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 Tuesday, May 13, 2008, Vol. 9, No. 94 Headlines A U S T R I A AUTOHOF WAIDHOFEN: Claims Registration Period Ends June 5 DIPL.-ING. GUGENBERGER: Claims Registration Period Ends June 2 GOLAKU LLC: Claims Registration Period Ends June 17 M & M AUTOSERVICE: Claims Registration Period Ends June 9 STADTBAUMEISTER ING. GERHARD: Claims Registration Ends June 3 B U L G A R I A KREMIKOVTZI AD: Moody's Cuts Corporate Family Rating to Ca F R A N C E OMNOVA SOLUTION: S&P Keeps B+ Rating; Outlook Revised to Neg. RHODIA SA: March 31 Balance Sheet Upside Down by EUR284 Million G E R M A N Y BRAINTIME INFORMATION: Claims Registration Period Ends May 29 EFK ELEKTROANLAGEN: Claims Registration Period Ends May 23 LENDECKEL & CO: Claims Registration Period Ends May 29 MANIA TECHNOLOGIE: Two Units File for Insolvency MIMO GMBH: Claims Registration Ends May 30 NASDIS GMBH: Claims Registration Ends May 30 PETER BUECHNER: Claims Registration Ends May 30 PFLEGEZENTRUM SCHWALMSTADT: Claims Registration Ends May 30 PLUSMINUS BATTERIETECHNIK: Claims Registration Ends May 23 PRINT-FINISH GMBH: Claims Registration Ends May 30 PROFIL MEDIENVERLAG: Claims Registration Ends May 30 RJD GEBAUDEMANAGEMENT: Claims Registration Period Ends May 30 SPERLING & IRMSCHER: Claims Registration Period Ends May 30 TREFFPUNKT HAAR: Claims Registration Period Ends May 21 TUI AG: Progress of Unit’s Separation Going According to Plan TWISS GMBH: Claims Registration Period Ends May 30 V P INDUSTRIEMONTAGEN: Claims Registration Period Ends May 27 WESSER KIES: Claims Registration Period Ends May 30 WIN SON: Claims Registration Period Ends May 30 I R E L A N D FEIRM EISC: Failure to Get New Investment Prompts Liquidation IRALCO LTD: Needs EUR10 Million to Remain Afloat PALMER SQUARE 2: Moody's Cuts Ratings on Eight Note Classes I T A L Y ALITALIA SPA: Bruno Ermoli Asks Data for Possible Bid FIAT SPA: Agnelli Group Denies Planned Fiat Auto Spin-Off * Fitch Puts Taranto City's Ratings on Restricted Default K A Z A K H S T A N BATYR KUZET: Creditors Must File Claims by June 13 BIOSTAR-AKSU LLP: Claims Deadline Slated for June 17 EKIBASTUZ-BUSINESS LLP: Claims Filing Period Ends June 17 HIMPOLIMER LLP: Creditors' Claims Due on June 13 JUMBAKTAS LLP: Claims Registration Ends June 13 KAZSTROY-2005 LLP: Creditors Must File Claims by June 13 SAGU LLP: Claims Deadline Slated for June 17 SELHOZMETALL LLP: Claims Filing Period Ends June 17 TURAN-KOKSHE LLP: Creditors' Claims Due on June 13 K Y R G Y Z S T A N TRAVEL STAR: Creditors Must File Claims by June 18 L U X E M B O U R G AMERICAN AXLE: GM to Provide US$200 Million to End Strike AMERICAN AXLE: UAW Chief Criticizes US$200 Million GM Aid EVRAZ GROUP: Banks Complete US$500-Million Loan's Syndication MILLICOM INTERNATIONAL: Committee Proposes New Board Directors N E T H E R L A N D S LYONDELLBASELL: Halts Polypropylene Production at Illinois Plant LYONDELLBASELL: Moody's Cuts Rating on 2nd Lien Facility to B3 SCIENTIFIC GAMES: Earns US$19.9 Million in First Quarter 2008 SCIENTIFIC GAMES: Moody's Rates New US$850 Mln Facility at Ba1 N O R W A Y NORSKE SKOGINDUSTRIER: Shows Weak Results in First Quarter 2008 NORSKE SKOGINDUSTRIER: S&P's BB- Ratings Remains on Watch Neg. P O L A N D * Number of Bankrupt Polish Companies Climb to 95 in 1Q 2008 R U S S I A B.I.N. BANK: Aborted Sale of Bank Cues Fitch to Affirm Ratings EVRAZ GROUP: Banks Complete US$500-Million Loan's Syndication MARS-PLUS CJSC: Court Names A. Fedorenko as Insolvency Manager NADEZHDINSKOE OJSC: Creditors Must File Claims by May 26 NEW WORLD: Creditors Must File Claims by June 26 SOCHI-MILK: Krasnodar Bankruptcy Hearing Slated for May 18 SPECIAL BUILDING: Courts Names O. Savin as Insolvency Manager STO CJSC: Creditors Must File Claims by June 26 STROY-DESIGN-M: Creditors Must File Claims by June 26 VIMPELCOM: Moody's Changes Outlook on Ba2 Ratings to Positive S P A I N FTA UCI 16: Fitch Junks Class E Notes' Rating FTA UCI 17: Fitch Junks Rating on Class D Notes S W E D E N ARVINMERITOR INC: Gets Go-Signal to Buy American LaFrance Assets S W I T Z E R L A N D CHRIMA BUCHS: Creditors’ Liquidation Claims Due on May 15 HAPPY HORSE: Proofs of Claim Filing Deadline is May 15 LABEL SOLUTIONS: Creditors have Until May 14 to File Claims MARIANA ENTERPRISES: Creditors’ Liquidation Claims Due May 15 PRESTIGE LLC: Zug Court Commences Bankruptcy Proceedings RCH HOLDING: Bankruptcy Proceedings Initiated by Zug Court TRADELEASE JSC: Creditors Must File Proofs of Claim by May 15 VINOS ACCADEMIA: Deadline to File Proofs of Claim is May 15 X-RITE INC: Moody's Junks Corporate Family Rating U K R A I N E BARANOVKA PORCELAIN: Proofs of Claim Deadline Set May 22 CHERKASSY GRAINTRADING: Proofs of Claim Deadline Set May 22 DELTA-VECTOR LLC: Proofs of Claim Deadline Set May 22 HK CAPITAL: Proofs of Claim Deadline Set May 22 KOLOS LLC: Proofs of Claim Deadline Set May 22 NIKOLAYEV SPECIAL: Proofs of Claim Deadline Set May 22 PERESCHEPINO ELEVATOR: Proofs of Claim Deadline Set May 22 REGIONAL AGRICULTURAL: Proofs of Claim Deadline Set May 22 ROSTPROMSTAN LLC: Proofs of Claim Deadline Set May 22 SPEKTR-M CJSC: Proofs of Claim Deadline Set May 22 TAP-LTD LLC: Proofs of Claim Deadline Set May 22 U N I T E D K I N G D O M BAA LIMITED: Shareholders Agree to GBP400 Million Funding BRITISH AIRWAYS: Signs Code-Sharing Pact with L'Avion BRITISH ENERGY: EDF SA Submits Lone Takeover Bid CAIRNGORM MOUNTAIN: Council Agrees to Sell Loan for GBP1 CARTEX LTD: Brings In Liquidators from Baker Tilly CLEAR CHANNEL: Hearing on Bank Suit to Continue Today CORIOLANUS LIMITED: Fitch Lowers Ratings Further to C CORSIE GROUP: Cash Flow Problems Prompts Administration EUROSAIL 06-3: Fitch Lowers Rating on Class FTc Notes to B- GENERAL MOTORS: Liquidity Negatively Impacted by AAM Strike GENERAL MOTORS: To Provide US$200 Million to Axle to End Strike GENERAL MOTORS: UAW Chief Criticizes US$200 Million Aid for AAM GENERAL MOTORS: In Talks on US$750 Million Pledge for ResCap KINGSVIEW CONSTRUCTION: Taps Joint Administrators from Begbies MARBLE ARCH: Fitch Affirms Rating Class E1c Notes at BB NYLON HOSIERY: Appoints Joint Administrators from BDO Stoy QUEBECOR WORLD: Seeks Extension of the CCAA Stay Until July 25 QUEBECOR WORLD: E&Y Provides Updates on CCAA Proceedings VIRGIN MEDIA: Moody's Lifts Rating on Tranche C to B1 WHITE HOUSE: Calls In Liquidators from Tenon Recovery * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= AUTOHOF WAIDHOFEN: Claims Registration Period Ends June 5 --------------------------------------------------------- Creditors owed money by LLC AUTOHOF WAIDHOFEN/THAYA PIATY & CO (FN 40505t) have until June 5, 2008, to file written proofs of claim to court-appointed estate administrator Alois Autherith at: Dr. Alois Autherith Utzstrasse 13 3500 Krems an der Donau Austria Tel: 02732/83485 Fax: 02732/83485-10 E-mail: office@autham.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on June 25, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria Headquartered in Waidhofen an der Thaya, Austria, the Debtor declared bankruptcy on April 16, 2008, (Bankr. Case No. 9 S 20/08a). DIPL.-ING. GUGENBERGER: Claims Registration Period Ends June 2 -------------------------------------------------------------- Creditors owed money by LLC Dipl.-Ing. Gugenberger (FN 178918s) have until June 2, 2008, to file written proofs of claim to court-appointed estate administrator Stefan Weidinger at: Mag. Stefan Weidinger Dr. Koss Strasse 3 4600 Wels Austria Tel: 07242/67354-0 Fax: 07242/67354-50 E-Mail: kanzlei@holme.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:40 a.m. on June 12, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Str. 12 Wels Austria Headquartered in Wels, Austria, the Debtor declared bankruptcy on April 16, 2008 (Bankr. Case No. 20 S 49/08v). GOLAKU LLC: Claims Registration Period Ends June 17 --------------------------------------------------- Creditors owed money by LLC GOLAKU (FN 292912d) have until June 17, 2008, to file written proofs of claim to court- appointed estate administrator Dominik Baurecht at: Mag. Dominik Baurecht Weihburggasse 4 1010 Vienna Austria Tel: 533 66 61-77 Fax: 533 66 61-10 E-mail: baurecht@gnbz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on July 1, 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 24, 2008 (Bankr. Case No. 4 S 58/08v). M & M AUTOSERVICE: Claims Registration Period Ends June 9 --------------------------------------------------------- Creditors owed money by LLC M & M Autoservice (FN 192741v) have until June 9, 2008, to file written proofs of claim to court- appointed estate administrator Susi Pariasek at: Dr. Susi Pariasek c/o Mag. Beate Holper Gonzagagasse 15 1010 Vienna Austria Tel: 533 28 55 Fax: 533 28 55-28 E-mail: office@anwaltwien.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on June 23, 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 24, 2008 (Bankr. Case No. 3 S 44/08b). Beate Holper represents Dr. Pariasek in the bankruptcy proceedings. STADTBAUMEISTER ING. GERHARD: Claims Registration Ends June 3 ------------------------------------------------------------- Creditors owed money by LLC Stadtbaumeister Ing. Gerhard Petsch (FN 124547h) have until June 3, 2008, to file written proofs of claim to court-appointed estate administrator Alexander Schoeller at: Dr. Alexander Schoeller c/o Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on June 17, 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 24, 2008 (Bankr. Case No. 6 S 61/08z). Stephan Riel represents Dr. Schoeller in the bankruptcy proceedings. =============== B U L G A R I A =============== KREMIKOVTZI AD: Moody's Cuts Corporate Family Rating to Ca ---------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Kremikovtzi AD to Ca from Caa3 and the rating on its EUR325 million senior secured guaranteed notes raised at Bulgaria Steel Finance BV to Ca/LGD4(53) from Caa3/LGD4(53). The outlook is stable. The rating action reflects Kremikovtzi's failure to make a timely payment of interest under its EUR325 million notes. The assigned LGD rates take into account the remaining uncertainty with respect to the resolution of the situation at the company and a timely implementation of any remedial actions that the management and the principal shareholder may consider, including a potential disposal of the stake by the main shareholder, if providing sufficient cash to repay liabilities. Moody's notes, that the indentures include a change of control prepayment option. As previously stated, Moody's considers the value of the security to be insufficient to cover the principal amount raised under the notes. The ratings affected by this rating action are: -- Ca corporate family rating at Kremikovtzi AD; -- Ca/LGD 4(53) ratings on senior secured guaranteed notes at Bulgaria Steel Finance BV; Kremikovtzi AD corporate family rating reflects application of Moody's rating methodology for government-related issuers and comprise these inputs: -- Baseline credit assessment of 20 which equates to Ca; -- Baa3 local currency rating of Bulgaria; -- Low dependence and low support. Moody's last rating action on Kremikovtzi AD was on April 17, 2008, when the rating agency downgraded the ratings to Caa3 and assigned a developing outlook to the company's ratings. Kremikovtzi AD is a single-site steel producer in Bulgaria. Kremikovtzi restated revenues in 2006 were BGN896 million (US$704 million) and EBITDA was negative BGN13 million (US$7 million). =========== F R A N C E =========== OMNOVA SOLUTION: S&P Keeps B+ Rating; Outlook Revised to Neg. ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on OMNOVA Solutions Inc. to negative from stable. At the same time, we affirmed all of our ratings on the company, including the 'B+' corporate credit rating. "The outlook revision reflects the continued weaker-than- expected operating performance because of elevated raw material costs in fiscal 2007 and the first quarter of 2008," said Standard & Poor's credit analyst Henry Fukuchi. "These conditions have resulted in some weakening of the financial profile against the level we consider appropriate for the current ratings." The negative outlook also incorporates our view that raw material cost escalation will continue to create a difficult operating environment, especially in light of weak economic conditions and a housing slowdown. We expect this trend to continue throughout the remainder of 2008 and the first half of 2009. In fiscal 2007, operating results were weak primarily due to the lag in price increases relative to raw material cost inflation. In particular, the performance chemicals segment experienced considerable margin compression because of the run-up in butadiene and styrene prices. The company also incurred higher costs for polyvinyl chloride, which it uses in decorative products. OMNOVA has taken steps to offset this pressure, implementing an aggressive price increase plan to mitigate further deterioration in margins, but the uncertainty of butadiene pricing in an environment of short supply remains a significant concern. Standard & Poor's anticipates that OMNOVA's price increases will have their full impact on margin improvement during the third and fourth quarters of 2008, because of the timing necessary to implement the higher prices across various product lines. While we expect styrene prices to stabilize in 2008, butadiene remains a significant concern because tight supply will dictate higher pricing. S&P expects OMNOVA will take the necessary steps, including additional price increases, to mitigate further margin erosion and maintain its financial profile and current ratings. S&P could lower the ratings within the next few quarters if the expected improvement in operating results does not materialize, leading to further deterioration in the financial profile or liquidity position. Specifically, S&P expects OMNOVA to maintain a funds from operations to total adjusted debt ratio averaging 15% over a business cycle to maintain its current rating. Any further deviation from this level will put downward pressure on the current ratings. The ratings could also come under pressure if OMNOVA's position weakens materially in key end markets, such as paper, carpet, and upholstery manufacturing, or in the event of a large, debt-financed acquisition that stretches the financial profile beyond our expectations. Effective management of price increases relative to raw material price inflation coupled with continued cost reduction efforts could lead to a modest improvement of the financial profile and would add support for the current ratings. RHODIA SA: March 31 Balance Sheet Upside Down by EUR284 Million --------------------------------------------------------------- Rhodia S.A. released its financial results for the first quarter ended March 31, 2008. The company posted EUR42 million net profit on EUR1.19 billion net sales for the first quarter of 2008, compared with EUR60 million net profit on EUR1.19 billion net sales for the same period in 2007. Rhodia reported net financial debt of EUR1.53 billion at March 31, 2008. At March 31, 2008, the company's balance sheet showed EUR4.57 billion in total assets, EUR4.85 billion in total liabilities and EUR284 million in total deficit. "Healthy levels of demand across all businesses have allowed us to increase prices and offset successfully most raw material and energy cost increases," Jean-Pierre Clamadieu, Rhodia chairman and CEO commented. "Foreign exchange rates and raw material & energy costs are set to remain the key challenges in 2008 but we remain confident in the pricing power of our businesses which benefit from strong leadership positions in dynamic markets." Outlook During the rest of 2008, Rhodia will continue exercising its proven pricing power with further price increases underway in all businesses. It will also take initiatives to better match currency revenues and costs. Finally the group will continue to focus on free cash flow generation. The group is facing stronger headwinds from a further decline of the US dollar and from an unrelenting increase in the cost of key raw materials. Rhodia expects market demand to remain healthy with solid volumes and price rises continuing. Current conditions prevailing, recurring EBITDA for 2008 is expected within 5% of the level achieved in 2007. Rhodia confirms it expects Earnings per Share to increase versus 2007. A full-text copy of Rhodia's financial results is available at no charge at http://ResearchArchives.com/t/s?2bca About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. The group generated sales of EUR4.8 billion in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As reported in the Troubled Company Reporter-Europe on April 9, 2008, Standard & Poor's Ratings Services raised its long-term corporate credit rating on France-based chemical producer Rhodia S.A. to 'BB' from 'BB-'. S&P affirmed the bank's 'B' short-term corporate credit rating. S&P said the outlook is stable. ============= G E R M A N Y ============= BRAINTIME INFORMATION: Claims Registration Period Ends May 29 ------------------------------------------------------------- Creditors of Braintime Information Technology GmbH have until May 29, 2008, to register their claims with court-appointed insolvency manager Frank Kebekus. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 19, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 388 Third Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Frank Kebekus Carl-Theodor-Str. 1 40213 Duesseldorf Germany The District Court of Duesseldorf opened bankruptcy proceedings against Braintime Information Technology GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Braintime Information Technology GmbH Attn: Peter Matheus Robert Maria Bax, Manager Niederkasseler Lohweg 18 40547 Duesseldorf Germany EFK ELEKTROANLAGEN: Claims Registration Period Ends May 23 ---------------------------------------------------------- Creditors of EFK Elektroanlagen GmbH have until May 23, 2008, to register their claims with court-appointed insolvency manager Viktor von Websky. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kiel 18 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: Viktor von Websky Im Brauereiviertel 5 24118 Kiel Germany Tel: 0431/66656757 Fax: 0431/66656735 The District Court of Kiel opened bankruptcy proceedings against EFK Elektroanlagen GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EFK Elektroanlagen GmbH Attn: Manfred Quatfasel, Manager Schauenburgerstr. 49 24105 Kiel Germany LENDECKEL & CO: Claims Registration Period Ends May 29 ------------------------------------------------------ Creditors of Lendeckel & Co. GmbH have until May 29, 2008, to register their claims with court-appointed insolvency manager Volker Reinhardt. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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: Volker Reinhardt Windthorststr. 17 99096 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against Lendeckel & Co. GmbH on April 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lendeckel & Co. GmbH Attn: Nichael Johannes Lendeckel Mainzer Strasse 10 99610 Soemmerda Germany MANIA TECHNOLOGIE: Two Units File for Insolvency ------------------------------------------------ In the framework of the restructuring of the Mania Group it has been necessary for the two 100% subsidiaries, Mania Deutschland GmbH (Commercial Registry Bad Homburg HRB 8774) and Mania Entwicklungsgesellschaft GmbH (Commercial Registry Bad Homburg HRB 9465) to file for insolvency. Mr. Arno Wolf, lawyer in Kronberg im Taunus, has been appointed preliminary administrator. Insolvency has been filed to protect the assets of these companies. Both subsidiaries only play a supporting role in the operative daily business, their necessary continuing support for the total group has been secured by the filing for insolvency. The restructuring process in the insolvency proceedings continues. At the moment talks are taking place with all parties involved and interested. With the exception of the Production Systems Division in the USA, our operative companies are working as usual. In particular the Business Division Outsourcing is continuing to provide our customers with all services at its usual high standard. Headquartered in Germany, Mania Technologie AG -- http://www.maniagroup.com/-- engages in the development, manufacture, and sale of machines, systems, and services to the printed circuit board industry in Europe, Asia, Africa, and the Americas. The equipment portfolio includes imaging systems, optical inspection (AOI), electrical testers, drilling machines, and CAM software. MIMO GMBH: Claims Registration Ends May 30 ------------------------------------------ Creditors of MiMo GmbH Sanitar-, Sauna- und Solaranlagenbau have until May 30, 2008 to register their claims with court-appointed insolvency manager Markus Dahmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 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 Ludwigshafen am Rhein Meeting Hall VII Wittelsbachstr. 10 67061 Ludwigshafen am Rhein 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: Markus Dahmann Wimphelingstr. 13 67346 Speyer Germany The District Court of Ludwigshafen am Rhein opened bankruptcy proceedings against MiMo GmbH Sanitar-, Sauna- und Solaranlagenbau on April 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MiMo GmbH Sanitar-, Sauna- und Solaranlagenbau Ludwigstrasse 42 67459 Boehl-Iggelheim Germany Attn: Reiner Krug, Manager Luitpoldstrasse 24 67459 Boehl-Iggelheim Germany NASDIS GMBH: Claims Registration Ends May 30 -------------------------------------------- Creditors of NASDIS GmbH have until May 30, 2008 to register their claims with court-appointed insolvency manager Michael W. Scholz. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Hamburg Hall B 405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael W. Scholz Deichstrasse 1 20459 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against NASDIS GmbH on April 4, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: NASDIS GmbH Attn: Colin Peter Watson and John Glen Wright, Managers Hermann-Blohm-Strasse 3 20457 Hamburg Germany PETER BUECHNER: Claims Registration Ends May 30 ----------------------------------------------- Creditors of Peter Buechner Mineraloele GmbH have until May 30, 2008 to register their claims with court-appointed insolvency manager Robert Wartenberg. Creditors and other interested parties are encouraged to attend the meeting at 1:05 p.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 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: Robert Wartenberg Friedrichstr. 15 96047 Bamberg Germany Tel: 0951/297430 The District Court of Hof opened bankruptcy proceedings against Peter Buechner Mineraloele GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Peter Buechner Mineraloele GmbH Attn: Joerg-Michael Peetz, Manager Geschwister-Scholl-Str. 5 95100 Selb Germany PFLEGEZENTRUM SCHWALMSTADT: Claims Registration Ends May 30 ----------------------------------------------------------- Creditors of Pflegezentrum Schwalmstadt GmbH have until May 30, 2008 to register their claims with court-appointed insolvency manager Dr. Lason Gutsche. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Bad Homburg v.d. Hoehe Room 120 First Floor Auf der Steinkaut 10-12 61352 Bad Homburg v.d. Hoehe 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. Lason Gutsche Cronstettenstr. 30 60322 Frankfurt am Main Germany Tel: 069/959110-0 Fax: 069/959110-12 The District Court of Bad Homburg v.d. Hoehe opened bankruptcy proceedings against Pflegezentrum Schwalmstadt GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pflegezentrum Schwalmstadt GmbH Bahnhofstrasse 71 61267 Neu-Anspach Germany Attn: Klaus Ide, Manager Adolf-Lins-Strasse 4 34613 Schwalmstadt Germany PLUSMINUS BATTERIETECHNIK: Claims Registration Ends May 23 ---------------------------------------------------------- Creditors of plusminus Batterietechnik GmbH have until May 23, 2008, to register their claims with court-appointed insolvency manager Matthias Bott. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 6, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Konstanz Hall 207 Second Floor Untere Laube 12 78462 Konstanz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Matthias Bott Bodnegger Str. 19 88287 Gruenkraut Germany The District Court of Konstanz opened bankruptcy proceedings against plusminus Batterietechnik GmbH on May 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: plusminus Batterietechnik GmbH Attn: Martin Metzdorff, Manager Langbruehl 14-16 88709 Hagnau Germany PRINT-FINISH GMBH: Claims Registration Ends May 30 -------------------------------------------------- Creditors of Print-Finish GmbH & Co.KG have until May 30, 2008 to register their claims with court-appointed insolvency manager Manfred Vellmer. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 20, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 119 B Gerichtsstr. 2-6 48149 Muenster 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: Manfred Vellmer Adalbertstr. 8 48565 Steinfurt Germany Tel: 02552/638710 Fax: +4925526387111 The District Court of Muenster opened bankruptcy proceedings against Print-Finish GmbH & Co.KG on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Print-Finish GmbH & Co.KG Attn: Udo Boeggemann, Manager Eggenkamp 13 48268 Greven Germany PROFIL MEDIENVERLAG: Claims Registration Ends May 30 ---------------------------------------------------- Creditors of PROFIL Medienverlag GmbH have until May 30, 2008 to register their claims with court-appointed insolvency manager Rolf G. Pohlmann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Rolf G. Pohlmann Rosental 6 80331 Munich Germany Tel: (089)548033-0 Fax: (089)548033-111 The District Court of Munich opened bankruptcy proceedings against PROFIL Medienverlag GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PROFIL Medienverlag GmbH Attn: Joerg Mansch, Manager Ladehofstr. 10 85540 Haar Germany RJD GEBAUDEMANAGEMENT: Claims Registration Period Ends May 30 ------------------------------------------------------------- Creditors of RJD Gebaudemanagement GmbH have until May 30, 2008, to register their claims with court-appointed insolvency manager Dr. Franz-Ludwig Danko. 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 of Hanau Area E03 Engelhardstrasse 21 63450 Hanau 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. Franz-Ludwig Danko Adickesallee 63 60322 Frankfurt/Main Germany Tel: 069-71379830 Fax: 069-71379833 E-mail: frankfurt@kuebler-gbr.de Website: www.kuebler-gbr.de The District Court of Hanau opened bankruptcy proceedings against RJD Gebaudemanagement GmbH on April 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RJD Gebaudemanagement GmbH Rodenbacherchaussee 6 63457 Hanau Germany Attn: Ratko Jovanovic, Manager Auheimerstr. 31 63517 Rodenbach Germany SPERLING & IRMSCHER: Claims Registration Period Ends May 30 ----------------------------------------------------------- Creditors of Sperling & Irmscher GmbH have until May 30, 2008, to register their claims with court-appointed insolvency manager Volker Schmidt. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on July 2, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Room 178 Hauffstr. 5 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: Volker Schmidt Bahnhofstr. 29 70372 Stuttgart Germany Tel: 0711/25 35 913 Fax: 0711/25 35 91 55 The District Court of Stuttgart opened bankruptcy proceedings against Sperling & Irmscher GmbH on April 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sperling & Irmscher GmbH Attn: Sven Ferry Irmscher and Sven Raphale Sperling, Managers Walter-Flex-Str. 23 70619 Stuttgart Germany TREFFPUNKT HAAR: Claims Registration Period Ends May 21 ------------------------------------------------------- Creditors of Treffpunkt Haar GmbH have until May 21, 2008, to register their claims with court-appointed insolvency manager Sylvia Rhein. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 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: Sylvia Rhein Walther-Rathenau-Str. 24 64646 Heppenheim Germany Tel: 06252/6877-0 Fax: 06252/6877-11 The District Court of Darmstadt opened bankruptcy proceedings against Treffpunkt Haar GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Treffpunkt Haar GmbH Rodensteinstrasse 22 64625 Bensheim Germany TUI AG: Progress of Unit’s Separation Going According to Plan ------------------------------------------------------------- TUI AG's preparation to separate its shipping division is progressing according to plan, Dr. Michael Frenzel, the group's CEO disclosed. Dr. Frenzel emphasized that the divestment process has already been launched. "We have mandated investment banks supporting us and are preparing the required marketing documents," he said. The CEO also underlined that the separation of Hapag-Lloyd is planned to be implemented swiftly. He said that the executive board is convinced that the separation can be implemented with an optimum result and that the process will end with a strengthened TUI AG releasing Hapag-Lloyed into the future with a new ownership structure, leaving scope to let all shareholders participate in the value realized. "We will let our shareholders participate appropriately in the proceeds," Dr. Frenzel added. Speaking to the shareholders, Dr. Frenzel emphasized that TUI’s current preference is to divest Hapag-Lloyd. "We do not rule out any of the potential options, although our clear preference is a divestment solution," he said. According to Dr. Frenzel, this solution is fastest to implement and offers the opportunity to realize a strategic premium. With regard to the public debate about potential buyers for Hapag- Lloyd, Dr. Frenzel underlined that a preliminary decision had not been taken. According to him, the obligation of the executive board is to realize the actual market value of container shipping while acting in the interest of all bondholders, shareholders and further stakeholders. About TUI Headquartered in Hanover, Germany, TUI AG -- http://www.tui-group.com/-- engages in the tourism and shipping sectors. The Company's core activities are in the tourism business, focusing mainly on the markets of Central, Northern and Western Europe. TUI AG's shipping and logistics activities are contained within its Hapag-Lloyd Container Linie GmbH and CP Ships Ltd. Subsidiaries. * * * TUI AG carries Standard & Poor's ratings of "BB-" on long-term corporate credit and all issue ratings on creditwatch with negative implicatins. Moody's Investors Service confirmed the B1 Corporate Family Rating for TUI AG, while the B2 unsecured rating has been lowered to B3, and the subordinated rating is also confirmed at B3. The outlook is negative. TWISS GMBH: Claims Registration Period Ends May 30 -------------------------------------------------- Creditors of Twiss GmbH have until May 30, 2008, to register their claims with court-appointed insolvency manager Ulrich Sonntag. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 17, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hanau Area E03 Engelhardstrasse 21 63450 Hanau 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 Sonntag Hanauer Str. 25 63674 Altenstadt Germany Tel: 06047/954760 Fax: 06047/9547620 E-mail: info@ra-sonntag.com The District Court of Hanau opened bankruptcy proceedings against Twiss GmbH on April 14,2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Twiss GmbH Attn: Susanne Karahan, Manger Taunusstrasse 27 61130 Nidderau Germany V P INDUSTRIEMONTAGEN: Claims Registration Period Ends May 27 ------------------------------------------------------------- Creditors of V P Industriemontagen GmbH have until May 27, 2008, to register their claims with court-appointed insolvency manager Udo Claes-Hellmich. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Bochum Hall A 29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Udo Claes-Hellmich Herner Strasse 1 45657 Recklinghausen Germany The District Court of Bochum opened bankruptcy proceedings against V P Industriemontagen GmbH on May 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: V P Industriemontagen GmbH Attn: Gerhard Perdacher, Manager Siemensstr. 9 a 45659 Recklinghausen Germany WESSER KIES: Claims Registration Period Ends May 30 --------------------------------------------------- Creditors of Wesser Kies und Sand GmbH have until May 30, 2008, to register their claims with court-appointed insolvency manager Bernd Krumbholz. 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 Gera Room 317 Rudolf-Diener-Str. 1 Gera 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: Bernd Krumbholz Fr.-Engels-Strasse 1 a 07545 Gera Germany The District Court of Gera opened bankruptcy proceedings against Wesser Kies und Sand GmbH on April 8, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wesser Kies und Sand GmbH Hauptstrasse 106-112 07554 Poelzig Germany WIN SON: Claims Registration Period Ends May 30 ----------------------------------------------- Creditors of Win Son Feinkost GmbH have until May 30, 2008, to register their claims with court-appointed insolvency manager Michael Bremen. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 18, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duesseldorf Meeting Hall A 341 Fourth Floor Muehlenstrasse 34 40213 Duesseldorf Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Bremen Sternstr. 58 40479 Duesseldorf.Forderungen Germany The District Court of Duesseldorf opened bankruptcy proceedings against Win Son Feinkost GmbH on April 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Win Son Feinkost GmbH Attn: Wing-Ning Fong, Manager Schwelmer Strasse 4 40235 Duesseldorf Germany ============= I R E L A N D ============= FEIRM EISC: Failure to Get New Investment Prompts Liquidation ------------------------------------------------------------- Feirm Eisc Chleire Teoranta has gone into liquidation citing the failure to obtain a new investment, the Post.ie reports. The report adds that the company has over EUR2 million in debts. Kieran Wallace, a partner at KPMG, has been appointed as liquidator and intends to look for a buyer for the company’s assets, Post.ie relates. Feirm Eisc has been under examinership for two months but was unable to finalize a rescue deal, the report further adds. Based in Cork, Ireland, Feirm Eisc Chleire Teoranta produces expensive shellfish like abalone. IRALCO LTD: Needs EUR10 Million to Remain Afloat ------------------------------------------------ John McStay and Tom Rogers, liquidators of Iralco Limited, told creditors that buyers of the company need to invest up to EUR10 million to restart its operation, Radio Telefis Eirann says, citing an Irish Times report. Mr. McStay told creditors that they have a number of parties have expressed interests, but have yet to submit a firm offer, The Irish Times reports. The liquidators are selling Iralco as a going concern. The liquidator added that the company's customers -- Audi, BMW, Ford, Seat, Volvo and Jaguar -- have committed to buy its products for a period of six months. As reported in the Troubled Company Reporter-Europe on April 16, 2008, Iralco said it was going into voluntary liquidation after facing financial difficulties due to increasing costs. The company hired John McStay and Tom Rogers as liquidators on April 14, 2008. Iralco -- http://www.iralco.ie/-- designs and develops decorative and functional trim for all the major automotive OEM’s. The company's product range covers all high visibility trim parts from drip rail systems to pillar cappings and treadplates. PALMER SQUARE 2: Moody's Cuts Ratings on Eight Note Classes ----------------------------------------------------------- Moody's Investors Service downgraded and/or put on review for downgrade eight classes of notes issued by Palmer Square 2 Limited, a limited purpose vehicle incorporated in Ireland. These rating actions are a response to severe credit deterioration in the underlying portfolio. The transaction is a managed cash CDO of ABS, containing roughly 26% ABS CDOs and 36% sub-prime RMBS of the 2005, 2006, and 2007 vintages. Many of the assets in the portfolio have been downgraded, placed on review for downgrade, or both since October 2007. One of the assets in the portfolio is currently rated Ca. 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: Palmer Square 2 Limited (1) US$960,000,000 Class A1-M-A Floating Rate Notes due 2045 -- Current Rating: Aaa, on review for downgrade -- Prior Rating: Aaa (2) US$240,000,000 Class A1-Q-A Floating Rate Notes due 2045 -- Current Rating: Aaa, on review for downgrade -- Prior Rating: Aaa (3) US$69,000,000 Class A2-A Floating Rate Notes due 2045 -- Current Rating: Aa3, on review for downgrade -- Prior Rating: Aaa, on review for downgrade (4) US$45,000,000 Class A3-A Floating Rate Notes due 2045 -- Current Rating: Baa1, on review for downgrade -- Prior Rating: Aaa, on review for downgrade (5) US$19,875,000 Class B-1 Deferrable Floating Rate Notes due 2045 -- Current Rating: Ba3, on review for downgrade -- Prior Rating: Aa3, on review for downgrade (6) US$17,500,000 Class C Deferrable Floating Rate Notes due 2045 -- Current Rating: Caa1, on review for downgrade -- Prior Rating: Baa1, on review for downgrade (7) US$12,500,000 Class D Deferrable Floating Rate Notes due 2045 -- Current Rating: Ca -- Prior Rating: Ba2, on review for downgrade (8) US$25,000,000 Combination Notes due 2045 -- Current Rating: Ca -- Prior Rating: Baa3, on review for downgrade ========= I T A L Y ========= ALITALIA SPA: Bruno Ermoli Asks Data for Possible Bid ----------------------------------------------------- Bruno Ermolli, an adviser to Prime Minister Silvio Berlusconi, has requested access to Alitalia S.p.A.’s updated data and information, Alessandra Migliaccio writes for Bloomberg News. Mr. Ermolli has also been charged to look for buyers of the Italian government’s 49.9% stake in the carrier. In a letter to Alitalia, Mr. Ermolli said that investors need the data in order to evaluate the economic and financial sustainability of a project to relaunch the national carrier. 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%. Meanwhile, Finance Minister Giulio Tremonti was quoted by ANSA News as saying that the government wants private Italian buyers for its 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. FIAT SPA: Agnelli Group Denies Planned Fiat Auto Spin-Off --------------------------------------------------------- The Agnelli family has given no mandate to sell Fiat S.p.A.'s Fiat Auto S.p.A. unit, Reuters reports citing Il Sore 24 Ore's interview of IFIL chairman Gianluigi Gabetti. Mr. Gabetti denied market speculations that Fiat will separate its car business because it negatively affects the group, Reuters reports. Fiat CEO Sergio Marchionne had denied a Fiat Auto spin-off in March, saying it was "purely hypothetical," Reuters relates. Mr. Marchionne added that the unit would only be separated if the business were permanently undervalued. IFIL, which holds a 30.45% stake in Fiat, is an investment holding owned by the Agnelli Group. 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. * Fitch Puts Taranto City's Ratings on Restricted Default --------------------------------------------------------- Fitch Ratings has changed the City of Taranto's Long-term foreign and local currency ratings and the Short-term foreign currency rating to 'RD' from 'D'. The RD ratings reflect Taranto's ongoing 'distressed exchange' with Banca OPI - now incorporated in Banca Innovazione, Insfrastrutture e Sviluppo over outstanding debt of about EUR240 million. They also reflect the fact that, after the resumption of 'normal' operations in spring 2007, Taranto has continued to repay its EUR65 million outstanding loan installments with Cassa Depositi e Prestiti (rated 'AA-'/Stable) on a timely basis. Under the 'distressed exchange', BIIS's principal is being repaid according to the bond amortization plan, while interest due during 2007-2009 has been frozen and is to be repaid afterwards. In Fitch's view, resumption of timely interest payments on the bond and/or either a consensual rescheduling of the bond amortization plan - currently being discussed - or a bond refinancing could have a positive impact on Taranto's ratings. However, Fitch notes that Taranto's operations remain fragile as shortfalls in tax collection have resulted in revenue- expenditure mismatches. In addition, potential miscalculation of waste collection levies at end-2007 has weakened tax compliance. In January 2008 liquidity strains forced a court ruling on the city's treasury bank to advance Taranto about EUR30 million against future revenues (i.e. taxes and subsidies) to pay for wages and basic services. Taranto's Commission of Liquidation is currently dealing with the city's pre-2007 commercial liabilities (including unpaid debt installments), which have been stripped out of the city's budget. The outstanding debt totals about EUR260 million, down from EUR580 million at end-2006. The Commission of Liquidation obtained some EUR130 million in 2007 from the central government to finance transaction agreements. The latter include potential EUR30 million swap contracts with Banca Nazionale del Lavoro (rated 'AA'/Stable), EUR25 million cash advance from Banca OPI in 2004 and unpaid EUR11 million bond and loan installments at end-2006. The Commission still has about EUR60 million of cash (including EUR35 million from state subsidies and proceeds from pre-2007 outstanding receivables). Although Taranto can undertake asset sales to fund part of the outstanding commercial liabilities, such plans remain vague and are unlikely to materialize in the short term. Taranto was downgraded to 'D' on Jan. 10, 2007 after financial lenders confirmed missed debt installments due in December 2006. Located in the southern region of Puglia, Taranto is a mid-sized city with a population of about 200,000. It has 15% unemployment and GDP per capita of EUR14,500, 20% below the EU average. =================== K A Z A K H S T A N =================== BATYR KUZET: Creditors Must File Claims by June 13 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Batyr Kuzet insolvent on April 9, 2008. Creditors have until June 13, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 27 Aktau Mangistau Kazakhstan BIOSTAR-AKSU LLP: Claims Deadline Slated for June 17 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Biostar-Aksu insolvent on March 25, 2008. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Pobeda ave. 5 Pavlodar Kazakhstan Tel: 8 (7182) 32-38-46 EKIBASTUZ-BUSINESS LLP: Claims Filing Period Ends June 17 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Ekibastuz-Business insolvent on March 25, 2008. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Pobeda ave. 5 Pavlodar Kazakhstan Tel: 8 (7182) 32-38-46 HIMPOLIMER LLP: Creditors' Claims Due on June 13 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Himpolimer insolvent on March 17, 2008. Creditors have until June 13, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Myzy Str. 2/1 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 24-06-50 JUMBAKTAS LLP: Claims Registration Ends June 13 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Construction Firm Jumbaktas insolvent. Creditors have until June 13, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 KAZSTROY-2005 LLP: Creditors Must File Claims by June 13 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Kazstroy-2005 insolvent on April 9, 2008. Creditors have until June 13, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 27 Aktau Mangistau Kazakhstan SAGU LLP: Claims Deadline Slated for June 17 -------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Construction Concern Sagu insolvent. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan SELHOZMETALL LLP: Claims Filing Period Ends June 17 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Selhozmetall insolvent. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan TURAN-KOKSHE LLP: Creditors' Claims Due on June 13 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Turan-Kokshe insolvent. Creditors have until June 13, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (7162) 25-79-32 =================== K Y R G Y Z S T A N =================== TRAVEL STAR: Creditors Must File Claims by June 18 -------------------------------------------------- LLC Travel Star KG has declared insolvency. Creditors have until June 18, 2008 to submit written proofs of claim. Inquiries can be addressed to (0-555) 73-93-27, (0-555) 40-15- 41. =================== L U X E M B O U R G =================== AMERICAN AXLE: GM to Provide US$200 Million to End Strike --------------------------------------------------------- General Motors Corp. disclosed in a U.S. Securities and Exchange Commission filing that it agreed to provide American Axle & Manufacturing Holding with upfront financial support capped at US$200 million to help fund employee buyouts, early retirements and buydowns to facilitate a settlement of the work stoppage. As previously reported in the Troubled Company Reporter-Europe, United Auto Workers union president Ron Gettelfinger and Vice President James Settles disclosed that members at American Axle began an unfair labor practices strike at 12:01 a.m. on Feb. 26, 2008, following expiration of a four-year master labor agreement with the company. As a result of the strike, GM has been forced to shut down some plants. GM's recent quarterly results filing revealed that the work stoppage at American Axle unfavorably impacted GM North America earnings by US$800 million. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908 and is the world's largest automaker. 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. In 2007, nearly 9.37 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * On April 3, 2008, Moody's Investors Service placed the ratings of American Axle & Manufacturing Holdings, Inc., Corporate Family -- Ba3, under review for downgrade. In a related action, American Axle's Speculative Grade Liquidity Rating was lowered to SGL-2 from SGL-1. AMERICAN AXLE: UAW Chief Criticizes US$200 Million GM Aid --------------------------------------------------------- United Auto Workers union president Ron Gettelfinger criticized General Motors Corp.'s US$200 million aid to American Axle & Manufacturing Holdings Inc., saying that instead of resolving the labor dispute, GM's action will make the talks more difficult, John D. Stoll of The Wall Street Journal, citing a radio interview, reports. WSJ relates that the UAW chief predicts that Axle will make firm demands following GM's move. The auto supplier now intends to close a factory in Cheektowaga, New York. Axle believes that the labor protest will be settled either if the UAW eases off or GM intervenes, WSJ quotes people familiar with the matter. Approximately 3,650 associates are represented by the UAW at five facilities in Michigan and New York affected by the strike. AAM and the UAW are working to reach a new collective bargaining agreement for the original U.S. locations. Although AAM has made several economic proposals to the UAW with "all-in" hourly wage and benefit packages that were considerably higher than the market rate of AAM's UAW-represented competitors in the U.S., the UAW has repeatedly rejected these economic proposals. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908 and is the world's largest automaker. 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. In 2007, nearly 9.37 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * On April 3, 2008, Moody's Investors Service placed the ratings of American Axle & Manufacturing Holdings, Inc., Corporate Family -- Ba3, under review for downgrade. In a related action, American Axle's Speculative Grade Liquidity Rating was lowered to SGL-2 from SGL-1. EVRAZ GROUP: Banks Complete US$500-Million Loan's Syndication ------------------------------------------------------------- Banks have completed the syndication of a US$500 million bridge loan Evraz Group S.A. would use to finance its acquisition of IPSCO's Canadian plate and pipe business from Svenskt Stal AB, Reuters reports citing sources privy to the deal. Evraz had planned a US$2.1 billion loan, but reduced the amount to US$500 million after it completed a US$1.6 billion Euurobond issue, Reuters relates. As reported in the Troubled Company Reporter-Europe on March 17, 2008, Evraz said that the would have a net cost of US$2.3 billion. The transaction will be financed by a combination of a bridge loan raised at the Evraz level, as well as a non-recourse term loan arranged at the acquired company level. Under the structure of the agreed transaction, Evraz will also acquire the IPSCO Tubulars from SSAB and then sell it to OAO TMK. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. * * * As reported in the TCR-Europe on May 7, 2008, Fitch Ratings affirmed Evraz's Long-term IDR and senior unsecured ratings of 'BB' and Short-term IDR of 'B'. The ratings of Mastercroft Limited (Evraz's core subsidiary holding most of its key operating assets within Russia) are also affirmed at Long-term IDR 'BB' and Short-term IDR 'B', as is the senior unsecured 'BB' rating of Evraz Securities S.A. The Outlooks for Evraz's and Mastercroft Limited's Long-term IDRs are Stable. Fitch has assigned Evraz Group S.A.'s US$1.05 billion and US$550 million notes due in 2013 and 2018, respectively, final 'BB' ratings. The ratings are in line with Evraz's 'BB' Long-term Issuer Default rating. The notes maturing in 2013 have an annual coupon of 8.875% while the notes maturing in 2018 have an annual coupon of 9.5%. As reported in the TCR-Europe on March 18, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit and senior unsecured debt ratings on Russia- based steel producer Evraz Group S.A. and its core subsidiary Mastercroft Ltd. S&P also affirmed the Russia national scale ratings on Evraz and Mastercroft at 'ruAA'. The outlook is positive. At the same time, Moody's Investors Service placed Evraz's Ba2 corporate family rating, Ba2 rating for Senior Notes due 2009 and Ba3 rating for Senior Notes due 2015 on review for possible downgrade following the recent announcement of the acquisition of IPSCO's Canadian plate and pipe business from SSAB for a net cost of US$2.3 billion. MILLICOM INTERNATIONAL: Committee Proposes New Board Directors -------------------------------------------------------------- Millicom International Cellular S.A. disclosed on May 9, 2008, that ahead of the Annual General Meeting on May 27, 2008, the Nomination Committee had proposed to: -- elect Mr. Allen Sangines-Krause and Mr. Marten Pieters as new Non-Executive Directors of the company and -- re-elect Mr. Kent Atkinson, Ms. Mia Brunell Livfors, Ms. Donna Cordner, Mr. Daniel Johannesson and Mr. Michel Massart as Non-Executive Directors. The Committee also proposes to re-elect Mr. Daniel Johannesson as Non-Executive Chairman of the Board of Directors. Mr. Marten Pieters was CEO of MSI, which became Celtel, from 2003 through its acquisition by MTC in early 2007. During this time, he was a driving force in Celtel’s development as one of the leading pan-African telecommunications operators, serving some 20 million customers in 14 countries. Previously, from 1989 to 2003, Mr. Pieters worked at KPN where, from 2000, he was a member of the executive management board of KPN Telecom with specific responsibility for KPN’s Business Solutions Division. Prior to this he was EVP, KPN International Operations, covering Central and Eastern Europe, Asia and the US. Before this, he was Managing Director of two Telecoms districts, having joined KPN as Secretary to the Board of Management. Before starting his career in telecommunications, Mr. Pieters worked for 11 years at Royal Smilde Foods as Director of Finance and Strategic Planning and eventually as CEO in the Netherlands. He has a Law degree from Groningen University, The Netherlands. Mr. Allen Sangines-Krause worked for Goldman Sachs between 1993 and 2007, working in a variety of senior positions from COO for Latin America based in Mexico City and New York and most recently as Managing Director out of London. Prior to joining Goldman Sachs, Mr. Sangines-Krause was with Casa de Bolsa Inverlat, in Mexico, and before that he was a Founding Partner of Fidem, S.C., a Mexican investment bank, which was acquired by Casa de Bolsa Inverlat in 1991. Mr. Sangines-Krause currently sits on the Board of Investment AB Kinnevik and is Chairman of Rasaland, a real estate investment fund. He is a member of the Council of the Graduate School of Arts and Sciences of Harvard University. He has a Ph.D. in Economics from Harvard University and an undergraduate degree in Economics from Instituto Tecnologico Autonomo de Mexico. While at Harvard, he was economic advisor to the Bolivian President for three years, focused on successfully reducing hyperinflation from some 20,000% to single digit levels. Millicom Chairman, Mr. Daniel Johannesson, commented, “I am delighted to propose Mr. Sangines- Krause and Mr. Pieters to the Board of Directors of Millicom. Mr. Sangines-Krause has significant investment banking experience in both Central and South America and Europe, having spent many years living and working throughout Latin America, which continues to be an extremely important region for Millicom’s development. He already has a thorough understanding of the strategic direction of Millicom from his non-executive director role at Investment AB Kinnevik. Mr. Pieters has tremendous experience from the telecommunications sector, having worked at both KPN in Europe and most recently as CEO of Celtel in Africa. Africa remains an important focus area for Millicom’s future growth. I have no doubt that both proposed Directors’ expertise will be instrumental to Millicom in the future.” About Millicom International Headquartered in Bertrange, Luxembourg, and controlled by Sweden's AB Kinnevik, Millicom International Cellular S.A. -- http://www.millicom.com/-- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of around 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America at December 2005 is 15.2 million. * * * As of April 25, 2008, Millicom International Cellular S.A. carries Ba2 corporate family rating and B1 senior debt rating from Moody's Investors Service, which said the outlook is stable. ===================== N E T H E R L A N D S ===================== LYONDELLBASELL: Halts Polypropylene Production at Illinois Plant ---------------------------------------------------------------- LyondellBasell Industries AF SCA disclosed last week that it will stop producing polypropylene at its Morris, Illinois plant in the fourth quarter of 2008. Production will be shifted to other sites. Polyethylene production at the site will not be affected. "The decision to stop polypropylene production at our Morris plant supports LyondellBasell's long-term strategy to rationalize and concentrate production in our industry-leading Spheripol and Spherizone process facilities," said Yves Bonte, Senior Vice President of LyondellBasell's Polypropylene Business. LyondellBasell currently operates three polypropylene lines in Pasadena, Texas, and two polypropylene lines in Lake Charles, La. All of these units use Spheripol process technology. LyondellBasell's joint venture Indelpro, located in Mexico, operates a Spheripol process line and is building a new 350 KT Spherizone polypropylene plant at Altamira which is scheduled to start up later this year. Yves added, "In today's competitive environment, economies of scale and the ability to produce innovative, differentiated products are essential for business growth. In addition to being more cost effective, this will also allow us to improve our portfolio of grades and enhance overall product quality which will benefit our customers." LyondellBasell Industries AF SCA -- http://www.lyondellbasell.com/-- is a polymers, petrochemicals and fuels companies. LyondellBasell leads in polyolefins technology, production and marketing; a pioneer in propylene oxide and derivatives; and a significant producer of fuels and refined products, including bio-fuels. Through research and development, LyondellBasell develops innovative materials and technologies that deliver exceptional customer value and products that improve quality of life for people around the world. Headquartered in The Netherlands, LyondellBasell is privately owned by Access Industries. LYONDELLBASELL: Moody's Cuts Rating on 2nd Lien Facility to B3 -------------------------------------------------------------- Moody's Investors Service changed the outlook on all ratings of LyondellBasell Industries AF SCA to negative and downgraded the senior second lien guaranteed facility raised at BIL Holdings from (P)B2/LGD5(74) to B3/LGD 5(77). The rating action reflects the agencies assessment of the current operating performance of the group and the expectation that current weakness in the US olefins market is likely to present additional challenge to the company's initial plans to substantially reduce its LBO debt prior to the anticipated turnaround of the chemical cycle. The downgrade of the second lien facility reflects the changes in the liability structure. At the time of the assigning of the provisional ratings, Moody's assumed that part of the funding will be raised via US$5.5 billion senior second lien facility and US$2.5 billion unsecured notes to be raised at BIL Holdings. The definitive ratings assigned incorporate US$8 billion senior second lien guaranteed facility at BIL Holdings with an automatic extension option. As a result, the rating on the enlarged second lien facility has been downgraded from (P)B2 / LGD5(74) to B3/LGD5(77) reflecting the reduction in the amounts of junior debt that originally supported higher recovery rates on a smaller second lien facility. In the context of assigning the definitive ratings, and also taking into account the additional US$750 million revolver and US$600 m extension under the inventory-based facilities raised by the group, Moody's adjusted LGD rates on the remaining instruments. LyondellBasell operating performance in the first quarter 2008 remained broadly stable, while profitability of its US olefins was affected by higher than originally anticipated oil prices, and refining businesses was impacted by some operational issues that precluded further improvement in its profitability, as originally anticipated. The group continues to benefit from supporting market conditions in Europe and internationally. At the end of 2007, the leverage is estimated at close to 5 times on an unadjusted basis. At the peak of the petrochemical cycle, Moody's views this level of leverage as elevated and notes that the current B1 corporate family rating is underpinned by an expectation of strong de-leveraging in the next 12 months. Taking into account the substantial contribution of the Houston refinery to EBITDA, Moody's notes that any operating issues at the refinery are likely to have a meaningful impact on future profitability of the group. Moody's previously noted the substantial size of the interest payments in relation to the Company's current FFO and a substantial interest rate exposure. In light of weaker than originally anticipated performance of the group in 2008, the high leverage nature of the company and likely slower deleveraging, Moody's cautions that an early downturn in the cycle or delays with implementation of the synergies in 2008 or 2009 may reduce the headroom under the financial covenants, that the rating agency will continue to monitor. In the environment of higher oil prices, LyondellBasell took measures to strengthen its liquidity. The group secured US$750 million unsecured revolver that was provided by its shareholder, and has also negotiated a US$600 m extension to its asset-backed inventory facility raised against assets of its U.S. chemicals and refinery businesses. As a result, the group has US$1.75 billion in revolver facilities and US$3.6 billion of securitization and assets back facilities to support its working capital and liquidity needs. These ratings are affected: -- B1 Corporate family rating at LyondellBasell Industries AF SCA; -- Ba2/LGD 2 (26%) rating on the Senior Secured 1st lien facilities; -- B3/LGD 5 (77%) rating on Senior Secured 2d lien facility at BIL Holdings; -- B3/LGD 6 (94%) rating on 2015 8.375% notes at Basell AF SCA; -- B3/LGD 6 (94%) rating on 2027 8.1% notes at Basell Finance Company; -- B3/LGD 6 (94%) rating on 2026 7.55% notes at Lyondell Chemical Company (Assumed by Equistar LP); -- B3/LGD 6 (94%) rating on 2026 7.625% notes at Millennium America Inc.; -- B3/LGD 6 (94%) rating on 2010 10.25% notes at Lyondell Chemical Worldwide, Inc.; -- B3/LGD 6 (94%) rating on 2020 9.8% notes at Lyondell Chemical Worldwide, Inc. Following the acquisition of Lyondell in 2007, LyondellBasell became the world's largest independent producer of polypropylene and advanced polyolefins products, a leading supplier of polyethylene, and a global leader in the development and licensing of polypropylene and polyethylene processes and related catalyst sales. The group is estimated to generate PF US$40 billion in Revenues and US$4.4 billion in EBITDA in 2007. SCIENTIFIC GAMES: Earns US$19.9 Million in First Quarter 2008 ------------------------------------------------------------- Scientific Games Corporation reported first quarter 2008 revenues of US$257.0 million, up 6% from US$242.3 million in the first quarter of 2007. Net income was US$19.9 million or US$0.21 per diluted share, down from net income of US$24.8 million or US$0.26 per diluted share in the first quarter of 2007. Non-GAAP adjusted net income, excluding the Global Draw Limited earn-out accrual, phone card business restructuring cost, and stock compensation expense was US$29.0 million or US$0.31 per non-GAAP diluted share, compared to non-GAAP adjusted net income of US$30.0 million or US$0.32 per non-GAAP diluted share in the first quarter of 2007. EBITDA for the first quarter of 2008 was US$76.9 million, up from US$75.8 million in the first quarter of 2007. Adjusted EBITDA increased 8% to US$89.9 million for the first quarter of 2008, compared to adjusted EBITDA of US$82.9 million for the first quarter of 2007. During the quarter ended March 31, 2008, Scientific Games recorded charges of US$1.8 million, or US$0.01 per share, for a portion of the Global Draw contingent earn-out, US$2.8 million, or US$0.02 per share, for the phone card business restructuring costs and a charge of US$8.5 million, or US$0.06 per share, for stock compensation expense. Printed Products Printed Products Group revenue increased by 19% overall to US$135.9 million in the first quarter; Printed Products Group service revenue for the quarter was US$127.2 million, 22% ahead of the first quarter of 2007. Excluding revenues from Oberthur Gaming Technologies (OGT) of US$19.5 million, the Pennsylvania cooperative service contract re-pricing, and instant tickets shipped to China, ‘same store’ sales growth in the quarter was just under 9%. Holding all of these things constant and excluding licensed products, ‘same store’ sales were up 15% in the quarter. Once again we saw strong results from instant ticket sales in the U.K. and in Italy. As expected, overall margins in the Printed Products Group improved sequentially from 39% in the fourth quarter of 2007 to 43% in the first quarter of this year, and nearly back to the pre-OGT level of 44% recorded in the first quarter of 2007. The integration of OGT was completed part way through the first quarter of 2008 and the company expects to see the full benefits accruing in future quarters. First quarter revenue and gross margin were further impacted by the fact that while close to a billion instant tickets were manufactured and delivered to China, revenue was recognized on less than a quarter of the production, with the balance expected to be recognized in the second quarter. As mentioned previously, the Printed Products Group underwent a restructuring of the phone card business in the Leeds, England plant in the first quarter 2008 and incurred a charge of US$2.8 million, predominantly for employee termination. The redesign of our phone card product allows us to significantly reduce the number of employees needed to package the product and we expect margins to improve from this segment going forward. During the quarter, Scientific Games announced the successful launch of Olympic-themed instant lottery tickets by the China Sports Lottery in the People’s Republic of China. The program debuted on Sunday, March 23rd, in the Shandong province with over 1,500 initial retail locations. CSL has achieved approximately 1.3 billion Yuan or US$180 million in sales since this launch. CSL and Scientific Games have now expanded into nine provinces with 13,500 retailers with plans to expand into additional provinces approximately every two weeks until all 31 provinces in the PRC sell CSL instant tickets. These initial results are all due to the company's successful design, installation and operation of the national instant ticket network with the CSL, comprising a central monitoring and control system and a national call center. The company expects to have 40,000 instant ticket validation terminals online by the start of the Beijing Olympics, and at least 90,000 terminals by the end of 2009. The company's CSL printing agreement to establish a state-of-the-art instant ticket production facility in China is also on track to be complete by the end of the year. Subsequent to the end of the quarter, Scientific Games announced it had been awarded its fourth cooperative service contract in Germany with the Sachsen-Anhalt Lottery to supply instant tickets and cooperative services to 2.5 million people and approximately 670 retailers. Lottery Systems Group A year to year decline in one-time lottery equipment sales of nearly US$3 million accounted for the overall decline in Lottery Systems Group revenue in the quarter. While Lottery Systems Group margins declined slightly to 45% from 46% in 2007, domestic system margins, which have been increasing steadily for several quarters, improved once again by nearly a full percentage point to 45%. During the first quarter of 2008, Scientific Games announced a contract to supply 25,000 Leonardo/WAVE(TM) terminals to SISAL S.p.A., a leading Italian lottery and gaming company. Terminal deliveries will begin in the second quarter of this year and continue for the next 36 months. The Televisa Mexican lottery contract continued to have a negative impact on earnings, costing the company US$2.8 million, approximately US$0.02 per share, in the first quarter of 2008. As previously indicated, we believe the launch of instant tickets is the key to future profitability. At the present time, progress has been made in this regard, and we are cautiously optimistic that instant tickets will be launched during the second half of 2008. Subsequent to the end of the quarter, after an open and competitive procurement process, the Pennsylvania Department of Revenue announced it selected Scientific Games to enter into negotiations for its lottery systems contract to supply a new range of lottery equipment, including the “next-generation” WAVE(TM) terminal. The contract begins in January 2009, will have an initial term of five years, and will provide for five one-year extension options. Also during the quarter the company was granted a nine-month contract extension by the West Virginia Lottery to allow our previously announced protest to run its course. Diversified Gaming Global Draw’s ‘same store’ sales were up 36% in win per shop for the first quarter of 2008 versus 2007; and 17% on a win per terminal basis, both achieving record highs. By the end of the first quarter, Global Draw had connected 547 William Hill betting shops, representing approximately 2,100 dual-screen Nevada terminals, to the Global Draw server-based satellite network. The total Global Draw installed base in the U.K. has now reached 11,746 terminals. Initial installations into Corporacion Interamericana de Entretenimiento (CIE) in Mexico are performing ahead of expectations, recording win per day in excess of competitive products. Global Draw is also witnessing progress on expanding this network elsewhere in Latin America, Eastern Europe and Asia. In contrast to strong revenue growth in Global Draw, revenues within Diversified Gaming were down in the racing—related businesses and in Games Media Limited. The former was impacted by the shift of the racing communications business from our own books to the Roberts Communications Network, LLC joint venture in the second quarter of 2007. Games Media was impacted by the strategic shift in its business mix from one-time sale of analog machines in the first quarter of last year, to a digital, participation-based recurring revenue model at present. As previously reported, the roll-out of the new Games Media model, which builds on the Global Draw infrastructure, is proceeding exceedingly well. Lastly, as indicated earlier in this release, Diversified Gaming profits were impacted by nearly US$2 million due to the Global Draw earn-out accrual. During the quarter, Scientific Games signed new contracts with Nassau Regional Off-Track Betting Corporation to replace the existing totalisator services agreement for the provision of wagering systems hardware, software, service, wagering devices and a new digital Interactive Voice Response (IVR) telephone wagering system as well as provide for the implementation of a new Trackplay(TM) advanced deposit wagering (ADW) website. The company also signed four new contracts with customers in Germany and Finland for the provision of pari-mutuel wagering systems, terminal and services. Share Repurchase Program During the quarter Scientific Games purchased 1,000,000 shares at an aggregate cost of approximately US$18.0 million or US$18.03 per share. The remaining authorization under the company's stock repurchase program totaled US$172 million at March 31, 2008. Convertible Debentures A market price event did not occur for the quarter ended March 31, 2008 and, accordingly, the Convertible Debentures are not convertible during the current quarter ending June 30, 2008. During the first quarter of 2008, the average price of the company’s common stock did not exceed the specified conversion price of US$29.10 of the Convertible Debentures. Because of this, no additional shares of common stock have been included in the weighted average number of diluted shares for the first quarter of 2008. About Scientific Games Scientific Games Corporation (NASDAQ: SGMS) -- http://www.scientificgames.com/-- is an integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of fixed odds betting terminal