T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, May 1, 2008, Vol. 9, No. 86 Headlines A U S T R I A MIGLINE TRANSPORTE: Claims Registration Period Ends May 26 TOP CAR: Creditors' Meeting Slated for May 6 TREFF HANDEL: Claims Registration Period Ends May 13 WASABI ZHOU: Claims Registration Period Ends June 5 F R A N C E HILITE INTERNATIONAL: S&P Cuts Rating to B- on Tight Liquidity G E R M A N Y ALERIS INTERNATIONAL: S&P Holds B+ Rating with Negative Outlook BARGE BETRIEBS: Claims Registration Period Ends May 23 COMTRADE INTEGRATION: Claims Registration Period Ends May 23 COMTRADE MOBILIEN: Claims Registration Period Ends May 23 CELLKERN GMBH: Claims Registration Period Ends May 23 MANIA TECHNOLOGIE: Files for Insolvency Proceedings N & B PROJEKTENTWICKLUNG: Claims Registration Ends May 21 PIN GROUP: Axel Springer CEO Regrets Investment in Firm REMMERS GMBH: Claims Registration Period Ends May 16 RIMO WOHNBAU: Claims Registration Period Ends May 16 SAMUDRA GMBH: Claims Registration Period Ends May 16 SANITAR-GMBH: Claims Registration Period Ends May 16 SEEVETALER LAGER: Claims Registration Ends May 21 SSM PFALZ: Claims Registration Period Ends May 16 THIELERT AIRCRAFT: Parent to Sell Shares to Raise Funds T.I.B. GMBH: Claims Registration Ends May 21 I C E L A N D CONEXANT SYSTEMS: Terminates Daniel Artusi as President and CEO CONEXANT SYSTEMS: D. Scott Mercer Named as New CEO CONEXANT SYSTEMS: Posts US$142 Million Net Loss in 2008 2Q CONEXANT SYSTEMS: Sells Broadband Media Product Line to NXP I R E L A N D CAIRN HIGH: Moody's May Further Cut B2 Rating After Review I T A L Y ALITALIA SPA: Files Over EUR1-Billion Damages Suit vs SEA SpA K A Z A K H S T A N GLINTVANE LLP: Claims Registration Ends June 18 IMPLANT-SERVICE ASTANA: Claims Registration Ends June 13 KAZ ALLIANCE: Creditors Must File Claims by June 17 MIGROS KIPA: Claims Deadline Slated for June 17 TDE-100 LLP: Claims Filing Period Ends June 18 UAK-SNUB LLP: Creditors' Claims Due on June 17 L U X E M B O U R G PIN GROUP: Axel Springer CEO Regrets Investment in Firm R U S S I A AK TRANSNEFTEPRODUCT: S&P Lifts Corporate Credit Rating to BB- ATEKS CJSC: Creditors Must File Claims by May 26 CENTRAL TELECOMMUNICATIONS: S&P Holds B+ Corporate Credit Rating NORTH-SERVICE OJSC: Creditors Must File Claims by May 22 OGK-5 OAO: Earns RUR673.48 Million for 1st Qtr Ended March 31 ORLOVSKIY AGRICULTURAL: Asset Sale Slated for May 28 PROGRESS OJSC: Creditors Must File Claims by May 22 SISTEMA-HALS JSC: Earns US$34.68 Million for Year Ended Dec. 31 SISTEMA-HALS JSC: Hikes Share Value in Property Projects by 30% SIVINSKIY AGRO-LES-KHOZ: Creditors Must File Claims by May 22 * Fitch Positive on Russian Power Sector's Liberalisation S W E D E N AVINMERITOR INC: Earns US$20 Million in Second Quarter 2008 SAS AB: Weak Performance Cues S&P's Negative Watch on BB Rating S W I T Z E R L A N D GLOBAL JET: Creditors' Liquidation Claims Due by May 7 HILDEGARD-DROGERIE: Creditors' Liquidation Claims Due by May 8 METABOLIC CONCEPTS: Creditors' Liquidation Claims Due by May 8 OBJECT-LINE: Bern Court Starts Bankruptcy Proceedings PEARL METAL: Creditors' Liquidation Claims Due by May 8 PETER MULLER: Creditors' Liquidation Claims Due by May 7 POLAROME EUROPA: Creditors' Liquidation Claims Due by May 8 SCHMERIKON: Creditors' Liquidation Claims Due by May 8 SIMME-LADELI: Creditors' Liquidation Claims Due by May 8 SWISSAIR: Liquidator Oversees CHF320 Mln. Payment to Creditors THERMA: Appenzell Ausserrhoden Court Starts Bankruptcy Process WIRIPAX JSC: Creditors' Liquidation Claims Due by May 7 U K R A I N E * S&P Discusses Debt Recovery and the Insolvency Law in Ukraine U N I T E D K I N G D O M ADRIAN FISHER: Brings In Liquidators from Tenon Recovery AMBERFELL ESTATES: Taps Joint Administrators from BDO Stoy BEANCLEANED LTD: Appoints Joint Administrators from PwC BEANCLEANED LTD: Appoints Joint Administrators from PwC EOS AIRLINES: Case Summary and 19 Largest Unsecured Creditors EOS AIRLINES: Files for Bankruptcy in New York EOS AIRLINES: Menzies Appointed as Joint Administrators in UK INSIDE TRACK: Undergoes Administration; Vantis Plc Appointed INTRALINKS INC: S&P Holds B Rating; Revises Outlook to Negative JONRO LTD: Claims Filing Period Ends June 2 LANDMARK MORTGAGE: Fitch Affirms Ratings on Eight Tranches LANGLEY LANDSCAPES: Claims Filing Period Ends May 30 NEPHROS INC: Deloitte & Touche Issues Going Concern Doubt NEPHROS INC: Annual Stockholders' Meeting Scheduled on June 25 NEPHROS INC: Gerald J. Kochanski Named Chief Financial Officer NEW BOND: Moody's May Further Cut Junk Rating After Review UNIQUE DISTRIBUTION: Accountants Ordered to Sell the Company VIRGIN MEDIA: Fitch Upgrades Ratings on Notes and Removes Watch VONAGE HOLDINGS: Seeks US$215-Million Loan to Refinance Debt * Fitch Says Good Forecast Accuracy Helped Europe's Credibility * Fitch Says Europe Structure Finance Market Still Active * S&P Takes Credit Rating Actions on 130 European Synthetic CDOs * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= MIGLINE TRANSPORTE: Claims Registration Period Ends May 26 ---------------------------------------------------------- Creditors owed money by LLC MIGLINE Transporte (FN 221062t) have until May 26, 2008, to file written proofs of claim to court- appointed estate administrator Eva Wexberg at: Dr. Eva Wexberg c/o Dr. Walter Kainz Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on June 9, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 11, 2008 (Bankr. Case No. 3 S 35/08d). Walter Kainz represents Dr. Wexberg in the bankruptcy proceedings. TOP CAR: Creditors' Meeting Slated for May 6 -------------------------------------------- Creditors owed money by LLC Top Car (FN 39274g) are encouraged to attend the first creditors' meeting at noon on May 6, 2008. The creditors' meeting will be held at: The Land Court of Graz Room 230 Hall L Graz Austria The Court will also examine the claims at 2:00 p.m. on June 26, 2008, at the same venue. Creditors have until April 11, 2008, to file written proofs of claim to court-appointed estate administrator Axel Reckenzaun at: Dr. Axel Reckenzaun Annenstrasse 10/1 8020 Graz Austria Tel: 0316/713353 Fax: 0316/713353-30 E-mail: office@boehm-reckenzaun.at Headquartered in Lieboch, Austria, the Debtor declared bankruptcy on April 11, 2008 (25 S 29/08i). TREFF HANDEL: Claims Registration Period Ends May 13 ---------------------------------------------------- Creditors owed money by LLC TREFF Handel und Beteiligung (FN 202058w) have until May 13, 2008, to file written proofs of claim to court-appointed estate administrator Georg Schuchlenz at: Dr. Georg Schuchlenz Waaggasse 18/3 9020 Klagenfurt Austria Tel: 0463/51 65 30 Fax: 0463/51 65 30-73 E-mail: office@dr-schuchlenz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Room 225 Second Floor Klagenfurt Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on April 10, 2008 (Bankr. Case No. 41 S 37/08a). WASABI ZHOU: Claims Registration Period Ends June 5 --------------------------------------------------- Creditors owed money by KEG WASABI Zhou (FN 274880k) have until June 5, 2008, to file written proofs of claim to court-appointed estate administrator Brigitte Stampfer at: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna Austria Tel: 877 33 30 Fax: 877 33 30 33 E-mail: ra-stampfer@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on June 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 10, 2008 (Bankr. Case No. 5 S 29/08m). =========== F R A N C E =========== HILITE INTERNATIONAL: S&P Cuts Rating to B- on Tight Liquidity -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Hilite International Inc. to 'B-' from 'B' because of the company's tight liquidity heading into a very difficult sales environment for the North American and European automotive industries. S&P do not expect Hilite to generate any material free cash from operations until at least 2009, given the weak sales environment and the need for investment to support business contracts won in 2007. Although Hilite has adequate liquidity at the moment, the company will use cash in 2008, and covenants, which tighten at year-end 2008, provide little cushion for material weakness in European original equipment production volumes or a rise in the company's operational costs in 2008. "The ratings on Cleveland-based auto supplier Hilite reflect the company's tight liquidity, highly leveraged financial profile, and vulnerable business position as a relatively small participant in the intensely competitive automotive industry," said Standard & Poor's credit analyst Nancy Messer. Debt outstanding as of Dec. 31, 2007, totaled US$231 million, including an unrated US$23 million senior unsecured payment-in- kind term loan at the holding company and US$26.3 million financing liability resulting from the sale leaseback of a German facility in 2007. S&P could lower the ratings if Hilite is unable to maintain adequate liquidity in 2008 in light of negative cash flow and limited bank facility availability. We are concerned about the company's ability to maintain adequate liquidity because of volatile market conditions, including pricing pressures and commodity cost increases, and our expectation of weak original equipment manufacturer production volumes. S&P could revise the outlook to stable or positive the longer term if the company is able to generate free cash flow, perhaps by increasing revenues through new product launch volumes while stabilizing margins. ============= G E R M A N Y ============= ALERIS INTERNATIONAL: S&P Holds B+ Rating with Negative Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Aleris International Inc., including its 'B+' corporate credit rating. At the same time, S&P removed the ratings from CreditWatch, where they were placed with negative implications on April 17, 2008. The outlook is negative. Pro forma consolidated debt, including debt-like obligations and reflecting the November 2007 sale of U.S. Zinc, was about $2.7 billion at Dec. 31, 2007. "The affirmation and CreditWatch removal reflects our expectation that operating performance will improve as 2008 progresses because of the combination of productivity improvements and increased volumes in the second half," said Standard & Poor's credit analyst Maurice Austin. "In addition, we expect the company's favorable liquidity position to be adequate to support Aleris through the ongoing end-market downturn. Still, credit measures remain very weak for the current rating and provide little cushion against further deterioration. A prolonged period of weakness in the transportation and construction markets could significantly constrain the company's ability to generate cash and to lower its debt burden." Beachwood, Ohio-based Aleris manufactures aluminum sheet for distributors and the transportation, construction, and consumer durables end-user markets. "We could lower the ratings if the company's operating performance does not improve and if Aleris doesn't reduce its debt to maintain the ratio of debt to EBITDA below 5.5x for the current rating," Mr. Austin said. We are less likely to revise the outlook to stable this year. Such an action would depend on an improvement in profitability in conjunction with positive market trends." The company's international segment provides aluminum metal to customers through both tolling arrangements and product sales, and the types of scrap that it recycles are similar to those processed by Aleris� U.S. recycling facilities. In 2004 its five plants have a rated annual capacity of 1.08 billion pounds. The operations include two aluminum recycling and foundry alloy plants in Germany as well as aluminum recycling facilities in Brazil, Mexico and Wales. The segment�s growth is largely a result of its development and use of efficient scrap preparation and recycling technologies that allow high recovery of metal and delivery of a top-quality product. In Asia, the company has subsidiaries in Hong Kong and China. BARGE BETRIEBS: Claims Registration Period Ends May 23 ------------------------------------------------------ Creditors of Barge Betriebs GmbH have until May 23, 2008, to register their claims with court-appointed insolvency manager Heiko Jaap. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 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 Stralsund Hall AE 26 House A Frankendamm 17 Stralsund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Heiko Jaap Steinbeckerstr. 10 17489 Greifswald Germany The District Court of Stralsund opened bankruptcy proceedings against Barge Betriebs GmbH on April 21, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Barge Betriebs GmbH Attn: Anja Meske, An der Thronpost 12 17489 Greifswald Germany COMTRADE INTEGRATION: Claims Registration Period Ends May 23 ------------------------------------------------------------ Creditors of COMTRADE Integration & Support gGmbH have until May 23, 2008, to register their claims with court-appointed insolvency manager Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 9:35 a.m. on June 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against COMTRADE Integration & Support gGmbH on April 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: COMTRADE Integration & Support gGmbH Attn: Heinz Leuer, Manager Karl-Heinz-Beckurts-Strasse 13 52428 Juelich Germany COMTRADE MOBILIEN: Claims Registration Period Ends May 23 --------------------------------------------------------- Creditors of COMTRADE Mobilien Leasing GmbH have until May 23, 2008, to register their claims with court-appointed insolvency manager Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against COMTRADE Mobilien Leasing GmbH on April 3, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: COMTRADE Mobilien Leasing GmbH Attn: Heinz Leuer, Manager Jarrestrasse 6 22303 Hamburg CELLKERN GMBH: Claims Registration Period Ends May 23 ----------------------------------------------------- Creditors of Cellkern GmbH have until May 23, 2008, to register their claims with court-appointed insolvency manager Hans-Peter Valentiner. Creditors and other interested parties are encouraged to attend the meeting at 11:45 a.m. on June 23,2008, 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 Celle Nebenstelle Hall 014 Ground Floor Branch Mill Road 4 29221 Celle Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Peter Valentiner Bahnhofstr. 30 A 29221 Celle Germany Tel: 05141/28011 Fax: 05141/24722 E-mail: Rae_valentiner_blaha_buchholz@gmx.de The District Court of Celle Nebenstelle opened bankruptcy proceedings against Cellkern GmbH on April 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cellkern GmbH Attn: Guenter Schubert, Manager Markt 3 29221 Celle Germany MANIA TECHNOLOGIE: Files for Insolvency Proceedings --------------------------------------------------- The management board of Mania Technologie AG filed for insolvency proceedings on April 28, 2008, with the competent local court of Bad Homburg v.d.H. due to over-indebtedness. After intensive internal as well as expert examination the management board of the Company assumes that the Company is over-indebted in the meaning of Insolvency Law. The insolvency filing of the Company has no direct or indirect impact on the German and foreign operating subsidiaries of the Company. At present, the Company is preparing an insolvency plan together with all participants which aims for the restructuring of the whole Mania group. Due to the filing for insolvency the calling of the extraordinary shareholders� meeting regarding the loss of half of the registered share capital as mentioned in the ad-hoc- announcement as of April 18, 2008 is not required any more and therefore the management board will not make that calling. Headquartered in Germany, Mania Technologie AG -- http://www.maniagroup.com/-- engages in the development, manufacture, and sale of machines, systems, and services to the printed circuit board industry in Europe, Asia, Africa, and the Americas. The equipment portfolio includes imaging systems, optical inspection (AOI), electrical testers, drilling machines, and CAM software. N & B PROJEKTENTWICKLUNG: Claims Registration Ends May 21 --------------------------------------------------------- Creditors of N & B Projektentwicklung GmbH have until May 21, 2008 to register their claims with court-appointed insolvency manager Frank M. Welsch. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on June 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bielefeld Meeting Hall 4065 Fourth Floor Gerichtstr. 6 33602 Bielefeld Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Frank M. Welsch Barkeystrasse 30 33330 G�tersloh Germany The District Court of Bielefeld opened bankruptcy proceedings against N & B Projektentwicklung GmbH on April 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: N & B Projektentwicklung GmbH Berliner Str. 9-11 33378 Rheda-Wiedenbrueck Germany Attn: Daniel Koerfgen and Moritz Beuven, Managers Talstr. 41 b 79263 Simonswald Germany PIN GROUP: Axel Springer CEO Regrets Investment in Firm ------------------------------------------------------- Acquiring a 64% stake in PIN Group AG was a mistake, Axel Springer AG CEO Mathias Doepfner told shareholders during its annual general meeting, Reuters reports. According to Mr. Doepfner, Reuters relates, its PIN investment along with the financial crisis in the capital markets in the second half of 2007 and general skepticism among investors towards media firms, had negative impact on Axel Springer's share price, which dropped from EUR98 apiece as of Dec. 28, 2007, to EUR74 each as of April 24, 2008. Axel Springer suffered a EUR288 million loss in 2007 following EUR572 million in write-downs at PIN Group, Reuters says. Axel Springer acquired PIN Group to challenge main player Deutsche Post, but stopped its funding after the German government set minimum wages of EUR8-EUR9.80 for the postal industry, which is higher than PIN employees receive. About PIN Group Based in Luxembourg, PIN Group AG -- http://www.pin-group.net/ -- provides postal services across Germany. The group has more than 60 regional subsidiaries, and in 2006 became a national integrated provider by setting up an efficient nationwide distribution network. As previously reported in the TCR-Europe, PIN Group's units filed for insolvency after Axel Springer AG decided to stop funding the company. Axel Springer said the business in unviable following the German government's decision to introduce minimum wages of EUR8-EUR9.80 for the postal industry, which would PIN, which has 9,000 employees, up to EUR45 million, although "most of the costs are expected to be covered by a form of state reimbursement." REMMERS GMBH: Claims Registration Period Ends May 16 ---------------------------------------------------- Creditors of Remmers GmbH have until May 16, 2008, to register their claims with court-appointed insolvency manager Alexander Kaesebier. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on June 9, 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 Remmers GmbH on March 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Remmers GmbH Tiestr. 15 31171 Nordstemmen Germany RIMO WOHNBAU: Claims Registration Period Ends May 16 ---------------------------------------------------- Creditors of RIMO Wohnbau & Immobilien GmbH have until May 16, 2008, to register their claims with court-appointed insolvency manager Klaus E. Breithaupt. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting 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: Klaus E. Breithaupt Baierbrunner Str. 25 81379 Munich Germany Tel: 089/45 22 77-0 Fax: 089/45 22 77-29 The District Court of Munich opened bankruptcy proceedings against RIMO Wohnbau & Immobilien GmbH on March 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RIMO Wohnbau & Immobilien GmbH Rumfordstr. 16 80469 Munich Germany SAMUDRA GMBH: Claims Registration Period Ends May 16 ---------------------------------------------------- Creditors of Samudra GmbH have until May 16, 2008, to register their claims with court-appointed insolvency manager Bjoern Gehde. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 16, 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 Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report 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. Bjoern Gehde Goethestr. 85 10623 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Samudra GmbH on March 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Samudra GmbH Schoenhauser Allee 79/80 10439 Berlin Germany SANITAR-GMBH: Claims Registration Period Ends May 16 ---------------------------------------------------- Creditors of Sanitar-GmbH Wernsdorf have until May 16, 2008, to register their claims with court-appointed insolvency manager Reinhard Klose. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on June 3, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 27 Fuerstenstrasse 21-23 09130 Chemnitz 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: Reinhard Klose Leipziger Str. 58 09113 Chemnitz Germany Tel: (0371) 444610 Fax: (0371) 4446111 E-mail: klose@handschumacher.de The District Court of Chemnitz opened bankruptcy proceedings against Sanitar-GmbH Wernsdorf on March 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sanitar-GmbH Wernsdorf Attn: Udo Fischer, Manager Hauptstrasse 50b 09328 Lunzenau Germany SEEVETALER LAGER: Claims Registration Ends May 21 ------------------------------------------------- Creditors of Seevetaler Lager- und Transportlogistik GmbH have until May 21, 2008 to register their claims with court-appointed insolvency manager Rembert Kuebel-Heising. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Rembert Kuebel-Heising Winsener Strasse 14 21376 Salzhausen Germany Tel: 04172/90900 Fax: 04172/909011 The District Court of Lueneburg opened bankruptcy proceedings against Seevetaler Lager- und Transportlogistik GmbH on April 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Seevetaler Lager- und Transportlogistik GmbH Appenstedter Waldchen 1 21217 Seevetal Germany SSM PFALZ: Claims Registration Period Ends May 16 ------------------------------------------------- Creditors of SSM Pfalz Stoffstrommanagement GmbH have until May 16, 2008, to register their claims with court-appointed insolvency manager Matthias Bott. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on June 6, 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 Konstanz Hall 207 Second Floor Untere Laube 12 78462 Konstanz 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: Matthias Bott Bodnegger Str. 19 88287 Gruenkraut Germany The District Court of Konstanz opened bankruptcy proceedings against SSM Pfalz Stoffstrommanagement GmbH on April 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SSM Pfalz Stoffstrommanagement GmbH Stadtgraben 1 88677 Markdorf Germany THIELERT AIRCRAFT: Parent to Sell Shares to Raise Funds ------------------------------------------------------- Thielert AG, parent firm of Thielert Aircraft Engines GmbH, will commence a share sale to increase liquidity and secure the operations of its financially troubled unit, Bloomberg News reports. As reported in the TCR-Europe on April 25, 2008, the executive board of Thielert Aircraft filed for the opening of insolvency at the District Court of Chemnitz due to immediate illiquidity. Thielert AG said that its shareholders refused to support a restructuring plan for Thielert Aircraft. Joseph Mapother of Bloombeg News writes that the Court has appointed Bruno Kuebler as insolvency administrator, who has commenced contacting Thielert creditors. Headquartered in Lichtenstein, Saxony/Germany, Thielert Aircraft Engines GmbH -- http://www.thielert.com/-- is a full subsidiary of Thielert AG, which develops and manufactures components for high-performance engines and special parts with complex geometries and hardware and software for digital engine control systems. T.I.B. GMBH: Claims Registration Ends May 21 -------------------------------------------- Creditors of T.I.B. GmbH have until May 21, 2008 to register their claims with court-appointed insolvency manager Friedrich- Wilhelm Klein. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 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 Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Friedrich-Wilhelm Klein Turmhof 15 42103 Wuppertal Germany Tel: 0202/493700 Fax: 0202/4937099 The District Court of Wuppertal opened bankruptcy proceedings against T.I.B. GmbH on April 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: T.I.B. GmbH Wichlinghauser Str. 51-53 42277 Wuppertal Germany Attn: Susanne Janssen, Manager Calvinstr. 15 42103 Wuppertal Germany ============= I C E L A N D ============= CONEXANT SYSTEMS: Terminates Daniel Artusi as President and CEO --------------------------------------------------------------- Conexant Systems, Inc. said that on April 21, 2008, it executed an agreement, which became effective on April 29, 2008, with Daniel A. Artusi, pursuant to which Mr. Artusi�s service as President and Chief Executive Officer of the company ceased effective as of April 14, 2008 and Mr. Artusi became a non- executive employee of the company, which position he held through April 25, 2008. Pursuant to the Artusi Agreement, the company elected to terminate Mr. Artusi�s employment as President and Chief Executive Officer with the company per section 8(b)(ii) of the original employment agreement between Mr. Artusi and the Company dated June 21, 2007. Mr. Artusi will receive certain compensation and benefits that Mr. Artusi is entitled to receive pursuant to the 2007 Agreement as a result of his termination "without cause" from the company. Pursuant to his employment agreement, Mr. Artusi will receive a lump sum separation payment in full and final settlement of matters relating to his employment with the company of US$2,716,438, which payment will be paid within 30 days of April 25, 2008. In addition, all of Mr. Artusi�s stock options and shares of non-performance based restricted stock will vest and all vested stock options may be exercised for two years from the date of termination, after which time all of his stock options will expire. In addition, Mr. Artusi is restricted from competing with the company or soliciting employees or customers of the Company, which provisions will apply to Mr. Artusi until April 25, 2009. About Conexant Headquartered in Newport Beach, California, Conexant Systems, Inc. (NASDAQ: CNXT) -� http://www.conexant.com/-- has a comprehensive portfolio of innovative semiconductor solutions includes products for Internet connectivity, digital imaging, and media processing applications. Conexant is a fabless semiconductor company that recorded revenues of US$809 million in fiscal year 2007. Outside the United States, the company has subsidiaries in Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong, France, Germany, the United Kingdom, Iceland, India, Israel, Japan, Netherlands, Singapore and Israel. * * * Conexant currently carries Standard & Poor's Ratings Services� B- rating with a negative outlook. CONEXANT SYSTEMS: D. Scott Mercer Named as New CEO -------------------------------------------------- In a regulatory filing, Conexant Systems, Inc. said that that board member D. Scott Mercer has been named chief executive officer. The company also said that Christian Scherp, senior vice president of Worldwide Sales, has been promoted to president, and that Sailesh Chittipeddi, senior vice president of Global Operations, has been promoted to executive vice president of Global Operations and chief technical officer. Mercer and Scherp replace Daniel Artusi, who had been president and chief executive officer. Artusi will be leaving the company to pursue outside opportunities. �We are fortunate that an executive of Scott�s caliber and experience has chosen to become Conexant�s next chief executive officer,� said Dwight W. Decker, non-executive chairman of Conexant�s board of directors. �Scott has been a Conexant director for the past five years, so he is intimately familiar with the issues facing our company. I am confident that he will provide the strategic leadership Conexant requires to attain the next level of performance.� Mercer, 57, will continue as a company director. �I want to thank Dwight and the Conexant board for giving me the opportunity to lead the company,� Mercer said. �Over the past three quarters, the Conexant team has done a good job of reducing costs and improving financial performance, and we must continue to drive progress in these areas. Our highest priority right now is to determine the best way to deliver increased value to customers and shareholders. I am looking forward to working with Christian, Sailesh, and the rest of the senior team in the coming weeks to evaluate our market and financial positions, and to establish a clear strategic direction for our company. �I would also like to thank Dan for his service, and wish him the best in his future endeavors,� Mercer said. Mercer serves on the boards of Palm, Inc., Polycom, Inc., SMART Modular Technologies, Inc., and Adaptec, Inc., where he is chairman. In 2005, Mercer was named interim chief executive officer at Adaptec. Before that, he spent a total of eight years at Western Digital Corporation in positions that included executive vice president, chief financial and administrative officer, and senior vice president and advisor to the CEO. He also spent a year at TeraLogic, Inc. as chief financial officer, five years at Dell, Inc. in a variety of financial-management positions, and seven years at LSI Logic Corporation, where he was promoted to chief financial officer. After graduating with a bachelor�s degree in Accounting from the California Polytechnic University at Pomona, Mercer spent seven years with Price Waterhouse in San Jose, Calif. In his new position as president, Scherp, 42, will report to Mercer and be responsible for the activities and results of Conexant�s three business units in addition to managing the company�s global sales force. Prior to joining Conexant in June 2005, Scherp spent eight years with Infineon Technologies North America. In his last position at Infineon, he served as vice president and general manager of the company�s Wireless/Wireline Communications Group. He was also vice president of marketing for the Wireline Communications Group, and vice president and general manager of the Communications Group�s wide area networking business. Before Infineon was spun-off from Siemens AG in 1997, Scherp spent six years in a variety of positions in engineering, marketing and business planning at Siemens. He holds a master�s degree in electrical and electronics engineering, and a master�s degree in business administration from the Technical University of Munich, Germany. Chittipeddi, 45, joined Conexant in June 2006 as senior vice president of Global Operations. In his new role, Chittipeddi will report to Mercer and be responsible for Global Operations, Quality, Worldwide Manufacturing Engineering, Design Platform Engineering, and Purchasing. Prior to joining Conexant, Chittipeddi held several senior operations-related positions with Agere Systems, Lucent Technologies, and AT&T Microelectronics. He also served as Lucent�s SEMATECH representative, and was a member of the Technical Staff with AT&T Bell Labs. Chittipeddi holds a master�s degree in business administration from the University of Texas at Austin, a master�s degree and a doctorate in physics from Ohio State University, and a master�s degree in physics from Northern Illinois University. He also holds 59 U.S. patents related to semiconductor process, package, and design, and has authored nearly 40 publications. About Conexant Headquartered in Newport Beach, California, Conexant Systems, Inc. (NASDAQ: CNXT) -� http://www.conexant.com/-- has a comprehensive portfolio of innovative semiconductor solutions includes products for Internet connectivity, digital imaging, and media processing applications. Conexant is a fabless semiconductor company that recorded revenues of US$809 million in fiscal year 2007. Outside the United States, the company has subsidiaries in Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong, France, Germany, the United Kingdom, Iceland, India, Israel, Japan, Netherlands, Singapore and Israel. * * * Conexant currently carries Standard & Poor's Ratings Services� B- rating with a negative outlook. CONEXANT SYSTEMS: Posts US$142 Million Net Loss in 2008 2Q ---------------------------------------------------------- Conexant Systems, Inc. reported that financial results for the second quarter of fiscal 2008 that exceeded the company�s expectations entering the quarter. Revenues for the second quarter of fiscal 2008 were US$174.0 million. Core gross margins were 45.0% of revenues. Core operating expenses were US$72.3 million, and core operating income was US$6.0 million. Conexant�s core net loss was US$3.3 million, or US$0.01 per diluted share. On a GAAP basis, gross margins for the second quarter of fiscal 2008 were 45.4% of revenues. GAAP operating expenses were US$204.7 million. GAAP operating loss was US$125.7 million and GAAP net loss was US$142.0 million, or US$0.29 per share. The GAAP net loss in the quarter included an asset impairment charge of US$121.7 million primarily related to the write-down of goodwill associated with the Broadband Media Processing business. The company ended the quarter with US$164.1 million in cash and cash equivalents. Cash declined by approximately US$68.0 million, due in large measure to the companys re-purchase of US$53.6 million of its floating rate senior notes. Business Perspective �I am pleased to be a part of the Conexant team and enthusiastic about our company�s long-term prospects,� said Scott Mercer, who joined Conexant as chief executive officer on April 14, 2008. �In the coming weeks and months, I will be focusing on our overall strategy, and on improving our financial performance and position.� �For the second fiscal quarter, we exceeded our expectations entering the quarter,� Mercer said. �We anticipated revenues in a range between $165 million and $170 million, and we delivered $174 million. Core gross margins came in at the high end of the range we provided, and core operating expenses were significantly lower than we expected, which reflects the teams commitment to reducing costs.� Business Outlook Conexant expects revenues for the third quarter of fiscal 2008 to be in a range between US$167 million and US$171 million, which includes revenues from its Broadband Media Processing product lines. About Conexant Headquartered in Newport Beach, California, Conexant Systems, Inc. (NASDAQ: CNXT) -� http://www.conexant.com/-- has a comprehensive portfolio of innovative semiconductor solutions includes products for Internet connectivity, digital imaging, and media processing applications. Conexant is a fabless semiconductor company that recorded revenues of US$809 million in fiscal year 2007. Outside the United States, the company has subsidiaries in Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong, France, Germany, the United Kingdom, Iceland, India, Israel, Japan, Netherlands, Singapore and Israel. * * * Conexant currently carries Standard & Poor's Ratings Services� B- rating with a negative outlook. CONEXANT SYSTEMS: Sells Broadband Media Product Line to NXP ----------------------------------------------------------- Conexant Systems, Inc. signed a definitive agreement to sell its Broadband Media Processing product lines to NXP Semiconductors in a transaction valued at up to US$145 million. Conexant�s Broadband Media Processing business provides solutions for satellite, cable, terrestrial, and IPTV set-top box applications. Under the terms of the agreement, Conexant will receive US$110 million in cash, and up to US$35 million in an �earn-out� fee, contingent upon the achievement of certain milestones over the next two years. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close within the next 60 days. �Over the years, the Conexant team has successfully developed complex solutions for a variety of set-top box applications,� said Scott Mercer, Conexant�s chief executive officer. �NXP has a long history in consumer electronics, and they possess the scale, skill-sets, and resources required to maintain and expand the positions we established. I am convinced that the combined team will attain an even higher level of success as they continue to deliver innovative, cost-effective set-top box solutions to customers worldwide. �Divesting our Broadband Media Processing product lines also represents a major step in our continuing effort to restructure our company�s business model and cost structure,� Mercer said. �As we get closer to completing the transaction, we plan to provide additional information on the financial performance we expect from our continuing company.� Approximately 700 Conexant employees at locations in the United States, Europe, Israel, Asia-Pacific, and Japan will transfer to NXP and join the company�s Home BusinessUnit when the transaction closes. At that time, Conexant�s ongoing businesses will consist of Imaging and PC Media, and Broadband Access. The total available market addressed by these product lines is greater than US$3 billion today and expected to grow over the next three years. About Conexant Headquartered in Newport Beach, California, Conexant Systems, Inc. (NASDAQ: CNXT) -� http://www.conexant.com/-- has a comprehensive portfolio of innovative semiconductor solutions includes products for Internet connectivity, digital imaging, and media processing applications. Conexant is a fabless semiconductor company that recorded revenues of US$809 million in fiscal year 2007. Outside the United States, the company has subsidiaries in Northern Ireland, China, Barbados, Korea, Mauritius, Hong Kong, France, Germany, the United Kingdom, Iceland, India, Israel, Japan, Netherlands, Singapore and Israel. * * * Conexant currently carries Standard & Poor's Ratings Services� B- rating with a negative outlook. ============= I R E L A N D ============= CAIRN HIGH: Moody's May Further Cut B2 Rating After Review ---------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade four classes of notes issued by Cairn High Grade ABS CDO I PLC, a limited purpose vehicle incorporated in Ireland. These rating actions are a response to severe credit deterioration in the underlying portfolio. The transaction is a managed cash CDO of ABS, containing roughly 12.46% ABS CDOs and 40.66% sub-prime RMBS of mostly 2005 vintage, but also some 2006 and 2007 vintages. Many of the assets in the portfolio have been downgraded, placed on review for downgrade, or both since October 2007. 0.85% of the portfolio by volume (US ABS CDOs) is currently rated C or Ca. Moody's announced on February 04, 2008 that it is revising its expected loss assumptions which are used for surveillance of ratings of ABS CDOs holding subprime RMBS, specifically of the 2006 vintage. Moody's stated that for purposes of monitoring its ratings of ABS CDOs with exposure to 2006 subprime RMBS, it will rely on certain projections of the lifetime average cumulative losses for 2006's quarterly vintages of RMBS set forth in a recent Moody's Special Report, "Moody's Updates Loss Projections for 2006 Subprime Loans." This report illustrates average loss results for the 2006 quarterly vintages under five distinct loss projection scenarios. Moody's explained that it will utilise the range of loss projections set forth in Scenarios 2 and 3 based on deal performance and quarterly vintage to modify its prior assumptions of the expected loss inputs when monitoring ABS CDO ratings. Moody's will continue to monitor all deals with exposure to US subprime RMBS, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS vintages becomes known. These rating actions are: (1) US$20,000,000 Class A2 Floating Rate Notes due 2055; -- Current Rating: Aa1, on review for downgrade -- Prior Rating: Aaa (2) US$20,000,000 Class B Floating Rate Notes due 2055; -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa1 (3) US$20,000,000 Class C Floating Rate Notes due 2055; -- Current Rating: Baa2, on review for downgrade -- Prior Rating: Aa3 (4) US$15,000,000 Class D Floating Rate Notes due 2055; -- Current Rating: B2, on review for downgrade -- Prior Rating: A3 The Aaa rating of US$911,000,000 Class A1 Delayed Draw Floating Rate Notes due 2055 is not affected. ========= I T A L Y ========= ALITALIA SPA: Files Over EUR1-Billion Damages Suit vs SEA SpA ------------------------------------------------------------- Alitalia S.p.A. is seeking more than EUR1 billion in damages against SEA S.p.A. for breach of contract and serious damage to reputation, Agence France-Presse reports. Alitalia claims SEA breached plans to expand Milan's Malpensa airport and improve transport infrastructure, AFP relates. Alitalia also claims that SEA's EUR1.2-billion suit against it has damaged the national carrier's sale prospects. Air France-KLM SA, said its binding offer for the Italian government's 49.9% stake in Alitalia hinges on several conditions, including "the identification of an applicable solution to definitely remove the risk connected to the SEA claim." Air France had withdrawn its bid. As reported in the TCR-Europe on Feb. 6, 2008, SEA filed a EUR1.2 billion damages suit against Alitalia over the carrier's decision to downscale its operations at Milan's Malpensa airport. SEA chairman Giuseppe Bonomi said Alitalia violated a hub partnership agreement and contracts with SEA and its SEA Handling unit. Mr. Bononi noted that SEA designed and developed Malpensa as Alitalia required in terms of infrastructures, facilities and organization. However, Mr. Bononi added, the investments are rendered useless by Alitalia's downscale plan. According to Mr. Bononi, Alitalia's downscale plan will cut traffic at Malpensa by 6 million passengers and will reduce the airport's results by EUR70 million. In March, SEA said will not withdraw the suit against Alitalia, but may consider an out-of-court settlement. 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, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. =================== K A Z A K H S T A N =================== GLINTVANE LLP: Claims Registration Ends June 18 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Glintvane insolvent on March 27, 2008. Creditors have until June 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Pobeda ave. 5 Pavlodar Kazakhstan Tel: 8 (7182) 32-38-46 IMPLANT-SERVICE ASTANA: Claims Registration Ends June 13 -------------------------------------------------------- LLP Implant-Service Astana has declared insolvency. Creditors have until June 13, 2008, to submit written proofs of claims to: LLP Implant-Service Astana Jambyl Str. 20 Stantsiya 40 Almatinsky Astana Kazakhstan KAZ ALLIANCE: Creditors Must File Claims by June 17 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Kaz Alliance Stroy insolvent on April 7, 2008. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 MIGROS KIPA: Claims Deadline Slated for June 17 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Migros Kipa insolvent. Creditors have until June 17, 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 TDE-100 LLP: Claims Filing Period Ends June 18 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP TDE-100 insolvent. Creditors have until June 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan UAK-SNUB LLP: Creditors' Claims Due on June 17 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Uak-Snub insolvent April 4, 2008. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 =================== L U X E M B O U R G =================== PIN GROUP: Axel Springer CEO Regrets Investment in Firm ------------------------------------------------------- Acquiring a 64% stake in PIN Group AG was a mistake, Axel Springer AG CEO Mathias Doepfner told shareholders during its annual general meeting, Reuters reports. According to Mr. Doepfner, Reuters relates, its PIN investment along with the financial crisis in the capital markets in the second half of 2007 and general skepticism among investors towards media firms, had negative impact on Axel Springer's share price, which dropped from EUR98 apiece as of Dec. 28, 2007, to EUR74 each as of April 24, 2008. Axel Springer suffered a EUR288 million loss in 2007 following EUR572 million in write-downs at PIN Group, Reuters says. Axel Springer acquired PIN Group to challenge main player Deutsche Post, but stopped its funding after the German government set minimum wages of EUR8-EUR9.80 for the postal industry, which is higher than PIN employees receive. About PIN Group Based in Luxembourg, PIN Group AG -- http://www.pin-group.net/ -- provides postal services across Germany. The group has more than 60 regional subsidiaries, and in 2006 became a national integrated provider by setting up an efficient nationwide distribution network. As previously reported in the TCR-Europe, PIN Group's units filed for insolvency after Axel Springer AG decided to stop funding the company. Axel Springer said the business in unviable following the German government's decision to introduce minimum wages of EUR8-EUR9.80 for the postal industry, which would PIN, which has 9,000 employees, up to EUR45 million, although "most of the costs are expected to be covered by a form of state reimbursement." =========== R U S S I A =========== AK TRANSNEFTEPRODUCT: S&P Lifts Corporate Credit Rating to BB- -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian oil product pipeline company OJSC AK Transnefteproduct to 'BB-' from 'B+'. At the same time, S&P raised the Russia national scale rating to 'ruAA' from 'ruAA-'. At the same time, the global scale ratings were removed from CreditWatch, where they had been placed on April 17, 2007, following the announcement of the merger with state-owned Russian oil pipeline monopoly OAO AK Transneft (BBB+/Stable/--). The outlook is positive. "We upgraded Transnefteproduct following our analysis of the impact of the shareholding change on the company's financial and business risk," said Standard & Poor's credit analyst Andrey Nikolaev. The ratings are based on the company's stand-alone credit quality, which we continue to assess at 'B+', plus a one-notch uplift for extraordinary support from its 100% shareholder, Transneft, reflecting the credit enhancement of being owned by a larger and stronger parent. The stand-alone rating on Transnefteproduct continues to reflect the company's position as a relatively small and mainly commercial operator competing with other transportation providers. It also reflects the risks associated with the company's large, new pipeline project, North. Due to negative free cash flow during construction in 2005-2007, TNP's debt increased to Russian ruble (RUR) 20.1 billion ($855 million) at the end of 2007 from almost zero in 2005. "We expect that Transnefteproduct could be upgraded in the next 12 months or so if the company becomes free operating cash flow positive--thanks to cash flows generated by the new North project, as well as by its traditional routes and lower capital expenditures--or if Transnefteproduct integrates more closely within Transneft," said Mr. Nikolaev. S&P will monitor the role of Transnefteproduct in the Transneft group, as well as Transneft's strategy toward its subsidiary, including its level of operational and financial autonomy; whether the new debt will be issued at Transneft or the Transnefteproduct level; and whether existing debt will be refinanced. Should the capacity utilization level or profitability of the new route turn out to be substantially lower than that of existing operations, or if the company embarks on a new major debt-financed investment project prior to restoring its financial flexibility, the outlook could come be negatively affected. ATEKS CJSC: Creditors Must File Claims by May 26 ------------------------------------------------ Creditors of CJSC Ateks have until May 26, 2008, to submit proofs of claim to: N. Egorova Temporary Insolvency Manager Post User Box 58 127349 Moscow Russia Tel: (495) 500-70-57 The Arbitration Court of Moscow will convene at 10:00 a.m. on July 29, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A41-4400/08. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Ateks Promyshlennaya Str. 10 Dybna 141980 Moscow Russia CENTRAL TELECOMMUNICATIONS: S&P Holds B+ Corporate Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Russian telecoms provider Central Telecommunications Co. (OJSC) to stable from positive. At the same time, the 'B+' long-term corporate credit rating and 'ruA+' Russia national scale rating were affirmed. "The outlook revision reflects our opinion that the company's increasing investments will likely prompt debt leverage to rise above our expectations for a higher rating," said Standard & Poor's credit analyst Alexander Griaznov. "Among Russian regional incumbent operators, CTC has the lowest network digitalization, explaining the company's need to increase its capital expenditure." To compete with Russia's two largest alternative operators-- Comstar United Telesystems (JSC) and Golden Telecom Inc.--CTC is actively rolling out its broadband offering, which also requires substantial spending. The company's business profile continues to be constrained by strong competition, limited revenue diversification, and the modest characteristics of its franchise area. CTC's financial profile is currently adequate for the rating, with moderate debt at less than 2x EBITDA. However, gradually increasing investments will lead to negative free operating cash flow during the next several years, which will require additional debt financing. The ratings are supported by CTC's incumbent position, its vast network in European Russia's central region, and its "last-mile" access to 6.7 million customers. CTC's effectiveness in optimizing operations and improving profitability is highlighted by the increase in its EBITDA margin to about 39% for the 12 months ended June 30, 2007. The profitability uptrend stems from substantial progress in headcount reduction, tighter spending controls, and gradual expansion of value-added services. However, CTC has fairly limited revenue diversification, with about 67% of revenues coming from traditional telephony. "We expect that CTC will sustain its positive operating performance, continue to diversify its revenue base, and enhance its profitability," said Mr. Griaznov. "The company will likely manage its increasing investments prudently, avoiding material deterioration to the financial profile." CTC's inability to effectively manage its financial risk--such as an upsurge in debt leverage or mounting liquidity pressures-- could have negative rating implications. Ratings upside is fairly limited since any substantial strengthening of business characteristics is not attainable over the next 12 months. NORTH-SERVICE OJSC: Creditors Must File Claims by May 22 -------------------------------------------------------- Creditors of OJSC North-Service have until May 22, 2008, to submit proofs of claim to: O. Elistratova Temporary Insolvency Manager Premise 4N Let. B 4th Sovetskaya Str. 20 191036 St. Petersburg Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A56-37391/2007. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: OJSC North-Service Berezovaya Al, 4 Kamennogorsk Vyborgskiy Leningrad Russia OGK-5 OAO: Earns RUR673.48 Million for 1st Qtr Ended March 31 ------------------------------------------------------------- OAO OGK-5 registered RUR673.48 million in net profit on RUR10.79 billion in net revenues for the first quarter ended March 31, 2008. The company also posted RUR128 billion in sales profit and RUR1.43 billion in gross profit for first quarter 2008. In fist quarter 2008, expenses related to income tax and other similar compulsory payments, as well as the effect of tax assets and deferred liabilities amounted to RUR247.43 million. As of March 31, 2008, OGK-5 had RUR55.03 billion in total assets, RUR6.53 billion in current accounts receivable, RUR4.59 in non-current accounts receivable and RUR2.58 billion in current accounts payable. About OGK-5 Headquartered in Ekaterinburg, Russia, OAO OGK-5 -- http://www.ogk-5.com/-- generates electricity and heat energy. The Company owns and operates four power plants: Konakovskaya GRES, Nevinnomysskaya GRES, Reftinskaya GRES, and Sredneuralskaya GRES. * * * As of March 26, 2007, OAO OGK-5 carries Ba3 Corporate Family and Probability-of-Default ratings from Moody's Investors Service. Moody's said the Outlook is Stable. ORLOVSKIY AGRICULTURAL: Asset Sale Slated for May 28 ---------------------------------------------------- A. Evseev, the insolvency manager and the bidding organizer for OJSC Orlovskiy Agricultural Combine, will open a public auction for the company's properties at noon on May 28, 2008 at: A. Evseev 4th floor 3rd Kurskaya Str. 15 Orel Russia Tel: (4862) 54-39-89 The case is docketed under Case No. A48-7181/06-17b. Interested participants have until May 23, 2008, to deposit an amount equivalent to 20% of the starting price to: OJSC Orlovskiy Agricultural Combine Settlement Account 40702810910000000528 Correspondent Account 30101810700000000751 BIK 045402751 OJSC Rosselkhozbank Orel Russia Bidding documents must be submitted to: A. Evseev 4th floor 3rd Kurskaya Str. 15 Orel Russia Tel: (4862) 54-39-89 The Debtor can be reached at: OJSC Orlovskiy Agricultural Combine 3rd Kurskaya Str. 15 302004 Orel Russia PROGRESS OJSC: Creditors Must File Claims by May 22 --------------------------------------------------- Creditors of OJSC Progress have until May 22, 2008, to submit proofs of claim to: N. Tyutyunik Insolvency Manager Buynakskaya Str. 2/56 344037 Rostov-na-Donu Russia The Arbitration Court of Rostov will convene at 9:00 a.m. on Aug. 21, 2008, to hear the bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A53-10485/2007-S1-21. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: OJSC Progress Voroshilova Str. 2 Platovo-Ivanovka Rodionovo-Nesvetayskiy 346592 Rostov Russia SISTEMA-HALS JSC: Earns US$34.68 Million for Year Ended Dec. 31 --------------------------------------------------------------- JSC Sistema-Hals released its unaudited consolidated financial results for the full year of 2007 in accordance with U.S. GAAP. JSC Sistema-Hals posted US$34.68 million in net profit on US$452.19 million in net revenues for the full year ended Dec. 31, 2007, compared with US$55.57 million in net profit on US$282.90 million in net revenues for the full year ended Dec. 31, 2006. The company attributed the increase in net revenues to the strong performance of its Real Estate Development division. Sistema-Hals attributed the decline in net profit to the increase in total operating expenses US$400.2 million in 2007 from US$200 million in 2006. "During the year of 2007 we concentrated our efforts on enhancing the efficiency of execution of our development projects," Felix Evtushenkov, President of Sistema-Hals, said. "This focus on construction program implementation and our marketing efforts in the favorable market conditions allowed us to deliver on strong results. We are pleased to report a solid 59.8% increase in our revenues in comparison to the previous year. "Our priority for 2008 is to continue developing our competitive advantages through enhancing our construction capabilities and strengthening our position in premium real estate development market segments. We are sure, that along with strong execution discipline and a focus on enhancing operational efficiency, our continued efforts towards building a strong portfolio of attractive projects in premium segments will allow us to capitalize on new opportunities for sustainable long-term growth." As of Dec. 31, 2007, Sistema-Hals had US$1.76 billion in total assets, US$1.18 billion in total liabilities, resulting to US$550.66 million in shareholder's equity About Sistema-Hals Based in Moscow, JSC Sistema-Hals -- http://www.sistema-hals.ru/ -- is property developers in Moscow and the Moscow region, with operations in the six regions in Russia, as well as Yalta and Kiev, Ukraine. The company is involved in a number of large-scale governmental infrastructural projects in the capacity of project manager. Sistema-Hals is a 71.1% subsidiary of Sistema JSFC. * * * As of April 30, 2008, JSC Sistema-Hals carries B1 long-term corporate family and probability-of-default rating from Moody's Investor Service, which said the outlook is stable. Sistema-Hals also carries B+ Issuer Default rating from Fitch, whichsaid the outlook is stable. SISTEMA-HALS JSC: Hikes Share Value in Property Projects by 30% --------------------------------------------------------------- JSC Sistema-Hals disclosed the result of an independent valuation of its share in properties and development projects as of Jan. 1, 2008, carried out by Cushman & Wakefield Stiles & Riabokobylko (C&WS&R). According C&WS&R, the value of Sistema-Hals' holding in properties and development projects rose by 30% during the period from July 1, 2007, to Jan. 1, 2008. C&WS&R determined that as at Jan. 1, 2008 the total market value of 100% ownership of the 103 projects and properties amounted to US$4.64 billion. Of this, US$3.75 billion was attributable to Sistema-Hals after deducting minority interests. The previous appraisal by C&WS&R as at July 1, 2007, had valued 100% ownership of the properties and projects in the Sistema- Hals portfolio at US$3.52 billion, with the share attributable directly to Sistema-Hals being worth US$2.88 billion. The growth in the value of the company's share in properties and development projects is largely the result of acquisitions of new projects, progress in execution of ongoing projects and an increase in the GBA of development projects and properties in the premium segments. "In 2007 as part of our portfolio management strategy we devoted special attention to raising the quality of our investment projects, acquiring new projects in premium segments and efficiently implementing projects at the active development stage," Felix Evtushenkov, President of Sistema-Hals, commented. "The 30% rise in the value of our portfolio confirms the success of this strategy. "In 2008 we will focus our efforts on expanding the share of premium projects in our portfolio and boosting project size, with the intention of raising portfolio management efficiency and increasing future rental income. We believe that this strategy will ensure steady growth in shareholder value." About Sistema-Hals Based in Moscow, JSC Sistema-Hals -- http://www.sistema-hals.ru/ -- is property developers in Moscow and the Moscow region, with operations in the six regions in Russia, as well as Yalta and Kiev, Ukraine. The company is involved in a number of large-scale governmental infrastructural projects in the capacity of project manager. Sistema-Hals is a 71.1% subsidiary of Sistema JSFC. * * * As of April 30, 2008, JSC Sistema-Hals carries B1 long-term corporate family and probability-of-default rating from Moody's Investor Service, which said the outlook is stable. Sistema-Hals also carries B+ Issuer Default rating from Fitch, whichsaid the outlook is stable. SIVINSKIY AGRO-LES-KHOZ: Creditors Must File Claims by May 22 ------------------------------------------------------------- Creditors of LLC Sivinskiy Agro-Les-Khoz have until May 22, 2008, to submit proofs of claim to: A. Zhdanov Insolvency Manager Beloborodovo Nytvenskiy 617000 Perm Russia The Arbitration Court of Perm commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A50P-22/2008. The Court is located at: The Arbitration Court of Perm Lunacharskogo Str. 3 Perm Russia The Debtor can be reached at: LLC Sivinskiy Agro-Les-Khoz Pushkina Str. 106 Siva 617240 Perm Russia * Fitch Positive on Russian Power Sector's Liberalisation --------------------------------------------------------- Fitch Ratings says it expects the Russian power sector's liberalisation process to remain on schedule, but warns of the potential for increased leverage from debt-funded capital expenditure. "Successful completion of Russia's power sector liberalisation programme is central to Fitch's Positive Outlook for the sector," said Anton Krawchenko, Associate Director, in Fitch's Energy, Utilities and Regulation team. "Liberalisation is expected to have a positive impact on the cash flows of Russian generators due to higher prices and reduced exposure to the volatility of inflation and rising energy input prices." In two special reports published today, Fitch says forecasts for continued strong domestic economic growth (forecast GDP growth of 7% in FY08) should help to keep Russia's power sector on course for liberalisation, since a failure to considerably expand generation capacity would undermine economic growth prospects. Competing social priorities mean that private capital is the only realistic option to fund this capacity expansion. Liberalisation, in turn, is a pre-requisite for the continued attraction of both domestic and foreign private capital to the power sector in Russia. Nevertheless, Fitch cautions that while privatisation revenues and subsequent equity injections are expected to fund the sector's programme of capacity expansion and refurbishment, the potential remains for sharply higher leverage among some generators. There is already evidence of capex plans at some companies edging past the level originally envisaged by incumbent RAO UES (which is unbundling its generation assets) when it established the auction-based privatisation process. In the report, Fitch also discusses the potential for a reconsolidation of the competitive power sector, which may act to constrain the ratings of Russia's smaller wholesale power market participants. Notably, the proposed merger of the power assets of SUEK and Gazprom would consolidate almost 20% of Russia's existing power capacity under two companies that dominate domestic coal and gas supply. The full reports, titled "The Russian Power Generation Landscape 2008" and "Russian Power Industry Overview", can be found on the agency's public website at http://www.fitchratings.com/ =========== S W E D E N =========== AVINMERITOR INC: Earns US$20 Million in Second Quarter 2008 ----------------------------------------------------------- ArvinMeritor, Inc. reported financial results for its second quarter ended March 31, 2008. Highlights for Second-Quarter Fiscal Year 2008 -- Sales of US$1.8 billion - approximately US$150 million higher than the same period last year primarily due to the effects of changes in foreign currency. -- Net income was US$20 million, or US$0.28 per diluted share, compared to a net loss of US$94 million, or US$1.34 per diluted share in the second quarter of fiscal year 2007. -- Income from continuing operations, before special items, was US$27 million, or US$0.37 per diluted share, compared to US$12 million, or US$0.17 per diluted share one year ago. -- Cash flow from operations, net of capital expenditures, was US$134 million compared to an outflow of US$71 million in the same period last year. -- Commercial Vehicle Systems EBITDA margins increased by 1.5 percentage points, before special items, in the second quarter of fiscal year 2008 compared to the same period last year, despite lower commercial vehicle volumes in North America. -- Performance Plus initiatives were implemented during the second quarter that will result in savings of US$32 million on an annual run-rate basis. The company continues to expect Performance Plus cost reductions of US$75 million this year net of known risks; growth opportunities previously announced will provide incremental profit opportunities. "In spite of the downturn in the North American commercial vehicle market that has lasted longer than we anticipated, and volume declines in the light vehicle market in North America, we delivered strong results this quarter," said Chairman, CEO and President Chip McClure. "Initiatives driven through Performance Plus, including lean improvements in our global manufacturing operations, are helping us put in place a solid foundation for continued earnings growth." Results for the Second-Quarter Fiscal Year 2008 In the second quarter of fiscal year 2008, ArvinMeritor posted sales from continuing operations of US$1.8 billion, up from the same period last year. Excluding the impact of foreign currency translation, sales were approximately flat due to a continued weak economy in North America, offset by strong sales growth in South America, Europe and Asia. EBITDA, before special items, was US$104 million, up US$27 million from the same period last year. This increase is primarily due to improved pricing and commodity cost recovery actions; cost reductions in direct material, overhead, labor and burden; increased throughput in the company's European facilities resulting from improved operational performance; stronger volumes in South America and higher sales of off- highway products in China and U. S. military products - all partially offset by lower vehicle volumes in North America and sharply rising commodity prices. On a GAAP basis, the company's income from continuing operations was US$24 million or US$0.33 per diluted share, compared to a loss from continuing operations of US$13 million or US$0.19 per diluted share in the same period last year. Income from continuing operations, before special items, was US$27 million, or US$0.37 per diluted share, compared to US$12 million, or US$0.17 per diluted share, a year ago. The only special item for the quarter was a US$3 million after-tax charge associated with the company's previously announced restructuring program, compared to special items totaling US$25 million after- tax in the same quarter of last year. Free cash flow (cash flow from operations net of capital expenditures) was US$134 million in the second quarter. Excluding non-recourse sales of receivables, free cash flow was US$52 million this quarter compared to an outflow of US$88 million one year ago. Free cash flow included US$28 million in proceeds from the termination of interest rate swaps, but did not include US$28 million received in connection with the final purchase price adjustment from the sale of our Emissions Technologies business. Update on Performance Plus As previously announced, ArvinMeritor expects cost reductions driven by its Performance Plus transformation program to generate US$150 million in net savings by 2009, with US$75 million occurring by the end of fiscal year 2008. The company originally defined three areas of Performance Plus as cost reduction targets: Direct Material Optimization, Manufacturing and Overhead. In the second quarter, achievements in each of these areas contributed to the company's cost reduction targets including: -- In-sourced manufacturing for certain CVS products to result in annual savings of US$7 million. -- Continued performance improvements resulting from implementation of the ArvinMeritor Production System. -- Selected a single source provider for North American industrial labor and global professional and clerical labor resulting in annual savings of US$4 million. Performance Plus also included initiatives to enhance the company's profitable growth. These growth actions were implemented this quarter: -- Awarded a long-term, multi-million dollar, supply agreement to provide remanufactured transmissions and axle carriers to Navistar Parts. -- Launched remanufactured transmissions in the Plainfield, Ind., aftermarket facility. -- Entered into a multi-year agreement with Tata Consultancy Services in India to enhance Light Vehicle Systems (LVS) engineering capabilities including product development and support in Asia Pacific. -- Re-established the company's off-highway original equipment and aftermarket components business in North America, South America, Europe and Africa. -- Awarded new business in conjunction with 2,200 new MRAP orders since January 2008. -- Booked new business with an Asian manufacturer to supply more than two million additional window regulator motors in China beginning in mid-2008. -- Announced new products designed specifically for the Asian market including the New Asian Latch product range of modular door latch designs, and a new sliding door latch system. Manufacturing Footprint Improvements In addition, several actions were implemented in the second quarter of fiscal year 2008 to improve the company's global manufacturing footprint. -- Building three new light vehicle manufacturing plants in Asia Pacific to support increased business in the region. -- Began production at the LVS facility in Salonta, Romania, to supply window regulators, cables, latches and actuators directly to Dacia � as well as for export to Western European customers. -- On track for July 2008 completion of the company's new commercial vehicle Monterrey, Mexico facility; also upgrading the company's Asheville, N.C. axle facility to include a new carrier assembly line for the NG14X - the next generation line haul axle to be launched in February 2009. Mitigating Rising Steel Prices The commodity markets are currently experiencing unprecedented volatility. Scrap steel, iron ore, and coking coal prices have simultaneously risen faster and higher than levels seen in the past. One of the world's largest steel producers has recently announced a US$250 per short ton surcharge on contract sales of sheet steel. Other factors contributing to the volatility include: -- Weak dollar resulting in a decline in imported steel -- Global consolidation in the steel industry -- Fuel and energy costs -- Global demand The combined impact of these factors has created a situation more significant to the global transportation industry than the effect of steel price increases encountered in 2004. While ArvinMeritor continues to drive lean improvement actions throughout the company's global operations, and strives to implement Performance Plus initiatives to gain additional efficiencies, it will not be possible to mitigate increases of this proportion through existing cost reduction programs alone. The company has steel cost recovery programs with most major OEMs, and will aggressively pursue additional recovery actions to address these extraordinary costs. Outlook The company's calendar year 2008 forecast for light vehicle sales is 15.2 million vehicles in North America, down from the previous forecast. The company's forecast for Western Europe is 17.1 million vehicles, unchanged from the prior forecast. ArvinMeritor's fiscal year 2008 forecast for North American Class 8 truck production is in the range of 200,000 to 220,000 units. The company's fiscal year 2008 forecast for heavy and medium truck volumes in Western Europe is 565,000 to 575,000. On a calendar year basis, the company anticipates North America Class 8 truck production to be in the range of 220,000 to 240,000 units; and heavy and medium truck volumes in Western Europe to be in the range of 580,000 to 590,000. The company now expects sales from continuing operations in fiscal year 2008 in the range of US$7.1 billion to US$7.3 billion, up US$200 million from the previous guidance primarily due to foreign exchange movements and continued growth outside the U.S. The outlook for full-year EBITDA from continuing operations, before special items, is expected to be in the range of US$390 million to US$410 million for the fiscal year. ArvinMeritor reaffirms its forecast for diluted earnings per share from continuing operations, before special items, to be in the range of US$1.40 to US$1.60. This guidance is based on the assumption of 1.4 percent U.S. GDP growth, and excludes gains or losses on divestitures and restructuring costs. Arv reaffirms its forecast for free cash flow to be in the range of negative US$75 million to negative US$125 million. "Commodity prices are spiking in a dramatic fashion," said McClure. "These increases, combined with resulting higher energy costs, require us to take additional recovery actions to mitigate future impact. For fiscal year 2008, we remain focused on our strategy to deliver results and are confident we will achieve our full-year guidance." About ArvinMeritor Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs about 18,000 people at more than 120 manufacturing facilities in 24 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. * * * ArvinMeritor�s Conv. Sr. Unsec. Notes and Sr. Unsec. Notes is rated by DBRS as BB(low)Neg. SAS AB: Weak Performance Cues S&P's Negative Watch on BB Rating --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' long�term corporate credit rating on Scandinavian airline group SAS AB on CreditWatch with negative implications. This reflects deteriorating industry conditions, including the rising oil price and intensifying competition, which we expect to pressure SAS' earnings and cash flow. "The CreditWatch placement reflects our concerns that underlying trading conditions are deteriorating," said Standard & Poor's credit analyst Leigh Bailey. "This is adversely affecting the group's performance and could place additional pressure on its financial profile." The rapid rise in oil prices, which is difficult to satisfactorily offset, and intensification of competition in certain markets by budget carriers mean that SAS faces a very challenging business environment, with costs rising at the same time as unit revenues are coming under pressure. The group's hedging position leaves it relatively exposed to market uncertainty over fuel prices, with only 43% cover for forecast consumption in 2008. Negative earnings trends in the first quarter to March 31, 2008, resulted in a substantial decline in profits compared with the equivalent period in 2007. This is reflected by an operating loss of Swedish krona 872 million for the first quarter of 2008 compared with a profit of SEK421 million in the first quarter of 2007. Although the first quarter is seasonally weak and included expenses from additional Q400 fleet costs, the underlying trading decline was about SEK600 million. In April 2008, the group announced the extension of its existing action plan to improve cost savings and offset additional costs, targeting a positive earnings effect of SEK1.1 billion in 2008. At March 31, 2008, credit protection measures were satisfactory for the ratings, with funds from operations to adjusted debt of about 25%, which is above average for the 'BB' rating level. This is balanced by an aggressively leveraged balance sheet, reflected by a debt-to-EBITDA ratio of about 6.0x. "To resolve the CreditWatch, Standard & Poor's will meet with management to discuss current and future trading expectations, the progress of its disposal program, the full benefits of the new cost-saving plan (Profit 2008), together with its funding strategy and plans for fleet renewal and investment," Mr. Bailey added. "Any lowering of the corporate credit rating will likely be limited to one notch". ===================== S W I T Z E R L A N D ===================== GLOBAL JET: Creditors' Liquidation Claims Due by May 7 ------------------------------------------------------ Creditors of JSC Global Jet Finance have until May 7, 2008, to submit their claims to: Alexander Vogele Liquidator Ruoss Vogele Partner Kreuzstrasse 54 8032 Zurich Switzerland The Debtor can be reached at: JSC Global Jet Finance Baar ZG Switzerland HILDEGARD-DROGERIE: Creditors' Liquidation Claims Due by May 8 -------------------------------------------------------------- Creditors of JSC Hildegard-Drogerie have until May 8, 2008, to submit their claims to: Werner Ness Liquidator Aeschenvorstadt 24/25 4051 Basel Switzerland The Debtor can be reached at: JSC Hildegard-Drogerie Basel Switzerland METABOLIC CONCEPTS: Creditors' Liquidation Claims Due by May 8 -------------------------------------------------------------- Creditors of LLC Metabolic Concepts have until May 8, 2008, to submit their claims to: Uwe Sauer Liquidator Naglerwiesenstr. 13 8049 Zurich Switzerland The Debtor can be reached at: LLC Metabolic Concepts Zurich Switzerland OBJECT-LINE: Bern Court Starts Bankruptcy Proceedings ----------------------------------------------------- The Berner Oberland Bankruptcy Service in Bern commenced bankruptcy proceedings against LLC Object-Line Grunig on Jan. 30, 2008. The Berner Oberland Bankruptcy Service c