/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/080502.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, May 2, 2008, Vol. 9, No. 87 Headlines A U S T R I A AZEGO TECHNOLOGY: Claims Registration Period Ends May 27 ILSE UND HERMANN: Claims Registration Period Ends May 28 KARIN GROEGER: Claims Registration Period Ends June 10 LIDZO BAU: Claims Registration Period Ends June 2 PICOMED MEDIZINTECHNIK: Claims Registration Period Ends May 3 SLIWON HANDEL: Claims Registration Period Ends May 27 F R A N C E ALCATEL-LUCENT SA: Posts EUR181 Million Loss for 1st Qtr 2008 G E R M A N Y DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31 HANSE-MASSIVBAU: Claims Registration Period Ends May 22 HEIDE-FLOWER GMBH: Claims Registration Ends May 23 HEIZUNGSMARKT -VOM VENTIL: Claims Registration Ends May 23 JANKE GMBH: Claims Registration Ends May 23 KOETHE - HOLZMARKT: Claims Registration Period Ends May 20 METALLBAU EISENACH: Claims Registration Ends May 23 PETER JORDAN: Claims Registration Ends May 23 PIN MAIL: Claims Registration Period Ends May 22 PIN MAIL 06: Claims Registration Period Ends May 22 PRONTO MODA: Claims Registration Period Ends May 20 RAD GESELLSCHAFT: Claims Registration Period Ends May 20 SCHWABAU BAUUNTERNEHMUNG: Claims Registration Period Ends May 20 TALISMAN-1 FINANCE: Fitch Upgrades Ratings on Five Tranches TSAR 15 CDO: Fitch Junks Ratings on Series 223-227 Note Classes Q29 NETWORK: Claims Registration Period Ends May 22 THIELERT AIRCRAFT: Parent Names Marcel Kleiss as Chief Executive I R E L A N D CLOVERIE PLC BRERA: Fitch Junks Ratings on Two Note Classes CLOVERIE PLC-GHIBLI: Fitch Cuts Ratings on Two Note Classes COLTRANE CLO: Loans Portfolio Sold at April 29 Auction EIRLES FOUR: Moody's May Further Cut Junk Ratings After Review EIRLES TWO: Moody's May Further Cut Junk Ratings After Review MAGNOLIA FINANCE: Fitch Cuts Rating on US$14.875MM Notes to 'CC' I T A L Y THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday THERMADYNE HOLDINGS: S&P Lifts Corporate Credit Rating to 'B-' K Y R G Y Z S T A N LIKERO-VODOCHNY ZAVOD: Creditors' Meeting Slated for May 6 SAVITAR OJSC: Creditors' Meeting Slated for May 6 N E T H E R L A N D S CHEMTURA CORP: Posts US$21 Mil. Net Loss in 2008 First Quarter CHEMTURA CORP: Annual Stockholders Meeting Scheduled for May 14 CHEMTURA CORP: Inks Pact with Baerlocher on Heat Stabilizers SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter R U S S I A EAST-FISH: Court Starts Bankruptcy Supervision Procedure NADEZHDA LLC: Creditors Must File Claims by May 26 NOVOLIPETSK STEEL: To Invest US$6.1 Bln to Double Output by 2015 SAMARSKIY REGIONAL: Creditors Must File Claims by May 26 SERVICE BUILDING: St. Petersburg Bankruptcy Hearing Set Aug. 12 TIMBER-CENTRE: St. Petersburg Bankruptcy Hearing Set August 5 S E R B I A & M O N T E N E G R O FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant S W I T Z E R L A N D BS FISCHHANDEL: Creditors' Liquidation Claims Due by May 11 CLOROX CO: March 31 Balance Sheet Upside-Down by US$472 Million EURODOCTORS JSC: Creditors' Liquidation Claims Due by May 11 GISAG INFORMATIK: Creditors' Liquidation Claims Due by May 11 HOTEL PLAZA: Creditors' Liquidation Claims Due by May 14 HYSTERICAL WEB: Creditors' Liquidation Claims Due by May 14 MAMMUT ENERGY: Zug Court Starts Bankruptcy Proceedings OPATAX JSC: Zug Court Starts Bankruptcy Proceedings R & R PULVER: Creditors' Liquidation Claims Due by May 11 U K R A I N E COMPLIMENT LLC: Creditors Must File Claims by May 14 DESTROERS LLC: Proofs of Claim Deadline Set May 14 EAST-TRADE LLC: Creditors Must File Claims by May 14 GROT POSEIDON: Creditors Must File Claims by May 14 LUGANSK CRANKSHAFTS: Creditors Must File Claims by May 14 MEDIA SET: Creditors Must File Claims by May 14 SK-HOLDING LLC: Proofs of Claim Deadline Set May 14 SOYUZ-PERSPECTIVE LLC: Proofs of Claim Deadline Set May 14 TLC-SERVICE LLC: Creditors Must File Claims by May 14 UKRPROTECTION LLC: Creditors Must File Claims by May 14 U N I T E D K I N G D O M BEACON BUILDING: Brings In Liquidators from Tenon Recovery BEACON PLUMBING: Calls In Liquidators from Tenon Recovery BRITISH AIRWAYS: Eyes Transatlantic Tie-Up With Two US Carriers ELEPHANT LOANS LTD: Liquidator Reveals Redundancy of Staff CLARIS LTD III: Moody's May Further Cut Ba1 Rating After Review CLARIS LTD VII: Moody's May Further Cut B3 Rating After Review CLARIS LTD X: Moody's May Further Cut Junk Rating After Review DEUTSCHE BANK: Moody's Cuts Ratings on 11 Credit Default Swaps GLOBAL TRADER: Creditors Names Grant Thornton as Administrator KMC INT'L: Managing Director Confirms Administration Proceedings METRONET RAIL: Inks GBP10.4 Mln Re-Signaling Deal with Thales NON - WOVEN LTD: Colin Nicholls Leads Liquidation Procedure SCOTTISH MUTUAL: S&P Cuts Junior Subordinated Debt Rating to BB+ SCOTTISH RE: S&P Says Ratings Remaon on Negative CreditWatch STUDIO AMBIENCE: Claims Filing Period Ends May 27 TELCOGAMES: Cash Flow Problems Prompt Administration Proceeding * ICAEW Focuses on Trust in Insolvency Profession * BOOK REVIEW: Dangerous Pursuits - Mergers and Acquisitions in the Age of Wall Street ********* ============= A U S T R I A ============= AZEGO TECHNOLOGY: Claims Registration Period Ends May 27 -------------------------------------------------------- Creditors owed money by LLC Azego Technology Services (AT) (FN 258779h) have until May 27, 2008, to file written proofs of claim to court-appointed estate administrator Georg Freimueller at: Dr. Georg Freimueller Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on June 10, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 17, 2008 (Bankr. Case No. 6 S 37/08w). ILSE UND HERMANN: Claims Registration Period Ends May 28 -------------------------------------------------------- Creditors owed money by LLC Ilse und Hermann Scharinger (FN 121329a) have until May 28, 2008, to file written proofs of claim to court-appointed estate administrator Robert Schertler at: Dr. Robert Schertler Salzburgerstr. 4 5280 Braunau am Inn Austria Tel: 07722 / 81188 Fax: 07722 / 81188-20 E-mail: kanzlei-paischer-schertler@utanet.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:00 a.m. on June 4, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Ried im Innkreis Hall 101 First Floor Ried im Innkreis Austria Headquartered in Ostermiething, Austria, the Debtor declared bankruptcy on April 17, 2008 (Bankr. Case No. 17 S 18/08s). KARIN GROEGER: Claims Registration Period Ends June 10 ------------------------------------------------------ Creditors owed money by KEG Karin Groeger (FN 263626k) have until June 10, 2008, to file written proofs of claim to court- appointed estate administrator Katharina Widhalm-Budak at: Dr. Katharina Widhalm-Budak c/o Dr. Andrea Simma Schulerstrasse 18 1010 Vienna Austria Tel: 513 10 37 Fax: 513 10 37 22 E-mail: widhalm-budak@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on June 24, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 17, 2008 (Bankr. Case No. 4 S 52/08m). Andrea Simma represents Dr. Widhalm-Budak in the bankruptcy proceedings. LIDZO BAU: Claims Registration Period Ends June 2 ------------------------------------------------- Creditors owed money by LLC LIDZO Bau (FN 273759m) have until June 2, 2008, to file written proofs of claim to court-appointed estate administrator Karl Schirl at: Dr. Karl Schirl c/o Mag. Markus Siebinger Krugerstrasse 17/3 1010 Vienna Austria Tel: 513 22 31 Fax: 513 22 31-1 E-mail: dr.karl.schirl@der-rechtsanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on June 16, 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 17, 2008 (Bankr. Case No. 3 S 40/08i). Markus Siebinger represents Dr. Schirl in the bankruptcy proceedings. PICOMED MEDIZINTECHNIK: Claims Registration Period Ends May 3 ------------------------------------------------------------- Creditors owed money by LLC PICOMED Medizintechnik (FN 284412d ) have until May 3, 2008, to file written proofs of claim to court-appointed estate administrator Gerhard Mueller at: Dr. Gerhard Mueller Maria-Theresien-Strasse 8 6890 Lustenau Austria Tel: 05577/88644 Fax: 05577/88644-3 E-mail: kanzlei@grabher-mueller.jet2web.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Feldkirch Room 45 First Floor Feldkirch Austria Headquartered in Lustenau, Austria, the Debtor declared bankruptcy on April 18, 2008 (Bankr. Case No. 14 S 12/08i). SLIWON HANDEL: Claims Registration Period Ends May 27 ----------------------------------------------------- Creditors owed money by LLC Sliwon Handel (FN 294311k) have until May 27, 2008, to file written proofs of claim to court- appointed estate administrator Werner Stanek at: Dr. Werner Stanek Wollzeile 33/20 1010 Vienna Austria Tel: 512 29 02 Fax: 512 29 02 30 E-mail: werner-stanek@chello.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on June 10, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 17, 2008 (Bankr. Case No. 6 S 56/08i). =========== F R A N C E =========== ALCATEL-LUCENT SA: Posts EUR181 Million Loss for 1st Qtr 2008 ------------------------------------------------------------- Alcatel-Lucent S.A. posted EUR181 million in net losses on EUR3.86 billion in net revenues for the first quarter ended March 31, 2008, compared with EUR8 million in net losses on EUR3.88 billion in net revenues for the same period in 2007. The company posted EUR95 million in adjusted net losses for first quarter 2008, compared with EUR199 million in adjusted net profit for the same period in 2007. "Considering the impact of the Euro/USD adverse shift, our revenue performance was in line with our expectations, with a year-over-year growth of 6.3%and a sequential decline in the mid point of our typical seasonal pattern of �20% to �25%," Patricia Russo, CEO, said. " "We achieved significant progress in our adjusted gross margin, up 3.8 points quarter-over-quarter to 36.2%, in spite of significantly lower volumes," Ms. Russo continued. "This is attributable in part to one-time gains and a favorable mix, but also reflects an improved ability to retain the benefits of our product costs reduction programs. Additionally, we reduced our operating expenses by 12% year-over-year, excluding the one time capital gain." 2008 Forecast With approximately half of its revenue in US dollar or dollar- linked currencies, Alcatel-Lucent expects its full year 2008 revenue, expressed in current rate, to be down in the low to mid-single digit range. This is due primarily to the significant deterioration in the Euro/US$ exchange rate and, to a much lesser extent, the potential for lower capital spending by a few customers. Against this backdrop, Alcatel-Lucent will continue to execute against its three-year plan, with an aim to improve gross margin, reduce operating expenses and turn around underperforming businesses. * for full year 2008, the company believes it can achieve an adjusted gross margin in the mid thirties and confirms its target to achieve a low to mid single-digit adjusted operating margin in percentage of revenues; and * for the second quarter 2008, Alcatel-Lucent expects revenues to increase in the mid single-digit range sequentially. Balance Sheet and Pension Status The net debt position was EUR30 million as of March 31, 2008, compared with net cash position of EUR271 million as of Dec. 31, 2007. It should be noted that the amount of accounts receivable sold during the quarter was reduced by Euro 217 million sequentially. The funded status of pensions and other post retirement benefits (OPEB) amounted to EUR2.609 billion as of March 31, 2008, down from EUR2.806 billion as of Dec. 31, 2007. As of March 31, 2008, the global asset allocation of the group�s funds was 20% in equity securities, 60% in bonds and 20%in alternatives (i.e., real estate, private equity and hedge funds), unchanged from year-end 2007. 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 on April 4, 2008, Moody's Investors Service affirmed the ratings for Alcatel-Lucent, which include a Ba3 corporate family rating for Alcatel-Lucent and a Not-Prime for its short term debt, as well as Ba3 ratings for senior and B2 ratings for subordinated debt that was issued originally by the predecessor companies Alcatel S.A. and Lucent Technologies, Inc. Moody's said the outlook for the ratings is Negative. 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. ============= G E R M A N Y ============= DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31 --------------------------------------------------------------- The Duerr Group AG posted EUR4.5 million in net profit on EUR356.2 million in net revenues for the first quarter ended March 31, 2008, compared with EUR2.1 million in net losses on EUR304.1 billion in net revenues for the same period in 2007. "We have taken a first important step towards raising the EBIT margin to 5% in 2008 as announced," CEO Ralf Dieter said. "Duerr aims to increase sales revenues by up to 10%." Net financial debt was reduced to EUR57.2 million from EUR60.7 million. Orders on hand were up 20% to EUR1.2 billion. The Group�s gross margin rose by 0.4 percentage points to 17.0%. Besides higher capacity utilization, this also reflects the continuous improvement of internal processes. At 3.5%, the increase in administrative and selling expenses was held well below the growth in sales revenues. Positive Outlook Unchanged For 2008, Duerr expects incoming orders on a level with last year provided the general economic conditions and currency situation do not take a decisive turn for the worse. Sales revenues will probably increase by up to 10%. Duerr forecasts a further strong improvement in earnings, to which a higher gross margin and the earnings improvement targeted in final assembly conveyor systems are expected to contribute. As a result of the tax reform the effective tax rate should not be more than 30% (2007: 39%) which will additionally boost earnings. Duerr aims to hold cash flow at least at the 2007 level. The company therefore expects further improvements in net financial debt and liquidity. About Duerr Headquartered in Stuttgard, Germany, The Duerr Group -- http://www.durr.com/en/-- supplies products, systems, and services for automobile manufacturing. Duerr designs and builds paint shops and final assembly plants. The Duerr Group also operates in Czech Republic, France, U.K., Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey, Australia, Brazil, China, India, Japan, Mexico, South Africa, South Korea and the U.S.A. * * * As reported in the TCR-Europe on March 3, 2008, Standard & Poor's Ratings Services revised its outlook to positive from stable on Duerr AG. S&P also affirmed its 'B' long-term corporate credit rating on the group. Duerr AG also carries B2 Corporate Family, B2 Probability of Default and Caa1 Senior Subordinate ratings from Moody's Investor Service. Moody's said the outlook is stable. HANSE-MASSIVBAU: Claims Registration Period Ends May 22 ------------------------------------------------------- Creditors of Hanse-Massivbau GmbH have until May 22, 2008, to register their claims with court-appointed insolvency manager Wolfgang Weidemann. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.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 Neubrandenburg Hall 1 Fr.-Engels-Ring 15-18 Neubrandenburg 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: Wolfgang Weidemann Wendenstrasse 4 20097 Hamburg Germany The District Court of Neubrandenburg opened bankruptcy proceedings against Hanse-Massivbau GmbH on March 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hanse-Massivbau GmbH Schillerstr. 15 17109 Demmin Germany HEIDE-FLOWER GMBH: Claims Registration Ends May 23 -------------------------------------------------- Creditors of Heide-Flower GmbH have until May 23, 2008 to register their claims with court-appointed insolvency manager Henning Samisch. Creditors and other interested parties are encouraged to attend the meeting at 11:20 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 Uelzen Hall 1 Main Building Fritz-Roever-Str 5 29525 Uelzen 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: Henning Samisch Muehlenkamp 59 22303 Hamburg Tel: 040/650390 Fax: 040/65039199 The District Court of Uelzen opened bankruptcy proceedings against Heide-Flower GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heide-Flower GmbH Wulhop 3 A 29525 Uelzen Germany Attn: Michael Ohlde, Manager Meyerstrasse 5 29556 Suderburg Germany HEIZUNGSMARKT -VOM VENTIL: Claims Registration Ends May 23 ---------------------------------------------------------- Creditors of Heizungsmarkt -vom Ventil bis zur kompletten Anlage- GmbH have until May 23, 2008 to register their claims with court-appointed insolvency manager Wilhelm Salim Khan Durani. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Kiel Hall 17 Deliusstr. 22 Kiel Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Wilhelm Salim Khan Durani Sell Speicher/Wall 55 24103 Kiel Germany Tel: 0431/600 530 Fax: 0431/6005360 The District Court of Kiel opened bankruptcy proceedings against Heizungsmarkt -vom Ventil bis zur kompletten Anlage- GmbH on April 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heizungsmarkt -vom Ventil bis zur kompletten Anlage- GmbH Attn: Tim Rehder, Manager Diedrichstr. 31 24143 Kiel Germany JANKE GMBH: Claims Registration Ends May 23 ------------------------------------------- Creditors of Janke GmbH have until May 23, 2008 to register their claims with court-appointed insolvency manager Dr. Thomas Dithmar. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 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: Dr. Thomas Dithmar Barbarossahof 3 99092 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Janke GmbH on March 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Janke GmbH Attn: Anton Gericks, Manager Lange Strasse 62 99610 Soemmerda Germany KOETHE - HOLZMARKT: Claims Registration Period Ends May 20 ---------------------------------------------------------- Creditors of KOETHE - Holzmarkt GmbH have until May 20, 2008, to register their claims with court-appointed insolvency manager Rolf Rombach. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 KOETHE - Holzmarkt GmbH on April 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KOETHE - Holzmarkt GmbH Bergstrasse 10 99192 Neudietendorf Germany METALLBAU EISENACH: Claims Registration Ends May 23 --------------------------------------------------- Creditors of Metallbau Eisenach GmbH have until May 23, 2008 to register their claims with court-appointed insolvency manager Andreas Schafft. Creditors and other interested parties are encouraged to attend the meeting at 12:20 p.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 Meiningen Meeting Hall A 0105 Lindenallee 15 98617 Meiningen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Schafft Willy-Brandt-Platz 1 99084 Erfurt Germany The District Court of Meiningen opened bankruptcy proceedings against Metallbau Eisenach GmbH on March 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Metallbau Eisenach GmbH Eichrodter Weg 150 99817 Eisenach Germany PETER JORDAN: Claims Registration Ends May 23 --------------------------------------------- Creditors of Peter Jordan GmbH have until May 23, 2008 to register their claims with court-appointed insolvency manager Dr. Thomas Lanio. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on June 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Offenbach am Main Hall 166N First Floor Kaiserstrasse 16-18 63065 Offenbach am Main 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. Thomas Lanio Waldstrasse 45, D 63065 Offenbach am Main Germany Tel: 069/8007490 Fax: 069/80074990 The District Court of Offenbach am Main opened bankruptcy proceedings against Peter Jordan GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Peter Jordan GmbH Heinrich-Krumm-Str. 5 63073 Offenbach am Main Germany PIN MAIL: Claims Registration Period Ends May 22 ------------------------------------------------ Creditors of PIN Mail GmbH have until May 22, 2008, to register their claims with court-appointed insolvency manager Dr. Andreas Ringstmeier. Creditors and other interested parties are encouraged to attend the meeting at noon on June 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Andreas Ringstmeier Magnusstr. 13 50672 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against PIN Mail GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PIN Mail GmbH An den Pappeln 2 99100 Alach Germany PIN MAIL 06: Claims Registration Period Ends May 22 --------------------------------------------------- Creditors of PIN Mail 06 GmbH have until May 22, 2008, to register their claims with court-appointed insolvency manager Dr. Andreas Ringstmeier. Creditors and other interested parties are encouraged to attend the meeting at 11:15 a.m. on June 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Andreas Ringstmeier Magnusstr. 13 50672 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against PIN Mail 06 GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PIN Mail 06 GmbH Alt-Moabit 91 10559 Berlin Germany PRONTO MODA: Claims Registration Period Ends May 20 --------------------------------------------------- Creditors of Pronto Moda GmbH & Co. Bekleidungs KG have until May 20, 2008, to register their claims with court-appointed insolvency manager Ulrich Bert. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 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 Darmstadt Hall 4.311 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt 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: Ulrich Bert Birkenweg 24 64295 Darmstadt Germany Tel: 06151/66 72 9-0 Fax: 06151/66 72 9-20 E-mail: darmstadt@ltb-anwaelte.de The District Court of Darmstadt opened bankruptcy proceedings against Pronto Moda GmbH & Co. Bekleidungs KG on April 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pronto Moda GmbH & Co. Bekleidungs KG Lebrechtstrasse 43 64846 Gross-Zimmern Germany RAD GESELLSCHAFT: Claims Registration Period Ends May 20 -------------------------------------------------------- Creditors of RAD Gesellschaft fuer Recycling, Abriss und Dienstleistungen mbH have until May 20, 2008, to register their claims with court-appointed insolvency manager Arne Brumm. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on June 26, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall 14 Justizzentrum Magdeburg Breiter Weg 203-206 39104 Magdeburg 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: Arne Brumm Koenigstrasse 17 39116 Magdeburg Germany Tel: 0391/ 5971240 Fax: 0391/ 5971241 The District Court of Magdeburg opened bankruptcy proceedings against RAD Gesellschaft fuer Recycling, Abriss und Dienstleistungen mbH on April 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RAD Gesellschaft fuer Recycling, Abriss und Dienstleistungen mbH Gewerbegebiet Neustassfurt 39418 Stassfurt Germany SCHWABAU BAUUNTERNEHMUNG: Claims Registration Period Ends May 20 ---------------------------------------------------------------- Creditors of SCHWABAU Bauunternehmung GmbH have until May 20, 2008, to register their claims with court-appointed insolvency manager Joachim Exner. Creditors and other interested parties are encouraged to attend the meeting at 1:45 p.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 Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Exner Ludwigstr. 50 95028 Hof Germany Tel: 09281/8331080 Fax: 09281/8331089 The District Court of Hof opened bankruptcy proceedings against SCHWABAU Bauunternehmung GmbH on April 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SCHWABAU Bauunternehmung GmbH Schafereiweg 3 95126 Schwarzenbach/Saale Germany TALISMAN-1 FINANCE: Fitch Upgrades Ratings on Five Tranches ----------------------------------------------------------- Fitch Ratings upgraded five tranches of Talisman-1 Finance Plc's commercial mortgage-backed notes due 2012, and affirmed the rest as: -- EUR64.7m Class A (XS0220377906) affirmed at 'AAA'; Outlook Stable -- EUR0.05m Class X (XS0220378201) affirmed at 'AAA'; Outlook Stable -- EUR28.6m Class B (XS0220378896) upgraded to 'AAA' from 'AA'; Outlook remains Stable -- EUR28.6m Class C (XS0220379274) upgraded to 'AA' from 'A'; Outlook remains Stable -- EUR27.5m Class D (XS0220379514) upgraded to 'BBB+' from 'BBB'; Outlook remains Stable -- EUR3.1m Class E (XS0220379787) upgraded to 'BBB' from 'BBB-' (BBB minus); Outlook remains Stable -- EUR5.3m Class F (XS0220380017) upgraded to 'BB+' from 'BB'; Outlook remains Stable -- EUR7m Class G (XS0220380363) affirmed at 'BB'; Outlook Stable The rating actions follow a satisfactory review of this transaction. The upgrades are predominantly attributed to the full prepayment of the EUR216.5m VVG loan in April 2008. This loan comprised 37% of the remaining transaction, and was not performing to expectations. The prepayment of this loan has improved both the weighted average interest coverage ratio (WA ICR) and debt service coverage ratio (WA DSCR) of the remaining pool, as well as significantly increasing credit enhancement and lowering advance rates (e.g. 64.18% advance rate on the class G, down from 72.68% at closing). The two remaining loans have a combined principal balance of EUR164.9m, secured on four properties (original number of properties within the transaction was 113) worth EUR256.9m, resulting in a WA loan-to-value (LTV) of 64.2%. By value, there are now 96% retail properties and 4% multi-family, compared to 23.4% and 64.3%, respectively at closing. The latest prepayment has left properties only in Berlin, Hamburg and Nordrhein- Westfalen. With regards to the Alpha loan, which represents 12.14% of the remaining balance, as of April 2008 the ICR remained unchanged from January 2008 at 1.89x and the DSCR improved to 1.33x from 1.24x, well above the covenants of 1.25x and 1.00x respectively. The LTV improved to 74.51% from 78.29% at closing. The vacancy rate is 13%, an increase from 7.2% in January 2008, the result of a number of lease terminations in Munster. The Prime loan, representing 87.86% of the remaining pool, has a vacancy rate of 2.6% for its two properties in Hamburg and Cologne. The ICR increased in the last quarter to 1.69x from 1.62x in January 2008, primarily due to an increase in step-up rent: the Hamburg property had a rental uplift of EUR46,190 and Cologne EUR29,875. The securitised LTV has remained at 62.6% since closing. The majority of the leases expire in 2010, while 38% expire after 2012. No tenant accounts for more than 6% of the total rent. The exit debt yield for the Alpha loan is 10.13% by net operating income and 9.83% for the Prime loan. TSAR 15 CDO: Fitch Junks Ratings on Series 223-227 Note Classes ---------------------------------------------------------------- Fitch Ratings downgraded all classes of Tsar 15 CDO Eirles Two Ltd. Series 223-227 and removed them from Rating Watch Negative. -- EUR27.5m Series 223 C-1 (XS0237935399) downgraded to 'CC' from 'BB+', removed from Rating Watch Negative -- EUR42.75m Series 224 C-2 (XS0238519382) downgraded to 'CC' from 'BB-' (BB minus), removed from Rating Watch Negative -- EUR26.125m Series 225 D-1 (XS0238519549) downgraded to 'CC' from 'B', removed from Rating Watch Negative -- EUR26.125m Series 226 D-2 (XS0238518574) downgraded to 'CC' from 'CCC', removed from Rating Watch Negative -- EUR25.5m Series 227 E (XS0238519036) downgraded to 'C' from 'CC', removed from Rating Watch Negative Tsar 15 is a synthetic collateralised debt obligation (CDO) referencing a USD3.27bn portfolio of mainly U.S. structured finance assets. At close, proceeds from the issuance of the EUR148m Eirles Series 223-227 notes were used to collateralise five credit default swaps (CDS) between the issuer and Deutsche Bank AG (Deutsche, rated 'AA-'(AA minus)/Outlook Stable/'F1+'), the CDS counterparty. The reference portfolio is selected and actively monitored by Winchester Capital, a subsidiary of Deutsche Bank AG. Fitch's rating action reflects higher loss expectations due to greater-than-expected collateral deterioration in Tsar 15's portfolio. The negative credit migration is primarily attributable to the rapid credit deterioration in subprime residential mortgage-backed securities (RMBS) from the 2004, 2005, and 2006 vintages as well as exposure to US structured finance CDOs. The portfolio comprises U.S. subprime RMBS (21.4%), Alternative A (Alt-A) mortgage loans (10.3%), and U.S. diversified structured finance CDOs (25%). Subprime RMBS of the 2005, 2006, and 2007 vintages account for approximately 17.1%, 1.9%, and 0% of the portfolio, respectively. At the time of the rating action in November 2007, only 0.5% of the portfolio was rated 'CCC+' or below and only 2.6% of the portfolio was rated 'BB+' or below. As per the latest trustee report dated April 2008, 7.2% of the portfolio was rated 'CCC+' or below and 17.5% of the portfolio was rated 'BB+' or below. This compares to credit enhancement levels of 6.07%, 4.51%, 3.56%, 2.61%, 1.61% for series 223, 224, 225, 226 and 227, respectively. Q29 NETWORK: Claims Registration Period Ends May 22 --------------------------------------------------- Creditors of Q29 Network GmbH have until May 22, 2008, to register their claims with court-appointed insolvency manager Dr. Georg Bernsau. Creditors and other interested parties are encouraged to attend the meeting at 3:40 p.m. on June 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Koenigstein/Ts. Hall 106 A Burgweg 9 61462 Koenigstein/Ts. 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. Georg Bernsau Zeilweg 42D 60439 Frankfurt am Main Germany Tel: 069/963761-130 Fax: 069-963761-145 The District Court of Koenigstein/Ts. opened bankruptcy proceedings against Q29 Network GmbH on April 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Q29 Network GmbH Zum Quellenpark 29 65812 Bad Soden Germany THIELERT AIRCRAFT: Parent Names Marcel Kleiss as Chief Executive ---------------------------------------------------------------- Thielert AG, parent firm of Thielert Aircraft Engines GmbH, has appointed Marcel Kleiss as chief executive officer, Joseph Mapother writes for Bloomberg News. According to Bloomberg News, Mr. Kleiss, who leads Thielert Aircraft's executive board, filed for the opening of insolvency at the District Court of Chemnitz due to immediate illiquidity. Thielert AG also canceled its annual general shareholders' meeting and deferred the publication of its annual report. Headquartered in Lichtenstein, 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. ============= I R E L A N D ============= CLOVERIE PLC BRERA: Fitch Junks Ratings on Two Note Classes ----------------------------------------------------------- Fitch Ratings downgraded Cloverie Plc's Brera collateralised debt obligation I Series 64 Class A and Series 65 Class B secured floating-rate portfolio credit-linked notes due in December 2030 as: -- US$37,500,000 Series 64 Class A (ISIN: XS0206862277): downgraded to 'CC' from 'BB'. Class A notes are removed from Rating Watch Negative. -- USD50,000,000 Series 65 Class B (ISIN: XS0206861899): downgraded to 'C' from 'CC'. Cloverie Plc is a special purpose vehicle incorporated under the laws of Ireland. This transaction is a partially funded synthetic CDO referencing a substitutable portfolio of asset- backed securities obligations with a maximum notional amount of USD1.25bn. At close, proceeds from the issuance of the notes were used to collateralise mezzanine credit default swaps (CDS) between the issuer and Citigroup Global Markets Limited, the CDS counterparty (guaranteed by Citigroup Global Markets Holdings Inc., rated 'AA-' (AA minus)/'F1+'/Outlook Negative). Fitch's rating action reflects higher loss expectations due to greater-than-expected collateral deterioration in Cloverie Brera's reference portfolio. The negative credit migration is primarily attributable to the rapid credit deterioration in subprime residential mortgage-backed securities (RMBS) from the 2005 and 2006 vintages as well as exposure to US structured finance CDOs. The portfolio comprises U.S. subprime RMBS (14%), Alternative A (Alt-A) mortgage loans (11%), and U.S. diversified structured finance CDOs (12%). Subprime RMBS of the 2005 and 2006 vintages account for approximately 2% and 4% of the portfolio, respectively. Since Fitch's rating action in November 2007, non-IG assets in the portfolio have increased to 20% from 6% of the portfolio. Of these, assets rated at 'CCC+' or below have increased to 8.1% from 1.1% of the portfolio. This compares to credit enhancement levels of 8.2% for Series 64 Class A and 3.5% for Series 65 Class B. Further, approximately 10% of the reference portfolio is currently on Rating Watch Negative. CLOVERIE PLC-GHIBLI: Fitch Cuts Ratings on Two Note Classes ----------------------------------------------------------- Fitch Ratings downgraded Cloverie Plc-Ghibli CDO 1's floating- rate portfolio credit-linked notes due April 2030 as: -- EUR50m Series 2004-26 Class A (ISIN XS0191537389): downgraded to 'BB' from 'AA'. Class A notes remain on Rating Watch Negative. -- EUR50m Series 2004-27 Class B (ISIN XS0191536738): downgraded to 'CC' from 'BB'. Class B notes are removed from RWN. Cloverie Plc is a special purpose vehicle incorporated under the laws of Ireland. This transaction is a partially funded synthetic collateralised debt obligation referencing a substitutable portfolio of asset-backed securities obligations with a maximum notional amount of EUR1.25bn. At close, proceeds from the issuance of the notes were used to collateralise mezzanine credit default swaps between the issuer and Citigroup Global Markets Limited, the CDS counterparty (guaranteed by Citigroup Global Markets Holdings Inc., rated 'AA-' (AA minus)/'F1+'/Outlook Negative). Fitch's rating action reflects higher loss expectations due to greater-than-expected collateral deterioration in Cloverie Ghibli's reference portfolio. The negative credit migration is primarily attributable to the rapid credit deterioration in subprime residential mortgage-backed securities (RMBS) from the 2005 and 2006 vintages as well as exposure to US structured finance CDOs. The portfolio comprises U.S. subprime RMBS (19%), Alternative A (Alt-A) mortgage loans (12%), and U.S. diversified structured finance CDOs (12%). Subprime RMBS of the 2005 and 2006 vintages account for approximately 1% and 7% of the portfolio, respectively. Since Fitch's rating action in November 2007, non-IG assets in the portfolio have increased to 14% from 7% of the portfolio. Of these, assets rated at 'CCC+' or below have increased to 7.2% from 1.8% of the portfolio. This compares to credit enhancement levels of 12.6% for Series 2004-26 Class A and 5.4% for Series 2004-27 Class B. The RWN status for the Series 2004-26 Class A notes reflects the continued credit deterioration in subprime RMBS and growing concerns with the performance of Alt-A mortgage loans. Further, approximately 10% of the reference portfolio is currently on RWN. The RWN on the notes will be resolved once the RWN status of the 10 reference entities in the portfolio is resolved. COLTRANE CLO: Loans Portfolio Sold at April 29 Auction ------------------------------------------------------ The auction of the Coltrane CLO Plc portfolio of leveraged loans took place on April 29, 2008. It is the first time that an auction of a CLO in receivership has taken place. Richard Heis and Ray Jackson of KPMG were appointed joint receivers of the Dublin, Ireland based company on Feb. 27, 2008. The company had gone into receivership when the values of its assets had fallen which led to the triggering of default clauses. The entire portfolio of assets with a face value of EUR394.6 million, was sold to nine separate investmentbanks and their clients, at an average price of EUR0.867. The auction was conducted by Cairn Capitalon behalf of the joint receivers and invitees were able to bid for the whole or part of the portfolio. "This was a complex auction, with a number ofspecial features in order to encourage competitive bids on all assets." Joint receiver and KPMG partner, Richard Heis said. "We are very pleased with the outcome and the fact that every asset attracted a bid and also that the vast majority of assets attracted more than one bid." Lenders who submitted a winning bid on the category B assets earned themselves the "last look" at category A assets, this linking mechanism helped to ensure that demand was maintained for the lesser-known assets. The funds raised from the auction will provide the return to the existing loan note holders, according to their respective tranches. "We are delighted that the auction process worked so well. It attracted a high level of interest in all assets, even some of the less well known or challenged names," Andrew Burke of Cairn Capital commented. "The success of the asset realisation process for Coltrane demonstrates that receivership is a credible alternative to restructuring in some situations." Coltrane was set up as a market-value CLO with a face value of EUR498 million, consisting of notes sold to a number of institutional investors. EIRLES FOUR: Moody's May Further Cut Junk Ratings After Review -------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade six classes of notes issued by Eirles Four Limited, three classes of notes issued by Eirles Two Limited and eleven credit default swaps entered into by Deutsche Bank AG referencing the TSAR_05 transaction. These credit-linked notes issued by the Eirles program are repacks of various credit default swaps transacted by Deutsche Bank AG, London Branch. This CDO transaction contains subprime RMBS bonds and ABS CDOs, particularly of the 2004, 2005 and 2006 vintages. All of these notes and credit default swaps reference the same TSAR 05 portfolio. Moody's announced on Feb. 4, 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: Deutsche Bank AG, London Branch - TSAR_05: (1) The US$63,000,000 Class C Swap -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa1 (2) The US$63,000,000 Class D Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$42,000,000 Class E Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$21,000,000 Class F Swap -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 Deutsche Bank AG, London Branch - Tsar_05 Credit Default Swap: (1) The US$63,000,000 Class D(2) Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (2) The US$63,000,000 Class D(3) Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$42,000,000 Class E(2) Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$21,000,000 Class F(2) Swap -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 Deutsche Bank AG, London Branch - TSAR_05 Swaps 2005 (Class B to E): (1) The US$7,160,000 TSAR_05 (DB) Class C Portfolio Credit Default Swap -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa1 (2) The US$7,160,000 TSAR_05 (DB) Class D Portfolio Credit Default Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$4,770,000 TSAR_05 (DB) Class E Portfolio Credit Default Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 Eirles Four Limited: (1) The US$126,000,000 Series 9 Floating Rate Secured Notes -- Current Rating: Baa1, on review for downgrade -- Prior Rating: Aa3 (2) The US$15,000,000 Series 11 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (3) The US$5,000,000 Series 15 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$5,000,000 Series 16 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 (5) The US$5,000,000 Series 54 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 (6) The EUR 10,000,000 Series 82 Floating and Variable Rate Secured Notes -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 Eirles Two Limited: (1) The JPY1000,000,000 Series 81 Floating and Variable Rate Secured Notes -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (2) The JPY500,000,000 Series 82 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (3) The US$15,000,000 Series 85 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 EIRLES TWO: Moody's May Further Cut Junk Ratings After Review ------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade six classes of notes issued by Eirles Four Limited, three classes of notes issued by Eirles Two Limited and eleven credit default swaps entered into by Deutsche Bank AG referencing the TSAR_05 transaction. These credit-linked notes issued by the Eirles program are repacks of various credit default swaps transacted by Deutsche Bank AG, London Branch. This CDO transaction contains subprime RMBS bonds and ABS CDOs, particularly of the 2004, 2005 and 2006 vintages. All of these notes and credit default swaps reference the same TSAR 05 portfolio. Moody's announced on Feb. 4, 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: Deutsche Bank AG, London Branch - TSAR_05: (1) The US$63,000,000 Class C Swap -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa1 (2) The US$63,000,000 Class D Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$42,000,000 Class E Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$21,000,000 Class F Swap -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 Deutsche Bank AG, London Branch - Tsar_05 Credit Default Swap: (1) The US$63,000,000 Class D(2) Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (2) The US$63,000,000 Class D(3) Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$42,000,000 Class E(2) Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$21,000,000 Class F(2) Swap -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 Deutsche Bank AG, London Branch - TSAR_05 Swaps 2005 (Class B to E): (1) The US$7,160,000 TSAR_05 (DB) Class C Portfolio Credit Default Swap -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa1 (2) The US$7,160,000 TSAR_05 (DB) Class D Portfolio Credit Default Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$4,770,000 TSAR_05 (DB) Class E Portfolio Credit Default Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 Eirles Four Limited: (1) The US$126,000,000 Series 9 Floating Rate Secured Notes -- Current Rating: Baa1, on review for downgrade -- Prior Rating: Aa3 (2) The US$15,000,000 Series 11 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (3) The US$5,000,000 Series 15 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$5,000,000 Series 16 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 (5) The US$5,000,000 Series 54 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 (6) The EUR 10,000,000 Series 82 Floating and Variable Rate Secured Notes -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 Eirles Two Limited: (1) The JPY1000,000,000 Series 81 Floating and Variable Rate Secured Notes -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (2) The JPY500,000,000 Series 82 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (3) The US$15,000,000 Series 85 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 MAGNOLIA FINANCE: Fitch Cuts Rating on US$14.875MM Notes to 'CC' ---------------------------------------------------------------- Fitch Ratings downgraded Magnolia Finance V Plc's US$14.875m Series 2006-4 leveraged super senior credit-linked notes due 2048 to 'CC' from 'CCC'. The notes have been removed from Rating Watch Negative. Magnolia Finance is a special purpose vehicle incorporated under the laws of Ireland. The vehicle has entered into a leveraged super senior transaction with Credit Suisse International and invested the note issuance proceeds in highly rated securities. The reference portfolio consists of structured finance collateralised debt obligations. If the weighted average credit rating of the reference obligations breach pre-specified trigger levels within a specified period, investors have the option to unwind the trade or de-leverage their position by posting further principal. The downgrade reflects the increased probability of default of US structured finance CDOs within Magnolia Finance's portfolio due to worsening mortgage performance. Of the portfolio, 13.6% - all SF CDOs - is currently on RWN by Fitch or one or two other Nationally Recognised Statistical Rating Organisations (NRSRO). Currently, the weighted average rating factor of 12.54 (equivalent to 'BB+'/'BB') is still below the trigger of 13.85 (equivalent to 'BB'/'BB-'). In the calculation provided by the transaction's documentation, the ratings for the SF CDOs on RWN are notched one level down from their current ratings. However, Fitch believes that when the RWNs of SF CDOs are resolved, the ratings are likely to be downgraded by more than one notch. Fitch therefore subjected the eight SF CDOs currently on RWN to different downgrade stresses to judge the impact on the WARF. In the agency's opinion, downgrades by more than one notch in the assets that are on RWN to the lowest rating of all three NRSROs would cause the trigger to breach. The ratings address the payment of interest and principal according to the documentation terms, by the scheduled maturity date, as well as the risk of mark-to-market losses due to an early termination following an unwind trigger event. Under the documentation, the interest payment (including the LIBOR component) may be reduced under certain circumstances, such as a downgrade to 'AA' or below of the charged asset. ========= I T A L Y ========= THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday ------------------------------------------------------ Thermadyne Holdings Corp. will hold its Annual Meeting of Stockholders at 10 a.m., Central Daylight Savings Time, on Tuesday, May 6, 2008, Chairman and Chief Executive Officer Paul D. Melnuk disclosed in a regulatory filing. The meeting will be held at the company's corporate headquarters at 16052 Swingley Ridge Road, Suite 300 in St. Louis, Missouri. At the meeting, the stockholders will be asked to: (1) elect a board of directors; (2) approve the Amended and Restated 2004 Stock Incentive Plan; (3) ratify the appointment of KPMG LLP as our independent registered public accountants for the year ending Dec. 31, 2008; and (4) transact any other business properly presented at the meeting. Mark A. McColl, Interim General Counsel and Corporate Secretary, added that only stockholders of record at the close of business on March 10, 2008, will be allowed to vote at the meeting. About Thermadyne Headquartered in St. Louis, Missouri, Thermadyne Holdings Corp. (NASDAQ: THMD) -- http://www.Thermadyne.com/-- manufactures and markets metal cutting and welding products and accessories under a variety of leading premium brand names including Victor(R), Tweco(R) / Arcair(R), Thermal Dynamics(R), Thermal Arc(R), Stoody(R), TurboTorch(R), Firepower(R) and Cigweld(R). Thermadyne has subsidiaries outside the United States which inlucdes, among others, Australia, Philippines, Malaysia, Indonesia, England, Italy, Japan, Mexico and Brazil. THERMADYNE HOLDINGS: S&P Lifts Corporate Credit Rating to 'B-' -------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Thermadyne Holdings Corp. to 'B-' from 'CCC+'. At the same time, S&P raised the ratings on the subordinated notes to 'CCC' from 'CCC-'. "This action results from the improved performance at the company and from adequate cash and availability on its credit facility," said Standard & Poor's credit analyst John Sico. S&P's previous concerns regarding material weaknesses that had caused delays in Thermadyne's financial reporting have moderated as the company has taken steps to alleviate this issue. The company is current on its filings with the SEC. The outlook is positive. The ratings on Thermadyne reflect the company's aggressive financial profile, weak but improving cash flow protection, and still somewhat limited financial flexibility. Thermadyne's business risk profile is weak because of its participation in the large, fragmented, intensely competitive, and cyclical global welding-equipment industry. Thermadyne's current operating and financial performance reflect improving cost controls and inventory levels, and somewhat better product- pricing. The company has invested heavily in working capital to fund seasonal business needs. It has exposure to raw-material prices -- namely for copper, brass, and steel -- which has hurt its operating performance. Thermadyne has been addressing these issues and is working to alleviate concerns regarding the effectiveness of internal control over financial reporting. S&P could raise the ratings one notch in the near term if the company continues to generate free cash flow to reduce debt. The ratings do not incorporate any acquisitions or share repurchases. Conversely, S&P could revise the outlook to negative or lower the ratings if market conditions deteriorate and Thermadyne's performance deteriorates. As of Dec. 31, 2007, Thermadyne still had a material weakness in its financial disclosure controls and procedures. However, the company is making progress toward resolving this weakness. =================== K Y R G Y Z S T A N =================== LIKERO-VODOCHNY ZAVOD: Creditors' Meeting Slated for May 6 ---------------------------------------------------------- Creditors of State JSC Bishkeksky Alcoholic Beverage Plant Likero-Vodochny Zavod will convene at 10:00 a.m. on May 6, 2008 at: JSC Likero-Vodochny Zavod Sovetskaya Str. 220 Bishkek Kyrgyzstan The meeting will discuss: -- the temporary insolvency process and the course of court examination; and -- consideration and approval of the estimated cost of the temporary insolvency procedure. The Inter-District Court of Bishkek for Economic Issues declared State JSC Bishkeksky Alcoholic Beverage Plant Likero-Vodochny Zavod (Bankr. Case #AB-177/06 ED) on March 27, 2008. Subsequently, bankruptcy proceedings were introduced at the company. Urmat Dushembaev has been appointed temporary insolvency manager of the company. Creditors must submit written proofs of claim and be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. Inquiries can be addressed to (+996 312) 66-51-94, 66-52-64. SAVITAR OJSC: Creditors' Meeting Slated for May 6 ------------------------------------------------- Creditors of OJSC Savitar will convene at 11:00 a.m. on May 6, 2008 at: OJSC Savitar Kollektivnaya Str. 16 Bishkek Kyrgyzstan OJSC Savitar declared insolvency on April 14, 2008. Subsequently, bankruptcy proceedings were introduced at the company. Beishenbek Tynaliev has been appointed temporary insolvency manager of the company. Creditors must submit written proofs of claim and be registered registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. Inquiries can be addressed to (0-772) 66-15-05. ===================== N E T H E R L A N D S ===================== CHEMTURA CORP: Posts US$21 Mil. Net Loss in 2008 First Quarter -------------------------------------------------------------- Chemtura Corporation reports a net loss of US$21 million, or US$0.09 per share, for the first quarter of 2008 and net earnings on a managed basis of US$23 million, or US$0.10 per share. �Our focus in the first quarter has been on execution. Performance was in line with our expectations and we delivered on cost reduction. We did a better job in managing the continuing inflation in raw material costs and we completed a number of our portfolio realignment projects,� said Robert L. Wood, chairman and CEO. �We saw the benefit of the diversity in our portfolio this quarter. Our Crop Protection business delivered a very strong quarter with operating income up 50% on 10% growth in sales revenues. This offset a flat year-on-year performance from our Performance Specialties business due to the timing of the recovery of raw material cost increases and higher manufacturing costs. Consumer Products was able to increase profitability despite sales 8% lower than last year. Operating profit for Polymer Additives was slightly down from last year but up 20% from the fourth quarter of 2007. �With our cost reduction actions taking hold, SGA&R was US$15 million or 13% lower than in the first quarter of 2007 at 11% of sales compared to 13% a year ago. Gross profit margins at 20%, down from 23% a year ago, reflect dramatic impact of raw material increases over the last year. While we have not yet recovered the ground lost last year, our businesses did a great job in recovering the raw material cost increases in the last quarter. �The first quarter saw a flurry of activity related to our portfolio realignment. We completed the divestiture of our oleochemicals business, reducing our exposure to the volatility in the cost of natural oils and fats, and closed the sale of our fluorine business. We acquired our partners� interests in our Baxenden urethanes chemicals joint venture and our antimony joint venture. Yesterday, we announced an agreement with Baerlocher for the manufacture of certain heat stabilizer products used in PVC applications. The oleochemicals, antimony and heat stabilizer actions all form part of our continuing efforts to improve the positioning and performance of our Polymer Additives business segment. The Baxenden purchase will permit us to integrate our global urethane chemicals activities and leverage our opportunities for growth. �The second quarter is historically our strongest quarter of the year and a quarter in which we expect to demonstrate earnings growth despite the uncertainties of the global economy. Our businesses remain focused on tightly managing the impacts of raw material cost increases and improving manufacturing operations.� First Quarter 2008 Business Segment Highlights Polymer Additives revenues decreased US$2 million compared with the first quarter of 2007. The divestiture of the oleochemicals and organic peroxides businesses reduced revenues by US$9 million and US$5 million, respectively. Additionally, sales volume decreased by US$12 million, primarily related to reduced sales of plastic antioxidants. These reductions were partially offset by favorable foreign currency translation of US$12 million and higher selling prices of US$12 million. Operating profit on a managed basis declined 4% or US$1 million compared with the first quarter of 2007, primarily due to the net impact of raw material and energy cost increases, which were partially offset by the benefit of higher selling prices and improved product mix. On a GAAP basis, operating profit declined 68% or US$17 million and included the impact of US$14 million of accelerated depreciation of property, plant and equipment and US$2 million of accelerated recognition of asset retirement obligations. Performance Specialties revenues increased 21% or US$44 million compared with the first quarter of 2007 but operating profit on a managed basis was unchanged from the first quarter of 2007. The revenue increase was primarily due to the acquisition of Kaufman of US$20 million, increased sales volumes of US$16 million, higher selling prices of US$4 million and favorable foreign currency translation of US$4 million. Operating profit benefited from the Kaufman acquisition, higher selling prices and improved product mix. However, these benefits were offset by increased raw material and energy costs, manufacturing and freight cost variances and the impact of the stronger Canadian dollar. On a GAAP basis, operating profit decreased 4% or US$1 million and included a US$1 million impact from the accelerated depreciation of property, plant and equipment. Consumer Products revenues declined 8% or US$9 million compared with the first quarter of 2007. The decline in sales is due to lower seasonal demand from the U.S. mass market channel for recreational and household products, and lower international demand than the first quarter of 2007. These impacts were partially offset by higher selling prices and the benefit of favorable foreign exchange translation. Operating profit rose 150% or US$3 million primarily due to the net benefit of favorable manufacturing efficiencies. Crop Protection revenues increased 10% or US$8 million compared with the first quarter of 2007. The increase in sales was primarily from European markets. Operating income rose 50% or US$7 million in the first quarter as compared with the same quarter of 2007 largely from improvements in product mix, volume, reductions in selling, general and administrative, and research and development expenses and favorable foreign currency translation. Corporate expense for the quarter was US$32 million, which included US$10 million of amortization expense related to intangibles and US$7 million relating to the correction of accounting treatment for an assumed lease that was not identified at the time of the merger. Corporate expense in the first quarter of 2007 was US$23 million, which included US$9 million of amortization expense related to intangibles. First Quarter 2008 Significant Transactions and Events On Jan. 31, 2008, the company completed the sale of its fluorine chemical business located at the Company's El Dorado, Arkansas facility. The fluorine chemical business had revenue of approximately US$49 million in 2007. The fluorine chemical business is reported as a discontinued operation in the accompanying consolidated financial statements. On Feb. 29, 2008, the Company completed the sale of its oleochemicals business. The oleochemicals business had revenue of approximately US$175 million in 2007. Proceeds from the transaction were used to reduce debt. On Feb. 29, 2008, Chemtura acquired the remaining stock of Baxenden Chemicals Limited Plc. Increasing our ownership to 100%. Chemtura previously held 53.5% of Baxenden�s stock. On March 12, 2008, the company purchased the remaining 50% interest in GLCC Laurel, LLC. On April 30, 2008, the company announced it had entered into an agreement with Baerlocher for the manufacture of certain heat stabilizers used in PVC. As of March 31, 2008 the company employed 5,049 people compared to 5,144 as of Dec. 31, 2007. The reduction reflects the net effect of the divestitures of the oleochemicals and fluorine businesses and the benefit of restructuring actions offset by the addition of 284 employees as a result of the acquisitions of Baxenden and GLCC Laurel. First Quarter Results - GAAP Revenue for the quarter was US$909 million, or 2% above first quarter 2007 revenue of US$889 million. The increase in revenue was attributable to US$24 million from favorable foreign exchange translation, US$19 million from higher selling prices and US$20 million from the Kaufman acquisition. The increase was partially offset by US$36 million from the impact of the divestitures of the oleochemicals business, organic peroxides business and Celogen(R) foaming agents product line and US$7 million impact from product mix. Gross profit decreased US$18 million compared with the same period of 2007. The decrease in gross profit resulted from US$31 million in higher raw material and energy costs, US$7 million relating to the correction of accounting treatment for an assumed lease that was not addressed at the time of the merger and other cost increases of US$4 million, offset by US$19 million from higher selling prices, US$4 million contribution from the Kaufman acquisition and US$1 million benefit from favorable manufacturing efficiencies. Operating profit decreased US$17 million in the first quarter of 2008 as compared with the same quarter last year. The decrease in operating profit resulted from a US$18 million decrease in gross profit discussed above, US$23 million from the loss on sale of the oleochemicals business and US$6 million increase in depreciation and amortization primarily due to accelerated depreciation of property, plant and equipment, offset by a US$15 million decrease in SGA&R, US$12 million decrease in antitrust costs and a US$3 million decrease in facility closures, severance and related costs. Other income, net, of US$14 million for the quarter primarily reflects non-recurring foreign exchange gains resulting from the over-hedging of two inter-company loans. The loss from continuing operations for the first quarter of 2008 was US$21 million, or US$0.09 per share, compared with a loss of US$20 million, or US$0.08 per share, for the first quarter of 2007. The increase in the loss primarily reflects the US$17 million decrease in operating profit discussed above, partially offset by a US$12 million increase in other income, net, US$3 million decrease in interest expense and US$1 million decrease in income tax expense. Earnings from discontinued operations were not material for the first quarter of 2008 and reflect that the fluorine business was sold on January 31, 2008 and only provided one month of contribution in the quarter. Earnings from discontinued operations for the first quarter of 2007 were US$5 million (net of US$2 million of tax) and reflecting the contribution from the EPDM, fluorine and optical monomers businesses that have been subsequently sold. In the first quarter of 2007, the gain on sale of discontinued operations of US$2 million (net of US$1 million of tax) represents the final contingent earn-out proceeds related to the sale of the OrganoSilicones business in 2003. First Quarter Managed Basis Results On a managed basis, first quarter 2008 gross profit was US$186 million, or 20% of net sales, as compared with first quarter 2007 managed basis gross profit of US$205 million, or 23% of net sales. On a managed basis, first quarter 2008 operating profit was US$41 million, or 5% of net sales, as compared with first quarter 2007 managed basis operating profit of US$43 million, or 5% of net sales. Earnings from continuing operations before income taxes on a managed basis in 2008 and 2007 exclude pre-tax charges of US$47 million and US$32 million, respectively, primarily related to accelerated depreciation of property, plant and equipment, loss on sale of businesses, antitrust costs, facility closures, severance and related costs and accelerated recognition of asset retirement obligations. Chemtura�s managed basis tax rate of 35% represents the expected effective tax rate for the Company�s core operations. The company has chosen to apply this rate to pre-tax income on a managed basis to better reflect underlying operating performance. Earnings from discontinued operations on a managed basis principally reflect the contribution of the EPDM, optical monomers and fluorine businesses of US$5 million for the quarter ended March 31, 2007. Cash Flows - GAAP Net cash provided by operations in the first quarter of 2008 was US$16 million as compared with net cash used in operations of US$31 million in 2007. The change is primarily due to an increase in securitized receivables during the three months ended March 31, 2008 as compared to the three months ended March 31, 2007. The company�s accounts receivable securitization programs totaled US$337 million as of March 31, 2008, US$239 million as of Dec. 31, 2007 and US$328 million as of March 31, 2007. At March 31, 2008, the company�s inventory balance of US$707 million was increased by the foreign currency translation impact of the weakening in the U.S. dollar. At the same exchange rates that applied as of December 31, 2007, the value of inventories as of March 31, 2008 would have been US$695 million. Capital expenditures for the first quarter of 2008 were US$23 million compared with US$20 million in 2007. The company currently anticipates capital expenditures to be US$165 million in 2008, which includes US$25 million related to the consolidation of its legacy ERP systems onto a single instance of SAP. The company�s total debt as of March 31, 2008 was US$1,092 million as compared with US$1,063 million as of December 31, 2007. Cash and cash equivalents were US$115 million as of March 31, 2008 compared to US$77 million as of December 31, 2007. About Chemtura Corporation Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE: CEM) -- http://www.chemtura.com/-- manufactures and markets specialty chemicals, crop protection products, and pool, spa and home care products. The company has subsidiaries in the United Kingdom, Netherlands, Australia, China, Japan, Chile and Mexico, among others. * * * In December 2007, Moody's Investors Service placed Chemtura Corporation's corporate family rating of Ba2 under review for possible downgrade after reports that its "board of directors has authorized management to consider a wide range of strategic alternatives available to the company to enhance shareholder value." Standard & Poor's Ratings Services similarly placed its 'BB+' corporate credit and senior unsecured debt ratings of Chemtura Corp. on CreditWatch with developing implications. CHEMTURA CORP: Annual Stockholders Meeting Scheduled for May 14 --------------------------------------------------------------- Chemtura Corp. will hold its Annual Meeting of Stockholders at 11:15 a.m. on Wednesday, May 14, 2008, Chief Executive Officer Robert L. Wood said in a regulatory filing. The meeting will be held at the company�s headquarters located at 199 Benson Road in Middlebury, Connecticut. At the meeting, stockholders will be asked to: -- elect six directors for a term of one-year expiring at the 2009 Annual Meeting of Stockholders; and -- ratify the company�s selection for 2008 of its independent registered public accounting firm. Only stockholders of record at the close of business on March 18, 2008, will be allowed to vote at the meeting. About Chemtura Corporation Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE: CEM) -- http://www.chemtura.com/-- manufactures and markets specialty chemicals, crop protection products, and pool, spa and home care products. The company has subsidiaries in the United Kingdom, Netherlands, Australia, China, Japan, Chile and Mexico, among others. * * * In December 2007, Moody's Investors Service placed Chemtura Corporation's corporate family rating of Ba2 under review for possible downgrade after reports that its "board of directors has authorized management to consider a wide range of strategic alternatives available to the company to enhance shareholder value." Standard & Poor's Ratings Services similarly placed its 'BB+' corporate credit and senior unsecured debt ratings of Chemtura Corp. on CreditWatch with developing implications. CHEMTURA CORP: Inks Pact with Baerlocher on Heat Stabilizers ------------------------------------------------------------ Chemtura Corporation on Wednesday entered into an agreement with Baerlocher for the manufacture of certain heat stabilizers used in PVC. In addition, Chemtura is selling its organic-based stabilizers product line for rigid PVC applications to Baerlocher. �Chemtura has developed a valuable intellectual property estate in OBS but has been unable to fully leverage the technology in rigid PVC,� said Anne Noonan, group president for Chemtura Polymer Additives. �Chemtura will, however, continue its efforts in further development of OBS technology, particularly for flexible PVC applications where we have greater capabilities. �This represents another step in the strategic restructuring of our non-flame-retardant Polymer Additives businesses,� Noonan said. �In the last year, we have restructured our antioxidants business by moving manufacturing from high-cost facilities in Europe to lower-cost facilities in Asia and the Middle East. We also have divested our organic peroxides and oleo chemicals businesses in order to focus on businesses we are better positioned to grow. The agreement with Baerlocher continues this trend and establishes a sustainable platform for Chemtura to develop its PVC business.� About Chemtura Corporation Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE: CEM) -- http://www.chemtura.com/-- manufactures and markets specialty chemicals, crop protection products, and pool, spa and home care products. The company has subsidiaries in the United Kingdom, Netherlands, Australia, China, Japan, Chile and Mexico, among others. * * * In December 2007, Moody's Investors Service placed Chemtura Corporation's corporate family rating of Ba2 under review for possible downgrade after reports that its "board of directors has authorized management to consider a wide range of strategic alternatives available to the company to enhance shareholder value." Standard & Poor's Ratings Services similarly placed its 'BB+' corporate credit and senior unsecured debt ratings of Chemtura Corp. on CreditWatch with developing implications. SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter ------------------------------------------------------------- Sun Microsystems, Inc. reported results for its fiscal third quarter, which ended March 30, 2008. Revenues for the third quarter of fiscal 2008 were US$3.266 billion, a decrease of 0.5% as compared with US$3.283 billion for the third quarter of fiscal 2007. Total gross margin as a percent of revenues was 44.9, an increase of 0.4 percentage points, as compared with the third quarter of fiscal 2007. Net loss for the third quarter of fiscal 2008 on a GAAP basis was US$34 million, or US$(0.04) per share, as compared with net income of US$67 million, or US$0.07 per share, for the third quarter of fiscal 2007. In the third quarter of fiscal 2008, the company recorded a US$52 million dollar tax provision, as compared to a tax benefit of US$3 million in the third quarter of fiscal 2007. Net loss for the third quarter included charges related to the acquisition of MySQL, which reduced earnings per share by approximately US$0.04. Cash generated from operations for the third quarter of fiscal 2008 was US$329 million, and the cash and marketable debt securities balance at the end of the quarter was US$3.801 billion. During the third quarter, Sun continued to leverage its cash position, spending US$300 million to repurchase 17.5 million shares of its common stock. There is currently US$500 million remaining of the US$3 billion share repurchase program announced in the company's fiscal fourth quarter of 2007. "The U.S. economy presented Sun with significant challenges in the third quarter, masking our progress in developing nations and economies across the world," said Jonathan Schwartz, CEO of Sun Microsystems. "With double digit year-over-year growth in India and Brazil, and triple digit year-over-year billings growth in our energy-efficient, SolarisTM-based Chip Multi- Threading (CMT) systems, Sun made considerable progress during the quarter. We continue to invest in the future created by open alternatives to proprietary technologies, best exemplified by the acquisition of MySQL. The world is moving to open source innovation, and Sun continues to lead that revolution." Third Quarter Highlights Sun reported year-over-year revenue growth in 12 out of its 16 sales geographies during the third quarter, with double-digit revenue growth in key international markets across EMEA, Asia Pacific and the International Americas. From a product perspective, SolarisTM-based Chip Multi-Threading systems billings more than doubled year-over-year, with the company's blade systems also delivering impressive billings growth fueled by Sun's comprehensive portfolio spanning AMD OpteronTM, Intel Xeon(R) and Sun UltraSPARC(R) offerings. Furthering its presence in the open source software marketplace, Sun announced the close of two significant acquisitions: MySQL, the world's most popular open source database provider, and innotek, whose VirtualBoxTM products provide free desktop virtualization. Sun signed a landmark collaboration agreement with The People's Republic of China Ministry of Education to cultivate integrated circuit engineering talent and industry development based upon Sun's OpenSPARCTM open source silicon platform. Sun was awarded significant contracts including funding from the Defense Advanced Research Projects Agency for a five and a half year research project focused on microchip interconnectivity via on-chip optical networks enabled by silicon photonics and proximity communication. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: JAVA) -- 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 has subsidiaries in, among other, the United Kingdom, Netherlands, Singapore, Taiwan, Mexico, Argentina, Chile, India and Bermuda. * * * 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. =========== R U S S I A =========== EAST-FISH: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------- The Arbitration Court of Chukotskiy commenced bankruptcy supervision procedure on CJSC East-Fish (TIN 8709008090, OGRN 1028700589213). The case is docketed under Case No. A80-21/ 2008-B. The Temporary Insolvency Manager is: O. Komelkova Building 2 Ilyinka Str. 5 Moscow Russia NADEZHDA LLC: Creditors Must File Claims by May 26 -------------------------------------------------- Creditors of LLC Nadezhda have until May 26, 2008, to submit proofs of claim to: D. Pakhomov Temporary Insolvency Manager Leanhouse Vernadskogo Str. 5 456320 Miass Russia Tel/Fax: (3513) 52-70-27 The Arbitration Court of Chelyabinsk will convene at 10:00 a.m. on Aug. 28, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A76-27113/ 07-60-348. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: LLC Nadezhda Apt. 8 Mikrorajon 2, 21 Ust-Katav 456040 Chelyabinsk Russia NOVOLIPETSK STEEL: To Invest US$6.1 Bln to Double Output by 2015 ---------------------------------------------------------------- Novolipetsk Steel OJSC plans a US$6.1 billion investment to double its local steel production by 2015, Maria Kolesnikova writes for Bloomberg News, citing chairman Vladimir Lisin. According to Mr. Lisin, Bloomberg News reports, NLMK plans to hike crude steel production to 22 million metric tons by 2015, to meet up to 65% increase in Russian steel consumption by the same year, driven by a boom in construction and car making. About Novolipetsk Headquartered in Lipetsk, Russia, Novolipetsk Steel OJSC -- http://www.nlmksteel.com/-- manufactures pig iron, slabs, hot- rolled steel, and a variety of value-added steel products, such as cold-rolled sheet, electrical steel and other specialty flat products. The group also operates in Denmark and Japan. The group entered the Danish steel market in the first quarter of 2006 by acquiring a 100% stake at DanSteel A/S. * * * As of April 7, 2008, Novolipetsk Steel OJSC carries Ba1 Corporate Family and Probability-of-Default ratings from Moody's Investors Service, which said the Outlook is stable. NLMK carries BB+ Issuer Credit rating from Standard & Poor's Ratings Services, which said the Outlook is stable. The company also carries BB+ Long-term Issuer Default, B and Short-term Issuer Default ratings from Fitch Ratings, which said the Outlook is Stable. SAMARSKIY REGIONAL: Creditors Must File Claims by May 26 -------------------------------------------------------- Creditors of OJSC Samarskiy Regional Trading House (TIN 7707280161, OGRN 1037739027039) have until May 26, 2008, to submit proofs of claim to: M. Dyakonov Temporary Insolvency Manager Post User Box 481 111141 Moscow Russia The Arbitration Court of Samara will convene at 2:00 p.m. on June 20, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A55-17536/2007. The Court is located at: The Arbitration Court of Samara Avrory Str. 148 443045 Samara Russia The Debtor can be reached at: OJSC Samarskiy Regional Trading House Vyatskaya Str. 11 443052 Samara Russia SERVICE BUILDING: St. Petersburg Bankruptcy Hearing Set Aug. 12 --------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad will convene on Aug. 12, 2008, to hear the bankruptcy supervision procedure on LLC Service Building Company. The case is docketed under Case No. A56-1330/2008. The Temporary Insolvency Manager is: P. Tarasov Post User Box 19 Post Office 100 Tver Russia 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: LLC Service Building Company Krasnoflotskaya Str. 16 Kirovsk 187340 Leningrad Russia TIMBER-CENTRE: St. Petersburg Bankruptcy Hearing Set August 5 ------------------------------------------------------------- The Arbitration Court of St. Petersburg and Leningrad will convene on Aug. 5, 2008, to hear the bankruptcy supervision procedure on LLC Timber-Centre. The case is docketed under Case No. A56-44510/2007. The Temporary Insolvency Manager is: P. Tarasov Post User Box 19 Post Office 100 Tver Russia 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: LLC Timber-Centre Let. A Konstantina Zaslonova Str. 26 191119 St. Petersburg Russia ===================================== S E R B I A & M O N T E N E G R O ===================================== FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant --------------------------------------------------------- Fiat S.p.A. and Serbia�s Ministry of Economy and Regional Development has signed a Memorandum of Understanding as the basis for the acquisition by Fiat Group Automobiles of the assets of the Zastava plant at Kragujevac, Serbia. Under the MoU, joint teams are to be set up by FGA and Zastava with the support of the Serbian Ministry of Economy, which will examine the various aspect of the initiative in greater detail. If deemed feasible, the two companies will enter into a definitive agreement in the course of the coming months. "This initiative represents a further step in Fiat Group Automobiles� strategy aimed at supporting its growth and volume aspirations," Sergio Marchionne, Fiat CEO, said. "It follows a number of targeted alliances and partnerships signed with leading carmakers and automotive suppliers over the last four years. Moreover, it demonstrates our confidence and trust in Serbia, its industry, management competence and the skill of its workers, not to forget the Serbian automotive market itself, which we consider an integral extension of our domestic market. "[Fifty-four] years ago, Fiat and Zastava signed an accord for the construction of the factory at Kragujevac where the Fiat Punto is manufactured today," Mr. Marchionne added. "We believe that, together with Zastava, we have played an important role in enhancing the Serbian automotive industry from both the manufacturing as well as the technological point of view. We are proud that many Serbian engineers and technicians have been trained at Fiat in Italy and in Serbia." About Fiat S.p.A. Based in Turin, Italy, Fiat SpA -- http://www.fiatgroup.com/-- designs, manufactures, and sells automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The company also carries B short- term rating. S&P said the outlook is stable. ===================== S W I T Z E R L A N D ===================== BS FISCHHANDEL: Creditors' Liquidation Claims Due by May 11 ------------------------------------------------------------ Creditors of LLC BS Fischhandel have until May 11, 2008, to submit their claims to: Dr. Ramon Mabillard Aeschenvorstadt 4 Mail box: 526 4010 Basel Switzerland The Debtor can be reached at: LLC BS Fischhandel Basel Switzerland CLOROX CO: March 31 Balance Sheet Upside-Down by US$472 Million ---------------------------------------------------------------- The Clorox Company reported results for its fiscal third quarter, which ended March 31, 2008. �Total company and base business sales growth were strong, especially considering our very high level of growth in the year-ago quarter,� said Chairman and CEO Don Knauss. �Our market shares held steady despite the economic pressures consumers are facing. �As expected, we faced intense cost pressures from commodity cost increases. Aggressive cost savings and the benefit of recent price increases helped mitigate much of this impact, and we feel good about our overall performance in this environment. Importantly, we continue to make progress against our Centennial strategy and do the things we believe will drive economic profit growth and shareholder value over the long term.� Third-quarter highlights Clorox reported third-quarter net earnings of US$100 million, or 71 cents diluted earnings per share, based on weighted average diluted shares outstanding of 140 million. Current quarter earnings were reduced by US$17 million in pretax charges, or 8 cents diluted EPS, associated with the announced consolidation of the company�s manufacturing networks and other charges, and US$11 million, or 5 cents diluted EPS, associated with the Burt�s Bees acquisition. Excluding these factors, the company delivered 84 cents diluted EPS. In the year-ago quarter, Clorox reported US$129 million, or 84 cents diluted EPS, based on weighted average diluted shares outstanding of 154 million. The year-ago quarter�s results included 6 cents diluted EPS, or US$14 million on a pretax basis, of incremental costs associated with the IT services agreement and asset impairments. Excluding these factors, the company delivered 90 cents diluted EPS in the year-ago quarter. Third-quarter sales grew 9% to US$1.35 billion, compared with US$1.24 billion in the year-ago quarter, when the company delivered 7% sales growth. Excluding the Burt�s Bees and bleach business acquisitions, sales growth in the current quarter was 5 percent. This includes the benefit of favorable foreign exchange rates and the unfavorable impact of exiting the company�s private label food bags business. Total volume increased 4% compared to the year-ago quarter, when the company delivered 8% volume growth. Excluding about 3 percentage points of growth from Burt�s Bees(R) products and less than half a percentage point of growth from the bleach business acquisition, volume was up slightly due to core volume growth, offset by the impact of price increases and a higher year-ago comparison. Sales growth outpaced volume growth primarily due to the benefit of price increases, favorable foreign exchange rates and improved product mix. Gross margin in the third quarter decreased 350 basis points to 39.8% from 43.3% in the year-ago quarter. Excluding the impact of the Burt�s Bees purchase-accounting step-up in inventory values and previously announced restructuring-related charges, gross margin was 41.8 percent. The decrease was primarily due to the impact of unfavorable commodity costs and higher costs for manufacturing and logistics, including diesel fuel. These factors were partially offset by the benefit of cost savings, price increases and improved product mix. Net cash provided by operations was US$165 million, compared to US$172 million in the year-ago quarter. The year-over-year decrease was primarily due to lower net earnings in the current quarter. At March 31, 2008, the company's balance sheet showed total assets of US$4.750 billion and total debts of US$5.222 billion resulting in a stockholders' deficit of US$472 million. North America The segment reported 8% sales growth, 4% volume growth and a 3% decline in pretax earnings. Volume benefited from the addition of Burt�s Bees, the launch of Green Works(TM) cleaners, and higher shipments of Brita products(R) and Fresh Step(R) scoopable cat litter. These results were partially offset by the impact of poor weather on the auto and Kingsford(R) charcoal businesses, price increases and the company�s exit from the private-label food bags business. Sales growth outpaced volume growth primarily due to the benefit of price increases, a favorable Canadian exchange rate and improved product mix. Pretax earnings reflected the impact of unfavorable commodity costs and the charge of US$14 million for a purchase-accounting step-up of inventory values associated with Burt�s Bees, partially offset by the benefit of higher sales and cost savings. International The segment reported 14% sales growth, 4% volume growth and a 16% decline in pretax earnings. Sales results included about 6 percentage points from favorable foreign exchange rates and about 4 percentage points of growth from the bleach business acquisition. Volume growth was driven by the bleach business acquisition and category growth in Latin America. Sales growth outpaced volume growth primarily due to the benefit of favorable foreign exchange rates and price increases. Pretax earnings reflected the impact of unfavorable commodity and manufacturing costs and charges related to restructuring and asset impairment. Updated fiscal year 2008 financial outlook For fiscal year 2008, Clorox now anticipates total sales growth in the range of 8-9%. Excluding the anticipated benefit of the bleach business and Burt�s Bees acquisitions, Clorox anticipates sales growth in the range of 5-6%. This includes the benefit of favorable foreign exchange rates and the unfavorable impact of exiting the company�s private-label food bags business. The company�s earnings outlook has been updated to reflect a greater impact from commodity cost inflation and revised estimates for dilution from the Burt�s Bees acquisition. Previously, Clorox anticipated EPS dilution in the range of 13 cents to 15 cents from the Burt�s Bees acquisition. Due to strong business performance and lower interest rates, the projected EPS dilution impact from the acquisition is now anticipated to be in the range of 9 cents to 11 cents. This range includes pretax costs of about US$2 million for amortization of intangible assets, US$19 million for the purchase-accounting step-up in inventory values, and the impact of financing the transaction. Including the above factors, Clorox now anticipates diluted EPS in the range of US$3.20 to US$3.28. Excluding the impact of the Burt�s Bees acquisition and announced restructuring-related charges in the range of 25 cents to 26 cents diluted EPS, the company anticipates fiscal year 2008 diluted EPS in the range of US$3.57 to US$3.62. Initial fiscal year 2009 financial outlook For fiscal year 2009, Clorox�s initial outlook is for total sales growth in the range of 6-8%. Excluding the impact of the Burt�s Bees acquisition, Clorox anticipates sales growth in the range of 4-6%. This range includes about 2 percentage points of growth from innovation, including Green Works(TM) natural cleaners. The company anticipates modest gross margin expansion. The benefits of cost savings and price increases are expected to more than offset the impact of commodity cost pressure for the fiscal year. For the fiscal year, Clorox projects cost savings in the range of US$90 million to US$100 million; restructuring-related charges in the range of US$20 million to US$25 million, primarily related to the previously announced consolidation of the company�s manufacturing networks; and a tax rate in the range of 34-35 percent. The company anticipates weighted average diluted shares outstanding of about 142 million. Including these factors, the company anticipates fiscal year 2009 diluted EPS in the range of US$3.75 to US$3.90. Clorox completes credit agreement On April 16, Clorox signed a five-year, US$1.2 billion unsecured revolving credit agreement, with JPMorgan Chase Bank N.A., Citicorp USA Inc. and Wachovia Bank N.A. as the administrative agents. Amounts available under the agreement are for general corporate purposes and to support the company�s issuance of commercial paper. Concurrently with the new pact, the company ended its existing credit agreement, dated Dec. 7, 2004. The Clorox Company The Clorox Company -- http://www.TheCloroxCompany.com/-- (NYSE:CLX) manufactures and markets of consumer products with fiscal year 2007 revenues of US$4.8 billion. Clorox brands include its namesake bleach and cleaning products, Green Works(TM) natural cleaners, Armor All(R) and STP(R) auto-care products, Fresh Step(R) and Scoop Away(R) cat litter, Kingsford(R) charcoal, Hidden Valley(R) and K C Masterpiece(R) dressings and sauces, Brita(R) water-filtration systems, Glad(R) bags, wraps and containers, and Burt�s Bees(R) natural personal care products. With 8,300 employees worldwide, the company manufactures products in more than two dozen countries and markets them in more than 100 countries. The company has subsidiaries in Switzerland, Luxembourg, Mexico, Venezuela, Chile, Hong Kong, Korea and Australia, among others. EURODOCTORS JSC: Creditors' Liquidation Claims Due by May 11 ------------------------------------------------------------ Creditors of JSC Eurodoctors have until May 11, 2008, to submit their claims to: JSC Panotrust Treuhand & Beratung Kappelergasse 14 Mail box: 2725 8022 Zurich Switzerland The Debtor can be reached at: JSC Eurodoctors Baar ZG Switzerland GISAG INFORMATIK: Creditors' Liquidation Claims Due by May 11 ------------------------------------------------------------ Creditors of JSC Gisag Informatik have until May 11, 2008, to submit their claims to: JSC Gisag Informatik Mail box: 382 3052 Zollikofen BE Switzerland HOTEL PLAZA: Creditors' Liquidation Claims Due by May 14 -------------------------------------------------------- Creditors of JSC Hotel Plaza Betrieb have until May 14, 2008, to submit their claims to: JSC Hotel Plaza Betrieb Neumarktstrasse 40 2502 Biel BE Switzerland HYSTERICAL WEB: Creditors' Liquidation Claims Due by May 14 ----------------------------------------------------------- Creditors of LLC HYSTERICAL Web Design Factory have until May 14, 2008, to submit their claims to: LLC HYSTERICAL Web Design Factory Altwiesenstr. 39 5436 Wurenlos Baden AG Switzerland MAMMUT ENERGY: Zug Court Starts Bankruptcy Proceedings ------------------------------------------------------ The Bankruptcy Service of Zug commenced bankruptcy proceedings against JSC Mammut Energy on April 1, 2008. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: JSC Mammut Energy Baarerstrasse 14 6300 Zug Switzerland OPATAX JSC: Zug Court Starts Bankruptcy Proceedings --------------------------------------------------- The Bankruptcy Service of Zug commenced bankruptcy proceedings against JSC Opatax on April 1, 2008. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6301 Zug Switzerland The Debtor can be reached at: JSC Opatax 6535 Roveredo GR Switzerland R & R PULVER: Creditors' Liquidation Claims Due by May 11 --------------------------------------------------------- Creditors of LLC R&R Pulver have until May 11, 2008, to submit their claims to: Marianne Haldimann Grunenstrasse 6 3455 Grunen/Sumiswald Trachselwald BE Switzerland The Debtor can be reached at: LLC R&R Pulver Lutzelfluh Trachselwald BE Switzerland ============= U K R A I N E ============= COMPLIMENT LLC: Creditors Must File Claims by May 14 ---------------------------------------------------- Creditors of LLC Compliment (code EDRPOU 32796959) have until May 14, 2008, to submit proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov has commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as B-19/237-07. The Debtor can be reached at: LLC Compliment Voroshylov Str. 12 Dergachi Kharkov Ukraine DESTROERS LLC: Proofs of Claim Deadline Set May 14 -------------------------------------------------- Creditors of LLC Destroers (code EDRPOU 34979298) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy supervision procedure on the company on March 31, 2008. The case is docketed as 43/308. The Debtor can be reached at: LLC Destroers Citadelnaya Str. 6/8 01015 Kiev Ukraine EAST-TRADE LLC: Creditors Must File Claims by May 14 ---------------------------------------------------- Creditors of LLC East-Trade (code EDRPOU 33382405) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on March 27, 2008. The case is docketed as B 26/60-08. The Debtor can be reached at: LLC East-Trade Apartment 31 Titov Str. 5 49000 Dnipropetrovsk Ukraine GROT POSEIDON: Creditors Must File Claims by May 14 --------------------------------------------------- Creditors of LLC Grot Poseidon (code EDRPOU 33612202) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on March 27, 2008. The case is docketed as B 26/59-08. The Debtor can be reached at: LLC Grot Poseidon Apartment 108 Mir Avenue 83 49000 Dnipropetrovsk Ukraine LUGANSK CRANKSHAFTS: Creditors Must File Claims by May 14 --------------------------------------------------------- Creditors of CJSC Lugansk Plant of Crankshafts (code EDRPOU 05786063) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Lugansk Geroiv VVV Square 3a 91000 Lugansk Ukraine The Economic Court of Lugansk commenced bankruptcy proceedings against the company on March 17, 2008, after finding it insolvent. The case is docketed as 12/79b. The Debtor can be reached at: CJSC Lugansk Plant of Crankshafts Sverdlov Str. 71 91000 Lugansk Ukraine MEDIA SET: Creditors Must File Claims by May 14 ----------------------------------------------- Creditors of LLC Media Set (code EDRPOU 35066924) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on April 2, 2008. The case is docketed as 5/149/08. The Debtor can be reached at: LLC Media Set Lenin Avenue 67 54017 Nikolaev Ukraine SK-HOLDING LLC: Proofs of Claim Deadline Set May 14 --------------------------------------------------- Creditors of LLC SK-Holding (code EDRPOU 33830450) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy supervision procedure on the company on March 31, 2008. The case is docketed as 43/307. The Debtor can be reached at: LLC SK-Holding Kikvidze Str. 13 01103 Kiev Ukraine SOYUZ-PERSPECTIVE LLC: Proofs of Claim Deadline Set May 14 ---------------------------------------------------------- Creditors of LLC Soyuz-Perspective (code EDRPOU 32862188) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Donetsk Artema Str. 157 83048 Donetsk Ukraine The Economic Court of Donetsk commenced bankruptcy supervision procedure on the company on March 5, 2008. The case is docketed as 45/93B. The Debtor can be reached at: LLC Soyuz-Perspective Pavshyh communarov Avenue 102B 83023 Donetsk Ukraine TLC-SERVICE LLC: Creditors Must File Claims by May 14 ----------------------------------------------------- Creditors of LLC TLC-Service (code EDRPOU 3366832) have until May 14, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on March 27, 2008. The case is docketed as B 26/61-08. The Debtor can be reached at: LLC TLC-Service Apartment 108 Mir Avenue 83 49000 Dnipropetrovsk Ukraine UKRPROTECTION LLC: Creditors Must File Claims by May 14 ------------------------------------------------------- Creditors of LLC Ukrprotection (code EDRPOU 32796964) have until May 14, 2008, to submit proofs of claims to: The Economic Court of Kharkov Derzhprom 8th Entrance Svoboda Square 5 61022 Kharkov Ukraine The Economic Court of Kharkov has commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed as B-19/238-07. The Debtor can be reached at: LLC Ukrprotection Gorky Str. 72 Dergachi Kharkov Ukraine =========================== U N I T E D K I N G D O M =========================== BEACON BUILDING: Brings In Liquidators from Tenon Recovery ---------------------------------------------------------- Nigel Ian Fox and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint liquidators of Beacon Building Co. Ltd. on April 22 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England BEACON PLUMBING: Calls In Liquidators from Tenon Recovery --------------------------------------------------------- Nigel Ian Fox and Stanley Donald Burkett-Coltman of Tenon Recovery were appointed joint liquidators of Beacon Plumbing and Heating Co. Ltd. on April 22 for the creditors' voluntary winding-up proceeding. The joint liquidators can be reached at: Tenon Recovery Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TZ England BRITISH AIRWAYS: Eyes Transatlantic Tie-Up With Two US Carriers --------------------------------------------------------------- British Airways plc is exploring opportunities for co-operation with American Airlines and Continental Airlines. Further details will be announced when appropriate. However, Sir Richard Branson, founder and president of Virgin Atlantic, criticized BA's attempt to establish a transatlantic joint venture with the two US carriers, saying "the regulators ruled it was against the consumer interest," the Financial Times relates. Meanwhile, BA chief executive Willie Walsh urged US and EU authorities to relax regulatory rules on foreign ownership and control of airlines, the FT reveals. Mr. Walsh stated EU investors, which are currently restricted to owning a maximum voting share of 25% in a US carrier, must be allowed to take majority stakes, and vice versa, Justin Baer and Kevin Don writes for the paper. A TCR-Europe report on Oct. 24, 2007 disclosed BA tried to forge a transatlantic tie-up with American Airlines twice but failed after competition regulators insisted it would have to give up landing slots at London's Heathrow airport to obtain approval. "A link between a European and a US carrier is transformational," Mr. Walsh said. "If that were possible it would definitely be something worth chasing." Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As of Jan. 2, 2008, British Airways Plc carries a senior unsecured debt rating of Ba1 from Moody's Investors' Service with a stable outlook. ELEPHANT LOANS LTD: Liquidator Reveals Redundancy of Staff ---------------------------------------------------------- Sixteen employees have been made redundant at Elephant Loans Ltd., Mortgage Solutions reports, citing liquidator, Begbies Traynor LLP. As reported in the TCR-Europe on April 24, 2008, Elephant Loans Ltd. was placed into liquidation by parent Elephant Loans & Mortgages Plc. According to the report, the unit's firm has GBP300,000 in debts as a result of discontinued trading activities. Peter Blair of Begbies Traynor told Mortgage Solutions that there were a number of staff have yet to receive their holiday and redundancy pay. However, employees can claim some money back from the Government under the Employment Rights Act 1996, Mr. Blair explained. Headquartered in London, Elephant Loans & Mortgages Plc -- http://www.elephantloans.co.uk/-- arranges secured and unsecured loans for any purpose including store card and credit card debt consolidation and business loans. GENERAL MOTORS: Incurs US$3.3 Bln Net Loss in First Quarter 2008 ---------------------------------------------------------------- General Motors Corp. released financial results for the first quarter of 2008, marked by improved adjusted automotive operating performance, rapid growth in emerging markets, continued cost performance in GM North America (GMNA) operations and liquidity of nearly US$24 billion, despite the impact of the American Axle strike on North American operations and weakness in the U.S. auto industry. "We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the U.S.," GM Chairman and Chief Executive Officer Rick Wagoner said. GM reported a net loss of US$3.3 billion, or US$5.74 per share in the first quarter of 2008, compared with a net loss from continuing operations of US$42 million, or US$.07 per diluted share, in the year-ago quarter. Adjusted automotive earnings before taxes were US$392 million, up US$161 million despite the significant impact of the American Axle strike and weak U.S. auto industry (reported earnings declined US$118 million). These positive results were driven by strong combined earnings before taxes of US$1 billion in GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and GM Europe (GME), which more than offset a loss at GMNA. Excluding special items, GM posted an adjusted net loss of US$350 million, or US$.62 per diluted share in the first quarter of 2008, reflecting losses at GMAC and tax expenses. These results compare to an adjusted net loss from continuing operations of US$10 million, or US$0.01 per diluted share in the first quarter of 2007. The reported results for the first quarter of 2008 include unfavorable special items totaling US$2.9 billion. The charges include US$1.45 billion to record a non-cash partial impairment of our equity investment in GMAC. Based on current market pricing, GM concluded that the estimated fair value of the common and preferred equity interests it holds in GMAC were approximately US$1.45 billion less than GM's carrying value. GM also took a non-cash charge of US$731 million to increase GM's liability for estimated net costs associated with GM's support of Delphi's bankruptcy and restructuring efforts. This charge primarily results from updated estimates reflecting uncertainty around the nature, value and timing of GM's recoveries. In addition, GM recorded US$394 million in non-cash tax-related valuation allowances related to deferred tax assets in Europe, and US$324 million in charges related to previously- announced restructuring actions in North America and Europe. GM's total revenue for the first quarter of 2008 was US$42.7 billion, down slightly from US$43.4 billion in the year-ago quarter primarily due to lower North America automotive and financial services and insurance revenues. Automotive revenues outside of North America were up over 20 percent, with strong growth in China, Brazil, Russia and India. As reported in the fourth quarter of 2007, and reflected in the remainder of this release, GM now reports its automotive operations and regional results on an earnings-before-tax basis, with taxes reported on a total corporate basis. GM Automotive Operations Adjusted profits from GM's global automotive operations improved, with first quarter 2008 earnings before tax of US$392 million on an adjusted basis (reported earnings before tax of US$68 million), compared to US$231 million in the year-ago period (reported earnings before tax of US$186 million). GM sold 2.25 million vehicles in the first quarter of 2008, down less than one percent from 2.27 million units in the first quarter 2007, with a record 64 percent of sales outside of the United States. Unit sales outside GMNA were up 8 percent compared with the same quarter last year. Robust sales in the first quarter in GM's GMLAAM and GMAP regions, and improved sales in the GME region helped offset a 10 percent unit decline in GMNA. GMNA GMNA revenue for the first quarter 2008 was US$24.5 billion, compared to US$28.1 billion in the year-ago period. The decline in GMNA first quarter revenue was significantly impacted by the lost production due to the American Axle strike. Other factors include a softer U.S. market and planned actions to maintain lean inventories. With the industry shift toward more fuel- efficient vehicles, GM's most recently launched passenger cars and crossovers, including the Cadillac CTS, GMC Acadia, Buick Enclave and the all-new Chevrolet Malibu continue to perform well in the marketplace. The decline in GMNA first quarter earnings was more than accounted for by the loss of 100,000 production units resulting from the American Axle strike, which had an estimated impact to earnings of US$0.8 billion. Other factors included lower volumes resulting from a softer U.S. market and lower market share, as well as shifts in product mix. Partially offsetting the declines were favorable material and structural cost performance and commodity hedging gains and foreign exchange. GME GME Revenue was up 17 percent and adjusted earnings before tax improved by US$137 million. GME's improved earnings for the first quarter were driven by improved material cost performance, commodity hedging gains and reduced warranty costs, which were partially offset by negative foreign exchange and unfavorable country mix. GME had record first-quarter sales volumes of 572,000 units. GMLAAM Adjusted earnings before tax in the GMLAAM region more than doubled in the first quarter of 2008, driven by continued strong market growth and gains in GM market share in the region. GMLAAM revenue was up over 33 percent and volumes were up 20 percent, setting new first-quarter records for both unit sales and revenue. In addition, Argentina, Egypt and North Africa each set new quarterly sales records. GMAP GMAP adjusted earnings before tax increased by 49 percent, driven by strong volume and improvements in material cost performance, which were partially offset by mix and pricing deterioration and increased structural costs incurred to support growth. Revenue and earnings before tax improved significantly due to the overall volume gains, although market share was down slightly primarily due to declines in China, Australia and Korea. GMAC On a standalone basis, GMAC Financial Services reported a net loss of US$589 million for the first quarter 2008, primarily due to significant declines in the international mortgage operation of Residential Capital, LLC. The company's global automotive and insurance businesses posted profits. GM reported an adjusted loss before taxes of US$276 million for the quarter attributable to GMAC, as a result of its 49 percent equity interest and preferred dividends. While continued volatility in the capital and credit markets put pressure on first quarter results, GMAC continues to take actions to reduce risk, streamline its cost structure and preserve liquidity in an effort to protect franchise value. Cash and Liquidity Cash, marketable securities, and readily-available assets of the Voluntary Employees' Beneficiary Association trust totaled US$23.9 billion on March 31, 2008, down from US$24.7 billion on March 31, 2007. The change in liquidity reflects adjusted negative operating cash flow of US$3.6 billion in the first quarter 2008. The decrease was driven largely by lower production in GMNA, including the impact of the American Axle strike. Including undrawn, committed U.S. credit facilities of approximately US$7 billion, GM has access to more than US$30 billion in liquidity. Looking Forward In light of the current state of the U.S. economy and automotive industry, GM has revised its 2008 U.S. total industry seasonally adjusted annual rate outlook to the mid to high 15 million unit range, down from the low 16 million unit range. As a result of the anticipated softer automotive industry, GM announced earlier this week that it will eliminate a shift of production at four assembly plants: Janesville, WI; Pontiac and Flint, MI and Oshawa, Ont. "We remain focused on taking the actions necessary to assure GM's long-term success � product excellence, leadership in advanced propulsion technology, growth in emerging markets, and accelerating the restructuring of our U.S. business to achieve sustainable profitability,� Mr. Wagoner said. Results for the first quarter of 2008 are preliminary and may be revised prior to the filing of GM's first quarter report on Form 10-Q in May. About GM 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 including the United Kingdom, Germany, France, Russia, Brazil and India. * * * As reported in the Troubled Company Reporter-Europe on March 24, 2008, Standard & Poor's Ratings Services placed the General Motors Corp.'s B rating on CreditWatch with negative implications citing the extended American Axle strike. CLARIS LTD III: Moody's May Further Cut Ba1 Rating After Review --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade one synthetic CDO notes issued by Claris Limited - Napa Valley III. The underlying portfolio of this CDO transaction includes US subprime RMBS bonds, in particular of the 2005 vintage. Moody's announced on Feb. 4, 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 ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. These rating actions are: Claris Limited - Napa Valley III * Series 38/2005 Tranche 1 EUR25,000,000 Napa Valley III Synthetic CDO of ABS Floating Rate Notes due 2025 -- Current rating: Ba1, on review for downgrade -- Prior rating: Aa3 This transaction will continue to be monitored and any further rating action will be publicly disseminated. CLARIS LTD VII: Moody's May Further Cut B3 Rating After Review -------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade the notes of four synthetic CDO notes issued by Claris Limited - Napa Valley VII. The underlyings of this CDO transaction includes US subprime RMBS bonds, in particular of the 2005, 2006 and 2007 vintages. Moody's announced on Feb. 4, 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: Issuer: Claris Limited (1) Series 66/2006 Tranche 1 EUR20,000,000 Napa Valley VII Synthetic CDO of ABS Floating Rate Notes due 2026 -- Current Rating: B3, on review for downgrade -- Prior Rating: A2 (2) Series 67/2006 Tranche 1 EUR40,000,000 Napa Valley VII Synthetic CDO of ABS Floating Rate Notes due 2026 -- Current Rating: Baa2, on review for downgrade -- Prior Rating: Aaa CLARIS LTD X: Moody's May Further Cut Junk Rating After Review --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade three synthetic CDO notes issued by Claris Limited - Napa Valley X. The underlying portfolio of this CDO transaction includes US subprime RMBS bonds, in particular of the 2006 vintage. Moody's announced on Feb. 4, 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 ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. These rating actions are: Claris Limited - Napa Valley X (1) Series 91/2007 Tranche 1 EUR14,000,000 Napa Valley X Synthetic CDO of ABS Floating Rate Notes due 2027 -- Current rating: Caa1, on review for downgrade -- Previous rating: Baa1, on review for downgrade (2) Series 99/2007 Tranche 1 EUR10,000,000 Napa Valley X Synthetic CDO of ABS Floating Rate Notes due 2027 -- Current rating: Ba3, on review for downgrade -- Previous rating: Aaa (3) Series 101/2007 Tranche 1 EUR36,000,000 Napa Valley X Synthetic CDO of ABS Floating Rate Notes due 2027 -- Current rating: Ba3, on review for downgrade -- Previous rating: Aaa DEUTSCHE BANK: Moody's Cuts Ratings on 11 Credit Default Swaps -------------------------------------------------------------- Moody's Investors Service downgraded and left on review for further downgrade six classes of notes issued by Eirles Four Limited, three classes of notes issued by Eirles Two Limited and eleven credit default swaps entered into by Deutsche Bank AG referencing the TSAR_05 transaction. These credit-linked notes issued by the Eirles program are repacks of various credit default swaps transacted by Deutsche Bank AG, London Branch. This CDO transaction contains subprime RMBS bonds and ABS CDOs, particularly of the 2004, 2005 and 2006 vintages. All of these notes and credit default swaps reference the same TSAR 05 portfolio. Moody's announced on Feb. 4, 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: Deutsche Bank AG, London Branch - TSAR_05: (1) The US$63,000,000 Class C Swap -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa1 (2) The US$63,000,000 Class D Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$42,000,000 Class E Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$21,000,000 Class F Swap -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 Deutsche Bank AG, London Branch - Tsar_05 Credit Default Swap: (1) The US$63,000,000 Class D(2) Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (2) The US$63,000,000 Class D(3) Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$42,000,000 Class E(2) Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$21,000,000 Class F(2) Swap -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 Deutsche Bank AG, London Branch - TSAR_05 Swaps 2005 (Class B to E): (1) The US$7,160,000 TSAR_05 (DB) Class C Portfolio Credit Default Swap -- Current Rating: Aa2, on review for downgrade -- Prior Rating: Aa1 (2) The US$7,160,000 TSAR_05 (DB) Class D Portfolio Credit Default Swap -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (3) The US$4,770,000 TSAR_05 (DB) Class E Portfolio Credit Default Swap -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 Eirles Four Limited: (1) The US$126,000,000 Series 9 Floating Rate Secured Notes -- Current Rating: Baa1, on review for downgrade -- Prior Rating: Aa3 (2) The US$15,000,000 Series 11 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (3) The US$5,000,000 Series 15 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (4) The US$5,000,000 Series 16 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 (5) The US$5,000,000 Series 54 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 (6) The EUR 10,000,000 Series 82 Floating and Variable Rate Secured Notes -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 Eirles Two Limited: (1) The JPY1000,000,000 Series 81 Floating and Variable Rate Secured Notes -- Current Rating: Baa3, on review for downgrade -- Prior Rating: A1 (2) The JPY500,000,000 Series 82 Floating and Variable Rate Secured Notes -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa2 (3) The US$15,000,000 Series 85 Floating and Variable Rate Secured Notes -- Current Rating: Caa3, on review for downgrade -- Prior Rating: Baa3 GLOBAL TRADER: Creditors Names Grant Thornton as Administrator -------------------------------------------------------------- Creditors of Global Trader Europe has appointed Steve Akers at Grant Thornton LLP as liquidator of the company's assets, Ben Bland writes for The Telegraph. Mr. Akers will coordinate with GTE administrators Stephen Cork and Joanne Milner at Smith & Williamson Ltd. after the administration is converted to liquidation within this month, The Telegraph relates. During the meeting, a representative of GTE parent New World Trader asked for a seat on the five-man creditors' committee, The Telegraph reports. The administrators, however, refused the request. Global Trader Europe Global Trader Europe Ltd. offers a Spread Trading and a Contract for Difference execution and advisory service to both institutional and private clients investing in international and domestic markets. Global Trader was founded in Europe in 2000. Since then it has grown its global reach into South Africa, North America and Asia, with a physical presence in the United Kingdom, South Africa, Thailand, Canada and Russia. As previously reported in the TCR-Europe, Global Trader experienced a regulatory capital deficit as a result of a single client margin call default. GT Europe applied, at the close of business to the Financial Services Authority in the United Kingdom for a Variation of Permission - the official method by which companies change the terms of their authorization, limiting principal activities to closing existing trades. To ensure that the various alternatives can be evaluated within an orderly operational structure and regulated financial exposure, GT Europe, on Feb. 15, 2008, applied, with the permission of the FSA, to be managed under Administration. KMC INT'L: Managing Director Confirms Administration Proceedings ---------------------------------------------------------------- KMC International has filed for administration, the company's managing director Elizabeth Haywood confirmed on April 29, 2008, Aled Blake reports for the Western Mail. According to the report, the company appointed Grant Thornton to administer its assets. Dr. Haywood blamed the company's demise on "malicious rumors" that linked KMC to her husband, former Welsh Secretary Peter Hain's resignation from the Cabinet, Western Mail relates. Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- provides value-added professional services as assurance services, compensation and benefits, merger and acquisition transaction services, management advisory services, tax consulting and valuation services. Headquartered in London, KMC International -- http://www.kmcinternational.co.uk/-- is a leading recruitment consultancy helping CEOs, senior management and other decision makers in the public and private sectors find key players for their management teams. It was established in 1994 as part of Kay Management Consultants. The company has offices in London, Cardiff and Melbourne and, with associates CMI Group, in Ireland, France and Spain. METRONET RAIL: Inks GBP10.4 Mln Re-Signaling Deal with Thales ------------------------------------------------------------- The Metronet Rail Group has awarded Thales a GBP10.4 million re-signaling contract to prepare its north west London depot at Neasden for the next generation of London Underground trains. Neasden is London Underground's largest and most complex depot, servicing 73 trains from the Metropolitan and Jubilee lines. As well as being London Underground's biggest depot, it's also the most complex, with 15 miles of track, 75 roads and nearly 100 point machines. In future Neasden will house and service the majority of a new fleet of 191 trains being introduced across the shallow, sub-surface' network of Underground lines of the Metropolitan, District, Circle and Hammersmith & City. To accomplish this, a massive transformation is taking place, replacing 80 per cent of the depot buildings and facilities all without impacting the existing Underground service. Thales will install its modular interlocking system, LockTrac 6172 PMI, to improve the depot's signaling control functionality. The project will provide capabilities to set and confirm routes, manage train moves within the depot and control and monitor signaling assets. Thales' LockTrac 6172 PMI solution is a layered system that supports Neasden in providing additional stabling facilities in an overcrowded depot without having an impact on ongoing rail activities. "Thales consistently demonstrated a clear understanding of the complexities and importance of Neasden depot to London Underground throughout the tender exercise," Metronet Chief Programmes Officer Steve Mole said. "With its proven technology and delivery methodology, Thales assures Metronet it will meet the requirements of this highly complex project, delivering the necessary upgrades to the depot on time, to the highest quality standards." "This contract provides Metronet with real performance benefits and demonstrates Thales' ongoing commitment to public transport in London. The project builds on our current experience of working on other London Underground projects. As such, Thales is fully qualified to efficiently manage the implementation process throughout all of the different stages," Simon Jones, UK MD of Thales Rail Signalling Solutions, added. About Metronet The Metronet Rail Group -- http://www.metronetrail.com/-- is responsible for upgrading, replacing and maintaining two-thirds of London Underground's infrastructure -- its trains, stations, signaling, track, tunnels and bridges -- under a 30-year Public Private Partnership (PPP) contract which came into operation in April 2003. The Metronet Rail Group owns and operates Metronet Rail BCV Ltd. and Metronet Rail SSL Lte. -- which maintain the Bakerloo, Central, Victoria, and Waterloo & City lines (BCV) and Circle, District, Metropolitan, Hammersmith & City and East London lines (SSL). On July 18, 2007, Metronet Rail BCV Ltd. and Metronet Rail SSL Ltd., entered Administration; Alan Bloom, Maggie Mills, Roy Bailey and Stephen Harris, partners and directors of Ernst & Young LLP, were appointed PPP Administrators. This followed the PPP Arbiter's Interim Determination award of just GBP121 million for Metronet Rail BCV, when the company had been seeking a GBP551 million Interim Determination and GBP992 million in total. NON - WOVEN LTD: Colin Nicholls Leads Liquidation Procedure ----------------------------------------------------------- Colin Nicholls of Tenon Recovery was appointed liquidator of Non - Woven (UK) Ltd. on April 18 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: Tenon Recovery 6 College Yard Worcester WR1 2LA England The company can be reached at: Non - Woven (UK) Ltd. Second Floor Barclays Bank Chambers 50 High Street Evesham Worcestershire WR11 1HJ England SCOTTISH MUTUAL: S&P Cuts Junior Subordinated Debt Rating to BB+ ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term counterparty credit ratings on U.K.-based insurers Scottish Mutual Assurance Ltd. and Scottish Provident Ltd. to 'BBB' from 'BBB+'. At the same time, it lowered its insurer financial strength rating on SMA to 'BBB' from 'BBB+' and its junior subordinated debt rating on notes issued by SMA to 'BB+' from 'BBB-'. It also removed all these ratings from CreditWatch with developing implications, on which it had originally placed them on July 23, 2007. The outlooks are negative. Furthermore, the 'BBB+' long-term counterparty credit and insurer financial strength ratings on Phoenix Life Assurance Ltd. remain on CreditWatch with developing implications. This reflects our expectation that Royal London Mutual Insurance Society Ltd. (Royal London; A-/Stable/--) will acquire this entity. Standard & Poor's expects Royal London to exercise its call option to acquire certain assets of Resolution, including PLA. S&P took these rating actions after Impala Holdings Ltd., a subsidiary of Pearl Group Ltd. had completed its acquisition of Resolution. This transaction will make Pearl the largest closed life fund consolidator in the U.K., with about GBP87.5 billion in assets under management. "There are longer-term risks to the ratings on SMA and SPL if Pearl does not complete a suitable fund merger involving these entities," said Standard & Poor's credit analyst Mark Button. "The sale of Resolution's new-business operations and the in- force protection business to Royal London will accelerate SMA's run-off and increase the risk profile of emerging surplus. We do not expect Pearl to retain the proceeds from these disposals within the operating life companies." Standard & Poor's notes that the SMA bonds cannot be called until 2021, well beyond the expiry of the FSA's change of control conditions in 2016. Standard & Poor's considers these factors likely to increase risk for the SMA bondholders. At this stage, Pearl's plan for the SMA bonds is unclear. SCOTTISH RE: S&P Says Ratings Remaon on Negative CreditWatch ------------------------------------------------------------ Standard & Poor's Ratings Services its counterparty credit rating on Scottish Re Group Ltd. (B/Watch Neg/--; Scottish Re) and its counterparty credit and financial strength ratings on Scottish Re's operating companies and the ratings on these companies' dependent unwrapped securitized deals remain on CreditWatch with negative implications. "Standard & Poor's placed these ratings on CreditWatch on Jan. 31, 2008, because of the erosion of Scottish Re's capitalization due to the declining market value of its subprime and Alt-A investments, our increased estimate of expected losses on these assets, and the meaningful risk of losing some reserve credits secured through Ballantyne Re plc," said Standard & Poor's credit analyst Robert Hafner. "Our increasing estimates of cumulative subprime and Alt-A expected losses based on the composition of such investments, by vintage and other characteristics negatively affects our view of Scottish Re's capitalization," said Mr. Hafner. "Scottish Re's announcement of a letter of intent signed with ING, the only cedent for the Ballantyne trust, moderates our concern about its ability to avert loss of significant reserve credits pending execution of the arrangement." "We continue to monitor developments and awaits the release of Scottish Re's delayed financial data, which are needed to better refine our view of expected cumulative losses and the impact on the firm's capitalization," Mr. hafner added. "The ratings will be lowered if a substantial risk of losing reserve credits lingers or if our investment loss estimate were to increase materially. The ratings will be affirmed if our refined investment loss estimate is in line with our current expectations and the risk of losing reserve credits is ameliorated." STUDIO AMBIENCE: Claims Filing Period Ends May 27 ------------------------------------------------- Creditors of Studio Ambience Designs Ltd. have until May 27, 2008 to send in their names, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their solicitors (if any) to: Edward T. Kerr Joint Liquidator Pannell House 159 Charles Street Leicester LE1 1LD England Edward T. Kerr and Ian J. Gould of PKF (UK) LLP were appointed joint liquidators of the company on April 24 by resolutions of members and creditors. TELCOGAMES: Cash Flow Problems Prompt Administration Proceeding --------------------------------------------------------------- Menzies Corporate Restructuring confirmed that Telcogames is in administration, Mobile Entertainment reports. Jason Godefroy was named administrator of the company. In a report by Tim Green for ME, Mr. Godefroy plans to sell the business as a going concern and is in negotiations with parties interested in the company. In a report by Tim Green for ME, Menzies cited cashflow problems caused by investing on developments that drained the capital for operations. Mr. Godefroy told ME that Telcogames' expansion plans included games development through acquiring development studios, which resulted in a build up of creditor arrears and cashflow pressures. Mr. Godefroy said that administration was necessary to provide protection from creditors and to allow the business to continue as a going concern, the report said. 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. Headquartered in London, England, Telcogames -- http://www.telcogames.com/-- is a global publisher, developer and distributor of quality mobile games across all major formats including Symbian, Windows Mobile, Linux, J2ME and Brew. The company distributes mobile games to tier 1-3 carriers globally and are regarded as the leader in off-portal distribution. * ICAEW Focuses on Trust in Insolvency Profession ------------------------------------------------- Building and strengthening confidence in the insolvency profession has been the focus of activity for the Institute of Chartered Accountants in England and Wales (ICAEW)in 2007. The ICAEW, the largest licensing body for insolvency practitioners in the U.K., published its annual report to the Insolvency Service at the Department for Business, Enterprise and Regulatory Reform (DBERR). In the last twelve months, the ICAEW has been involved in the development of the Individual Voluntary Arrangement (IVA) protocol. This is aimed at building trust between all parties in the IVA process so that IVA�s can continue to function as a credible and efficient way for individuals to resolve their debt problems. The Institute is also represented on the IVA Standing Committee which will review the effectiveness of the IVA protocol going forward. "Given the economic climate we're all operating in, I believe that the insolvency profession will come under greater scrutiny and pressure. The Institute's approach to insolvency regulation, including licensing, monitoring and guiding practitioners, is taken fully into account," Vernon Soare, executive director of Professional Standards at the ICAEW said. "The many measures we have in place to uphold the ethical and professional standards of the insolvency profession, are designed to ensure accountability, transparency, consistency and independence,� Mr. Soare added. The key features and processes of the Institute�s systems to ensure public confidence include: -- compliance with the "Principles of Monitoring� agreed with the Insolvency Service; -- participation in arrangements for independent input into the ethical and professional standards of the insolvency profession via the independent Insolvency Practices Council (IPC); -- the inclusion of members who are neither insolvency practitioners nor chartered accountants, on the committees which license, monitor and, if necessary, discipline insolvency practitioners; -- cooperation through the Joint Insolvency Committee with other licensing bodies; and -- a requirement for insolvency practitioners to comply with Statements of Insolvency Practice which are adopted as common standards across all the licensing bodies. In its licensing role, at the end of 2007 the Institute had licensed 719 insolvency practitioners compared to 710 the previous year out of a U.K. total of around 1,700. The Institute granted 41 new licenses to insolvency practitioners during 2007. About 15 were granted to institute members and 26 to non-members who became affiliates, of whom the majority were in firms controlled by Institute members. In addition, 9 new license applications were granted to take effect from Jan. 1, 2008. The Institute�s Insolvency Licensing Committee considered 87 monitoring visit reports and took regulatory action where appropriate. While no licenses were withdrawn during the year at the direction of the ILC, regulatory penalties were issued in 8 cases. * BOOK REVIEW: Dangerous Pursuits - Mergers and Acquisitions in the Age of Wall Street --------------------------------------------------------------- Authors: Walter Adams and James W. Brock Publisher: Beard Books Softcover: 222 pages List Price: $34.95 http://www.amazon.com/exec/obidos/ASIN/1587981890/internetbankru pt First published in 1989, Dangerous Pursuits - Mergers and Acquisitions in the Age of Wall Street analyzes central concerns raised by the flurry of mergers, acquisitions, takeovers, and buyouts as the twentieth century drew to a close. This was a period of great economic vitality that challenged conventional theories and practices. Economists battled over the best way forward. It was a period of time when "coalition capitalism" was offered as an alternative to "cowboy capitalism" - that is, the belief in economic laissezfaire. As set forth by the authors, "Coalition capitalism, grounded in 'industrial policy,' is the neoliberal Left's riposte to the cowboy capitalism of the Right." Coalition capitalism takes the approach that "planning can be used to improve [a country's] market performance." The authors strive to present a balanced portrayal of the engineers of this economic growth - those individuals behind the mergers and acquisitions. To some, they were "predators, piranhas, greenmailers." Others, however, see T. Boone Pickens, Carl Icahn, Ivan Boesky, and others as "necessary catalysts for shaking up stodgy managements and for restoring giant corporations to their owners, the shareholders." Even the term "greed" is subject to debate. As a motivation for mergers, "greed is good" - as notably voiced by the character Gordon Gekko in the movie Wall Street - was an opinion apparently shared by Ivan Boesky, who told a college graduating class that "greed is all right." On the other hand, Henry Kravis, a top Wall Street leveraged-buyout strategist is quoted as saying, "Greed really turns me off." In discussing the many opinions regarding mergers and acquisitions, Dangerous Pursuits gives the reader a complete picture of a time when the American economy, workplace, and society were transformed. But the authors make no secret that they are concerned that mergers are weakening American business and society. Their position is substantiated in chapters on the effects of mergers from a macro and micro perspective. In a chapter entitled "The Macro Record," Adams and Brock step back from viewing mergers in terms of the parochial interest of the players and look at the "merger game" through the lens of the national interest. Shorn of media hype, the authors find that the "merger game" undermines advances in productivity, obstructs technological development, and weakens competitiveness. What the "game" does do is earn outsized, quick profits for the specialists, lawyers, financiers, and bankers who engage in it. In the chapter "The Micro Record," the authors look at how mergers have affected particular airlines, steel companies, and conglomerates. From this micro perspective, they find that the benefits touted by those with "parochial interests" do not materialize. At best, the mergers, acquisitions, takeovers, and buyouts are seen as impeding the economy from moving ahead. At worst, Taylor and Brock see an "addiction to mergeritis." No one argues that mergers did not produce large profits for some. The authors warn, however, that such success is a "slow and secret poison" to the U.S. economy. One-time President of Michigan State University where he also taught, Walter Adams also taught at European universities, appeared as an expert on economics before Congressional committees, and published other books. James W. Brock has been a member of the economics department faculty at Miami University in Ohio for more than 20 years, and is the coauthor with Walter Adams on several books. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jason Nieva, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla 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 * * *