/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080215.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, February 15, 2008, Vol. 9, No. 33 Headlines A U S T R I A AB-YZ LLC: Claims Registration Period Ends March 19 ALFRED GATTRINGER: Claims Registration Period Ends March 18 ALPHA INSPECT: Claims Registration Period Ends March 19 BAUMEISTER ING. MULLY: Claims Registration Period Ends March 11 IMMO-MARKETING: Claims Registration Period Ends March 11 LOG-TRANS: Claims Registration Period Ends March 17 B E L G I U M CHIQUITA BRANDS: Completes US$200MM Offering of 4.25% Sr. Notes LEVI STRAUSS: Nov. 25 Balance Sheet Upside-Down by US$398 Mln POPE & TALBOT: Trout Lake Property Put to InterFor APA POPE & TALBOT: Asks Court to Set April 3 as Claims Bar Date POPE & TALBOT: Can Sell Pulp Business Assets to PT Pindo Deli POPE & TALBOT: Can Sell Remaining Wood Products to Fox Lumber SOLUTIA INC: Lenders Seek Clarification of Funding Commitment SOLUTIA INC: Resolves EPA Environmental Claim for US$3,600,000 F R A N C E ALCATEL-LUCENT: Forms Long-Term Evolution Joint Venture with NEC BOSTON SCIENTIFIC: Will Pay US$431 Mln in Stent Patent Dispute GENERAL CABLE: Earns US$208.6 Million in Full Year 2007 INTELSAT LTD: Appoints Messrs. Spengler & Guillemin as EVP & SVP G E O R G I A BANK OF GEORGIA: Share Offering Raises US$100 Million G E R M A N Y DELME BAU: Claims Registration Period Ends March 5 DIE BRILLE: Claims Registration Period Ends March 5 DIELER & TREPPKE: Claims Registration Period Ends March 11 FEIL WARENHANDEL: Claims Registration Period Ends March 5 HM FACHMARKTE: Claims Registration Period Ends March 10 HOLZBISCHOFF GMBH: Claims Registration Period Ends March 11 IKB DEUSTCHE: German Government Pioneers EUR1.5 Billion Bail-Out INTER OBJEKT: Claims Registration Period Ends March 11 IPAK GMBH: Claims Registration Ends March 11 LICH VERWALTUNGS: Claims Registration Period Ends March 3 MICAS GMBH: Claims Registration Period Ends March 11 MOEBEL-THATE AUGUST: Creditors' Meeting Slated for February 28 MULTITEC SYSTEM: Claims Registration Period Ends March 11 MUSICSELLER 24: Claims Registration Ends March 10 REDA IMPORT: Claims Registration Ends March 10 REHN & BUSCH: Claims Registration Period Ends March 3 SPECTRUM BRANDS: Dec. 30 Bal. Sheet Upside-Down by US$141.2 Mln SUPREME ITALY: Claims Registration Ends March 10 WAT-AUTOTEILE GMBH: Claims Registration Ends March 10 H U N G A R Y PROPEX INC: Gets Access to Additional US$40 Mln of DIP Financing PROPEX INC: IRS Demands Filing of Form 941 for Third Qtr. 2007 PROPEX INC: Shaw and IRS Balk at BNP Paribas DIP Fund Agreement I R E L A N D HALYARD CDO I: Credit Deterioration Cues Moody's to Cut Ratings I T A L Y ALITALIA SPA: Trims Pretax Losses to EUR362.92 Million in 2007 BERRY PLASTICS: Completes Acquisition of Captive Plastics Inc. CARROZZERIA BERTONE: Turin Court Declares Firm Insolvent FIAT SPA: Joint Venture with Credit Agricole Earns EUR119 Mln K A Z A K H S T A N AGRO KONA-INVEST: Proof of Claim Deadline Slated for March 14 AKBAZJAN LLP: Creditors Must File Claims by March 14 ANA-INSHAAT LLP: Claims Filing Period Ends March 14 INTIS AGRO: Creditors' Claims Due on March 14 LEX BUSINESS: Claims Registration Ends March 14 MFS GLOBENET: Proof of Claim Deadline Slated for March 14 RETRO STROY: Creditors Must File Claims by March 14 K Y R G Y Z S T A N BISHFU LLC: Claims Filing Period Ends February 22 SKAP VOSTOK: Creditors Must File Claims by February 28 L U X E M B O U R G MILLICOM INTERNATIONAL: Earns US$697.1 Million in Full Year 2007 N O R W A Y NORTEL NETWORKS: Plans Joint Venture with Motorola R U S S I A CHULMAN LLC: Tatarstan Bankruptcy Hearing Slated for April 15 ENTERPRISE ECOLOGICAL: Creditors Must File Claims by February 28 KHAKASSKIY DIARY: Creditors Must File Claims by March 28 METALLURG-STROY: Creditors Must File Claims by February 28 ROSNEFT OIL: BP Joint Venture Lulls Sakhalin Drilling Operations STAVROSS-AGRO: Stavropol Bankruptcy Hearing Slated for March 20 TIMASHEVSKIY OJSC: Asset Sale Slated for February 26 VELIZH-FLAX OJSC: Court Starts Bankruptcy Supervision Procedure S W I T Z E R L A N D AAR BAUMONTAGEN: Thurgau Court Closes Bankruptcy Proceedings C-UNO JSC: Creditors' Liquidation Claims Due by Feb. 21 RS GASTRO: Creditors' Liquidation Claims Due by Feb. 28 SHOE SHINE: Creditors' Liquidation Claims Due by Feb. 21 SOURCING CENTRE: Creditors' Liquidation Claims Due by Feb. 25 TOP SPECIAL: Thurgau Court Closes Bankruptcy Proceedings TWIN FALLS: Creditors' Liquidation Claims Due by Feb. 22 TWINLOGIC LLC: Creditors' Liquidation Claims Due by Feb. 20 U K R A I N E IZIUMAL AGRICULTURAL: Creditors Must File Claims by February 27 KOZHANKA SUGAR: Creditors Must File Claims by February 27 LAN-AGRIKO LLC: Proofs of Claim Deadline Set February 24 PERVOMAYSKY AGRICULTURAL: Creditors Must File Claims by Feb. 27 RINGO-TRADE LLC: Creditors Must File Claims by February 27 SVITANOK LLC: Creditors Must File Claims by February 27 TRADING HOUSE: Creditors Must File Claims by February 24 U N I T E D K I N G D O M AFC BOURNEMOUTH: Enters Into Administration BLUE ROOM: Names Neil Francis Hickling Liquidator CHRYSLER LLC: U.S. Bankruptcy Court Evaluates Tooling Request COLLINS & AIKMAN: Bayer Unit Buys IP Rights on Thermoplastics CONCORDIA BUS: S&P Raise Ratings to B- in Line with Parent COTT CORP: Net Loss Rises to US$76.8MM in Quarter Ended Dec. 29 CUMMINS INC: Board Declares 12.5 Cents Per Share Dividend ELECTRONIC DATA: Bob Hershey to Lead SAP Consulting Practice FARROW INVESTMENTS: HSBC Bank Brings In PwC as Receivers FORD MOTOR: Backs Up Chrysler's Tooling Request from Plastech GAMEKEEPA FEEDS: Taps Milner Boardman as Administrators GENERAL MOTORS: Backs Up Chrysler's Request to Recover Equipment INVENSYS PLC: Will Redeem Outstanding Bonds on March 17 LDA INTERIOR: Claims Filing Period Ends March 14 MANCHESTER MARBLE: Names Administrators from Milner Boardman MARTIN EVANS: Brings In Liquidators from Mazars MAXJET AIRWAYS: Taps M. Beyer as Expert Valuation Consultants MIDLAND SHEETMETAL: Taps Liquidators from PricewaterhouseCoopers MTB EQUIPMENT: NatWest Bank Taps Menzies as Receivers OAKLEY HOTELS: Calls In Liquidators from Tenon Recovery PACKAGING ROLLER: Appoints Joint Administrators from Menzies SCO GROUP: Eyes 26% Job Cuts to Reduce Expenses SUN MICROSYSTEMS: Signs Stock Purchase Deal with innotek SUN MICROSYSTEMS: To Launch Sun Vietnam With Frontline Tech TATA MOTORS: Plans to Bring Hybrid Nano to Europe in Four Years TATA MOTORS: Awards Speed Sensor Supply Deal to TT Electronics WR GRACE: Seeks Court OK to Extend DIP Facility Until April 2010 WR GRACE: Asbestos Claims Estimation Trial to Resume March 24 WR GRACE: Wants to Contribute US$17 Million to Pension Plan * BOOK REVIEW: A Legal History of Money in the United States ********* ============= A U S T R I A ============= AB-YZ LLC: Claims Registration Period Ends March 19 --------------------------------------------------- Creditors owed money by LLC AB-YZ (FN 151497s) have until March 19, 2008, to file written proofs of claim to court- appointed estate administrator Arno Maschke at: Dr. Arno Maschke c/o Dr. Peter Schulyok Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: maschke@sup.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:10 a.m. on April 2, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 24, 2008 (Bankr. Case No. 2 S 9/08y). Peter Schulyok represents Dr. Maschke in the bankruptcy proceedings. ALFRED GATTRINGER: Claims Registration Period Ends March 18 ----------------------------------------------------------- Creditors owed money by LLC Alfred Gattringer Moebel- Fachwerkstatte (FN 82374p) have until March 18, 2008, to file written proofs of claim to court-appointed estate administrator Gerhard Nathschlager at: Mag. Gerhard Nathschlager Eisenhandstrasse 15 4020 Linz Austria Tel: 0732/775544-13 Fax: 0732/775544-10 E-mail: insolvenz@bzp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on April 1, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Hall 522 Fifth Floor Linz Austria Headquartered in Steyregg, Austria, the Debtor declared bankruptcy on Jan. 23, 2008 (Bankr. Case No. 17 S 6/08v). ALPHA INSPECT: Claims Registration Period Ends March 19 ------------------------------------------------------- Creditors owed money by LLC ALPHA INSPECT Warenpruefung (FN 152206h) have until March 19, 2008, to file written proofs of claim to court-appointed estate administrator Klemens Dallinger at: Dr. Klemens Dallinger c/o Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Austria Tel: 513 28 33 E-mail: dallinger@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:10 a.m. on April 2, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 23, 2008 (Bankr. Case No. 2 S 8/08a). Guenther Hoedl represents Dr. Dallinger in the bankruptcy proceedings. BAUMEISTER ING. MULLY: Claims Registration Period Ends March 11 --------------------------------------------------------------- Creditors owed money by LLC Baumeister Ing. MULLY & Partner Bau (FN 81817w) have until March 11, 2008, to file written proofs of claim to court-appointed estate administrator Katharina Twaroch- Nowak at: Mag. Katharina Twaroch-Nowak Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei.twaroch@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on March 25, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 23, 2008 (Bankr. Case No. 28 S 12/08f). IMMO-MARKETING: Claims Registration Period Ends March 11 -------------------------------------------------------- Creditors owed money by KEG IMMO-MARKETING Boigner (FN 127105w) have until March 11, 2008, to file written proofs of claim to court-appointed estate administrator Guenther Hoedl at: Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Austria Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on March 25, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 23, 2008 (Bankr. Case No. 28 S 155/07h). LOG-TRANS: Claims Registration Period Ends March 17 --------------------------------------------------- Creditors owed money by LLC LOG-TRANS Transport (FN 103131p) have until March 17, 2008, to file written proofs of claim to court-appointed estate administrator Gerhard Wagner at: Dr. Gerhard Wagner Spittelwiese 6 4020 Linz Austria Tel: 77 58 00 Fax: 77 58 00 - 15 Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on March 31, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Room 522 Fifth Floor Linz Austria Headquartered in Haid bei Ansfelden, Austria, the Debtor declared bankruptcy on Jan. 23, 2008 (Bankr. Case No. 12 S 3/08s). ============= B E L G I U M ============= CHIQUITA BRANDS: Completes US$200MM Offering of 4.25% Sr. Notes --------------------------------------------------------------- Chiquita Brands International, Inc., closed its offering of US$200 million aggregate principal amount of 4.25% Convertible Senior Notes, including the full exercise by the underwriters of the US$25 million overallotment option granted by the company. Net proceeds of approximately US$194 million will be used to repay a portion of the outstanding amounts under the company's Term Loan C of its senior secured credit facility. The convertible senior notes mature in 2016 and will bear interest at a rate of 4.25% per annum, payable semi-annually in arrears, beginning Aug. 15, 2008. The Notes are convertible, under certain circumstances described in the prospectus, at an initial conversion rate of 44.5524 shares of common stock per US$1,000 original principal amount of Notes, equivalent to an initial conversion price of approximately US$22.45 per share of Chiquita common stock, subject to adjustment. This represents an initial premium of approximately 32.5% to the last reported sale price of Chiquita's common stock on Feb. 6, 2008, of US$16.94. The Notes are unsecured unsubordinated obligations of Chiquita Brands International, Inc., and rank equally with any unsecured unsubordinated indebtedness Chiquita may incur. Beginning Feb. 19, 2014, Chiquita may call the Notes for redemption if the common stock trades above 130% of the conversion price, or initially approximately US$29.19 per share, for at least 20 of the 30 trading days preceding the redemption notice. The offer and sale of the convertible senior notes were made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. were the joint book-running managers for the offering. A prospectus relating to the offering may be obtained from: Goldman, Sachs & Co. Prospectus Department 85 Broad Street New York, New York 10004 Fax: 212-902-9316 or E-mail: prospectus-ny@ny.email.gs.com A prospectus may also be obtained from: Morgan Stanley & Co. Inc. Prospectus Department 180 Varick Street New York, New York 10014 Tel: 1-866-718-1649 E-mail: prospectus@morganstanley.com Cincinnati, Ohio-based Chiquita Brands International Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Belgium, Columbia, Germany, Panama, Philippines, among others. * * * Chiquita Brands International Inc. continues to carry Moody's Investors Service's B3 long-term corporate family and Caa2 senior unsecured debt ratings which were placed on November 2006. The outlook is negative. LEVI STRAUSS: Nov. 25 Balance Sheet Upside-Down by US$398 Mln ------------------------------------------------------------- Levi Strauss & Co.'s balance sheet, as of Nov. 25, 2007, showed total assets of US$2.85 billion and total liabilities of US$3.24 billion, resulting in a US$398 million stockholders' deficit. For the full year of 2007, the company reported US$460.3 million of net income on US$4.1 billion of net sales compared to US$239 million of net income on US$4.2 billion of net sales in 2006. Net revenues for the fourth quarter improved 2 percent to US$1.3 billion compared to the same period last year, and increased 4 percent to US$4.4 billion for fiscal 2007 compared with the previous year on a reported basis. Excluding currency effects, net revenues decreased by 2 percent in the quarter compared with the same period in 2006, reflecting declining sales in North America. For the fiscal year, net revenues increased 1 percent excluding currency effects compared to 2006, driven by sales growth in Asia-Pacific emerging markets, Europe and the U.S. Levi's(R) brand. Income before income tax increased 9 percent to US$376 million for fiscal 2007 compared with US$345 million in fiscal 2006. Net income increased in the fourth quarter by 179 percent or US$171 million to US$267 million compared to the same period last year. "In 2007 we continued to make good progress on growing the Levi's(R) brand around the world, upgrading our Levi's(R) and Dockers(R) products, and expanding our retail network, said John Anderson, president and chief executive officer. "I'm particularly pleased with the solid performance of our European business. Although the company had a challenging fourth quarter, we improved our financial strength in 2007." "Looking ahead, we anticipate a difficult retail environment in several markets around the world. We will focus on product innovation, retail expansion and optimizing our global presence in more than 110 countries," said Mr. Anderson. "We continued to improve our financial strength in 2007, delivering solid operating margins while investing in our brands and systems. We also reduced debt by more than US$250 million and secured lower interest rates in our debt restructuring actions taken during the year, helping us further reduce interest expense, said Hans Ploos van Amstel, Chief Financial Officer. "In 2008, we are continuing to focus on cash flow and building our brands. Our improved financial strength will help us as we face the economic uncertainty ahead. About Levi Strauss & Co. Headquartered in San Francisco, California, Levi Strauss & Co. - - http://www.levistrauss.com/-- is a branded apparel company. The company designs and markets jeans and jeans-related pants, casual and dress pants, tops, jackets and related accessories for men, women and children under its Levi's, Dockers and Levi Strauss Signature brands in markets around the world. Levi Strauss & Co. distributes its Levi's and Dockers products primarily through chain retailers and department stores in the United States, and through department stores, specialty retailers and franchised stores abroad. The company distributes its Levi Strauss Signature products through mass channel retailers in the United States and abroad. The company employs a staff of approximately 10,000 worldwide, including approximately 1,010 at the company's San Francisco, California headquarters. Levi Strauss Europe is headquartered in Brussels, Belgium, while Levi's Asia Pacific division is based in Singapore. Levi's has operations in Brazil, Mexico, Chile and Peru. * * * In October 2007, Fitch Ratings assigned a 'BB+' rating to Levi Strauss & Co.'ssecond amended and restated US$750 million 5-year Asset-Based Revolving Credit Facility. The rating outlook is stable. Levi Strauss carries Fitch's BB- Issuer Default Rating; BB+ Bank Credit Facility rating; and BB- Senior Unsecured Notes rating. POPE & TALBOT: Trout Lake Property Put to InterFor APA ------------------------------------------------------ PricewaterhouseCoopers Inc., as monitor of the proceedings commenced by Pope & Talbot Ltd. and its subsidiaries under the Companies' Creditors Arrangement Act, reports that through negotiations with the British Columbian Government with respect to required approvals for the sale of the Applicants' wood business assets to International Forest Products Limited, the Applicants' Trout Lake property was added to the InterFor Asset Purchase Agreement to maintain it as part of a tree farm license. The Trout Lake property was originally part of the Applicants' surplus lands sales process, and had an asking price of CDN$595,000. The Applicants and the Monitor believe this in an equitable transaction. The Monitor notes that based on discussions it had with the British Columbian Government and the Applicants, the various B.C. Government approvals for the transfer of certain licenses, permits, leases and freehold lands appears to be progressing towards an early April 2008 date. As reported in the Troubled Company Reporter on Jan. 14, 2008, the U.S. Bankruptcy Court for the District of Delaware approved the sale, pursuant to an amended purchase agreement, of the Debtors' wood products business to InterFor for US$69,000,000. 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Asks Court to Set April 3 as Claims Bar Date ----------------------------------------------------------- To address the potential inconsistency between the treatment of claims incurred but not paid by Pope & Talbot Inc. and its debtor-affiliates between the October 28 Canadian Filing Date and the November 19 Chapter 11 Petition Date, the Debtors obtained permission of the U.S. Bankruptcy Court for the District of Delaware to pay Gap Claims in the same manner as if the Claims had arisen after the Petition Date. The Debtors do not believe that any Gap Claims remain unpaid, Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, states. "The Debtors expect to sell all of their operating assets by the end of the first quarter of 2008. Although it is not yet clear how much the Debtors will realize from the sale of their assets, the Debtors anticipate that the proposed sales will enable them to provide a distribution to their unsecured creditors pursuant to a plan of liquidation." Rule 3003(c)(2) of the Federal Rules of Bankruptcy Procedure provides that any creditor whose claim is not scheduled or whose claim is scheduled as disputed, contingent or unliquidated must file a proof of claim. Accordingly, the Debtors ask the Court to establish: -- April 3, 2008, as the deadline for creditors to assert claims arising on or before the Petition Date against the Debtors to file original, written proofs of claim; and -- May 19, 2008, as the last day by which governmental units must file claims against any of the Debtors. Ms. Jones relates that creditors should be required to submit proofs of claim only with respect to claims that arose prior to the Oct. 28, 2008 Canadian Filing Date, and not the Chapter 11 Petition Date. "Utilization of the Canadian Filing Date is appropriate to facilitate coordination of the Insolvency Proceedings," she maintains. The Debtors propose that the Bar Dates should not apply to the certain categories of claims or interests, including: (a) Administrative expenses, (b) GAP Claims, (c) Properly Scheduled Claims, (d) Previously filed claims, (e) Interests, (f) Previously Allowed Claims, (g) Intercompany Claims, (h) Claims arising on account of Notes, (i) Paid Claims, (j) Claims Against Non-Debtor Affiliates, (k) Claims relating to rejected executory contracts, and (l) Prepetition Agents' claims on non-default interest. Claims Protocol Coordination of the claims process is essential and should, among other things, maximize the efficiency of the claims process, reduce the associated costs, and avoid duplication of effort on the part of the British Columbia Supreme Court and the Bankruptcy Court, the Debtors, and the Debtors' creditors, Ms. Jones points out. The Debtors propose that any of their creditor or equity security holder may file a proof of claim or interest with either Kurtzman Carson Consultants LLC, the Debtors' claims agent, or the Monitor in the Canadian Proceedings. If a creditor files a claim with both KCC and the Monitor, the last timely filed claim will govern. The Bankruptcy Court will be the forum to determine all claims asserted against the Debtors arising principally out of their operations in the United States, and the Canadian Court will be the forum to determine all claims asserted against the Applicants, arising principally out of their operations in Canada. KCC and the Monitor will seek to establish a common list of creditor claims in respect of each of the Debtors as far as reasonably practicable. In resolving disputes relating to the terms, intent or application of the Claims Protocol, the Bankruptcy and Canadian Courts will hold a joint hearing to resolve any dispute, unless all parties involved consent to the resolution of the dispute by a single Court. As reported in the Troubled Company Reporter-Europe on Dec. 6, 2007, the Debtors asked the U.S. Bankruptcy Court for authority to implement a proposed cross-border insolvency protocol to govern the administration of the Debtors' dual proceedings between the Bankruptcy Court and the Canadian Court. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, said that a cross-border protocol is needed to ensure that: -- the Debtors' Chapter 11 cases and the CCAA insolvency proceedings are coordinated to avoid inconsistent, conflicting or duplicative activities; -- all parties are informed adequately of key issues in the Chapter 11 cases and the CCAA proceedings; -- the substantive rights of all parties are protected; and -- the jurisdictional integrity of the Bankruptcy Court and the Canadian Court is preserved. As reported in the The Troubled Company Reporter-Europe on Dec. 28, 2007, the Debtors' proposed cross-border insolvency protocol was approved by both the U.S. Bankruptcy Court and the Canadian Court. 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Can Sell Pulp Business Assets to PT Pindo Deli ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Pope & Talbot Inc. and its debtor-affiliates to sell their pulp business assets to PT Pindo Deli Pulp and Paper Mills for US$105,290,000, subject to certain adjustments, pursuant to an asset purchase agreement dated Jan. 8, 2008. The Hon. Christopher S. Sontchi approved in its entirety the terms and conditions of the Pindo Deli APA, and the transactions contemplated by the APA, including: -- the sale of the Debtors' Pulp Business Assets to Pindo Deli, free and clear of all liens or any other interest of any entity attaching to the proceeds of the Sale, except for certain permitted encumbrances other than mechanics liens; -- the Debtors' assumption and assignment to Pindo Deli of certain assigned contracts; -- Pindo Deli's assumption of certain liabilities; and -- the parties' performance under a transition services agreement which will be entered into before the closing date of the Sale, in a form reasonably satisfactory to Pindo Deli, the Official Committee of Unsecured Creditors and the Debtors' DIP Agents. The Court held that the liens and security interests of the lenders under the Debtors' DIP Loan Agreement and Prepetition Credit Agreement will attach to the proceeds of the Sale, with the same priority, validity, force and effect as the interests existed immediately prior to the closing of the Sale. In accordance with the APA, Pindo Deli has elected to exclude certain transactions from the Assigned Contracts. Judge Sontchi authorized and directed Pindo Deli to pay the Debtors, at the Closing Date, certain cure costs with respect to each Assigned Contracts, which will be deducted from the Purchase Price. Other Provisions Prior to the Court's approval of the Pindo Deli APA, 10 parties objected to the Debtors' then proposed cure amounts, in connection with the assumption and assignment of certain leases to Pindo Deli. In disputing the Debtors' Cure Amount Schedule, the Objecting Parties submitted their individual computations of the "correct amounts", most of which, provides for the additional amount of arrears that have accrued or may accrue during the Debtor's Chapter 11 proceedings. The Objecting Parties are: (1) Western Forest Products Inc., (2) Automotive Rentals, Inc., (3) ARI Financial Services Inc., (4) Georgia Pacific LLC, (5) Georgia Pacific Corporation, (6) Georgia Pacific West Inc., (7) James River Paper Company Inc., (8) James River Paper Corporation of Virginia, (9) Winthrop Resources Corporation, and (10) Canadian Forest Products Ltd. The Debtors will attempt to resolve timely objections to any cure costs. IGI Resources Inc., and BP Energy Company objected to the proposed assumption and assignment of an IGI gas management services contract, without the assumption and assignment of a related IGI gas supply contract. "To avoid confusion, the Debtors should clarify their intent by identifying properly both contracts to be assumed and assigned," Craig A. Wolfe, Esq., at Kelley Drye & Warren LLP, in New York asserted, on IGI's behalf. Linn County, Oregon and Multnomah County, Oregon are holders of secured tax claims in the Debtors' Chapter 11 proceedings. At the request of Linn County and Multnomah County, the Court held that the liens that secure the Tax Claims will attach to the sale proceeds with the same priority, validity, force and effect as existed on the Petition Date. According to Judge Sontchi, the alleged amount of Linn County's Tax Claims for the year 2007 - 2008 for US$353,440, and the alleged amount of Multnomah County's Tax Claims for the year 2007 - 2008 for US$7,998, will be escrowed, or otherwise deposited in trust or segregated by the Debtors pending release, until further order of the Court or the individual consent of Linn County and Multnomah. Judge Sontchi will decide on the objections asserted by Winthrop Resources Corporation at a hearing to be held on Feb. 26, 2008. Winthrop Resources does not object to the Debtors' decision to sell the Pulp Business Assets to Pindo Deli. Winthrop, however, does not consent to the assumption and assignment of its equipment lease with the Debtors to Pindo Deli, because the Debtors are seeking to assume and assign only a portion of the Equipment Lease which is applicable to the Debtors' Pulp Business. The Equipment Lease also applies to the Debtors' other assets and business operations, Mary F. Caloway, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, stated, on Winthrop's behalf. Moreover, she noted, the Debtors have not provided Winthrop with adequate assurance that Pindo Deli will be able to perform the lessee's obligations under the Lease. Lawson Software Inc., disputed the "assignability" of a software product license agreement and services agreement it entered into with the Debtors. The firm maintained that copyright licenses cannot be assigned without the permission of the copyright owner. No consent from any third party is required to effectuate the assumption and assignment of the Assigned Contracts, Judge Sontchi ruled. The Court also authorized the Debtors to file under seal certain exhibits that relate to: -- Key Employees, -- Unqualified Retirement Benefit Liabilities, -- Customers and Suppliers, -- Labor Matters, -- Conduct of Business Prior to the Closing, -- Salaried Employees, -- Key Contracts, and -- Fiber Presentation. A full-text copy of the Pulp Business Sale Order is available for free at http://researcharchives.com/t/s?27ff Monitor's Comments PricewaterhouseCoopers Inc., as monitor of the proceedings commenced by Pope & Talbot Ltd. and its subsidiaries under the Companies' Creditors Arrangement Act, reports that the net purchase price and other asset net realizations for the Debtors' Pulp Business Assets Sale total US$211,000,000. The Monitor believes that the Debtors' estimate should be US$3,000,000 lower as a result of certain Cure Amounts not fully provided for by the Debtors. Thus, the Monitor's revised estimate is US$208,000,000. As part of estimating the net purchase price, the Debtors have provided for a potential purchase price reduction related to the Cure Amounts. The Debtors are not yet certain which contracts Pindo Deli will assume and, therefore, the amount cannot be determined yet. The Debtors have estimated the maximum Cure Amounts to total US$7,000,000. The Monitor has reviewed this estimate, and believes that the total Cure Costs are likely understated by US$3,000,000, as a result of disputed arrears as between the Debtors and certain creditors that have not been included. Accordingly, the Monitor has estimated the Cure Amounts to aggregate US$10,000,000. Through the Chapter 11 proceedings, the Debtors sent a notice of cure amounts to all contract holders. The amounts currently claimed by creditors total US$10,000,000 -- US$7,000,000 for Canadian creditors and approximately US$3,000,000 for U.S. creditors. As noted in the Monitor's Sixth Report to the Canadian Court, there are differences in U.S. and Canadian law in relation to contracts to be assigned and the treatment of those contracts. The ultimate effect of the Pindo Deli APA may see some creditors paid prepetition debt by reason of the selection by Pindo Deli to continue their contract, the Monitor notes. The effect of the payments may be inconsistent with Canadian insolvency Law, the Monitor adds. The Debtors initially targeted to complete the Pindo Deli transaction by Feb. 15, 2008, as required by the DIP loan agreement. Certain government approvals for transferring licenses and freehold land remain to be accomplished though, according to the Monitor. It is clear that the transaction will not be completed by February 15, based on the government approvals, the Monitor points out. "The end of March appears to be the earliest that the transaction could reasonably be completed." The Pindo Deli APA provides an exclusion of any environmental liabilities that exist at the time of closing. It may not be possible to exclude this liability contractually, the Monitor points out. The Monitor maintains that had any further time been provided to the bidding process, it would not have created a financially superior transaction than the Pindo Deli transaction. Accordingly, the Monitor supports the Pindo Deli APA. As reported in the Troubled Company Reporter on Jan. 28, 2008, the Debtors sought and obtained the Court's approval of amended bidding procedures for the sale of their pulp business assets located in Halsey, Oregon; Nanaimo, British Columbia; and Mackenzie, British Columbia. The Amendment included provisions for an asset purchase agreement the Debtors entered into on Jan. 8, 2008, with PT Pindo Deli Pulp & Paper Mills, as the stalking horse bidder, with respect to the Pulp Business Assets. 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Can Sell Remaining Wood Products to Fox Lumber ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Pope & Talbot Inc. and its debtor-affiliates to sell their remaining wood products business to Fox Lumber Sales Inc. for US$750,000. Fox Lumber was highest and best bidder at an auction held on Feb. 5, 2008. The Hon. Christopher S. Sontchi approved in its entirety the asset purchase agreement between the Debtors and Fox Lumber, and the transactions contemplated by the APA, including: -- the sale of the the Debtors' Remaining Wood Products Business to Fox Lumber, free and clear of all liens and encumbrances, with any other interest of any entity attaching to the proceeds of the Sale; -- the Debtors' assumption and assignment of certain assigned contracts to Fox Lumber; and -- Fox Lumber's assumption of certain liabilities. The liens and security interests of the lenders under the Debtors' DIP Loan Agreement and Prepetition Credit Agreement will attach to the proceeds of the Sale, with the same priority, validity, force and effect as the interests existed immediately prior to the closing of the Sale, the Court ruled. So long as any amounts remain outstanding under the DIP Loan Agreement and Prepetition Credit Agreement, the proceeds from the Sale will not be used by the Debtors absent the consent of the DIP Agents and Lenders, Judge Sontchi clarified. The Court also authorized and directed the Debtors to pay, by the Closing Date, any cure costs with respect to the Assigned Contracts. No consent from any third party is required to effectuate assumption and assignment of the Assigned Contracts. All objections to the Court's Sale Order that have not been withdrawn, waived, adjourned, resolved or settled, and all reservations of rights, are overruled. Canadian Proceedings The Applicants sought the authority of the British Columbia Supreme Court to sell their Remaining Wood Products Business to Fox Lumber. Kathy L. Mah, Esq., at Stikeman Elliott LLP, in Toronto, Canada, told the Court that the Sale would provide the Applicants with the best opportunity to realize value from their Remaining Wood Products Business, and would provide immediate cash recovery to the Applicants' creditors. A full-text copy of the Remaining Wood Products Sale Bankruptcy Order is available for free at: http://researcharchives.com/t/s?2800 As reported in the Troubled Company Reporter on Jan. 28, 2008, Pope & Talbot Inc. asked the Court's authority to sell their remaining wood products business to the highest and best bidder at an auction on Feb. 5, 2008. 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. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Lenders Seek Clarification of Funding Commitment ------------------------------------------------------------- Citigroup Global Markets Inc., Goldman Sachs Credit Partners LP, Deutsche Bank Trust Company Americas and Deutsche Bank Securities Inc., are seeking a declaratory judgment that: (a) their funding obligations are conditioned upon satisfaction of the "Adverse Market Change Provision"; (b) they are not in breach of the Commitment Letter because all conditions precedent to the commitment of each Commitment Party for closing of the "Facilities" have not been met; and (c) Solutia Inc., remains obligated under the Commitment Letter to indemnify the Commitment Parties in connection with any investigation, litigation or proceeding related to the Commitment Letter or the documentation and transaction contemplated, including the cost of the Adversary Proceeding, as well as for transaction costs. D. J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, counsel for the Commitment Parties, contends that Solutia "goes to great lengths to create a smokescreen of alleged extraneous and irrelevant matters in order to distract from the fact that the Commitment Letter is a simple contract with unambiguously clear, concise and enforceable terms and conditions which have not been satisfied." These terms and conditions were heavily negotiated and agreed to in writing by the parties, Mr. Baker argues, saying that the Commitment Letter is "explicit and unequivocal." Mr. Baker also notes that one important condition to each Commitment Party's obligation to assume the risk of completing syndication and fund the loan was that there not be "any adverse change since the date of this Commitment Letter, Oct. 25, 2007, in the loan syndication, financial or capital markets generally that, in the reasonable judgment of such Commitment Party, materially impairs syndication of the Facilities." According to Mr. Baker, when the market disruptions developed in July and August, Solutia temporarily suspended its exit financing search. Solutia resumed its efforts when the markets showed signs of improvement in September. At that time, he notes, Solutia recommenced its exit financing solicitation, and each of the Commitment Parties submitted separate and independent proposals, which included an adverse market change provision. Indeed, Citigroup explicitly advised Solutia that the inclusion of an adverse market change provision was a condition for approval of the financing by its credit committee, Mr. Baker tells the U.S. Bankruptcy Court for the Southern District of New York. The precise wording of the Adverse Market Change Provision was specifically negotiated over a period of days, and several proposals and counter-proposals were exchanged, as Solutia and its advisors tried to narrow and limit the Adverse Market Change Provision, before the parties agreed to the version that appears in the executed contract, he relates. Mr. Baker further states that "there can be no doubt that the markets have changed adversely since Oct. 25, 2007" -- a fact recognized by the Federal Reserve Board, and "virtually every financial regulator, newspaper, commentator and practitioner in the world." Under the Commitment Letter, Solutia agreed to provide certain information necessary for the Commitment Parties to offer the Facilities to the market. Mr. Baker alleges that Solutia did not provide the required information until early January. Due to the adverse changes in the markets that had occurred since October 25, and despite the Commitment Parties' diligent efforts, few potential buyers have shown interest in the syndication, he avers. Mr. Baker maintains that the Commitment Parties have not breached the Commitment Letter and related agreements, and are entitled to have those agreements enforced according to their express terms. The Commitment Parties' judgment that the adverse market changes have materially impaired the syndication is "eminently reasonable" and is supported not only by their inability to syndicate the deal, but by objective evidence and views of market experts, insists Mr. Baker. Solutia Wants Counterclaims Barred Solutia tells the Court that the Counterclaims of the Commitment Parties should be barred, in whole or it part: (i) because the Commitment Parties have failed to state a claim upon which relief can be granted; (ii) by the equitable doctrine of unclean hands; and (iii) by the doctrines of estoppel, and waiver or ratification. Any recovery by the Commitment Parties would constitute unjust enrichment, Richard I. Werder, Jr., Esq., at Quinn Emanuel Urquhart Oliver & Hedges LLP, in New York, asserts, on Solutia's behalf. Solutia, at all relevant times, acted in good faith and with reasonable diligence, he says. Mr. Werder argues that the Commitment Parties' counterclaim for indemnity fails because the Commitment Letter provides, in part, that parties may not seek indemnification "to the extent such actual claim, damage, loss, liability or expense (x) is caused by the bad faith, gross negligence or willful misconduct of such Indemnified Party, as determined by a final judgment of a court of competent jurisdiction . . ." Solutia reserves the right to assert defenses, whether affirmative or otherwise, about which it presently lacks knowledge or information, but which may become available to it during the course of the Adversary Proceeding. Solutia also reserves the right to amend its answer. Retirees Committee Seeks to Intervene The Official Committee of Retirees in the Debtors' Chapter 11 cases relates that Solutia has consented to the panel's intervention as a plaintiff in the Adversary Proceeding. Representing the Retirees Committee, Daniel D. Doyle, Esq., at Spencer Fane Britt & Browne LLP, in St. Louis, Missouri, states that, as the representative of approximately 20,000 retirees who are claimholders under the Debtors' confirmed Fifth Amened Joint Plan of Reorganization, the Retirees Committee has an unconditional right to intervene in the Adversary Proceeding. The Retirees Committee also has a right to permissive intervention under Federal Rule of Civil Procedure 24 (a) or (b), Mr. Doyle adds. The outcome of the Adversary Proceeding will directly affect the Plan and will, therefore, affect future benefits to be provided to the retirees, says Mr. Doyle. Pursuant to Bankruptcy Rule 7024(c), the Retirees Committee adopts the same claims asserted in the Complaint, and adopts the Complaint as its pleading setting forth the claims for which the Retirees Committee seeks intervention as a plaintiff. Solutia Wants Testimonies Solutia seeks to compel the deposition of corporate representatives of the Commitment Parties and Citigroup Chief Executive Officer Vikram Pandit. Mr. Werder tells the Court that the Commitment Parties have refused to produce corporate representatives in response to Rule 30(b)(6) of the Federal Rules of Civil Procedure deposition notices to produce a person most knowledgeable on certain limited topics. According to Mr. Werder, the Commitment Parties have stated that, at this point, they will not designate 30(b)(6) witnesses at all. After all percipient depositions are completed, the Commitment Parties "will" consider the request to designate these witnesses. Mr. Werder argues that the Commitment Parties' actions are improper because: -- the Commitment Parties are required to produce the witness that have properly been noticed; -- the Rules do not afford a party discretion to choose who they want to testify; and -- percipient witnesses are not the same as corporate representatives. Mr. Werder notes that percipient witnesses might be third parties or employees who just happened to be in the right place at the right time to have relevant information. A 30(b)(6) witness, on the other hand, must testify about information not only known to himself, but also information known or reasonably available to the organization, he explains. The Commitment Parties' refusal to comply with Rule 30(b)(6) is "a stall tactic" to delay discovery with the hope that the clock will expire in this expedited proceeding before the deposition of their corporate representatives can be taken, Mr. Werder contends. The Court has ordered that fact witness depositions will be completed no later than Feb. 18, 2008. The 30(b)(6) notices called for the designation of witnesses to testify about: (a) the history and extent of each Commitment Party's use of Adverse Change Provisions or Market MAC Provisions in commitment letters, agreements, and other documents relating to the provision of financing; (b) all instances in which each Commitment Party has declined, refused or failed to fund a loan facility or loan facilities by invoking, citing, or otherwise relying on an Adverse Change Provision or Market MAC Provision, and all instances in which each Commitment Party has threatened to call a MAC; and (c) the reason that each Commitment Party decided not to fund Solutia's Exit Financing package. With respect to Mr. Pandit, Solutia has noticed the need to depose the CEO on Feb. 7, 2008. However, counsel to Citigroup said in a conference call to Solutia's counsel that Citigroup would not produce Mr. Pandit because Solutia had no good faith basis to assert the CEO was involved in any issue relevant to the case. According to Susheel Kirpalani, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, in New York, the decision not to fund Solutia's Exit Financing was made by none other than Mr. Pandit himself. Only Mr. Pandit possesses unique knowledge as to the decision he himself made to withdraw from fund the Exit Financing in reliance upon market conditions -- a first ever for Citigroup, Mr. Kirpalani tells the Court. The Exit Financing is crucial to Solutia's hope to emerge from Chapter 11 as planned, and to financially support its confirmed Plan, Mr. Kirpalani asserts. The possibility that Citigroup may not believe Mr. Pandit has sufficiently relevant information to justify his disposition is simply not a basis to withhold him, Mr. Kirpalani maintains. * * * To accommodate Solutia's financing needs, the Court agreed to commence the trial with respect to the Complaint on Feb. 21, 2008, and conclude it on February 26, Rosemary L. Klein, Solutia's senior vice president, general counsel and secretary, disclosed in a filing with the Securities and Exchange Commission. As previously reported, funding of the obligations under the Commitment Letter by the Commitment Parties is a condition to consummation of Solutia's confirmed Plan. The equity commitment letter with respect to the creditor rights offering contains closing conditions including that the effective date of Solutia's Plan will have occurred by Feb. 28, 2008, according to Ms. Klein. No assurance can be given that Solutia will prevail in its dispute with the Commitment Parties or that the Court will enter an order in time to force closing by Feb. 28, 2008, Ms. Klein states. Even if a timely order is entered, no assurance can be given that the Commitment Parties would not be able to obtain a stay pending appeal. Any of these factors could cause Solutia to fail to meet a closing condition under the creditor rights offering commitment, she adds. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on Dec. 11, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed $1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed $400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. SOLUTIA INC: Resolves EPA Environmental Claim for US$3,600,000 -------------------------------------------------------------- Judge Prudence Carter Beatty of the U.S. Bankruptcy Court for the Southern District of New York approved a settlement agreement between Solutia Inc. and the Environmental Protection Agency, giving the government a US$3,600,000 unsecured claim to compensate for costs incurred to clean a toxic industrial site on Ferry Street in St. Louis, Missouri. The original environmental claim -- Claim No. 11276 -- asserted contamination charges for US$9,800,000. The Allowed EPA Claim and its remaining portions will be treated in accordance with Solutia's Consensual Plan of Reorganization, as confirmed on Nov. 29, 2007. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter-Europe on Dec. 11, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. =========== F R A N C E =========== ALCATEL-LUCENT: Forms Long-Term Evolution Joint Venture with NEC ---------------------------------------------------------------- Alcatel-Lucent SA and NEC Corporation have decided to form a joint venture that will focus on the development of Long Term Evolution (LTE) wireless broadband access solutions. These solutions will support the network evolution of leading customers around the world, such as NTT DoCoMo, who has already selected NEC as a vendor for commercial service deployment of its Super 3G (LTE) project, and Verizon, with whom Alcatel- Lucent has already initiated a LTE trial program. Through this joint development effort, the two companies intend to accelerate the availability of next-generation wireless solutions. Leveraging the common LTE product strategy and platform of the joint venture, Alcatel-Lucent and NEC will each manage delivery, project execution and dedicated support to their respective customers. Under this joint venture, the two companies will pool their existing research & development resources and leverage market- proven expertise in key technologies on which next-generation wireless access is based, such as IP, multiple input/multiple output and orthogonal frequency division multiple access. Through this joint development effort, Alcatel-Lucent and NEC are affirming their R&D investment commitments and combining them to accelerate product innovation, differentiation and performance. The goal of the two companies is to achieve faster commercial availability of LTE solutions, serve an expanded, global customer base, and establish a leading position in the early development phase of the LTE market. The two companies will make first commercial releases available in 2009, and will leverage their field-proven wireless expertise to ensure smooth integration of LTE technology with the existing W-CDMA/HSPA and CDMA/EV-DO networks of their respective customers. "By leveraging complementary portfolios, robust research and innovation capabilities, and strong market positions in Japan and around the globe, the partnership is well positioned to hasten the evolution towards the next-generation of mobile services," said Philip Marshall, who heads up technology research at Yankee Group. "This is a smart pairing that will help accelerate the availability of LTE by capitalizing on early market implementations that we expect to occur in Japan and North America." "This strategic collaboration with NEC is driven by scale, time- to-market, and product excellence objectives, and it will put us in a strong position to ride the next wave of transformation in the wireless industry," said Patricia Russo, CEO of Alcatel- Lucent. "By drawing upon our combined innovation capabilities, we will be able to effectively accompany leading operators as they migrate their network to next-generation wireless broadband technology, hence sustaining the value of their networks well into the future," she added. "This collaboration gives us the potential to open up new market opportunities for advanced wireless services globally," said Kaoru Yano, President of NEC Corporation. "Moreover, NEC's core competence lies in integrated IT/network solutions business. Through this alliance, we intend to explore the potential for collaboration with Alcatel-Lucent to best leverage both companies' market-leading capabilities in a wide range of fields. We expect this partnership to contribute to the execution of our next-generation network business strategy by expanding our reach into global markets." In the future, the collaboration is expected to expand into end- to-end third-generation CDMA-based solutions, as well as a wide range of advanced IP-based solutions, such as optical transmission, IP service routing, and IMS-based communications services. Alcatel-Lucent and NEC will also investigate collaborating in developing IT solutions for service providers - such as service application solutions (e.g. streaming, e- commerce, etc.) -- together with the servers and storage products on which those solutions depend. About NEC NEC Corporation provides Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 150,000 people worldwide. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BOSTON SCIENTIFIC: Will Pay US$431 Mln in Stent Patent Dispute -------------------------------------------------------------- The U.S. District Court jury in Marshall, Tex., found that Boston Scientific Corporation's TAXUS Express, and TAXUS Liberte drug-eluting stent products infringe Dr. Bruce Saffran's patent and that the patent is valid. No injunction was requested, but the jury awarded damages of US$431 million. The company says that the jury verdict is unsupported by both the evidence and the law. On these grounds, the company plans to seek to overturn the verdict in post-trial motions before the District Court and, if unsuccessful, to appeal to the U.S. Court of Appeals for the Federal Circuit. The company relates it will prevail on appeal. Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. * * * As reported in the Troubled Company Reporter-Europe on Jan. 14, 2008, Standard & Poor's Ratings Services said that the announcement by Boston Scientific Corp. that the Court of Appeals for the Federal Circuit affirmed a District Court ruling that found the NIR stent infringed one claim of a patent owned by Johnson & Johnson, does not affect its ratings or outlook for Boston Scientific. Boston Scientific's corporate credit rating is rated 'BB+' by S&P with a negative outlook. GENERAL CABLE: Earns US$208.6 Million in Full Year 2007 ------------------------------------------------------- General Cable Corporation has reported US$46.7 million of net income for the three months ended Dec. 31, 2007, compared to US$35.4 million of net income for the same period in 2006. For the full year of 2007, the company earned US$208.6 million compared to 2006 net earnings of US$135.3 million. Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, "I am extremely pleased with the strong financial results that the Company continues to deliver for our shareholders. The Company has succeeded in substantially expanding its global manufacturing platform, improved its financial flexibility and liquidity, and is reporting today record revenues and earnings. Over the last twelve months the Company has completed several strategically important acquisitions. These have given the Company a significant presence in the developing economies of the world, access to important undersea power and communication technologies, and exceptional management experience. While we are proud of our roots in the United States, today approximately 65% to 70% of our revenues are generated outside the country. Fourth Quarter Results Net sales for the fourth quarter of 2007 were US$1,297.8 million, an increase of US$377.1 million or 41.0% compared to the fourth quarter of 2006 on a metal-adjusted basis. This growth was principally due to the company's exposure to global electrical infrastructure markets, the acquisition of PDIC, as well as favorable foreign exchange translation. Revenues from acquired businesses contributed US$271.5 million in the fourth quarter. Without the benefit of revenues from acquired businesses, revenues would have increased 11.5% on a metal- adjusted basis. Fourth quarter 2007 operating income before charges was US$93.0 million compared to operating income of US$57.5 million in the fourth quarter of 2006, an increase of US$35.5 million or 61.7%. Operating margin before charges was 7.2% in the fourth quarter of 2007, an increase of approximately 100 basis points from the operating margin percentage of 6.2% in the fourth quarter of 2006 on a metal-adjusted basis. This improvement was principally due to better price realization in many of the company's product lines, cost improvements from LEAN initiatives, and the continued profitable expansion of the Silec, ECN, and NSW businesses. "We have also seen strong recovery in our LAN cable products with new product designs and strong business leadership. I am also pleased to see significant progress at our Silec facility with respect to product throughput as well as their LEAN manufacturing skills. The integrations of ECN and NSW have been absolutely seamless and performance ahead of our investment case," Mr. Kenny said. Preferred Stock Dividend In accordance with the terms of the company's 5.75% Series A Convertible Redeemable Preferred Stock, the Board of Directors has declared a regular quarterly preferred stock dividend of approximately US$0.72 per share. The dividend is payable on Feb. 22, 2008, to preferred stockholders of record as of the close of business on Jan. 31, 2008. The Company expects the quarterly dividend payment to approximate US$0.1 million. First Quarter 2008 Outlook "The Company continues to benefit from its strategic investments in new products and geographies more than offsetting the ongoing weakness in certain product lines in the developed economies. For the first quarter, the Company expects to report earnings per share of US$1.05 or more compared to an adjusted earnings per share of US$1.01 in the first quarter of 2007, on revenues of approximately US$1.5 billion, Mr. Kenny concluded. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power gimail ntransmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. * * * In September 2007, Moody's Investors Service assigned a rating of B1 to the proposed US$400 million senior unsecured convertible notes of General Cable Corporation. INTELSAT LTD: Appoints Messrs. Spengler & Guillemin as EVP & SVP ---------------------------------------------------------------- Intelsat Ltd. announced a number of executive appointments, effective immediately. Intelsat Chief Executive Officer Dave McGlade has appointed Stephen Spengler to the position of Executive Vice President, Sales & Marketing, and Thierry Guillemin to the position of Senior Vice President & Chief Technical Officer, both new roles. These roles replace the Chief Operating Officer position vacated by James Frownfelter, who submitted his resignation from Intelsat on Feb. 8 2008. Mr. Spengler most recently served as Intelsat's Senior Vice President, Europe, Middle East, Africa & Asia Pacific Sales, and has over 25 years experience in the telecommunications industry. Since joining Intelsat in 2003, Mr. Spengler has served in a number of sales leadership positions, and led Intelsat's Global Marketing and Sales organizations immediately prior to Intelsat's acquisition of PanAmSat in 2006. As Executive Vice President, Sales & Marketing, Mr. Spengler will have responsibility for Intelsat's global marketing and sales efforts, which include providing services to media and network services customers in approximately 200 countries and territories. Mr. Guillemin most recently served as Intelsat's Vice President of Satellite Operations & Engineering, where he was responsible for the service availability of Intelsat's in-orbit fleet of 54 satellites. Mr. Guillemin has over 25 years experience in the satellite industry, in disciplines including spacecraft development, launch and operations. As Senior Vice President & Chief Technical Officer, Mr. Guillemin will be responsible for customer operations, space systems management and planning, and satellite operations. In announcing the appointments, Mr. McGlade said, "Over the past several years, Intelsat has built a highly skilled management team, one that understands the needs of our global customer base and that is fully capable of profitably growing the business. I am proud of the bench strength we enjoy throughout the organization, and today's appointments reflect Intelsat's leadership in this respect. We thank Jim Frownfelter for his years of service to PanAmSat, and for his contributions to our successful merger integration progress. About Intelsat Headquartered in Bermuda, Intelsat, is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. * * * As reported in the Troubled Company Reporter-Europe on Jan. 31, 2008, Moody's Investors Service downgraded Intelsat Ltd.'s corporate family rating by two notches to Caa1. ============= G E O R G I A ============= BANK OF GEORGIA: Share Offering Raises US$100 Million ----------------------------------------------------- JSC Bank of Georgia disclosed the results of the offering of its four million new ordinary shares in the form of global depositary receipts, each GDR representing one ordinary share of the bank. The bank has sold four million new ordinary shares in the form of GDRs at a price of US$25 per GDR. The offering raised gross proceeds of US$100 million. The proceeds (after fees and expenses) will provide required capital for the bank's planned domestic growth and for international expansion. The bank has agreed to a lock-up of three months with respect to the issuance of new equity, subject to standard exceptions. The offering represents approximately 14.7% of the issued share capital before the offering. The offer price is equal to a 1.6% discount to the prevailing closing market price on the date of the offering. ING Bank acted as sole bookrunner for the offering. Unicredit Group was joint lead manager and Galt and Taggart Securities, the bank's brokerage subsidiary, acted as selling agent. "We are pleased to announce the successful offering of our shares," Nicholas Enukidze, acting chairman of the Supervisory Board of the Bank of Georgia, said. "The funds raised enable us to work for the consolidation of our position in the Georgian market and provides funding for international expansion. On behalf of the Bank, we thank our existing shareholders for their continued support and take this opportunity to welcome our new investors." About Bank of Georgia Bank of Georgia, a leading universal Georgian bank with operations in Georgia and Ukraine, is the largest bank by assets, loans and equity in Georgia. The major component of the Galt & Taggart Index, the bank has 117 branches and over 705,000 retail and approximately 64,000 corporate current accounts. The bank offers a full range of retail banking and corporate and investment banking services to its customers across Georgia. It also provides a wide range of corporate and retail insurance products through its wholly owned subsidiary, BCI, as well as asset & wealth management services. * * * As of Feb. 11, 2008, Bank of Georgia carries 'B+/B' rating with a stable outlook from Standard & Poor's; 'B3/NP' (FC) and 'Ba1/NP (LC) ratings with a stable outlook from Moody's Investors Service; and a 'B+/B' credit rating with a stable outlook from Fitch Ratings. ============= G E R M A N Y ============= DELME BAU: Claims Registration Period Ends March 5 -------------------------------------------------- Creditors of Delme Bau Beteiligungs-GmbH have until March 5, 2008, to register their claims with court-appointed insolvency manager Hermann Berding. Creditors and other interested parties are encouraged to attend the meeting at 2:50 p.m. on April 7, 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: Hermann Berding Jammertal 1 D 49661 Cloppenburg Germany Tel: 04471/91260 Fax: 04471/82997 The District Court of Delmenhorst opened bankruptcy proceedings against Delme Bau Beteiligungs-GmbH on Jan. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Delme Bau Beteiligungs-GmbH Hansastrasse 86 27751 Delmenhorst Germany Attn: Peter Garbade, Manager Wildeshauser Str. 12 27243 Harpstedt Germany DIE BRILLE: Claims Registration Period Ends March 5 --------------------------------------------------- Creditors of Die Brille 21 Burkhard Dietz GmbH have until March 5, 2008, to register their claims with court-appointed insolvency manager Norbert Weber. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on March 31, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 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: Norbert Weber Friedrich-Ebert-Strasse 146 42117 Wuppertal Germany Tel: 0202/30 20 71 Fax: 0202/31 47 08 The District Court of Wuppertal opened bankruptcy proceedings against Die Brille 21 Burkhard Dietz GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Die Brille 21 Burkhard Dietz GmbH Schuchardstr. 21 42275 Wuppertal Germany Attn: Burkhard Dietz, Manager Wittelsbacher Str. 31 a 42287 Wuppertal Germany DIELER & TREPPKE: Claims Registration Period Ends March 11 ---------------------------------------------------------- Creditors of Dieler & Treppke Heizung-Sanitar GmbH have until March 11, 2008, to register their claims with court-appointed insolvency manager Mechthild Greve. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 11, 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 Koblenz Hall 123 Main Court Karmeliterstrasse 14 56068 Koblenz 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: Mechthild Greve Josef-Goerres-Platz 5 56068 Koblenz Germany Tel: 0261/30479-0 Fax: 0261/9114729 E-mail: info@lieser-rechtsanwaelte.de Web: http://www.lieser-rechtsanwaelte.de/ The District Court of Koblenz opened bankruptcy proceedings against Dieler & Treppke Heizung-Sanitar GmbH on Jan. 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dieler & Treppke Heizung-Sanitar GmbH Ohlenfeldstrasse 7 56154 Boppard-Buchholz Germany FEIL WARENHANDEL: Claims Registration Period Ends March 5 --------------------------------------------------------- Creditors of Feil Warenhandel GmbH have until March 5, 2008, to register their claims with court-appointed insolvency manager Gerhard Fichter. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on April 1, 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: Gerhard Fichter Uhlandstrasse 4 74072 Heilbronn Germany Tel: 07131/888666 Fax: 07131/888667 The District Court of Heilbronn opened bankruptcy proceedings against Feil Warenhandel GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Feil Warenhandel GmbH Attn: Hans Feil, Manager Untere Halde 10 74257 Untereiesesheim Germany HM FACHMARKTE: Claims Registration Period Ends March 10 ------------------------------------------------------- Creditors of HM Fachmarkte GmbH i.L. have until March 10, 2008, to register their claims with court-appointed insolvency manager Alexander Kaesebier. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on March 31, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hildesheim Hall 124 Main Building Kaiserstrasse 60 31134 Hildesheim 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: Alexander Kaesebier Grothstr. 2 31787 Hameln Germany Tel: 05151-821252 Fax: 05151-821253 The District Court of Hildesheim opened bankruptcy proceedings against HM Fachmarkte GmbH i.L. on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HM Fachmarkte GmbH i.L. Attn: Dr. Susanne Rauth, Manager Herbert-Quandt-Str. 8 31135 Hildesheim Germany HOLZBISCHOFF GMBH: Claims Registration Period Ends March 11 ----------------------------------------------------------- Creditors of holzbischoff gmbh have until March 11, 2008, to register their claims with court-appointed insolvency manager Thomas Linse. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on April 1, 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 Coburg Meeting Hall K First Floor 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: Thomas Linse Rosenauer Str. 22 96450 Coburg Germany Tel: 09561/80340 Fax: 09561/803434 The District Court of Coburg opened bankruptcy proceedings against holzbischoff gmbh on Jan. 31, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: holzbischoff gmbh Industriestr. 7 96484 Meeder Germany IKB DEUSTCHE: German Government Pioneers EUR1.5 Billion Bail-Out ---------------------------------------------------------------- The German government has decided to infuse EUR1.5 billion in fresh capital into IKB Deutsche Industriebank AG, various reports say, citing government officials. According to Thomson Financial, Finance Minister Peer Steinbrueck said the government pledged to provide EUR1 billion of the rescue fund, while the local banking industry will furnish EUR500 million. "An insolvency of IKB would have had unforeseeable consequences on the German financial market," Mr. Steinbrueck was quoted by the Financial Times as saying. Mr. Steinbrueck, however, said Germany will not provide "unlimited support" to IKB. "We have agreed to do everything to ensure that IKB can stay in business," Economy Minister Michael Glos was quoted by Bloomberg News as saying. "Part of the agreement is an appeal to banks to make their own contribution to help create the preconditions which would enable us to keep IKB alive." "There have been talks with third parties," Thomas Steg, spokesman for Chancellor Angela Merkel, was quoted by Bloomberg as saying. As reported in the TCR-Europe on Feb. 14, 2008, State-owned KfW Bankengruppe may issue a convertible bond on its 31% stake in Deutsche Post World Net AG to raise EUR1 billion in fresh funds for capital-depleted IKB, in which KfW holds a 37.8% stake. IKB is reportedly needing up to EUR2 billion in fresh capital, EUR500 million of which is needed in the short term. KfW may have to bail out IKB for the third time after the bank's other shareholders refused to finance the company's restructuring. KfW had agreed in July 2007 to take over all of IKB's obligations related to Rhineland Funding when the vehicle's commercial paper couldn't be sold to investors following the U.S. subprime crisis. In December 2007, a KfW-led banking pool agreed to cover US$520 million in risks for IKB, which brought the cost of the rescue to EUR6.15 billion. IKB had notified Bundesbank and BaFin that it could face more liquidity problems if it fails to secure necessary financing. IKB warned in September 2007 that it may post EUR700 million in losses for fiscal year ending March 31, 2008. About IKB Deutsche Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Jan. 25, 2008, Moody's Investors Service downgraded the bank financial strength rating of IKB Deutsche Industriebank to E+ from D-. The outlook on the BFSR is now developing. As reported in the TCR-Europe on Jan. 9, 2008, Fitch Ratings has upgraded IKB Deutsche Industriebank AG's Individual rating to 'E' from 'F'. The TCR-Europe also reported on Dec. 13, 2007, that Fitch Ratings downgraded the loan facilities provided by IKB Deutsche Industriebank AG and IKB International S.A. to Havenrock II Limited as: -- US$165,000,000 loan provided by IKB International: downgraded to 'CC/DR2' from 'BBB+' Outlook Negative; -- US$404,875,000 Facility C loan provided by IKB: downgraded to 'CC/DR2' from 'BBB+'; Outlook Negative; -- US$43,750,000 Facility B loan provided by IKB: downgraded to 'CC/DR2' from 'B+'; Outlook Negative; and -- US$11,375,000 Facility A loan provided by IKB: downgraded to 'CC/DR2' from 'CCC'; Outlook Negative. INTER OBJEKT: Claims Registration Period Ends March 11 ------------------------------------------------------ Creditors of Inter OBJEKT GmbH i.L. have until March 11, 2008, to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 1:30 p.m. on April 1, 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 Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt 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: Rolf Rombach Magdeburger Allee 159 99086 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Inter OBJEKT GmbH i.L. on Jan. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Inter OBJEKT GmbH i.L. Ziegelei 18 99091 Erfurt Germany IPAK GMBH: Claims Registration Ends March 11 -------------------------------------------- Creditors of ipak GmbH & Co. KG have until March 11, 2008, to register their claims with court-appointed insolvency manager Frank-Michael Rhode. Claims will be verified at 9:30 a.m. on April 24, 2008, at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Frank-Michael Rhode Graf-Moltke-Str. 62 28211 Bremen Germany Tel: 0421/3485212/213 Fax: 0421/341078 E-mail: info@rhode.de Web site: http://www.rhode.de/ The District Court of Bremen opened bankruptcy proceedings against ipak GmbH & Co. KG on Dec. 1, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ipak GmbH & Co. KG Karl-Buecher Str. 5 28307 Bremen Germany Attn: Andreas Karl-Heinz Kriese, Manager Mahndorfer Deich 10 28307 Bremen Germany LICH VERWALTUNGS: Claims Registration Period Ends March 3 --------------------------------------------------------- Creditors of Lich Verwaltungs- und Beteiligungs GmbH have until March 3, 2008, to register their claims with court-appointed insolvency manager Tim Schneider. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on March 13, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Giessen Hall 406 Building B Gutfleischstrasse 1 35390 Giessen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tim Schneider Marktlaubenstrasse 9 35390 Giessen Germany Tel: 0641/93243-0 Fax: 0641/932-4350 The District Court of Giessen opened bankruptcy proceedings against Lich Verwaltungs- und Beteiligungs GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lich Verwaltungs- und Beteiligungs GmbH Attn: Michael Lich, Manager Giessener Strasse 15 35466 Rabenau Germany MICAS GMBH: Claims Registration Period Ends March 11 ---------------------------------------------------- Creditors of MICAS GmbH have until March 11, 2008, to register their claims with court-appointed insolvency manager Oliver Reichelt. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on March 18, 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 Weilheim i.OB Meeting Hall E 007 Waisenhausstr. 5 Weilheim 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: Oliver Reichelt Ohmstr. 13/III 80802 Munich Germany Tel: 089/3838710 Fax: 089/338308 The District Court of Weilheim i.OB opened bankruptcy proceedings against MICAS GmbH on Jan. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MICAS GmbH Puetrichstr. 30-32 82362 Weilheim Germany MOEBEL-THATE AUGUST: Creditors' Meeting Slated for February 28 -------------------------------------------------------------- The court-appointed insolvency manager for Moebel-Thate August Thate GmbH & Co., Axel Gerbers will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:15 a.m. on Feb. 28, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Old Building Hall 50 Domsheide 16 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 11:15 a.m. on April 24, 2008, at: The District Court of Bremen New Building Hall 115 Ostertorstr. 25-31 28195 Bremen Germany Creditors have until March 11, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Axel Gerbers Soegestr. 70 28195 Bremen Germany Tel: 0421-178 998-0 Fax: 0421-178 998-11 E-mail: bremen@jnp.de Web site: http://www.jnp.de/ The District Court of Bremen opened bankruptcy proceedings against Moebel-Thate August Thate GmbH & Co. on Dec. 14, 2007. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Moebel-Thate August Thate GmbH & Co. Attn: Eckhard Radeke, Manager Schragestrasse 4 28239 Bremen Germany MULTITEC SYSTEM: Claims Registration Period Ends March 11 --------------------------------------------------------- Creditors of Multitec System Service GmbH have until March 11, 2008, to register their claims with court-appointed insolvency manager Paul Fink. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on April 1, 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 Duesseldorf Meeting Hall A 341 Third Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Paul Fink Koenigsallee 33 40212 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against Multitec System Service GmbH on Jan. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Multitec System Service GmbH Attn: Hilde Hallen, Manager Mergelsberg 52 40629 Duesseldorf Germany MUSICSELLER 24: Claims Registration Ends March 10 ------------------------------------------------- Creditors of musicseller 24 GmbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Dr. Joerg Nerlich. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on March 28, 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 Bad Neuenahr-Ahrweiler Hall 4 Wilhelmstrasse 55-57 53474 Bad Neuenahr-Ahrweiler Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Nerlich Aachener Str. 563-565 50933 Cologne Germany Tel: 0221/9408030 Fax: 0221/9408039 The District Court of Bad Neuenahr-Ahrweiler opened bankruptcy proceedings against musicseller 24 GmbH on Jan. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: musicseller 24 GmbH Kranzweiherweg 22 53489 Sinzig Germany Attn: Thomas Keiper, Manager Landhofer Str. 2 a 53501 Grafschaft Germany REDA IMPORT: Claims Registration Ends March 10 ---------------------------------------------- Creditors of REDA Import und Export GmbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Horst Piepenburg. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 2, 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 Duesseldorf Meeting Hall A 341 Third Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Horst Piepenburg Heinrich-Heine-Allee 20 40213 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against REDA Import und Export GmbH on Jan. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: REDA Import und Export GmbH Kreuzstrasse 20 42277 Wuppertal Germany Attn: Ljuba Boos, Manager Anne-Frank-Strasse 2 41466 Neuss Germany REHN & BUSCH: Claims Registration Period Ends March 3 ----------------------------------------------------- Creditors of Rehn & Busch GmbH & Co KG have until March 3, 2008, to register their claims with court-appointed insolvency manager Dr. Peter Neu. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on March 31, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 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: Dr. Peter Neu Elberfelder Strasse 39 42853 Remscheid Germany Tel: 02191/499 18-10 Fax: 02191/499 18-50 Web: http://www.teublerneu.de/ The District Court of Wuppertal opened bankruptcy proceedings against Rehn & Busch GmbH & Co KG on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rehn & Busch GmbH & Co KG Nordstr. 8 42853 Remscheid Germany SPECTRUM BRANDS: Dec. 30 Bal. Sheet Upside-Down by US$141.2 Mln --------------------------------------------------------------- Spectrum Brands Inc.'s consolidated balance sheet at Dec. 30, 2007, showed US$3.27 billion in total assets and US$3.41 billion in total liabilities, resulting in a US$141.2 million total stockholders' deficit. The company reported a net loss of US$43.4 million on net sales of US$560.5 million for the first quarter of fiscal 2008 ended Dec. 30, 2007, compared with a net loss of US$18.8 million on net sales of US$564.6 million in the first quarter of fiscal 2007. Spectrum Brands' net sales of US$560.5 million represented a slight decline of one percent from the prior year. Sales in the quarter were negatively impacted by customer requests for earlier than normal shipments of holiday related merchandise, resulting in a timing shift of approximately US$15.0 million in battery and personal care sales from the fiscal first quarter of 2008 to the fiscal fourth quarter of 2007. In addition, the company's continued deliberate exiting of unprofitable or marginally profitable private label battery sales in Europe was a contributor to the year over year decline. Foreign currency exchange had a favorable impact of US$31.0 million. Ooperating income for the fiscal 2008 quarter increased to US$51.8 million, or 9.3% of net sales from US$37.6 million, or 6.7% of net sales in the fiscal 2007 quarter, primarily due to the savings associated with the decrease in advertising and marketing expenses coupled with the impact of the company's global realignment savings in the fiscal 2008 quarter. Interest expense in the fiscal 2008 quarter increased to US$45.7 million from US$31.7 million in the fiscal 2007 quarter due to higher interest rates and higher average debt balances. The company's effective tax rate on income from continuing operations is approximately 260% for the fiscal 2008 quarter. The effective tax rate on income from continuing operations was approximately 30% for the fiscal 2007 quarter. The increase in effective income tax rate for the fiscal 2008 quarter is a result of the company's decision to no longer benefit its net operating losses generated in the U.S., while at the same time being subject to tax on its income generated outside of the U.S. The fiscal 2008 quarter reflects a loss from the discontinued operations of its home and garden business of US$33.3 million, net of tax, which includes a loss on disposal of Nu-Gro of US$1.0 million, net of tax benefit. The fiscal 2007 quarter reflects a loss from discontinued operations of approximately US$22.2 million, net of tax. The increase in the loss from discontinued operations is primarily due to the impact of income taxes. Senior Credit Facilities At Dec. 30, 2007, the aggregate amount outstanding under the company's Senior Credit Facilities totaled a U.S. Dollar equivalent of US$1.52 billion, including principal amounts of US$986.0 million under the U.S. Dollar Term B Loan, EUR258 million under the Euro Facility (US$378.0 million at Dec. 30, 2007), US$105.0 million under the ABL Facility as well as US$47.0 million outstanding in letters of credit under the L/C Facility. Senior Subordinated Notes At Dec. 30, 2007, the company had outstanding principal of US$700 million under its 7 3/8% Senior Subordinated Notes due 2015, outstanding principal of US$3.0 million under its 8 1/2% Senior Subordinated Notes due 2013, and outstanding principal of US$347 million under its Variable Rate Toggle Senior Subordinated Notes due 2013. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 30, 2007, are available for free at http://researcharchives.com/t/s?27f1 About Spectrum Brands Inc. Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a supplier of batteries, portable lighting, lawn and garden products, household insect control, shaving and grooming products, personal care products and specialty pet supplies. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. The company's European headquarters is located in Sulzbach, Germany. The company has approximately 8,400 employees worldwide. SUPREME ITALY: Claims Registration Ends March 10 ------------------------------------------------ Creditors of Supreme Italy Cars GmbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Dr. Christine Berg-Gruenenwald. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on April 8, 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Christine Berg-Gruenenwald Leopoldstr. 139 80804 Munich Germany Tel: 361930-0 Fax: 361930-499 The District Court of Munich opened bankruptcy proceedings against Supreme Italy Cars GmbH on Jan. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Supreme Italy Cars GmbH Attn: Karl-Heinz Keller, Manager Wolfratshauser Str. 64 82065 Baierbrunn Germany WAT-AUTOTEILE GMBH: Claims Registration Ends March 10 ----------------------------------------------------- Creditors of WAT-Autoteile GmbH have until March 10, 2008, to register their claims with court-appointed insolvency manager Dr. Sabine Feuerborn. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on April 15, 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 Siegen Meeting Hall 009 Ground Floor Main Building Berliner Str. 21-22 57072 Siegen 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. Sabine Feuerborn Else-Lang-Str. 1 50858 Cologne Germany Tel: (0221) 2855470 Fax: (0221) 28554729 The District Court of Siegen opened bankruptcy proceedings against WAT-Autoteile GmbH on Jan. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WAT-Autoteile GmbH Ederstr. 60 57319 Bad Berleburg Germany Attn: Antonius Hilmers, Manager Otto-Moebius-Str. 8 57392 Schmallenberg Germany ============= H U N G A R Y ============= PROPEX INC: Gets Access to Additional US$40 Mln of DIP Financing ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee has authorized Propex Inc. and its debtor affiliates to access an additional US$40 million of a US$60 million DIP credit facility on February 13, 2008. The Court originally approved immediate access to US$20 million of the DIP financing on January 23, 2008. The Court's ruling will provide Propex with immediate and sufficient liquidity to continue to operate its business on an ongoing basis. "We are once again pleased to have received Court approval for access to the additional US$40 million of our US$60 million credit facility," Joe Dana, President of Propex Inc., said in a press release. "This is further proof that our plan to restructure our balance sheet and emerge from Chapter 11 a stronger and more nimble Propex better able to serve our customers continues to progress on schedule and as anticipated." About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: IRS Demands Filing of Form 941 for Third Qtr. 2007 -------------------------------------------------------------- M. Kent Anderson, Esq., assistant U.S. attorney, relates that as of the bankruptcy filing, Propex Inc. was indebted to the United States for taxes owed to the Internal Revenue Service aggregating US$1,485,986 for federal employment tax liabilities, all of which is an unsecured priority claim under Section 507(a)(8) of the Bankruptcy Code. Moreover, a portion of the IRS' claim will be estimated due to the fact that Propex Inc. has not filed its Form 941 for the third quarter of 2007 as required by law. Propex Inc. should be required to file its Form 941 for the third quarter of 2007 on or before Feb. 14, 2008, Mr. Anderson notes. Similarly, as of the Petition Date, Propex Concrete Systems Corporation also owed the IRS taxes aggregating US$130,216 for federal employment tax liabilities, of which US$38,152 is a secured claim pursuant to Section 506 of the Bankruptcy Code, and US$92,064 is an unsecured priority claim under Section 507 (a)(8). Mr. Anderson points out that the Forms 941 for the fourth quarter of 2007 for both Debtors are due on or before Jan. 31, 2008. "Th[o]se returns should be timely filed and copies provided to the IRS . . . on or before Feb. 14, 2008," he adds. "The debtor should be required to timely file all postpetition tax returns and remit any payment due thereon with the timely filed return with a copy of the return sent to the IRS." Accordingly, the IRS asks the Court to deny the Debtors' request to pay any prepetition amount in relation to their programs and policies. About Propex Inc. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Shaw and IRS Balk at BNP Paribas DIP Fund Agreement --------------------------------------------------------------- As previously reported, Propex Inc. and its debtor-affiliates submitted a draft of their DIP Credit Agreement with BNP Paribas and certain lenders to the U.S. Bankruptcy Court for the Eastern District of Tennessee on Jan. 18, 2008. The Debtors have delivered to the Court the finalized DIP Credit Agreement dated Jan. 23, 2008, a full-text copy of which is available for free at: http://bankrupt.com/misc/Propex_CreditAgreement.pdf Responses A. Shaw Industries Shaw Industries Group Inc., filed a complaint against the Debtors in the Superior Court of the State of Delaware on Sept. 7, 2007, asserting claims for misappropriation of trade secrets, fraud, and breach of contract and seeks a declaratory judgment as to its ownership of Cobra Technology, Cobra Technology Patents, and General Know-How related to Cobra Technology. Thus, Shaw opposes the proposed postpetition financing to the extent that a Final DIP order or the DIP Credit Agreement prejudices its rights or its intellectual property rights. B. Internal Revenue Service As of the bankruptcy filing, Propex Inc. owed approximately US$1,485,986 to the Internal Revenue Service for federal employment tax liabilities, all of which is an unsecured priority claim under Section 507(a)(8) of the Bankruptcy Code, M. Kent Anderson, Esq., assistant U.S. attorney, relates. Furthermore, since Propex Inc., has not filed its Form 941 for the third quarter of 2007 as required by law, a portion of the IRS's claim will be estimated, Mr. Anderson notes. Similarly, Mr. Anderson continues, as of the bankruptcy filing, Propex Concrete Systems Corporation also owed the IRS taxes aggregating US$130,216 for federal employment tax liabilities, of which US$38,152 is a secured claim pursuant to Section 506 of the Bankruptcy Code, and US$92,064 is an unsecured priority claim under Section 507 (a)(8). Mr. Anderson points out that the Debtors' interim order states that "the DIP agent and the DIP lenders will not be deemed to be in control of the operations of any of the Debtors or to be acting as a 'responsible person' or 'owner or operator' with respect to the operation or management of any of the Debtors". Mr. Anderson notes that this portion of the Interim Order could be interpreted to apply to the IRS' and the DIP Lenders' liability under the Sections 3505 and 6673 of the Internal Revenue Code. Accordingly, the IRS asks the Court to deny the Interim DIP Order. About Propex Inc. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in Brazil, Mexico, Germany, Hungary, and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= I R E L A N D ============= HALYARD CDO I: Credit Deterioration Cues Moody's to Cut Ratings --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of five classes of notes issued by Halyard CDO I p.l.c. and has left four classes on review for downgrade. Halyard CDO I p.l.c. is a partially-funded managed CDO of asset backed securities. Halyard may either buy cash obligations or enter into pay-as-you-go credit default swaps referencing mezzanine asset backed securities. Currently the transaction has 71% exposure (69 assets) to US subprime RMBS and 29% (18 assets) to CDO of ABS. About 4% of assets are classified as defaulted. The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence on Feb. 8, 2008, as reported by the Trustee, of an event of default caused by a failure of the Class A Over-collateralization Ratio to be greater than or equal to 100%. Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to affect the calculation of over- collateralization. Thus, the Class A Over-collateralization Ratio failed to meet the required level. During the occurrence and continuance of an Event of Default, controlling creditors of the issuer may be entitled to direct the Trustee to take particular actions with respect to the underlying collateral securities and the Notes. The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued. Because of this uncertainty, the ratings assigned to Class A, Class B, Class C and the Class D Notes remain on review for further possible action. These rating actions are: (1) US$101,250,000 Class A Senior Floating Rate Notes due 2051 -- Current Rating: Ba3, on review for downgrade -- Prior Rating: Aaa, on review for downgrade (2) US$41,250,000 Class B Senior Floating Rate Notes due 2051 -- Current Rating: B1, on review for downgrade -- Prior Rating: Aa2, on review for downgrade (3) US$15,000,000 Class C Mezzanine Floating Rate Deferrable Notes due 2051 -- Current Rating: B3, on review for downgrade -- Prior Rating: A1, on review for downgrade (4) US$30,000,000 Class D Mezzanine Floating Rate Deferrable Notes due 2051 -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2, on review for downgrade (5) US$13,125,000 Class E Mezzanine Floating Rate Deferrable Notes due 2051 -- Current Rating: C -- Prior Rating: Caa3, on review for downgrade ========= I T A L Y ========= ALITALIA SPA: Trims Pretax Losses to EUR362.92 Million in 2007 -------------------------------------------------------------- The Board of Directors of Alitalia S.p.A. has approved its consolidated report for full year and fourth quarter ended Dec. 31, 2007. Alitalia posted EUR362.92 million in pretax losses on EUR4.86 billion in net revenues for full year 2007, compared with EUR605.19 million in pretax losses on EUR4.72 billion in net revenues for full year 2006. The company posted EUR108.95 million in pretax losses on EUR1.28 billion in net revenues for fourth quarter 2007, compared with EUR330.39 million in pretax losses on EUR1.23 billion in net revenues for the same period in 2006. According to Alitalia, its performance in 2007 was marked by a number of critical factors mainly due to: * sharp rise in fuel costs; * the effects of trade union actions, causing revenue losses estimated at about EUR150 million, together with damage to Alitalia's image); and * strong growth in competitive pressure from low-cost carriers on the domestic and international markets. The company's average workforce in 2007 was 10,243 people, up by 133 (+1.3%) compared to 2006, mainly due to the absence of solidarity contracts for flight staff and the Cassa Integrazione Guadagni Straordinaria for ground staff, as well as changes in the Group�s structure (consolidation of Volare). Alitalia's workforce as of Dec. 31, 2007, was 11,172 people. Alitalia's operating fleet as of Dec. 31, 2007, was made up of 186 aircraft of which: * 157 for short/medium-haul flights; and * 29 for long-haul flights. Regarding the evolution of traffic and the network in the 2007 passenger sector, in overall terms, without considering the activities of the subsidiary Volar), the capacity offered was practically in line with 2006 (5.171 billion ton kilometers compared to 5.166 million in 2006), with traffic up by 1.1% (3.846 billion ton kilometers carried, compared to 3.804 billion in 2006). In overall terms, the load factor reached 74.4%, up by 0.7 percentage points compared to 2006. During 2007, the level of unit revenue (yield) was down by 3.4% compared to 2006, due to increasing pressure from low-cost carriers and unfavorable exchange rates for the intercontinental sector. Regarding the verification of the correct accounting value of tangible and intangible assets, in particular for the fleet, it should be noted that Alitalia has called in an experienced and fully qualified independent expert to gather all the elements required in order to make an estimate of the recovery value (fair value less sales costs) of the Company�s aircraft, updating the estimates already carried out, referring to Dec. 31, 2006, and June 30, 2007. Outlook Regarding the forecast evolution of business performance, the Board of Directors approved the 2008 Budget on Jan. 30, 2008. The 2008 Budget, developed on an industrial stand-alone basis, reconfirms strategic actions marked by strong discontinuity for the implementation of the Plan for survival/transition. To account for the lower positive returns pointed out when the 2008 Budget was approved, the Budget considers an additional reduction in activity and further network rationalization compared to the Plan for survival/transition in 2008. Therefore the expected industrial operating 2008 margin, although slightly improved compared to expected 2007, shows a material worsening compared to the 2008 Plan. Expected EBITDAR is about three percentage points of revenues. From the financial point of view, it was already pointed out when the 2008 Budget was approved, and bearing in mind pre- existing and subsequent critical factors, that maintaining liquidity at levels of operative sustainability is increasingly linked to the recapitalizing operation envisaged in the budget for mid-2008, of the order of EUR750 million as things stand, as well as effective realization of the disposal of assets set out in the 2008-2010 Business Plan and in the 2008 budget. It should be noted that budget assumptions and objectives, assuming they are fully achieved, make it possible to envisage -� for the year in question -� that liquidity can be maintained at a positive level, though considerably reduced, even without considering the indispensable capital increase. However, the situation is difficult to sustain from the operational point of view, bearing in mind that the above extraordinary operations, while waiting for the full start-up of the Summer season, will only partly offset the structural time lag between receipts and payments. Against this background, any delay in the definition of projects about to be implemented could imply considerable issues, which could lead to conditions where increasing the capital of the Company has to be speed up. 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. BERRY PLASTICS: Completes Acquisition of Captive Plastics Inc. -------------------------------------------------------------- Berry Plastics Corporation, an Apollo Management, L.P. and Graham Partners portfolio company, completed the previously disclosed acquisition of 100% of the outstanding common stock of Captive Holdings Inc., the parent company of Captive Plastics Inc., a First Atlantic Capital, Ltd. portfolio company. About the Transaction The Troubled Company Reporter on Jan. 7, 2008 reported that the company has entered into an agreement to acquire 100% of the outstanding common stock of Captive Holdings Inc. Pursuant to the acquisition agreement, Berry will pay US$500 million for Captive, subject to certain customary adjustments. Berry has obtained financing commitments to finance the transaction. The transaction will close in the first quarter of 2008 and is subject to customary closing conditions. About Berry Plastics Headquartered in Evansville, Nebraska, Berry Plastics Corporation -- http://www.berryplastics.com/-- is a manufacturer and supplier of a diverse mix of rigid plastics packaging products focusing on the open top container, closure, aerosol overcap, drink cup and housewares markets. The company sells a broad product line to over 12,000 customers. Berry Plastics concentrates on manufacturing high quality, value-added products sold to marketers of institutional and consumer products. In 2004, the company created its international division as a separate operating and reporting division to increase sales and improve service to international customers utilizing existing resources. The international segment includes the company's foreign facilities and business from domestic facilities that is shipped or billed to foreign locations. Berry has 25 manufacturing facilities worldwide, including in Italy, England, and Hong Kong and more than 6,800 employees. About Captive Plastics Based in Piscataway, New Jersey, Captive Plastics -- http://www.captiveplastics.com/ -- makes plastic containers for the health care, personal care, and food and beverage industries. Captive Plastics operates over a dozen manufacturing facilities across the US and provides over 550 varieties of rigid plastic packaging products, including wide mouth, cylinder, round, and square containers. Its services include engineering, computer aided design, mold construction, production, decorating, and filling. First Atlantic Capital, a private investment firm, owns a majority interest in Captive Plastics. CARROZZERIA BERTONE: Turin Court Declares Firm Insolvent -------------------------------------------------------- The bankruptcy court in Turin, Italy, declared Carrozzeria Bertone S.p.A. insolvent on Feb. 11, 2008, the Financial Times reports, citing Il Sole 24 Ore as its source. The court gave Carrozzeria Bertone's government-appointed administrators 30 days to decide whether to continue the company's administration or send it into bankruptcy. As reported in the TCR-Europe on Feb. 6, 2008, Carrozzeria Bertone's unions were hoping that the court will place the company into administration to reactivate the temporary layoff fund for workers. Potential buyers Gianmario Rossignolo and Domenico Reviglio have canceled plans to acquire the company, FT relates. Meanwhile, the Italian industry ministry has committed to maintaining employment levels and protecting the Bertone brand, which preserves the company's factory in Turin. Carrozzeria Bertone's 1,300 strong-workforce is currently paid under a state funded scheme, which expired on Dec. 31, 2007. Headquartered in Turin, Italy, Carrozzeria Bertone S.p.A. -- http://www.bertone.it/-- manufactures car for the Bertone Group. The company does the product and process engineering for all of its products and handles the entire manufacturing cycle. As previously reported in the Troubled Company Reporter-Europe, Bertone filed for bankruptcy protection in November 2007 after accumulating EUR37.3 million in losses for the past three years. Bertone filed for concordato preventivo -- similar to a Chapter 11 bankruptcy petition in the U.S. -- which prevents creditors to collect payments while the company reorganizes. The filing foresees Bertone's management overseeing the reorganization. The company, however, excluded its design, engineering and glass businesses from the filing. FIAT SPA: Joint Venture with Credit Agricole Earns EUR119 Mln ------------------------------------------------------------- Fiat Group Automobiles Financial Services, a 50-50 joint venture of Fiat SpA and Credit Agricole, earned EUR119 million in its first year of operations ending in Dec. 31. 2007 The prospects for 2008 confirm further growth, thanks to the growth in sales of autos by Fiat, improvement of financial activities, and cross-selling with Credit Agricole, the Forbes reports, citing Thompson Financial. Overall, financial activities grow 8% to EUR17 billion on a year to year basis from 2006. This joint venture provides finances to dealear and car financing to Fiat customers. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in the TCR-Europe on Nov. 6, 2007, Moody's Investors Service changed the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate Family Rating to positive from stable and affirmed its Ba3 long-term senior unsecured ratings as well as the short-term non-Prime rating. On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. =================== K A Z A K H S T A N =================== AGRO KONA-INVEST: Proof of Claim Deadline Slated for March 14 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Agro Kona-Invest insolvent. Creditors have until March 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabayev Str. 102-25 Petropavlovsk North Kazakhstan Kazakhstan AKBAZJAN LLP: Creditors Must File Claims by March 14 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Akbazjan insolvent. Creditors have until March 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 ANA-INSHAAT LLP: Claims Filing Period Ends March 14 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Ana-Inshaat insolvent. Creditors have until March 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 INTIS AGRO: Creditors' Claims Due on March 14 --------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Intis Agro Invest insolvent. Creditors have until March 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Jumabayev Str. 102-25 Petropavlovsk North Kazakhstan Kazakhstan LEX BUSINESS: Claims Registration Ends March 14 ----------------------------------------------- LLP Lex Business Solutions has declared insolvency. Creditors have until March 14, 2008, to submit written proofs of claims to: LLP Lex Business Solutions Abylaihan ave. 3-17 Almaty Astana Kazakhstan MFS GLOBENET: Proof of Claim Deadline Slated for March 14 --------------------------------------------------------- Representation of Company MFS Globenet Inc. has declared closure. Creditors have until March 14, 2008, to submit written proofs of claims to: Representation of Company MFS Globenet Inc. Room 43 Abai Str. 157 Almaty Kazakhstan RETRO STROY: Creditors Must File Claims by March 14 --------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Construction Company Retro Stroy insolvent on Dec. 21, 2007. Creditors have until March 14, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Aptechnaya Str. 4/1 Myrzakent Mahtaaralsky South Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== BISHFU LLC: Claims Filing Period Ends February 22 ------------------------------------------------- LLC Bishfu has declared insolvency. Creditors have until Feb. 22, 2008, to submit written proofs of claim to: LLC Bishfu Leo Tolstoy Str. 210 Bishkek Kyrgyzstan Tel: (+996 312) 64-81-79 SKAP VOSTOK: Creditors Must File Claims by February 28 ------------------------------------------------------ LLC Skap Vostok has declared insolvency. Creditors have until Feb. 28, 2008, to submit written proofs of claim. Inquiries can be addressed to (+996 312) 65-02-33, 24-05-45. =================== L U X E M B O U R G =================== MILLICOM INTERNATIONAL: Earns US$697.1 Million in Full Year 2007 ---------------------------------------------------------------- Millicom International Cellular S.A. reported net income of US$697.1 million on net sales of US$2.63 billion for the year ended Dec. 31, 2007, compared to net income of US$168.9 million on net sales of US$1.57 billion in 2006. For the three months ended Dec. 31, 2007, the company earned US$112.7 million on net sales of US$768.2 million compared to net income of US$49.8 million on net sales of US$543.7 million for the same period in 2006. Marc Beuls, Chief Executive Officer of Millicom commented; "The strong growth recorded in the fourth quarter of 2007 demonstrates the gathering momentum within the businesses, with Millicom reporting a record intake of 3.4m new subscribers in the seasonally strong fourth quarter. For the full year, there was a total of 8.4m subscribers added in 2007, up by 56% year on year. We saw the opportunity in 2007 to increase our rate of investment, as the markets in which we operate continue to grow at a fast pace. Total capex was over US$1 billion for the full year compared to US$616 million in 2006. We expect to maintain this high level of capex with investment targeted in excess of US$1 billion in 2008." "The strongest cluster in terms of subscriber acquisition was Central America which was up 71% in the year with 1.4 million new subscribers added in fourth quarter, which was a quarterly record for a cluster. The African cluster was not far behind with subscriber growth of 66% during 2007 and over one million new subscribers were added in fourth quarter, the first time that this has happened. This is extremely encouraging for the future as the African markets have the lowest levels of penetration and so the greatest opportunity for growth. Our financial performance continues to be strong with revenues up by 67% year on year and EBITDA up by 55%. Excluding the Colombian acquisition, the respective increases in revenue and EBITDA were 47% and 45% for the year. There was impressive revenue growth of 57% in South America excluding Colombia, 53% in Africa, 44% in Central America and 33% in Asia." "The African results are particularly exciting as strong growth was experienced across all the major markets. Today we have over 2 million customers in Ghana and saw a 34% sequential growth in subscribers from the third to the fourth quarter. We have over 1m customers in both Tanzania and Senegal and saw sequential growth during the fourth quarter of 20% and 13% respectively in these two markets. In all three operations, Tigo benefited from several affordability initiatives made earlier in the year. Our investments to improve the availability, reliability and reach of the networks in these countries are now enabling us to attract the higher quality customers in these markets which should help drive future growth. The newer African markets are also now gaining traction: Congo DRC grew by 38% from the third to the fourth quarter to 547k subscribers and the smaller market of Chad grew by 14% sequentially to 323,000 subscribers. Sadly, we were asked to shut down our network by the government in Chad on January 31, 2008, because of a rebel attack on the capital city, N'Djamena. Our people are safe and the network is undamaged. The situation has improved considerably and our people are in the process of returning to our offices. We will be resuming operations imminently. Although revenue in Africa grew by 53% during the full year 2007, the very strong intake of subscribers and the development of the new businesses in Chad and DRC impacted the EBITDA margin, which was down to 31% for the year from 39% in 2006. We believe that we have seen a low in terms of EBITDA margins in Africa in third quarter and by fourth quarter there was a slight improvement. From a bigger base that will enable us to drive economies of scale, we expect to be able to continue gradually to improve the overall EBITDA margin in Africa despite continued aggressive expansion." "The results from Central America continue to be strong and again reflect the high level of investment in 2007. Tigo continues to build or hold market share. EBITDA margins in Central America increased slightly to 53% for the year, but in fourth quarter margins were down slightly to 51% reflecting the record intake in fourth quarter and the related cost of handset subsidies which were needed to attract additional high value subscribers ahead of the launch of 3G services in 2008. In Honduras a new fourth license was awarded during the quarter. Launches by the third and fourth operators are likely to accelerate penetration growth but also bring about a decline in our very high market share in Honduras, although we expect to maintain our strong number one position." "In South America all three businesses continue to grow strongly with revenue growth of 152% year on year and, excluding Colombia, this region had an underlying growth rate of 57% in 2007. As has already been announced, the Colombian regulator cut interconnect rates from 12 UScents to 6 UScents on Dec. 7, 2007. There has been a short term impact to revenues as Tigo has historically had more incoming than outgoing calls. Revenues and EBITDA in December were impacted by some US$7 million and US$5 million, respectively. We used this reduction in interconnect costs to reduce our outgoing tariffs, and at the same time, took the opportunity to reduce most other tariffs as well. Due to the price elasticity that we believe exists in this market, we expect to offset the impact of the interconnect change gradually as we progress throughout 2008. Long term, we believe that the cut in interconnect rates will be beneficial, especially for Tigo as the third operator. Tigo added 267k subscribers in fourth quarter in Colombia, an increase of 11%, and continues to see a steady growth in subscriber intake quarter on quarter. We are on track to reach our market share target of 20% in a few years." "Asian revenues grew by 33% and EBITDA by 30% in 2007 with a 41% EBITDA margin. The EBITDA margin in fourth quarter was impacted by the settlement of a revenue share dispute in Cambodia relating to the international gateway, which had an adverse impact of US$2.1m. The full year and fourth quarter EBITDA margins would have been 42% and 41% respectively, without this settlement cost. Sri Lanka continues to grow strongly with EBITDA margins in excess of 50%." "During the year, Millicom repurchased US$90 million face value of the 10% Senior Notes as part of an on-going program to improve balance sheet efficiency by retiring debt at the corporate level and replacing it with debt at the operating companies which helps to reduce the overall effective tax rate. We have the right to redeem the remaining Notes in December 2008 and have decided to exercise this option at that time. Due to the planned early redemption, we accrued the bulk of the 5% redemption premium in the fourth quarter, increasing interest expense by US$31 million." "After the year end, Millicom forced the conversion of its US$200 million convertible bond, again removing corporate debt that will be replaced with local operating company debt. Millicom will save approximately US$16 million of interest at the corporate level over the next two years by redeeming this debt early." "Due to the better than expected results of our Colombian operation during the year, and the anticipated strength of this operation going forward, we have been able to record a deferred tax asset in the fourth quarter for the net operating losses assumed as part of this acquisition and the losses incurred since the acquisition date. The total tax benefit recorded by Colombia Movil in the fourth quarter was US$86 million. This has resulted in an effective tax rate for the Group of 16% for the full year in 2007." "As a result of the one time net cash flow benefit attributable to the Paktel sale, the Board of Directors is recommending a special dividend of US$2.40 a share to be paid following ratification at the Annual General Meeting in May 2008. The Board will consider establishing a recurring dividend in future on the basis of the expected free cash flows, which is EBITDA less interest, taxes and Capex." "Today Millicom has a very strong balance sheet which will enable the Company to continue to exploit its strong market position in sixteen of the best growth markets in the world. This financial strength with very low leverage enables us to look at a wide variety of options to generate shareholder value in an uncertain economic climate which may bring opportunities. Headquartered in Bertrange, Luxembourg, and controlled by Sweden's AB Kinnevik, Millicom International Cellular S.A. -- http://www.millicom.com/-- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of around 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America at December 2005 is 15.2 million. * * * As reported in the Troubled Company Reporter-Europe on Nov. 16, 2007, Moody's Investors Service has upgraded ratings of Millicom International Cellular S.A. The corporate family rating was upgraded to Ba2 from Ba3 and the rating on the existing senior notes was upgraded to B1 from B2. Moody's said the outlook on the ratings is stable. =========== N O R W A Y =========== NORTEL NETWORKS: Plans Joint Venture with Motorola -------------------------------------------------- Motorola Inc. and Nortel Networks are in talks to form a joint venture that would merge their wireless network infrastructure, the China Post reports, citing the Associated Press. Matt Hartley, at the Globe and Mail, says that a deal between the two companies would remove excess capacity in the telecom industry. But, according to analysts, the deal faces major hurdles. "I certainly question this," Allen Nogee, an analyst with In- Stat, was quoted by the Mail as saying. "They've both had problems, so I'm not sure that putting two wrongs together necessarily make a right." The deal, according to reports, is expected to have revenue in excess of US$10 billion. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance By simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * Nortel Networks Corp. still carries Moody's Investors Service 'B3' Senior Unsecured Debt rating which was placed on March 22, 2007. =========== R U S S I A =========== CHULMAN LLC: Tatarstan Bankruptcy Hearing Slated for April 15 ------------------------------------------------------------- The Arbitration Court of Tatarstan will convene on April 15, 2008, to hear the bankruptcy supervision procedure on LLC Agricultural Company Chulman. The case is docketed under Case No. A65-27537/2007-SG4-27. The Temporary Insolvency Manager is: I. Nurutdinov Post User Box 18092 Naberezhnye Chelny 423818 Tatarstan Russia The Court is located at: The Arbitration Court of Tatarstan Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: LLC Agricultural Company Chulman Urusovo Menzelinskiy Tatarstan Russia ENTERPRISE ECOLOGICAL: Creditors Must File Claims by February 28 ---------------------------------------------------------------- Creditors of OJSC Enterprise Ecological Equipment of Experimental Engineering (TIN 5031007100) have until Feb. 28, 2008, to submit proofs of claim to: O. Denisova Temporary Insolvency Manager Post User Box of NP SRO NAU Delo 127562 Moscow Russia The Arbitration Court of Moscow will convene at 2:40 p.m. on April 4, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A41-K2-18780/07. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: OJSC Enterprise Ecological Equipment of Experimental Engineering Volodarskogo 22 Noginsk Moscow Russia KHAKASSKIY DIARY: Creditors Must File Claims by March 28 -------------------------------------------------------- Creditors of OJSC Khakasskiy Diary have until March 28, 2008, to submit proofs of claim to: S. Makletsov Insolvency Manager Pushkina Str. 211 Abakan 655004 Khakasiya Russia Tel: (3902) 25-22-48 The Arbitration Court of Khakasiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. NA74-1461/2007. The Debtor can be reached at: OJSC Khakasskiy Diary Abakan Khakasiya Russia METALLURG-STROY: Creditors Must File Claims by February 28 ---------------------------------------------------------- Creditors of LLC Metallurg-Stroy Plus have until Feb. 28, 2008, to submit proofs of claim to: L. Peshkov Temporary Insolvency Manager Post User Box 30 Moskovskiy Pr. 118 Naberezhnye Chelny 423834 Tatarstan Russia The Arbitration Court of Tatarstan will convene at 9:15 a.m. on May 3, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A65-28369/ 2007-SG4-49. The Court is located at: The Arbitration Court of Tatarstan Room 12 Floor 2 Entrance 2 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: LLC Metallurg-Stroy Plus Moskovskiy Pr. 118 Naberezhnye Chelny 423834 Tatarstan Russia ROSNEFT OIL: BP Joint Venture Lulls Sakhalin Drilling Operations ---------------------------------------------------------------- OAO Rosneft Oil Co. and BP Plc have put off drilling operations at Russia's Sakhalin island, citing heavy costs and low success, Ed Crooks writes for the Financial Times. BP told FT that the exploration program in the region "hasn't been the huge success that some thought it might be," adding that there are no plans to drill wells this year. "Sakhalin is frontier exploration," Andy Inglis, BP Plc, was quoted by FT as saying. "We had early success in the Kaigansky- Vasuykansky license. In 2007, we did not have continuing success as we moved into the Shmidt area." CJSC Elvary Neftegaz, a joint venture between Rosneft (51%) and BP (49%), will now focus the exploration program on gathering and evaluating seismic and other data. Elvary have drilled six wells in the area, three of which led to discoveries. As reported in the TCR-Europe in Nov. 26, 2006, Rosneft and BP signed operating agreements for joint activity on the East- Schmidt (Sakhalin-5) and the West-Schmidt (Sakhalin-4) license blocks. It was planned that exploration activities on both blocks including drilling of six wells will be financed by BP until commerciality is confirmed; following commercial discovery the expenses will be reimbursed from Rosneft's share of production. The companies agreed to US$700 million in the area. BP said the cost of exploration was around US$50 million per well in 2006, but costs in the industry have since continued to rise sharply, FT relates. Steven Dashevsky, a managing director of Unicredit Aton in Moscow, told FT the Sakhalin 4 and 5 areas remained interesting for the long term. "[Sakhalin 4 and 5 areas are] not assets for the next four or five years, but maybe in 10 years' time," Mr. Dashevsky told FT. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The Company explores for, extracts, refines, and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * As of Feb. 7, 2008, OAO Rosneft Oil Co. carries a BB+ long-term corporate credit rating from Standard & Poor's Ratings Services. S&P said the outlook is positive. STAVROSS-AGRO: Stavropol Bankruptcy Hearing Slated for March 20 --------------------------------------------------------------- The Arbitration Court of Stavropol will convene on March 20, 2008, to hear the bankruptcy supervision procedure on CJSC Stavross-Agro. The case is docketed under Case No. A63-10665/ 2007-S5-11. The Temporary Insolvency Manager is: V. Ivanov Kavkazskiy Per. 1a Novoselitskoe Novoselitskiy 356350 Stavropol Russia The Court is located at: The Arbitration Court of Stavropol Mira Str. 4586 Stavropol Russia The Debtor can be reached at: CJSC Stavross-Agro Stavropol Russia TIMASHEVSKIY OJSC: Asset Sale Slated for February 26 ---------------------------------------------------- The Insolvency Manager and Bidding Organizer of OJSC Breeding Factory Timashevski, will open a public auction for the company's properties at 2:00 p.m. on Feb. 26, 2008, at: OJSC Breeding Factory Timashevski Parkovaya Str. 1 Industrialnyj Location Timashevsk Krasnodar Russia The company has set a RUR12,931,508 starting price for the assets on auction. Interested participants have until Feb. 20, 2008, to deposit an amount equivalent to 10% of the starting price to: OJSC Breeding Factory Timashevskiy Settlement Account 40702810600040000283 Correspondent Account 30101810200000000722 BIK 040349722 CB Kuban Credit LLC Krasnodar Russia Bidding documents must be submitted to: The Insolvency Manager and Bidding Organizer Armavirskaya Str. 45 Eysk Krasnodar Russia Tel: (86132) 2-04-71 Web: http://www.yeisk.ru/torgi.zip/ The Debtor can be reached at: OJSC Breeding Factory Timashevski Parkovaya Str. 1 Industrialnyj Location Timashevsk Krasnodar Russia VELIZH-FLAX OJSC: Court Starts Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Smolensk commenced bankruptcy supervision procedure on OJSC Velizh-Flax (TIN 6701000472, OGRN 1026700648611). The case is docketed under Case No. A40-63976/ 07-101-127B. The Temporary Insolvency Manager is: A. Ikhlov Room 50 Dzerzhinskogo Str. 5 214000 Smolensk Russia The Court is located at: The Arbitration Court of Smolensk Pr. Gagarina 46 214001 Smolensk Russia The Debtor can be reached at: OJSC Velizh-Flax Ivanovskaya Str. 25 Velizh Velizhskiy 216290 Smolensk Russia ===================== S W I T Z E R L A N D ===================== AAR BAUMONTAGEN: Thurgau Court Closes Bankruptcy Proceedings ------------------------------------------------------------ The Bankruptcy Service of Thurgau entered Dec. 11, 2007 an order closing the bankruptcy proceedings of LLC AAR Baumontagen. The Bankruptcy Service of Thurgau can be reached at: Bankruptcy Service of Thurgau 8510 Frauenfeld TG Switzerland The Debtor can be reached at: LLC AAR Baumontagen Sonnenhugel 11 9554 Tagerschen TG Switzerland C-UNO JSC: Creditors' Liquidation Claims Due by Feb. 21 ------------------------------------------------------- Creditors of JSC C-Uno have until Feb. 21, 2008, to submit their claims to: Clavadetscher + Partner Marktgasse 14 4900 Langenthal Aarwangen BE Switzerland The Debtor can be reached at: JSC C-Uno Bern Switzerland RS GASTRO: Creditors' Liquidation Claims Due by Feb. 28 ------------------------------------------------------- Creditors of LLC RS Gastro have until Feb. 28, 2008, to submit their claims to: Treuhandburo Lukas Kaiser Morgartenstrasse 5 6003 Lucerne Switzerland The Debtor can be reached at: LLC RS Gastro Zug Switzerland SHOE SHINE: Creditors' Liquidation Claims Due by Feb. 21 -------------------------------------------------------- Creditors of LLC Shoe Shine Kinderschuhe have until Feb. 21, 2008, to submit their claims to: Milva Hoogstraal Liquidator Heuelstrasse 26 8032 Zurich Switzerland The Debtor can be reached at: LLC Shoe Shine Kinderschuhe Zurich Switzerland SOURCING CENTRE: Creditors' Liquidation Claims Due by Feb. 25 ------------------------------------------------------------- Creditors of LLC SOURCING CENTRE have until Feb. 25, 2008, to submit their claims to: LLC SOURCING CENTRE Flurhofstrasse 158b 9000 St. Gallen Switzerland TOP SPECIAL: Thurgau Court Closes Bankruptcy Proceedings -------------------------------------------------------- The Bankruptcy Service of Thurgau entered Dec. 12, 2007, an order closing the bankruptcy proceedings of JSC Top Special Verlag. The Bankruptcy Service of Thurgau can be reached at: Bankruptcy Service of Thurgau 8510 Frauenfeld TG Switzerland The Debtor can be reached at: JSC Top Special Verlag Alte Landstrasse 19 Mail box: 123 8596 Scherzingen Kreuzlingen TG Switzerland TWIN FALLS: Creditors' Liquidation Claims Due by Feb. 22 -------------------------------------------------------- Creditors of JSC Twin Falls have until Feb. 22, 2008, to submit their claims to: JSC Virtue Trustees (Switzerland) Liquidator Muhlemattstrasse 56 5001 Aarau AG Switzerland The Debtor can be reached at: JSC Twin Falls Zug Switzerland TWINLOGIC LLC: Creditors' Liquidation Claims Due by Feb. 20 ----------------------------------------------------------- Creditors of LLC Twinlogic have until Feb. 20, 2008, to submit their claims to: Dr. C. Frutiger Zelglistrasse 19 8122 Binz ZH Switzerland The Debtor can be reached at: LLC Twinlogic Maur Uster ZH Switzerland ============= U K R A I N E ============= IZIUMAL AGRICULTURAL: Creditors Must File Claims by February 27 --------------------------------------------------------------- Creditors of OJSC Iziumal Agricultural Chemistry (code EDRPOU 05491103) have until Feb. 27, 2008, to submit written proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 14, 2008. The case is docketed under Case No. B-48/167-07. The Debtor can be reached at: OJSC Iziumal Agricultural Chemistry Ivanchukovka Izium District Kharkov Ukraine KOZHANKA SUGAR: Creditors Must File Claims by February 27 --------------------------------------------------------- Creditors of OJSC Kozhanka Sugar Plant (code EDRPOU 00372471) have until Feb. 27, 2008, to submit written proofs of claim to: Vladimir Zavalniuk Liquidator Kozitsky Str. 46 21050 Vinnica Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 10, 2008. The case is docketed under Case No. B 13/287-07. The Economic Court of Kiev Komintern Str. 16 01032 Kiev Ukraine The Debtor can be reached at: OJSC Kozhanka Sugar Plant Kozhanka Fastov District Kiev Ukraine LAN-AGRIKO LLC: Proofs of Claim Deadline Set February 24 -------------------------------------------------------- Creditors of Agricultural LLC Lan-Agriko (code EDRPOU 33220405) have until Feb. 24, 2008, to submit written proofs of claim to: Svetlana Riazanova Temporary Insolvency Manager Belov Str. 18/77 14000 Chernigov Ukraine The Economic Court of Chernigov commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 16/50b. The Economic Court of Chernigov Mir Avenue 20 14000 Chernigov Ukraine The Debtor can be reached at: Agricultural LLC Lan-Agriko Frunze Str. 14 Krasniye Partizany Noseyevsky District Chernigov Ukraine PERVOMAYSKY AGRICULTURAL: Creditors Must File Claims by Feb. 27 --------------------------------------------------------------- Creditors of OJSC Pervomaysky Agricultural Chemistry (code EDRPOU 05491178) have until Feb. 27, 2008, to submit written proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B-31/56-07. The Debtor can be reached at: OJSC Pervomaysky Agricultural Chemistry Pervomaysky Kharkov Ukraine RINGO-TRADE LLC: Creditors Must File Claims by February 27 ---------------------------------------------------------- The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 15, 2008. The case is docketed under Case No. 21/3/08. Creditors of LLC Ringo-Trade (code EDRPOU 33869619) have until Feb. 27, 2008, to submit written proofs of claim to: The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Ringo-Trade Pobeda Avenue 63 69035 Zaporozhje Ukraine SVITANOK LLC: Creditors Must File Claims by February 27 ------------------------------------------------------- Creditors of LLC Svitanok (code EDRPOU 03730035) have until Feb. 27, 2008, to submit written proofs of claim to: The Economic Court of Vinnica Hmelnickiy Str. 7 21036 Vinnica Ukraine The Economic Court of Vinnica commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 15, 2008. The case is docketed under Case No. 5/24-08. The Debtor can be reached at: LLC Ssvitanok Kovalevka Str. 1 Sopin Pogrebischensky District 22211 Vinnica Ukraine TRADING HOUSE: Creditors Must File Claims by February 24 -------------------------------------------------------- Creditors of LLC Trading House (code EDRPOU 31642277) have until Feb. 24, 2008, to submit written proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov commenced bankruptcy proceedings against the company after finding it insolvent on Jan. 8, 2008. The case is docketed under Case No. B-39/220-07. The Debtor can be reached at: LLC Trading House Kirgizskaya Str. 94/1 61105 Kharkov Ukraine =========================== U N I T E D K I N G D O M =========================== AFC BOURNEMOUTH: Enters Into Administration ------------------------------------------- AFC Bournemouth, also known as the Cherries, has gone into administration with debts of around GBP4 million, PA Sport reports. According to AFC Bournemouth chairman Jeff Mostyn, the club, which will automatically receive a 10-point deduction by the Football League, "has been in steady decline over the last 10 years," adding "without any off-the-pitch income there was no way anybody could have helped it survive." Gerald Krasner, PA Sport relates, has been appointed administrator. He will be assisted by Julie Palmer of Begbies Traynor in running the club, whose standing is expected to drop from 22 to the foot of the table, 11 points adrift of safety. Mr. Krasner told PA Sport, "I will be spending the next few weeks looking for investment, for people to make offers to come and see us with a view to buying out the club in a normal way and maximizing a return for the creditors of this club." The administrator, who has only eights weeks to draw up a series of proposals for creditors, revealed there was more than one consortium eyeing to take over the Cherries, although he admitted the club is likely to face a points deduction next season if they fail to carry out a "a successful administration coupled with a successful Company Voluntary Arrangement," Brendan McLoughlin writes for the paper. AFC Bournemouth -- http://www.afcb.premiumtv.co.uk/-- is an English football team currently playing in Football League One. The side plays at the Fitness First Stadium (Dean Court) in Kings Park, Bournemouth, Dorset. The club has existed since 1899. BLUE ROOM: Names Neil Francis Hickling Liquidator ------------------------------------------------- Neil Francis Hickling of Smith & Williamson Ltd. was appointed liquidator of The Blue Room (Gift Company) Ltd. on Feb. 1, 2008, for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Smith & Williamson Ltd. No. 1 St. Swithin Street Worcester WR1 2PY England CHRYSLER LLC: U.S. Bankruptcy Court Evaluates Tooling Request ------------------------------------------------------------- Honorable Phillip J. Shefferly of the U.S. Bankruptcy Court for the Eastern District of Michigan began yesterday a two-day trial to consider the merits of Chrysler LLC's request to pull out its tooling equipment from Plastech Engineered Products Inc. and its debtor-affiliates' plants. The Court will also consider Chrysler's motion for a temporary restraining order that would allow Chrysler or its agents to enter Plastech's plants and obtain possession of the equipment. The parties had temporarily resolved their dispute by entry of an interim agreement which provides that: i) Plastech will continue delivering component parts to Chrysler until Feb. 15, 2008; and ii) Plastech will allow Chrysler supervised access to Plastech facilities for purposes of inventory and inspection. Revenues Could Plummet Absent Tooling Equipment The Debtors, however, oppose Chrysler's request for lifting of the automatic stay under Section 362(d)(1) that would allow it to take possession of the Tooling. Chrysler wants possession of the Tooling so that it could transfer manufacturing of component parts to other parties. Plastech notes that Chrysler accounts for about US$200,000,000 of its annual revenues. Thus, if Chrysler's proposal is granted, the Debtors would immediately lose approximately 15% of their annual revenues. This would occur when the Debtors' business is most vulnerable, the first two weeks of their Chapter 11 cases, avers Peter Smidt, executive vice president for Finance and chief financial officer of the Debtors. Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit, Michigan, says that Chrysler is stayed by the Bankruptcy Code from taking possession of the Tooling. Ms. Fish contends that pursuant to Section 362(a)(3) of the Bankruptcy Code: -- Chysler is prohibited from taking unpaid tooling, which pursuant to their Financial Accommodation Agreements, are property of the estate. Section 362(a)(3) prohibits taking any action against estate property. The Debtors are also under no obligation to sell the unpaid tooling to Chrysler under the FFAs. -- Chrysler is prohibited from taking possession of any Tooling it owns but in the possession, custody and control of the Debtors. Regardless of who legally owns the Tooling, any Tooling in the possession of the Debtors may only be removed upon a modification of the automatic stay. Sufficient cause does not exist to modify the automatic stay under Section 362(d), Ms. Fish asserts. She argues that: -- The Debtors' and creditors' interests in prohibiting Chrysler from seizing any owned tooling substantially outweigh any harm that Chrysler might suffer if the stay is not lifted. Plastech will lose business if equipment are removed from their plants. On the other hand, Chrysler will suffer, "at most, financial damages, which damages were self-inflicted and not legally cognizable." -- Chrysler is not likely to prevail on the merits of its underlying claims. Ms. Fish notes that to grant a temporary restraining order or modify the automatic stay, the Court must also conclude that Chrysler has a substantial likelihood of prevailing on its underlying claims, all of which are premised on two contentions: i. that Chrysler properly terminated the Supply Agreements on Feb. 1, 2008; and ii. that Chrysler owns the Tooling. The Debtors say that they will demonstrate at the hearing that Chrysler is not likely to prevail on either contention. Ms. Fish argues that: (a) Chrysler's notices were ineffective. Notices or letters sent by Chrysler on Jan. 15 and 16, and Feb. 1, which purportedly terminated the supply agreements, were not sent to the proper notice parties, which include the Debtors' other customers. In addition, the notices were "simply impermissibly vague" and, thus, did not trigger Plastech's 10-day obligation to cure defaults under the agreements. (b) Plastech timely cured certain of the alleged defaults and Chrysler is estopped from asserting others. Within two weeks following the January Notices, Plastech had cured or was on the verge of curing the alleged defaults regarding its financial condition and accommodation requests. (c) Chrysler is not likely to prevail on the merits of its contention that it could terminate the supply agreements for breach. Among other things: -- Plastech is not in breach of any quality obligation, -- Plastech is not in breach of any obligation to pay tooling suppliers and provide verification, -- Plastech has not breached any quality issues requiring third-party inspection, -- Plastech's request to advance payables did not constitute a breach, and -- Plastech's planned closures of certain facilities did not constitute any breach. Ms. Fish adds that Chrysler is not likely to show that the tooling is owned by Chrysler and held by the Debtors under Article 7 Of The Michigan Uniform Commercial Code. She avers that Chrysler did not and, indeed, cannot establish that a bailment relationship exists between itself and the Debtors. Previously, the Debtors refuted Chrysler's assertions that it will suffer significant harm absent a lifting of the stay. "Any harm to Chrysler was self-inflicted," the Debtors' proposed counsel, Gregg M. Galardi, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, asserted. "Any harm to Chrysler is not irreparable," he added. Plastech also asserted that even if the stay is lifted, it could take weeks, even months, for the equipment to be removed from the Debtors' facilities and be set up in another facility. Granting Chrysler's request, Mr. Galardi argued, would reward Chrysler for acting precipitously at a time when the Debtors efforts need to be, and indeed were, focused elsewhere in an effort to maximize the value of their estates for the benefit of all creditors. Other Objections Tri-Way Mfg., Inc., doing business as Tri-Way Mold & Engineering, which holds a lien on the molds Chrysler seeks to recover, wants Chrysler's lift stay request denied, absent the satisfaction of Tri-Way's statutory liens. In addition, H.S. Die & Engineering, Inc. and H.S. Die Rantoul Mold Services, LLC, which manufacture and supply Plastech with tools, dies and molds, including the Molds Chrysler seeks to recover, also objected to Chrysler's request. H.S. Die asserted that granting the lift stay request would entitle Chrysler to take possession or exercise any rights as to the Tools, which is subject to certain liens held by H.S. Die. H.S. Die is the Debtors' largest general unsecured creditor with a US$6,360,328 claim according to papers filed at the time of their bankruptcy filing. One of Their Own Rival carmakers General Motors Corp. and Ford Motor Co. appeared before the Court Wednesday to show support to Chrysler LLC, The Associated Press says. AP's Dee-Ann Durbin reports that spokesperson for GM and Ford as well as for auto supplier Johnson Controls Inc. told the Court they believe they have the right to reclaim their own equipment under their contracts with Plastech. "GM is not taking a position regarding whether the court should grant Chrysler the relief it is seeking," GM spokesman Frank Sopata said, according to AP. "But GM does strongly support Chrysler's position regarding the tooling since we have entered into the same agreement as Chrysler and the other major customers of Plastech to reclaim our tooling should it be necessary." Ford and GM haven't experienced any disruption in their supply from Plastech or reported any quality problems, AP says. "We've continued to work with them all along," Ford spokesman Todd Nissen told the Court, AP relates. AP notes that GM Chief Financial Officer Fritz Henderson said Tuesday that GM hasn't made any decisions about whether to keep doing business with Plastech but is trying to help the supplier. "We're working constructively with them to help them with their current financial difficulties," he said. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Ford Motor Based in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. About Chrysler LLC Based 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. COLLINS & AIKMAN: Bayer Unit Buys IP Rights on Thermoplastics ------------------------------------------------------------- Bayer MaterialScience AG has purchased the thermoplastic polyurethanes related intellectual property rights from Collins & Aikman Corporation. In this way, Bayer MaterialScience is extending its portfolio for TPU molded skins used in instrument panels in the vehicle interior. Financial details of the transaction were not being disclosed. The intellectual property rights acquired comprise different TPU formulations and patents and the expertise that goes with it. The thermoplastic "size-reduction technologies" developed by C&A were a critical factor in the decision to buy. These "micro-" and "mini-beading" methods lend powder particles a specific shape and a size distribution that enables superior flow in the mold during the melting process. TPU grades produced in this way are ideal for slush molding (sintering), for which Bayer MaterialScience already holds a wide range of patents. This method is used to mass-produce molded skins for instrument panels. The uniform size of the powder particles enables components to be produced in the quality required by the automotive industry when the design includes deep undercuts, sharp radii, surface logos or a deep grain. The formulations are aliphatic TPU grades which are lightfast and therefore do not discolor over time when exposed to UV light. Aliphatics of this kind do not have to be post-painted or in-mold coated, thus saving OEMs and part manufacturers the outlay and expense of applying a coating to the finished instrument panels and interior parts. In the future, Bayer MaterialScience is looking to offer the relevant TPU product in the form of a colored powder that exactly matches the interior colors specified by the OEM. By acquiring C&A's know-how, Bayer MaterialScience said it can now provide a material technology that is deployed in a series of OEM applications for molded skins in car instrument panels. For example, General Motors, Ford, Chrysler and various Asian transplants use TPU in current and future vehicle models fitted with invisible passenger airbags. In this design, the molded skin must retain its properties over the entire life cycle of the vehicle. "The surface material for instrument panels must remain ductile even at temperatures of below -30 �C. This is one of the OEMs' main performance requirements, in order to prevent splintering when the airbag is deployed," explained Mike Zierden, who heads the TPU Resins Business Unit at Bayer MaterialScience LLC in the U.S. "The new TPU formulation in our portfolio offers superior mechanical properties, including excellent scratch resistance. At the same time it is providing a nice leather-like feel." The long-term heat resistance of TPU is also superior to most alternative materials. About Bayer MaterialScience Bayer MaterialScience AG -- http://www.bayermaterialscience.com/ -- had 2006 sales of EUR10.2 billion (continuing operations), making it among the world's largest polymer companies. It manufactures polymer materials and develops solutions for every day customer products. The main segments served are the automotive, electrical and electronics, construction and sports and leisure industries. Bayer MaterialScience has 30 production sites around the globe and employed approximately 14,900 people at the end of 2006. Bayer MaterialScience is a Bayer Group company. About Collins & Aikman Headquartered in Troy, Mich., Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtors with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. On Aug. 30, 2006, the Debtors filed a Joint Chapter 11 Plan and a Disclosure Statement explaining that plan. On Dec. 22, 2006, they filed an Amended Plan and on Jan. 22, 2007, filed a modified Amended Plan. On Jan. 25, 2007, the Court approved the adequacy of the Disclosure Statement. On July 18, 2007, the Court confirmed the Debtors' Liquidation Plan which became effective on Oct. 12, 2007. The Debtors' cases are set to be closed on Feb. 28, 2008. CONCORDIA BUS: S&P Raise Ratings to B- in Line with Parent ---------------------------------------------------------- Standard & Poor's Ratings Services assigned a recovery rating of '4' to Concordia Bus Nordic AB's existing EUR130 million senior secured notes, indicating the expectation of average (30%-50%) recovery in the event of a payment default. The issue rating has been raised to 'B-' from 'CCC+', in line with the corporate credit rating on Concordia Bus Nordic's parent, Sweden-based bus services provider Concordia Bus Nordic Holding AB (B- Stable/--). The change in the issue rating reflects the application of the recovery scale and criteria to this debt instrument. "Recovery expectations are underpinned by the relatively comprehensive security package and favorable insolvency regimes, but are also offset by the diminished value of the owned bus fleet by the time of default under our hypothetical default scenario," said Standard & Poor's recovery analyst Marc Lewis. "Given that new buses are being financed on hire purchase terms this will lead to depreciating owned bus asset values." Recovery prospects for secured noteholders are therefore likely to diminish over time. Our rating assumes the most likely point of default to be at the refinancing of the notes in 2009, but if default were to occur beyond this time period, the recovery potential is likely to be lower. COTT CORP: Net Loss Rises to US$76.8MM in Quarter Ended Dec. 29 --------------------------------------------------------------- Cott Corporation reported results for the fourth quarter and fiscal year ended Dec. 29, 2007. Net loss in the fourth quarter was US$76.8 million compared to a net loss of US$29.6 million in the fourth quarter of 2006. Asset impairment charges for the quarter amounted to US$65.5 million pre-tax, which comprised of US$55.8 million goodwill impairment, and US$9.7 million of asset impairments in North America. The comparable prior year quarter included US$23.5 million of restructuring and asset impairment charges, plus US$23.3 million of unusual costs. Absent these charges, Cott would have generated a US$8.8 million operating loss for the current quarter as compared to US$6.5 million of income in the comparable prior year period. "In 2007, we were impacted by an extreme commodity environment, CSD decline in North America, higher competitive promotional activities, and various internal challenges that prevented us from achieving our objectives," Brent Willis, Cott's chief executive officer, said. "This very difficult year is now behind us, and most importantly, in 2007, we took essential steps to remake the company in various areas, such as people, structure, process changes, product manufacturing capability, pricing and cost management. We expect these initiatives to significantly improve our performance in 2008." "In the fourth quarter, we sharpened our focus on a few key initiatives with our most important customers," Rick Dobry, Cott's president for North America, said. "These include the roll out of our new water program, continued distribution expansion and brand development of our new products, and merchandising of our core business. Late in the quarter, we secured the final round of pricing for the year." "As a result of this year's performance in our U.S. operations, our annual asset impairment analysis resulted in a non-cash goodwill impairment of US$55.8 million," Juan Figuereo, Cott's chief financial officer, said. "With experienced leaders in the U.K., Mexico, and RC International, we are confident about the future success and continued growth of our international operations," Mr. Willis said. "We expect our International business unit to continue delivering strong gains in 2008, and I am working closely with each of these business unit leaders to accelerate our profitable growth." Full Year Results For the full year ended Dec. 29, 2007, net loss in 2007 was US$73.1 million compared to US$17.5 million in 2006. Restructuring, asset impairments, and other charges for the year were US$90.8 million compared to US$38.5 million in the prior year. The full-year operating loss was US$57.1 million, as compared to income of US$2.3 million in the prior year. At Dec. 29, 2007, the company's balance sheet showed total assets of US$1.14 billion, total liabilities of US$0.71 billion and total shareholders' equity of US$0.43 billion. About Cott Corporation Headquartered in Toronto, Ontario, Cott Corporation -- http://www.cott.com/--is a provider of retailer brand soft drinks. The company commercializes its business in over 60 countries worldwide, with its principal markets being the United States, Canada, the United Kingdom and Mexico. Cott markets or supplies over 200 retailer and licensed brands, and company- owned brands including Cott, RC, Vintage, Vess and So Clear. Its products include carbonated soft drinks, sparkling and flavored waters, energy drinks, sports drinks, juices, juice drinks and smoothies, ready-to-drink teas, and other non- carbonated beverages. * * * As reported in the Troubled Company Reporter-Europe on Nov. 21, 2007, Moody's Investors Service downgraded the Corporate Family Rating of Cott Corporation to B1 from Ba3. The outlook is negative. This concludes the review for downgrade initiated on Sept. 21, 2007. CUMMINS INC: Board Declares 12.5 Cents Per Share Dividend --------------------------------------------------------- Cummins Inc.'s Board of Directors has declared a quarterly common stock cash dividend of 12.5 cents per share, payable March 3, 2008, to shareholders of record on Feb. 22, 2008. The dividend amount reflects the Company's 2-for-1 stock split, which took effect Jan. 2, 2008. About Cummins Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI) -- http://www.cummins.com/-- designs, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins has Latin-American operations, particularly in Venezuela, Brazil, Peru, Colombia, and Argentina. Its operations in the Asia-Pacific are found in China, Japan and Korea. Its also has facilities in Europe, particularly in the United Kingdom. * * * Cummins' Junior Convertible Subordinated Debentures carry Fitch's 'BB' rating with a stable outlook. Moody's Investors Service raised Cummins' convertible preferred stock rating to Ba1 from Ba2 and withdrew the company's SGL-1 Speculative Grade Liquidity rating and its Ba1 Corporate Family Rating. ELECTRONIC DATA: Bob Hershey to Lead SAP Consulting Practice ------------------------------------------------------------ Electronic Data Systems Corp. has appointed Bob Hershey as vice president and SAP Consulting Practice Leader for the Americas and Asia Pacific regions. He will report directly to senior executive vice president of Applications Services, Charlie Feld. Mr. Hershey's appointment is a key ingredient in the company's strategic initiative to expand its global SAP application-based consulting practice. The Global SAP Consulting Practice is an integral component of the company's 2008 Applications Services growth plan for high-end, industry-focused applications development and consulting. Mr. Hershey will be responsible for building out and growing the SAP Consulting Practice in the Americas and Asia Pacific regions. His responsibilities include managing the regional partnership, the SAP sales process, subject-matter expertise, and solutioning and delivering SAP implementations. "I'm pleased and excited to have Bob on the EDS team to help build our expanded SAP Consulting Practice," said Mr. Feld. "His in-depth experience and knowledge will help us kick-start and aggressively drive our higher value-chain proposition for Applications Services." Mr. Hershey's appointment follows an expanded agreement announced between Electronic Data and SAP last October. By collaborating with SAP on client engagement training and techniques designed to drive the long-term growth of its consulting practice, Electronic Data will further enhance its existing SAP capabilities and bring end-to-end consulting and systems integration to the market by early 2008. Prior to joining the company, Mr. Hershey was senior vice president and global enterprise solutions practice leader at BearingPoint, Inc. and led more than 30 managing directors for their North American Technology Solutions organization including sales, delivery and operations. He was also instrumental in developing strategy for BearingPoint's US$1.3 billion SAP and Oracle practices globally, spearheading its offshore delivery strategy and helping position its practice toward higher growth solutions and services. While at BearingPoint, he was also the Global Oracle Practice leader and Global PeopleSoft Practice leader. Previously, Mr. Hershey served as a principal in charge for BearingPoint's (then KPMG Consulting) North America Consumer and Industrial Markets eBusiness Practice, and Consumer Markets Segment leader and principal for its North America Finance Practice. Mr. Hershey holds a Bachelor of Arts degree from Williams College in Williamstown, Mass., and a master of business administration degree from New York University School of Business. About Electronic Data System Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS) -- http://www.eds.com/-- is a global technology services company delivering business solutions to its clients. The company founded the information technology outsourcing industry more than 40 years ago. The company delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. The company has locations in Argentina, Australia, Austria, Brazil, China, Chile, Greece, Hong Kong, India, Japan, Malaysia, Mexico, Puerto Rico, Singapore, Taiwan, Thailand, South Korea, United Kingdom, among others. * * * Moody's placed EDS Corp.'s senior unsecured debt rating at 'Ba1' in July 2004, and its probability of default rating at 'Ba1' in September 2006. Moody's said the outlook is positive. The ratings still hold to date. FARROW INVESTMENTS: HSBC Bank Brings In PwC as Receivers -------------------------------------------------------- HSBC Bank Plc appointed Stephen Mark Oldfield and Robert Jonathan Hunt of PricewaterhouseCoopers LLP joint administrative receivers of Farrow Investments Ltd. (Company Number 3602029) on Jan. 23, 2008. PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. The company can be reached at: Farrow Investments Ltd. Browston Lane Browston Great Yarmouth Norfolk NR31 9DP England Tel: 01502 732 431 FORD MOTOR: Backs Up Chrysler's Tooling Request from Plastech ------------------------------------------------------------- Rival carmakers General Motors Corp. and Ford Motor Co. appeared before the U.S. Bankruptcy Court for the Eastern District of Michigan Wednesday to support Chrysler LLC'S request to recover its tooling equipment from Plastech Engineered Products Inc. and its debtor-affiliates' plants, The Associated Press says. AP's Dee-Ann Durbin reports that spokesperson for GM and Ford as well as for auto supplier Johnson Controls Inc. told the Court they believe they have the right to reclaim their own equipment under their contracts with Plastech. "GM is not taking a position regarding whether the court should grant Chrysler the relief it is seeking," GM spokesman Frank Sopata said, according to AP. "But GM does strongly support Chrysler's position regarding the tooling since we have entered into the same agreement as Chrysler and the other major customers of Plastech to reclaim our tooling should it be necessary." Ford and GM haven't experienced any disruption in their supply from Plastech or reported any quality problems, AP says. "We've continued to work with them all along," Ford spokesman Todd Nissen told the Court, AP relates. AP notes that GM Chief Financial Officer Fritz Henderson said Tuesday that GM hasn't made any decisions about whether to keep doing business with Plastech but is trying to help the supplier. "We're working constructively with them to help them with their current financial difficulties," he said. Chrysler-Plastech Dispute Honorable Phillip J. Shefferly began yesterday a two-day trial to consider the merits of Chrysler's request. The Court was also set to consider Chrysler's motion for a temporary restraining order that would allow Chrysler or its agents to enter Plastech's plants and obtain possession of the equipment. Chrysler and Plastech have temporarily resolved their dispute by entry of an interim agreement which provides that: i) Plastech will continue delivering component parts to Chrysler until Feb. 15, 2008; and ii) Plastech will allow Chrysler supervised access to Plastech facilities for purposes of inventory and inspection. Revenues Could Plummet Absent Tooling Equipment The Debtors, however, oppose Chrysler's request for lifting of the automatic stay under Section 362(d)(1) that would allow it to take possession of the Tooling. Chrysler wants possession of the Tooling so that it could transfer manufacturing of component parts to other parties. Plastech notes that Chrysler accounts for about US$200,000,000 of its annual revenues. Thus, if Chrysler's proposal is granted, the Debtors would immediately lose approximately 15% of their annual revenues. This would occur when the Debtors' business is most vulnerable, the first two weeks of their Chapter 11 cases, avers Peter Smidt, executive vice president for Finance and chief financial officer of the Debtors. Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit, Michigan, says that Chrysler is stayed by the Bankruptcy Code from taking possession of the Tooling. Ms. Fish contends that pursuant to Section 362(a)(3) of the Bankruptcy Code: -- Chysler is prohibited from taking unpaid tooling, which pursuant to their Financial Accommodation Agreements, are property of the estate. Section 362(a)(3) prohibits taking any action against estate property. The Debtors are also under no obligation to sell the unpaid tooling to Chrysler under the FFAs. -- Chrysler is prohibited from taking possession of any Tooling it owns but in the possession, custody and control of the Debtors. Regardless of who legally owns the Tooling, any Tooling in the possession of the Debtors may only be removed upon a modification of the automatic stay. Sufficient cause does not exist to modify the automatic stay under Section 362(d), Ms. Fish asserts. She argues that: -- The Debtors' and creditors' interests in prohibiting Chrysler from seizing any owned tooling substantially outweigh any harm that Chrysler might suffer if the stay is not lifted. Plastech will lose business if equipment are removed from their plants. On the other hand, Chrysler will suffer, "at most, financial damages, which damages were self-inflicted and not legally cognizable." -- Chrysler is not likely to prevail on the merits of its underlying claims. Ms. Fish notes that to grant a temporary restraining order or modify the automatic stay, the Court must also conclude that Chrysler has a substantial likelihood of prevailing on its underlying claims, all of which are premised on two contentions: i. that Chrysler properly terminated the Supply Agreements on February 1, 2008; and ii. that Chrysler owns the Tooling. The Debtors say that they will demonstrate at the hearing that Chrysler is not likely to prevail on either contention. Ms. Fish argues that: (a) Chrysler's notices were ineffective. Notices or letters sent by Chrysler on Jan. 15 and 16, and Feb. 1, which purportedly terminated the supply agreements, were not sent to the proper notice parties, which include the Debtors' other customers. In addition, the notices were "simply impermissibly vague" and, thus, did not trigger Plastech's 10-day obligation to cure defaults under the agreements. (b) Plastech timely cured certain of the alleged defaults and Chrysler is estopped from asserting others. Within two weeks following the January Notices, Plastech had cured or was on the verge of curing the alleged defaults regarding its financial condition and accommodation requests. (c) Chrysler is not likely to prevail on the merits of its contention that it could terminate the supply agreements for breach. Among other things: -- Plastech is not in breach of any quality obligation, -- Plastech is not in breach of any obligation to pay tooling suppliers and provide verification, -- Plastech has not breached any quality issues requiring third-party inspection, -- Plastech's request to advance payables did not constitute a breach, and -- Plastech's planned closures of certain facilities did not constitute any breach. Ms. Fish adds that Chrysler is not likely to show that the tooling is owned by Chrysler and held by the Debtors under Article 7 Of The Michigan Uniform Commercial Code. She avers that Chrysler did not and, indeed, cannot establish that a bailment relationship exists between itself and the Debtors. Previously, the Debtors refuted Chrysler's assertions that it will suffer significant harm absent a lifting of the stay. "Any harm to Chrysler was self-inflicted," the Debtors' proposed counsel, Gregg M. Galardi, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, asserted. "Any harm to Chrysler is not irreparable," he added. Plastech also asserted that even if the stay is lifted, it could take weeks, even months, for the equipment to be removed from the Debtors' facilities and be set up in another facility. Granting Chrysler's request, Mr. Galardi argued, would reward Chrysler for acting precipitously at a time when the Debtors efforts need to be, and indeed were, focused elsewhere in an effort to maximize the value of their estates for the benefit of all creditors. Other Objections Tri-Way Mfg., Inc., doing business as Tri-Way Mold & Engineering, which holds a lien on the molds Chrysler seeks to recover, wants Chrysler's lift stay request denied, absent the satisfaction of Tri-Way's statutory liens. In addition, H.S. Die & Engineering, Inc. and H.S. Die Rantoul Mold Services, LLC, which manufacture and supply Plastech with tools, dies and molds, including the Molds Chrysler seeks to recover, also objected to Chrysler's request. H.S. Die asserted that granting the lift stay request would entitle Chrysler to take possession or exercise any rights as to the Tools, which is subject to certain liens held by H.S. Die. H.S. Die is the Debtors' largest general unsecured creditor with a US$6,360,328 claim according to papers filed at the time of their bankruptcy filing. About Chrysler LLC Based 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. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 2 and 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Europe on Nov. 20, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. GAMEKEEPA FEEDS: Taps Milner Boardman as Administrators ------------------------------------------------------- Darren Brookes and Gary J. Corbett of Milner Boardman & Partners were appointed joint administrators of Gamekeepa Feeds Ltd. (Company Number 01160585) on Feb. 4, 2008. Milner Boardman -- http://www.milnerboardman.co.uk/-- provides financial accounting and business advisory services. The company can be reached at: Gamekeepa Feeds Ltd. Southerley Park Binton Stratford-upon-Avon Warwickshire CV37 9TU England Tel: 01789 772 429 Fax: 01789 490 536 GENERAL MOTORS: Backs Up Chrysler's Request to Recover Equipment ---------------------------------------------------------------- Rival carmakers General Motors Corp. and Ford Motor Co. appeared before the U.S. Bankruptcy Court for the Eastern District of Michigan Wednesday to support Chrysler LLC'S request to recover its tooling equipment from Plastech Engineered Products Inc. and its debtor-affiliates' plants, The Associated Press says. AP's Dee-Ann Durbin reports that spokesperson for GM and Ford as well as for auto supplier Johnson Controls Inc. told the Court they believe they have the right to reclaim their own equipment under their contracts with Plastech. "GM is not taking a position regarding whether the court should grant Chrysler the relief it is seeking," GM spokesman Frank Sopata said, according to AP. "But GM does strongly support Chrysler's position regarding the tooling since we have entered into the same agreement as Chrysler and the other major customers of Plastech to reclaim our tooling should it be necessary." Ford and GM haven't experienced any disruption in their supply from Plastech or reported any quality problems, AP says. "We've continued to work with them all along," Ford spokesman Todd Nissen told the Court, AP relates. AP notes that GM Chief Financial Officer Fritz Henderson said Tuesday that GM hasn't made any decisions about whether to keep doing business with Plastech but is trying to help the supplier. "We're working constructively with them to help them with their current financial difficulties," he said. Chrysler-Plastech Dispute Honorable Phillip J. Shefferly began yesterday a two-day trial to consider the merits of Chrysler's request. The Court was also set to consider Chrysler's motion for a temporary restraining order that would allow Chrysler or its agents to enter Plastech's plants and obtain possession of the equipment. Chrysler and Plastech have temporarily resolved their dispute by entry of an interim agreement which provides that: i) Plastech will continue delivering component parts to Chrysler until Feb. 15, 2008; and ii) Plastech will allow Chrysler supervised access to Plastech facilities for purposes of inventory and inspection. Revenues Could Plummet Absent Tooling Equipment The Debtors, however, oppose Chrysler's request for lifting of the automatic stay under Section 362(d)(1) that would allow it to take possession of the Tooling. Chrysler wants possession of the Tooling so that it could transfer manufacturing of component parts to other parties. Plastech notes that Chrysler accounts for about US$200,000,000 of its annual revenues. Thus, if Chrysler's proposal is granted, the Debtors would immediately lose approximately 15% of their annual revenues. This would occur when the Debtors' business is most vulnerable, the first two weeks of their Chapter 11 cases, avers Peter Smidt, executive vice president for Finance and chief financial officer of the Debtors. Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit, Michigan, says that Chrysler is stayed by the Bankruptcy Code from taking possession of the Tooling. Ms. Fish contends that pursuant to Section 362(a)(3) of the Bankruptcy Code: -- Chysler is prohibited from taking unpaid tooling, which pursuant to their Financial Accommodation Agreements, are property of the estate. Section 362(a)(3) prohibits taking any action against estate property. The Debtors are also under no obligation to sell the unpaid tooling to Chrysler under the FFAs. -- Chrysler is prohibited from taking possession of any Tooling it owns but in the possession, custody and control of the Debtors. Regardless of who legally owns the Tooling, any Tooling in the possession of the Debtors may only be removed upon a modification of the automatic stay. Sufficient cause does not exist to modify the automatic stay under Section 362(d), Ms. Fish asserts. She argues that: -- The Debtors' and creditors' interests in prohibiting Chrysler from seizing any owned tooling substantially outweigh any harm that Chrysler might suffer if the stay is not lifted. Plastech will lose business if equipment are removed from their plants. On the other hand, Chrysler will suffer, "at most, financial damages, which damages were self-inflicted and not legally cognizable." -- Chrysler is not likely to prevail on the merits of its underlying claims. Ms. Fish notes that to grant a temporary restraining order or modify the automatic stay, the Court must also conclude that Chrysler has a substantial likelihood of prevailing on its underlying claims, all of which are premised on two contentions: i. that Chrysler properly terminated the Supply Agreements on February 1, 2008; and ii. that Chrysler owns the Tooling. The Debtors say that they will demonstrate at the hearing that Chrysler is not likely to prevail on either contention. Ms. Fish argues that: (a) Chrysler's notices were ineffective. Notices or letters sent by Chrysler on Jan. 15 and 16, and Feb. 1, which purportedly terminated the supply agreements, were not sent to the proper notice parties, which include the Debtors' other customers. In addition, the notices were "simply impermissibly vague" and, thus, did not trigger Plastech's 10-day obligation to cure defaults under the agreements. (b) Plastech timely cured certain of the alleged defaults and Chrysler is estopped from asserting others. Within two weeks following the January Notices, Plastech had cured or was on the verge of curing the alleged defaults regarding its financial condition and accommodation requests. (c) Chrysler is not likely to prevail on the merits of its contention that it could terminate the supply agreements for breach. Among other things: -- Plastech is not in breach of any quality obligation, -- Plastech is not in breach of any obligation to pay tooling suppliers and provide verification, -- Plastech has not breached any quality issues requiring third-party inspection, -- Plastech's request to advance payables did not constitute a breach, and -- Plastech's planned closures of certain facilities did not constitute any breach. Ms. Fish adds that Chrysler is not likely to show that the tooling is owned by Chrysler and held by the Debtors under Article 7 Of The Michigan Uniform Commercial Code. She avers that Chrysler did not and, indeed, cannot establish that a bailment relationship exists between itself and the Debtors. Previously, the Debtors refuted Chrysler's assertions that it will suffer significant harm absent a lifting of the stay. "Any harm to Chrysler was self-inflicted," the Debtors' proposed counsel, Gregg M. Galardi, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, asserted. "Any harm to Chrysler is not irreparable," he added. Plastech also asserted that even if the stay is lifted, it could take weeks, even months, for the equipment to be removed from the Debtors' facilities and be set up in another facility. Granting Chrysler's request, Mr. Galardi argued, would reward Chrysler for acting precipitously at a time when the Debtors efforts need to be, and indeed were, focused elsewhere in an effort to maximize the value of their estates for the benefit of all creditors. Other Objections Tri-Way Mfg., Inc., doing business as Tri-Way Mold & Engineering, which holds a lien on the molds Chrysler seeks to recover, wants Chrysler's lift stay request denied, absent the satisfaction of Tri-Way's statutory liens. In addition, H.S. Die & Engineering, Inc. and H.S. Die Rantoul Mold Services, LLC, which manufacture and supply Plastech with tools, dies and molds, including the Molds Chrysler seeks to recover, also objected to Chrysler's request. H.S. Die asserted that granting the lift stay request would entitle Chrysler to take possession or exercise any rights as to the Tools, which is subject to certain liens held by H.S. Die. H.S. Die is the Debtors' largest general unsecured creditor with a US$6,360,328 claim according to papers filed at the time of their bankruptcy filing. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. About Chrysler LLC Based 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. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Europe on Nov. 12, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. INVENSYS PLC: Will Redeem Outstanding Bonds on March 17 ------------------------------------------------------- Invensys plc gave notice on Feb. 8, 2008, to the holders of its remaining high yield bonds that it is exercising its optional redemption right and will redeem all of the outstanding bonds on March 17, 2008. The remaining high yield bonds comprise US$177,092,000 aggregate principal amount of 9.875% senior notes due March 2011 and EUR345,150,000 aggregate principal amount of 9.875% senior notes due March 2011. The redemption price amounts to 104.938% of principal amount, totaling around GBP360 million at Dec. 31, 2007 exchange rates, and will be paid out of existing cash balances. The optional redemption will give rise to a premium of around GBP17 million which will be charged as an exceptional finance cost in the Group's 2007/08 fourth quarter results. In addition, existing capitalized fees and costs of GBP6 million will be written off as an exceptional finance cost in that period. About Invensys Plc Based in London, United Kingdom, Invensys Plc -- http://www.invensys.com/-- is a global automation, controls and process solutions Group operating in more than 60 countries worldwide. The company operates through six units: Controls, Process Systems, Rail Systems, APV, Wonderware, and Eurotherm. As reported in the TCR-Europe on May 28, 2007, at March 31, 2007, the Company's balance sheet GBP2 billion in total assets and GBP2.1 billion in total liabilities, resulting in a GBP140 million stockholders' deficit. * * * As of Feb. 13, 2008, Invensys Plc carries Moody's long-term corporate family rating at Ba3, senior unsecured debt rating at B2 and probability of default of Ba3. Standard and Poor's rates the company at long-term foreign issuer credit BB and long-term local issuer credit of BB with stable outlook. Fitch Ratings gives long-term issuer default rating at BB, senior unsecured debt rating at BB and short-term rating at B with stable outlook. LDA INTERIOR: Claims Filing Period Ends March 14 ------------------------------------------------ Creditors of LDA Interior Solutions Ltd. have until March 14, 2008, to send in their full names, their addresses and descriptions, full particulars of their debts or claims and the names and addresses of their solicitors (if any) to: Vincent John Green Joint Liquidator Vantis Business Recovery Services Judd House 16 East Street Tonbridge TN9 1HG England Vincent John Green and Mark Newman of Vantis Business Recovery Services were appointed joint liquidators of the company on Feb. 7 by the members and creditors. MANCHESTER MARBLE: Names Administrators from Milner Boardman ------------------------------------------------------------ Colin Burke and Gary J. Corbett of Milner Boardman & Partners were appointed joint administrators of Manchester Marble Ltd. (Company Number 03793211) on Feb. 7, 2008. Milner Boardman -- http://www.milnerboardman.co.uk/-- provides financial accounting and business advisory services. The company can be reached at: Manchester Marble Ltd. 12 Arundel Street Manchester Lancashire M15 4JP England Tel: 0161 831 7761 Fax: 0161 831 7767 MARTIN EVANS: Brings In Liquidators from Mazars ----------------------------------------------- Tim Alan Askham and Robert David Adamson of Mazars LLP were appointed joint liquidators of Martin Evans Interiors Ltd. on Feb. 5 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Mazars LLP Mazars House Gelderd Road Gildersome Leeds LS27 7JN England MAXJET AIRWAYS: Taps M. Beyer as Expert Valuation Consultants ------------------------------------------------------------- MAXjet Airways Inc. asks the U.S. Bankruptcy Court for the District of Delaware for authority to employ Morten Beyer & Agnew as its expert valuation consultants nunc pro tunc Jan. 11, 2008. Morten Beyer will work closely with the Debtor and its professionals in providing advise with regard to a valuation of the Debtor's aviation assets. The firm is also expected to provide: a) maintenance adjusted appraisal of aircraft and engines at varying values with market commentary by aircraft type; b) line-by-line appraisal of rotable, repairable, and expendable parts with value type; c) industry analysis on a project-by-project basis, and d) expert witness and advisory support. Morten Beyer will bill the Debtor according to these fixed rates on a per item or per report basis: Project Rate ------- ---- Aircraft Appraisal US$1,353 for the first aircraft of each type and US$270 for each additional aircraft of the same type in the same report Engine Appraisal US$541 for the first engine of each type and US$270 for each additional engine of the same type in the same report Spare Part Appraisal US$4,000 minimum, total cost depending on the number of items and detail of data provided Industry Analysis Quoted by specific assignment General Consulting Principals US$400/hour EVP/SVP/Chief US$350/hour MD/VP/Sr. Associate US$275/hour Director/Associate US$200/hour Manager/Associate US$160/hour Analyst US$115/hour Administrative US$88/hour Expert Witness Consulting Principals/EVP/Chief US$450/hour SVP/VP/MD US$400/hour Other Staff US$325/hour To the best of the Debtor's knowledge, the firm holds no interest adverse to the Debtor and its estates and is "disinterested" as that term defined in Section 101(14) of the Bankruptcy Code. Dulles, Virginia-based MAXjet Airways Inc. -- http://www.maxjet.com/-- is an all-business class, long-haul airline company. It has introduced scheduled services with flights from London Stansted Airport to New York. As of December, 2006, it leased five B767 aircraft. Its customers are both business and leisure travelers. At the airport, its product features check-in facilities located in primary terminals, security and a business class departure lounge and arrivals facility. Its flights features deep-recline seats (170 degree) spaced at a 60 inch pitch, portable entertainment systems, stowage space and business class catering. The Debtor filed for chapter 11 protection on Dec. 24, 2007 (Bankr. D. Del. Case No. 07-11912). The Debtor selected Pachulski Stang Ziehl & Jones LLP and Pillsbury Winthrop Shaw Pittman LLP as its bankruptcy counsels. Arent Fox LLP represents the Official Committee of Unsecured Creditors. The Debtor listed assets between US$10 million and US$50 million and debts between US$50 million and US$100 million when it filed for bankruptcy. MIDLAND SHEETMETAL: Taps Liquidators from PricewaterhouseCoopers ---------------------------------------------------------------- Stuart David Maddison and David Matthew Hammond of PricewaterhouseCoopers LLP were appointed joint liquidators of Midland Sheetmetal Ltd. on Feb. 6 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: PricewaterhouseCoopers LLP Donington Court Pegasus Business Park Castle Donington Derbyshire DE7 2UZ England MTB EQUIPMENT: NatWest Bank Taps Menzies as Receivers ----------------------------------------------------- National Westminster Bank Plc appointed David John Whitehouse and Philip Francis Duffy of Menzies Corporate Restructuring joint administrative receivers of MTB Equipment Ltd. (Company Number 01621157) on Feb. 4, 2008. Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. The company can be reached at: MTB Equipment Ltd. 7-9 Barton Road Bletchley Milton Keynes MK2 3HX England Tel: 0870 870 1282 Fax: 0190 827 0604 OAKLEY HOTELS: Calls In Liquidators from Tenon Recovery ------------------------------------------------------- A. J. Pear and I. Cadlock of Tenon Recovery were appointed joint liquidators of Oakley Hotels & Restaurants Ltd. on Feb. 5, 2008, for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Third Floor Lyndean House 43/46 Queens Road Brighton East Sussex BN1 3XB England PACKAGING ROLLER: Appoints Joint Administrators from Menzies ------------------------------------------------------------ David John Whitehouse and Philip Francis Duffy of Menzies Corporate Restructuring were appointed joint administrators of The Packaging Roller Co. Ltd. (Company Number 03120479) on Feb. 4, 2008. Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- provides corporate restructuring services including: services for directors or stakeholders of troubled businesses; services to Lenders of troubled businesses; raising rescue funding at short notice; and forensic and fraud services. The company can be reached at: The Packaging Roller Co Ltd. Unit 8 Red Rose Court Sunnyhurst Road Blackburn Lancashire BB2 1PS England Tel: 01254 681 691 Fax: 01254 691 556 SCO GROUP: Eyes 26% Job Cuts to Reduce Expenses ----------------------------------------------- The SCO Group Inc. disclosed Friday that the company has implemented a reduction of its workforce, in an effort to reduce ongoing operating expenses. The company anticipates that it will reduce its workforce by approximately 30 positions, a reduction of approximately 26% of its total workforce. The Company instituted this reduction in force to continue to focus on and serve its UNIX customer base and to deliver on key opportunities with its mobile products and services. About SCO Group Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. SUN MICROSYSTEMS: Signs Stock Purchase Deal with innotek -------------------------------------------------------- Sun Microsystems Inc. has entered into a stock purchase agreement to acquire innotek, the provider of the leading edge, open source virtualization software called VirtualBox. By enabling developers to more efficiently build, test and run applications on multiple platforms, VirtualBox will extend the Sun xVM platform onto the desktop and strengthen Sun's leadership in the virtualization market. With over four million downloads since January 2007, innotek's open source VirtualBox product has been quickly established as one of the leading developer desktop virtualization platforms. Now, as part of the Sun xVM portfolio, VirtualBox will have the support of Sun's global development community, field resources and partners to make VirtualBox even more compelling to developers and end users, driving greater adoption across a broad set of communities. VirtualBox enables desktop or laptop PCs running the Windows, Linux, Mac or Solaris operating systems to run multiple, different operating systems side-by-side, switching between them with just a click of the mouse. This allows software developers to more easily build multi-tier or cross-platform applications, or power-users to take advantage of applications that may not be available for their base operating system of choice. "VirtualBox provides Sun with the perfect complement to our recently announced Sun xVM Server product," said Rich Green, executive vice president, Sun Software. "Where Sun xVM Server is designed to enable dynamic IT at the heart of the datacenter, VirtualBox is ideal for any laptop or desktop environment and will align perfectly with Sun's other developer focused assets such as GlassFish, OpenSolaris, OpenJDK and soon MySQL as well as a wide range of community open source projects, enabling developers to quickly develop, test and deploy the next generation of applications." VirtualBox is open source, and can be freely downloaded without the hassle of payment or frustrating license keys at virtualbox.org or openxvm.org. The download is less than 20 megabytes and the software is easily installed on any modern, x86 architecture laptop or desktop system running Windows, Linux, Mac and Solaris operating systems, in just minutes. Supported guest operating systems include all versions of Windows from 3.1 to Vista, Linux 2.2, 2.4 and 2.6 kernels, Solaris x86, OS/2, Netware and DOS. The Sun xVM family of products uniquely integrates virtualization and management to help customers better manage both physical and virtualized assets across heterogeneous environments. Previously announced products in the Sun xVM line include Sun xVM Server and Sun xVM OpsCenter. Sun xVM Server is a datacenter grade, bare-metal virtualization engine with advanced features such as live VM migration and dynamic self- healing, and can consolidate Windows, Linux and Solaris operating system instances. Sun xVM Ops Center is a unified management infrastructure for both physical and virtual assets in the datacenter. Sun has announced partnerships and endorsements for xVM with Microsoft, RedHat, Intel, AMD, Symantec and Quest Software. The agreement to acquire innotek follows Sun's announcement on Jan. 16 of a definitive agreement to acquire MySQL, the world's most popular open source database. These acquisitions reaffirm Sun as the largest commercial open source contributor. The stock purchase agreement to acquire innotek is subject to customary closing conditions and is expected to be completed during the third quarter of Sun's 2008 fiscal year. The terms of the deal were not disclosed as the transaction is not material to Sun's earnings per share. About innotek innotek is an internally funded software company located in Stuttgart, Germany with offices in Dresden, Berlin and the Russian Federation. Its team of international specialists has focused entirely on the development of high-tech system software. innotek has been at the forefront of PC virtualization technology since 2001 and now staffs Europe's largest and most experienced team of PC software virtualization experts with numerous Fortune 500 and government customers. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, Singapore, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. SUN MICROSYSTEMS: To Launch Sun Vietnam With Frontline Tech ----------------------------------------------------------- Sun Microsystems Inc. and Frontline Technologies Corporation Ltd have entered into an agreement to establish Sun Vietnam, Sun Microsystems' first joint venture created as part of its new worldwide Sun Equity Partner program, designed to improve access to Sun's products and services in emerging markets. Sun Vietnam extends Sun's current presence in Vietnam and supports the country's rapidly growing interests and demands for enterprise- class IT services and solutions. "With a commitment to better serve our customers' needs and build stronger communities, the Sun Equity Partner Program represents a new route to market for Sun to fortify its presence in key markets around the world in partnership with leading regional experts," said Don Grantham, Executive Vice President, Global Sales and Services, Sun Microsystems, Inc. "The global approach of this program will allow us to expand our presence in emerging markets that adopt and adapt new technology at a rapid pace. Our stronger presence in Vietnam enables us to better support local entrepreneurs, regional businesses and our global clients." Sun Vietnam is the first entity to be formed under the SEP program, a global push designed to drive growth for Sun by increasing market coverage quickly and cost efficiently. Sales offices are expected to open in both Hanoi and Ho Chi Minh City in 2008. Sun Vietnam's presence in the market is expected to serve as a catalyst to hasten the development of Vietnam's information and communications technology industry. Sun has maintained a presence in Vietnam for years. The formation of Sun Vietnam extends its position as a driving force behind the growing wave of Internet and e-commerce companies in Vietnam and will continue to drive Sun's comprehensive range of software and systems solutions, including the Solaris(tm) Operating System, Java(tm) technologies, Sun Fire(tm) systems and Sun StorageTek(tm) offerings, as well as professional training and services. Sun Vietnam was modeled after the highly successful formation of similar partnerships in Indonesia and the Philippines in the past several years. Both regions now support hundreds of Sun-focused sales and services professionals. "Establishing this joint venture in Vietnam brings together the best of both worlds: Sun's world-class products, services and technology along with the local expertise and reach of our top partners. It's a win-win for Sun, our partners and, most of all, our customers, said Lionel Lim, Chief of Operations, Asia Pacific, and President, Asia South, Sun Microsystems, Inc. "Sun Vietnam enhances our presence in Vietnam, which is, today, largely supported with partners, and enables greater growth potential for the country's information and communications technology industry. Sun's investment will help drive growth in Vietnam in terms of skills and technology enablement through community cultivation and sharing, in addition to access to cutting-edge technology and expertise from Sun." "As one of the fastest-growing economies in this region, Vietnam is a natural choice to expand Frontline's presence in Asia. Our suite of IT Services will enable local and global businesses in the country to harness the power of technology to enhance their business operations and processes," said Steve Ting, Executive Chairman of Frontline Technologies Corporation Ltd. About Frontline Technologies Frontline Technologies Corporation Ltd (SGX: FRLT.SI) -- http://www.frontline.com.sg/-- is a leading provider of end-to-end IT Services. Frontline offers IT consulting, IT infrastructure, IT security solutions, enterprise application solutions, system integration as well as outsourcing to help companies harness IT so as to drive operational and cost efficiency as well as business growth. Established in 1993 and headquartered in Singapore, the Frontline Group has more than 5,500 professionals in nine key markets in Asia - China, Hong Kong, India, Indonesia, Malaysia, Singapore, Philippines, Taiwan and Thailand - to meet the specific needs of corporate organizations across a continuum of industries. Frontline is listed on the Main board of the Singapore Exchange since March 2001 and has been ranked in the top 15% of the Corporate Transparency Index (CTI) in Singapore. About Sun Equity Partner The Sun Equity Partner program, part of Sun Microsystems' ongoing investment in worldwide partners, is a global joint venture program designed to drive growth for Sun by increasing coverage quickly and cost efficiently by working with and investing in select partners. Through SEP, regional partners and the IT community stand to benefit as the program increases local access to cutting-edge technologies from Sun. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, Singapore, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. TATA MOTORS: Plans to Bring Hybrid Nano to Europe in Four Years --------------------------------------------------------------- Tata Motors Ltd plans to bring to Europe, in four years, a new version of its INR1-lakh car Tata Nano, currently the world's cheapest car. Girish Wagh, head of Tata Motors' compact car projects, reportedly told the Focus magazine that the company will develop a successor model in four years time, which will meet the Euro 5 emission regulations and the crash standards in Europe. Reports did not say how much the European version will cost. On Jan. 10, Tata Group Chairman Ratan N. Tata unveiled in New Delhi the four-door Tata Nano, which seats four persons and measures 3.1 meters in length, 1.5 meters in width and stands 1.6 meters. The standard version, however, has no radio, no passenger-side mirror, no air conditioning and only one windshield wiper. Tata NANO will be sold in India later this year and will be available in standard and deluxe versions. Tata previously said that it will focus on India for two to three years before considering exports of the Nano. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the TCR-Europe on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd on review for possible downgrade. TATA MOTORS: Awards Speed Sensor Supply Deal to TT Electronics -------------------------------------------------------------- Tata Motors Ltd. has awarded U.K. firm TT electronics plc a contract to supply speed sensors for the INR1-lakh car, Tata Nano. On Jan. 10, Tata Motors unveiled in New Delhi the much-hyped world's cheapest car, which Tata Group Chairman Ratan N. Tata hopes will get India's masses off motorbikes and into cars. The Nano is a small saloon vehicle with rear-wheel drive powered by an all-aluminium, two cylinder, multi-point fuel injection petrol engine and has been designed specifically to reduce weight and to keep costs to a minimum, TT electronics notes. This also helps maximize performance whilst delivering greater fuel efficiency; as a result, the car has a low carbon footprint. TT electronics disclosed that the sensors that they'll supply for Nano will be manufactured by Padmini TT electronics Private Ltd., the joint venture formed in 2006 between TT electronics and Padmini VNA Private Ltd, in Gurgaon, near Delhi, India. Prototypes of the Tata Nano speed sensor have already been supplied; Padmini TT is now preparing to increase output, in preparation for high-volume vehicle production scheduled for September 2008. Tata Motors plan to sell the Nano in India later this year and will be available in standard and deluxe versions. Tata plans to focus on India for two to three years before considering exports of the Nano. As reported by the Troubled Company Reporter-Asia Pacific yesterday, Tata Motors plans to bring to Europe, in four years, a new version of the Nano, which will meet the Euro 5 emission regulations and the crash standards in Europe. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the TCR-Europe on Jan. 8, 2008, Moody's Investors Service placed the Ba1 Corporate Family Rating of Tata Motors Ltd on review for possible downgrade. WR GRACE: Seeks Court OK to Extend DIP Facility Until April 2010 ---------------------------------------------------------------- W.R. Grace Co. and its debtor-affiliates' US$250,000,000 DIP Financing Facility with Bank of America, as administrative agent for a syndicate of bank lenders, will expire on April 1, 2008. Against this backdrop, the Debtors seek the United States Bankruptcy Court District of Delaware's authority to: (1) extend the DIP Facility's termination date until the earlier of (i) the Debtors' emergence from Chapter 11, or (ii) April 1, 2010; (2) modify certain of the DIP Facility's covenants and other provisions to provide, among other things, that they need to maintain, at all times, cash and cash equivalents of not less than US$50,000,000 in the aggregate; and (3) pay US$2,012,500 to BofA for administrative agent fees, which amount will change depending on market conditions at the time of the final commitments by the DIP Lenders. A full-text copy of the DIP Amendments is available for free at: http://ResearchArchives.com/t/s?27fe James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, relates that the Debtors and BofA have agreed to extend the DIP Facility until May 31, 2008, if the Court is unable to approve the DIP Amendments before April 1. The Debtors will pay BofA a fee of not more than US$100,000 for the Interim Extension. As of Jan. 31, 2008, approximately US$58,500,000 in letters of credit issued pursuant to the DIP Facility remain outstanding, Mr. O'Neill says. Mr. O'Neill tells the Court that, after analyzing their options for continuing their postpetition financing and reviewing recent comparable transactions in the capital markets, the Debtors have determined that the most cost-effective approach would be to seek a further extension of the DIP Facility instead of seeking a replacement postpetition financing facility. The Debtors expect that ongoing fees and interest rates will be at or below comparable market rates, Mr. O'Neill says. He adds that by extending the DIP Facility, the Debtors will avoid the substantial expenses attendant with negotiating a new credit agreement with a new agent and lenders. The DIP Amendments, according to Mr. O'Neill, are intended to ensure the Debtors' continued financial flexibility and a stable environment while the Debtors work to conclude their Chapter 11 cases. Specifically, the DIP Facility will: (a) continue to support general trade initiatives, as well as risk management and capital investment initiatives; (b) provide liquidity protection in the face of significant economic uncertainty; (c) support strategic business initiatives that are in the best interest of the Debtors and their shareholders; and (d) manage significant contingencies related to the Debtors' past and present operations. Specific liquidity contingencies, according to Mr. O'Neill, include: -- the likelihood of significant contributions to U.S. qualified pension plans to satisfy the funding requirements of the Employee Retirement Income Security Act; -- possible settlements of environmental, tax and other disputes as may be proposed by the Debtors and approved for funding by the Court and creditors in advance of a confirmed plan of reorganization; and -- attorneys' fees and expenses in connection with disputes, including civil and criminal litigation in Montana and New Jersey. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. (W.R. Grace Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). WR GRACE: Asbestos Claims Estimation Trial to Resume March 24 ------------------------------------------------------------- The Honorable Judith Fitzgerald of United States Bankruptcy Court District of Delaware will resume the asbestos personal injury claims estimation trial on March 24, 2008. The trial is expected to conclude in May. W.R. Grace & Co. and its debtor-affiliates, and the Official Committee of Asbestos Personal Injury Claimants filed separate and opposing briefs regarding the admissibility of personal injury questionnaires and proofs of claim as evidence at the estimation trial. The Debtors' counsel, David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, in Chicago, Illinois, maintains that the PI Questionnaires and the proofs of claim should be admitted into evidence during the estimation trial for three reasons: (1) Claims estimation is a "contested matter" under Rule 9014 of the Federal Rules of Bankruptcy Procedure. As a contested matter, the PI Claims estimation is not a separate proceeding, but part of the Debtors' Chapter 11 cases. (2) Every party who has filed a proof of claim against the Debtors is a party to the Debtors' bankruptcy cases. Because the PI Claimants have filed claims against the Debtors, they are parties to the Debtors' bankruptcy cases. And because they are parties to the Debtors' bankruptcy cases, the PI Claimants are parties to the PI estimation. (3) The PI Questionnaires were served on the claimants as discovery in connection with the estimation proceedings. The Questionnaires are a hybrid form of discovery: part fact interrogatory, part contention interrogatory, part document request, and part deposition by written question. The PI Committee, on the other hand, insists that the Court should not accept as evidence the PI Questionnaires and the proof of claim responses. The PI Committee's counsel, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, asserts that the estimation proceedings is a contested matter within the Debtors' Chapter 11 cases, which is being conducted solely for confirmation of a plan of reorganization, involving only the parties who have filed one of the two competing reorganization plans filed in the Debtors' bankruptcy cases. Because the Debtors' reorganization plan purports to "cap" their total asbestos liability, an estimate of their aggregate liability for pending and future asbestos claims may be relevant to determine whether any non-consensual reorganization plan meets the requirements of Sections 524(g)(4)(B)(ii) and 1129(b) of the Bankruptcy Code, Mr. Inselbuch contends. Mr. Inselbuch adds that the only parties to the estimation proceeding are the Debtors, the PI Committee, the Future Claims Representative and the other official committees, pursuant to (i) the procedural route the Debtors have undertaken in seeking an estimate of their aggregate asbestos liability rather than an individual claims allowance process, and (ii) the terms of the case management order, which govern the estimation hearing. The sole purpose of the estimation proceeding is to determine the Debtors' aggregate liability for pending and future asbestos PI claims, and not to estimate those claims for purposes of individual allowance or disallowance, Mr. Inselbuch maintains. Mr. Inselbuch asserts that the mere filing of a proof of claim of a creditor does not make that creditor a party to each and every contested matter in the Debtors' bankruptcy case. Futures Rep Says Stallard Doc Valid David T. Austern, the Court-appointed Future Claims Representative, tells the Court that the issues raised in the declarations of P.J. Eric Stallard have been presented in open court during the January 2008 estimation hearings. The Futures Representative wants the Debtors' request to strike the declaration denied. The FCR relates that Prof. Stallard's declarations establish that, as a matter of science, it is not appropriate to assign to individual workers a cumulative lifetime asbestos exposure that is equal to the average lifetime asbestos exposure for all workers within the Debtors' defined occupational categories. The FCR asserts that Prof. Stallard's Declarations does not violate any case management order regarding the estimation proceedings. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. (W.R. Grace Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). WR GRACE: Wants to Contribute US$17 Million to Pension Plan ----------------------------------------------------------- W.R. Grace Co. and its debtor-affiliates seek the United States Bankruptcy Court District of Delaware's authority to contribute US$17,823,645 to their defined benefit retirement plans covering their employees in the United States. The contributions are due April 15, 2008, and are necessary to assure compliance with the minimum funding requirements under applicable federal law, James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, says. The Court has previously authorized the Debtors to contribute approximately US$284,800,000 to the Retirement Plans: Date Contribution ---- ------------ 2003 US$48,500,000 2004 20,000,000 2005 24,100,000 2006 101,400,000 2007 76,000,000 Jan. 2008 14,800,000 ------------ Total US$284,800,000 ============ Mr. O'Neill relates that under applicable law, the total of the required quarterly minimum contributions for the 2008 plan year due on April 15, 2008, must be the lesser of (a) 25% of the total 2007 minimum contributions, or (b) the quarterly minimum amount calculated specifically for the 2008 plan year, which will be included in the Debtors' actuarial report for 2008. The actuarial report, however, is not yet complete as of Feb. 11, 2008, according to Mr. O'Neill. The Debtors and their actuaries anticipate the 2008 actuarial report to be finalized in April 2008. If the report is not finalized within a reasonable time before April 15, the April 2008 Contribution will be approximately US$17,823,645. Any portion of the US$17,823,645 Contribution that is greater than the actual 2008 Retirement Plan year quarterly minimum contributions, as eventually specified in the final 2008 actuarial report, will be used to offset subsequent required minimum contributions, Mr. O'Neill tells the Court. After the 2008 actuarial report is finalized, the Debtors tell the Court that they intend to submit another request for permission to make required contributions for the remainder of 2008 and early 2009. The Debtors contend that continuing to make at least the legally required minimum contributions to each of the Grace Retirement Plans is essential to maintaining the morale of their workforce and the workforce' confidence in management. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. (W.R. Grace Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * BOOK REVIEW: A Legal History of Money in the United States ------------------------------------------------------------ Author: James Willard Hurst Publisher: Beard Books Paperback: US$34.95 Review by Gail Owens Hoelscher Order your personal copy today and one for a colleague at: http://amazon.com/exec/obidos/ASIN/1587980983/internetbankrupt This book chronicles the legal elements of the history of the system of money in the United States from 1774 to 1970. It originated as a series of lectures given by James Hurst at the University of Nebraska in 1973. Mr. Hurst is quick to say that he , as a historian of the law, took care in this book not to make his own judgments on matters outside the law. Rather, he conducted an exhaustive literature review of economics, economic history, and banking to recount the development of law over the operations of money. He attempted to "borrow the opinions of qualified specialists outside the law in order to provide a meaningful context in which to appraise what the law has done or failed to do." Mr. Hurst define money, for the purposes of this books, as "a distinct institutional instrument employed primarily in allocating scarce economic resources, mainly through government and market processes," and not shorthand for economic, social, or political power held through command of economic assets." From the beginning, public and legal policy in the U.S. centered on the definition of legitimate uses of both law affecting money, and allocation of power over money among official agencies, both federal and state. The foundations of monetary policy were laid between 1774 and 1788. Initially, individual state legislatures and the Continental Congress issued paper currency in the form of bills of credit. The Constitutional Convention later determined that ultimate control of the money supply should be at the federal level. Other issues were not clearly defined and were left to be determined by events. The author describes how law was used to create and maintain a system of money capable of servicing the flow of resource allocations in an economy of broadly dispersed public and private decision making. Law defined standard money units and made those units acceptable for use in conducting transactions. Over time, adjustment of the money supply was recognized as a legitimate concern of law. Private banks were delegated expansive monetary action powers throughout the 1900s and private markets for gold and silver were allowed to affect the money supply until 1933-34. Although the Federal Reserve Act was not aimed clearly at managing money for goals of major economic adjustment, it set precedents by devaluing the dollar and restricting the use of gold. Mr. Hurst devotes a large part of his book to key issues of monetary policy involving the distribution of power over money between the nation and the states, between legal and market processes, and among major agencies of the government. Until about 1860, all major branches of government shared in making monetary policy, with states playing a large role. Between 1908 and 1970, monetary policy became firmly centralized at the national level, and separation or powers questions arose between the Federal Reserve Board, the White House (The Council of Economic Advisors), and the Treasury. The book was an enormous undertaking and its research exhaustive. It includes 18 pages of sources cited and 90 pages of footnotes. Each era of American legal history is treated comprehensively. The book makes fascinating reading for those interested in the cause and effect relationship between legal processes and economic processes and t hose concerned with public administration and the separation of powers. James Willard Hurst (1910-1997) is widely regarded as the grandfather of American legal history. He graduated from Harvard Law School in 1935 and taught at the University of Wisconsin-Madison for 44 years. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jason Nieva, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Patrick Abing and Marites Claro, Editors. Copyright 2008. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *