T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, May 8, 2008, Vol. 9, No. 91 Headlines A U S T R I A GK OBJEKTERRICHTUNG: Claims Registration Period Ends May 13 GOLF IMMOBILIENMAKLER: Claims Registration Period Ends June 10 KPS BIKE&CAR: Claims Registration Period Ends May 13 MAGNA ENTERTAINMENT: Posts US$46.5 Million Net Loss in 1st Qtr. B E L G I U M CHEMTURA CORP: S&P Cuts Ratings to BB; Still on Watch Developing FEDERAL-MOGUL: Posts US$32 Million Net Loss in 2008 1sr Qtr. FEDERAL-MOGUL: PepsiAmericas Seeks Okay on US$6MM Claims Payment F I N L A N D FAIRCHILD SEMICONDUCTOR: S&P Lifts Ratings on Debt Refinancing F R A N C E DOLLFUS MIEG: Paris Court Places Companies in Receivership SPANSION INC: Fitch Affirms Issuer Default Rating at B- G E R M A N Y ASB AUTOSERVICE: Claims Registration Period Ends May 28 AUTO-CENTER SELM: Claims Registration Period Ends May 28 AUTOMATEN SALES: Claims Registration Period Ends May 28 BOMBARDIER INC: Moody's Holds Ba2 Ratings on Improved Operations COMPLETTBAUHAUS GMBH: Claims Registration Period Ends May 28 EIKA WACHSWERKE: To Resume Candle Production After CRT Takeover ELBE - LOGISTIK: Claims Registration Period Ends May 28 ETT ELEKTRO-TECHNIK: Claims Registration Period Ends May 21 HELI-FLIGHT VERWALTUNGS: Claims Registration Period Ends May 20 KMT - KUNSTSTOFF: Claims Registration Period Ends May 16 L. U. B. AUTOHANDEL: Claims Registration Period Ends May 20 LA STEWARDING: Claims Registration Period Ends May 15 MOSER & HARMS: Claims Registration Ends May 27 PERMANENT PERFECT: Claims Registration Ends May 27 PETER ROTH: Claims Registration Ends May 28 PROTEK HAUSBAU: Claims Registration Ends May 27 SCHWEDLER GMBH: Claims Registration Ends May 27 TSK GMBH: Creditors' Meeting Slated for May 28 UBS AG: BlackRock In Talks for Fund to Manage Mortgage Assets I R E L A N D CAMBER 4: Moody's May Further Cut Junk Ratings After Review EIRLES TWO: Fitch Junks Rating on Series 219 Notes EIRLES TWO: Fitch Puts Junks Ratings on Four Builder 2 Notes EIRLES TWO: Fitch Cuts Ratings on Three Builder 3 Note Classes EIRLES TWO: Fitch Junks Rating on Class B and E Builder 4 Notes LUNAR FUNDING V: Fitch Cuts Ratings on Three Celts Leveraged MBS I T A L Y ALITALIA SPA: AirOne Links with Berlusconi Adviser on Stake Sale ALITALIA SPA: Unicredit Denies Possible Bid with Lufthansa FIAT SPA: Iveco Defers Entry Into the United States K A Z A K H S T A N AKTOBE TULPAR: Claims Deadline Slated for June 20 ARMAN-BATYR LLP: Claims Registration Ends June 25 CONCEPT-AUTODIAGNOSTIKA LLP: Creditors' Claims Due on June 20 EKIBASTUZ STROYPUT: Creditors Must File Claims by June 25 KAZTECHMASH LLP: Claims Deadline Slated for June 25 KOKSHETAU AGROPROMTECHNIKA: Claims Filing Period Ends June 25 KURYLYS IPOTEKA: Asset Sale Slated for May 12, 2008 KURYLYS-ORTALYGY LLP: Creditors Must File Claims by June 20 TEMIRBANK: Moody's Lowers Unsecured Debt Ratings to Ba3 K Y R G Y Z S T A N SMEN-STROY LLC: Creditors Must File Claims by June 13 L U X E M B O U R G LECTA SA: Moody's May Further Cut Ba3 Rating After Review N E T H E R L A N D S IMAX CORP: Amends Facility; Sells US$18MM in Common Shares IMAX CORPORATION: Shareholders' Meeting Scheduled for June 18 P O L A N D ELEKTRIM SA: Enea May Not Get Consent to Acquire ZEPAK Shares PRIMA CHARTER: Warsaw Court Declares Bankruptcy R U S S I A APRIL-PLUS CJSC: Creditors Must File Claims by May 26 BUTTER-CHEESE DIARY: Creditors Must File Claims by May 26 OKAMET LLC: Creditors Must File Claims by May 26 OM-STROY CJSC: Omsk Bankruptcy Hearing Slated for September 2 S-L-S CJSC: Court Names P. Paramzin as Insolvency Manager SIB-REM-SERVICE: Creditors Must File Claims by June 26 TSVILLINGSKIY ELEVATOR: Creditors Must File Claims by May 26 S P A I N * Companies Filing for Insolvencies in Spain Up by 79% S W E D E N DOLE FOOD: Posts US$28.9 Million Net Loss in Qtr. Ended March 22 DOLE FOOD: Fitch Says Credit Protection Measures Still Weak S W I T Z E R L A N D DORIS DAMEN: Creditors' Liquidation Claims Due by May 18 ING. N. FURNSINN: Proofs of Claim Filing Deadline is May 18 LINAX JSC: Liestal Court Commences Bankruptcy Proceedings LEO RICKENBACH: Sursee Court Initiates Bankruptcy Proceedings MAILWEASEL LLC: Creditors' Proofs of Claim Due by May 18 RESTAURANT SCHWEIZERHOF: Creditors' Claims Due by May 17 SANDRO KORKEL: Creditors' Liquidation Claims Due by May 18 STYLE LLC: Deadline for Filing Proofs of Claim is May 18 TEMPUS SERVICE: Creditors' Proofs of Claim Due by May 17 U K R A I N E BREADMAKER LLC: Creditors Must File Claims by May 17 CITADEL BUILDING: Proofs of Claim Deadline Set May 17 DNIPRO CJSC: Proofs of Claim Deadline Set May 21 INTERFICOM LLC: Creditors Must File Claims by May 18 OBRIY LLC: Creditors Must File Claims by May 18 POGREBISCHEAL AGRICULTURAL: Proofs of Claim Deadline Set May 21 RITA-LTD: Proofs of Claim Deadline Set May 18 SVETLANA LLC: Proofs of Claim Deadline Set May 18 ZEMLIA LLC: Creditors Must File Claims by May 18 U N I T E D K I N G D O M ALPHASTREAM INTERNATIONAL: Taps Liquidators from Vantis BAA LIMITED: Manchester Airports Group May Acquire Assets BRITISH ENERGY: Centrica & EDF in Talks over Possible Bid BURNLEY PACKAGING: Brings In Liquidators from Tenon Recovery CHRYSLER LLC: Fitch Cuts Issuer Default Rating to B from B+ CLARIS LTD: Moody's Cuts Rating to B2 on Napa Valley VI Notes EOS AIRLINES: Wants to Hire Kurtzman Carson as Claims Agent EOS AIRLINES: Wants Alvarez & Marsal as Financial Advisor FORD MOTOR: Fitch Says Ratings Outlook Remains Negative GENERAL MOTORS: Fitch Says Ratings Could Face Likely Downgrade INSTORE DESIGN: David Elliott Leads Liquidation Procedure NORTHAMPTON PRINT: Calls In Liquidators from Tenon Recovery PHOENIX 2002-1: Moody's May Further Cut Ba1 Rating After Review SOUTH COAST: Appoints Liquidators from Tenon Recovery SPLASHPOWER LTD: Fulton Acquires Business and Assets THE WORKS: Inks GBP17 Million Management Buy-In Deal * UK Insolvency Helpline to Offer Repossession Counseling * S&P Places 24 European Cash CDO of ABS Tranches on Watch Neg. * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= GK OBJEKTERRICHTUNG: Claims Registration Period Ends May 13 ----------------------------------------------------------- Creditors owed money by LLC GK Objekterrichtung (FN 249739p) have until May 13, 2008, to file written proofs of claim to court-appointed estate administrator Gernot Goetz at: Mag. Gernot Goetz Tirolerstrasse 18 9800 Spittal/Drau Austria Tel: 04762/53 52, 24 75 Fax: 04762/2766 E-mail: rechtsanwaelte@hammerschmidt-goetz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on May 19, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Room 235 Second Floor Klagenfurt Austria Headquartered in Obervellach, Austria, the Debtor declared bankruptcy on April 15, 2008 (Bankr. Case No. 41 S 39/08w). GOLF IMMOBILIENMAKLER: Claims Registration Period Ends June 10 -------------------------------------------------------------- Creditors owed money by LLC Golf Immobilienmakler (FN 42206v) have until June 10, 2008, to file written proofs of claim to court-appointed estate administrator Christof Stapf at: Dr. Christof Stapf c/o Mag. Michael Neuhauser Esslinggasse 7 1010 Vienna Austria Tel: 90 333 Fax: 90 333 44 E-mail: wien@snwlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 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 15, 2008 (Bankr. Case No. 4 S 49/08w). Michael Neuhauser represents Dr. Stapf in the bankruptcy proceedings. KPS BIKE&CAR: Claims Registration Period Ends May 13 ---------------------------------------------------- Creditors owed money by LLC KPS Bike&Car Handel (FN 252154s) have until May 13, 2008, to file written proofs of claim to court-appointed estate administrator Harald Skrube at: Dr. Harald Skrube Peraustrasse 19 9500 Villach Austria Tel: 04242/24123 Fax: 04242/23447 E-mail: kanzlei@rechtsanwalt-villach.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on May 20, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Room 225 Second Floor Klagenfurt Austria Headquartered in Villach, Austria, the Debtor declared bankruptcy on April 15, 2008 (Bankr. Case No. 40 S 21/08s). MAGNA ENTERTAINMENT: Posts US$46.5 Million Net Loss in 1st Qtr. --------------------------------------------------------------- Magna Entertainment Corp. disclosed Tuesday its financial results for the first quarter ended March 31, 2008. Including discontinued operations, the company reported a net loss of US$46.5 million for the quarter ended March 31, 2008, compared with net income of US$2.5 million in the same period last year. Discontinued Operations Discontinued operations for the three months ended March 31, 2008, and 2007, include the operations of Remington Park in Oklahoma, Thistledown in Ohio, Portland Meadows in Oregon, Great Lakes Downs in Michigan and Magna Racino(TM) in Austria. The net loss from discontinued operations was US$33.5 million for the three months ended March 31, 2008, compared to a net loss of US$3.2 million in 2007. The net loss in 2008 includes write-downs of US$29.2 million related to Magna Racino(TM) long- lived assets and US$3.1 million related to Instant Racing terminals and the associated facility at Portland Meadows. Revenues Revenues from continuing operations were US$231.0 million for the three months ended March 31, 2008, a decrease of US$23.2 million or 9.1% compared to US$254.2 million for the three months ended March 31, 2007. The decreased revenues from continuing operations were primarily due to a decline in California revenues of US$17.2 million due to a net loss of eight live race days at Santa Anita Park as a result of excessive rain and track drainage issues affecting the new synthetic racing surface that was installed in the fall of 2007. In addition, Golden Gate Fields ran one less live race day in the three months ended March 31, 2008, compared to the prior year period. EBITDA from Continuing Operations EBITDA from continuing operations decreased to US$15.9 million for the three months ended March 31, 2008, versus US$24.6 million for the three months ended March 31, 2007. Management's Comments Frank Stronach, chairman and interim chief executive officer commented: "We are very disappointed with our first quarter operating results, some of which can be attributed to weather and track drainage issues at Santa Anita Park beyond our control, and some of which reflect short-term disruptions as we continue to build out our Gulfstream Park commercial joint venture with Forest City. I remain fully committed to implementing the company's previously announced debt elimination plan, and to seeing the operating results dramatically improved. I remain optimistic about MEC's medium term prospects". Blake Tohana, executive vice-president and chief financial officer, commented: "Although the weak U.S. real estate and credit markets have slowed our progress to date on asset sales, we remain firmly committed to our debt elimination plan. In April 2008, we completed the sale of 225 acres of excess real estate located in Ebreichsdorf, Austria to a subsidiary of Magna International Inc. for a purchase price of EUR20.0 million (US$31.6 million). In January 2008, we sold our remaining two parcels of excess real estate located in Porter, New York for cash consideration of US$1.5 million. The net proceeds received from these transactions were used entirely to repay debt." Cash Flows During the three months ended March 31, 2008, cash used in continuing operations was US$3.6 million, which improved US$12.4 million from cash used in continuing operations of US$16.0 million in the three months ended March 31, 2007, primarily due to the increased loss from continuing operations being more than offset by increased depreciation, future tax expense and the write-down of long-lived assets and decreased balances relating to due from parent and other accrued liabilities relative to the prior year period. Cash provided from financing activities during the three months ended March 31, 2008, of US$16.9 million includes net borrowings of US$16.9 million from the company's controlling shareholder and US$500,000 from bank indebtedness, partially offset by net repayments of US$500,000 of long-term debt. The company said that although it continues to implement its debt elimination plan, the sale of assets under the debt elimination plan is taking longer than originally contemplated and, as a result, the company will likely need to seek extensions from existing lenders and additional funds in the short-term from one or more possible sources. Balance Sheet At March 31, 2008, the company's consolidated balance sheet showed US$1.2 billion in total assets, US$914.9 million in total liabilities, and US$318.2 million in total stockholders' equity. The company's consolidated financial statements at March 31, 2008, also showed strained liquidity with US$286.9 million in total current assets available to pay US$436.5 million in total current liabilities. Going Concern Disclaimer Ernst & Young LLP in Toronto, Canada, expressed substantial doubt about Magna Entertainment Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years Dec. 31, 2007, and 2006. The auditing firm pointed to the company's recurring operating losses and working capital deficiency. At March 31, 2008, the company had US$229.1 million of debt due to mature in the 12-month period ending March 31, 2009, including amounts owing under the company's US$40.0 million senior secured revolving credit facility with a Canadian financial institution, which is scheduled to mature on May 23, 2008, amounts owing under its bridge loan facility of up to US$80.0 million with a subsidiary of MI Developments Inc., the company's controlling shareholder, which is scheduled to mature on May 31, 2008, and the company's obligation to repay US$100.0 million of indebtedness under the Gulfstream Park project financings with a subsidiary of MID by May 31, 2008. About Magna Entertainment Headquartered in Aurora, Ontario, Magna Entertainment Corp. (Nasdaq: MECA)(TSX: MEC.A) -- http://www.magnaentertainment.com/ -- acquires, develops, owns and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities. The company also develops, owns and operates casinos in conjunction with its racetracks where permitted by law. The company has subsidiaries in Austria. ============= B E L G I U M ============= CHEMTURA CORP: S&P Cuts Ratings to BB; Still on Watch Developing ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior secured debt ratings of Chemtura Corp. to 'BB' from 'BB+'. The ratings remain on CreditWatch with developing implications, where they were placed Dec. 19, 2007. The downgrade reflects our expectation that cash flow protection measures will not strengthen to, and be sustained at, levels appropriate for the prior rating, although profitability should improve near term. "The CreditWatch developing reflects management's ongoing consideration of strategic alternatives, which calls into question its financial policies," said Standard & Poor's credit analyst Wesley E. Chinn. CreditWatch with developing implications means we could raise, lower, or affirm the ratings, depending on management's actions. Chemtura's diversified portfolio of specialty and industrial chemical businesses (generating annual revenues of over US$3.5 billion) presents management with a range of options. S&P would lower the ratings if a leveraged buyout of the firm were to occur or if management initiated actions detrimental to our expectations of prospective financial metrics. Conversely, we would raise the ratings if a substantially stronger entity acquired Chemtura, but this does not appear to be a strong possibility at this time. If management's review of strategic alternatives concludes that the company should not take any actions at this time, we could affirm the ratings and assign a stable outlook. This would be based on the expectation that the company will be able to achieve earnings progress in the next few years and that debt levels would not experience any increase because of acquisitions. Overall earnings for 2008 could show good improvement from 2007's weak results, helped by a strong agricultural economy in Europe, cost savings in pool chemicals, another strong contribution by the performance specialties segment (mostly the petroleum additives and urethanes businesses), and reduced manufacturing costs and selling, general, and administrative expenses in polymer additives. S&P also expect operating margins to strengthen from the lackluster 12% for 2007. However, the company's ability to increase selling prices and manage the continuing inflation in raw material and energy costs against the backdrop of a slowing U.S. economy will continue to be major challenges and constrain consolidated earnings progress. If Chemtura does not initiate any strategic actions near term, we expect acquisitions for the balance of 2008 to be limited to bolt-on transactions. Moreover, operating earnings for 2008 will benefit from lower total charges associated with facility closures and severance and impairment of long-lived assets, and reduced losses on the sale of assets, all arising from the substantial portfolio realignment projects of recent years. Outlays for legacy antitrust liabilities will also be lower. Consequently, the company could generate a moderate amount of discretionary cash flow this year, which it could use to partially address $400 million of debt due in 2009. Higher earnings as well as possible debt reduction would benefit the key funds from operations to adjusted debt ratio, which is expected to be in the area of 20% for 2008, up modestly from the prior year's performance. S&P views 20% to 25% as the target range for that cash flow protection measure for the current ratings. FEDERAL-MOGUL: Posts US$32 Million Net Loss in 2008 1sr Qtr. ------------------------------------------------------------ Federal-Mogul Corp. reported its first quarter 2008 financial results with record quarterly sales of US$1.86 billion, an increase of 8% over the same period of the prior year. According to a company press release, during the first quarter, the company recorded a one-time, non-cash charge of US$68 million relating to re-valuation of inventory, as required by fresh start reporting following emergence from Chapter 11 in December 2007. The company reported a net loss of US$32 million as compared to net income of US$5 million in the first quarter of 2007. Without the inventory charge and the associated tax impact, net income would have been US$32 million, or 2% of sales. Approximately US$206 million or 11% for Q1 2008, up from the same period in 2007 when the company reported Operational EBITDA of US$199 million. Financial Summary (in millions) Three Months Ended March 31 -------------- 2008 2007 ------ ------ Net sales US$1,859 US$1,716 Gross margin 266 308 Adjusted gross margin 335 308 Selling, general & admin expenses (209) (207) Net income (loss) (32) 5 Adjusted net income 32 5 Operational EBITDA 206 199 During the quarter, sales were US$1.86 billion, up US$143 million, or eight percent above the same period in 2007. The sales results were impacted by favorable currency exchange of US$120 million and increased sales of US$23 million, principally to European original equipment vehicle manufacturers. The company continues to benefit from strong new business bookings with balanced regional sales and a globally diverse customer base with no single customer accounting for more than seven percent of global sales as of Dec. 31, 2007. Federal-Mogul realized a gross margin of US$266 million or 14.3% of sales in the first quarter of 2008, versus US$308 million or 17.9% of sales in the first quarter of 2007. The gross margin was unfavorably impacted by a US$68 million, non-cash inventory adjustment previously discussed. Without the inventory adjustment, gross margin for the quarter would have been US$335 million, or 9% above the prior year and at 18% of sales. This improvement shows that the company maintained its operating performance in spite of ongoing raw materials, energy and other general industry cost pressure. Selling, general and administrative expense for the quarter was US$209 million, in comparison to US$207 million in the same period in 2007. SG&A as a percentage of sales was favorably reduced in the first quarter of 2008 to 11.2% compared to 12.1% in the same period a year ago. The change in SG&A comprised a reduction of US$8 million offset by unfavorable currency exchange of US$10 million during the quarter. Federal-Mogul reported cash flow for the first quarter of 2008 of US$49 million, which compares favorably to US$12 million in the same period of 2007. On April 23, Federal-Mogul listed its Class A Common Stock on the NASDAQ Global Market, and will trade under the symbol "FDML." "We are pleased to report a strong quarter, which shows the benefits of our solid operating performance, combined with our customer, regional and product line diversification. More than 60 percent of our revenue in the quarter was generated outside the U.S.," said President and Chief Executive Officer Jose Maria Alapont. "The operational EBITDA is improved as a result of our restructuring and cost-reduction efforts as outlined in our strategy for sustainable global profitable growth." At March 31, 2008, the Federal-Mogul's balance sheet total assets of US$8,245,200,000 and total liabilities of US$6,080,300,000, resulting in a US$2,164,900,000 billion stockholders' equity. A full-text-copy of Federal-Mogul Corp.'s First Quarter 2008 Results filed on Form 10-Q is available at no charge at: http://ResearchArchives.com/t/s?2b8a About Federal-Mogul Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (Nasdaq: FDML) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has subsidiaries in these countries: Argentina, Australia, Belgium, Bermuda, Brazil Canada, China, Czech Republic, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Mexico, Netherlands, Poland, Russia, Singapore, Spain, Switzerland, Taiwan, Thailand, and the United Kingdom. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. Federal-Mogul emerged from Chapter 11 on Dec. 27, 2007. (Federal-Mogul Bankruptcy News, Issue No. 167; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Federal-Mogul's Corporate Family Rating is rated by Moody's Investors Service at Ba3 with a stable outlook. Standard & Poor's Ratings Services meanwhile puts the company's corporate credit rating at BB-. S&P also put a stable outlook on the rating. FEDERAL-MOGUL: PepsiAmericas Seeks Okay on US$6MM Claims Payment ---------------------------------------------------------------- PepsiAmericas, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to allow Claim Nos. 6093 and 6441 as administrative priority expense claims and to direct Federal-Mogul Corp. and its debtor-affiliates to pay those claims. The Claims assert damages, aggregating more than US$6,000,000, arising from: -- the Reorganized Debtors' alleged breach of a purchase agreement with PepsiAmericas' predecessor; and -- damages incurred by PepsiAmericas as a result of a lawsuit the Reorganized Debtors filed in an Ohio state court relating to certain insurance policies. Kirk T. Hartley, Esq., at Butler Rubin Saltarelli & Boyd LLP, in Chicago, Illinois, asserts that the Claims are administrative claims and PepsiAmericas has a right to recover for its losses as administrative claims. Mr. Hartley relates that in December 2007, the Debtors filed an insurance coverage complaint in an Ohio state court seeking recovery from various insurers for expenses incurred in connection with various "environmental sites." The State Court Action includes allegations regarding the purported rights of the Debtors to recover monies from insurance policies issued to PepsiAmericas. Mr. Hartley asserts that by filing the State Court Action, the Reorganized Debtors have trespassed against the chattels of PepsiAmericas and have caused harm to PepsiAmericas. Mr. Hartley tells the Court that one of the insurer defendant, Liberty Mutual Insurance Company, demanded from PepsiAmericas reimbursement of all expenses and losses it incurred in connection with the State Court Action. He says the Reorganized Debtors have provided to PepsiAmericas some indications that they intend to limit or dismiss the claims in the State Court Action in the future. However, Mr. Hartley notes that there is no concrete assurances that the Debtors will accomplish a dismissal at a certain time. About Federal-Mogul Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (Nasdaq: FDML) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has subsidiaries in these countries: Argentina, Australia, Belgium, Bermuda, Brazil Canada, China, Czech Republic, France, Germany, Hong Kong, Hungary, India, Italy, Japan, Mexico, Netherlands, Poland, Russia, Singapore, Spain, Switzerland, Taiwan, Thailand, and the United Kingdom. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. Federal-Mogul emerged from Chapter 11 on Dec. 27, 2007. (Federal-Mogul Bankruptcy News, Issue No. 167; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Federal-Mogul's Corporate Family Rating is rated by Moody's Investors Service at Ba3 with a stable outlook. Standard & Poor's Ratings Services meanwhile puts the company's corporate credit rating at BB-. S&P also put a stable outlook on the rating. ============= F I N L A N D ============= FAIRCHILD SEMICONDUCTOR: S&P Lifts Ratings on Debt Refinancing -------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on South Portland, Maine-based Fairchild Semiconductor International Inc. to 'BB' from 'BB-'. The outlook is stable. At the same time, S&P affirmed the 'BB' issue-level rating on Fairchild Semiconductor Corp.'s senior secured credit facilities following the company's proposed US$100 million add-on to its US$375 million term loan. The recovery rating has been revised to '3', indicating the expectation for meaningful (50% to 70%) recovery in the event of a payment default, from '2'. The secured financing will consist of a US$475 million term loan and a US$100 million revolving credit facility upon close. The new debt will be issued under the existing credit agreement. Standard & Poor's also raised its issue-level rating on Fairchild Semiconductor Corp.'s senior subordinated debt to 'B+' (two notches below the 'BB' corporate credit rating on parent company Fairchild Semiconductor International) from 'B'. The recovery rating on this debt remains unchanged at '6', indicating the expectation for negligible (0% to 10%) recovery in the event of a payment default. S&P will withdraw both of these ratings upon redemption. The rating actions follow the company's announcement that it will refinance US$200 million of maturing senior subordinated debt with the proposed new senior secured debt, US$50 in million cash, and a draw on its revolving credit facility. Pro forma for the refinancing, leverage improves to about 1.8x, from 2.2x as of March 31, 2008. In addition to the modest impact that the refinancing will have on leverage, operational trends continue to improve modestly. "The rating on Fairchild reflects the company's low margins relative to peers, modest scale, and challenges to improving its product mix," said Standard & Poor's credit analyst Lucy Patricola. "These factors are offset partially by a solid financial profile, selected market strength, and diverse end markets." Fairchild is a vertically integrated manufacturer of a wide variety of power and logic analog semiconductors and integrated circuits. About Fairchild Semiconductor: Fairchild Semiconductor International Inc. (NYSE: FCS) -- http://www.fairchildsemi.com/-- is a supplier of power semiconductors. The company also supplies silicon and packaging technologies, manufacturing strength and system expertise for consumer, communications, industrial, portable, computing and automotive systems. An application-driven, solution-based semiconductor supplier, Fairchild provides online design tools and design centers worldwide. Outside the United States, the company has subsidiaries located in the United Kingdom, Germany, Italy, Japan, Hong Kong, Singapore, Malaysia, South Korea, Mexico, France, India, Mauritius, China, Philippines, Netherlands, Taiwan and Finland. =========== F R A N C E =========== DOLLFUS MIEG: Paris Court Places Companies in Receivership ---------------------------------------------------------- The Paris Commercial Court decided on May 5, 2008, to put Dollfus Mieg & Cie SA into court-ordered receivership (redressement judiciaire) with a six-month observation period, after having examined the cash positions of the DMC companies. The Court also placed these DMC units into receivership: * DMC Tissus with a three-month observation period; and * Loisirs & Creation store chain with a two-month observation period. With the support of the official receivers, these decisions give all the DMC companies the time required to find solutions allowing the interests of the staff and shareholders to be upheld and for a future to be mapped-out for these companies. By introducing appropriate solutions, it should enable all the companies to be provided with the means of facing-up to the constraints being placed on them: the fall of the dollar versus the euro, Asian imports and consumers� concerns about their spending power. As reported in the Troubled Company Reporter-Europe on May 5, 2008, the company notified its Central Works Councils that several Group companies (DMC SA, DMC Tissus and Loisirs & Creation) were experiencing liquidity problems. Headquartered in Paris, France, DMC Dollfus Mieg et Cie -- http://www.dmc.com/-- focuses on three core businesses: sportswear fabrics under the Saic Velcorex brand, DMC creative world and creative-leisure activities. The sportswear division is active in Europe and in the United States and produces corduroy and cotton fabric suitable for the sportswear and leisure clothing industry. DMC creative world specializes in embroidery and offers various types of needle art threads. The creative-leisure activities division operates a chain of 21 stores in France under the name Loisirs & Creation. It offers materials and accessories for handcrafts activities, including needle art, beadwork, fine arts, interior decoration, card- making and children's activities. According to Le Figaro, the group has more than EUR20 million of debt and has not paid its staff since April 2008. SPANSION INC: Fitch Affirms Issuer Default Rating at B- ------------------------------------------------------- Fitch Ratings has affirmed these ratings on Spansion Inc.: -- Issuer Default Rating at 'B-'; -- US$175 million senior secured revolving credit facility due 2010 at 'B/RR3'; -- US$625 million senior secured floating rate notes due 2013 at 'B/RR3'; -- US$225 million of 11.25% senior unsecured notes due 2016 at 'CCC/RR6'; and -- US$207 million of 2.25% convertible senior subordinated debentures due 2016 at 'CCC-/RR6'. The Rating Outlook remains Negative. Approximately US$1.2 billion of debt securities are affected. Ratings concerns and the Negative Outlook center on: i) Fitch's primary credit concern centers on Spansion's weak liquidity position and limited financial flexibility, which worsened during the first fiscal quarter ended March 30, 2008 due to ongoing cash usage. Nonetheless, Fitch believes the company's plans for meaningfully lower capital spending in the second half of 2008 and, likely, for 2009, should enable modestly positive free cash flow over this time-frame. In the first quarter ended March 30, 2008, free cash flow was negative US$171 million, as Spansion continued facilitizing its leading edge manufacturing facility (SP1), which it funded with increased borrowings by under revolving credit facilities, reducing available borrowing capacity to just over US$100 million. ii) Ongoing operating losses, despite the company's increased market share and richer sales mix. After consistently improving profitability in 2007, Spansion's operating margins declined meaningfully to a Fitch-estimated negative 17.8% for the first quarter ended March 31, 2008 versus negative 10.7% for the comparable prior year quarter, driven by higher than anticipated operating expenses. Nonetheless, Fitch expects the company's profitability will gradually improve throughout 2008 as it ramps SP1 and continues marginally internalizing currently outsourced manufacturing. Fitch believes significant profitability expansion will be somewhat constrained by a weakening operating environment, particularly as the company continues to gain share with leading global handset OEMs, who are predicting lower than anticipated demand for 2008 and higher mix of low-cost devices being sold into developing markets. iii) reduced albeit still substantial ongoing capital spending and research and development (R&D) requirements, which should exceed 30% of sales in 2008; iv) Spansion's current limited diversification beyond NOR flash memory markets (although emerging products are expected to address certain NAND and DRAM markets), which Fitch believes reduces the company's tolerance for shortfalls in the commercial success of its technology roadmap or delays in transitioning to ever smaller circuitry nodes. Fitch believes Spansion's leading competitors, Numonyx B.V. and Samsung Electronics Co., benefit from greater financial flexibility and, therefore, are better able to withstand challenging operating environments. The ratings are supported by Fitch's expectations that: i) Spansion will continue to gain market share in the NOR flash memory market over the next few years, driven by ongoing industry consolidation, including an opportunity to become a second source supplier for customers of Intel Corp. and STMicroelectronics N.V., which recently formed a NOR flash memory joint venture (JV), Numonyx; ii) beyond the near-term, Spansion's significant recent investments in leading edge manufacturing technology and ongoing transition to smaller circuit geometries, as well as development of foundry partnerships, should enable the company to achieves sustainable operating profitability through a normalized cycle; iii) Spansion's technology roadmap, including its MirrorBit and ORNAND architectures, will expand the company's addressable market beyond NOR flash memory, potentially strengthening Spansion's longer-term unit growth and profitability prospects. Free cash flow for the second quarter of 2008 meaningfully below Fitch's expectations (negative US$150 million) could result in negative rating actions. Fitch also believes that negative rating actions could result from cash usage in the third or fourth quarters in the absence of additional committed funding. At the same time, Fitch believes the ratings could be stabilized by the company bolstering liquidity with positive free cash flow and/or proceeds from selling non-core assets. As of March 30, 2008, Spansion's liquidity was weak and supported by: i) approximately US$455 million of cash and cash equivalents, of which approximately US$120 million consisted of auction rates securities that Fitch believes, given current market conditions, remain illiquid; ii) approximately US$102 million of availability under the company's revolving credit facilities (subject to certain borrowing base limitations), including Spansion Inc's US$175 million senior secured revolving credit facility due September 2010 supporting liquidity in the U.S. and JPY 14 billion (approximately US$140 million as of Mar. 30, 2008) senior secured revolving credit facility due December 2009 supporting the company's wholly-owned subsidiary, Spansion Japan's, liquidity. Spansion's total debt as of Mar. 30, 2008 was US$1.7 billion and Fitch believes consisted of: i) approximately US$380 million outstanding under a JPY 48.8 billion (approximately US$484 million as of Mar. 30, 2008) Spansion Japan's senior secured credit facility expiring 2010; ii) approximately US$625 million of floating rate senior secured notes due 2013; iii) approximately US$225 million of 11.25% senior unsecured notes due 2016; iv) US$207 million of 2.25% exchangeable senior subordinated debentures due 2016; and v) approximately US$208 million of other debt, including the aforementioned borrowings under various credit facilities and capital leases. The Recovery Ratings and notching reflect Fitch's expectation that Spansion's enterprise value, and hence recovery rates for its creditors, will be maximized as a going concern rather than as in liquidation under a distressed scenario. The lower recovery ratings incorporate Spansion's meaningful decline in operating EBITDA and increased debt levels over the past several quarters, as well as a greater proportion of secured debt within the capital structure. Fitch's analysis assumes Spansion is not restricted by covenants or borrowing bases to fully draw down on its existing bank credit facilities. Given the erosion of Spansion's profitability to nearly distressed levels over the past several quarters, Fitch has reduced the discount to operating EBITDA (in estimating distressed operating EBITDA) for 2007 to 25% from the previous discount of 55%. Fitch believes of US$800 million of rated senior secured debt, including US$625 million of senior secured floating rate notes and a fully drawn US$175 million U.S. revolving bank credit facility, would recover 51%-70% in a reorganization scenario, resulting in a 'RR3' recovery rating. A waterfall analysis provides 0%-10% recovery for the approximately US$225 million of rated senior unsecured debt and US$207 million of senior subordinated notes, both resulting in a recovery rating of 'RR6'. Headquartered in Sunnyvale, California, Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- designs, develops, manufactures, markets and sells flash memory solutions for wireless, automotive, networking and consumer electronics applications. Spansion(R), the Spansion Logo(R), MirrorBit(R), MirrorBit(R) Eclipse(TM), ORNAND(TM), ORNAND2(TM), HD-SIM(TM) and combinations thereof, are trademarks of Spansion LLC. Spansion, the Spansion Logo and MirrorBit are registered in the US and other countries. The company's European unit, Spansion EMEA, is based is France. Spansion Japan Limited, is the company's unit and is headquartered in Japan. ============= G E R M A N Y ============= ASB AUTOSERVICE: Claims Registration Period Ends May 28 ------------------------------------------------------- Creditors of ASB Autoservice & Handel GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Dr. Hubertus Bartelheimer. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on June 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt (Oder) Hall 401 Muellroser Chaussee 55 15236 Frankfurt (Oder) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hubertus Bartelheimer Bernburger Strasse 32 10963 Berlin Germany The District Court of Frankfurt (Oder) opened bankruptcy proceedings against ASB Autoservice & Handel GmbH on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ASB Autoservice & Handel GmbH Kalkberger Str. 25-35 15566 Schoeneiche Germany AUTO-CENTER SELM: Claims Registration Period Ends May 28 -------------------------------------------------------- Creditors of Auto-Center Selm GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Dr. Sabine Aldermann. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on July 2, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Gerichtsplatz 22 44135 Dortmund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sabine Aldermann Landgrafenstr. 2 a 44139 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Auto-Center Selm GmbH on April 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto-Center Selm GmbH Attn: Detlev Lueckel, Manager Schachtstr. 1 59379 Selm Germany AUTOMATEN SALES: Claims Registration Period Ends May 28 ------------------------------------------------------- Creditors of Automaten Sales + Services ASS GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Werner Maier. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Esslingen Hall One First Floor Ritterstr.5 (Eingang Strohstrasse) Esslingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Werner Maier Gansheidestr. 1 70184 Stuttgart Germany Tel: 0711/16433-0 Fax: 0711/16433-50 The District Court of Esslingen opened bankruptcy proceedings against Automaten Sales + Services ASS GmbH on March 20, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Automaten Sales + Services ASS GmbH Hofwiesen 20 72622 Nuertingen Germany BOMBARDIER INC: Moody's Holds Ba2 Ratings on Improved Operations ---------------------------------------------------------------- Moody's Investors Service changed the rating outlook for Bombardier Inc. to positive from stable and affirmed the company's Ba2 corporate family, Ba2 senior unsecured and SGL-2 liquidity ratings. The outlook change reflects Moody's belief that Bombardier's record backlog levels and strong demand from international end- markets positions the company for continued revenue growth, profitability improvements and cash flow generation into the medium term. Coupled with the meaningful reduction in debt levels that occurred towards the end of the company's last fiscal year, the balance of the company's key credit metrics are likely to evidence continuing improvement, bolstering support for upwards rating momentum. These ratings have been affirmed: -- Corporate family rating at Ba2 -- Probability of default rating at Ba2 -- Senior unsecured debt rating at Ba2 (to LGD4, 52% from LGD4, 54%) -- Speculative grade liquidity rating at SGL-2 Outlook Actions: -- Outlook, Changed To Positive From Stable "Bombardier's sizeable backlog in each of its two business segments positions the company for further growth and margin improvement beyond the gains achieved in fiscal 2008", Darren Kirk, lead analyst with Moody's said. Bombardier's fiscal 2008 operating results evidenced continued improvement driven by strong demand for business jets, turboprops and Transportation segment products and services. A prolonged period of declining demand for regional jet products appears to have stabilized, which also contributed to the good results. Despite the poor financial condition of the airline industry and challenging economic backdrop in the U.S., reducing dependence on the U.S. market for cyclical aerospace activity and record backlog levels in each of Bombardier's business segments, provide the basis for continued operating momentum. Targeted operating margins of 8% in the Aerospace segment have essentially been attained while Transportation segment margins continue to improve toward the company's goal of 6% by fiscal 2010. The company's ability to further enhance current coverage and cash flow metrics through sustained margin improvement remains a key factor influencing the rating. Lower interest costs associated with recent debt reductions should amplify improvement to key credit metrics through fiscal 2009 from levels that have in recent history constrained the Ba2 rating. Bombardier's liquidity profile is good summarized by significant balance sheet cash with no near term debt maturities, and a positive free cash flow profile. Lack of committed bank operating lines for funded borrowing constrains the liquidity rating at SGL-2. The Company's good liquidity profile and favorable cash flow trends may eventually be counterbalanced by incremental financial and operating risks associated with the potential investment in the CSeries mainline aircraft. "The company's improving credit profile should nonetheless provide the capacity to absorb these risks within context of its rating and outlook", Kirk added. Bombardier Inc., headquartered in Montreal, Quebec, is a diversified manufacturing company involved in the aerospace and transportation markets. The company manufactures rail equipment through its Bombardier Transportation unit. Bombardier Transport's Europe management office is located in Germany. The company also has production facilities in France, Spain, Switzerland, Belgium, Italy, Austria, Hungary, Czech Republic, Poland, Denmark, Sweden, Norway an the United Kingdom. Other production facilities are located at Brazil, China, India and Australia. COMPLETTBAUHAUS GMBH: Claims Registration Period Ends May 28 ------------------------------------------------------------ Creditors of Complettbauhaus GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Katrin Bringezu. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on June 25, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 138 Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Katrin Bringezu Prager Strasse 34 04317 Leipzig Germany Tel: 0341/486930 Fax: 0341/4869393 E-mail: leipzig@hbml.de The District Court of Leipzig opened bankruptcy proceedings against Complettbauhaus GmbH on April 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Complettbauhaus GmbH Attn: Andreas Porstmann, Manager Albertstrasse 6 04720 Doebeln Germany EIKA WACHSWERKE: To Resume Candle Production After CRT Takeover --------------------------------------------------------------- Candle production at Eika Wachswerke Fulda GmbH is expected to resume following Cukierman Rasenberger Toschek's takeover of the company, Financial Times Deutschland reports. Eika's new managing director Peter Rasenberger said that CRT plans to make the insolvent company profitable again, FT relates. The FT adds that the company will keep 160 of its workers. As previously reported in the TCR-Europe, The District Court of Fulda opened bankruptcy proceedings against Eika on April 1, 2008 with Sandra Mitter serving as its insolvency manager. Then managing director Thomas Schunke said that the company could no longer pay its banks and suppliers as a result of having too many orders in hand and too few sales. Headquartered in Fulda, Germany, Eika Wachswerke Fulda GmbH -- http://www.eika.de/-- produces handmade candles. The company existed since 1824. Eika had EUR40 million in annual turnover. ELBE - LOGISTIK: Claims Registration Period Ends May 28 ------------------------------------------------------- Creditors of ELBE - LOGISTIK GmbH have until May 28, 2008, to register their claims with court-appointed insolvency manager Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 30, 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 Pinneberg Hall 5 Station Route 17 25421 Pinneberg 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: Dirk Decker Julius-Vosseler-Strasse 42 22527 Hamburg Germany The District Court of Pinneberg opened bankruptcy proceedings against ELBE - LOGISTIK GmbH on April 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ELBE - LOGISTIK GmbH Attn: Mile Acimovic, Manager Luetten Stieg 8 25474 Ellerbek Germany ETT ELEKTRO-TECHNIK: Claims Registration Period Ends May 21 ----------------------------------------------------------- Creditors of ETT Elektro-Technik GmbH have until May 21, 2008, to register their claims with court-appointed insolvency manager Barbara Fritzer. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schweinfurt Meeting Hall 22 Eingang Friedenstr. 2 Schweinfurt 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: Barbara Fritzer Bischofsberg 28 97638 Mellrichstadt Germany Tel: 09776/706700 Fax: 09776/706701 The District Court of Schweinfurt opened bankruptcy proceedings against ETT Elektro-Technik GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ETT Elektro-Technik GmbH Schwemmweg 6 g 97493 Bergheinfeld Germany HELI-FLIGHT VERWALTUNGS: Claims Registration Period Ends May 20 --------------------------------------------------------------- Creditors of HELI-FLIGHT Verwaltungs GmbH have until May 20, 2008, to register their claims with court-appointed insolvency manager Ottmar Hermann. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Friedberg (Hessen) Hall 236 Second Floor Homburger Strasse 18 61169 Friedberg (Hessen) 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: Ottmar Hermann Bleichstrasse 2-4 60313 Frankfurt (Main) Germany Tel: (069) 9130920 Fax: (069) 913092-30 The District Court of Friedberg (Hessen) opened bankruptcy proceedings against HELI-FLIGHT Verwaltungs GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HELI-FLIGHT Verwaltungs GmbH Flugplatz Reichelsheim 61203 Reichelsheim Germany KMT - KUNSTSTOFF: Claims Registration Period Ends May 16 -------------------------------------------------------- Creditors of KMT - Kunststoff und Metallteile GmbH have until May 16, 2008, to register their claims with court-appointed insolvency manager Hans Peter Runkel. Creditors and other interested parties are encouraged to attend the meeting at 10:55 a.m. on June 5, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans Peter Runkel Friedrich-Ebert-Strasse 146 42117 Wuppertal Germany Tel: 0202/30 20 71 Fax: 0202/31 47 08 The District Court of Wuppertal opened bankruptcy proceedings against KMT - Kunststoff und Metallteile GmbH on April 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KMT - Kunststoff und Metallteile GmbH Liegnitzer Strasse 7 42277 Wuppertal Germany L. U. B. AUTOHANDEL: Claims Registration Period Ends May 20 ----------------------------------------------------------- Creditors of L. u. B. Autohandel GmbH have until May 20, 2008, to register their claims with court-appointed insolvency manager Frauke Heier. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on June 10, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hagen Hall 252 Second Floor Heinitzstrasse 42/44 58097 Hagen 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: Frauke Heier Hochstr. 124 58095 Hagen Germany The District Court of Hagen opened bankruptcy proceedings against L. u. B. Autohandel GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: L. u. B. Autohandel GmbH Baarstr. 241 58636 Iserlohn Germany LA STEWARDING: Claims Registration Period Ends May 15 ----------------------------------------------------- Creditors of LA Stewarding Service GmbH have until May 15, 2008, to register their claims with court-appointed insolvency manager Anton Rosenauer. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on May 29, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Room 178 70190 Stuttgart Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Anton Rosenauer Industriestr. 3 70565 Stuttgart Germany Tel: 0711/2 31 75 93 Fax: 0711/2 31 75 94 The District Court of Stuttgard opened bankruptcy proceedings against LA Stewarding Service GmbH on April 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LA Stewarding Service GmbH Lehmweg 17 20251 Hamburg Germany MOSER & HARMS: Claims Registration Ends May 27 ---------------------------------------------- Creditors of Moser & Harms GmbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Heiko Fialski. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on July 8, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Reinbek Parkallee 6 21465 Reinbek Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Heiko Fialski Johannes-Brahms-Platz 1 20355 Hamburg Germany The District Court of Reinbek opened bankruptcy proceedings against Moser & Harms GmbH on April 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Moser & Harms GmbH Attn: Rolf Rockensack, Manager Industriestrasse 17 23843 Bad Oldesloe Germany PERMANENT PERFECT: Claims Registration Ends May 27 -------------------------------------------------- Creditors of Permanent Perfect GmbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Klaus E. Breithaupt. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus E. Breithaupt Baierbrunner Str. 25 81379 Munich Germany Tel: 089/45 22 77-0 Fax: 089/45 22 77-29 The District Court of Munich opened bankruptcy proceedings against Permanent Perfect GmbH on March 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Permanent Perfect GmbH Robert-Koch-Str. 12 82031 Gruenwald Germany PETER ROTH: Claims Registration Ends May 28 ------------------------------------------- Creditors of Peter Roth GmbH have until May 28, 2008 to register their claims with court-appointed insolvency manager Guenter Staab. Claims will be verified at 2:00 p.m. on June 25, 2008 at: The District Court of Saarbruecken Meeting Hall 24 Second Floor Vopeliusstrasse 2 66280 Sulzbach Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Guenter Staab Sulzbachstrasse 26 66111 Saarbruecken Germany Tel: (0681) 3090 416 Fax: (0681) 3090 456 The District Court of Saarbruecken opened bankruptcy proceedings against Peter Roth GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Peter Roth GmbH Attn: Heinz Ptak, Manager Fasanerieweg 12 66121 Saarbruecken Germany PROTEK HAUSBAU: Claims Registration Ends May 27 ----------------------------------------------- Creditors of PROTEK Hausbau Projektentwicklungs- und Bauplanungsgesellschaft mbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Dr. Friedrich Seggebruch. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin 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. Friedrich Seggebruch Damaschkestrasse 21 10711 Berlin Germany The District Court of Neuruppin opened bankruptcy proceedings against PROTEK Hausbau Projektentwicklungs- und Bauplanungsgesellschaft mbH on April 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PROTEK Hausbau Projektentwicklungs- und Bauplanungsgesellschaft mbH Neuendorfstr. 18 a 16761 Hennigsdorf Germany Attn: Dirk Mueller, Manager Kuckucksruf 18 16761 Stolpe Germany SCHWEDLER GMBH: Claims Registration Ends May 27 ----------------------------------------------- Creditors of Schwedler GmbH have until May 27, 2008 to register their claims with court-appointed insolvency manager Dr. Oliver Kirschne. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Heilbronn Hall 4 Ground Floor Rollwagstr. 10a 74072 Heilbronn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Oliver Kirschnek Kriegerstrasse 3 70191 Stuttgart Germany Tel: 0711/225583-0 Fax: 0711/225583-20 The District Court of Heilbronn opened bankruptcy proceedings against Schwedler GmbH on April 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schwedler GmbH Attn: Hans Schwedler, Manager Froebelstrasse 10 74321 Bietigheim-Bissingen Germany TSK GMBH: Creditors' Meeting Slated for May 28 ---------------------------------------------- Creditors of TSK GmbH have until May 28, 2008 to register their claims with court-appointed insolvency manager Johannes Franke. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on June 11, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will verify the claims set out in the insolvency manager's report at 11:20 a.m. on July 9, 2008 at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Johannes Franke Verdener Platz 1 30419 Hannover Germany Tel: 0511 794573 Fax: 0511 794576 The District Court of Hannover opened bankruptcy proceedings against TSK GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TSK GmbH Kessellande 10 30900 Wedemark Germany Attn: Ulrich Grupp, Manager Schoenbuchstrasse 7 72124 Pliezhausen Germany UBS AG: BlackRock In Talks for Fund to Manage Mortgage Assets ------------------------------------------------------------- BlackRock Inc. has engaged in talks to create a fund that would hold and sell UBS AG's mortgage assets, eyeing returns of more than 15%, Hui-yong Yu writes for Bloomberg News, citing unnamed people close to the situation. The move, Bloomberg says, is aimed at helping the Switzerland- based bank recover from US$38 billion in subprime-related writedowns. Bloomberg relates that while BlackRock, which manages the bank's about US$1.4 trillion of assets, is seeking cash from investors, talks may not lead to an agreement. Both parties, however, declined to comment, the paper states. UBS had earlier said it will prepare its investment banking business for a possible sale in two to three years' time. UBS will pursue the plan if future U.S. laws require a separation of its business and investment banks, the Swiss Federal Banking Commission raises capital requirements for investment banks, or if the unit can't be made profitable. For the first quarter of 2008, UBS expects to report a net loss attributable to shareholders of approximately CHF12 billion (US$11.83 billion) after losses and writedowns of approximately US$19 billion on U.S. real estate and related structured credit positions. UBS is the worst hit bank by the U.S. mortgage lending crisis. UBS AG -- http://www.ubs.com/-- together with its subsidiaries, provides a range of financial products and services worldwide. UBS' businesses are Global Wealth Management and Business Banking, Global Asset Management, and Investment Banking. The company was founded in 1862 and is based in Zurich, Switzerland. Its Wealth management services in the United States are provided by UBS Financial Services Inc. UBS' U.S. headquarters is at 1285 Avenue of the Americas, New York, NY. ============= I R E L A N D ============= CAMBER 4: Moody's May Further Cut Junk Ratings After Review ----------------------------------------------------------- Moody's Investors Service downgraded and left on review for downgrade five classes of notes issued by Camber 4 plc. These rating actions are a response to credit deterioration in the underlying portfolio. The underlying assets of this CDO transaction are predominantly 2004 - 2007 vintage US subprime RMBS (36.5%) and US ABS CDOs (11.1%). Moody's announced on Feb. 04, 2008 that it is revising its expected loss assumptions which are used for surveillance of ratings of ABS CDOs holding subprime RMBS, specifically of the 2006 vintage. Moody's stated that for purposes of monitoring its ratings of ABS CDOs with exposure to 2006 subprime RMBS, it will rely on certain projections of the lifetime average cumulative losses for 2006's quarterly vintages of RMBS set forth in a recent Moody's Special Report, "Moody's Updates Loss Projections for 2006 Subprime Loans." This report illustrates average loss results for the 2006 quarterly vintages under five distinct loss projection scenarios. Moody's explained that it will utilise the range of loss projections set forth in Scenarios 2 and 3 based on deal performance and quarterly vintage to modify its prior assumptions of the expected loss inputs when monitoring ABS CDO ratings. Moody's will continue to monitor all deals with exposure to US subprime RMBS, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS vintages becomes known. These rating actions are: Camber 4 plc: (1) US$790,000,000 Class A1-A Floating Rate Notes due 2053 (currently US$789,756,141.68 outstanding) -- Current Rating: Aa1, on review for downgrade -- Prior Rating: Aaa (2) US$60,000,000 Class A2 Floating Rate Notes due 2053 -- Current Rating: Baa3, on review for downgrade -- Prior Rating: Aaa (3) US$23,000,000 Class A3 Floating Rate Notes due 2053 -- Current Rating: B2, on review for downgrade -- Prior Rating: Aaa (4) US$11,500,000 Class B Floating Rate Notes due 2053 -- Current Rating: Caa2, on review for downgrade -- Prior Rating: Aa2 (5) US$12,000,000 Class C Floating Rate Notes due 2053 (currently US$10,941,362.55 outstanding) -- Current Rating: Caa3, on review for downgrade -- Prior Rating: A3 EIRLES TWO: Fitch Junks Rating on Series 219 Notes -------------------------------------------------- Fitch Ratings downgraded Eirles Two's US$20m Series 219 notes (XS0231043349) to 'CCC' from 'A' and removed it from Rating Watch Negative. Eirles Two Series 219 is a synthetic collateralised debt obligation referencing a US$1.35bn portfolio of mainly U.S. structured finance assets. At close, Eirles Two, a public limited company incorporated in Ireland, entered into a credit default swap (CDS) agreement with Deutsche Bank AG (Deutsche, rated 'AA-' (AA minus)/Outlook Stable/'F1+') under which Deutsche bought US$20m protection on the reference portfolio. To fund its obligations under the CDS agreement, Eirles Two issued a total of US$20m in credit-linked notes and entered into an asset swap with Deutsche. Under the terms of the asset swap, Deutsche receives the note proceeds and deposits them into an interest-bearing deposit account. During the life of the transaction, in exchange for receiving interest on the deposit account under the asset swap, Deutsche will pay an amount equivalent to the USD LIBOR component of note interest. The portfolio is managed by Faxtor Securities BV. Although the transaction is now static, the asset manager has the ability to remove credit-impaired assets throughout the life of the deal. Fitch's rating action reflects higher loss expectations due to greater-than-expected collateral deterioration in Eirles Two Series 219's portfolio. The negative credit migration is primarily attributable to the rapid credit deterioration in subprime residential mortgage-backed securities (RMBS) from the 2004 and 2005 vintages. The portfolio comprises U.S. subprime RMBS (59.8%), and Alternative A (Alt-A) mortgage loans (11.7%). Subprime RMBS of the pre-2005, and 2005 vintages account for approximately 20% and 48% of the portfolio, respectively. At the time of the rating action in November 2007, there were no assets in the 'CCC+' and below bucket and only 2.6% of the portfolio was sub- investment grade. As per the latest trustee report dated March 2008, 8.95% of the portfolio is rated 'CCC+' or below, and 27.3% of the portfolio is rated 'BB+' or below. Furthermore, this compares to the current credit enhancement level of 9.45%. EIRLES TWO: Fitch Puts Junks Ratings on Four Builder 2 Notes ------------------------------------------------------------ Fitch has downgraded Series 160 and 143 of Builder 2 Eirles Two Limited and affirmed Series 144 and 145. All series have been removed from Rating Watch Negative where they were originally placed on Feb. 27, 2008. The ratings are: -- EUR21m Series 160 (ISIN: XS0211759864): Downgraded to 'CC' from 'B+'; removed from RWN -- US$37.2m Series 143 (ISIN:XS0208743418): Downgraded to 'CC' from 'B'; removed from RWN -- USD35.7m Series 144 (ISIN: XS0208743178): Affirmed at 'CC'; removed from RWN -- USD7.1m Series 145 (ISIN: XS0208742873): Affirmed at 'CC'; removed from RWN Eirles Two Limited is a special purpose vehicle incorporated under the laws of Ireland. The notes have a scheduled maturity date of December 22, 2044 and absorb the credit risk of credit default swaps with Deutsche Bank AG London (Deutsche). The credit default swaps with Deutsche reference a portfolio of asset-backed securities (ABS) obligations. Fitch's rating action reflects higher loss expectations due to greater than expected collateral deterioration in Builder 2's portfolio. The negative credit migration is primarily attributed to the rapid credit deterioration in US structured finance CDOs from 2005 and 2006 vintages, as well as exposure to subprime residential mortgage backed securities (RMBS) from the 2006 vintage. The portfolio is comprised of US subprime RMBS (4.12%), Alternative A (Alt-A) mortgage loans (17.29%) and US diversified structured finance CDOs (39.93%). US structured finance CDOs of the 2005, 2006 and 2007 vintages account for approximately 15.72%, 14.10% and 2.39% of the portfolio, respectively. During the rating action in November 2007, only 1.7% of the portfolio was rated 'CCC+' or below and 0.0% of the portfolio was rated 'BB+' or below. As per the portfolio from the latest trustee report dated April 2008, 5.44% of the portfolio is rated 'CCC+' or below and 10.46% of the portfolio is rated 'BB+' or below. This compares to credit enhancement levels of 6.61%, 4.00%, 1.50% and 1.00% for series 160, 143, 144 and 145, respectively. EIRLES TWO: Fitch Cuts Ratings on Three Builder 3 Note Classes -------------------------------------------------------------- Fitch today downgraded all three classes of Builder 3 Eirles Two Limited Series 283, 284 and 285. All classes have been removed from Rating Watch Negative where they were originally placed on Feb. 27, 2008. The ratings are: -- US$42m Class B (ISIN: XS0266515658): Downgraded to 'CC' from 'B'; removed from RWN -- US$22.5m Class C (ISIN: XS0266514842): Downgraded to 'CC' from 'CCC'; removed from RWN -- US$18m Class D (ISIN: XS0266514099): Downgraded to 'C' from 'CC'; removed from RWN Eirles Two Limited is a special purpose vehicle incorporated under the laws of Ireland. The notes have a scheduled maturity date of September 6, 2046 and absorb the credit risk of credit default swaps with Deutsche Bank AG London (Deutsche). The credit default swaps with Deutsche reference a portfolio of asset-backed securities (ABS) obligations. Fitch's rating action reflects higher loss expectations due to greater than expected collateral deterioration in Builder 3's portfolio. The negative credit migration is primarily attributed to the rapid credit deterioration in US structured finance CDOs and subprime residential mortgage backed securities (RMBS) both from the 2006 vintage. The portfolio is comprised of US subprime RMBS (8.46%), Alternative A (Alt-A) mortgage loans (12.99%) and US diversified structured finance CDOs (35.63%). US structured finance CDOs of the 2005, 2006 and 2007 vintages account for approximately 4.67%, 22.53%, and 2.35% of the portfolio, respectively. During the rating action in November 2007, only 0.7% of the portfolio was rated 'CCC+' or below and 0.0% of the portfolio was rated 'BB+' or below. As per the portfolio from the latest trustee report dated April 2008, 6.05% of the portfolio is rated 'CCC+' or below and 12.39% of the portfolio is rated 'BB+' or below. This compares to credit enhancement levels of 4.20%, 2.70% and 1.50% for classes B, C, and D, respectively. EIRLES TWO: Fitch Junks Rating on Class B and E Builder 4 Notes --------------------------------------------------------------- Fitch has downgraded the class B and E notes of Builder 4 Eirles Two Limited and affirmed the class C and D notes. All classes have been removed from Rating Watch Negative where they were originally placed on Feb. 27, 2008. The ratings are: -- US$42m Class B (ISIN: XS0266513281): Downgraded to 'CCC' from 'BB-' (BB minus); removed from RWN -- US$22.5m Class C (ISIN: XS0266516540): Affirmed at 'CCC'; removed from RWN -- US$18m Class D (ISIN: XS0266516110): Affirmed at 'CC'; removed from RWN -- EUR10m Class E: Downgraded to 'C' from 'CC'; removed from RWN Eirles Two Limited is a special purpose vehicle incorporated under the laws of Ireland. The notes have a scheduled maturity date of Sept. 6, 2046 and absorb the credit risk of credit default swaps with Deutsche Bank AG London (Deutsche). The credit default swaps with Deutsche reference a portfolio of asset-backed securities (ABS) obligations. Fitch's rating action reflects higher loss expectations due to greater than expected collateral deterioration in Builder 4's portfolio. The negative credit migration is primarily attributed to the rapid credit deterioration in US structured finance CDOs and subprime residential mortgage backed securities (RMBS), primarily from the 2006 vintage, as well as from the 2005 vintage. The portfolio is comprised of US subprime RMBS (3.73%), Alternative A (Alt-A) mortgage loans (15.80%) and US diversified structured finance CDOs (37.49%). US structured finance CDOs of the 2005, 2006 and 2007 vintages account for approximately 7.99%, 21.27% and 3.35% of the portfolio, respectively. During the rating action in November 2007, only 0.0% of the portfolio was rated 'BB+' or below. As per the portfolio from the latest trustee report dated April 2008, 2.62% of the portfolio is rated 'CCC+' or below and 8.99% of the portfolio is rated 'BB+' or below. This compares to credit enhancement levels of 4.20%, 2.70%, 1.50% and 0.75% for classes B, C, D and E, respectively. LUNAR FUNDING V: Fitch Cuts Ratings on Three Celts Leveraged MBS ---------------------------------------------------------------- Fitch Ratings downgraded three Celts leveraged mortgage-backed securities issued from Lunar Funding V plc and removed them from Rating Watch Negative: -- EUR75m Series 2007-40 notes due 2060 downgraded to 'B' from 'A'; off RWN -- EUR75m Series 2007-45 notes due 2060 downgraded to 'BB' from 'A'; off RWN -- EUR50m Series 2007-46 notes due 2060 downgraded to 'B' from 'A'; off RWN The rating actions are due to a decline in the reported market values of the reference assets since the close of the transactions. The decrease in market value has increased the risk of breaching the market value triggers for each of the transactions. Series 2007-40 and 2007-46 have a smaller market value cushion than Series 2007-45, which is reflected in the rating actions taken. The market value cushion is the difference between the current market price and the ratings trigger. The notes have zero credit enhancement and therefore are exposed to the first dollar of loss. The transactions are market value notes that reference, via total return swaps, leveraged portfolios of 'AAA' prime European RMBS and CMBS assets. None of the underlying assets have been downgraded or placed on Rating Watch Negative. ========= I T A L Y ========= ALITALIA SPA: AirOne Links with Berlusconi Adviser on Stake Sale ---------------------------------------------------------------- AirOne S.p.A. is in contact with Bruno Ermolli, an adviser to Italy's Prime Minister-elect Silvio Berlusconi in charge of finding a local buyer for the government's 49.9% stake in Alitalia S.p.A., various reports say, citing AirOne board member Giovanni Malago. As reported in the TCR-Europe on April 23, 2008, AirOne S.p.A., banks led by Intesa Sanpaolo S.p.A. and Italian businessmen led by Mr. Ermolli may form a consortium to bid for Alitalia. AirOne will own 40% of the bidding vehicle, the banks will control 40% and Mr. Bruno's group will hold 20%. Mr. Berluconi has been insisting that an Italian consortium will present a binding offer for Italy's 49.9% stake in Alitalia. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. ALITALIA SPA: Unicredit Denies Possible Bid with Lufthansa ---------------------------------------------------------- UniCredit S.p.A. denied a report that it had contacts with Deutsche Lufthansa AG over a possible bid for the Italian government's 49.9% stake in Alitalia S.p.A. An Il Messaggero report said that UniCredit chief executive Alessandro Profumo had met with Lufthansa executive to discuss the German carrier's possible role in re-launching Alitalia. The report added that Lufthansa might acquire a stake in Alitalia if conditions are right. As reported in the TCR-Europe on March 12, 2008, Lufthansa Chief Executive Wolfgang Mayrhuber said the carriuer is not interested in acquiring Alitalia. Mr. Mayhuber stressed that though Lufthansa is planning to participate in mergers in Europe's airline industry, it is currently not eyeing Alitalia. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes, including United States, Canada, Japan and Argentina. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. FIAT SPA: Iveco Defers Entry Into the United States --------------------------------------------------- Iveco, a division of Fiat SpA, has deferred its possible entry into the U.S. market, Reuters reports citing Iveco CEO Mr. Paolo Monferino. Reuters relates Mr. Monferino as saying that the move to the United States is currently "on stand-by." Fiat CEO Sergio Marchionne however expressed that the issue would likely be decided by the end of the first quarter, Reuters adds. About Iveco Iveco designs, manufactures, and markets a broad range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire fighting, off-road missions, defence and civil protection. Iveco employs over 24,500 people and runs 28 production units in 16 Countries in the world using excellent technologies developed in 5 research centres. Besides Europe, the company operates in China, Russia, Australia, Argentina, Brazil, and South Africa. More than 4,600 service outlets in over 100 Countries guarantee technical support wherever in the world an Iveco vehicle is at work. 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. =================== K A Z A K H S T A N =================== AKTOBE TULPAR: Claims Deadline Slated for June 20 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Aktobe Tulpar Trans insolvent. Creditors have until June 20, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 ARMAN-BATYR LLP: Claims Registration Ends June 25 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Arman-Batyr insolvent. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana May 9 Str. 37/1-102 Astana Kazakhstan Tel: 8 (7172) 39-73-00 CONCEPT-AUTODIAGNOSTIKA LLP: Creditors' Claims Due on June 20 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Concept-Autodiagnostika insolvent on December 25, 2007. Creditors have until June 20, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kyzylorda Room 4 Jahaev Str. 71 Kyzylorda Kazakhstan Tel: 8 (72422) 27-24-55 EKIBASTUZ STROYPUT: Creditors Must File Claims by June 25 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Ekibastuz Stroyput insolvent on March 27, 2008. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Dostoevsky Str. 72 Pavlodar Kazakhstan Tel: 8 (7182) 32-91-97 KAZTECHMASH LLP: Claims Deadline Slated for June 25 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Astana has declared LLP Kaztechmash insolvent. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Astana May 9 Str. 37/1-102 Astana Kazakhstan Tel: 8 (7172) 39-73-00 KOKSHETAU AGROPROMTECHNIKA: Claims Filing Period Ends June 25 ------------------------------------------------------------- OJSC Kokshetau Agropromtechnika has declared insolvency. Creditors have until June 25, 2008, to submit written proofs of claims to: OJSC Kokshetau Agropromtechnika Severnaya Promzona Akmola Kazakhstan KURYLYS IPOTEKA: Asset Sale Slated for May 12, 2008 --------------------------------------------------- JSC Mortgage Organization Kurylys Ipoteka has set the public auction of these assets: Lot 1: Two rooms flat with total area of 39.1 square meters, living areas of 25.5 square meters, located at Almaty. Lot 2: Three rooms flat with total area of 138.7 square meters, living areas of 89.2 square meters, located at Almaty. Lot 3: Two rooms flat with total area of 52.8 square meters, living areas of 30.4 square meters, located at Almaty. Bidders are required a deposit guarantee payment to: IIK 080467502 JSC ATF Bank Almaty Branch BIK 190501956 RNN 600900536518 Bids should be submitted before 9:30 a.m., May 12, 2008, to: JSC Mortgage Organization Kurylys Ipoteka Dostyk ave. 44-46 Almaty Kazakhstan Tel: 8 (7272) 91-15-04 8 (7272) 93-97-35 KURYLYS-ORTALYGY LLP: Creditors Must File Claims by June 20 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Kurylys-Ortalygy insolvent. Creditors have until June 20, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Tel: 8 (3132) 21-30-32 TEMIRBANK: Moody's Lowers Unsecured Debt Ratings to Ba3 ------------------------------------------------------- Moody's Investors Service downgraded the long-term bank deposit and unsecured debt ratings of Temirbank to Ba3 from Ba2. The E+ bank financial strength rating and Not Prime short-term ratings were affirmed. The outlook on all of the bank's ratings is now stable. Moody's said that the downgrade of Temirbank's long-term deposit and debt ratings has be