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 Monday, May 19, 2008, Vol. 9, No. 98 Headlines A U S T R I A KOCAK MESUT: Claims Registration Period Ends June 2 LBS GEBAUDESANIERUNG: Claims Registration Period Ends June 9 MEHMET YUECEKUEK: Claims Registration Period Ends June 12 PAUL BERGHOEFER: Claims Registration Period Ends June 6 TEMPO TRANSPORT: Claims Registration Period Ends May 21 XEN INFORMATION: Claims Registration Period Ends June 26 B E L G I U M TELENET GROUP: Moody’s Lifts Corporate Family Rating to Ba3 E S T O N I A KOMMEST AUTO: In Talks with Investors Over Possible Takeover F I N L A N D * Banks Remains Robust Despite Market Turmoil, Fitch Says F R A N C E CHEYNE ABS: Moody’s Junks Rating on US$19 Million Class D Notes LA COMTOISE: Besancon Court Orders Liquidation Procedure G E R M A N Y AARON GMBH: Claims Registration Ends June 6 AEROSOL IT-GESELLSCHAFT: Claims Registration Ends June 6 AKB GEBAUDETECHNIK: Claims Registration Period Ends June 6 ART & DEKORATION: Claims Registration Period Ends June 6 ART & PRINT: Claims Registration Period Ends June 6 AUTOHAUS HORST: Claims Registration Ends June 6 AWO AUSBILDUNGSFOERDERUNGSWERK: Meeting Slated for May 26 BAHNLOGISTIK UHL: Claims Registration Period Ends June 6 BECK GASTRONOMIE: Claims Registration Ends June 6 BOMBARDIER INC: Fitch Lifts Issuer Default Rating to BB+ BOWA HEIMTEXTILIEN-VERTRIEBS: Claims Registration Ends June 6 EGON JOHANSEN: Claims Registration Period Ends June 6 FAMEG GMBH: Claims Registration Period Ends June 6 MED VITAL: Claims Registration Period Ends June 3 MUELLER + DRESEMANN: Claims Registration Ends June 6 SANITATSHAUS BEYERSDORF: Claims Registration Period Ends June 3 TALISMAN 1 FINANCE: S&P Lifts Ratings on Five Note Classes TALISMAN-6 FINANCE: S&P Puts Ratings Under Negative CreditWatch TALK-ROOM AGENTUR: Claims Registration Period Ends June 3 TEPPICHE UND HOLZBODEN: Claims Registration Period Ends June 3 TREUPROJEKT MANAGEMENT: Claims Registration Period Ends June 3 WATCHING GMBH: Claims Registration Ends June 6 WESTLB AG: Harald Christ to Quit from Divisional Board H U N G A R Y BUDAPESTI KOZLEKEDESI: May Sell Assets to Avert Bankruptcy I R E L A N D CLOVERIE PLC: Fitch Slashes Ratings on EUR80 Million Notes OMEGA CAPITAL: Moody’s Cuts Ratings on Three Series 46 Notes I T A L Y FIAT SPA: Retains European Market Share in April 2008 PARMALAT SPA: Posts EUR90.2 Group Net Profit for 1st Qtr 2008 K A Z A K H S T A N AGENTSTVO GRUZOVYH: Creditors Must File Claims by June 25 AVALON FINANCE: Claims Deadline Slated for June 25 INTEX XXI: Claims Filing Period Ends June 24 OTRAR COMMERTS: Creditors' Claims Due on June 25 SOLANO LLP: Claims Registration Ends June 25 STROY MASTER-PV: Creditors Must File Claims by June 25 TENGIZ-KOL LLP: Claims Deadline Slated for June 24 UNGAR-2 LLP: Claims Filing Period Ends June 24 K Y R G Y Z S T A N EURO BUILD: Creditors Must File Claims by July 2 L U X E M B O U R G KOENIGINSTRASSE I: Moody’s Rates EUR9.2MM Class E Loan at Ba3 N E T H E R L A N D S PQ CORPORATION: Moody’s Puts Corporate Family Rating at B2 X5 RETAIL: Federal Anti-Monopoly Approves Karusel Acquisition R U S S I A BASH-LES-KOMPLEKT: Creditors Must File Claims by May 26 CHEKMAGUSHEVSKIY DIARY: Creditors Must File Claims by June 26 KEMEROVSKAYA TRANSPORT: Court Names S. Vorobey to Manage Assets KONDURCHA CJSC: Creditors Must File Claims by May 26 NEW WAY: Creditors Must File Claims by June 26 SISTEMA JSFC: Earns US$1.6 Billion for Year Ended December 31 SISTEMA JSFC: To Invest US$1 Billion in Shyam Telelink Venture SMIRNYKHOVSKIY TECHNICAL: Creditors Must File Claims by June 26 TATNEFT OAO: Earns RUR9.6 billion for First Quarter 2008 VORONEZH-SEL-KHOZ-KHIMIYA: Creditors Must File Claims by June 26 X5 RETAIL: Federal Anti-Monopoly Approves Karusel Acquisition S W I T Z E R L A N D ETAONE SWISS: Waldenburg Court Commences Bankruptcy Proceedings FUNDGRUBE HEIDI: Creditors’ Liquidation Claims Due by May 31 GRAFTECH INT’L: Earns US$39 Million in First Quarter 2008 ISOFAS LLC: Aargau Court Commences Bankruptcy Proceedings KLUSTER & JUNS: Deadline for Creditors to File Claims in May 22 LYS JEANS-SHOP: Creditors Must File Claims by May 23 MT MEDICAL: Creditors Must File Proofs of Claim by May 31 NEW VISIBILITY: Creditors have Until May 24 to File Claims PROMOBILIA DEVELOPMENT: Creditors Liquidation Claims due May 23 U K R A I N E GAMA LLC: Proofs of Claim Deadline Set May 23 GERDA LLC: Proofs of Claim Deadline Set May 23 GOLOBY HYDROECONOMY: Proofs of Claim Deadline Set May 23 K.A.V.-2006: Proofs of Claim Deadline Set May 23 LVOV TRADE-FINANCIAL: Proofs of Claim Deadline Set May 23 MAKO-COMPUTER LLC: Creditors Must File Claims by May 23 MARKET-HALL LLC: Proofs of Claim Deadline Set May 23 NAFTOGAZ UKRAINY: Posts UAH1.05 Billion Net Loss for Q1 2008 PESCHANKAAL AGRICULTURAL: Proofs of Claim Deadline Set May 23 ULIANOVKA LLC: Proofs of Claim Deadline Set May 23 VALKI LLC: Proofs of Claim Deadline Set May 23 ZHOVTNEVE AGRICULTURAL: Creditors Must File Claims by May 23 U N I T E D K I N G D O M AU NAT: Joint Administrators Sell 46 Au Naturale Stores BETA FINANCE: Moody’s Puts Ratings Under Review & May Downgrade CENTAURI CORP: Moody’s Puts Ratings Under Review & May Downgrade CENTRAL CHICKEN: Brings In Liquidators from PKF COURTS PLC: Calls In Liquidators from KPMG CURZON FUNDING: Moody’s Lowers Rating on Class D Notes to Ba1 DECO 11: S&P Puts Ratings on Class D and E Notes Under Watch DORADA CORP: Moody’s Puts Ratings Under Review & May Downgrade EUROSAIL 2006-3NC: S&P Puts Notes’ Ratings on Negative Watch INVENSYS PLC: S&P Puts BB Rating Under Positive CreditWatch PAPERCHASE PRODUCTS: Borders Taps JPMorgan for Strategic Review PROPERTY MART: Ceases Trading; Shareholders Meet Set for June 12 SCOTTISH RE: S&P Puts D Rating on US$125 Million Preferred Stock TRAC-X EUROPE: Moody’s Cuts Rating on US$500MM Notes to Ba1 TREES SA: Fitch Puts Rating on Series 87 Loan on Negative Watch TRIBUNE LIMITED: Moody’s Junks Ratings on Three Notes Series WESTEK LTD: Appoints Liquidator from Grant Thornton * Fitch Says UK Credit Card Index Delinquency Up in March 2008 * Fitch Says UK Non-Conforming RMBS Still Has Sufficient Support * BOND PRICING: For the Week May 12 to May 16, 2008 ********* ============= A U S T R I A ============= KOCAK MESUT: Claims Registration Period Ends June 2 --------------------------------------------------- Creditors owed money by KG KOCAK Mesut (FN 162410p) have until June 2, 2008, to file written proofs of claim to court-appointed estate administrator Edmund Roehlich at: Dr. Edmund Roehlich c/o Dr. Richard Proksch Am Heumarkt 9/I/11 1030 Vienna Austria Tel: 713 46 51 Fax: 713 84 35 E-mail: proksch@eurojuris.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on June 16, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 21, 2008 (Bankr. Case No. 3 S 41/08m). Richard Proksch represents Dr. Roelich in the bankruptcy proceedings. LBS GEBAUDESANIERUNG: Claims Registration Period Ends June 9 ------------------------------------------------------------ Creditors owed money by LLC LBS Gebaudesanierung (FN 251387m) have until June 9, 2008, to file written proofs of claim to court-appointed estate administrator Thomas Burkowski at: Dr. Thomas Burkowski Graben 32 4020 Linz Austria Tel: 65 45 56 Fax: 65 45 56-57 E-mail: burkowski.alexander@aon.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 Land Court of Linz Room 522 Fifth Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on April 22, 2008 (Bankr. Case No. 12 S 28/08t). MEHMET YUECEKUEK: Claims Registration Period Ends June 12 --------------------------------------------------------- Creditors owed money by KEG Mehmet Yuecekuek (FN 260074m) have until June 12, 2008, to file written proofs of claim to court- appointed estate administrator Gerhard Bauer at: Mag. Gerhard Bauer Mahlerstrasse 7 1010 Vienna Austria Tel: 512 97 06 Fax: 512 97 06 20 E-mail: ra-g.bauer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on June 26, 2008, for the examination of claims. The meeting of creditors will be held at: Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 22, 2008 (Bankr. Case No. 5 S 38/08k). PAUL BERGHOEFER: Claims Registration Period Ends June 6 ------------------------------------------------------- Creditors owed money by LLC Paul Berghoefer (FN 113930w) have until June 6, 2008,to file written proofs of claim to court- appointed estate administrator Guenther Hoedl at: Mag.Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna Austria Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on June 20, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 22, 2008 (Bankr. Case No. 28 S 57/08y). TEMPO TRANSPORT: Claims Registration Period Ends May 21 ------------------------------------------------------- Creditors owed money by LLC TEMPO Transport und Gueterbefoerderung (FN 282522z) have until May 21, 2008, to file written proofs of claim to court-appointed estate administrator Andrea Prochaska at: Mag. Andrea Prochaska Wassergasse 33/12 1030 Wien Austria Tel: 01/718 77 50 Fax: 01/718 77 50 15 E-mail: kanzlei@andrea.prochaska.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on June 4, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Himberg bei Wien, Austria, the Debtor declared bankruptcy on April 21, 2008 (Bankr. Case No. 36 S 43/08b). XEN INFORMATION: Claims Registration Period Ends June 26 -------------------------------------------------------- Creditors owed money by LLC XEN Information Systems (FN 188179i) have until June 26, 2008, to file written proofs of claim to court-appointed estate administrator Norbert Abel at: Mag. Norbert Abel c/o Mag. Johanna Abel-Winkler Franz-Josefs-Kai 49/19 1010 Vienna Austria Tel: 533 52 72 Fax: 533 52 72 15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on June 26, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 21, 2008 (Bankr. Case No. 5 S 34/08x). Johanna Abel- Winkler represents Mag. Abel in the bankruptcy proceedings. ============= B E L G I U M ============= TELENET GROUP: Moody’s Lifts Corporate Family Rating to Ba3 ----------------------------------------------------------- Moody's Investors Service upgraded a corporate family rating of Telenet Group Holding N.V. to Ba3 from B1. At the same time, the rating agency upgraded a rating on the EUR2.3 billion senior secured facility to Ba3 from B1. The outlook on the ratings is stable. The upgrade reflects Telenet's continued strong operational and financial performance. In 2007, the company increased its revenue and reported EBITDA by 15% and 21% respectively. The company's public guidance for 2008 is to grow its revenue in the range of 5 -- 6% whilst EBITDA at 6 -- 8%. Although revenue and EBITDA growth is slowing, Moody's believes that the company has a strong growth momentum to further increase its subscriber base in Internet and telephony and to continue to generate free cash flow which supports its credit profile. As of 31 March 2008, the company was leveraged at 4.5x Debt to LTM EBITDA. Based on the expected EBITDA growth, the company will continue to de-leverage in 2008. In November 2007, Telenet announced an agreement-in-principle with the Pure Intercommunales on matters including the transfer of the analogue and digital television activities of the pure cable companies to Telenet. Telenet will pay at the closing, a one-off total amount of EUR170 million, likely to be funded through a combination of the bank debt and cash on the balance sheet, and afterwards an annual fee for operational expenses, depreciation booked and a fixed reasonable return on capital invested. Given that the agreement is currently being disputed by Belgacom in courts, the transaction may be finalised closer to the end of 2008 / beginning 2009. Furthermore, the agreement with the PICs creates upside for Telenet's revenue and EBITDA growth going forward. Despite solid operating performance, Telenet is facing a number of challenges. Competitive environment is intensifying with Belgacom making a good progress in its IPTV offering. Although Telenet is more protected in Flanders, the company is exposed to a more vigorous competition in the Brussels area where former UPC Belgium operates. Furthermore, in 2008 and 2009, Telenet's telephony revenue will suffer due to an interconnect rate reduction; potential impact on revenue could approximately be EUR10 million in 2008 and of a similar magnitude in 2009. The Ba3 rating assumes that event risk for Telenet is relatively limited over the near term. Moody's believes that any material M&A activities are likely to involve the company's majority shareholder, Liberty Global Inc. Furthermore, the rating assumes that any shareholder distributions would be modest. The stable outlook on the ratings reflects Moody's expectations that the company will continue to grow its revenue and EBITDA and adhere to its disciplined financial policy. Furthermore, Moody's anticipates that the company will have availability under the existing bank facility to finance its payment to the PICs. The Ba3 rating is underpinned by the company's leverage below 5.0x Debt to EBITDA. What could change the rating up: At this juncture, Moody's does not anticipate an upward movement in the rating over the medium term. The rating is likely to be constrained by the company's scale when compared to its peers. What could change the rating down: An increase in leverage over 5.5x Debt to EBITDA; more aggressive shareholder remuneration ============= E S T O N I A ============= KOMMEST AUTO: In Talks with Investors Over Possible Takeover ------------------------------------------------------------ AS Kommest Auto is in discussions with three potential investors regarding a possible takeover, Ott Ummelas writes for Bloomberg News. Kommest Auto's owner Toomas Ruutman disclosed talks are expected to be concluded in the "near term," Bloomberg relates. Mr. Ruutman earlier dismissed an Aeripaeev report that PSA Peugeot Citroen stopped delivering cars and spare parts to Kommest Auto since March because of the company's debts, arguing shipments were delayed due to ongoing talks. Mr. Ruutman however told Bloomberg that first shipments are already under way as the company has reached new cooperation deals. On May 13, 2008, Silgate Credit Enterprises Ltd. filed a bankruptcy petition against the company in a court in Estonia, the paper reveals, citing Aeripaeev. Headquartered in Tallin, Estonia, AS Kommest Auto is a dealer of Peugeot cars in Estonia and Latvia. The company has 14 dealerships in Estonia. It employs 250 people. ============= F I N L A N D ============= * Banks Remains Robust Despite Market Turmoil, Fitch Says --------------------------------------------------------- In a special report issued May 16, 2008, Fitch Ratings said that the Finnish banking system remains robust despite the financial market turmoil since summer 2007. The operating environment is, however, expected to deteriorate slightly due to slower economic growth in Finland and its major export countries. The highly concentrated Finnish banking system is dominated by three financial groups - the pan-Nordic financial group, Nordea, the cooperative OP Pohjola Group, and Sampo Group, which is owned by Danske Bank. These three players controlled around 90% of the market at end-2007. Over the past three years these three groups have enhanced their risk management and benefited from a diversification in revenue and assets, which has resulted in high levels of profitability. The sound domestic economy over recent years has supported increased lending volumes, particularly in the retail sector, which has compensated for increasing margin pressure. Strong asset quality has also contributed to solid bottom-line results. The major Finnish banks enjoy good access to diversified funding sources, and although funding has become more expensive as a result of the current volatility and illiquidity in financial markets, they have not to date had any problems raising short- term funding. Capitalisation is strong and compares well to that of its Scandinavian neighbours. In its report, Fitch also notes that as the larger institutions become more diversified and merge with and/or acquire insurance operations, the Finnish Financial Supervisory Authority (FFSA) is working more closely with the Finnish Insurance Supervisory Authority and other Scandinavian regulators. The FFSA, which is the regulatory body for financial institutions in Finland, appears to be coping adequately with the challenges arising from cross-sectoral and cross-border financial groups, and the implementation of Basel II. Since Finland's entry into the European Union (EU) in 1995, prudential regulations have largely been in line with EU directives. The report, entitled "The Finnish Banking System and Prudential Regulations", is available on the agency's subscriber website, http://www.fitchresearch.com/ =========== F R A N C E =========== CHEYNE ABS: Moody’s Junks Rating on US$19 Million Class D Notes --------------------------------------------------------------- Moody's Investors Service downgraded six classes of notes issued by Cheyne ABS Investments I PLC. Five of these tranches remain on review for downgrade. These rating actions are a response to the credit deterioration in the underlying portfolio. The transaction is a managed cash CDO referencing mainly ABS CDOs, 89% of portfolio notional. The ABS CDOs are of the 2003, 2004, and 2005 vintages. Moody's announced on February 4, 2008 that it is revising its expected loss assumptions which are used for surveillance of ratings of ABS CDOs holding subprime RMBS, specifically of the 2006 vintage. Moody's stated that for purposes of monitoring its ratings of ABS CDOs with exposure to 2006 subprime RMBS, it will rely on certain projections of the lifetime average cumulative losses for 2006's quarterly vintages of RMBS set forth in a recent Moody's Special Report, "Moody's Updates Loss Projections for 2006 Subprime Loans." This report illustrates average loss results for the 2006 quarterly vintages under five distinct loss projection scenarios. Moody's explained that it will utilise the range of loss projections set forth in Scenarios 2 and 3 based on deal performance and quarterly vintage to modify its prior assumptions of the expected loss inputs when monitoring ABS CDO ratings. Moody's will continue to monitor all deals with exposure to US subprime RMBS and ABS CDOs, and will take further actions in respect of all CDOs placed under review for downgrade once the extent of actual downgrades to US RMBS and ABS CDO vintages becomes known. The rating actions are: Cheyne ABS Investments I PLC: (1) The US$56,000,000 Class A-1 Senior Floating Rate Notes due 2045; Current Rating: A1, on review for possible downgrade Prior Rating: Aaa, on review for possible downgrade (2) The US$23,000,000 Class A-2 Senior Floating Rate Notes due 2045; Current Rating: Baa3, on review for possible downgrade Prior Rating: Aa1, on review for possible downgrade (3) The US$43,000,000 Class B Deferrable Floating Rate Notes due 2045; Current Rating: Ba3, on review for possible downgrade Prior Rating: A1, on review for possible downgrade (4) The US$20,000,000 Class C Deferrable Floating Rate Notes due 2045; Current Rating: B3, on review for possible downgrade Prior rating: Baa2, on review for possible downgrade (5) The US$19,000,000 Class D Deferrable Floating Rate Notes due 2045; and Current Rating: Ca Prior Rating: Ba2, on review for possible downgrade (6) The US$20,000,000 Class P Combination Notes due 2045 Current Rating: Ba3, on review for possible downgrade Prior Rating: A3, on review for possible downgrade LA COMTOISE: Besancon Court Orders Liquidation Procedure -------------------------------------------------------- The Tribunal de Commerce of Besancon, France ordered the liquidation of La Comtoise des Pains, Bloomberg reports citing La Tribune as its source. According to the report, the company's 50 employees will be made redundant after the Court rejected the only bid for the company. Headquartered in Chemaudin, France, La Comtoise des Pains makes bread for school cafeterias and hospitals. The company has been under court protection since April 2007. ============= G E R M A N Y ============= AARON GMBH: Claims Registration Ends June 6 ------------------------------------------- Creditors of AARON GmbH have until June 6, 2008 to register their claims with court-appointed insolvency manager Dr. Mark Zeuner. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on June 23, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Schwerin Hall 7 Demmlerplatz 14 19053 Schwerin 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. Mark Zeuner Beethovenstr. 13 19053 Schwerin Germany The District Court of Schwerin opened bankruptcy proceedings against AARON GmbH on April 23, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AARON GmbH Attn: Reinhard Hasse, Manager Grevesmuehlener Strasse 8 23936 Mallentin Germany AEROSOL IT-GESELLSCHAFT: Claims Registration Ends June 6 -------------------------------------------------------- Creditors of Aerosol IT-Gesellschaft fuer Konzept und Vertrieb mbH have until June 6, 2008 to register their claims with court- appointed insolvency manager Eberhard Stock. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 13, 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 Krefeld Meeting Hall H 131 First Floor Nordwall 131 47798 Krefeld 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: Eberhard Stock Wilhelmshofallee 75 47800 Krefeld Germany The District Court of Krefeld opened bankruptcy proceedings against Aerosol IT-Gesellschaft fuer Konzept und Vertrieb mbH on Dec. 6, 2006. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Aerosol IT-Gesellschaft fuer Konzept und Vertrieb mbH Attn: Klaus Nuerck, Manager Kurfuerstenstr. 79 10787 Berlin Germany AKB GEBAUDETECHNIK: Claims Registration Period Ends June 6 ---------------------------------------------------------- Creditors of AKB Gebaudetechnik GmbH & Co. KG have until June 6, 2008, to register their claims with court-appointed insolvency manager Gerhard Brinkmann. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 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 Stralsund Hall AE 26 House A Bielkenhagen 9 Stralsund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Gerhard Brinkmann Freiligrathstr. 1 18055 Rostock Germany The District Court of Stralsund opened bankruptcy proceedings against AKB Gebaudetechnik GmbH & Co. KG on May 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AKB Gebaudetechnik GmbH & Co. KG Attn: Gunnar Witt, Manager Gahlkower Wende 9 17509 Bruenzow Germany ART & DEKORATION: Claims Registration Period Ends June 6 -------------------------------------------------------- Creditors of ART & DEKORATION Exclusive Inneneinrichtung GmbH have until June 6, 2008, to register their claims with court- appointed insolvency manager Franz-Joachim Sessig. Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Weilheim Meeting Hall E 007 Waisenhausstr. 5 Weilheim 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: Franz-Joachim Sessig Brienner Strasse 46 80333 Muenchen Germany Tel: 089/579 491 0 Fax: 089/579 491 29 The District Court of Weilheim opened bankruptcy proceedings against ART & DEKORATION Exclusive Inneneinrichtung GmbH on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ART & DEKORATION Exclusive Inneneinrichtung GmbH Josef-Jaegerhuber-Str. 5 82319 Starnberg Germany ART & PRINT: Claims Registration Period Ends June 6 --------------------------------------------------- Creditors of Art & Print Werbeproduktion GmbH have until June 6, 2008, to register their claims with court-appointed insolvency manager Peter Sulzmann. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aschaffenburg Meeting Room 5.103 First Upper Floor Schlossplatz 5 63739 Aschaffenburg 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 Sulzmann Bahnhofstr. 31 63500 Seligenstadt Germany Tel: 06182/92050 Fax: 06182/920515 The District Court of Aschaffenburg opened bankruptcy proceedings against Art & Print Werbeproduktion GmbH on April 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Art & Print Werbeproduktion GmbH Siemensstr. 12 63755 Alzenau Germany AUTOHAUS HORST: Claims Registration Ends June 6 ----------------------------------------------- Creditors of Autohaus Horst Erb GmbH have until June 6, 2008 to register their claims with court-appointed insolvency manager Ulrich Nehrig. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 12, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Offenburg Hall 0005 Hindenburgstr. 5 77654 Offenburg Germany The Court will verify the claims set out in the insolvency manager's report at 11:00 a.m. on July 14, 2008 at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Nehrig Schillerstr. 2 79102 Freiburg Germany The District Court of Offenburg opened bankruptcy proceedings against Autohaus Horst Erb GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Autohaus Horst Erb GmbH Dinglinger Hauptstr. 9 77933 Lahr Germany Attn: Hanyo Erb, Manager Bertholdstr. 42 77933 Lahr Germany AWO AUSBILDUNGSFOERDERUNGSWERK: Meeting Slated for May 26 --------------------------------------------------------- The court-appointed insolvency manager for AWO Ausbildungsfoerderungswerk Passau gGmbH, Silke Hasenoehrl will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m. on May 26, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Passau Meeting Hall 6 Ground Floor Schustergasse 4 Passau Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on July 15, 2008 at the same venue. Creditors have until June 6, 200 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Silke Hasenoehrl Dr.-Ernst-Derra-Str. 4 94032 Passau Germany Tel: 0851-9885960 Fax: 0851-98859610 The District Court of Passau opened bankruptcy proceedings against AWO Ausbildungsfoerderungswerk Passau gGmbH on May 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AWO Ausbildungsfoerderungswerk Passau gGmbH Sailerwoehr 16 94032 Passau Germany BAHNLOGISTIK UHL: Claims Registration Period Ends June 6 -------------------------------------------------------- Creditors of BahnLogistik Uhl GmbH have until June 6, 2008, to register their claims with court-appointed insolvency manager Norbert Oberdiek. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Saarbruecken Area Hall 13 First Floor Branch Office Sulzbach Vopeliusstrasse 2 66280 Sulzbach 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: Norbert Oberdiek Mathias-Iven-Strasse 10 66117 Saarbruecken Germany Tel: 0681/ 954 120 Fax: 0681/ 954 1222 The District Court of Saarbruecken opened bankruptcy proceedings against BahnLogistik Uhl GmbH on May 6, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BahnLogistik Uhl GmbH Donaustrasse 1 66606 St.Wendel Germany Attn: Manuela Uhl, Manager Am Bahnhof 7 66606 St. Wendel Germany BECK GASTRONOMIE: Claims Registration Ends June 6 ------------------------------------------------- Creditors of Beck Gastronomie GmbH have until June 6, 2008 to register their claims with court-appointed insolvency manager Dr.Martin Mildenberger. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on June 16, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Offenburg Hall 0005 Hindenburgstr. 5 77654 Offenburg Germany The Court will also verify the claims set out in the insolvency manager's report at 9:30 a.m. on July 11, 2008 at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr.Martin Mildenberger Bertha-von-Suttner-Str.3 77654 Offenburg Germany The District Court of Offenburg opened bankruptcy proceedings against Beck Gastronomie GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Beck Gastronomie GmbH Attn: Christian Beck, Manager Schutterwalder Str.1 77656 Offenburg Germany BOMBARDIER INC: Fitch Lifts Issuer Default Rating to BB+ -------------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Rating and long- term debt rating for Bombardier Inc. to 'BB+' from 'BB'. -- IDR to 'BB+' from 'BB'; -- Senior unsecured debt to 'BB+' from 'BB'; -- Preferred stock to 'BB-' from 'B+'. The Rating Outlook is Stable. The ratings affect approximately US$4.7 billion of outstanding debt and preferred stock as of Jan. 31, 2008. The upgrades to BBD's ratings reflect improved credit metrics, the company's progress in realizing higher margins and cash flow, and a solid outlook for many of its end-markets. The ratings are also supported by a large backlog, the company's business diversification, its leading market positions, the robust business jet market, and its healthy liquidity position. The company's ratings were previously upgraded one notch in January 2008 when it used high cash balances to reduce debt by approximately $1 billion. BBD is focused on building a stronger capital structure and further reducing leverage, which would help reduce its cost of funds and improve the company's financial and strategic flexibility. Although Fitch anticipates that BBD could further strengthen its financial profile over the long term, the Stable Outlook incorporates shorter term operating challenges that the company continues to address. These include margins that, while improving, remain relatively low by industry standards, particularly in the business jet and regional aircraft businesses. In fiscal 2008 aerospace margins increased to 5.8% compared to 3.9% in fiscal 2007. As a result of an accounting change, the aerospace business may attain BBD's margin target of 8% as early as fiscal 2009, but the company could reset its target to reflect the accounting change and its outlook for the business. In the transportation business, margins in fiscal 2008 before special charges increased to 4.4%, up from 3.9% in fiscal 2007. The increase includes the benefits of a previously completed restructuring program which have been partially offset by special charges and a reduction in scope related to BBD's participation in the Metronet project. Fitch believes BBD should be able to complete the rest of the project at a reasonable level of profitability, but the recent program adjustments represent a delay in BBD's long-term plans to grow margins to 6% and expand its presence and capabilities in signaling and services work in the transportation sector. Other rating concerns include business jet market cyclicality and the impact of exchange rate volatility on margins, financial results, and planning. Aerospace concerns include risks inherent in developing new aircraft models, new entrants in the regional jet (RJ) market, and contingent obligations related to past aircraft sales, although these contingent obligations are spread out over time and are not a near-term concern. Tighter conditions in the credit markets could potentially prompt BBD to provide aircraft financing, at least on an interim basis, that could increase its funding needs and make it more difficult to achieve better credit metrics. BBD continues to hold significant market shares in its aerospace and transportation markets. During fiscal 2008 BBD's total orders increased significantly due to growing international demand for business jets and a rebound in demand for larger regional aircraft. Aerospace unit orders were 698 aircraft in fiscal 2008 compared to 363 aircraft in fiscal 2007, bringing the aerospace backlog to US$22.7 billion. Orders in the transportation segment were comparatively stable at US$11.3 billion after increasing in fiscal 2007 to US$11.8 billion due to large orders for rolling stock. Transportation's backlog rose to US$30.9 billion. Bombardier's total backlog at the end of fiscal 2008 was US$53.6 billion, up from US$40.7 billion. After meeting with the management of the CSeries program, Fitch has become more positive on the business case for the program, although risks are still present. Fitch's concerns regarding the program include execution of the development and certification plan (which is a common concern for all new aircraft programs), the potential need for BBD to finance some deliveries, the supply chain, market demand, and potential competitor responses. Fitch's previous concerns about the CSeries' source of technological advantage have been reduced by BBD's disciplined approach to designing the plane, which has increased the likelihood that the CSeries will produce the expected fuel efficiency, noise reduction and reduced emissions. The technology supporting these benefits includes the new geared turbofan engine from Pratt & Whitney and an increased use of advanced materials (composites and an aluminum-lithium alloy). The interior is also attractive, incorporating many features which are similar to those found in the Boeing 777 and 787. Potential competition from Boeing, Airbus and RJ manufacturers represents a significant concern, including pricing actions on existing aircraft from Boeing and Airbus. In February 2008, BBD's board of directors authorized CSeries sales offers to customers. BBD has not announced any launch orders, but if sufficient orders are received, BBD could launch the CSeries by the end of 2008, with entry into service expected in 2013. The CSeries would serve as BBD's entry into the mainline aircraft market, targeting the low end of the 100-149 seat range (110-130 seats). Expenditures for development and tooling are estimated at approximately US$3.2 billion, with BBD picking up about one-third of the cost and suppliers and governments picking up the rest. Fitch estimates that BBD should be able to fund the program with internally generated cash or cash balances. In addition to lower operating costs, an important foundation of BBD's business case for the CSeries is the argument that the aircraft will be the only plane in the market specifically designed for the 100-149-seat segment, with all other aircraft in the segment scaled up or down from other models. Free cash flow rose substantially in fiscal 2008 to US$1.9 billion. The receipt of customer advances in fiscal 2008 generated an unusually large amount of cash from working capital. While a similar cash inflow is not expected to recur, free cash flow should be supported by BBD's large backlog, especially in the aerospace segment. Cash deployment is primarily directed toward capital expenditures that include the development of new aircraft such as the CSeries. Expenditures are expected to be spread out over several years, so the impact of the development programs on BBD's financial position should be manageable. BBD's credit protection measures at the end of fiscal 2008 continued to improve as debt/EBITDA declined to 3.24 times (x) compared to 4.74x one year earlier. Stronger free cash flow measures were largely attributed to the impact of working capital as described above. Although FFO Interest Coverage declined to 2.54x in fiscal 2008 from 3.47x in fiscal 2007, it included the impact of a large, US$826 million pension contribution. Going forward, the ratio should benefit from a lower pension contribution in fiscal 2009, estimated by BBD at US$315 million, as well as BBD's US$1 billion debt reduction debt completed at the end of fiscal 2008. At Jan. 31, 2008, BBD maintained US$3.6 billion of unrestricted cash balances, not including US$1.3 billion of restricted cash related to its letter of credit (LOC) facility. Restricted cash balances are not available for liquidity purposes or for the benefit of unsecured bond holders. Bombardier's unrestricted cash balances are the company's sole source of liquidity as it does not have a bank facility available; the LOC facility is restricted to LOC issuance. BBD's liquidity position benefits from a reduction in net pension liability following significant contributions in 2008. In addition, debt maturities are minimal until fiscal 2013. About Bombardier Inc. Headquartered in Canada, Bombardier Inc. -- http://www.bombardier.com/-- (TSE:BBD.B) manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. The company manufactures rail equipment through its Bombardier Transportation unit. Bombardier Transport's Europe management office is located in Germany. The company also has production facilities in France, Spain, Switzerland, Belgium, Italy, Austria, Hungary, Czech Republic, Poland, Denmark, Sweden, Norway an the United Kingdom. Other production facilities are located at Brazil, China, India and Australia. BOWA HEIMTEXTILIEN-VERTRIEBS: Claims Registration Ends June 6 ------------------------------------------------------------- Creditors of BOWA Heimtextilien-Vertriebs GmbH have until June 6, 2008, to register their claims with court-appointed insolvency manager Stefanie Kaufmann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 6, 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 Ludwigshafen am Rhein Meeting Hall XIII Wittelsbachstr. 10 67061 Ludwigshafen/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: Stefanie Kaufmann Roxheimer Str. 17 67240 Bobenheim-Roxheim Germany The District Court of Ludwigshafen am Rhein opened bankruptcy proceedings against BOWA Heimtextilien-Vertriebs GmbH on May 7, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BOWA Heimtextilien-Vertriebs GmbH Dieselstrasse 13 67269 Gruenstadt Germany Attn: Eva Bornewasser, Manager Fr.Diffine-Strasse 12 67281 Kirchheim Germany EGON JOHANSEN: Claims Registration Period Ends June 6 ----------------------------------------------------- Creditors of Egon Johansen GmbH have until June 6, 2008, to register their claims with court-appointed insolvency manager Ygglev Stintzing. Creditors and other interested parties are encouraged to attend the meeting at 8:48 a.m. on June 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Flensburg Hall A 220 Flensburg 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: Ygglev Stintzing Rathausstrasse 1 24937 Flensburg Germany The District Court of Flensburg opened bankruptcy proceedings against Egon Johansen GmbH on April 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Egon Johansen GmbH Gewerbepark 20 24983 Handewitt Germany FAMEG GMBH: Claims Registration Period Ends June 6 -------------------------------------------------- Creditors of FAMEG GmbH have until June 6, 2008, to register their claims with court-appointed insolvency manager Heiko Jaap. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on July 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 Stralsund Hall AE 26 Ground Floor House A Bielkenhagen 9 Stralsund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Heiko Jaap Steinbeckerstr. 10 17489 Greifswald Germany The District Court of Stralsund opened bankruptcy proceedings against FAMEG GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FAMEG GmbH Attn: Rene Schmidt, Manager Bahnhofstr. 44/46 17489 Greifswald Germany MED VITAL: Claims Registration Period Ends June 3 ------------------------------------------------- Creditors of med Vital Esslingen GmbH & Co.KG have until June 3, 2008, to register their claims with court-appointed insolvency manager Steffen Beck. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 Esslingen Hall 1 First Floor Ritterstr. 5 Eingang Strohstrasse Esslingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Steffen Beck Breitscheidstr. 10 70174 Stuttgart Germany Tel: 0711/252566-0 Fax: 0711/252566-66 The District Court of Esslingen opened bankruptcy proceedings against med Vital Esslingen GmbH & Co.KG on April 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: med Vital Esslingen GmbH & Co.KG Kollwitzstr. 1 73728 Esslingen Germany MUELLER + DRESEMANN: Claims Registration Ends June 6 ---------------------------------------------------- Creditors of Mueller + Dresemann GmbH have until June 6, 2008 to register their claims with court-appointed insolvency manager Norbert Schrader. 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 Wuppertal Meeting Hall A234 Second Floor Eiland 2 42103 Wuppertal Germany The Court will also verify the claims set out in the insolvency manager's report at 8:30 a.m. on July 22, 2008 at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Norbert Schrader Viehhofstr. 117 42117 Wuppertal Germany Tel: 0202-430980 Fax: 0202-4309843 The District Court of Wuppertal opened bankruptcy proceedings against Mueller + Dresemann GmbH on May 1, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mueller + Dresemann GmbH Giebel 30 42327 Wuppertal Germany SANITATSHAUS BEYERSDORF: Claims Registration Period Ends June 3 --------------------------------------------------------------- Creditors of Sanitatshaus Beyersdorf GmbH have until June 3, 2008, to register their claims with court-appointed insolvency manager Robert Fliegner. Creditors and other interested parties are encouraged to attend the meeting at 10:20 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 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: Robert Fliegner Westring 303 44629 Herne Germany The District Court of Bochum opened bankruptcy proceedings against Sanitatshaus Beyersdorf GmbH on April 30, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sanitatshaus Beyersdorf GmbH Attn: Thomas Klering, Manager Bahnhofstrasse 259 44629 Herne Germany TALISMAN 1 FINANCE: S&P Lifts Ratings on Five Note Classes ---------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on five classes of commercial mortgage-backed notes issued by Talisman 1 Finance PLC. At the same time, S&P affirmed the ratings on the remaining notes. The upgrades follow the prepayment of one of the commercial loans backing the notes – VVG -- and a subsequent increase in relative credit enhancement available for the remaining notes. The transaction was arranged by the London branch of ABN AMRO Bank N.V. When it closed on June 3, 2005, the EUR554.35 million notes that were issued were initially supported by a pool of four commercial and residential real estate loans. Two of the loans--AZL/Beta and VVG--have subsequently prepaid, in January 2006 and April 2008 respectively. The loan prepayments have caused the notes to amortize, reducing the current note balance outstanding to EUR164.93 million. Following prepayment of the AZL/Beta loan, S&P upgraded the class B, C, and D notes in March 2006 in light of the increasing levels of credit enhancement. Prepayment of the VVG loan has further improved credit enhancement and this has caused today's upgrade. Prime Loan This loan is secured by two shopping centers in Germany and represents 87.86% of the residual loan balance. Billstedt Center is located in a suburb approximately 10 km to the east of Hamburg and is the larger of the two centers by value. There are some 118 retail units. The second is City-Center Cologne- Chorweiler, situated some 13 km north of Cologne. It comprises 99 retail outlets. Lease terms on the two centers vary in length but the weighted average unexpired term runs approximately three years beyond loan maturity. S&P has been advised that vacancy levels across the two centers are currently at 2.6%. At closing, the portfolio was effectively 1005 occupied. Demand appears to be high despite the relatively secondary locations of the two properties, and S&P considers that this is likely to remain so for the remainder of the loan term. Rental increases have resulted in an improved interest coverage ratio (ICR) to 2.23x currently from 2.17x at closing. The properties are both managed by ECE Projektmanagement GmbH. Alpha Loan This loan is secured by a retail park and eight residential blocks, also in Germany. The retail park is situated in Berlin and is the dominant property by value (about 70%). The park is characterized by the DIY store Toom Baumarkt, Sconto, and Edeka, constituting approximately 85% of the total rent roll. The center presently has 100% occupancy, although one tenant (7.8% of the total rent roll) has advised that it has exercised its break option by Dec. 31, 2008 and will vacate the premise by the end of this year. S&P has factored this into its analysis, although we do expect the unit to relet. The residential units are in Munster. The town is dominated by a large military base, which contributes to the current positive economic performance of the area. Since closing, rents have risen across the portfolio, increasing the ICR to 1.77x from 1.67x. Vacancy rates remain relatively low across the portfolio. S&P assessments of net operating income for both the Prime and Alpha loans supports the upgrades. Net operating income for the Prime loan is EUR13.7 million, equating to an exit yield on debt of 9.8%. In respect of Alpha, S&P’s assessment of net operating income is EUR2.6 million, giving an exit yield on debt of 10.8%. In S&P’s opinion, this reduces the risk of default both during the loan term and also at refinance, which warrants the upgrades. Ratings List Talisman 1 Finance PLC EUR554.35 Million Commercial Mortgage-Backed Floating- And Variable-Rate Notes Ratings Raised Class To From ----- -- ---- C AAA AA D AA BBB+ E A BBB F A BBB- G BBB BB Ratings Affirmed Class Rating ----- ------ A AAA B AAA X AAA TALISMAN-6 FINANCE: S&P Puts Ratings Under Negative CreditWatch --------------------------------------------------------------- Standard & Poor's Rating Services has placed on CreditWatch with negative implications its ratings on the class E and F notes issued by Talisman-6 Finance PLC. The ratings on the other classes in the transaction remain unaffected. These actions are a consequence of S&P’s concerns regarding the payment default and the resulting increased uncertainty surrounding an underlying commercial loan, the Cherry loan. S&P’s concerns are exacerbated by the loan having been transferred into special servicing by the servicer, Hatfield Philips. The loan is secured by 11, predominantly residential properties in east Germany. As of the April 2008 interest payment date (IPD), the borrower failed to pay the full amount of debt service, which resulted in a liquidity facility drawing. The reason for the payment default was insufficient funds in the rental income account. S&P understands from Hatfield Philips that there has been a lack of clarity regarding the provision of data, and Hatfield Philips continues to work closely with the asset manager to verify the current position. S&P’s concerns relate to both the potential ability to pay interest in a timely manner and the ability to repay the principal balance at loan maturity in October 2011. The liquidity facility covers interest shortfalls under the loan in addition to interest on any such drawings and special servicer fees. There is also, however, an appraisal reduction mechanism structured to limit liquidity facility drawings by automatically reducing the liquidity facility available following a loan event of default where the up-to-date loan-to- value ratio exceeds 95%. Following the transfer into special servicing, there is a requirement to commission an up-to-date valuation within 30 days. Whilst the April 2008 IPD reported loan-to-value ratio is 83.79%, this is based on the valuation at closing; we consider that there is increased possibility that the appraisal reduction may be triggered. S&P will now carry out a full and detailed analysis of the transaction to incorporate property visits for Cherry and selected properties for other loans in the pool, particularly the Orange, Coconut, and Mango loans, all of which exhibit some deterioration in interest coverage ratio, though no covenants have been breached to date. Ratings List Talisman–6 Finance PLC EUR1,076.4 Million Commercial Mortgage-Backed Floating-Rate And Variable-Rate Notes Ratings Placed On CreditWatch Negative Class To From ----- -- ---- E BBB-/Watch Neg BBB- F BB/Watch Neg BB TALK-ROOM AGENTUR: Claims Registration Period Ends June 3 --------------------------------------------------------- Creditors of talk-room Agentur fuer Telefonmarketing GmbH have until June 3, 2008, to register their claims with court- appointed insolvency manager Joerg Riedemann. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Halle-Saalkreis Hall 1.043 Judicial Center Thueringer Str. 16 06112 Halle 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: Joerg Riedemann Muehlweg 47 D 06114 Halle Germany Tel: 0345/293900 Fax: 0345/2939029 The District Court of Halle-Saalkreis opened bankruptcy proceedings against talk-room Agentur fuer Telefonmarketing GmbH on April 2, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: talk-room Agentur fuer Telefonmarketing GmbH Haupttor Bau 4310 06237 Leuna Germany TEPPICHE UND HOLZBODEN: Claims Registration Period Ends June 3 -------------------------------------------------------------- Creditors of Teppiche und Holzboden 3 x 3 GmbH have until June 3, 2008, to register their claims with court-appointed insolvency manager Jan H. Wilhelm. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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: Jan H. Wilhelm Albert-Einstein-Ring 11/15 22761 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Teppiche und Holzboden 3 x 3 GmbH on April 15, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Teppiche und Holzboden 3 x 3 GmbH Attn: Wilfried Schnohr, Manager Neuer Weg 47 21029 Hamburg Germany TREUPROJEKT MANAGEMENT: Claims Registration Period Ends June 3 -------------------------------------------------------------- Creditors of Treuprojekt Management GmbH have until June 3, 2008, to register their claims with court-appointed insolvency manager Jens-Soeren Schroeder. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on July, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens-Soeren Schroeder Raboisen 38 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Treuprojekt Management GmbH on April 9, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Treuprojekt Management GmbH Attn: Stefan Pruss, Manager Untertrave 86 23552 Luebeck Germany WATCHING GMBH: Claims Registration Ends June 6 ---------------------------------------------- Creditors of Watching GmbH have until June 6, 2008 to register their claims with court-appointed insolvency manager Udo Feser. Claims will be verified at 10:15 a.m. on Aug. 6, 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: Udo Feser Uhlandstr. 165/166 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Watching GmbH on March 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Watching GmbH Eiswerderstr. 18 13585 Berlin Germany WESTLB AG: Harald Christ to Quit from Divisional Board ------------------------------------------------------ Harald Christ, member of WestLB´s Private Banking Divisional Board and Chief Executive Manager of Weberbank AG, is leaving the WestLB Group at his own request in order to pursue new business opportunities elsewhere. He will leave the Bank on June 30, 2008 by amicable and mutual consent. "We would like to thank Harald Christ for his strong commitment and his achievements regarding the further strategic development of our Bank," Michael Graf Strasoldo, Chairman of the Managing Board of Weberbank, said. "We wish him all the very best both professionally and personally for the future." About WestLB Hearquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB) -- http://www.westlb.com/-- provides financial advisory, lending, structured finance, project finance, capital markets and private equity products, asset management, transaction services and real estate finance to institutions. In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC. WestLB's shareholders are the two savings banks associations in NRW (25.15% each), two regional associations (0.52% each), the state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW (64.7%) and two regional associations (35.3%). * * * In January 2008, Fitch Rating downgraded WestLB AG's Individual rating to 'F' from 'D/E' and removed the Rating Watch Negative. ============= H U N G A R Y ============= BUDAPESTI KOZLEKEDESI: May Sell Assets to Avert Bankruptcy ---------------------------------------------------------- Budapesti Kozlekedesi Vallalat Zrt is considering on selling its remaining property assets to avoid bankruptcy, the Financial Times reports citing Nepszabadsag. The company, which is owned by the City of Budapest, is drafting a list of properties to sold for approval, the report adds. Nepszabadsag related that BKV had previously sold some assets and noted that the expected revenues from future sell-offs would still be insufficient to resolve the company's financial woes, FT relates. Headquartered in Budapest, Hungary, BKV Zrt (Budapesti Kozlekedesi Zrt.; Mass Transport co. ltd. of Budapest) -- http://www.bkv.hu/home/index.php-- is the unified public transport company of the city of Budapest. ============= I R E L A N D ============= CLOVERIE PLC: Fitch Slashes Ratings on EUR80 Million Notes ---------------------------------------------------------- Fitch Ratings downgraded Cloverie Plc's EUR30m Series 2004-72 Class C (ISIN: XS0205981581) and EUR50m Series 2004-77 Class C (ISIN: XS0207605162) secured credit-linked floating-rate notes due 2024 to 'BB' from 'AAA'. In addition, the notes have been placed on Rating Watch Negative. The USD50m Series 2005-04 Class C (ISIN: XS0212294077) secured credit-linked floating-rate notes due 2025 are also downgraded to 'BB' from 'AAA' and are also placed on RWN. The downgrades reflect the portfolio's deterioration since May 2007. The portfolio consists of assets that were initially rated 'AAA'. Since the last review in May 2007, credit deterioration on three reference assets has substantially lowered the pool quality. The amortisation of the underlying pool led to a decrease in synthetic excess spread. In conjunction with subordination, available credit enhancement is not sufficient to cover the risk of the 'BB'-rated portion of the underlying asset pool. Currently, the noteholders are directly exposed to the risk of the 'BB'-rated underlying assets. The notes remain on RWN until the RWN status of the assets in the underlying pool is resolved. These transactions are synthetic collateralised debt obligations. Cloverie is a special purpose vehicle incorporated under the laws of Ireland. It has entered into mezzanine credit default swaps with Citigroup Global Markets Limited. Each series references an identical static portfolio of 100% US RMBS Home Equities originated in 2004. The notes are backed by eligible collateral securities purchased with the net proceeds of their issuance. OMEGA CAPITAL: Moody’s Cuts Ratings on Three Series 46 Notes ------------------------------------------------------------ Moody's Investors Service downgraded and left on review for further downgrade several tranches of a managed synthetic CDO issued by Omega Capital Europe p.l.c. Series 46. The underlying portfolio of these transactions includes a siginificant portion of US subprime and Alt-A bonds, in particular of the 2006 vintages. Moody's announced on February 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. The rating actions are: Issuer: Omega Capital Europe p.l.c. Series 46 (1) EUR48.75M Class A Notes Due March 2050 Current Rating: Baa3, on review for downgrade Prior Rating: Aaa (2) EUR16.25M Class B Notes Due March 2050 Current Rating: B2, on review for downgrade Prior Rating: A2 (3) EUR7.00M Class C Notes Due March 2050 Current Rating: Ba1, on review for downgrade Prior Rating: Aa3 ========= I T A L Y ========= FIAT SPA: Retains European Market Share in April 2008 ----------------------------------------------------- Fiat S.p.A. maintained its market share in Europe in April 2008, Thomson Financial News reports, citing CEO Sergio Marchionne. According to Mr. Marchionne, Thomson Financial News reports, Fiat's sales in countries outside Italy compensated for the company's performance in the weak Italian market. Thomson Financial News relates that in March 2008, Fiat had 7.3% market share in Europe and 7.4% in western Europe. In April 2007, the company had 8.2% Europe share and 8.5% in western Europe. 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. PARMALAT SPA: Posts EUR90.2 Group Net Profit for 1st Qtr 2008 ------------------------------------------------------------- The Parmalat Group posted EUR90.2 million in net profit on EUR926.9 million in net revenues for the first quarter 2008, compared with EUR110.3 million in net profit on EUR868.7 million in net revenues for the same period in 2007. The higher list prices implemented in response to a sharp rise in the cost of raw milk and a further improvement in the product mix achieved through plans that focus efforts and investments on products with a higher value added account for this positive performance. The Group’s net financial position improved by EUR59.5 million, with net financial assets increasing from EUR855.8 million at Dec. 31, 2007 to EUR915.3 million at March 31, 2008. The improvement in net financial position is due mainly to: * collection of EUR82.3 million in proceeds from settlements reached during the first three months of 2008 with: -- Banca Monte dei Paschi di Siena S.p.A. (EUR79.5 million); and -- Fortis Bank (EUR2.8 million); and * translation into Euros of the indebtedness of companies that operate outside the Euro zone (EUR36.3 million). This improvement was offset in part by: * cash flow used for operating activities (EUR36.9 million); and * the payment of EUR17.1 million in legal costs incurred in connection with revocatory legal actions and actions for damages. Parmalat S.p.A. posted EUR106.4 million in net profit on EUR227 million in net revenues for the first quarter 2008, compared with EUR87.3 million in net profit on EUR208.5 million in net revenues for the same period in 2007. This improvement was made possible by: * increases in net financial income (EUR15.1 million for first quarter 2008, compared with EUR4.5 million in for first quarter 2007); and * income from subsidiaries (EUR28.2 million, compared with EUR0.4 million in the first quarter of 2007), which consisted of dividends declared by Group companies. Net financial assets in the first quarter 2008, improved by EUR95.9 million from EUR1.23 million to EUR1.33 million, due mainly to the collection of settlement payments from Monte Paschi Siena (EUR79.5 million) and Fortis Bank (EUR2.8 million). Business Outlook In the early months of 2008, virtually all of the markets in which the Group operates have been experiencing strong competitive pressure, which is having an impact both on sales volumes and prices. In addition, the Euro is continuing to strengthen significantly against the currencies of the main countries where the Group operates (Canadian dollar and South African rand). The Group has identified and is implementing actions in order to maintain the EBITDA targets foreseen for 2008 within the low range of approximately 7%. The actions involve both the production costs than the continuos improvement of the mix and the price sales policies aimed to recover profitability. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/ -- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. =================== K A Z A K H S T A N =================== AGENTSTVO GRUZOVYH: Creditors Must File Claims by June 25 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Agency of Freight Transportations Agentstvo Gruzovyh Perevozok insolvent on March 14, 2008. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Tkachev Str. 17-185 Pavlodar Kazakhstan Tel: 8 (7182) 52-86-96 AVALON FINANCE: Claims Deadline Slated for June 25 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Avalon Finance insolvent on March 31, 2008. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Prokofyev Str. 41-3 050005, Almaty Kazakhstan Tel: 8 (7272) 95-85-86 8 701 756 42-06 INTEX XXI: Claims Filing Period Ends June 24 -------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Intex XXI insolvent. Creditors have until June 24, 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 OTRAR COMMERTS: Creditors' Claims Due on June 25 ------------------------------------------------ LLP Otrar Commerts Stroy has declared insolvency. Creditors have until June 25, 2008, to submit written proofs of claims to: LLP Otrar Commerts Stroy Erjanov Str. 18 Karaganda Kazakhstan SOLANO LLP: Claims Registration Ends June 25 -------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Solano insolvent on Feb. 27, 2008. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Micro District 23 Chasnikov Str. 55 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 25-47-06 8 (7232) 51-78-64 STROY MASTER-PV: Creditors Must File Claims by June 25 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Stroy Master-PV insolvent on March 4, 2008. Creditors have until June 25, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Tkachev Str. 17-185 Pavlodar Kazakhstan Tel: 8 (7182) 52-86-96 TENGIZ-KOL LLP: Claims Deadline Slated for June 24 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Tengiz-Kol insolvent on March 18, 2008. Creditors have until June 24, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan UNGAR-2 LLP: Claims Filing Period Ends June 24 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Ungar-2 insolvent on March 18, 2008. Creditors have until June 24, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan =================== K Y R G Y Z S T A N =================== EURO BUILD: Creditors Must File Claims by July 2 ------------------------------------------------ LLC Euro Build Group has declared insolvency. Creditors have until July 2, 2008 to submit written proofs of claim. Inquiries can be addressed to (+996 312) 54-66-61 =================== L U X E M B O U R G =================== KOENIGINSTRASSE I: Moody’s Rates EUR9.2MM Class E Loan at Ba3 ------------------------------------------------------------- Moody's has assigned long term ratings to six classes of Schuldschein Loans issued on May 2, 2008 by Koeniginstrasse I S.A.R.L, a special purpose company incorporated under the laws of Luxembourg. The ratings are: -- Aaa to the EUR168,360,000 Class A1 Schuldschein Loan due 2014 -- Aaa to the EUR46,000,000 Class A2 Schuldschein Loan due 2014 -- Aa2 to the EUR27,600,000 Class B Schuldschein Loan due 2014 -- A2 to the EUR23,000,000 Class C Schuldschein Loan due 2014 -- Baa3 to the EUR18,400,000 Class D Schuldschein Loan due 2014 -- Ba3 to the EUR9,200,000 Class E Schuldschein Loan due 2014 The ratings address the expected loss posed to Schuldschein Loan lenders by the legal final maturity in 2024. This transaction is a high yield collateralised loan obligation related to a portfolio comprised of European senior loans (with a predominance of senior secured loans). This portfolio will be partially acquired at closing and partially during the five month ramp-up period. Thereafter, the portfolio of debt obligations will be actively managed and the investment manager will be able to buy or sell debt obligations on behalf of the Issuer. Any addition or removal of debt obligations will be subject to a number of portfolio criteria. Pimco Europe Limited will act as investment manager for the transaction. Subject to compliance with certain conditions and formulas, the size and/or leverage of the deal can be increased respectively decreased. The transaction is arranged by Dresdner Kleinwort. ===================== N E T H E R L A N D S ===================== PQ CORPORATION: Moody’s Puts Corporate Family Rating at B2 ---------------------------------------------------------- Moody's Investors Service assigned a B2 corporate family rating to PQ Corporation and assigned a B2 rating to its first lien revolving credit facility, a B2 rating to its first lien term loan and a B3 rating to its second lien credit facility. The rated debt has financed the July 2007 acquisition of PQ by funds associated with The Carlyle Group and will finance PQ's acquisition of the Ineos Silicas business. The ratings outlook is stable. Ratings assigned: PQ Corporation -- Corporate family rating: B2 -- Probability of default rating: B2 -- US$200mm First lien revolving credit facility due 2013: B2 (LGD3, 46%) -- US$1,105mm First lien term loan due 2014: B2 (LGD3, 46%) -- US$460mm Second lien term loan due 2015: B3 (LGD4, 64%) On July 30, 2007, PQ was purchased by Carlyle Partners IV, LP, a private investment fund affiliated with The Carlyle Group, from CCMP Capital Advisors, LLC. PQ is in the process of acquiring the Ineos Silicas business in a transaction expected to close in the second quarter of 2008. The rated debt provides financing for both transactions, with the Ineos Silicas acquisition being primarily financed with a second draw under the existing first lien term loan. The B2 corporate family rating reflects PQ's elevated leverage, a revenue base that is expected to be less than initial debt levels, integration risk associated with a new acquisition and initially weak credit metrics. The ratings are supported by the company's stable inorganic chemicals, catalysts and engineered glass materials businesses with leading market positions and a history of steady (although moderate) revenue growth. Earnings stability is provided by the company's diverse end markets, a large customer base and geographically diverse operations. PQ has high margins for its credit rating category and is expected to maintain or improve same, despite a rising raw material pricing environment. The stable outlook reflects the expectation that PQ will generate sufficient cash flow to meet its debt service obligations and de-lever. Moody's expects PQ's strong market positions, established customer relationships and ability to maintain its margins will support free cash flow generation. The rating currently has limited upside in the near-term given the significant amount of leverage the firm has taken on. The rating could come under downward pressure if the company fails to maintain its margins, generate free cash flow as expected to support repayment of debt, and successfully integrate the Ineos Silicas business, including realization of synergies. PQ Corporation, headquartered in Malvern, Pennsylvania, is a leading provider of inorganic specialty chemicals, including sodium silicate, silicate derivatives, catalysts and engineered glass materials. PQ Corporation's sales revenues for the year ended December 31, 2007, were $775 million. The company Latin America Head Office is located in Mexico. Its European Head Office is domiciled in the Netherlands while the Asia Pacific Head Office is in Australia. X5 RETAIL: Federal Anti-Monopoly Approves Karusel Acquisition ------------------------------------------------------------- X5 Retail Group N.V disclosed that it has received approval from the Federal Anti-Monopoly Service to acquire the Karusel hypermarket chain. The acquisition, which is still subject to satisfactory completion of due diligence, will substantially increase X5’s market share in the food retail market of St. Petersburg. The FAS approval contains a number of conditions regarding the conduct by X5 of its business in St. Petersburg intended to promote competition and ensure fair terms for participants in the St. Petersburg food retail market. These conditions include fair, transparent and non- discriminatory dealings with suppliers to X5's stores in St. Petersburg, the development, approval by the FAS and publication on X5's website of rules relating to its dealings with suppliers in St. Petersburg, and compliance with these rules. Detailed provisions of the approval will prohibit, among other things, charges by X5 to suppliers of unprocessed agricultural products* to X5 stores in St. Petersburg and the establishment of terms relating to compensation by such suppliers of X5’s expenses. The conditions to the approval also regulate similar arrangements X5 may have with suppliers of other products to its stores in St. Petersburg. The approval does not require X5 to dispose of any part of its or Karusel's business. X5 does not expect to be materially affected by these conditions. "We are happy to announce that the Anti-Monopoly Service approved the acquisition of Karusel by X5, Lev Khasis, Chief Executive Officer of X5 Retail Group N.V., said. "We also welcome the FAS’ efforts to establish transparent rules for the players in the St. Petersburg food retail market and to promote fair and non-discriminatory relations between retailers and suppliers, which is in line with the Company’s business approach. We believe that the measures proposed by the FAS are ultimately in the interest of consumers, and, in line with the new rules, the Company intends to continue improving its relationships with suppliers with the aim of sharing the obtained benefits with its customers". "X5 has fulfilled its obligations under the Call Option Agreement: the Company raised funding to acquire Karusel and obtained the approval by the Anti-Monopoly Service," Andrei Gusev, Mergers, Acquisitions and Business Development Director of X5 Retail Group added. "We plan to finalize the due diligence shortly and subject to our satisfaction with the results are determined to proceed to closing of the acquisition". About X5 Retail Headquartered in Amsterdam, Netherlands, X5 Retail Group N.V. (LSE: FIVE) -- http://www.x5.ru/en/-- acts as a holding fi