fourth Waiver, the Lenders waived any default or event of default under Section 8(a)(a) of the DIP Agreement resulting from the occurrence of a material adverse deviation from the budget, during certain prior periods with respect to payroll taxes and benefits, chemical payments and tax payments set forth in the budget. A full-text copy of the Fourth Waiver to the DIP Credit and Security Agreement is available for free at the SEC: http://researcharchives.com/t/s?276f As reported in the Troubled Company Reporter on Jan. 14, 2008, Mr. Stuart disclosed that P&T Inc. and Pope & Talbot Ltd., entered into a first amendment and waiver to its DIP Agreement effective as of Dec. 20, 2007. According to Mr. Stuart, the Amendment was necessary to conform the DIP Agreement to the U.S. Bankruptcy Court for the District of Delaware's final DIP order, dated Dec. 7, 2007. As reported in the Troubled Company Reporter on Dec. 13, 2007, the Hon. Christopher S. Sontchi granted the Debtors authority, on a final basis, to borrow up to US$18,000,000 in term loans and up to US$71,062,301 in revolving credit from Wells Fargo Financial Corporation, as DIP administrative agent, and Ableco Financial LLC, as DIP collateral agent. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. Markets for the company's products include the US, Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expired on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Shearman & Sterling LLP is the Debtor's bankruptcy counsel, while Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. represents the Debtors as bankruptcy co-counsel. The Official Committee of Unsecured Creditors selected Fried, Frank, Harris, Shriver & Jacobson LLP as its bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: PwC Reports Completion of Sale of 3 Surplus Lands ---------------------------------------------------------------- PricewaterhouseCoopers Inc., as monitor of the proceedings commenced by Pope & Talbot Ltd. and its subsidiaries under the Companies' Creditors Arrangement Act, reports that three out of four transactions for the sale of the Debtors' surplus land closed successfully on Jan. 8, 2008. The closed transactions are for the sale of Beaverdell South, Deer Park and Shields Creek. The fourth transaction with RJR Investments Ltd. for a portfolio of 10 properties was to have closed on Jan. 14, 2008. According to the Monitor, the net proceeds received from the three completed transactions total CDNUS$2,500,000, which will be paid to the Debtors' term lenders pursuant to their first ranking security over the assets. As reported in the Troubled Company Reporter on Dec 14, 2007, the British Columbia Supreme Court approved four transactions covering the sale of the surplus lands of Pope & Talbot Inc. and its debtor-affiliates. The Canadian Court held, however, that the closing of each of the Transactions is subject to the approval of the United States Bankruptcy Court for the District of Delaware, or having a cross-border protocol approved, whichever occurs first. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. Markets for the company's products include the US, Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expired on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Shearman & Sterling LLP is the Debtor's bankruptcy counsel, while Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. represents the Debtors as bankruptcy co-counsel. The Official Committee of Unsecured Creditors selected Fried, Frank, Harris, Shriver & Jacobson LLP as its bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA EUROPE: Parent Concerns Cue S&P to Watch B Ratings ---------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch implications on Belgium-based specialty chemicals group Solutia Europe S.A./N.V. to developing from positive. The 'B' long- and short-term corporate credit ratings remain on CreditWatch, where they were originally placed on Dec. 4, 2007. "The revised CreditWatch status on SESA is due to an announced delay in the emergence of its parent Solutia Inc. (D/--/NR) from Chapter 11 due to recent difficulties surrounding the exit financing," said Standard & Poor's credit analyst Sophia Dedemadis. The developing implications reflect our need for further information regarding the parent company's exit financing. As indicated by Solutia, the bank syndicate lead arrangers are seeking to cancel their obligations to provide Solutia's credit facilities, citing an adverse change in the credit markets that has impaired their ability to syndicate. Failure by the parent to successfully emerge from Chapter 11 -- or a further significant delay -- could negatively affect the ratings on SESA, which is a wholly owned subsidiary of Solutia and has business operations that are closely interwoven with those of its parent. Alternatively, successful emergence from bankruptcy by the parent could have a positive effect on the ratings or outlook. This, however, remains highly contingent on the corporate structure, financial risk profile, market conditions, and prospects of Solutia and SESA at that time. Standard & Poor's expects to resolve the CreditWatch status within 90 days. ============= G E R M A N Y ============= A.P. MANAGEMENT: Claims Registration Period Ends Feb. 14 -------------------------------------------------------- Creditors of A.P. Management und Bau GmbH have until Feb. 14, 2008, to register their claims with court-appointed insolvency manager Uta Plischkaner. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stralsund Hall A 421 Fourth Floor House A Frankendamm 17 Stralsund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Uta Plischkaner Johannes-Stelling-Str.1 19053 Schwerin Germany The District Court of Stralsund opened bankruptcy proceedings against A.P. Management und Bau GmbH on Jan. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: A.P. Management und Bau GmbH Attn: A. Pecyna, Manager Ziegelhof 2 17489 Greifswald Germany BAB MANSKE: Claims Registration Period Ends Feb. 15 --------------------------------------------------- Creditors of BAB Manske Estrich GmbH have until Feb. 15, 2008, to register their claims with court-appointed insolvency manager Herbert Huelsbergen. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 26, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Rostock Hall 330 Zochstrasse 18057 Rostock 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: Herbert Huelsbergen Graf-Schack-Strasse 14 18055 Rostock Germany The District Court of Rostock opened bankruptcy proceedings against BAB Manske Estrich GmbH on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BAB Manske Estrich GmbH Attn: Stephan Manske, Manager Neue Strasse 24/25 18273 Guestrow Germany C.A.T. WERBEAGENTUR: Claims Registration Period Ends Feb. 14 ------------------------------------------------------------ Creditors of c.a.t. Werbeagentur GmbH have until Feb. 14, 2008, to register their claims with court-appointed insolvency manager Roland Reichert. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on March 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Heilbronn Hall 4 Ground Floor Rollwagstr. 10a 74072 Heilbronn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Roland Reichert Maybachstrasse 31 74245 Loewenstein Germany Tel: 07130/400970 Fax: 07130/4009715 The District Court of Heilbronn opened bankruptcy proceedings against c.a.t. Werbeagentur GmbH on Jan. 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: c.a.t. Werbeagentur GmbH Schoettlestrasse 2 74074 Heilbronn Germany C & H BLOCKHAUS: Claims Registration Period Ends Feb. 11 -------------------------------------------------------- Creditors of C & H Blockhaus GmbH have until Feb. 11, 2008, to register their claims with court-appointed insolvency manager Petra Wiche-Wendler. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on March 3, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Coburg Meeting Hall K First Stock Coburg 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: Petra Wiche-Wendler Pfarr 1 (Medienhaus) Rechtsanwaltin 95028 Hof/Saale Germany The District Court of Coburg opened bankruptcy proceedings against C & H Blockhaus GmbH on Jan. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: C & H Blockhaus GmbH Mainau 10 96215 Lichtenfels Germany COLORTEK SERVICES: Claims Registration Period Ends Feb. 13 ---------------------------------------------------------- Creditors of Colortek Services GmbH have until Feb. 13, 2008, to register their claims with court-appointed insolvency manager Peter-Alexander Borchardt. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Am Ochsenmarkt 3 21335 Lueneburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter-Alexander Borchardt Deichstr. 1 20459 Hamburg Germany Tel: 040/37 60100 Fax: 040/37 601199 E-mail: hamburg@htg-wp.de The District Court of Lueneburg opened bankruptcy proceedings against Colortek Services GmbH on Jan. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Colortek Services GmbH Attn: Soelvi Karin Scheidt, Manager Von-Estorff-Str. 20 21398 Neetze Germany CYPACC GMBH: Claims Registration Period Ends Feb. 15 ---------------------------------------------------- Creditors of CYPACC GmbH have until Feb. 15, 2008, to register their claims with court-appointed insolvency manager Frank Imberger. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on March 20, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bochum Hall A29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum 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: Frank Imberger Huestrasse 34 44787 Bochum Germany The District Court of Bochum opened bankruptcy proceedings against CYPACC GmbH on Dec. 28, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CYPACC GmbH Josef-Baumann-Str. 19 44805 Bochum Germany DATA COM: Claims Registration Period Ends Feb. 14 ------------------------------------------------- Creditors of Data Com GmbH have until Feb. 14, 2008, to register their claims with court-appointed insolvency manager Klaus Albert Maier. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Hall 13 Ground Floor Hauffstr. 5 (Am Neckartor) 70190 Stuttgart Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus Albert Maier Wilhelmstr. 12 70182 Stuttgart Germany Tel: 0711/16 42 40 Fax: 0711/16 42 424 The District Court of Stuttgart opened bankruptcy proceedings against Data Com GmbH on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Data Com GmbH Holderackerstr. 4 70499 Stuttgart Germany HOTELGESELLSCHAFT ELBTALAUE: Claims Period Ends Feb. 25 ------------------------------------------------------- Creditors of Hotelgesellschaft Elbtalaue mbH have until Feb. 25, 2008, to register their claims with court-appointed insolvency manager Michael Wilkens. Creditors and other interested parties are encouraged to attend the meeting at 11:50 a.m. on March 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 Schwerin Hall 7 Demmlerplatz 14 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 Wilkens Elbchaussee 140 22763 Hamburg Germany The District Court of Schwerin opened bankruptcy proceedings against Hotelgesellschaft Elbtalaue mbH on Jan. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hotelgesellschaft Elbtalaue mbH mit Sitz in Neu Kaliss Attn: Joachim Scharnweber, Manager Ludwigsluster Strasse 2 19294 Neu Kaliss Germany IVB GMBH: Claims Registration Period Ends Feb. 11 ------------------------------------------------- Creditors of IVB GmbH have until Feb. 11, 2008, to register their claims with court-appointed insolvency manager Andreas Korrell. Creditors and other interested parties are encouraged to attend the meeting at 2:05 p.m. on March 3, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Delmenhorst Hall 2 Branch 1 Cramerstrasse 183 27749 Delmenhorst Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Korrell Rembertistr. 32 28203 Bremen Germany Tel: 0421 1783271 Fax: 0421 1783270 The District Court of Delmenshorst opened bankruptcy proceedings against IVB GmbH on Jan. 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IVB GmbH Attn: Michael Muees, Manager Louisenstrasse 11 27749 Delmenhorst Germany MAB MASSIVHAUS: Claims Registration Period Ends Feb. 12 ------------------------------------------------------- Creditors of MAB Massivhaus GmbH have until Feb. 12, 2008, to register their claims with court-appointed insolvency manager Ruediger Wienberg. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on March 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Ruediger Wienberg Giesebrechtstr. 1 10629 Berlin Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against MAB Massivhaus GmbH on Jan. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MAB Massivhaus GmbH Am Mueggelpark 25 15537 Gosen Germany MEIN HAUS: Claims Registration Period Ends Feb. 12 -------------------------------------------------- Creditors of Mein Haus Wohnbau GmbH have until Feb. 12, 2008, to register their claims with court-appointed insolvency manager Hans-Wilhelm Bauer. Creditors and other interested parties are encouraged to attend the meeting at 11:10 a.m. on March 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Regensburg Hall 105 Augustenstr. 5 Regensburg 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: Hans-Wilhelm Bauer Emmeramsplatz 6 93047 Regensburg Germany Tel: 0941/29680-46 Fax: 0941/2968045 The District Court of Regensburg opened bankruptcy proceedings against Mein Haus Wohnbau GmbH on Jan. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mein Haus Wohnbau GmbH Lindenstr. 21 93049 Regensburg Germany MONEYPLUS BETEILIGUNGS: Claims Registration Period Ends Feb. 12 --------------------------------------------------------------- Creditors of MoneyPlus Beteiligungsgesellschaft mbH have until Feb. 12, 2008, to register their claims with court-appointed insolvency manager Marco Liebler. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on March 4, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kempten Meeting Hall 157/I Residenzplatz 4-6 87435 Kempten 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. Marco Liebler c/o Kanzlei Ott & Kollegen Nymphenburger Str. 139 80636 Munich Germany Tel: 089/120 260 Fax: 089/120 261 27 The District Court of Kempten opened bankruptcy proceedings against MoneyPlus Beteiligungsgesellschaft mbH on Jan. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MoneyPlus Beteiligungsgesellschaft mbH Berghof Goimenen 4 87637 Seeg Germany OTT GMBH: Creditors' Meeting Slated for Feb. 11 ----------------------------------------------- The court-appointed insolvency manager for Ott GmbH, Karl Kasser, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on Feb. 11, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Passau Meeting Hall 12a Ground Floor Schustergasse 4 Passau Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on March 31, 2008, at the same venue. Creditors have until Feb. 18, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Karl Kasser Rathausgasse 5 94481 Grafenau Germany Tel: 08552-10667 The District Court of Passau opened bankruptcy proceedings against Ott GmbH on Jan. 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ott GmbH Burgberg 5 94127 Neuburg am Inn Germany P.A.F.P. ALTENPFLEGEAUSBILDUNG: Claims Period Ends Feb. 21 ---------------------------------------------------------- Creditors of P.A.f.P. Altenpflegeausbildung gemeinn�tzige GmbH have until Feb. 21, 2008, to register their claims with court- appointed insolvency manager Joachim Klein II. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 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 Cologne Meeting Hall 14 Luxemburger Strasse 101 50939 Cologne 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 Klein II Hansaring 79 - 81 50670 Koeln Germany Tel: 9126770 Fax: +4922191267799 The District Court of Cologne opened bankruptcy proceedings against P.A.f.P. Altenpflegeausbildung gemeinn�tzige GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: P.A.f.P. Altenpflegeausbildung gemeinn�tzige GmbH Wilhelm-Kamm-Str. 2 50321 Bruehl Germany Attn: Silvia Baumgartner, Manager Heinrich-Esser-Str. 31 50321 Bruehl Germany PB CONSUMER: Moody's Rates EUR17.4 Mln Class E Notes at Ba2 ----------------------------------------------------------- Moody's Investors Service assigned these definitive ratings to five classes of asset-backed notes issued by PB Consumer 2008-1 GmbH: -- Aaa to the EUR997,700,000 Class A Floating Rate Asset Backed Notes; -- Aa2 to the EUR18,600,000 Class B Floating Rate Asset Backed Notes; -- A1 to the EUR30,200,000 Class C Floating Rate Asset Backed Notes; -- Baa2 to the EUR42,900,000 Class D Floating Rate Asset Backed Notes; and -- Ba2 to the EUR17,400,000 Class E Floating Rate Asset Backed Notes; PB Consumer 2008-1 GmbH is the first public term securitization of unsecured consumer loans in Germany. The ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the notes by the legal final maturity. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. PB CONSUMER 2008-1: S&P Rates EUR17.4 Mln Class E Notes at BB ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its credit ratings to the floating-rate asset-backed notes issued by PB Consumer 2008-1 GmbH. PB Consumer used the issuance proceeds to purchase a EUR1.16 billion static portfolio of unsecured consumer loans from Deutsche Postbank AG (A-/Stable/A-2; Postbank), granted by Postbank to German residents. This is the first transaction to be rated by Standard & Poor's that is backed by unsecured consumer loans originated in Germany, and also the first consumer loan and true-sale transaction by Postbank. Ratings List PB Consumer 2008-1 GmbH EUR1.16 Billion Floating-Rate Asset-Backed Notes and EUR8.3 Million Liquidity Reserve Notes Amount Class Rating (Mln. EUR) ----- ------ ------ A AAA 997.7 B AA 18.6 C A 30.2 D BBB 42.9 E BB 17.4 F NR 53.3 Liquidity reserve note NR 8.3 NR -- Not rated. PB CONSUMER 2008-1: Fitch Rates EUR17.4 Mln Class E Notes at BB --------------------------------------------------------------- Fitch Ratings has assigned final ratings to PB Consumer 2008-1 GmbH's issue of EUR1.107 billion floating-rate notes due August 2021: -- EUR997.7 million Class A (ISIN DE000A0STMA5): 'AAA' -- EUR18.6 million Class B (ISIN DE000A0STMB3): 'AA' -- EUR30.2 million Class C (ISIN DE000A0STMC1): 'A' -- EUR42.9 million Class D (ISIN DE000A0STMD9): 'BBB' -- EUR17.4 million Class E (ISIN DE000A0STME7): 'BB' Each rated class in this transaction has a Stable Outlook. The final ratings address the timely payment of interest and ultimate payment of principal in accordance with the terms and conditions of the notes. The issuance proceeds of the rated notes and the unrated notes are used to purchase a portfolio of German unsecured consumer loan receivables originated by Postbank (rated 'A/ F1'/Outlook Stable). As of Dec. 31, 2007, the portfolio had a principal balance of EUR1.16 billion. At Nov. 30, 2007, when the portfolio was selected, the portfolio consisted of 140,694 loan contracts, entered into with 136,916 borrowers. Credit enhancement for the notes is provided by subordination of junior notes. Initial credit enhancement is 14% for the class A notes, 12.4% for the class B notes, 9.8% for the class C notes, 6.1% for the class D notes and 4.6% for the class E notes. The rated notes have additional support from a liquidity note, which will cover potential interest shortfall. SCHONDELMAIER INNENAUSBAU: Creditors' Meeting Slated for Jan. 30 ---------------------------------------------------------------- The court-appointed insolvency manager for Schondelmaier Innenausbau GmbH, Albert Hirt will present his first report on the Company's insolvency proceedings at a creditors' meeting at 2:15 p.m. on Jan. 30, 2008. The meeting of creditors and other interested parties 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 at 2:30 p.m. on April 5, 2008, at the same venue. Creditors have until Feb. 18, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Albert Hirt Berner Feld 74 78628 Rottweil Germany The District Court of Offenburg opened bankruptcy proceedings against Schondelmaier Innenausbau GmbH on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schondelmaier Innenausbau GmbH Reichenbacher-Str. 21 78132 Hornberg Germany TAQUITOS GMBH: Claims Registration Ends Feb. 15 ----------------------------------------------- Creditors of TAQUITOS GmbH Remscheid have until Feb. 15, 2008, to register their claims with court-appointed insolvency manager Holger Harzig. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on March 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal 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: Holger Harzig Wall 28 42103 Wuppertal Germany Tel: 0202/3175580 Fax: 020231755810 The District Court of Wuppertal opened bankruptcy proceedings against TAQUITOS GmbH Remscheid on Jan. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TAQUITOS GmbH Remscheid Alleestr.. 27 42853 Remscheid Germany Attn: Mohamed Adil Chniber, Manager Freiheitstr. 20 42853 Remscheid Germany TISCHLEREI EITZMANN: Claims Registration Ends Feb. 15 ----------------------------------------------------- Creditors of Tischlerei Eitzmann GmbH have until Feb. 15, 2008, to register their claims with court-appointed insolvency manager Stefan Denkhaus. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on March 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Stefan Denkhaus Jungfernstieg 30 20354 Hamburg Germany Tel: (040) 350 06-188 Fax: (040) 350 06-176 The District Court of Walsrode opened bankruptcy proceedings against Tischlerei Eitzmann GmbH on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tischlerei Eitzmann GmbH Attn: Frank Eitzmann, Manager Bosselsmoor 7 29699 Bommelsen Germany WROBEL GESELLSCHAFT: Claims Registration Period Ends Feb. 11 ------------------------------------------------------------ Creditors of Wrobel Gesellschaft fuer schluesselfertiges Bauen mbH have until Feb. 11, 2008, to register their claims with court-appointed insolvency manager Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 3, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund 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. Sebastian Henneke Hansastrasse 61 44137 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Wrobel Gesellschaft fuer schluesselfertiges Bauen mbH on Jan. 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wrobel Gesellschaft fuer schluesselfertiges Bauen mbH Attn: Barbel Wrobel, Manager Auf der Scholle 6 59199 Boenen Germany ZDI INDUSTRIEVERBUND: Claims Registration Ends Feb. 15 ------------------------------------------------------ Creditors of ZDI Industrieverbund GmbH & Co. KG have until Feb. 15, 2008, to register their claims with court-appointed insolvency manager Dr. Christoph Niering. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on March 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Christoph Niering Brabanter Str. 2 50674 Cologne Germany Tel: 99 22 30-0 Fax: +4922199223035 The District Court of Cologne opened bankruptcy proceedings against ZDI Industrieverbund GmbH & Co. KG on Jan. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ZDI Industrieverbund GmbH & Co. KG Augustinusstr. 11 d 50226 Frechen Germany Attn: Dieter Sperling, Manager Donauweg 14 50858 Cologne Germany ============= I R E L A N D ============= RITCHIE IRELAND: Hikes DIP Financing to US$4.5 Million ------------------------------------------------------ Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-linked Strategies Trading (Ireland) II Ltd. sought and obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to increase their postpetition financing by US$1.8 million to US$4.5 million, Bill Rochelle of Bloomberg News reports. As reported in the Troubled Company Reporter on Sept. 18, 2007, the Court authorized Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd. to obtain a US$2.7 million postpetition financing from its affiliate, Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. Mr. Rochelle relates that US$1.55 million will go to Coventry First LLC as settlement over a dispute contesting ownership of files containing information about more than 1,000 life insurance policies the Debtors plan to sell. In December 2007, the Debtors asked the Court to determine who rightfully owns the files arguing that they cannot sell the policies for an acceptable price without those files, the TCR disclosed citing Bloomberg News. Coventry, the seller of the policies, contended that it never sold the files to the Debtors. In October 2007, the Court approved the procedures proposed by the Debtors for the sale of those policies, which constitutes all or substantially all of the Debtors' assets. About Ritchie (Ireland) Based in Dublin, Ireland, Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd. -- http://www.ritchiecapital.com/-- are Dublin-based funds of hedge fund group Ritchie Capital Management LLC. The Debtors were formed as special purpose vehicles to invest in life insurance policies in the life settlement market. The Debtors filed for Chapter 11 protection on June 20, 2007 (Bankr. S.D.N.Y. Case Nos. 07-11906 and 07- 11907). Allison H. Weiss, Esq., David D. Cleary, Esq., and Lewis S. Rosenbloom, Esq., at LeBoeuf, Lamb, Greene & MacRae, LLP represent the Debtors in their restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date. When the Debtors filed for bankruptcy, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a Chapter 11 plan of liquidation expires on April 15, 2008. ========= I T A L Y ========= ALITALIA SPA: Deutsche Lufthansa May Bid for Malpensa Slots ----------------------------------------------------------- Deutsche Lufthansa AG mulls bidding for some of Alitalia S.p.A.'s slots at Milan's Malpensa airport, Marco Bertacche writes for Bloomberg News, citing an unsourced La Stampa report. According to La Stampa, Lufthansa plans to make Malpensa as its southern European hub, adding that the German carrier's executives will meet Jan. 29, 2008, with airport slot regulator Assoclearance, to discuss flights at the Milan airport. Alitalia has until Jan. 31, 2008, to confirm the Malpensa slots it wants to keep. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have two months to reach an agreement, which would be approved by the government. Tommaso Padoa Schioppa, Italy's finance minister, has delivered a letter to Alitalia S.p.A. approving the commencement of exclusive talks with Air France-KLM. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. Air France CEO Jean-Cyril Spinetta confirmed plans to cut 1,700 jobs and defended plans to downsize Alitalia's operations in Milan's Malpensa airport. Mr. Spinetta also revealed that should the French carrier acquire 100% of Alitalia shares, Air France would list itself in the Milan bourse. Mr. Schioppa will represent the Italian government during sale talks and will evaluate whether to sell to the state's majority stake in Alitalia, Agenzia Giornalistica Italia says. 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. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Cargo Traffic Down 7.8% in December 2007 ------------------------------------------------------ Alitalia S.p.A.'s December 2007 traffic data compared to the same period in 2006 showed no difference in passenger business and a decrease in cargo business. Passenger business showed traffic in line with the same period of 2006 (+0.1%) with an increase of capacity offered by 0.7%. December 2007 Cargo statistics, compared to December 2006, showed a decrease in terms of goods flown (-7.8%) with capacity offered down 5.7%. Passengers Operations Traffic, measured in Revenue Passenger Kilometers, showed levels in line with 2006 (+0.1%) and the capacity, measured in Available Seat Kilometres, increased by 0.7%. Therefore load factor decreased by 0.4 percentage points reaching 68.6%. Alitalia carried 1.8 million passengers, up 1.2% compared to the previous year. Detailed comparisons with December 2006: -- Domestic Passenger Network: traffic increased by 3.9% with offered capacity up 6.2%. Load factor was 59.8%; -- International Passenger Network: traffic decreased by 1.3% and offered capacity decreased by 0.7%. Load factor was 62.6%. -- Intercontinental Passenger Network: traffic (-0.2%) and capacity offered (-0.1%) showed levels in line with 2006. Load factor was 76.6%. Cargo Operations December 2007 Cargo performance showed, compared to December 2006, a traffic decrease by 7.8% (traffic, measured in terms of Revenue Ton Kilometers) while capacity was down 5.7%. Overall Load factor was 71.2% with a decrease by 1.7 percentage points. Regarding the All-Cargo sector, Load factor was 82.2% with an increase by 5.6 percentage points compared with the same period of 2006. 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. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. PARMALAT SPA: Auditor Says Ex-CFO Alerted on Accounting Hole ------------------------------------------------------------ Maurizio Bianchi, a former Grant Thornton auditor, told a court in Milan, Italy, that he had alerted Parmalat S.p.A.'s former Chief Financial Officer Fausto Tonna of a EUR170 million accounting hole prior to its collapse in December 2003, the Associated Press reports. "But he told me to go ahead, and that the hole would have been filled in three years," Mr. Bianchi was quoted by AP as saying. "That was also my hope." Milan prosecutors have charged Messrs. Bianchi and Tonna, as well as Parmalat founder Calisto Tanzi and former group executives and accountants, of market rigging, false accounting and contravening local stock market laws. Also in trial are Citigroup Inc., UBS AG, Deutsche Bank AG, and Morgan Stanley. Milan prosecutors accused the banks of disguising the terms of Parmalat bond sales and other financing from investors, thus helping Parmalat conceal its financial situation. Mr. Bianchi has been sentenced to nine years in prison by a Parma court for fraudulent bankruptcy, while Mr. Tonna has reached a plea agreement for a two-and-a-half-year sentence. Lawyers for the banks rejected claims that the concerned firms, as well as their current and former managers, withheld information on Parmalat's true financial situation prior to its collapse. Judge Gabriella Manfrin reset the hearing to March 7, 2008, to allow more time to review the civil claims. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted Parmalat Permanent Injunction. =================== K A Z A K H S T A N =================== ALEKSA IKAR: Proof of Claim Deadline Slated for Feb. 27 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Aleksa Ikar insolvent. Creditors have until Feb. 27, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan CENTRALNOYE GASOSNABJENIYE: Claims Period Ends Feb. 26 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Centralnoye Gasosnabjeniye Petropavlovska insolvent. Creditors have until Feb. 26, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabayev Str. 109-415 Petropavlovsk North Kazakhstan Kazakhstan GALILEO KAZAKHSTAN: Claims Filing Period Ends Feb. 26 ----------------------------------------------------- LLP Galileo Kazakhstan has declared insolvency. Creditors have until Feb. 26, 2008, to submit written proofs of claims to: LLP Galileo Kazakhstan Panfilov/Kurmangazy Str. 149/47-3 Almaty Kazakhstan GUNEL PVC: Creditors' Claims Due on Feb. 26 ------------------------------------------- LLP Gunel Pvc Ltd. has declared insolvency. Creditors have until Feb. 26, 2008, to submit written proofs of claims to: LLP Gunel Pvc Ltd. Sarkyrama Tolebysky District South Kazakhstan Kazakhstan KOSTANAISBYTENERGO LLP: Claims Registration Ends Feb. 22 -------------------------------------------------------- LLP Kostanaisbytenergo has declared insolvency. Creditors have until Feb. 22, 2008, to submit written proofs of claims to: LLP Kostanaisbytenergo 5th Kilometer Auliekolskaya Str Zatobolsk Kostanaisky District Kostanai Kazakhstan MERIDIAN CAPITAL: Creditors Must File Claims by Feb. 26 ------------------------------------------------------- LLP Meridian Capital Kazakhstan has declared insolvency. Creditors have until Feb. 26, 2008, to submit written proofs of claims to: LLP Meridian Capital Kazakhstan Tole bi Str. 143a Almaty Kazakhstan PETROTORG LLP: Claims Filing Period Ends Feb. 26 ------------------------------------------------ The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Petrotorg insolvent. Creditors have until Feb. 26, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabayev Str. 109-415 Petropavlovsk North Kazakhstan Kazakhstan SASA INTERNATIONAL: Creditors' Claims Due on Feb. 22 ---------------------------------------------------- LLP Sasa International Inc. has declared insolvency. Creditors have until Feb. 22, 2008, to submit written proofs of claims to: LLP Sasa International Inc. Auezov Str. 129-96 Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== ROOK-ENERGY LLC: Creditors Must File Claims by Feb. 15 ------------------------------------------------------ LLC Rook-Energy has declared insolvency. Creditors have until Feb. 15, 2008, to submit written proofs of claim to: LLC Rook-Energy Toktonaliyev Str. 6a-3 Bishkek Kyrgyzstan Tel: (+996 312) 54-06-82 Fax: (+996 312) 51-16-89 ===================== N E T H E R L A N D S ===================== DUTCH MBS XI: S&P Puts BB-Rated Class D Notes on Watch Positive --------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch with positive implications its credit ratings on the subordinate classes of notes issued by Dutch MBS XI B.V. The 'AAA' ratings on the class A1 and A2 notes are unaffected by these CreditWatch placements. This CreditWatch placements follow an initial review of the most recent information received for Dutch MBS XI by Standard & Poor's. S&P's analysis showed that the likelihood of positive rating actions on the subordinate tranches has increased. Levels of credit enhancement available to the classes of notes placed on CreditWatch positive have improved and the underlying collateral continues to perform well. Standard & Poor's will now carry out a more detailed loan-level and cash flow analysis to investigate whether any or all of these notes can attain a higher rating. The results of this review and any changes in the ratings are expected in the next three months. The notes are backed by a loan pool secured by first-ranking (or first- and consecutive-ranking) mortgages in The Netherlands. This is the 11th transaction to be sponsored by NIB Capital Bank N.V. Ratings List Class Rating To From -- ---- Dutch MBS XI B.V. EUR767 Million And $275 Mortgage-Backed Floating-Rate Notes B A/Watch Pos A C BBB/Watch Pos BBB D BB/Watch Pos BB HEXION SPECIALTY: Extends Huntsman-Merger Termination to July 4 --------------------------------------------------------------- Hexion Specialty Chemicals Inc. has informed Huntsman Corporation that it will exercise its right under Section 7.1(b)(ii) of the Agreement and Plan of Merger dated July 12, 2007, to extend the termination date by 90 days from April 5, to July 4, 2008. Huntsman and Hexion had disclosed on Oct. 4, 2007, that each had received a request for additional information from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Huntsman and Hexion have agreed with the FTC to allow the FTC additional time to review the merger, such that the merger is not expected to close before May 3, 2008. Huntsman and Hexion also continue to work closely with regulatory agencies in other jurisdictions, including the European Union. "This extension was clearly contemplated by the terms of the merger agreement that we entered into with Hexion last July. We continue to work diligently with Hexion and its advisors to secure the regulatory approvals that are necessary to close the transaction", Peter Huntsman, president and CEO, noted. Under the terms of the Merger Agreement, the US$28 per common share cash price to be paid by Hexion upon any completion of the merger that occurs after April 5, 2008, will be increased at the rate of 8% per annum beginning on Apr. 5, 2008. About Huntsman Corporation Based in Salt Lake City, Utah, Huntsman Corporation (NYSE: HUN) -- http://www.huntsman.com/-- manufactures and markets differentiated and commodity chemicals. Its operating companies manufacture products for a variety of industries including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. About Hexion Specialty Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://www.hexionchem.com/-- makes thermosetting resins, formaldehyde and other forest product resins, epoxy resins, and raw materials for coatings and inks. Hexion Specialty Chemicals is owned by an affiliate of Apollo Management, L.P. The company has locations in China, Australia, Netherlands, and Brazil. It is an Apollo Management L.P. portfolio company. Hexion had 2006 sales of USUS$5.2 billion and employs more than 7,000 associates. * * * Moody's Investor Service placed Hexion Specialty Chemicals Inc.'s senior secured debt rating at 'B3', long term corporate family and probability of default ratings at 'B2' in July 2007. The ratings still hold to date. KONINKLIJKE AHOLD: Posts EUR6.6 Bln Net Sales in 4th Qtr 2007 ------------------------------------------------------------- Koninklijke Ahold N.V. disclosed consolidated net sales of EUR6.6 billion for the fourth quarter ended Dec. 30, 2007. Compared to the fourth quarter of 2006, net sales increased by 0.2% and increased by 6.5% at constant exchange rates. For the full year, consolidated net sales of EUR28.2 billion were 1.2% higher compared to 2006. At constant exchange rates, consolidated net sales were up 6.1%. In Europe, market conditions were favorable. In the United States, the turbulent economic environment did not have a significant impact on local market conditions. Price investments related to the further roll-out of the Value Improvement Program, launched in September 2006 at Stop & Shop and Giant-Landover, will continue to impact margins. For full year 2007, Ahold reiterates that total retail operating margin will be at the higher end of its 4.0% to 4.5% guidance. Sales performance Stop & Shop / Giant-Landover * Fourth Quarter -- net sales increased 2.0% to US$3.9 billion; -- identical sales increased 2.7% at Stop & Shop (1.2% excluding gasoline net sales). Identical sales decreased 0.5% at Giant-Landover, impacted by lower pharmacy sales; -- comparable sales increased 3.1% at Stop & Shop and decreased 0.3% at Giant-Landover. * Full Year -- net sales increased 1.5% to US$16.7 billion; -- identical sales increased 1.3% at Stop & Shop (0.6% excluding gasoline net sales) and decreased 1.1% at Giant-Landover; -- comparable sales increased 1.7% at Stop & Shop and decreased 0.9% at Giant-Landover. Giant-Carlisle * Fourth Quarter -- net sales increased 8.6% to US$1 billion, due in part to the acquisition of the Clemens Markets stores in the fourth quarter of 2006; -- identical sales increased 4.8% (3.8% excluding gasoline net sales); -- comparable sales increased 5.7%. * Full Year -- net sales increased 13.0% to US$4.3 billion, due in part to the acquisition of the Clemens Markets stores in the fourth quarter of 2006; -- identical sales increased 3.7% (3.2% excluding gasoline net sales); -- comparable sales increased 5.1%. Albert Heijn * Fourth Quarter -- net sales increased 12.9% to EUR2 billion, due in part to the acquisition of the Konmar stores in the fourth quarter of 2006; -- net sales at Albert Heijn supermarkets increased 12.6% to EUR1.8 billion; -- identical sales at Albert Heijn supermarkets increased 9.3%. * Full Year -- net sales increased 12.1% to EUR8 billion, due in part to the acquisition of the Konmar stores in the fourth quarter of 2006; -- net sales at Albert Heijn supermarkets increased 12.3% to EUR7.3 billion; -- identical sales at Albert Heijn supermarkets increased 7.9%. Albert / Hypernova (Czech Republic and Slovakia) * Fourth Quarter -- net sales increased 16.7% to EUR427 million (10.8% at constant exchange rates); -- identical sales increased 10.1%. * Full Year -- net sales increased 12.5% to EUR1.6 billion (9.1% at constant exchange rates); -- Identical sales increased 6.8%. Schuitema * Fourth Quarter -- net sales increased 3.1% to EUR773 million; -- identical sales increased 2.0%. * Full Year -- net sales increased 2.4% to EUR3.3 billion; -- Identical sales increased 1.3%. ICA (Unconsolidated joint venture) * Fourth Quarter -- net sales increased 22.1% to EUR2.4 billion, due in part to ICA's acquisition of the full ownership of Rimi Baltic AB in December 2006 (21.9% at constant exchange rates). * Full Year -- net sales increased 22.2% to EUR8.9 billion, due in part to ICA's acquisition of the full ownership of Rimi Baltic AB in December 2006 (22.0% at constant exchange rates). About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. (fka Royal Ahold) -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. It has operations in Argentina. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * As of Nov. 19, 2007, Koninklijke Ahold carries BB+ Issuer Default and senior unsecured ratings from Fitch Ratings. Fitch said the Outlook is Positive. Its Short-term rating is B. =========== N O R W A Y =========== NORSKE SKOGINDUSTRIER: Weak Prospects Cue S&P's BB Ratings ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Norway-based forest product company Norske Skogindustrier ASA to 'BB' from 'BB+'. The rating reflects lowered financial expectations resulting from demanding newsprint market conditions and underperformance to S&P's requirements at the previous rating level. At the same time, the 'B' short-term corporate credit rating was affirmed. The outlook is negative. "The downgrade results from our lowered expectations for the group's medium-term financial performance, aligning it to requirements at the 'BB' level," said Standard & Poor's credit analyst Andreas Zsiga. "About a third of group sales come from the European newsprint market, which faces tough volume and pricing conditions in the wake of general global economic weakening, continued pricing pressure from Canadian imports, and cost inflation, in particular for recycled paper. These conditions offset the positive impact of Norske Skog's cost- cutting measures." Mr. Zsiga continued: "We believe European newsprint prices will be pressured in 2008, despite European and North American capacity closures and positive pricing momentum in the U.S. The pricing gap between North America and Europe continues to encourage Canadian imports. We also expect weakening economic conditions in the U.S. and Europe to curb demand." Further potential downside risk rests with risks for additional newsprint capacity in the U.K. and a possible accelerated shift in European advertising spending to electronic media from printed, similar to the shift in the U.S. The negative outlook reflects the risk of continued medium-term pressure on financial performance from adverse market conditions or internal operating performance, weakening the group's prospects of achieving credit measures consistent with the current rating. To accommodate the ratings, Norske Skog needs to improve profitability and cash generation, achieving, for example, a ratio of FFO to debt of about 20%. The outlook could revert to stable if we see performance improving in line with our base case assumption. This requires material and sustainable improvement in cash flow generation and credit-protection measures over the medium term through further cost savings, and improved prices. This assumes that market fundamentals will improve over time as capacity balance and prices recovers, supported by growing demand and the marketwide capacity reductions. Potential major portfolio adjustments or changes to the Norske Skog group strategy or business focus are not factored into the ratings. NORSKE SKOGINDUSTRIER: Refutes S&P's BB Credit Rating Level ----------------------------------------------------------- Standard & Poor's Rating Services has revised its long-term credit rating on Norske Skogindustrier ASA to BB, from earlier BB+. The Negative Outlook is maintained. According to Standard & Poor's press release, the rating action reflects challenging market conditions, and that Norske Skog is underperforming to S&P's financial requirements for the previous rating level. Norske Skog does not have interest or covenants linked to the rating level on the existing debt. About Norske Skog Headquartered in Lysaker, Norway, Norske Skogindustrier ASA -- http://www.norskeskog.com/-- manufactures paper and pulp. It produces long and short fiber sulphate pulp, newsprint, bleached Kraft paper and others. The Company owns and operates paper mills in Europe, Asia, Australia, Africa and North and South America. Norske has posted three consecutive annual net losses of EUR116.3 million in 2004, EUR315.4 million in 2003, and EUR849 million in 2002. * * * As reported in the TCR-Europe on Nov. 6, 2007, Moody's Investors Service downgraded the Corporate Family Rating of Norske Skogindustrier ASA to Ba2 from Ba1 and placed all ratings on review for further possible downgrade. =========== R U S S I A =========== COMSTAR-UNITED: To Build NGN Network in Ukraine ----------------------------------------------- Comstar-United TeleSystems JSC signed an agreement with Cisco for the delivery of equipment to build NGN multi-service network in Ukraine. Kvazar Mikro, a subsidiary of Sitronics JSC, will act as a subcontractor for the installation and launch of the network. Comstar completed the tender for the delivery of equipment to build and modernize the backbone transportation network in Ukraine and city multi-service communications networks in Kiev and Odessa in December 2007. Comstar plans to install Cisco hub router and backbone router and also aggregation and network management equipment. The project is expected to be launched in the second quarter of 2008. The backbone network equipment will be installed in service centers in Kiev and Odessa, and will join both networks. Other cities will be added to the backbone infrastructure in the future. The company plans to provide its private clients with Triple Play services and its corporate clients with virtual private networks, telephony, high speed broadband, based on multi- service city networks. The number of subscribers is expected to exceed 125,000 by 2011 in Kiev and Odessa. "NGN technology will allow us to improve the quality of our services, introduce new products and enable our clients to manage them. The signing of the agreement for the delivery of NGN equipment is an important step for Comstar in building the new generation network in Ukraine. We plan to integrate all future networks in Ukrainian cities where we intend to offer telecom services, into Comstar's unified NGN Network," Alexander Kirillov, Comstar's vice president for technologies disclosed. Headquartered in Moscow, Russia, Comstar-UTS -- http://www.comstar-uts.com/en/-- is the largest provider of fixed line telecommunication services in the Moscow metropolitan area with a population of over 10 million, 5 regions of Russia, Ukraine and Armenia. As at Dec. 31, 2006, Comstar had US$1.12 billion in revenues and US$428.6 million in EBITDA (excluding US$62 million stock bonus awards). * * * As of Dec. 10, 2008, Comstar-United TeleSystems carries Moody's long-term corporate family rating of Ba3 with positive outlook. Standard & Poor's gave the company BB- on long-term foreign issuer credit rating and BB- on long-term local issuer credit rating. The outlook is positive. MOSCOW BANK: Moody's Changes Outlook on B1 Ratings to Positive -------------------------------------------------------------- Moody's Investors Service changed the outlook on the B1 long- term local and foreign currency deposit ratings of Moscow Bank for Reconstruction and Development to positive from stable. Accordingly, outlooks on the bank's foreign currency debt rating of B1 and its subordinate debt rating of B2 were also changed to positive from stable. MBRD's bank financial strength rating of E+ was affirmed with stable outlook. These rating actions reflect the upgrade by Moody's in October 2007 of the corporate family rating of MBRD's major shareholder -- JSFC Sistema -- to Ba3, positive outlook, from B1. MBRD's deposit ratings incorporate probability of parental support from JSFC Sistema to the bank, in case of need. Moody's notes that a further upgrade of the corporate family rating of JSFC Sistema would very likely lead to an upgrade of MBRD's deposit ratings. Domiciled in Moscow, Russia, MBRD reported -- as of June 30, 2007 -- total IFRS assets of US$2.9 billion (year-end 2006: USD2.2 billion) and total capital of US$159 million (year-end 2006: US$153 million). Net income for first half 2007 amounted to US$12 million (2006: US$15 million). Headquartered in Moscow, Russia, JSFC Sistema is one of the largest diversified service providers in Russia. The company has a diversified portfolio of telecom, technology, insurance, real estate, banking, media and other businesses. As of June 30, 2007, the total consolidated IFRS assets of JSFC Sistema amounted to US$22.5 billion. ===================== S W I T Z E R L A N D ===================== ARCOS TREUHAND: Creditors' Liquidation Claims Due by Feb. 6 ----------------------------------------------------------- Creditors of JSC Arcos Treuhand & Verwaltung have until Feb. 6, 2008, to submit their claims to: Rene Bagnoud Weidstrasse 10b 6331 Hunenberg ZG Switzerland The Debtor can be reached at: JSC Arcos Treuhand & Verwaltung Hunenberg ZG Switzerland BIZNESS LLC: Creditors' Liquidation Claims Due by Feb. 6 -------------------------------------------------------- Creditors of LLC BIZNESS have until Feb. 6, 2008, to submit their claims to: Hinterbergstrasse 21 6330 Cham ZG Switzerland The Debtor can be reached at: LLC BIZNESS Risch ZG Switzerland BSH BERGER: Creditors' Liquidation Claims Due by Feb. 6 ------------------------------------------------------- Creditors of LLC BSH Berger Handelsunternehmen have until Feb. 6, 2008, to submit their claims to: Markus Berger Rittergasse 4 4103 Bottmingen Arlesheim BL Switzerland The Debtor can be reached at: LLC BSH Berger Handelsunternehmen Bottmingen Arlesheim BL Switzerland ETS ENGEL: St. Gallen Court Starts Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Service of St. Gallen commenced bankruptcy proceedings against LLC ETS Engel Technik on Dec. 17, 2007. The Bankruptcy Service of St. Gallen can be reached at: Bankruptcy Service of St. Gallen Branch Buchs, Urs Hartmann, 9471 Buchs Werdenberg SG Switzerland The Debtor can be reached at: LLC ETS Engel Technik Industrie Plantli 8885 Mols SG Switzerland GONDA INVEST: Creditors' Liquidation Claims Due by Feb. 6 --------------------------------------------------------- Creditors of JSC Gonda Invest have until Feb. 6, 2008, to submit their claims to: Rene Bagnoud Weidstrasse 10b 6331 Hunenberg ZG Switzerland The Debtor can be reached at: JSC Gonda Invest Hunenberg ZG Switzerland MEDIA-TREND JSC: Creditors' Liquidation Claims Due by Feb. 6 ------------------------------------------------------------ Creditors of JSC Media-Trend have until Feb. 6, 2008, to submit their claims to: Rene Bagnoud Weidstrasse 10b 6331 Hunenberg ZG Switzerland The Debtor can be reached at: JSC Media-Trend Hunenberg ZG Switzerland RESTAURANT NEUHOF: Berne Court Starts Bankruptcy Proceedings ------------------------------------------------------------ The Bankruptcy Service of Berner Jura-Seeland in Berne commenced bankruptcy proceedings against LLC Restaurant Neuhof Biel on Oct. 31, 2007. The Bankruptcy Service of Berner Jura-Seeland can be reached at: Bankruptcy Service of Berner Jura-Seeland Amtsstelle Seeland, 2501 Biel/Bienne BE Switzerland The Debtor can be reached at: LLC Restaurant Neuhof Biel Zukunftstrasse 57 2503 Biel Switzerland TEMPUS WATCH: Creditors' Liquidation Claims Due by Feb. 5 --------------------------------------------------------- Creditors of LLC Tempus Watch & Clock have until Feb. 5, 2008, to submit their claims to: LLC Tempus Watch & Clock Studackerweg 24 4554 Etziken Wasseramt SO Switzerland =========== T U R K E Y =========== VESTEL ELEKTRONIK: Weak Performance Cues Moody's to Cut Ratings --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of Vestel Elektronik Sanayi ve Ticaret A.S. to B2 from B1. The outlook remains negative. These ratings were affected: -- B2 Corporate Family Rating and Probability of Default Rating; -- B2 rating on the US$225 million 8.75% Guaranteed Notes due 2012. "This rating action follows a detailed assessment of Vestel's results for the first nine months of 2007 in conjunction with the consideration of possible operating performance trends looking prospectively into 2008, and reflects Moody's concerns given the challenges faced by the company in improving its operational performance and restoring profitability, particularly in its TV business, that Vestel's financial risk profile and degree of financial flexibility has moved more into line with a weaker B2 rating" says Ayse Kayral, lead analyst for Vestel at Moody's. Moody's noted that the deterioration in the company's operating performance -- which is largely due to the market saturation in CRT TVs and the fierce competition in LCD TVs with a declining LCD price trend, coupled with the appreciation of the Turkish lira against the U.S. dollar and the euro -- continued into the third quarter of 2007. Although the year-on-year decline in Vestel's TV revenues in the first nine months of 2007 (-12%) was less significant than that in the first half of the year alone (-20%), together with continuing pressures on profitability, resulted in a negative EBITDA margin of -0.9% for the first nine months at the consolidated level. "Although Moody's acknowledges that seasonal factors are likely to have resulted in some improvement in the fourth quarter of 2007, looking into 2008 there is lack of visibility with regard to the timing and extent of any recovery in the company's operating performance -- which may ultimately exert further pressure on the company's cash flow generation capacity over the next 12 months," Mrs Kayral adds. Vestel reported total debt of US$783 million (excluding letters of credit) at September 2007; US$406 million of which had a short-term maturity profile (vs. US$261 million at June 2007) following the refinancing of a US$125 million syndicated letters of credit through a short-term bank loan. Moody's anticipates that the company's cash balance, which stood at US$380 million at September 2007, is to be applied to reduce gross debt in order to ease the limited headroom under the covenants in the indenture of the notes, and should broadly enable the company to cover its short-term debt maturities (excluding letters of credit) in the next twelve months to September 2008. Although the anticipated decline in gross debt and interest expense are positive credit factors, Moody's considers Vestel's liquidity profile to be weak based upon current expectations for other possible cash demands. The B2 ratings also take account of the potential risks associated with the company's lack of any committed back-up facility in place as of year-end 2007, and the uncertainties surrounding the possible sale of 36.3% of Vestel White Goods to Whirlpool, which could generate some US$210 million under current market valuations. Moody's notes that, given the lack of sufficient information at this stage to make an accurate assessment, the B2 ratings do not incorporate the potential impact of a possible joint venture with Whirlpool on Vestel's business and financial risk profile. In the event that a deal were to be reached, Moody's would evaluate its impact, if any, on Vestel's ratings. The negative outlook reflects Moody's view that: (i) the headroom under the covenants (which stood below 15% under the consolidated indebtedness/EBITDA ratio and just over 3% under the fixed charge coverage ratio as of June 2007) is expected by Moody's to remain tight at year-end 2007; and (ii) the combination of the sustained competitive pressure in key segments and the continued strength in the Turkish lira could increase the constraints on Vestel's liquidity further and result in the headroom under the covenants remaining at levels not compatible with a B2 rating. Headquartered in Istanbul, Turkey, Vestel is a leading manufacturer of consumer electronic products, including televisions, digital products and white goods. In the nine months to September 2007, the company reported US$2.4 billion in revenues and negative US$22 million in EBITDA. ============= U K R A I N E ============= AKTIV LLC: Proofs of Claim Deadline Set Feb. 8 ---------------------------------------------- Creditors of LLC Aktiv (code EDRPOU 31855536) have until Feb. 8, 2008, to submit written proofs of claim to: The Economic Court of Cherkassy Shevchenko Avenue 307 18005 Cherkassy Ukraine The Economic Court of Cherkassy commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 01/6000. The Debtor can be reached at: LLC Aktiv B. Hmelnitsky Str. 55 18005 Cherkassy Ukraine ASTA-ELIT LLC: Creditors Must File Claims by Feb. 8 --------------------------------------------------- Creditors of LLC Asta-Elit (code EDRPOU 33508283) have until Feb. 8, 2008, to submit written proofs of claim to: Cyril Liseyev Liquidator 65111 Odessa Ukraine P.O. Box 81 The Economic Court of Odessa commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 21/229-07-9071. The Economic Court of Odessa Shevchenko Avenue 4 65032 Odessa Ukraine The Debtor can be reached at: LLC Asta-Elit Apartment 4 Gavannaya Str. 6 65026 Odessa Ukraine COMSTAR-UNITED: To Build NGN Network in Ukraine ----------------------------------------------- Comstar-United TeleSystems JSC signed an agreement with Cisco for the delivery of equipment to build NGN multi-service network in Ukraine. Kvazar Mikro, a subsidiary of Sitronics JSC, will act as a subcontractor for the installation and launch of the network. Comstar completed the tender for the delivery of equipment to build and modernize the backbone transportation network in Ukraine and city multi-service communications networks in Kiev and Odessa in December 2007. Comstar plans to install Cisco hub router and backbone router and also aggregation and network management equipment. The project is expected to be launched in the second quarter of 2008. The backbone network equipment will be installed in service centers in Kiev and Odessa, and will join both networks. Other cities will be added to the backbone infrastructure in the future. The company plans to provide its private clients with Triple Play services and its corporate clients with virtual private networks, telephony, high speed broadband, based on multiservice city networks. The number of subscribers is expected to exceed 125,000 by 2011 in Kiev and Odessa. "NGN technology will allow us to improve the quality of our services, introduce new products and enable our clients to manage them. The signing of the agreement for the delivery of NGN equipment is an important step for Comstar in building the new generation network in Ukraine. We plan to integrate all future networks in Ukrainian cities where we intend to offer telecom services, into Comstar's unified NGN Network," Alexander Kirillov, Comstar's vice president for technologies disclosed. Headquartered in Moscow, Russia, Comstar-UTS -- http://www.comstar-uts.com/en/-- is the largest provider of fixed line telecommunication services in the Moscow metropolitan area with a population of over 10 million, 5 regions of Russia, Ukraine and Armenia. As at Dec. 31, 2006, Comstar had US$1.12 billion in revenues and US$428.6 million in EBITDA (excluding US$62 million stock bonus awards). * * * As of Dec. 10, 2008, Comstar-United TeleSystems carries Moody's long-term corporate family rating of Ba3 with positive outlook. Standard & Poor's gave the company BB- on long-term foreign issuer credit rating and BB- on long-term local issuer credit rating. The outlook is positive. KUYBISHEV CREAMERY: Creditors Must File Claims by Feb. 8 -------------------------------------------------------- Creditors of OJSC Kuybishev Creamery (code EDRPOU 00445601) have until Feb. 8, 2008, to submit written proofs of claim to: Vladimir Ivannikov Liquidator Gagarin Str. 85 Lunacharskoye Berdiansk District 71154 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 16/273/07. The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: OJSC Kuybishev Creamery Zaporozhskaya Str. 54 Kuybishevo Kuybishev District 71001 Zaporozhje Ukraine MAKEYEVKA PRODUCTION: Creditors Must File Claims by Feb. 8 ---------------------------------------------------------- Creditors of CJSC Makeyevka Production Union Excavation (code EDRPOU 01241378) have until Feb. 8, 2008, 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. 42/52b. The Debtor can be reached at: CJSC Makeyevka Production Union Excavation Gribinichenko Square 1-A Makeyevka 86130 Donetsk Ukraine ORBITA LLC: Proofs of Claim Deadline Set Feb. 8 ----------------------------------------------- Creditors of Agricultural LLC Orbita (code EDRPOU 30450519) have until Feb. 8, 2008, to submit written proofs of claim to: The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy supervision procedure on the company on Nov. 27, 2007. The case is docketed under Case No. 12/5476. The Debtor can be reached at: Agricultural LLC Orbita 92710 Lugansk Ukraine Starobolsky District Svetloye SAMBOR MOTORCAR 24667: Creditors Must File Claims by Feb. 8 ----------------------------------------------------------- Creditors of OJSC Sambor Motorcar Transport Enterprise 24667 (code EDRPOU 03117702) have until Feb. 8, 2008, to submit written proofs of claim to: Pavel Duplika Liquidator 33023 P.O. Box 27 Rovno Ukraine Tel: 8-067-314-42-14 The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/311. The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: OJSC Sambor Motorcar Transport Enterprise 24667 Grushevsky Str. 40 Sambor Lvov Ukraine SKADOVSK MOTORCAR 16544: Proofs of Claim Deadline Set Feb. 8 ------------------------------------------------------------ Creditors of OJSC Skadovsk Motorcar Transport Enterprise 16544 (code EDRPOU 03119109) have until Feb. 8, 2008, to submit written proofs of claim to: Elena Tsirkunova Temporary Insolvency Manager Koshevoy Descent 6/25 73000 Herson Ukraine The Economic Court of Herson commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 5/146-B-07. The Economic Court of Herson Gorkiy Str. 18 73000 Herson Ukraine The Debtor can be reached at: OJSC Skadovsk Motorcar Transport Enterprise 16544 Kirov Str. 80 Skadovsk 75700 Herson Ukraine STIR LLC: Creditors of Must File Claims by Feb. 8 ------------------------------------------------- Creditors of Agricultural LLC Stir (code EDRPOU 03762584) have until Feb. 8, 2008, to submit written proofs of claim to: Pavel Duplika Liquidator 33023 P.O. Box 27 Rovno Ukraine Tel: 8-067-314-42-14 The Economic Court of Lvov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 29/191. The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: Agricultural LLC Stir Berezovka Radekhovsky District Lvov Ukraine =========================== U N I T E D K I N G D O M =========================== ARNOTT & SPURRELL: Claims Filing Period Ends March 1 ---------------------------------------------------- Creditors of Arnott & Spurrell Ltd. (t/a O'Briens Irish Sandwich Bar) (formerly Drivestill Ltd.) have until March 1, 2008, to send in their full names, their addresses and descriptions full particulars of their debts and claims, and names and addresses of their Solicitors (if any) to: Nigel Ian Fox Joint Liquidator Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England Nigel Ian Fox and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint liquidators of the company on Jan. 18 by resolutions of members and creditors. BATQUEST LTD: M. H. Abdulali Leads Liquidation Procedure -------------------------------------------------------- M. H. Abdulali and N. J. Dingley of Moore Stephens were appointed joint liquidators of Batquest Ltd. on Jan. 22, 2008, for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Moore Stephens 6 Ridge House Ridgehouse Drive Festival Park Stoke-on-Trent ST1 5TL England BAUSCH & LOMB: Names Gerald M. Ostrov as Chairman and CEO --------------------------------------------------------- Bausch & Lomb Inc. has named Gerald M. Ostrov as chairman and chief executive officer, effective immediately. Most recently, Mr. Ostrov was company group chairman, Worldwide Vision Care, for Johnson & Johnson, where he led the company's global Vision Care businesses from 1998 to 2006. Current Chairman and CEO Ronald L. Zarrella, 58, will retire in March and serve as chairman emeritus. "It has been a privilege to serve as Bausch & Lomb's chairman and CEO since 2001," Mr. Zarrella said. "Working with thousands of highly talented employees worldwide, we were able to grow every aspect of the company while enhancing its reputation as the world's premier eye health brand. Jerry has extensive experience in ophthalmic businesses and consumer marketing, and is the ideal leader to take Bausch & Lomb into a new era of growth." Mr. Ostrov, 58, first joined Johnson & Johnson in 1976, before leaving for Ciba-Geigy AG in 1982. He was named president, Ciba Consumer Pharmaceuticals, in 1985. In 1991, he returned to Johnson & Johnson as president of its Personal Products business, and then became company group chairman for its North American Consumer and Personal Care businesses. "It's an honor to lead Bausch & Lomb into a growth period, one that we believe will be marked by considerable success across the vision care, pharmaceutical and surgical businesses," Mr. Ostrov said. "I'm impressed by the passion of the company's employees, and its strong relationships with industry partners and customers. We're going to build upon an unparalleled 155- year-old foundation of trust and innovation." "Warburg Pincus' commitment to a long-term investment horizon, and the collaborative relationship it has quickly built with Bausch & Lomb, is empowering the company to grow, Mr. Ostrov continued. "[The] eyeonics acquisition announcement is testament to our positive momentum." "We thank Ron for his dedication to Bausch & Lomb," Elizabeth H. Weatherman, a Warburg Pincus managing director and member of the Bausch & Lomb Board of Directors, commented. "He was instrumental in growing all aspects of the business, in leading the company through the 2006 recall, and then reestablishing widespread momentum -- an element vital for the organization's continued success. Jerry's extraordinary knowledge of the eye health industry will be instrumental as he leads Bausch & Lomb into an extended period of growth." Mr. Ostrov holds an M.B.A. from Harvard University and a B.S. degree in industrial engineering and operations research from Cornell University. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- is an eye health company whose core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. Founded in 1853, the company employs more than 13,000 people worldwide and its products are available in more than 100 countries. 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. * * * Bausch & Lomb Inc. still carries Moody's Investors Service 'B2' corporate family, 'B1' bank loan debt, 'Caa1' senior unsecured debt, and 'B2' probability of default ratings, which were last placed in October 2007. BAUSCH & LOMB: Acquiring Eyeonics Won't Affect S&P's Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that its rating on Bausch & Lomb Inc. (B+/Stable/--) is not affected by its intention to acquire Eyeonics Inc. S&P's analysis of the company's financial profile after the acquisition by Warburg Pincus incorporated some cushion for debt-financed acquisitions. In addition, the indication of EBITDA for 2007 exceeds S&P's expectations for the year and, as a result, 2007 debt to EBITDA should be more favorable than anticipated. Notwithstanding these factors, the acquisition may not be accretive in the near term given its (publicly undisclosed) cost. From a business perspective, eyeonics' crystalens intraocular lens will complement the company's portfolio of monofocal IOLs; currently, Bausch & Lomb is the only major player in the IOL market (Advanced Medical Optics Inc. and Alcon both offer multifocal IOLs) without a premium IOL. The crystalens U.S. IOL market share is estimated at about 30%. CHALLENGER SYNDICATESHIPS: Appoints Administrators from Begbies --------------------------------------------------------------- David Wilson and Julian Pitts of Begbies Traynor were appointed administrators of Challenger Syndicateships partnership and its sister company, Challenger Syndicateships Ltd. on Jan. 11, 2008. Both the limited company and the partnership have ceased operations but the joint administrators are working to salvage management of the syndicate, with a view to providing continuity of service to members as soon as possible. Syndicate members, of which there are more than 400, have all been contacted and advised of the situation. "In recent months the company and the partnership have suffered a number of financial difficulties. These have resulted in both being taken into administration and the need for a rescue package," David Wilson commented. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Evehsam, England Challenger Syndicateships -- http://www.challengershare.com/intro.htm-- was established in 1989 by Ed and Gill Rimmer. It initially operated as a management syndicate of narrow boats throughout the U.K. The partners founded the limited company (Challenger Syndicateships Limited) in 1997 to facilitate the purchase of a number of larger and more expensive boats in Spain. It has built a portfolio of yachts and power boats in the Spanish marinas, and rental villas in Tenerife and northern France. The partnership also has boats in France. CHRYSLER LLC: Offers Compensation Packages to Hourly Workers ------------------------------------------------------------ Chrysler LLC has extended compensation packages to United Auto Workers union member at plants in the United States in line with its aim to cut 8,500-10,000 hourly jobs through 2008 as disclosed in November, several papers report. Lump sum packages of up to US$100,000 were allocated to hourly employees at the Sterling Heights and Warren stamping plants, the Trenton and Mack Avenue engine plants, Conner Avenue Assembly Plant, Detroit Axle, Mt. Elliot Tool and Die, and the Sterling Heights Vehicle Test Center, Tim Higgins of the Detroit Free Press reports citing Chrysler spokeswoman Michele Tinson. Workers at four facilities, namely, Toledo North in Toledo, Ohio; St. Louis North and South in Fenton, Missouri; Belvidere, Illinois; and Jefferson North in Detroit, Michigan, received buyout proposals from the automaker early in January. As reported in the Troubled Company Reporter on Nov. 5, 2007, Chrysler disclosed that it would make volume-related reductions at several of its North American assembly and powertrain plants. Shifts will be eliminated at five North American assembly plants which, combined with other volume- related manufacturing actions, will lead to a reduction of 8,500-10,000 additional hourly jobs through 2008. Additional actions include reductions of salaried employment by 1,000 and supplemental (contract) employment by 37%. The company also plans to eliminate hourly and salaried overtime and reduce purchased services due to reduction in volume. The volume-related actions are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan announced in February. The objectives of the RTP remain the same. Sources say, citing Chrysler spokesman David Elshoff, that the first buyout program called the "special incentive program" was offered to workers who were 62 years old or older with 10 years (or more) of service. The buyout program presented these white- collared workers three months' salary and either a vehicle voucher worth US$20,000 after taxes or a US$20,000 tax-free contribution to a retirement health care account, in addition to full pension and retiree health benefits. Workers ages 53 to 61 with at least 10 years of service who make less than US$100,000 annually, as well as select workers ages 55 to 61 with 10 years of service who make US$100,000 or more in salary will be offered Chrysler's second buyout program, which provides full pension and retiree health care benefits," Eric Morath of The Detroit News relates. The program is otherwise known as "the special early retirement program." About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Europe on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. D K KITCHENS: Brings In Liquidators from Tenon Recovery ------------------------------------------------------- Steven Philip Ross and Ian William Kings of Tenon Recovery,were appointed joint liquidators of D K Kitchens Ltd. on Jan. 17, 2008, for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Tenon House Ferryboat Lane Sunderland Tyne & Wear SR5 3JN England DOLCIS LTD: Pays Equity Backers Before Calling In Administrators ---------------------------------------------------------------- Dolcis Ltd. paid debts of around GBP1 million to its equity backers before calling in administrators, The Scotsman reports. In a report by Jane Bradley for the Scotsman, the company filed a document with Companies House that said it had fulfilled a charge held by Epic Private equity, estimated to be GBP900,000. Records also showed that Dolcis paid about GBP1.5 million to Lloyds TSB. According to the report, KPMG, Dolcis' administrators, has been contacted by around 40 parties who are interested in acquiring the business. Since Dolcis entered administration on Jan. 21, 2008, the administrators have been marketing the business and they continue to trade 96 of its 185 outlets, closing 89. The 482 employees from outlets that are now closed have been made redundant. The jobs of the remaining 644 have been maintained and they will be paid as usual. "I am very pleased to have been contacted by a range of parties interested in acquiring Dolcis and remain hopeful of finding a buyer for this well-known High Street brand," joint administrator Brian Green disclosed. "I'd like to thank the management and continuing employees for their ongoing efforts in trading the business as a positive solution is sought," Mr. Green added. 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. Headquartered in Coventry, England, Dolcis Ltd. -- http://www.dolcis.co.uk/-- retails shoes. It has 65 high street branches across the U.K., in addition to these there are also over 150 Dolcis concessions primarily within Bay Trading and Envy stores. EMAP PLC: S&P Keeps B Credit Ratings on Watch Developing -------------------------------------------------------- Standard & Poor's Ratings Services keeps its 'B' long-term corporate credit rating and senior unsecured debt ratings on U.K.-based publisher EMAP PLC on CreditWatch with developing implications, where they were placed on Dec. 24, 2007. "EMAP's shareholders authorized the disposal of the company's Consumer Media and Radio business to Heinrich Bauer Verlag KG on Jan. 25, 2008," Standard & Poor's credit analyst Manuela Gabetta said. "The completion of the disposals, which amount to GBP1.14 billion, are expected to be finalized by early February, after the company obtains clearance from the German and Austrian competition authorities." EMAP intends to return approximately GBP1 billion from the proceeds of the disposals to its shareholders by way of a special dividend of GBP4.61 per share. Following this transaction, EMAP will become a focused B2B publisher with a portfolio of print titles, online assets, and exhibitions, with an expected annual EBITDA base of around GBP100 million. Thus, after the disposal, we would view EMAP's business profile as consistent with the 'BB' rating category, at best. ENRON CORP: High Court Refuses to Review Enron Investors' Case -------------------------------------------------------------- The U.S. Supreme Court rejected a petition by Enron Corp. investors for a review of a Fifth Circuit Court of Appeals decision dismissing their claims against third-party investment banks, whose alleged "active and knowing participation in the Enron fraud led to tens of billions of dollars in investor losses." The appeal sought to overturn a 2-1 decision by a three-judge panel of the Fifth Circuit, which ruling was issued on March 19, 2007. The Enron investors have asked the Supreme Court to determine if liability exists under Section 10(b) of the Securities Exchange Act of 1934 and the Securities and Exchange Commission Rule 10b 5, "where an actor knowingly employs deceptive devices and contrivances as part of a scheme to defraud investors in another public company, but makes no affirmative misrepresentations to the market." William S. Lerach, Esq., at Lerach, Coughlin, Stoia, Geller, Rudman & Robbins LLP, in San Diego, California, lead counsel for Enron's investors, have argued that "the banks should be held accountable because the Fifth Circuit's decision gives other corporations the green light to commit fraud without consequence in the future, threatens the credibility of the securities markets, and leaves investors without any legal recourse." The Supreme Court refused to hear on Jan. 22, 2008, the investors' arguments in the class action lawsuit, which targeted companies such as Merrill Lynch & Co., Credit Suisse First Boston and Barclays Bank PLC. The decision followed a prior ruling that limited Enron stockholders to pursue third parties. Now that the Supreme Court has rejected the case, the Associated Press relates, "I think that the chances of succeeding on a scheme liability theory are nearly zero," said Greg Markel, corporate clients representative in securities fraud lawsuits. However, Ted Frank, director of the AEI Legal Center for the Public Interest, said in a statement that the Supreme Court decision is a "victory for investors." As Mr. Frank explained, after the district court erroneously held that the Enron shareholders' case could go forward as a class action, "with plaintiffs claiming total liability of US$40 billion, many banks surrendered when offered a chance to settle for less than a nickel on the dollar, and innocent shareholders paid US$7.3 billion in settlements, about US$700 million of which was diverted to attorneys." Mr. Frank points out that: (a) The plaintiffs' bar had been pushing for a gigantic expansion of private litigation, and it is enormously beneficial to investors that the Court kept that power in check. (b) By shutting the door on such claims, investors will not have their investments dissipated by litigation costs. (c) The Supreme Court's decision is consistent with Congress' decision to refuse to create a civil claim. (d) One can help investors without paying millions to trial lawyers. Investors are already well-protected by existing laws and regulations and the SEC has criminal and civil enforcement authority against real "secondary violators." Enron stockholders could seek to revive their case in the lower federal courts, though the Fifth Circuit has ruled against them once before, AP says. Enron lawyers have said that they will have one more go at seeking to show that the banks misled the public on the company's financial status. To date, Enron investors have settled for approximately US$7,300,000,000 from financial institutions, including JPMorgan Chase & Co. and Citigroup Inc. The stockholders are seeking more than US$30,000,000,000 from Merrill Lynch, Credit Suisse and Barclays Bank. About Enron Corp. Based in Houston, Texas, Enron Corporation filed for chapter 11 protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtors. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. The Debtors filed their Chapter Plan and Disclosure Statement on July 11, 2003. On Jan. 9, 2004, they filed their fifth Amended Plan and on the same day the Court approved the adequacy of the Disclosure Statement. On July 15, 2004, the Court confirmed the Debtors' Modified Fifth Amended Plan and that plan was declared effective on Nov. 17, 2004. (Enron Bankruptcy News, Issue No. 202; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ENRON CORP: Retrial for Two Ex-Merrill Lynch Executives Delayed --------------------------------------------------------------- The Honorable Ewing Werlein of the U.S. District Court for the Southern District of Texas has delayed the Enron Corp.-related conspiracy and wire fraud retrial of former Merrill Lynch executives Daniel Bayly and Robert S. Furst. The trial was scheduled to start next week but Judge Werlein granted the delay because Messrs. Bayly and Furst, as well as third executive James A. Brown, who is scheduled for a separate retrial, have filed an appeal with the Fifth Circuit Court of Appeals in New Orleans asking the court to overturn Judge Werlein's prior ruling not to dismiss all charges. In 2004, a jury in the District Court for the Southern District of Texas convicted Messrs. Bayly, Furst, and Brown; fourth Merrill Lynch executive William Fuhs; and former Enron finance executive Dan Boyle for their participation in a bogus sale to Merrill Lynch of Enron's power barges moored off the coast of Nigeria to the brokerage in 1999. According to Bloomberg News, the transaction enabled Enron to disguise a loan as a sale on its books. The Fifth Circuit reversed the convictions in 2006, rejecting the government's "honest services fraud theory." The appeals court said, however, that its opinion "should not be read to suggest that no dishonest, fraudulent, wrongful or criminal act has occurred," CFO.com reported. Prosecutors removed the "honest services" wording from their indictment, setting the stage for the retrial. Earlier this month, Judge Werlein rejected the former executives' request to dismiss the case against them because a retrial would violate their constitutional protections against double jeopardy, the Associated Press relates. Judge Werlein found the double jeopardy claim "lacks merit" but also found the claim was not "frivolous" or made "solely for the purpose of delay," according to AP. Hence, any retrials could not go forward if an appeal was made. Attorneys for the three executives have argued that "no crime was committed by the Merrill Lynch executives because Enron orchestrated the scheme and that no money or property was lost," AP says. Messrs. Bayly, Furst and Brown are free on bond, according to AP. Mr. Bayly was serving a 2.5-year sentence; Mr. Furst three years, and Mr. Brown a three-year, 10-month term. Mr. Fuhs had his convictions erased by the appeals court for lack of evidence and he cannot be retried. Mr. Boyle did not appeal and is now free after serving a three-year, 10-month prison term. About Enron Corp. Based in Houston, Texas, Enron Corporation filed for chapter 11 protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtors. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. The Debtors filed their Chapter Plan and Disclosure Statement on July 11, 2003. On Jan. 9, 2004, they filed their fifth Amended Plan and on the same day the Court approved the adequacy of the Disclosure Statement. On July 15, 2004, the Court confirmed the Debtors' Modified Fifth Amended Plan and that plan was declared effective on Nov. 17, 2004. (Enron Bankruptcy News, Issue No. 202; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ENRON CORP: Seeks US$9 Mln in Remedies from Hewitt Associates ------------------------------------------------------------- Enron Creditors Recovery Corp., the successor to bankrupt Enron Corp., has asked the Honorable Melinda Harmon of the U.S. District Court for the Southern District of Texas to grant remedies from benefits outsourcing firm Hewitt Associates Inc., for erroneous calculations that caused misallocation of US$22,000,000 in Enron Corp. Savings Plan assets and property. According to the Enron creditors, thousands of settlement fund claimants were incorrectly distributed funds due to Hewitt's admitted mistakes, including an internal software glitch. The fault led to led to 7,700 ex-workers being overpaid, and about 12,800 being underpaid, the Associated Press reports. In 2006, former Enron employees received about US$89,000,000, the first payment that is part of a lawsuit settlement over money they lost through Enron's employee stock ownership and 401(k) plans, AP relates. Enron asserted that even after efforts to get back the money that was overpaid, the settlement fund is still US$9,150,000 short as it prepares to send out revised allocations to fix the problems from the computer glitch. "Hewitt has once again failed to live up to its commitment to fully fund the shortfall it created," John Ray III, president and chairman of Enron Creditors Recovery Corp., told AP. Hewitt spokeswoman Maurissa Kanter said in a statement that, while "[i]t is important to note that Enron, as the plan sponsor, has the obligation to fund any shortfall to its participants," the firm has been trying "to reach an agreement that would allow for the immediate funding of the shortfall to these participants." "Unfortunately, Enron has chosen to take this action, which significantly throws into doubt the ability... to achieve a resolution that will allow for the payment of the funds to the impacted participants in the near future," AP quoted Hewitt's statement as saying. "We're asking [Hewitt] pay the US$9 million for their inexplicable mistake," insists Enron spokesman Harlan Loeb, according to the Houston Chronicle. Mr. Loeb adds that it is "ludicrous" for Hewitt to say Enron should make up for the error. "Hewitt's own counsel admitted responsibility for the misallocation in court." Enron Proposes Loan and Overpayments Recovery Enron is suggesting the money be a loan, followed by an effort to recover overpayments that went to those who are not due more money in the second series of payments, the Houston Chronicle reports. Accordingly, Enron proposes that anything retrieved will go back to Hewitt. Employees who were overpaid the first time around but are still due more will receive smaller second payments to adjust for the miscalculations. Hewitt has not replied formally to the fall lawsuit or to Enron's recent request for US$9,150,000, according to the Houston Chronicle. The second set of payments, totaling around US$129,000,000, is still pending in discussions about how to address the errors in the first payments. A different company will handle the second payments, Enron's Chicago-based lawyer, Peter Rush, told the chronicle. Mr. Rush said it will be up to Judge Harmon whether to follow Enron's suggestion that Hewitt put up the US$9,150,000 to allow the distribution to go forward. About Enron Corp. Based in Houston, Texas, Enron Corporation filed for chapter 11 protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtors. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. The Debtors filed their Chapter Plan and Disclosure Statement on July 11, 2003. On Jan. 9, 2004, they filed their fifth Amended Plan and on the same day the Court approved the adequacy of the Disclosure Statement. On July 15, 2004, the Court confirmed the Debtors' Modified Fifth Amended Plan and that plan was declared effective on Nov. 17, 2004. (Enron Bankruptcy News, Issue No. 202; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) F L ALUMINIUM: Calls In Liquidators from Moore Stephens ------------------------------------------------------- Colin Prescott, Nigel Price and Mark Bowen of Moore Stephens LLP were appointed joint liquidators of F L Aluminum Ltd. (formerly Fineline Aluminium Ltd.) on Jan. 16, 2008, for the creditors' voluntary winding-up procedure proceeding. The joint liquidators can be reached at: Moore Stephens LLP 1-2 Little King Street Bristol BS1 4HW England HEATFAST MECHANICAL: Appoints Liquidators from Mazars ----------------------------------------------------- Simon David Chandler and Alistair Steven Wood of Mazars LLP were appointed joint liquidators of Heatfast Mechanical Services Ltd. (formerly Pastsure Ltd.) on Jan. 15 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Mazars LLP The Broadway Dudley DY1 4PY England NEW FOREST: Claims Filing Period Ends March 1 --------------------------------------------- Creditors of New Forest Smoothies Ltd. have until March 1, 2008, to send in their full names, their addresses and descriptions full particulars of their debts and claims, and names and addresses of their solicitors (if any) to: Nigel Ian Fox Joint Liquidator Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England Nigel Ian Fox and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint liquidators of the company on Jan. 18 by resolutions of members and creditors. NORTHERN ROCK: FSA Fails as Regulator, Treasury Committee Says -------------------------------------------------------------- The Financial Services Authority systematically failed in its regulatory duty to ensure that Northern Rock plc would not pose a systemic risk, and this failure contributed significantly to the difficulties, and risks to the public purse, that have followed, a Treasury Committee report says. The report revealed that the FSA has acknowledged that there were clear warning signals about the risks associated with Northern Rock's business model, both from its rapid growth as a company and from the falls in its share price from February 2007 onwards. However, insofar as the FSA undertook greater "regulatory engagement" with Northern Rock, this failed to tackle the fundamental weakness in its funding model and did nothing to prevent the problems that came to the fore from August 2007 onwards. According to the report, if the FSA was "very unhappy" with the stress testing conducted by Northern Rock, it appears to have failed to convey the strength of its concerns to the Board of Northern Rock, and to secure remedial action. Although the Board of Northern Rock undertook some stress testing of its own business model, it proved to have been thoroughly inadequate. It was the responsibility of the FSA to ensure that the work of the Board of Northern Rock was sufficient to the task. The FSA failed in its duty to do this. The report concluded that FSA did not supervise Northern Rock properly. It did not allocate sufficient resources or time to monitoring a bank whose business model was so clearly an outlier; its procedures were inadequate to supervise a bank whose business grew so rapidly. The committee is concerned about the lack of resources within the FSA solely charged to the direct supervision of Northern Rock. The failure of Northern Rock, while a failure of its own Board, was also a failure of its regulator. As the Chancellor of the Exchequer Alistair Darling notes, the FSA exercises a judgment as to which "concerns" about financial institutions should be regarded as systemic and thus require action by the regulator. Response of the FSA "As we have already acknowledged publicly, there were clearly supervisory failings in relation to Northern Rock and we are already addressing these. We will also examine carefully any further lessons that emerge from our internal review of the supervision of Northern Rock. We will be publishing the conclusions of that review in March," the FSA said in a statement. "We intend to study carefully the Committee's report and will respond more fully in due course. The report will inform our input into the Tripartite Authorities' wider consideration of reform, which is currently underway." Responsibility of the Board of Northern Rock The report stated that the directors of Northern Rock were the principal authors of the difficulties that the company has faced since August 2007. It is right that members of the Board of Northern Rock have been replaced, though haphazardly, since the company became dependent on liquidity support from the Bank of England. The high-risk, reckless business strategy of Northern Rock, with its reliance on short- and medium-term wholesale funding and an absence of sufficient insurance and a failure to arrange standby facility or cover that risk, meant that it was unable to cope with the liquidity pressures placed upon it by the freezing of international capital markets in August 2007. Given that the formulation of that strategy was a fundamental role of the Board of Northern Rock, overseen by some directors who had been there since its demutualization, the failure of that strategy must also be attributed to the Board. The non-executive members of the Board, and in particular the Chairman of the Board, the Chairman of the Risk Committee and the senior non-executive director, failed in the case of Northern Rock to ensure that it remained liquid as well as solvent, to provide against the risks that it was taking and to act as an effective restraining force on the strategy of the executive members. Handling the Support Operation and Stopping the Run Mr. Darling was right to view Northern Rock as posing a systemic risk to the financial system and to authorize the Bank of England's support facility. However, the Tripartite authorities did not prepare adequately for that support operation. Those authorities and Northern Rock ought to have strained every sinew to finalize the operation and announce it within hours rather than days of the decision to proceed with the operation. The report declared that the Tripartite authorities at deputies level failed to plan in advance for the announcement of the Government guarantee on Northern Rock deposits that proved necessary to stop the run. Mr. Darling, however, stressed that he had done the "right thing" to protect savers' investments, adding he will set out plans to strengthen the Bank of England and the FSA, BBC News relates. Measures for Handling Failing Banks The Treasury Committee recommends a series of measures for handling "failing" banks in an orderly manner and in a way that insulates taxpayers and small depositors from the risk of banks failing. The committee recommends that a relevant authority be given power to acquire information relating to individual financial institutions and to take action in relation to an institution in specified circumstances. It also proposes a special resolution regime for failing banks to enable smooth administration of such a bank to be combined with arrangements to ensure that insured deposits are safe and accessible. Depositor Protection The committee recommends the establishment of a Deposit Protection Fund to be funded by participating institutions. A deposit protection scheme must be simple and transparent. The "co-insurance" model of deposit protection-whereby small depositors stand to lose some of their money in the event of a bank closing-is discredited. Ensuring the speedy release of funds under any scheme is of critical importance, and the committee proposes measures to provide for this. Lessons Learned The committee found out that there was a significant failure of the Tripartite arrangements in September 2007, and lessons must be learned from that failure. The financial system in the United Kingdom would not be well-served by a dismantling of the Tripartite arrangements. However, the current arrangements lack a clear leadership structure or a strategy for effective communication with the public. Reforms A single authority ought to be given the new powers for handling failing banks, together with responsibility for the Deposit Protection Fund. There is a need for "creative tension" within the regulatory system, and so these powers and responsibilities should not be granted to the FSA. The committee proposes the creation of a new post of Deputy Governor of the Bank of England and Head of Financial Stability. It sets out how this new post and the accompanying Office will relate to the existing responsibilities of the Bank of England and to the other Tripartite authorities. A full-text copy of the Treasury Committee's report is available for free at: http://ResearchArchives.com/t/s?2779 About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported in the TCR-Europe on Jan. 23, 2008, Standard & Poor's Ratings Services lowered the rating on Northern Rock's EUR400 million preference shares and the rating on the EUR400 million notes issued by Saphir Finance PLC and secured over Northern Rock's preference shares to 'B' from 'BB' and remain on CreditWatch with developing implications. The ratings on Northern Rock's other subordinated instruments were affirmed. As reported in the TCR-Europe on Dec. 20, 2007, Moody's Investors Service downgraded to E+ from D+ Northern Rock's Bank Financial Strength Rating. The E+ maps into a Baseline Credit Assessment of B1. The bank's dated subordinated debt was downgraded to B1 from Baa1 and the undated subordinated debt and Tier-1 securities were downgraded to B3 from Baa1 and Baa3 respectively. All of these ratings have negative outlooks. Northern Rock's short- NORTHERN ROCK: Cerberus and Five Mile Eye Equity Stake ------------------------------------------------------ Cerberus Capital Management LP and Five Mile Capital Partners have expressed interest in taking an equity stake in Northern Rock plc under an independent rescue plan put together by the bank's management, The Sunday Times reports. The Sunday Times says the bank's leading shareholders, SRM Global and RAB Capital, will support a rights issue under the plan. The rights issue, the Sunday Times adds, would inject between GBP200 million and GBP250 million in new equity, majority of which will come from SRM. According to the report, Merrill Lynch and ABN Amro will underwrite the remainder of the rights issues, which is estimated to be about GBP1 billion. The Sunday Times relates the board's plan may force Luqman Arnold's Olivant and Sir Richard Branson's Virgin Group to come up with a better offer, although Cerberus and Five Mile are also likely to support a winning bid by either of the two companies. It is speculated that Olivant, whose bid is favored by SRM and RAB as it would launch a rights issue at around Northern Rock's current share price, is backed by a group of Middle Eastern investors, Mark Kleinman and Katherine Griffiths write for the Sunday Telegraph. Meanwhile, JC Flowers is contemplating rejoining the bidding race for Northern Rock after the UK government outlined a financing package for the bank, the Scotsman reveals. As previously reported in the TCR-Europe on Jan. 23, 2008, in order to maximize the prospects of delivery of a financing solution that meets the objectives of the Tripartite Authorities in the current market conditions, the Tripartite Authorities in agreement with the Board of Northern Rock requested their retained financial advisers, Goldman Sachs, to evaluate options available for financing a restructuring of the company. It would be a condition of such financing structure that the net proceeds of the financing would be used immediately following closing of any transaction to repay in full amounts due under the existing Bank of England loan facilities, together with all accrued interest (including PIK interest). Financing Timetable and Process The Tripartite Authorities are working closely with the company, and other interested parties, to develop a financing structure based on the outline terms that could be available to support a private sector solution, subject to the acceptability of detailed terms to the Tripartite Authorities, applying the principles published by HM Treasury on Nov. 19, 2007. HM Treasury and the Bank of England will have the right, at their complete discretion, to determine which, if any, of the proposals put forward by the company and other interested parties will receive their financial support. Any proposal would also need to satisfy the specific regulatory requirements of the Financial Services Authority. Accordingly, the Tripartite Authorities, acting in their respective capacities, will hold discussions with interested parties in relation to their proposals, in consultation with the Board of Northern Rock, where appropriate. Northern Rock has agreed to inform the Tripartite Authorities of any proposals made to it and make available relevant information about its group to interested parties. The process of exploring this financing structure and determining whether there is a proposal for Northern Rock under private sector ownership that is acceptable to the Tripartite Authorities, acting in their respective capacities, will need to be completed in sufficient time to enable a restructuring plan to be submitted to the European Commission by March 17, 2008, under European state aid rules. Accordingly, detailed proposals on which this plan can be based should be submitted as soon as possible and, in any event, must be received by the Tripartite Authorities by Feb. 4, 2008. A term sheet of the principal terms and conditions of the proposed financing structure will be provided to interested parties shortly. HM Treasury and the Bank of England will make arrangements for the existing Bank of England facilities to be extended up to March 17, 2008, to allow time to explore the proposed financing structure with Northern Rock and other interested parties. Financing Structure: Principal Characteristics Under the proposed financing structure, Northern Rock would sell a pool of its assets, consisting of residential mortgages, unsecured consumer loans and certain investment-grade securities, to a financing vehicle established for the purposes of the financing structure. The financing vehicle would fund the purchase of the asset pool by the issue of notes in the capital markets. The timely payment of principal and interest under the notes would be guaranteed by HM Treasury. HM Treasury's obligations under its note guarantee would be fully secured by a first priority interest in the asset pool. A fee would be payable by Northern Rock to HM Treasury for the provision of the note guarantee. All arrangement fees and expenses relating to the issue would also be paid by Northern Rock. Each class of notes would bear a market interest rate which reflects the provision of the note guarantee by HM Treasury. The maturity date for the notes would be determined upon issue and would primarily be based upon assumed levels of principal repayments in the asset pool. The asset pool would comprise assets having an appropriate value to support the issue of sufficient notes to make the payments to the Bank of England referred to above and to provide adequate liquidity for the company. Northern Rock would have the right to repurchase mortgages from the asset pool in certain circumstances, including where Northern Rock needs to substitute mortgage loans into the Granite master trust or its covered bond pool and it would otherwise have insufficient eligible mortgage loans to do so. Because the value of the asset pool would exceed the initial purchase price paid by the financing vehicle, Northern Rock would retain a subordinate interest in the asset pool which would represent the difference between the asset pool and the notes in issue. This means that any losses to the asset pool would first be borne by Northern Rock, protecting the taxpayer in the case of underperformance of the assets in the pool. About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- deals with mortgages, savings accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported in the TCR-Europe on Dec. 20, 2007, Moody's Investors Service downgraded to E+ from D+ Northern Rock's Bank Financial Strength Rating. The E+ maps into a Baseline Credit Assessment of B1. The bank's dated subordinated debt was downgraded to B1 from Baa1 and the undated subordinated debt and Tier-1 securities were downgraded to B3 from Baa1 and Baa3 respectively. All of these ratings have negative outlooks. Northern Rock's short- term rating was affirmed at Prime-1. As reported in the TCR-Europe on Sept. 28, 2007, Standard & Poor's Ratings Services placed its 'A-/A-1' counterparty credit ratings on U.K. bank Northern Rock PLC on CreditWatch with developing implications. At the same time, the 'BBB' subordinated, 'BB' junior subordinated, and 'A-' senior unsecured debt ratings were placed on CreditWatch with developing implications. UK BAKERIES: Creditors' Meeting Slated for Feb. 8 ------------------------------------------------- Creditors of UK Bakeries Ltd. (Company Number 00350365) will meet at 10:30 a.m. on Feb. 8, 2008, at: Ramada Jarvis Granby Street Leicester 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 Feb. 7, 2008, at: John Anthony Lowe Joint Administrative Receiver Begbies Traynor The Crescent King Street Leicester LE1 6RX Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. ********* 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. 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