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 15, 2008, Vol. 9, No. 96 Headlines A U S T R I A FEKRY MOUSTAFA: Claims Registration Period Ends June 10 M&M ERDBAU-TRANSPORTE: Claims Registration Period Ends May 28 PETER JOEBSTL: Claims Registration Period Ends May 26 PLEVAN & PARTNER: Claims Registration Period Ends June 5 SMHT TRANSPORTE: Claims Registration Period Ends May 27 SOLAR HANDEL: Claims Registration Period Ends May 27 D E N M A R K EASTMAN KODAK: Posts US4115 Million Net loss in First Quarter E S T O N I A BALTIC PANEL: Declared Bankrupt by Estonian Court F R A N C E PATHEON INC: Eric Evans Named Chief Financial Officer PRIDE INTERNATIONAL: Earns US$240.7 Million in 1st Quarter 2008 G E R M A N Y AUTOHAUS WULFMEIER: Claims Registration Period Ends June 3 B & W DIGITALE: Claims Registration Period Ends June 1 BODO BARTH: Claims Registration Period Ends June 1 BRAUHAUS DUERSCHEIDT: Claims Registration Period Ends June 1 CAFE CONCEPT: Claims Registration Ends June 3 DORENWENDT BETEILIGUNGS: Claims Registration Ends June 30 DRUCKEREI J. P.: Claims Registration Ends June 3 FUNQUADRAT GMBH: Claims Registration Period Ends June 3 HTV IMMOBILIENMANAGEMENT: Claims Registration Period Ends June 3 HUDSON BIKE: Claims Registration Period Ends June 1 JOHLER DRUCK: Claims Registration Period Ends June 1 KRANKENPFLEGEDIENST WERNER: Claims Registration Ends June 1 LUCEFER LICHT: Claims Registration Ends June 3 MAS HAUS: Claims Registration Period Ends June 3 MOEBEL-FUCHS HANDELS: Claims Registration Period Ends June 3 NEXXT IT: Claims Registration Period Ends June 3 PRODAX GMBH: Claims Registration Period Ends June 2 RENERGIE SAARLOUIS: Claims Registration Period Ends June 2 RKF FLIESSESTRICH: Claims Registration Period Ends June 30 SPECTRUM BRANDS: March 30 Balance Sheet Upside-Down by US$232.9M SPITZER BAU: Claims Registration Period Ends June 2 THEODOR LENSEN: Claims Registration Period Ends June 2 WIKESA - KLEINTRANSPORTE GMBH: Claims Registration Ends June 12 I R E L A N D EDELWEISS CAPITAL: Moody's Cuts Rating on Class D Notes to Ba3 I T A L Y ALITALIA SPA: EC Gives Italy Until May 30 to Explain Loan ALITALIA SPA: Rome Prosecutor Probing Baldassare's Offer THERMADYNE HOLDINGS: Earns US$4.5 Mln in Quarter Ended March 31 K A Z A K H S T A N AK-NUR XXI: Creditors Must File Claims by June 17 ENERGO PROM: Claims Deadline Slated for June 18 ERTRANS LLP: Claims Filing Period Ends June 13 GOLDMAN ALLIANCE: Creditors' Claims Due on June 13 GROT-SEMEY LLP: Claims Registration Ends June 13 JERDEM LLP: Claims Deadline Slated for June 17 MERKURI KV: Claims Filing Period Ends June 17 TAIMUR SAUDA: Creditors' Claims Due on June 17 K Y R G Y Z S T A N OIL TRANS: Creditors Must File Claims by June 11 N E T H E R L A N D S AES CORP: Commences Tender Offer for US$377 Million Senior Notes AES CORP: Reveals Plan to Offer Notes in Private Placement AES CORP: Moody's Rates Proposed US$600 Mln Sr. Notes at B1 NIELSEN COMPANY: Posts US$82 Million Net Loss in 1st Qtr. 2008 NIELSEN COMPANY: Integrates Nielsen NRG with BASES Organization NIELSEN COMPANY: Product Placements Up 6% in First Quarter 2008 ROYAL AHOLD: Reports EUR7.5 Billion in Sales for 1st Qtr. 2008 N O R W A Y OCEAN RIG: Employee Share Saving Program Acquires 11,800 Shares OCEAN RIG: Oslo Bors Accepts DryShips' Mandatory Offer for Stake OCEAN RIG: First Quarter 2008 Revenue Ups to US$67.8 Million R O M A N I A CENTRAL EUROPEAN: Earns US$15.1 Mln in Quarter Ended March 31 R U S S I A AZOV-SEM-OVOSH OJSC: Creditors Must File Claims by June 26 BUILDER-3 LLC: Creditors Must File Claims by June 26 DON XXI: Creditors Must File Claims by June 26 FIRST UNITED: Moody's Puts B3/Baa2.ru Ratings on Domestic Bonds MOSCOW PLANETARIUM: Declared Bankrupt by Moscow Court NEVA LLC: Creditors Must File Claims by June 26 PAVLOVSK-AGROSNAB-HOLDING: Creditors Must File Claims by June 26 SIB-AUTO CJSC: Creditors Must File Claims by June 26 SISTEMA JSFC: Signs MoU with UAE's DAS Holding SITRONICS JSC: Unit Inks EUR40 Million Contract with Syria SLAVYANSKAYA SEED-GROWING: Creditors Must File Claims by June 26 S W E D E N XERIUM TECH: Posts US$4.7 Million Net Loss in First Quarter U K R A I N E BANK FORUM: Fitch Affirms Foreign Currency IDR at BB- EXPORT-IMPORT BANK: Fitch Affirms Foreign Currency IDR at BB- PRIVATBANK CJSC: Fitch Affirms Foreign Currency IDR at BB- PROCREDIT BANK: Fitch Affirms Foreign Currency IDR at BB- STATE SAVINGS: Fitch Affirms Foreign Currency IDR at BB- SWEDBANK OJSC: Fitch Affirms Foreign Currency IDR at BB- UKRSIBBANK JSCIB: Fitch Affirms Foreign Currency IDR at BB- UKRSOTSBANK: Fitch Affirms Foreign Currency IDR at BB- VTB BANK: Fitch Affirms Foreign Currency IDR at BB- * Fitch Affirms Ukraine's Long-term Foreign IDR at BB- U N I T E D K I N G D O M ABPM LTD: Appoints Joint Administrators from P&A BAA LIMITED: Mark Bullock Quits as Heathrow Airport Chief BURTON AEROPARTS: Brings In Liquidators from Moore Stephens CLEAR CHANNEL: Settles Suit and Amends Merger Agreement DENTS PLUS: Brings In Tenon Recovery to Administer Assets EMI GROUP: Plans to Slash Recorded Music Employees to 2,000 EOS AIRLINES: U.S. Trustee Selects Five-Member Creditors' Panel FEN SPORTS: Claims Filing Period Ends June 16 FLEXIBLE STORAGE: Taps Liquidators from Grant Thornton FORD MOTOR: Board Urges Shareholders to Take No Action on Offer FORD MOTOR: CAW Union Members Ratify New Labor Agreement FORD MOTOR: Discloses Results of Annual Shareholders’ Meeting MUSFLASHTV LTD: Calls In Liquidators from Tenon Recovery PARAGON EMPLOYMENT: Appoints Liquidators from Tenon Recovery SFM WEALTH: Hires Liquidators from Tenon Recovery STROMBERG CARBURETOR: Creditors' Meeting Slated for May 27 * S&P Takes CreditWatch Actions on 188 European Synthetic CDOs * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= FEKRY MOUSTAFA: Claims Registration Period Ends June 10 ------------------------------------------------------- Creditors owed money by KG Fekry Moustafa (FN 280523i) have until June 10, 2008, to file written proofs of claim to court- appointed estate administrator Walter Kainz at: Dr. Walter Kainz c/o Dr. Eva Wexberg Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 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 16, 2008 (Bankr. Case No. 4 S 50/08t). Eva Wexberg represents Dr. Kainz in the bankruptcy proceedings. M&M ERDBAU-TRANSPORTE: Claims Registration Period Ends May 28 ------------------------------------------------------------- Creditors owed money by LLC M&M Erdbau-Transporte (FN 281032h) have until May 28, 2008, to file written proofs of claim to court-appointed estate administrator Martin Koroschetz at: Dr. Martin Koroschetz Hauptstrasse 8 2540 Bad Voeslau Austria Tel: 02252/251 251 Fax: 02252/251251-5 E-mail: dr.koroschetz@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on June 11, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Berndorf, Austria, the Debtor declared bankruptcy on April 17, 2008 (Bankr. Case No. 10 S 44/08m). PETER JOEBSTL: Claims Registration Period Ends May 26 ----------------------------------------------------- Creditors owed money by KEG Peter Joebstl Sport Management (FN 172271s) have until May 26, 2008, to file written proofs of claim to court-appointed estate administrator Stephan Riel at: 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 9:30 a.m. on June 9, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 2101 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 16, 2008 (Bankr. Case No. 38 S 21/08b). PLEVAN & PARTNER: Claims Registration Period Ends June 5 -------------------------------------------------------- Creditors owed money by LLC Plevan & Partner (FN 269863h) have until June 5, 2008, to file written proofs of claim to court- appointed estate administrator Peter Wilhelm at: Dr. Peter Wilhelm Ringstrasse 9 3500 Krems Austria Tel: 02732/82265 Fax: 02732/822656 E-mail: rechtsanwalt@ra-wilhelm.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 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 Rohrendorf, Austria, the Debtor declared bankruptcy on April 17, 2008 (Bankr. Case No. 9 S 21/08y). SMHT TRANSPORTE: Claims Registration Period Ends May 27 ------------------------------------------------------- Creditors owed money by LLC SMHT Transporte und Handel (FN 292653y) have until May 27, 2008, to file written proofs of claim to court-appointed estate administrator Beate Holper at: 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 10, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 17, 2008 (Bankr. Case No. 6 S 55/08t). SOLAR HANDEL: Claims Registration Period Ends May 27 ---------------------------------------------------- Creditors owed money by LLC SOLAR Handel (FN 284340y) have until May 27, 2008, to file written proofs of claim to court-appointed estate administrator Erwin Senoner at: Dr. Erwin Senoner Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on June 10, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April (Bankr. Case No. 6 S 57/08m). ============= D E N M A R K ============= EASTMAN KODAK: Posts US4115 Million Net loss in First Quarter ------------------------------------------------------------- Eastman Kodak Company reported a 35%, or US$61 million, year- over-year improvement in its first-quarter loss from continuing operations on sales of US$2.093 billion. Kodak’s revenue from digital businesses rose 10% to US$1.366 billion, driven by strong year-over-year increases in most of its digital businesses. “Our first-quarter results are very much in line with our expectations, which included forecasted seasonality, and provide an early indication that Kodak is on a growth track,” said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. “We delivered strong performance across our major digital businesses, reinforcing our confidence in achieving our revenue, earnings and cash goals for the year.” Net loss for the first quarter of 2008 was US$115 million compared to a US$151 million net loss for the first quarter of 2007. Sales totaled US$2.093 billion, an increase of 1% from US$2.080 billion in the first quarter of 2007. Revenue from digital businesses totaled US$1.366 billion, a 10% increase from US$1.245 billion in the prior-year quarter. Traditional revenue totaled US$724 million, a 13% decline from US$830 million in the first quarter of 2007. The company’s first-quarter loss from continuing operations, before interest, other income (charges), net, and income taxes was US$81 million, compared with a loss of US$186 million in the year-ago quarter. On the basis of generally accepted accounting principles, the company reported a first-quarter loss from continuing operations of US$114 million, or US$0.40 per share, compared with a loss of US$175 million, or US$0.61 per share, in the year-ago period. Items of net expense that impacted comparability in the first quarter of 2008 totaled US$2 million after tax, or US$0.01 per share. The most significant items included curtailment gains resulting from previous restructuring actions of US$0.03 per share and gains on asset sales of US$0.03 per share, offset by discrete tax provision items and a legal settlement charge, together totaling US$0.07 per share. Items of net expense that impacted comparability in the prior-year quarter totaled US$95 million after tax, or US$0.33 per share, primarily due to restructuring charges, partially offset by a foreign tax reserve reversal. Gross Profit margin was 20.3% for the quarter, down slightly from 20.6% in the year-ago period, primarily attributable to significant year-over-year increases in silver, aluminum and other raw material costs, and continued investment in the consumer inkjet business. Selling, General and Administrative expenses decreased US$9 million from first-quarter 2007, primarily reflecting the company’s continued focus on controlling costs. As a percentage of revenue, SG&A was 18.4%, compared with 18.9% in the year-ago quarter. First-quarter net cash generation was a use of US$764 million, a US$311 million increase in cash used from the year-ago period. This corresponds to net cash used in operating activities from continuing operations on a GAAP basis of US$767 million in the first quarter, compared with US$397 million in the first quarter 2007. This increase in cash usage is due primarily to higher working capital, including inventory build associated with projected revenue growth, and higher payments to suppliers related to revenue growth in the prior year's fourth quarter. The company also made increased payments for performance-based compensation and for various tax items, contractual obligations and legal settlements. The company’s debt level stood at US$1.606 billion as of March 31, 2008, comparable to the year-end 2007 debt level of US$1.597 billion. Kodak held US$2.203 billion in cash and cash equivalents as of March 31, 2008, compared to the year-end 2007 level of US$2.947 billion. 2008 Outlook For 2008, on a continuing operations basis, Kodak re-affirms guidance provided in the company’s February investor meeting, including: -- Total company revenue growth in the range of 0% to 2%; digital revenue growth in the range of 7% to 10%; -- 2008 GAAP earnings from continuing operations in the range of US$250 million to US$275 million, including pre-tax charges in the range of US$60 million to US$80 million for rationalization and carryover restructuring costs; -- On a GAAP basis, cash provided by operating activities from continuing operations in the range of US$575 million to US$625 million; -- Cash generation in the range of US$400 million to US$500 million before dividend payments and after taking into account payments for carryover restructuring and other rationalization costs of approximately US$150 million. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. * * * As reported in the Troubled Company Reporter-Europe on April 24, 2008, Standard & Poor's Ratings Services revised its outlook on Eastman Kodak Co. to stable from negative. At the same time, S&P affirmed the ratings, including the 'B+' corporate credit rating. S&P credit analyst Tulip Lim explained that "[t]he outlook change reflects [S&P's] opinion that a near-term downgrade is unlikely." ============= E S T O N I A ============= BALTIC PANEL: Declared Bankrupt by Estonian Court ------------------------------------------------- An Estonian Court has declared Baltic Panel Group OU bankrupt as a result of rising labor and raw materials costs, Bloomberg News reports. Bloomberg cites Judge Anne Randjaerv as saying that the company's debts exceeded its assets by around 84 million krooni or US$8.3 million. The company had invested 400 million in equipment but was still unable to cope up with the increasing cost for Russian timber, Bloomberg relates citing Aeripaeev. Based in Tallinn, Estonia, Baltic Panel Group OU -- http://www.bpg.ee/-- produces veneer, plywood and various panels to furniture manufacturing. =========== F R A N C E =========== PATHEON INC: Eric Evans Named Chief Financial Officer ----------------------------------------------------- Patheon Inc. yesterday disclosed these executive management appointments: -- Eric W. Evans as Chief Financial Officer of Patheon Inc., -- Paul M. Garofolo as Senior Vice President and Chief Information Officer, -- Warren A. Horton as Vice President Global Quality Operations, and -- Doaa A. Fathallah as Senior Vice President, General Counsel Europe and Global Pharmaceutical Development Services. Wes Wheeler, Patheon’s Chief Executive Officer and President, provided a brief explanation of the changes: “Eric Evans will be responsible for managing the company’s financial function, and will work with me and our executive team as we create strategic and operational improvements in the business.” Eric brings over 24 years experience in various financial leadership roles in the pharmaceutical industry following a significant career in the steel industry. He joins Patheon most recently from Novartis AG. a provider of healthcare solutions including medicines, generic pharmaceuticals, preventative vaccines and diagnostic tools, and consumer health products. He has experience in all aspects of finance as well as extensive operating, analytical, leadership, and business development experience. John H. Bell, Chief Financial Officer, will leave Patheon at the end of the month to pursue new opportunities. “The company owes John Bell a great deal for his stewardship of our finance organization through a difficult period at Patheon. We wish him the best” said Wheeler. “Paul Garofolo is a proven leader with a track record of developing and stewarding long-term global Information Technology strategies and implementing new applications and processes. I am confident he will lead Patheon to cost effective global IT platforms. Paul will have responsibility for Information Technology globally including the development and implementation of a five year global IT Master Plan for Patheon. In addition he will assume responsibility for ‘The Patheon Advantage’, Patheon’s lean six sigma excellence program” said Wheeler. Paul has an extensive 14 year background in information technology and management consulting most recently with Valeant Pharmaceuticals where he was the Chief Information Officer. He has led all aspects of global IT organizations including development and implementation of long-term IT strategies as well as implementation of new applications and processes. “Doaa Fathallah will be responsible for all legal matters for Europe and Global Pharmaceutical Development Services” Wheeler continued. Doaa joins Patheon from Valeant Pharmaceuticals International where she was General Counsel Europe, Middle East & Africa (EMEA) and was responsible for all legal matters in the EMEA region. In addition to her corporate experience Doaa has extensive experience in all aspects of corporate and business law from her time in private practise where she represented privately held and publically traded companies. “Warren Horton will be responsible for establishing a new Quality System to be consistently applied at all Patheon sites. He will also ensure that the company meets all regulatory requirements for quality and compliance.” Warren brings over 10 years experience in the pharmaceutical industry to Patheon most recently from DSM Pharmaceuticals Inc. where he was responsible for quality assurance and regulatory affairs. In addition he has experience dealing with a large variety of dosage forms, efficient production and quality control and assurance in a variety of liquid and semi solid topical products. “I am delighted to welcome these executives to the Patheon leadership team. One of my near-term priorities has been to strengthen and rebuild the executive team for Patheon. These individuals bring proven track records, expertise and strong leadership” Wheeler concluded. About Patheon Inc. Headquartered in Mississauga, Ontario, Patheon Inc. (TSX: PTI) -- http://www.patheon.com/-- provides drug development and manufacturing services to the international pharmaceutical industry. Patheon operates a network of 10 manufacturing and six development facilities in the United States, Canada and Europe, employing more than 4,700 people and serving a customer base of 270 pharmaceutical and biotechnology companies. The company has operations is France, Italy, the United Kingdom and Puerto Rico. * * * As reported in the Troubled Company Reporter-Europe on April 28, 2008, Moody's Investors Service affirmed the B2 Corporate Family Rating of Patheon Inc. and changed the ratings outlook to negative from stable. Moody's also revised the rating on the US$75 million secured asset based revolver to Ba3 from B1 in accordance with Moody's Asset-Based Loan Rating Methodology and reflecting Moody's belief that the instrument would have very good recovery in a distressed scenario. The B1 rating on the US$150 million senior secured term loan B remains unchanged. PRIDE INTERNATIONAL: Earns US$240.7 Million in 1st Quarter 2008 --------------------------------------------------------------- Pride International, Inc. reported financial results for the three months ended March 31, 2008, achieving record revenues and income from continuing operations, which increased 85% when compared to the same three months in 2007. Income from continuing operations totaled US$136.1 million, or US$0.77 per diluted share, on revenues of US$557.4 million during the first quarter of 2008. The results compared to income from continuing operations of US$73.7 million, or US$0.42 per diluted share, on revenues of US$471.0 million, during the three months ended March 31, 2007. Results for the first quarter of 2008 included an after-tax gain of US$11.2 million, or US$0.06 per diluted share, relating to the sale of the Company's 30% interest in an Eastern Hemisphere-based land drilling joint venture. The company's net income for the three months ended March 31, 2008 was US$240.7 million, or US$1.35 per diluted share, compared to net income of US$101.7 million, or US$0.58 per diluted share, for the corresponding three months in 2007. Results for the first quarter of 2008 included income from discontinued operations of US$104.6 million, or US$0.58 per diluted share, principally relating to the gain from the sale of our three tender-assist rigs in the first quarter of 2008. The transaction resulted in an after-tax gain of US$116.2 million, of which US$102.0 million was recognized during the current quarter with the balance deferred. By agreement with the new owner, the company will continue to operate one of the three tender-assist rigs through December 2008, over which time the deferred gain will be recognized. Cash flows from operating activities totaled US$94.2 million during the three months ended March 31, 2008 while proceeds from the sale of non-strategic assets were US$225.8 million. Capital expenditures in the quarter were US$318.8 million, primarily due to the construction of three ultra-deepwater drillships and the completion of the upgrade project for the semisubmersible rig Pride Mexico. Total debt at March 31, 2008 was US$1,045.7 million, down US$145.8 million from total debt of US$1,191.5 million at Dec. 31, 2007. The decrease was due primarily to the repayment of the outstanding principal due under the drillship loan facility collateralized by the drillships Pride Africa and Pride Angola. Net debt (total debt less cash and cash equivalents of US$752.7 million) was US$293.0 million at March 31, 2008. Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., stated, "Our performance during early 2008 is noteworthy in several respects. Our operations execution remained excellent, supporting the continuation of strong financial results in the first quarter of 2008 following a record year in 2007. Our engineering and technical team, one of the most experienced in the industry, successfully completed four projects in the first quarter, including the upgrade of the semisubmersible rig Pride Mexico, which is currently transiting to Brazil to commence a five-year contract with Petrobras. During 2008, our marketing efforts have captured contracts valued at approximately US$5.2 billion, inclusive of bonus opportunities and contract awards for all three of our ultra- deepwater drillships under construction. Finally, the divestiture of non-strategic assets continued to progress with the first quarter 2008 closing of the sale of three tender- assist rigs. "These accomplishments have been critical in supporting our strategic transformation to a contract driller focused entirely offshore, with an emphasis on the deepwater sector. With the transition of Pride largely complete, we remain committed to expanding our ownership of deepwater assets and to delivering sustainable long-term shareholder value." About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 64 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 10 platform rigs, five managed deepwater rigs and seven Eastern Hemisphere-based land rigs. The company has subsidiaries in France, Netherlands, Venezuela, Bahamas, Mexico, Malaysia and Singapore, among others. * * * To date, Pride International carries Standard & Poor's Ratings Service's BB+ corporate credit rating. The company's unsecured debt is also rated BB+ by S&P. The outlook on the ratings is stable. ============= G E R M A N Y ============= AUTOHAUS WULFMEIER: Claims Registration Period Ends June 3 ---------------------------------------------------------- Creditors of Autohaus Wulfmeier GmbH & Co. KG have until June 3, 2008, to register their claims with court-appointed insolvency manager Dr. Winfried Andres. 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 Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen 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. Winfried Andres Heinrich-Held-Str. 16 45133 Essen Germany The District Court of Essen opened bankruptcy proceedings against Autohaus Wulfmeier GmbH & Co. KG on April 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Autohaus Wulfmeier GmbH & Co. KG Overwegstr. 79 45881 Gelsenkirchen Germany B & W DIGITALE: Claims Registration Period Ends June 1 ------------------------------------------------------ Creditors of B & W digitale Buerotechnik GmbH have until June 1, 2008, to register their claims with court-appointed insolvency manager Bjoern Gehde. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on July 29, 2008, where the court will verify the claims set out in the insolvency manager's report. The meeting of creditors will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bjoern Gehde Goethestr. 85 10623 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against B & W digitale Buerotechnik GmbH on Feb. 28, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: B & W digitale Buerotechnik GmbH Geraer Sr. 83 12249 Berlin Germany BODO BARTH: Claims Registration Period Ends June 1 -------------------------------------------------- Creditors of Bodo Barth GmbH & Co. KG have until June 1, 2008, to register their claims with court-appointed insolvency manager Hans-Gerd Jauch. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on June 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans-Gerd Jauch Sachsenring 81 50677 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Bodo Barth GmbH & Co. KG on Feb. 26, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bodo Barth GmbH & Co. KG Barbarastr. 3-9 50735 Cologne Germany BRAUHAUS DUERSCHEIDT: Claims Registration Period Ends June 1 ------------------------------------------------------------ Creditors of BRAUHAUS DUERSCHEIDT GMBH have until June 1, 2008, to register their claims with court-appointed insolvency manager Hans Joachim Sistig. Creditors and other interested parties are encouraged to attend the meeting at 8:20 a.m. on June 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans Joachim Sistig Hochwinkel 3 a 51069 Cologne Germany Tel: 688589 Fax: +49221681226 The District Court of Cologne opened bankruptcy proceedings against BRAUHAUS DUERSCHEIDT GMBH on April 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BRAUHAUS DUERSCHEIDT GMBH Attn: Georgis Papadopoulos, Manager Kaiserstr. 52 51145 Cologne Germany CAFE CONCEPT: Claims Registration Ends June 3 --------------------------------------------- Creditors of Cafe Concept Gastronomiebetriebs GmbH have until June 3, 2008 to register their claims with court-appointed insolvency manager Rainer M. Bahr. Creditors and other interested parties are encouraged to attend the meeting at 10:15 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 Dresden Hall D131 Olbrichtplatz 1 01099 Dresden 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: Rainer M. Bahr Obergraben 10 01097 Dresden Germany Web site: http://www.hermann-law.de/ The District Court of Dresden opened bankruptcy proceedings against Cafe Concept Gastronomiebetriebs GmbH on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cafe Concept Gastronomiebetriebs GmbH Krenkelstr. 7 01309 Dresden Germany DORENWENDT BETEILIGUNGS: Claims Registration Ends June 30 --------------------------------------------------------- Creditors of Dorenwendt Beteiligungs GmbH have until June 30, 2008 to register their claims with court-appointed insolvency manager Dr. Peter Staufenbiel. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on July 3, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Jena Hall 91 Jena Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Peter Staufenbiel Untermarkt 12 99974 Muehlhausen Germany The District Court of Jena opened bankruptcy proceedings against Dorenwendt Beteiligungs GmbH on April 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dorenwendt Beteiligungs GmbH Attn: Wolfgang Dorenwendt, Manager Hauptstrasse 33 37359 Wachstedt Germany DRUCKEREI J. P.: Claims Registration Ends June 3 ------------------------------------------------ Creditors of Druckerei J. P. Bachem GmbH & Co. Kommanditgesellschaft have until June 3, 2008 to register their claims with court-appointed insolvency manager Dr. Christoph Niering. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 24, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Christoph Niering Brabanter Str. 2 50674 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Druckerei J. P. Bachem GmbH & Co. Kommanditgesellschaft on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Druckerei J. P. Bachem GmbH & Co. Kommanditgesellschaft Attn: Stefan Preussler, Manager Cottbuser Str. 1 51063 Cologne Germany FUNQUADRAT GMBH: Claims Registration Period Ends June 3 ------------------------------------------------------- Creditors of Funquadrat GmbH have until June 3, 20008, to register their claims with court-appointed insolvency manager Hendrik Rogge. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on July 3, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hendrik Rogge Haferweg 22 22769 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Funquadrat GmbH on April 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Funquadrat GmbH Attn: Thomas Kruse, Manager Saseler Chaussee 136c 22393 Hamburg Germany HTV IMMOBILIENMANAGEMENT: Claims Registration Period Ends June 3 ---------------------------------------------------------------- Creditors of HTV Immobilienmanagement GmbH have until June 3, 2008, to register their claims with court-appointed insolvency manager Sylvia Rhein. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 15, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.3102 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 HTV Immobilienmanagement GmbH on April 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HTV Immobilienmanagement GmbH Darmstadter Strasse 184 64625 Bensheim Germany Attn: Dr. Michael Gossmann, Manager Hesslocher Str. 53 65207 Wiesbaden Germany HUDSON BIKE: Claims Registration Period Ends June 1 --------------------------------------------------- Creditors of Hudson Bike GmbH have until June 1, 2008, to register their claims with court-appointed insolvency manager Hubert Ampferl. Creditors and other interested parties are encouraged to attend the meeting at 11:00 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 Nuremberg Meeting Hall 152/I Flaschenhofstr. 35 Nuremberg 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. Hubert Ampferl Stahlstr. 17 90411 Nuremberg Germany The District Court of Nuremberg opened bankruptcy proceedings against Hudson Bike GmbH on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hudson Bike GmbH Attn: Frank Tom Schoeck, Manager Ernst-Sachs-Str. 17 90441 Nuremberg Germany JOHLER DRUCK: Claims Registration Period Ends June 1 ---------------------------------------------------- Creditors of Johler Druck GmbH have until June 1, 2008, to register their claims with court-appointed insolvency manager Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on July 4, 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 Neumuenster Meeting Hall B.126 Law Courts Boostedter Strasse 26 Neumuenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg Germany The District Court of Neumuenster opened bankruptcy proceedings against Johler Druck GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Johler Druck GmbH Gadelander Strasse 77 24539 Neumuenster Germany KRANKENPFLEGEDIENST WERNER: Claims Registration Ends June 1 ----------------------------------------------------------- Creditors of Krankenpflegedienst Werner und Haas GmbH have until June 1, 2008, to register their claims with court-appointed insolvency manager Karl-Dieter Sommerfeld. Creditors and other interested parties are encouraged to attend the meeting at 11:20 a.m. on June 27, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 1240 12th Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Karl-Dieter Sommerfeld Hammerweg 3 51766 Engelskirchen Germany The District Court of Cologne opened bankruptcy proceedings against Krankenpflegedienst Werner und Haas GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Krankenpflegedienst Werner und Haas GmbH Attn: Klaus Werner, Manager Koelner Str. 15 51429 Bergisch Gladbach Germany LUCEFER LICHT: Claims Registration Ends June 3 ---------------------------------------------- Creditors of LUCEFER LICHT GmbH have until June 3, 2008 to register their claims with court-appointed insolvency manager Joachim Voigt-Salus. Claims will be verified at 11:30 a.m. on Aug. 4, 2008 at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany Creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Voigt-Salus Rankestrasse 33 10789 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against LUCEFER LICHT GmbH on March 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LUCEFER LICHT GmbH Reichenberger Strasse 124 Haus A Treppe 1 10999 Berlin Germany MAS HAUS: Claims Registration Period Ends June 3 ------------------------------------------------ Creditors of MAS Haus GmbH have until June 3, 2008, to register their claims with court-appointed insolvency manager Henning schorisch. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 22, 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 Dresden Hall D131 Olbrichtplatz 1 01099 Dresden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henning schorisch Wasastrasse 15 01219 Dresden Germany Website: www.hww-kanzlei.de The District Court of Dresden opened bankruptcy proceedings against MAS Haus GmbH on April 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MAS Haus GmbH Bansiner Str. 4 01109 Dresden Germany Attn: Joerg May, Manager Am Alten Bahndamm 31 01328 Dresden Germany MOEBEL-FUCHS HANDELS: Claims Registration Period Ends June 3 ------------------------------------------------------------ Creditors of MOEBEL-FUCHS Handels GmbH have until June 3, 2008, to register their claims with court-appointed insolvency manager Dr. Dirk Rueffert. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on June 23, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Nebenstelle Meeting Hall 2 Elisabethstrasse 6 26135 Oldenburg 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. Dirk Rueffert Donnerschweer Str. 398 26123 Oldenburg Germany Tel: 0441 340770 Fax: 0441 34077340 E-mail: info@rueffert-rechtsanwaelte.de The District Court of Nebenstelle opened bankruptcy proceedings against CO on March 27, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MOEBEL-FUCHS Handels GmbH Am Fuchsberg 7a 27798 Hude Germany Attn: Karl-Heinz Hinrichs, Manager Paul-Krey-Str. 167 26135 Oldenburg Germany NEXXT IT: Claims Registration Period Ends June 3 ------------------------------------------------ Creditors of nexxt IT Systeme GmbH have until June 3, 2008, to register their claims with court-appointed insolvency manager Arnd Sebelefsky. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on July 15, 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 Room 101 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: Arnd Sebelefsky Arcostr. 3 80333 Muenchen Germany Tel: 089/5490250 Fax: 089/558674 The District Court of Munich opened bankruptcy proceedings against nexxt IT Systeme GmbH on April 14, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: nexxt IT Systeme GmbH Attn: Dominik Henz, Manager Stockdorfer Str. 45 81475 Muenchen Germany PRODAX GMBH: Claims Registration Period Ends June 2 --------------------------------------------------- Creditors of Prodax GmbH have until June 2, 2008, to register their claims with court-appointed insolvency manager Peter C. Darr. Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Augsburg Meeting Hall 162 Alten Einlass 1 86150 Augsburg 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: Peter C. Darr Candidplatz 13 81543 Munich Germany The District Court of Augsburg opened bankruptcy proceedings against Prodax GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Prodax GmbH Berliner Allee 28b 86153 Augsburg Germany RENERGIE SAARLOUIS: Claims Registration Period Ends June 2 ---------------------------------------------------------- Creditors of Renergie Saarlouis GmbH have until June 2, 2008, to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 8:10 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 Nordhorn Hall 42 Seilerbahn 15 48529 Nordhorn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Sontopski Gnoiener Platz 10 48493 Wettringen Germany Tel: 02557/93840 Fax: 02557/938450 The District Court of Nordhorn opened bankruptcy proceedings against Renergie Saarlouis GmbH on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Renergie Saarlouis GmbH Stockholmer Strasse 31 48455 Bad Bentheim Germany RKF FLIESSESTRICH: Claims Registration Period Ends June 30 ---------------------------------------------------------- Creditors of RKF Fliessestrich GmbH have until June 30, 2008, to register their claims with court-appointed insolvency manager Dr. Frank Kebekus. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 14, 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 Duisburg Hall S4 Kardinal-Galen-Strasse 124-132 47058 Duisburg 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 Duisburg opened bankruptcy proceedings against RKF Fliessestrich GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RKF Fliessestrich GmbH Kurt-Schumacher-Strasse 226 46539 Dinslaken Germany Attn: Roland Keusgen, Manager Wilhelmshoehe 1 47058 Duisburg Germany SPECTRUM BRANDS: March 30 Balance Sheet Upside-Down by US$232.9M ---------------------------------------------------------------- Spectrum Brands Inc. last week reported its financial results for its second fiscal quarter ended March 30, 2008. At March 30, 2008, the company's consolidated balance sheet showed US$3.3 billion in total assets and US$3.5 million in total liabilities, resulting in a US$232.9 million total stockholders' deficit. The company reported a net loss of US$111.7 million on net sales of US$647.1 million for the quarter ended March 30, 2008. This compares with a net loss of US$237.5 million on net sales of US$634.5 million during the second quarter of fiscal 2007. Spectrum Brands' net sales in the current quarter represented a 2.0% increase from the prior year, after excluding the Canadian division of the Home and Garden business, which the company sold in November 2007. The company said that the increase primarily reflects strong double digit growth in the company's personal care and companion pet supply product lines. Favorable foreign currency contributed US$27.0 million, or 4.0% to net sales. Partially offsetting the positive trends were lower sales in consumer batteries and men's electric shaving and grooming in North America. Additionally, the company said that its Home & Garden division saw a later than normal start to its peak selling season this year, delaying some expected revenues into the third quarter. Adjusted EBITDA Adjusted EBITDA, a non-GAAP measurement, was US$66.2 million as compared with US$54.0 million in the second quarter of the prior year, a 23.0% improvement. For the latest twelve months, adjusted EBITDA is US$296.3 million and has increased 26.0% compared to one year ago. "This marks the fourth consecutive quarter of double digit growth in adjusted EBITDA. This level of performance reflects the very strong focus and commitment our team has to drive profitable growth in this business," said Kent Hussey, chief executive officer. "I'm pleased with the progress we're making. Despite a sluggish U.S. economy, continuing tight inventory controls at retailers and rising input costs, our teams have worked hard to make the necessary changes to improve the efficiency and profitability of this business." Gross Profit and Gross Margin Gross profit and gross margin for the quarter were US$234.6 million and 36.3%, respectively, versus US$223.8 million and 35.3% for the same period last year. Within cost of sales, the company incurred restructuring and related charges of approximately US$200,000 this quarter related to headcount reductions taken as part of its 2007 global realignment and US$6.7 million in the second quarter of 2007. Also, within cost of sales this quarter was US$4.7 million in depreciation related to the Home & Garden segment that was not present last year. Operating Expenses The current quarter's operating expenses were US$222.9 million as compared with US$420.3 million in operating expenses in the same quarter last year. Included in this year's operating expenses were US$15.8 million of additional depreciation and amortization, US$13.2 million for a non-cash intangibles impairment related to trade names in the Home & Garden segment and US$5.2 million in restructuring and related charges. In the second quarter of fiscal 2007, operating expenses included a non-cash charge of US$214.0 million for a goodwill impairment and US$11.2 million in restructuring and related charges. Operating Income Spectrum generated second quarter operating income and operating margin of US$11.7 million and 1.8%, respectively, versus an operating loss of US$196.5 million in the same period last year. Interest Expense Interest expense was US$58.3 million compared to US$85.2 million in the same period last year. 2007 interest expense included a prepayment premium of US$11.6 million associated with the refinancing of the company's senior credit facility and the write-off of debt issuance costs of US$24.6 million, accounting for the variance from this quarter's interest expense. Income Tax Expense/Benefit Tax expense recorded during the quarter was US$66.3 million versus a tax benefit of US$45.9 million in the same period last year. The tax expense in the current quarter included a US$51.9 million expense related to increasing the company's valuation allowance against the net deferred tax asset of its Home & Garden segment necessitated as a result of the reclassification of the segment from discontinued operations to continuing operations. In addition, similar to the first quarter of 2008, the company recorded an expense in the quarter to increase its valuation allowance against its U.S. federal net deferred tax asset of its remaining business segments to reserve for the possibility that the deferred tax assets will not be realized. Senior Credit Facilities During the second quarter of fiscal 2007, the company refinanced its outstanding senior credit facilities with new senior secured credit facilities pursuant to a new senior credit agreement consisting of a US$1.0 billion Term B Loan facility, a US$200.0 million Term B II Loan facility, a EUR262.0 million Term Loan facility, and a US$50.0 million synthetic letter of credit facility. On Sept. 28, 2007, as provided for in the senior credit agreement, the company entered into a US$225.0 million Asset Based Revolving Loan Facility pursuant to a new credit agreement. The ABL facility replaced the U.S. Dollar Term B II Loan, which was simultaneously prepaid using cash on hand generated from the company's operations and available cash from prior borrowings under its senior credit agreement in connection with the above-referenced refinancing. As a result of the prepayment of the U.S. Dollar Term B II Loan, under the terms of the ABL credit agreement and borrowings under the ABL facility during the first half of fiscal 2008, as of March 30, 2008, the company had aggregate borrowing availability of approximately US$37.0 million, net of lender reserves of US$32.0 million and outstanding letters of credit of US$3.0 million, under the ABL facility. During the six month period ended March 30, 2008, the company prepaid US$19.0 million of term loan indebtedness under its senior credit agreement with borrowings under the ABL facility and net proceeds from the sale of the Canadian division of the Home and Garden Business. At March 30, 2008, the aggregate amount outstanding under the senior credit facilities totaled a U.S. Dollar equivalent of US$1.6 billion, including principal amounts of US$984.0 million under the U.S. Dollar Term B Loan, EUR258.0 million under the Euro Facility and US$153.0 million under the ABL Facility, including US$3.0 million in letters of credit. Senior Subordinated Notes At March 30, 2008, the company had outstanding principal of US$700.0 million under the 7 3/8% Senior Subordinated Notes due 2015, outstanding principal of US$3.0 million under the 8 1/2% Senior Subordinated Notes due 2013, and outstanding principal of US$347.0 million under the Variable Rate Toggle Senior Subordinated Notes due 2013. As of March 30, 2008, the company was in compliance with all covenants under the Senior Subordinated Notes and the respective indentures. The company, however, is subject to certain restrictions under the terms of the respective indentures because, due to significant restructuring charges and reduced business performance, it does not currently satisfy the Fixed Charge Coverage Ratio test of 2:1 under each of the indentures. Until the test is satisfied, the company and certain of its subsidiaries are limited in its ability to make significant acquisitions or incur significant additional senior credit facility debt beyond the Senior Credit Facilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 30, 2008, are available for free at http://researcharchives.com/t/s?2bac About Spectrum Brands Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a supplier of batteries, lawn and garden care products, specialty pet supplies, shaving and grooming products, household insect control products, personal care products and portable lighting. The company's European unit, Rayovac Europe GmbH, is headquartered in Sulzbach, Germany. Outside the United States, the company also has manufacturing facilities in Brazil, Columbia and China. * * * As reported in the Troubled Company Reporter-Europe on April 15, 2008, Standard & Poor's Ratings Services revised its outlook on Spectrum Brands to developing from negative. At the same time, Standard & Poor's affirmed all of its ratings on the company, including the 'CCC+' corporate credit rating. Approximately US$2.6 billion of funded debt was affected by the action. * * * As reported in the Troubled Company Reporter-Latin America on April 16, 2008, Standard & Poor's Ratings Services revised its outlook on Atlanta, Georgia-based Spectrum Brands Inc. to developing from negative. At the same time, Standard & Poor's affirmed all of its ratings on Spectrum Brands, including the company's 'CCC+' corporate credit rating. SPITZER BAU: Claims Registration Period Ends June 2 --------------------------------------------------- Creditors of Spitzer Bau GmbH have until June 2, 2008, to register their claims with court-appointed insolvency manager Dr. Thomas Karg. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 9, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Memmingen Meeting Hall 103 Ground Floor Buxacher Strasse 6 Memmingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Thomas Karg Zellerbachstr. 2 87700 Memmingen Germany Tel: 08331/925049-0 Fax: 08331/925049-10 The District Court of Memmingen opened bankruptcy proceedings against Spitzer Bau GmbH on Feb. 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Spitzer Bau GmbH Attn: Spitzer Ludwig, Manager Sonnengasschen 6 87719 Mindelheim Germany THEODOR LENSEN: Claims Registration Period Ends June 2 ------------------------------------------------------ Creditors of Theodor Lensen GmbH have until June 2, 2008, to register their claims with court-appointed insolvency manager Rolf Otto Neukirchen. 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 Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen 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 Otto Neukirchen Zweigertstr. 28-30 45130 Essen Germany The District Court of Essen opened bankruptcy proceedings against Theodor Lensen GmbH on April 17, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Theodor Lensen GmbH Zur Reithalle 86 46286 Dorsten Germany WIKESA - KLEINTRANSPORTE GMBH: Claims Registration Ends June 12 --------------------------------------------------------------- The court-appointed insolvency manager for Wikesa - Kleintransporte GmbH, Haro Helms will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on June 12, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on July 17, 2008 at the same venue. Creditors have until June 3, 2008 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Haro Helms Schillerstr. 10 28195 Bremen Germany Tel: 0421/337790 Fax: 0421/3377933 E-mail: helms@dr-stankewitz.de Web site: http://www.dr-stankewitz.de/ The District Court of Bremen opened bankruptcy proceedings against Wikesa - Kleintransporte GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wikesa - Kleintransporte GmbH Attn: Wilfried Dieter Kueck, Manager Eppenhainer Strasse 15 28307 Bremen Germany ============= I R E L A N D ============= EDELWEISS CAPITAL: Moody's Cuts Rating on Class D Notes to Ba3 -------------------------------------------------------------- Moody's Investors Service downgraded two classes of notes issued by Edelweiss Capital PLC under Series 2007-2. The downgrades are the result of ratings migration and equity share price movements of the underlying portfolio of Equity Default Swaps. While the transaction is composed of an equal number of equity default swaps in the risk portfolio (long EDS exposures) and in the insurance portfolio (short exposures), the downgrades results from the presence of a higher proportion of US financial and real-estate entities in the risk portfolio, whose share price decreased significantly. As of May 12, 2007, the risk portfolio (respectively the insurance portfolio) had two reference entities -- Countrywide Financial Corporation and MGIC Investment Corporation - (resp. none) which have a share price below their EDS trigger levels (those entities have a barrier above 100%). Two (resp. one) reference entities, whose barrier is above 85%, belonged to the risk portfolio (resp. insurance portfolio). The average barrier of the risk portfolio is 48% (resp. 38% for the insurance portfolio). The barrier of a reference entity is the performance indicator for EDS exposures. For a given reference entity, it represents the ratio between the EDS trigger and the current share price both expressed in the relevant currency. At closing, all barriers were at 35%. The barrier will increase as the underlying stock price decreases. Conversely, the barrier will decrease as the underlying stock price increases. A barrier greater than 100% corresponds to a share price below the EDS trigger. For illustration purposes, the share price of a reference entity whose barrier is 150% depreciated by 76% since closing. The share price will have to appreciate by at least 50% of its current value to move back above its EDS trigger. On the other hand, the price of a reference entity whose barrier is 85% depreciated by 59% since closing. That share price could depreciate by up to 15% of its current value without hitting the EDS trigger level. The distressed equity events observation period will start on the May 15, 2010 and lasts for three years until the May 14, 2013, the maturity of the transaction, such that no equity event related losses have occurred at this stage and all tranches still benefit from their initial subordination levels. The modelling is based on the public EDS methodology using the standard CDOROM™ model version 2.4: (a) Moody's defines three stock market regimes: Normal, Stressed or Crash, with related probabilities of occurrence to account for the global equity market cycles. (b) Each equity default swap entity is modelled individually with a standard multi-factor monte carlo model incorporating intra- and inter-industry correlations. In each scenario, defaults are simulated. Losses on the portfolio are then derived, which in turn induces a potential loss on the related tranches. By repeating this process and averaging over a number of simulations, an estimate of the expected loss borne by the tranches is derived. For entities whose barrier is above 40%, a combination of historical analysis and a volatility-based approach was considered in calculating the default probability. These rating actions are: Edelweiss Capital PLC - Series 2007-2: (1) Class D US$ Series 2007-2 Asset-Backed Floating Rate Notes due 2013 -- Current Rating: Ba3 -- Prior Rating: Ba2, on review for downgrade (2) Class A EUR Series 2007-2 Asset-Backed Floating Rate Notes due 2013 -- Current Rating: A2 -- Prior Rating: Aa1, on review for downgrade ========= I T A L Y ========= ALITALIA SPA: EC Gives Italy Until May 30 to Explain Loan --------------------------------------------------------- The European Commission has extended to May 30, 2008, the deadline for the Italian government to provide details on its EUR300-million loan to Alitalia S.p.A., Reuters reports citing a commission spokesman. The Commission is reviewing the loan for possible violation of the European Union rule on state aid. Italy needs to prove that the loan was offered on commercial terms to gain approval from the Commission. European Union Transport Commissioner Jacques Barrot, however, said Alitalia's weak coffers have raised doubts on the legality of the loan. Alitalia may face months-long probe over the legality of the loan, which may further cramp Italy's efforts to sell its 49.9% stake in the national carrier. 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. ALITALIA SPA: Rome Prosecutor Probing Baldassare's Offer -------------------------------------------------------- The Prosecutor of Rome has commenced investigation into the financial transactions of the consortium led by Antonio Baldassare relating to its offer for the Italian government's 49.9% stake in Alitalia S.p.A., Agenzia Giornalistica Italia reports. The prosecutors -- Stefano Pesci, Maria Francesca Loy, Gustavo De Marinis, and Nello Rossi -- are probing whether the dealings resulted to manipulation of Alitalia's stock price, AGI relates. According to AGI, the prosecutors will send a formal request to foreign courts for judicial assistance to find out the type of financial packages offered to the Baldassare consortium. In November 2007, Alitalia's board of directors concluded that Mr. Baldassarre's consortium lack necessary requisites to take part in the auction for the government's stake. 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. THERMADYNE HOLDINGS: Earns US$4.5 Mln in Quarter Ended March 31 --------------------------------------------------------------- Thermadyne Holdings Corporation reported results for the three months ended March 31, 2008. Net sales in the first quarter of 2008 increased 12.7% to US$130.8 million, compared to the 2007 first quarter. Excluding the impact of foreign currency translations, net sales increased 7.9%. International sales increased 23.6% (11.2% in local currency) led by the Asia Pacific region with a 13.7% increase on a local currency basis. Sales of all product lines increased with demand continuing to be particularly strong for the company’s new Cutmaster manual plasma cutting units and specialty hard facing products. Sales of both the Company’s plasma cutting and filler metal product lines increased approximately 20%. Gross margin in the first quarter of 2008 was 32.3% of net sales, compared to 32.6% of net sales in the prior-year first- quarter period. The decline from the prior-year’s first quarter was due to the ongoing effects of commodity cost increases over the twelve-month time period. This result was better than the gross margin of 31.2% the company recorded for the year 2007, and reflects a continuation of the longer-term progress the Company is making to control costs. Paul D. Melnuk, Thermadyne’s Chairman and Chief Executive Officer commented: “The better-than-expected sales growth is attributable to our improved customer service, more effective new product introductions and strong market demand. Gross margins also continued to build on the improving trend that began in 2007. Our continuous improvement (TCP) process cost savings, the benefits of more effective procurement practices and the value from operating leverage in the 2008 first-quarter period largely offset the double-digit material inflation that occurred across most commodities we purchase. Further, the April 1, 2008 price increase will help offset the trend of rising commodity prices in the second quarter and beyond.” Selling, general and administrative costs were US$27.5 million, or 21.0% of sales, in the first quarter of 2008, compared to US$26.0 million, or 22.4% of sales, in last year’s first quarter. New product launches and expanded new product development activities, as well as expansion of the international sales and global operations capabilities, contributed to the 2008 first quarter increase in expenses, compared to the 2007 first quarter. Other Income and Expense Items in the First Quarter of 2008 Interest costs of US$5.3 million were US$1.7 million less than the prior-year’s first quarter. The average indebtedness was 11% less than in the prior-year’s first quarter and the effective interest rate declined 170 basis points. This decline in the effective interest rate reflects the combined benefit of the lower Libor rates which impact approximately 40% of the Company’s total debt and the reduced interest rate grids for the Working Capital and the Second Lien Facilities, as a result of the amendments to the Agreements in June 2007. The effective interest rate in the first quarter of 2008 includes the 1.25% Special Interest payment adjustment applicable to the Company’s US$175 million Senior Subordinated Notes. This interest payment adjustment declined to 0.75% effective April 1, 2008, as a result of the company’s reduced leverage ratio. For the 2008 first quarter, the effective income tax rate was 44% due to the inclusion of certain foreign earnings without the recognition of the related benefit of foreign tax credits that are carried forward. In the prior-year first quarter, the effective income tax rate was 64% also as a result of the inclusion of certain foreign earnings without the recognition of the related benefit of foreign tax credits that are carried forward. Due to the use of net operating loss carryovers available to offset U.S. taxable income, the Company estimates it will pay income taxes in 2008 at the rate of approximately 22%. For the first quarter of 2008, net income from continuing operations was US$4.7 million, or US$0.35 per diluted share. In comparison, for the first quarter of 2007 net income from continuing operations was US$1.3 million, or US$0.10 per diluted share. Included in net income in the 2008 first quarter were losses from discontinued operations of US$0.2 million, or US$0.01 net loss per diluted share. This compares to income of US$0.1 million, or US$0.01 net income per diluted share, in the 2007 first quarter. For the first quarter of 2008, net income was US$4.5 million, or US$0.34 per diluted share, compared to a net income of US$1.4 million, or US$0.11 net income per diluted share, in the 2007 first quarter. Operating activities of the company provided US$2.9 million of cash in the first quarter of 2008, while in the first quarter of 2007, the company used US$20.3 million for operating activities. The first quarter is traditionally a period of high cash requirements for accounts receivable and inventory builds. The significantly improved cash flows during the first quarter of 2008 are due to improvement in all components of working capital management. In particular, inventories declined US$11 million from the prior-year quarter despite the growth in the business. Inventory turns improved to 3.9 times per year versus 3.1 times in the prior-year first quarter. During the quarter, the company repaid US$7 million of the Second Lien Facility to satisfy the “Excess Cash Flow” requirement of the Senior Subordinated Notes Indenture. As of March 31, 2008, the company had combined cash and availability under its revolver of US$67 million. In the first quarter of 2008, Operating EBITDA from continuing operations improved 18% to US$17.7 million, or 13.5% of net sales, compared to US$15.0 million, or 12.9% of net sales, in the first quarter of 2007. Including our discontinued operations for the first quarter of 2008, Operating EBITDA, as adjusted, was US$17.5 million. Mr. Melnuk stated: “In the first quarter of 2008, sales, profitability and cash flow comparisons all improved, building on the momentum realized throughout 2007. Our efforts to achieve better performance levels in production, customer service and new product introductions are generating positive customer feedback and contributing to the improved results. The broad-based global demand for our products is continuing to drive sales in the second quarter and we anticipate total Company sales growth of 8-10% in the quarter over last year’s second-quarter levels. From what we can determine, the growth in demand is a result of major infrastructure spending, particularly in mining, energy, agriculture, transportation and defense. “We are pleased with the many positive comments we have received from our customers relating to our level of service. In an effort to further enhance this high level of service, we are striving to instill a customer-focused mindset throughout the Company. In addition to our ongoing emphasis on improved customer service, we are beginning to work on a number of longer-term initiatives to build our core brand and product strength further. Specifically, we are expanding our international sales capabilities to help pursue the growth opportunities in several markets, and are working on a number of product innovations and redesigns that offer very promising market potential. These strategies, combined with our efforts in cost reduction, working capital efficiency and debt reduction, should contribute to both near-term and-longer term profitability and cash flow growth, enhancing value for our shareholders,” commented Mr. Melnuk. About Thermadyne Headquartered in St. Louis, Missouri, Thermadyne Holdings Corp. (NASDAQ: THMD) -- http://www.Thermadyne.com/-- manufactures and markets metal cutting and welding products and accessories under a variety of leading premium brand names including Victor(R), Tweco(R) / Arcair(R), Thermal Dynamics(R), Thermal Arc(R), Stoody(R), TurboTorch(R), Firepower(R) and Cigweld(R). Thermadyne has subsidiaries outside the United States which inlucdes, among others, Australia, Philippines, Malaysia, Indonesia, England, Italy, Japan, Mexico and Brazil. * * * As reported in the Troubled Company Reporter-Europe on May 2, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Thermadyne Holdings Corp. to 'B-' from 'CCC+'. At the same time, S&P raised the ratings on the subordinated notes to 'CCC' from 'CCC-'. =================== K A Z A K H S T A N =================== AK-NUR XXI: Creditors Must File Claims by June 17 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Ak-Nur XXI insolvent. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 ENERGO PROM: Claims Deadline Slated for June 18 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Energo Prom Resourse insolvent. Creditors have until Karaganda June 18, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Karaganda Jambyl Str. 9 Karaganda Kazakhstan ERTRANS LLP: Claims Filing Period Ends June 13 ---------------------------------------------- LLP Autotransport Company Ertrans has declared insolvency. Creditors have until June 13, 2008, to submit written proofs of claims to: LLP Autotransport Company Ertrans Ryskulov Str. 65 Almaty Kazakhstan GOLDMAN ALLIANCE: Creditors' Claims Due on June 13 -------------------------------------------------- Representation of Company Goldman Alliance Corp. has declared its closure. Creditors have until June 13, 2008, to submit written proofs of claims to: Representation of Company Goldman Alliance Corp. office 101 Klochkov Str. 123 Almaty Kazakhstan GROT-SEMEY LLP: Claims Registration Ends June 13 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Company Grot-Semey insolvent on March 21, 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 (7232) 24-06-50 JERDEM LLP: Claims Deadline Slated for June 17 ---------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Jerdem insolvent on March 28, 2008. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Ualihanov Str. 19-149 Petropavlovsk North Kazakhstan Kazakhstan MERKURI KV: Claims Filing Period Ends June 17 --------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Merkuri KV 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 North Kazakhstan Ualihanov Str. 19-149 Petropavlovsk North Kazakhstan Kazakhstan TAIMUR SAUDA: Creditors' Claims Due on June 17 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Taimur Sauda Aktobe insolvent on April 4, 2008. Creditors have until June 17, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 =================== K Y R G Y Z S T A N =================== OIL TRANS: Creditors Must File Claims by June 11 ------------------------------------------------ LLC Oil Trans Plus has declared insolvency. Creditors have until June 11, 2008 to submit written proofs of claim to: LLC Oil Trans Plus Kurmanjan Datka Str. 211/73 Osh Kyrgyzstan ===================== N E T H E R L A N D S ===================== AES CORP: Commences Tender Offer for US$377 Million Senior Notes ---------------------------------------------------------------- The AES Corporation, on May 14, 2008, commenced a cash tender offer for up to US$377,030,000 aggregate principal amount of its outstanding senior notes. The tender offer will expire at 12:00 midnight, New York City time, on June 11, 2008, unless extended or earlier terminated. Concurrently with the tender offer, AES is also soliciting consents from holders of its outstanding 8.75% Second Priority Senior Secured Notes due 2013 to certain proposed amendments to the indenture governing the Secured Notes, which will eliminate many of the restrictive covenants in the indenture. Adoption of the proposed amendments requires the consent of at least a majority of the outstanding principal amount of Secured Notes. The consent solicitation for the Secured Notes will expire at 5:00 p.m., New York City time, on May 28, 2008, unless extended or earlier terminated. Holders of Secured Notes may deliver their consents without tendering the related Secured Notes and holders that tender their Secured Notes pursuant to the tender offer will be deemed to have consented to the proposed amendments. List of Notes 8.75% Second Priority Senior Secured Notes due 2013 CUSIP/ISIN Numbers: 00130HBA2/U0080RAF7 Aggregate Principal Amount Outstanding: US$752,553,000 Series Tender Cap: US$377,030,000 less Untendered Note Consents Acceptance Priority Level: 1 Tender Offer Consideration: US$1,020.00 Early Tender Premium: US$20.00 Consent Fee: US$3.75 Total Consideration: US$1,043.75 9.50% Senior Notes due 2009 CUSIP/ISIN Numbers: 00130HAQ8 Aggregate Principal Amount Outstanding: US$467,308,000 Series Tender Cap: $240,000,000 Acceptance Priority Level: 2 Tender Offer Consideration: US$1,035.00 Early Tender Premium: US$20.00 Consent Fee: N/A Total Consideration: US$1,055.00 9.375% Senior Notes due 2010 CUSIP/ISIN Numbers: 00104CAA6 Aggregate Principal Amount Outstanding: US$422,665,000 Series Tender Cap: US$180,000,000 Acceptance Priority Level: 3 Tender Offer Consideration: US$1,057.50 Early Tender Premium: US$20.00 Consent Fee: N/A Total Consideration: US$1,077.50 8.875% Senior Notes due 2011 CUSIP/ISIN Numbers: 00130HAU9 Aggregate Principal Amount Outstanding: US$306,805,000 Series Tender Cap: US$120,000,000 Acceptance Priority Level: 4 Tender Offer Consideration: US$1,045.00 Early Tender Premium: US$20.00 Consent Fee: N/A Total Consideration: US$1,065.00 For each series of Notes, AES is offering to purchase (subject to the Maximum Tender Cap for all Notes combined) an aggregate principal amount up to the Series Tender Cap for such series of Notes. The amount of each series of Notes that will be purchased in the tender offer will be based on the Maximum Tender Cap, the Series Tender Cap and the order of priority for such series of Notes. All Notes validly tendered in the tender offer having a higher Acceptance Priority Level (with "1" being the highest) will be accepted for purchase up to th