/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/081023.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, October 23, 2008, Vol. 9, No. 211 Headlines A U S T R I A 1,2,3 EVENT: Claims Registration Period Ends November 5 1,2,3 EVENT HOLDING: Claims Registration Period Ends November 5 AIM FINANCIAL: Claims Registration Period Ends November 5 CSO LANIFEX: Claims Registration Period Ends November 5 INTERBAU LLC: Claims Registration Period Ends November 5 P & G PRACHNER: Claims Registration Period Ends November 5 B E L G I U M TRUVO SUBSIDIARY: Moody's Junks Ratings on Senior Notes to Caa2 B U L G A R I A KREMIKOVTZI AD: Vorkskla Steel Suspends Production Deal F I N L A N D SUPERSEACAT: Declared Bankrupt by Helskinki's Circuit Court G E R M A N Y ABC-MODELLSPORT VERWALTUNGS: Claims Registration Ends Oct. 30 CHRYSLER LLC: Bankruptcy to Resolve Labor Woes, Economist Says D.T.S.-BAU: Claims Registration Period Ends October 28 DUERR AG: Inks Global Aligned Business Framework Deal with Ford DVS GESELLSCHAFT: Claims Registration Period Ends Oct. 28 EGA HOCH: Claims Registration Period Ends October 28 GLAMOUR DE LUXE: Creditors Meeting Slated for October 30 GOLDFRUCHT GROSSHANDEL: Creditors Meeting Slated for Oct. 30 IKB DEUTSCHE: EU Commission Approves EUR9 Billion Lifeline KABEL DEUTSCHLAND: Moody's Changes Outlook on Ratings to Stable MASSIVHAUS GMBH: Claims Registration Period Ends October 29 MATLO GMBH: Claims Registration Period Ends October 28 NEXT 2 YOU: Creditors' Meeting Slated for October 30 NRG ENERGY: US$6.2MM Purchase Offer Neg. for Exelon, Moody's Says NRG ENERGY: Pending Exelon Deal Cues Fitch to Keep Ratings PINGUIN TRANSKALTE: Claims Registration Period Ends October 28 SPEZIAL STAHL-UND: Claims Registration Period Ends October 28 TYKO GMBH: Claims Registration Period Ends October 28 TIEFBAU RITTMEIER: Creditors' Meeting Slated for October 29 SVC CATERING: Creditors' Meeting Slated for October 29 WSW ELASTOMERTECHNIK: Claims Registration Period Ends Oct. 29 H U N G A R Y PROPEX INC: Has Until October 29 to File Reorganizational Plan I R E L A N D DROGHEDA UNITED: High Court Agrees to Appoint Examiner I T A L Y ALITALIA SPA: British Airways Offers Commercial Partnership TISCALI SPA: S&P Cuts Corporate Credit Rating to 'B' * Moody's Says Italian Gov't. Support Measures Beneficial K A Z A K H S T A N ALKO-BASIS LLP: Creditors Must File Claims by November 28 ALMATY CLINING: Claims Deadline Slated for November 28 BUILDING TIER LLP: Claims Filing Period Ends November 28 JAISAN LLP: Creditors' Claims Due on November 28 JANA-ARKA LLP: Claims Registration Ends November 28 JANAR LLP: Creditors Must File Claims by November 28 METALL PROM: Claims Deadline Slated for November 28 MUNAI-SAUDA-2008 LLP: Claims Filing Period Ends November 28 ZLAT-AGRO LLP: Creditors' Claims Due on November 28 K Y R G Y Z S T A N ISKRA-ENERGO LLC: Creditors Must File Claims by November 26 MRAMORNY-2 LLC: Creditors' Meeting Slated for October 27 NAP KYRGYZSTAN: Assets Sale Slated for October 29 N E T H E R L A N D S NXP BV: Cash Position Improves Following ST-NXP Joint Venture NXP BV: S&P Says Ratings Unaffected by Third-Quarter Results TRADER CLASSIFIED: Shareholders Approve Liquidation P O L A N D * POLAND: Records 319 Business Insolvency Cases R U S S I A BRATSKIY JOINERY: Irkutsk Bankruptcy Hearing Set Aug. 12, 2009 FIN-SERVICE LLC: St. Petersburg Court Hearing Set Jan 19, 2009 FIRST OIL : Creditors Must File Claims by December 10 INVESTBANK: S&P Assigns 'ruBB' Russian National Scale Rating MOBILE TELESYSTEMS: To Place RUR10 Billion Bond Today OMSKIY CEREAL: Omsk Bankruptcy Hearing Set Jan. 13, 2009 RUBTSOVSKIY COLD: Altayskiy Bankruptcy Hearing Set December 22 UNDO-LES LLC: Arkhangelsk Bankruptcy Hearing Set Jan. 20, 2009 URAL BANK: Moody's Puts E+ BFSR on Review for Possible Downgrade VOLGOGRADSKIY ENGINE: Volgograd Bankruptcy Hearing Set Dec. 25 S W E D E N FORD MOTOR: Tracinda's Stake Sale Casts Doubt on Firm's Health S W I T Z E R L A N D ACN INVESTMENT: Creditors Must File Proofs of Claim by Oct. 31 CLAR-DENT LLC: Deadline to File Proofs of Claim Set Nov. 3 GENERAL MOTORS: Merger Might Help Ease Union Talks, Analyst Says HEGE JSC: Creditors Have Until Oct. 30 to File Claims HEIDA HOLDING: Proofs of Claim Filing Deadline is Nov. 2 SINTERAS LLC: Creditors' Proofs of Claim Due by Nov. 3 WELLNESS MONTAGE: Nov. 5 Set as Deadline to File Claims WERNER MOSER: Creditors Must File Proofs of Claim by Nov. 5 * Moody's Says Swiss Banks' Ratings Unaffected by Gov't. Measures U K R A I N E AVIAS LLC: Creditors Must File Claims by October 26 BERDICHEV BREADPRODUCTS: Creditors Must File Claims by Oct. 25 COLVIS FINANCE: Moody's Shifts Outlook on B1-Rated Notes to Stable COMPLEX V LLC: Creditors Must File Claims by October 26 GALITSKY PETROLEUM: Creditors Must File Claims by October 26 IINDUSTRIALTRADE LLC: Creditors Must File Claims by October 26 KOLOS LLC: Creditors Must File Claims by October 25 KREMENETS BREAD: Creditors Must File Claims by October 25 LEVADA LLC: Creditors Must File Claims by October 25 MTSYRI LLC: Creditors Must File Claims by October 26 NAFTOGAZ NJSC: Moody's Changes Outlook on B1 CFR to Negative N.A.S.A.-SOUTH: Court Names V. Tcherepenko as Insolvency Manager NIVA LLC: Creditors Must File Claims by October 26 NOVABUD LLC: Court Starts Bankruptcy Supervision Procedure PRETORIAN-XXI LLC: Court Names A. Komarov as Insolvency Manager ROMSUPPLYCENTER LLC: Creditors Must File Claims by October 25 VIPRODUCT LLC: Court Names A. Finko as Insolvency Manager U N I T E D K I N G D O M AMERICAN INTERNATIONAL: To Sell Stake in Asian Life-Insurance Biz AVALON PACKAGING: Taps Administrators from BDO Story Hayward BRITISH AIRWAYS: Offers Commercial Partnership With Alitalia ELECTRICITY 4 BUSINESS: Goes Into Administration ID DATA: Petitions High Court to Appoint Administrators LEEDS LTD: Appoints Joint Administrators from PwC KAUPTHING SINGER: Williams de Broe to Buy Investment Mgt Team PROTIER HOUSE: Brings in Joint Administrators from PwC REALITY BYTES: Appoints Peter Nicholas Wastell as Liquidator SAUNDERS SOLICITORS: Taps Joint Administrators from BDO Stoy SCANMOOR RAIL: Calls in Liquidators from Vantis SPEED FRAME: Brings in Joint Administrators from BDO Stoy SUREWAY SCAFFOLDING: Taps Deloitte & Touche to Administer Assets TATA STEEL: Moody's Changes Outlook on Ba3 Ratings to Negative TOM AIKENS: Sold to TA Holdco Ltd. Through Management Buy Out * UK Business Confidence Plummets to a Record Low, KMPG Says * PwC Says UK Businesses Must Not Rule Out Pension Scheme Buyout * S&P Says European Bank Measures to Help Stabilize Credit Markets * S&P Reports Slow Economy to Pressure European Chemical Companies * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= 1,2,3 EVENT: Claims Registration Period Ends November 5 ------------------------------------------------------- Creditors owed money by LLC 1,2,3 Event (FN 234879k) have until Nov. 5, 2008, to file written proofs of claim to the court- appointed estate administrator: Dr. Walter Kainz 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 10:50 a.m. on Nov. 19, 2008, for the examination of claims at: The Trade court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 17, 2008, (Bankr. Case No. 2 S 115/08m). 1,2,3 EVENT HOLDING: Claims Registration Period Ends November 5 --------------------------------------------------------------- Creditors owed money by LLC 1,2,3 Event Holding have until Nov. 5, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna Austria Tel: 877 33 30 Serie Fax: DW 33 E-mail: office@ra-stampfer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:10 a.m. on Nov. 19, 2008, for the examination of claims at: The Trade court of Vienna Room 1707 Vienna Austria Headquartered in [city], Austria, the Debtor declared bankruptcy on Sept. 17, 2008, (Bankr. Case No. 2 S 116/08h). AIM FINANCIAL: Claims Registration Period Ends November 5 --------------------------------------------------------- Creditors owed money by LLC AIM Financial Systems (FN 180563i) have until Nov. 5, 2008, to file written proofs of claim to the court-appointed estate administrator: Mag. Dr. Guenther Hoedl Schulerstrasse 18 1010 Vienna 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 9:30 a.m. on Nov. 19, 2008, for the examination of claims at: The Trade court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 23, 2008, (Bankr. Case No. 4 S 134/08w). CSO LANIFEX: Claims Registration Period Ends November 5 ------------------------------------------------------- Creditors owed money by LLC CSO Lanifex have until Nov. 5, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna Austria Tel: 877 33 30 Serie Fax: DW 33 E-mail: office@ra-stampfer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on Nov. 19, 2008, for the examination of claims at: The Trade court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 19, 2008, (Bankr. Case No. 2 S 117/08f). INTERBAU LLC: Claims Registration Period Ends November 5 -------------------------------------------------------- Creditors owed money by Friedrich Weber LLC Interbau (FN 289413h) have until Nov. 5, 2008, to file written proofs of claim to the court-appointed estate administrator: Dr. Ilse Korenjak Gusshausstrasse 6 1040 Vienna Austria Tel: 01/512 21 02 Fax: 01/512 21 02 20 E-mail: office@buresch-korenjak.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 9, 2008, for the examination of claims at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Korneuburg, Austria, the Debtor declared bankruptcy on Sept. 19, 2008, (Bankr. Case No. 36 S 106/08t). P & G PRACHNER: Claims Registration Period Ends November 5 ---------------------------------------------------------- Creditors owed money by LLC P & G Prachner & Godai (FN 137541t) have until Nov. 5, 2008, to file written proofs of claim to the court-appointed estate administrator: 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 9:15 a.m. on Nov. 19, 2008, for the examination of claims at: The Trade court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 22, 2008, (Bankr. Case No. 4 S 133/08y). Dr. Susi Pariasek represents Mag. Holper in the bankruptcy proceedings. ============= B E L G I U M ============= TRUVO SUBSIDIARY: Moody's Junks Ratings on Senior Notes to Caa2 --------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating and the Probability of Default Rating of Truvo Subsidiary Corp to B3 from B2; and the ratings on the EUR395 million and US$200 million senior notes due 2014 issued by Truvo to Caa2 from Caa1. The outlook is negative. This concludes the review initiated on September 10, 2008, following the group's announcement of its results for the first half of 2008, which reflect deterioration in its operating performance. Moody's notes that the weakening in the group's operating performance has been accelerating largely driven by a decline in its print directory sales -- particularly in Belgium -- given the worsening macroeconomic conditions in its markets, coupled with faster than expected migration to online from print. Although Moody's acknowledges that management's estimate of online growth for the current year is at circa 20% (after stripping out the timing differences), the group's still developing online positioning in the new cycle in Moody's view implies a degree of execution risk in the current environment. In this challenging economic and business context, Truvo's management has said that it expects total net operating revenues for full year 2008 to be down between 4.5% and 6% and EBITDA to be down between 6% and 8% year on year. In Moody's view, such full- year results should significantly undermine the group's free cash flow generation and exert further pressure on its already weak de- leveraging prospects in the near term. The negative outlook reflects Moody's concerns regarding the pressures on top-line growth and profitability in the near term, together with limited visibility on the group's performance and outlook for the year 2009 and beyond in light of the company's very weak credit metrics relative to market valuations, particularly given the possibility of further economic deterioration in each of its markets. The ratings could be further downgraded if i) Truvo does not de-leverage in accordance with Moody's expectations, as a result of - amongst other factors - difficulties implementing planned operating improvements or increased economic and competitive pressures in its markets; ii) free cash flow becomes negative; and iii) Total Debt/EBITDA (as adjusted by Moody's, with EBITDA including dividends from minorities/JV) does not reduce over the near term below 8x. With regard to the group's disposal of its Dutch activities at an enterprise value of EUR293 million, Moody's notes that Truvo completed the transaction on September 16, 2008. In addition to a gross cash consideration of EUR283 million and EUR10 million vendor loan, Truvo received an additional amount of EUR18 million of interest covering the period between the effective date and completion. Although there remains some uncertainty over the group's potential use of the proceeds, Moody's understands that Truvo currently expects to use the net proceeds from the sale to repay debt. Although its impact on the group's credit metrics (i.e. Net Debt/Attributable EBITDA defined by Truvo) is likely to be neutral, any potential de-leveraging in absolute terms would have positive credit implications. Based on the group's management accounts presented under IFRS, Moody's notes that Truvo recorded consolidated net operating revenues of EUR130 million (excluding the operations in the Netherlands) in H1 2008 (down 2% year-on-year), 76% of which was generated from the operations in Belgium, where print revenues and total revenues contracted by 10% and 5.7%, respectively. Management estimates low-to mid-single-digit revenue declines in Belgium, Ireland and Portugal for the full year 2008. EBITDA fell to EUR39.8 million in H1 2008 (down 14% year-on-year), reflecting the high operational gearing of the business together with its sensitivity to revenue declines as well as the investments in online activities. Truvo Intermediate Corp., the parent of Truvo Subsidiary Corp., is, through its subsidiaries, the leading directory publisher in Belgium, Ireland and Romania. Through its joint venture with Portugal Telecom, the company is the leading directory publisher in Portugal and, through its minority interests, holds leading positions in the directory markets in South Africa and Puerto Rico. In 2007, the group generated consolidated revenues of EUR346 million and EBITDA of EUR168.4 million under IFRS. =============== B U L G A R I A =============== KREMIKOVTZI AD: Vorkskla Steel Suspends Production Deal ------------------------------------------------------- Konstyantin Zhevago's Vorkskla Steel has decided to terminate its production deal with Kremikovtzi, Irina Ivanova and Tsvetelia Ilieva write for Reuters. Viktor Demenyuk, Vorkskla's executive director, claimed the plant's management, the receivers and the Balkan state had been unsupportive and had raised a number of obstacles to Vorskla's operations with Kremikovtzi, Reuters relates. Mr. Demenyuk, Reuters discloses, pointed to the "apparent unwillingness for achieving mutual understanding on part of some of the trade union leaders, problems in recovering value added tax from the state, constant thefts of production and sabotage." Citing industry sources, Reuters says the deal's suspension could seriously hurt Kremikovtzi and may lead to its closure. Mr. Demenyuk however said Vorkskla will keep the mill operational at a minimum level until a final solution is found, adding Mr. Zhevago is still interested in acquiring the mill, Reuters notes. Bulgaria's largest trade union, CITUB, believed Vorskla lacked the financial resources to ensure the plant's operation at full capacity and that other companies should also be allowed to sign production deals, Reuters adds. About Kremikovtzi Headquartered in Sofia, Bulgaria, Kremikovtzi AD -- http://www.kremikovtzi.com/-- is a single-site steel producer in Bulgaria that reported BGN896 million in revenues in 2006. It explores and produces iron and ore fields. As of Dec. 31, 2007, Kremikovtzi AD had around BGN1.63 billion (US$1.3 billion) in total debts. ============= F I N L A N D ============= SUPERSEACAT: Declared Bankrupt by Helskinki's Circuit Court ----------------------------------------------------------- Helsinki's circuit court, on Tuesday, Oct. 21, declared Finnish ferry company Superseacat bankrupt, Baltic Business News reports. The company halted operations last week. On Oct. 17, 2008, the TCR-Europe reported that SuperSeaCat is going into liquidation according to a bulletin the company distributed to passengers at the port of Tallinn in Estonia. The report said the company, previously known as SeaContainers Finland, blames financing difficulties and intense competition for its decision to liquidate the business. In an interview with the Finnish News Agency, Mr. Simo Zitting, of the Finnish Seamen's Union, estimates around 150 jobs lost from discontinued operations, the report noted. Mr. Peter Walker, SuperSeaCat chief executive, promised customers that tickets will be refunded, the report added citing Finnish Daily, Helsingin Sanomat, the report disclosed. ============= G E R M A N Y ============= ABC-MODELLSPORT VERWALTUNGS: Claims Registration Ends Oct. 30 ------------------------------------------------------------- Creditors of abc-Modellsport Verwaltungs-GmbH have until Oct. 30, 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 11:00 a.m. on Nov. 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 Offenburg Area 0.005 Basement Hindenburgstr. 5 77654 Offenburg 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. Martin Mildenberger Bertha-von-Suttner-Str. 3 77654 Offenburg Germany The District Court of Offenburg opened bankruptcy proceedings against abc-Modellsport Verwaltungs-GmbH on Sept. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: abc-Modellsport Verwaltungs-GmbH Attn: Joern Schmitt, Manager Berghauptener Str. 21 77723 Gengenbach Germany CHRYSLER LLC: Bankruptcy to Resolve Labor Woes, Economist Says -------------------------------------------------------------- Tim Higgins and Katie Merx at Free Press (Detroit) report that Peter Morici, a University of Maryland business professor and former chief economist at the U.S. International Trade Commission, said that Chrysler LLC should be allowed to file for bankruptcy. "The simple fact is that the best solution for Chrysler is Chapter 11 to remove the burdens of the UAW [United Auto Workers] contract and scale down the company to something one half to two thirds its current size. That would serve GM's [General Motors Corp.] interests, too -- both Ford and GM would benefit from some capacity and cars going off the market," Free Press quoted Mr. Morici as saying. According to court filings by the UAW, a financial analysis made before the economic crisis indicates an up to 50% chance of a Chrysler insolvency by 2013. According to Free Press, Mr. Morici said that if GM acquired Chrysler's Jeep brand and minivan program, "GM would still have to pay heavy severance bonuses to workers it laid off streamlining their operations, similar payments would be required to shutter much of Chrysler's unattractive truck and car operations, and GM would still have to fund the union health care fund for retired Chrysler employees." Merger May Help in Contract Renegotiation With Union A merger between GM and Chrysler would be a high-risk deal, but may give the new company "high leverage" to renegotiate with the United Auto Workers, Free Press reports, citing J.P. Morgan analyst Himanshu Patel. Free Press quoted Mr. Patel as saying, "GM desperately needs a reason to renegotiate many parts of its 2007 UAW contract." GM must renegotiate the "VEBA funding level" and wages for core workers, the report states, citing Mr. Patel. Free Press relates that due to the precarious financial positions of Ford Motor Corp., GM, and Chrysler, UAW had agreed to a deal that allows the companies to pay new hires less money than core workers and to shift billions of dollars of retiree health care spending to VEBA, an independent trust fund. According to the report, the union had agreed to the deal, saying that it had to make a sacrifice to help the industry better compete against foreign automakers that have lower costs from their U.S. workforces. The report says that the VEBA was a way to guarantee retiree health care benefits even if the companies go broke. Jim Millstein, managing director and co-head of Lazard Freres & Co.'s restructuring group, said in court documents, "Chrysler's long-term ability to meet its medical obligations to UAW retirees has deteriorated." According to Free Press, UAW President Ron Gettelfinger has said that he wouldn't agree to further delays in the VEBA payments. Free Press states that the union already agreed to let GM delay US$1.7 billion in payments to the VEBA that had been scheduled for 2008 and 2009. Mr. Gettelfinger said he is against a Chrysler-GM merger that results in more job losses, the report says. A Wall Street analyst said that GM could "win enough goodwill to extract further savings from the UAW," if the company is seen as saving Chrysler from bankruptcy and preserving jobs and benefits, Free Press states. Free Press relates that Harley Shaiken, a union expert from University of California-Berkeley, said, "After closing X-number of plants, eliminating say 30,000 to 50,000 jobs, my sense is that the UAW might not be in the best of moods to give further concessions." Free Press quoted Mr. Patel as saying, "By saving Chrysler from a liquidity event, GM may also be able to get itself much-needed secured bank financing from the same banks that are currently holding Chrysler debt." About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. D.T.S.-BAU: Claims Registration Period Ends October 28 ------------------------------------------------------ Creditors of D.T.S.-Bau Gesellschaft mbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Goetz Lautenbach. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 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 Offenbach am Main Hall 162N First Floor Kaiserstrasse 16-18 63065 Offenbach am Main Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Goetz Lautenbach Zeilweg 42, D 60439 Frankfurt am Main Germany Tel: 069/963761-130 Fax: 069/963761-145 The District Court of Offenbach am Main opened bankruptcy proceedings against D.T.S.-Bau Gesellschaft mbH on Sept. 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: D.T.S.-Bau Gesellschaft mbH Attn: Dragisa Ruskic, Manager Andrestrasse 44 63067 Offenbach am Main Germany DUERR AG: Inks Global Aligned Business Framework Deal with Ford --------------------------------------------------------------- Duerr and automaker Ford are further expanding their collaboration in the area of painting systems. The two companies signed a framework agreement giving Duerr the status of an Aligned Business Framework partner worldwide. This makes Duerr is the first supplier Ford will approach for projects in the field of painting systems, and the two companies will jointly develop technical solutions. Duerr is currently building paint shops for Ford in India and Romania and a final assembly line in St. Petersburg. Ford enters into Aligned Business Frameworks agreements only with select key partners that are especially efficient and competitive in respect to technology and global presence. The agreements spell out business practices designed to increase future collaboration, including phased-in up-front payment of engineering and development costs, extended sourcing and data transparency. Worldwide, the automaker works together with currently more than 65 ABF partners. According to Ralf Dieter, CEO of Duerr AG, "The framework agreement is a milestone in our relationship with Ford as it opens up additional, global business opportunities for Duerr." A decisive factor in the selection of Duerr was the experience Ford has had in the past years, especially in the areas of innovative ability, delivery quality, and costs. Duerr can thus make a contribution towards enabling Ford to produce automobiles on fewer, globally used platforms � in higher quality, at lower cost and with greater use of standard parts and systems. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Trouble Company Reporter on Oct. 20, 2008, Standard & Poor's Ratings Services placed the CCC ratings on nine Ford Motor Co.-related transactions on CreditWatch with negative implications. As reported in the Troubled Company Reporter-Latin America on Oct. 13, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. About Duerr Headquartered in Stuttgard, Germany, The Duerr Group -- http://www.durr.com/en/-- supplies products, systems, and services for automobile manufacturing. Duerr designs and builds, paint shops and final assembly plants. The Duerr Group also operates in the Czech Republic, France, UK, Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey, Australia, Brazil, China, India, Japan, Mexico, South Africa, South Korea and the U.S. * * * Duerr AG still carries a B+ long-term corporate credit rating with from Standard & Poor's Ratings Services with stable outlook. Duerr AG continues to carry a B1 corporate family rating from Moody's Investors Service with stable outlook. DVS GESELLSCHAFT: Claims Registration Period Ends Oct. 28 --------------------------------------------------------- Creditors of DVS Gesellschaft fuer Offset-Reproduktion mbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Dr. Volker Viniol. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 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 Stuttgart Hall 178 Hauffstr. 5 70190 Stuttgart Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Volker Viniol Danneckerstr. 52 70182 Stuttgart Germany Tel: 0711/23 88 90 Fax: 0711/23 88 930 The District Court of Stuttgart opened bankruptcy proceedings against DVS Gesellschaft fuer Offset-Reproduktion mbH on Sept. 24, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DVS Gesellschaft fuer Offset-Reproduktion mbH Maybachstr. 18 71332 Waiblingen Germany EGA HOCH: Claims Registration Period Ends October 28 ---------------------------------------------------- Creditors of EGA Hoch- Tief- Trocken- und Gartenbau GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Dr. Robert Schiebe. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Nov. 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 Frankfurt (Main) Hall 2 Building F Klingerstrasse 20 60313 Frankfurt (Main) Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Robert Schiebe Carl-Theodor-Reiffenstein-Platz 6 60313 Frankfurt am Main Germany Tel: 069/4056697-11 Fax: 069/4056697-12 E-mail: R.SCHIEBE@LEONHARDT-WESTHELLE.EU Web site: WWW.LEONHARDT-WESTHELLE.EU The District Court of Frankfurt am Main opened bankruptcy proceedings against EGA Hoch- Tief- Trocken- und Gartenbau GmbH on Sept. 22, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EGA Hoch- Tief- Trocken- und Gartenbau GmbH Attn: Giovanni Esposti Apiccino, Manager Niersteiner Strasse 12 60598 Frankfurt am Main Germany GLAMOUR DE LUXE: Creditors Meeting Slated for October 30 -------------------------------------------------------- The court-appointed insolvency manager for Glamour de Luxe GmbH, Toralf Maatz, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:35 a.m. on Oct. 30, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on Jan. 15, 2009, at the same venue. Creditors have until Nov. 15, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Toralf Maatz Kurfuerstendamm 26 a 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Glamour de Luxe GmbH on Sept. 12, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Glamour de Luxe GmbH Gartenfelder Str. 28 13599 Berlin Germany or Glamour de Luxe GmbH Muenchener Ring 2 04435 Schkeuditz Germany GOLDFRUCHT GROSSHANDEL: Creditors Meeting Slated for Oct. 30 ------------------------------------------------------------ The court-appointed insolvency manager for Goldfrucht Grosshandel GmbH, Torsten Martini, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:00 a.m. on Oct. 30, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on March 5, 2008, at the same venue. Creditors have until Nov. 30, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Torsten Martini Kurfuerstendamm 26a 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Goldfrucht Grosshandel GmbH on Sept. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Goldfrucht Grosshandel GmbH Popitzweg 7 13627 Berlin Germany IKB DEUTSCHE: EU Commission Approves EUR9 Billion Lifeline ---------------------------------------------------------- IKB Deutsche Industriebank obtained Tuesday a EUR9 billion cash injection from the EU Commission, The Associated Press reports. The EU Commission authorized, subject to conditions imposed, the state aid measures IKB has been receiving since the beginning of the credit crisis in July 2007, the German lender said in an Oct. 8, 2008 press statement. The conditions, according to IKB, include a considerable reduction in the business operations of IKB, the discontinuance of the business segment real estate finance and the closure of several foreign offices. The bank said it is intended to reduce the balance sheet total to EUR33.5 billion (from currently EUR47.7 billion as per June 30, 2008 or EUR63.5 billion as per March 31, 2007, prior to the beginning of the IKB crisis, respectively) until September 2011. As a consequence of this authorization, IKB states the condition precedent for carrying out a capital increase in the amount of EUR1.25 billion is no longer applicable. Thus the closing of the sale to Lone Star of the IKB shares held by KfW Entwicklungsbank can be effected in the short term, the bank said. According to The Associated Press, KfW, Germany's state-owned development bank, is IKB's biggest shareholder. The AP says KfW joined with three German banking associations to keep it afloat with capital injections and risk shields as well as liquidity facilities from KfW. The AP recalls KfW agreed in August to sell its 90.8% stake in IKB to Dallas-based investment fund Lone Star for a price that officials said was in the low three-digit million euros range - and well below the EUR800 million or US$1.05 billion price tag that the German government had initially targeted. Commenting on the EU rescue package, Dr Gunther Br�unig, Chairman of the Management Board of IKB, said: "The authorization of the aid measures for IKB allows for the bank's continued existence, thus providing legal certainty, for our clients, and for us as well. The compensation measures imposed are severe, but, as regards the bank's future strategy, they mean that IKB will be preserved in its core as a Mittelstand bank for medium-sized enterprises in Germany and in Europe." Asset Sale The conditions imposed by the EU, which must be implemented until September 2011, stipulate a reduction of the balance sheet total of IKB to EUR33.5 billion. The conditions include the closure or winding up or, as the case may be, sale of: -- Domestic and international real estate finance (60% until 2011), affected companies: IMG, IKB Projektentwicklungs GmbH & Co KG, IKB Projektentwicklungsverwaltungs GmbH, vol. March 2008: EUR4.9 billion -- IKB share (50%) in Movesta, a sale is planned -- IKB Capital Corporation, New York; vol. March 2008: EUR0.8 billion -- IKB International SA., Luxemburg, vol. March 2008: EUR7.5 billion, the derivatives business and credit holdings will be relocated to D�sseldorf -- Portfolio investments currently still in a nominal amount of EUR3 billion (winding up after expiry of term to maturity in Special Purpose Company) Job Cuts The units that will be directly affected by the conditions imposed by the EU contain about 300 employees. As a consequence of the imminent restructuring, further jobs in the IKB Group can be imposed. Lone Star Deal The closing of the sale to Lone Star of the IKB shares held by KfW is imminent. Once the capital increase has been carried out, the final acquisition of 90.8% of the IKB shares by Lone Star can be effected. The agreement on the sale of the IKB shares held by KfW to LSF6 Europe Financial Holdings L.P., a company of the US-American financial investor Lone Star, was signed on August 21, 2008. Accordingly, the new shares from the capital increase subscribed by KfW as well as the claims of KfW under its waivers of claims for repayment once the financial situation of IKB has improved (Besserungsanspr�che) were included in the sale. The administrative board of KfW consented on Sept. 18, 2008. About IKB Deutsche Industriebank IKB Deutsche Industriebank AG -- http://www.ikb.de/-- is a Germany-based banking company, which specializes in the field of long-term financing. It offers a range of financial products and services directed at medium-sized companies. The Bank operates internationally in four business segments: Corporate Lending, engaged in the credit transactions, mobile leasing, private equity sectors, as well as offerings of such capital market products as corporate bonds loans sectors for clients; Real Estate Financing, which provides customized financing solutions for real estate projects; Structured Finance, which offers such services as acquisitions and industrial project financing, and Portfolio Investments that is involved in the investments in equity products. As of 31 March, 2008, IKB Deutsche Industriebank AG's subsidiaries included AIVG Allgemeine Verwaltungsgesellschaft mbH, IKB Autoleasing GmbH, IKB Finance BV, ZAO IKB Leasing, ISTOS Grundstueck-Vermietungsgesellschaft mbH & Co. KG, among others. KABEL DEUTSCHLAND: Moody's Changes Outlook on Ratings to Stable --------------------------------------------------------------- Moody's Investors Service has changed the outlook on the ratings of Kabel Deutschland GmbH to stable from negative. The corporate family rating and the rating on the existing bonds remain at Ba3 and B2 respectively. The change in outlook reflects KDG's achievement of its financial parameters guidance for the fiscal year 2007/08. The company reported EBITDA increased from EUR382.5 million in 2006/07 to EUR457.8 million 2007/08. Also, the company closed its subscriber acquisition from Orion Group within the financial covenants stipulated in its bank and bond documentation. Moody's believes that KDG will continue with its strong growth momentum in revenue and EBITDA, partly fueled by the new subscribers from Orion Group. The main revenue and EBITDA drivers remain Internet and telephony products and, to a smaller degree, Pay TV. Furthermore, the company is likely to benefit from increasing EBITDA margin due to its operating leverage as the expenses to transition to digital platform are tailing off compared with previous years. At the same time, the company's leverage is high, at 5.7x Debt to EBITDA (as defined by Moody's) as of June 30, 2008, on an LTM basis. Proforma for the acquisition, the leverage was at 5.4x Debt to EBITDA. Moody's believes that the company would be able to de-leverage modestly on an EBITDA basis over the next 12 months. However, due to the high level of capital expenditure, the company is likely to generate limited cash flow for the fiscal year 2008/09. Moody's believes that KDG may be interested in participating in further Level 4 consolidation in the German market. However, the current rating does not factor in any sizable acquisitions or refinancing. If any material acquisitions were to occur, Moody's will review them separately for their potential impact on the rating. Additionally, the rating does not take into account any significant spending on the purchase of Bundesliga rights packages in the event the company decides to participate in the rights tender. KDG is the largest Level 3 cable operator in Germany. In Q1 2008/09, the company generated EUR329 million in revenue. MASSIVHAUS GMBH: Claims Registration Period Ends October 29 ----------------------------------------------------------- Creditors of Massivhaus GmbH Finsterwalde Schluesselfertiges Bauen have until Oct. 29, 2008, to register their claims with court- appointed insolvency manager Dr. Dirk Wittkowski. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Nov. 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 Cottbus Hall 213 Gerichtsplatz 2 Cottbus 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 Wittkowski Kirchblick 11 14129 Berlin Germany The District Court of Cottbus opened bankruptcy proceedings against Massivhaus GmbH Finsterwalde Schluesselfertiges Bauen on Sept. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Massivhaus GmbH Finsterwalde Schluesselfertiges Bauen Attn: Jana Boge-Lehmann, Manager Otto-Hahn-Strasse 8 -10, 03238 Massen Germany MATLO GMBH: Claims Registration Period Ends October 28 ------------------------------------------------------ Creditors of Matlo GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Dr. Arne Fu. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 6, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Pirmasens Hall 235 Second Floor Pirmasens 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. Arne Fu Buchsweilerstrasse 18 66953 Pirmasens Germany Tel: 06331-24130 Fax: 06331-241310 The District Court of Pirmasens opened bankruptcy proceedings against Matlo GmbH on Aug. 19, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Matlo GmbH Adam-Mueller-Strasse 39 66954 Pirmasens Germany NEXT 2 YOU: Creditors' Meeting Slated for October 30 ---------------------------------------------------- The court-appointed insolvency manager for next 2 you GmbH, Rolf Nacke, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 12:15 p.m. on Oct. 30, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 12:15 a.m. on Feb. 19, 2009, at the same venue. Creditors have until DEADLINE to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Rolf Nacke Gross-Berliner Damm 73 c 12487 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against next 2 you GmbH on Sept. 29, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: next 2 you GmbH Regensburger Str. 7 10777 Berlin Germany NRG ENERGY: US$6.2MM Purchase Offer Neg. for Exelon, Moody's Says --------------------------------------------------------------- Moody's Investors Service views Exelon Corporation's (Exelon: Baa1 senior unsecured) unsolicited offer to purchase NRG Energy, Inc. (NRG: Ba3 Corporate Family Rating) in a US$6.2 billion stock-for- stock transaction as being potentially negative for the credit quality of Exelon and Exelon Generation Company (ExGen: A3 senior unsecured). If the transaction proceeds, the consolidated credit metrics of Exelon and ExGen would weaken from historical levels and the business risk for the company, including environmental risks, would increase. Conversely, Moody's views the potential combination as having positive benefits for NRG creditors given Exelon's stronger balance sheet and the value for a merchant operation from being a part of a more diverse and larger organization. Through the 12 months ended June 30, 2008, Moody's calculates that Exelon and ExGen generated about US$5.0 billion and US$3.0 billion of operating cash flow, respectively, while NRG generated more than US$1.5 billion over the same period. Assuming that the merger is completed and all US$8.6 billion of NRG's debt and preferred is refinanced or assumed at the time of closing, Moody's calculates that the proforma combined cash flow to adjusted debt would be approximately 28% at the Exelon level and about 37% at the ExGen level, and cash flow coverage of interest expense would been slightly more than 5.0x at Exelon and nearly 6.0x at ExGen. These financial ratios are lower than the historical level. The prospects for Exelon's bid are uncertain. Most importantly, NRG has not agreed to the transaction. In addition, the transaction would entail substantial execution risk on the regulatory and financing front, particularly given the number of state approvals needed and the likely requirement to sell about 3,000 MW of assets. The transaction would result in a change of control event for NRG bondholders and bank creditors requiring Exelon to raise approximately US$8.0 billion of bank and bond debt to address this potential issue. Exelon has indicated that they are in discussions with underwriters to address this issue. However, S&P believe that in the current credit environment the financing terms are likely to be more expensive and more stringent than Exelon's current financing arrangements, which would further weaken consolidated credit metrics. However, Moody's also recognizes the increase in scale, geographic diversity and fuel diversity that will follow should this transaction move forward, all of which are important qualitative factors in assessing credit quality for merchant wholesale generators. In light of the unsolicited nature of Exelon's offer, the response by NRG, and the significant contingencies and uncertainties underlying the offer, Moody's does not expect to not make a determination on the possible rating impact for either company until circumstances are better clarified. Headquartered in Chicago, Exelon is the holding company for non- regulated subsidiary, ExGen and for regulated subsidiaries, Commonwealth Edison Company (ComEd; Baa3 senior unsecured, stable outlook) and PECO Energy Company (PECO; A3 Issuer Rating, stable outlook). At December 31, 2007, Exelon had total assets of US$45.4 billion. Headquartered in Princeton, NRG owns and operates power generating facilities, primarily in Texas and the northeast, south central and western regions of the United States. NRG also owns generating facilities in Australia and Germany. NRG ENERGY: Pending Exelon Deal Cues Fitch to Keep Ratings ---------------------------------------------------------- While an acquisition of NRG Energy Inc. by the higher-rated Exelon Corp. would be a positive for NRG's credit ratings, alternate scenarios including other corporate transactions could have neutral or deleterious credit implications, according to Fitch Ratings, which is keeping NRG on Rating Watch Evolving to reflect both the unresolved nature of the offer and, the possible outcomes should another suitor emerge or NRG proceed with an acquisition of its own or some other corporate transaction. Separately, Fitch has placed Exelon Corp. and Exelon Generation on Rating Watch Negative. Fitch originally placed NRG on Watch Evolving following its own unsolicited acquisition offer for competitive generator Calpine Corp in May 2008. Evolving signifies that Fitch may upgrade, downgrade or affirm NRG's ratings, pending the outcome of a definitive transaction with Exelon or other possible corporate combinations. These ratings remain on Rating Watch Evolving by Fitch: -- Issuer default rating at 'B'; -- Senior secured term loan B at 'BB/RR1'; -- Senior secured revolving credit facility at 'BB/RR1'; -- Senior notes at 'B+/RR3'; -- Convertible preferred stock at 'CCC+/RR6'. Approximately US$8.1 billion of debt is affected. Fitch is concerned with the refinancing risk associated with the change of control provisions on NRG's debt, particularly given current market conditions. Fitch expects to update the Rating Watch status upon the signing of a definitive transaction with Exelon or upon evaluation of the terms and conditions of another transaction should another offer emerge. PINGUIN TRANSKALTE: Claims Registration Period Ends October 28 -------------------------------------------------------------- Creditors of Pinguin Transkalte GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Dr. Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Dec. 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 Darmstadt Hall 4.312 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Jan Markus Plathner Lyoner Strasse 14 60528 Frankfurt Germany Tel: 069/962334-0 Fax: 069/962334-22 E-mail: m.plathner@brinkmann-partner.de The District Court of Darmstadt opened bankruptcy proceedings against Pinguin Transkalte GmbH on Sept. 10, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pinguin Transkalte GmbH Am Schindberg 10-16 65474 Bischofsheim Germany SPEZIAL STAHL-UND: Claims Registration Period Ends October 28 ------------------------------------------------------------- Creditors of Spezial Stahl-und Metallhandel GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Jens Dohse. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Dec. 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 Rostock Hall 330 Zochstrasse 13 18057 Rostock 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 Dohse Hermannstrasse 5 18055 Rostock Germany The District Court of Rostock opened bankruptcy proceedings against Spezial Stahl-und Metallhandel GmbH on Sept. 16, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Spezial Stahl-und Metallhandel GmbH Siegmar Knorr Hansestrasse 21 Haus 2 18182 Bentwisch Germany TYKO GMBH: Claims Registration Period Ends October 28 ----------------------------------------------------- Creditors of Tyko GmbH have until Oct. 28, 2008, to register their claims with court-appointed insolvency manager Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 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 Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sebastian Henneke Kaiserstrasse 21-23 44135 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Tyko GmbH on Aug. 25, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tyko GmbH Westring 209 44575 Castrop-Rauxel Germany TIEFBAU RITTMEIER: Creditors' Meeting Slated for October 29 ----------------------------------------------------------- The court-appointed insolvency manager for Tiefbau Rittmeier GmbH, Christian Koehler-Ma will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:25 a.m. on Oct. 29, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 8:55 a.m. on Jan. 28, 2009, at the same venue. Creditors have until Oct. 29, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Christian Koehler-Ma Kurfuerstendamm 26a 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Tiefbau Rittmeier GmbH on Sept. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tiefbau Rittmeier GmbH Strasse 58 Nr. 24 13125 Berlin Germany SVC CATERING: Creditors' Meeting Slated for October 29 ------------------------------------------------------ The court-appointed insolvency manager for SVC Catering GmbH, Christoph Rosenmueller will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:20 a.m. on Oct. 29, 2008. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:00 a.m. on Jan. 28, 2009, at the same venue. Creditors have until Nov. 29, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Christoph Rosenmueller Berliner Str. 117 10713 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against SVC Catering GmbH on Sept. 18, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SVC Catering GmbH Damm 2-4 Willestr. 7b 12623 Berlin Germany WSW ELASTOMERTECHNIK: Claims Registration Period Ends Oct. 29 ------------------------------------------------------------- Creditors of WSW Elastomertechnik GmbH have until Oct. 29, 2008, to register their claims with court-appointed insolvency manager Dr. Lucas F. Floether. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 26, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 145 Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Lucas F. Floether Specks Hof Eingang C Nikolaistrasse 3-5 04109 Leipzig Germany Tel: 0341/652200 Fax: O341/65220111 The District Court of Leipzig opened bankruptcy proceedings against WSW Elastomertechnik GmbH on Sept. 11, 2008. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WSW Elastomertechnik GmbH Attn: Roland Winkler, Manager Parkplatz 2 04579 Espenhain OT Moelbis Germany ============= H U N G A R Y ============= PROPEX INC: Has Until October 29 to File Reorganizational Plan -------------------------------------------------------------- Judge John C. Cook of the United States Bankruptcy Court for the Eastern District of Tennessee extended the period by which Propex, Inc., and its debtor-affiliates have (i) the exclusive right to file a plan of reorganization through Oct. 29, 2008, and (ii) the exclusive right to solicit acceptances of that plan through Dec. 29, 2008. The Debtors was previously given by the Court until Oct. 20, 2008, to file a Chapter 11 plan, and until Dec. 19, 2008, to solicit acceptances of that plan. The Debtors relate that they have engaged in extensive negotiations with their secured lenders and are finalizing the terms of consensual treatment for the secured term and revolver debt in a plan of reorganization. The Debtors note that the nine-day exclusive period extension order will allow them additional time to continue those negotiations. The Debtors' DIP Lenders have agreed to modify the DIP financing documents to allow the Debtors to propose a Chapter 11 plan through October 29, according to Mark. W. Wege, Esq., at King & Spalding, LLP, in Houston, Texas. To note, the Court-approved DIP Credit Agreement was entered into by the Debtors with BNP Paribas, as administrative agent, and certain other lenders in 2006. The Debtors relate that they have complied with the submission of a comprehensive plan to the DIP lenders and the Official Committee of Unsecured Creditors under the DIP Credit Agreement. Before the Court entered the latest Exclusivity Order, the Creditors Committee filed an objection to the Debtors' extension request. On the Committee's behalf, Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, asserted that the third exclusivity request is the least substantive exclusivity motion filed by the Debtors. "[T]he Motion does not explain why no plan of reorganization has been filed during the nine months of exclusivity the Debtors already have had or why an extension of the Exclusive Periods is in the best interests of the estates and their creditors," he contended. The Committee also noted that the extension request contradicts prior statements made by the Debtors at the August 20th hearing wherein they said they were prepared in the next 60 days to file a plan. The Committee added that the Debtors refused to respond to its repeated requests to be included in plan negotiations and discussions. The Debtors, Mr. Dizengoff argued, are not permitted to use the exclusivity as a tactical device to pressure parties to consent to a plan they consider unsatisfactory. He pointed out that if granted, the exclusivity request will effectively force other parties-in-interest to continue to sit on the sidelines while the Debtors secretly formulate a plan of reorganization with their secured lenders that provides little if any recovery to unsecured creditors. Thus, the Committee urged the Court to deny the exclusivity request to prevent the Debtors from continuing to improperly use their exclusivity to cram down unsecured creditors, and thereby allow them and their creditor constituencies to negotiate from equal positions. Nevertheless, Judge Cook approved the Debtors' exclusivity request on October 17. The Court retains all jurisdiction related to the Exclusivity Motion. About Propex Inc. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It also produces primary and secondary carpet backing. Propex has manufacturing facilities in Brazil, Mexico, Germany, Hungary and the United Kingdom. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-10249). The Debtors have selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. The Official Committee of Unsecured Creditors have tapped Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld, LLP, in New York, to be its counsel. The Court extended the exclusive plan filing period of the Debtors through Oct. 20, 2008, and their exclusive solicitation period through Dec. 19, 2008. As of June 29, 2008, the Debtors' balance sheet showed total assets of US$562,700,000, and total debts of US$551,700,000. (Propex Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= I R E L A N D ============= DROGHEDA UNITED: High Court Agrees to Appoint Examiner ------------------------------------------------------ The High Court has granted Drogheda United Football Club permission to enter into examinership. Ms. Justice Mary Finlay Geoghegan agreed to appoint an examiner, eleven-a-side.com reports. The report relates that the club disclosed it was broke. To cover costs for the rest of the season, the club now only relies on gate receipts. Drogheda United Football Club -- http://www.droghedaunited.ie-- is a registered business name of Hinge Trading Limited, a private company limited by shares. The club is registered in Ireland (reg. number 266933) with its registered office at United Park, Windmill Road, Drogheda. ========= I T A L Y ========= ALITALIA SPA: British Airways Offers Commercial Partnership ----------------------------------------------------------- British Airways PLC is in talks with Compagnia Aerea Italiana s.r.l., a consortium of Italian investors created to save Alitalia SpA, for a potential commercial partnership with the new company being created from the insolvent Italian carrier, BA Chief Executive Willie Walsh told The Wall Street Journal in an interview. As part of its rescue efforts, WSJ says CAI plans to buy Alitalia's newer planes and airport slots and merge them with smaller local rival AirOne SpA to create a new airline. However, because CAI's managers are new to the airline industry, they want one of Europe's top carriers involved in the restructuring process, WSJ relates. BA, according to WSJ, wants to participate in the consolidation but it won't take an equity stake in the new company. Mr. Walsh told WSJ that from BA's experience, investment isn't necessary for a successful commercial partnership. A CAI spokesman meanwhile revealed to WSJ that Air France and Lufthansa better understood CAI's interest in attracting an equity and commercial partner. "Talks with British Airways have so far been limited to a commercial partnership, which falls somewhat short of CAI's overall requirements," the CAI spokesman said. WSJ relates Lufthansa and Air France have both expressed interest in buying a minority stake in CAI. According to WSJ, Mr. Walsh said he met on Wednesday with Rocco Sabelli, the executive who would run the new Italian airline, noting that "[i]f successful, it would definitely be worthwhile...having a relationship with them, but we're not looking to invest." BA Chairman Martin Broughton expects to close the deal by next spring WSJ adds. Delayed Newco Launching As reported in the Troubled Company Reporter-Europe on Oct. 14, 2008, CAI extended the deadline on its conditional offer to relaunch the national carrier until Oct. 31, 2008. CAI had originally given a deadline of October 15 but extended it to give time for CAI to complete due diligence work. A shareholder meeting has been set for October 28 to among others change the company's charter. As reported in the Troubled Company Reporter-Europe on Sept. 30, 2008, CAI is considering launching the new Alitalia by November 1. CAI revived its bid for Alitalia after it reached agreement with all the nine Alitalia unions. CAI's rescue plan calls for renaming of Alitalia and writing off between EUR1.2 billion and EUR2 billion worth of its debt. On Sept. 22, 2008, the TCR-Europe reported that CAI withdrew its bid to buy Alitalia's healthier assets after failing to win the support of labor unions. After CAI's withdrawal, Alitalia proceeded with its fourth public request for offers to buy any or all parts of the company's assets until Sept. 30, 2008. As reported in the TCR-Europe on Oct. 2, 2008, Alitalia Extraordinary Commissioner Augusto Fantozzi said he received several expressions of interest for Alitalia within the terms of the deadline on Sept. 30, 2008. However, only CAI's proposal is directly concerned with the overall activities of air transport. Other expressions of interest meanwhile concerned specific branches or activities of the various companies making up the Alitalia Group. About British Airways Headquartered in Harmondsworth, England, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * British Airways Plc continues to carry a "Ba1" senior unsecured debt rating from Moody's with a stable outlook. About Alitalia Based in Rome, 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, EUR625.6 million in 2006, and EUR494.64 million in 2007. Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi has appointed Augusto Fantozzi as extraordinary commissioner. TISCALI SPA: S&P Cuts Corporate Credit Rating to 'B' ---------------------------------------------------- Standard & Poor's Ratings Services has lowered its long-term corporate credit rating to 'B' from 'B+' on Tiscali SpA, an alternative provider of Internet, telephony, and TV services in the U.K. and Italy. At the same time, S&P lowered its long-term debt ratings on the EUR50 million senior secured term loan and EUR50 million senior secured revolving credit facility (RCF) of financing vehicle Tiscali U.K. Holdings Ltd. to 'B' and 'B+', respectively, from 'B+' and 'BB-'; these loans are guaranteed by Tiscali SpA. The recovery ratings on these two debt facilities are unchanged at respectively '3' (indicating S&P's expectation of meaningful {50%-70%} recovery in the event of a payment default) and '2' (indicating its expectation of substantial {70%-90%} recovery in the event of a payment default). All of the credit ratings remain on CreditWatch with negative implications, where they were placed on Aug. 11, 2008, following Tiscali's reporting of significant underperformance in the second quarter of 2008. "The downgrade reflects confirmation of our earlier concerns -- after analysis of the group's prospects -- that Tiscali's weaker- than-anticipated operating results are causing a marked tightening of the headroom under the maintenance covenants of its two aforementioned facilities, with increasing risks of covenant breach in the next few quarters," said S&P's credit analyst Leandro de Torres Zabala. "If management fails to rapidly take appropriate measures to boost the group's operating performance and/or reduce debt while improving liquidity, we will likely further lower our rating on Tiscali over the next few months." S&P expects to resolve or refresh the CreditWatch status by the end of November or thereabouts. To maintain the current rating, the rating agency expects Tiscali to take prompt action to address this situation through its current strategic review or through negotiations with its main lenders. "If, through its strategic review, Tiscali succeeds in the short term in improving its financial flexibility or in deleveraging, Standard & Poor's will resolve the current CreditWatch listing and likely affirm the corporate credit rating or lower it by one notch, depending on the implications of the strategic review for Tiscali's business and financial profiles," said Mr. de Torres. If the strategic review does not provide any solution in the short term, S&P will evaluate the willingness of the group's main lenders under the senior secured term loan facility (Intesa Sanpaolo SpA) and the RCF (JP Morgan and Intesa) to waive or relax the covenants. "Nevertheless, even if there were reasonable prospects of obtaining covenant waivers over the subsequent few quarters, we would still lower the rating by at least one notch," said Mr. de Torres. "A lack of comfort with respect to Tiscali's capacity to rapidly secure a waiver or to maintain appropriate liquidity would lead to a more pronounced downgrade, by more than two notches." * Moody's Says Italian Gov't. Support Measures Beneficial ---------------------------=----------------------------- Moody's Investors Service commented on the measures introduced by the Italian Government on October 9, 2008, and October 13, 2008, to provide support for the Italian banking system. Moody's noted that to date no Italian bank has looked to the Government for capital or liquidity support. However the rating agency added that, to the extent that these measures reinforce confidence in the Italian banking system, and facilitate continued normal operations, these should prove beneficial. The measures introduced on October 9 include: -- The ability for the Italian government to subscribe capital increases approved by Italian banks, in cases where a bank has been determined by the Bank of Italy to have insufficient capital. This is subject to the bank issuing a three year plan for the bank's recovery, which must be approved by the Government. The Government's stake would be in the form of preference shares having preference with regard to payment of dividends. Any requests for recapitalization will be considered by the Government on a case by case basis. -- The Italian Government guarantees any amounts advanced in the form of repos against eligible assets, by the Bank of Italy, as emergency liquidity support to Italian banks or branches in Italy of foreign banks -- The Italian Government guarantees the Italian deposit guarantee scheme for a three year period commencing on October 9, 2008. This scheme guarantees all deposits up to an amount of EUR103,000. The scheme is not pre-funded and therefore relies on the ability of individual banks to contribute their share of any payments made. These potential obligations are now therefore guaranteed by the Government, for the period of the guarantee. The measures introduced on October 13 include: -- The Italian Government is authorized, until December 31, 2009, to guarantee debt issued after October 13, 2008, by Italian banks, having a term of up to 5 years. Such a guarantee would be provided on market terms. -- The Italian government is authorized, until December 31, 2009, to swap Government bonds for bonds held by banks or bonds issued by banks after October 13, 2008. Such a guarantee would be provided on market terms. -- The Italian government is authorized, until December 31, 2009, to guarantee transactions by banks aimed at obtaining assets eligible for repo at the ECB. Such a guarantee would be provided on market terms. The measures adopted on October 13 are subject to the Bank of Italy's opinion that banks wishing to take advantage of these measures are adequately capitalized and able to meet their obligations under these measures. These measures are also open to banks which might have been recapitalized under the measures introduced on October 9. To date no Italian bank has publicly required government backed recapitalization or has required emergency liquidity support. Accordingly there has not been any quantification of the Government's maximum overall commitment under these measures. With regard to liquidity support, the measures adopted on October 9 simply provide a Government guarantee for existing arrangements in Italy for the Bank of Italy to provide emergency liquidity support, and the existing deposit guarantee arrangements, which have historically been among the most generous in the Eurozone. The measures taken with regard to liquidity support therefore simply demonstrate that the Government is fully backing existing arrangements, so potentially providing reassurance over their effectiveness. This is in contrast to measures taken in some other countries, where there has been a comprehensive guarantee of all bank deposits, and even of the senior and subordinated debt obligations of some or all or some of a country's banks. The measures adopted on October 13 additionally ensure that banks are able to issue guaranteed debt in case of need to refinance maturing debt, and ensure that banks are able to gain access to high quality collateral in the form of government bonds, eligible for repo at the ECB. With regard to bond issues guaranteed by the Government, it is possible that these could be rated at the same level as the Italian sovereign rating, upon review of the terms of the guarantee. For all the above measures it will be necessary to evaluate the detailed rules for their implementation when released. Moody's said that it continues to have a stable outlook for the Italian banking system, which has very limited direct exposure to the ongoing credit crisis affecting global banking systems, and has so far continued to operate relatively normally. While no Italian bank has to date required capital or emergency liquidity support from the Government, Moody's said that it viewed positively the decision to put in place support mechanisms on a pre-emptive basis, in case any need should arise going forward. =================== K A Z A K H S T A N =================== ALKO-BASIS LLP: Creditors Must File Claims by November 28 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Alko-Basis insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Chkalov Str. 142 Kokshetau Akmola Kazakhstan ALMATY CLINING: Claims Deadline Slated for November 28 ------------------------------------------------------ LLP Company Almaty Clining has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Company Almaty Clining Abai ave. 75-36 Almaty Kazakhstan BUILDING TIER LLP: Claims Filing Period Ends November 28 -------------------------------------------------------- LLP Building Tier has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Building Tier Esentaiskaya Str. 20 Almaty Kazakhstan JAISAN LLP: Creditors' Claims Due on November 28 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube has declared LLP Jaisan insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan JANA-ARKA LLP: Claims Registration Ends November 28 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Jana-Arka insolvent on Sept. 3, 2008. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Almagul, 14-16 Almaty Kazakhstan Tel: 8 701 232 12-75 JANAR LLP: Creditors Must File Claims by November 28 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Janar insolvent on Sept. 3, 2008. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Almaty Micro District Orbita-4, 11-236 Almaty Kazakhstan Tel: 8 701 799 60-01 METALL PROM: Claims Deadline Slated for November 28 --------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Metall Prom insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Kazakhstan MUNAI-SAUDA-2008 LLP: Claims Filing Period Ends November 28 ----------------------------------------------------------- LLP Munai-Sauda-2008 has declared liquidation. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: LLP Munai-Sauda-2008 Temirjol Str. 9 Lenger Tolebyisky 161100, South Kazakhstan Kazakhstan ZLAT-AGRO LLP: Creditors' Claims Due on November 28 --------------------------------------------------- The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Zlat-agro insolvent. Creditors have until Nov. 28, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== ISKRA-ENERGO LLC: Creditors Must File Claims by November 26 ----------------------------------------------------------- LLC Iskra-Energo (INN 00512200610034) has shut down. Creditors have until Nov. 26, 2008, to submit written proofs of claim to: LLC Iskra-Energo Masaliyev Ave. 38 Osh Kyrgyzstan Inquiries can be addressed to (+996 3222) 5-70-38. MRAMORNY-2 LLC: Creditors' Meeting Slated for October 27 -------------------------------------------------------- Creditors of LLC Mramorny-2 will convene at 10:00 a.m. on Oct. 27, 2008, at: Room 106 Moskovskaya Str. 151 Bishkek Kyrgyzstan The Inter-District Court of Chui Region for Economic Issues declared LLC Mramorny-2 (Case No. ED-709/06-??-C1) insolvent on Dec. 2, 2006. Subsequently, bankruptcy proceedings were introduced at the company. Toktosun Ermegaliyev has been appointed temporary insolvency manager. Creditors must submit their proofs of claim and to be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. Inquiries can be addressed to (+996 312) 61-40-75, 41-20-50 NAP KYRGYZSTAN: Assets Sale Slated for October 29 ------------------------------------------------- The temporary insolvency manager of OJSC National Carrier Nap Kyrgyzstan Aba Joldoru will hold a repeat auction of the company's bankruptcy enterprise properties at 10:00 a.m. on Oct. 29, 2008, at: Airport Manas Bishkek Kyrgyzstan Interested bidders must deposit guarantee payment equivalent to 10% from the starting price of the lot to the cashier of the enterprise. Participants have until 5:00 p.m. on Oct. 28, 2008, to submit their bids at: Ahunbaev Str. 184 Bishkek Kyrgyzstan Inquiries can be addressed to (+996 312) 54-80-73, 54-80-68, 54-77-50, (0-555) 38-09-41, (0-555) 77-38-33, (0-772) 54-88-44. ===================== N E T H E R L A N D S ===================== NXP BV: Cash Position Improves Following ST-NXP Joint Venture ------------------------------------------------------------- NXP Semiconductors announced third quarter sales in line with expectations of US$1,336 million, a comparable decrease of 4.2% on the third quarter of 2007 and a comparable increase of 1.0% over the second quarter of 2008. Adjusted EBITDA improved sequentially in the third quarter to US$147 million, down from US$310 million in the third quarter of 2007 and up from US$114 million in the second quarter of 2008. Adjusted EBITA showed a profit of US$15 million this quarter compared to a profit of US$136 million in the same period last year and a loss of US$29 million in the previous quarter. Notwithstanding the difficult conditions, benefits from cash management actions taken can already be seen in lower inventory as a percentage of sales and lower capex, both of which have contributed to a positive net operational cash flow of US$107 million. The cash position improved to US$1,535 million, largely as a result of the closing of the ST-NXP Wireless joint venture and includes the repayment of the revolving credit facility and the acquisition of Conexant STB business. In September 2008 NXP Semiconductors announced a large redesign program targeted at reducing its annual cost base by US$550 million through major reductions of the manufacturing base, rightsizing of central R&D, and reduction of support functions in order to improve the company's financial strength, as well as to position NXP for future growth in its core businesses. Meanwhile significant progress has been made in detailing the redesign program and deploying the measures in the organization, for which US$500 million has been provided for in the third quarter. As part of the annual impairment test based on US GAAP, the company has taken into account the current market environment, the divestiture of the wireless business and the implementation of the redesign program. The impairment test resulted in the write-down of goodwill and intangibles of US$706 million. Furthermore, a write-down of deferred tax assets of US$254 million was recorded in the third quarter of 2008. Frans van Houten, President and CEO of NXP Semiconductors, commented: "Our sales for the Q3 period were broadly in line with guidance. The financial crisis and semiconductor market conditions have caused a rapid deterioration of demand towards the end of the third quarter, especially in the automotive and consumer sectors. We are convinced of the necessity to act decisively and to lower our cost base in order to be prepared for a difficult market. Our redesign program announcement of September 12 to reduce our annual cost base by US$550 million is timely, given the developments in the market." "We are strongly focused on our customers and see opportunities to sell our products to a wider customer base. In this context we are pleased to note that we have made inroads with new customers like HuaWei in China, as a supplier of chips for their telecom infrastructure. Also the Home unit made progress in digital TV driven by Japanese and European customers." "I am confident that our focus on cost management, the prudent approach to cash management, and the rapid execution of our redesign plans will help ensure resilience through the cycle and create a stronger NXP, positioned for future growth." Outlook: Visibility of sales development going forward is limited. As a consequence of deteriorating macro-economic conditions in combination with the overall consumer sentiment and recent order book development, we expect an 8 to14% sequential sales decline in the fourth quarter on a business and currency comparable basis. Headquartered in Eindhoven, Netherlands, NXP B.V. -- http://www.nxp.com/-- creates semiconductors, system solutions and software that deliver better sensory experiences in TVs, set-top boxes, identification applications, mobile phones, cars and a wide range of other electronic devices. The company has 31,000 employees working in more than 20 countries and posted sales of US$6.3 billion (including the Mobile & Personal business) in 2007. * * * As reported in the TCR-Europe on Oct. 6, 2008, Oct 06, 2008 Standard & Poor's Ratings Services has affirmed its 'B-' long-term corporate credit rating on Dutch semiconductor company NXP B.V. The outlook is negative. The ratings on NXP's secured notes were lowered to 'B-' from 'B' and the recovery ratings were revised to '3' from '2', reflecting S&P's view that a higher than initially expected portion of value in a default scenario could be shared with unsecured debtholders. A recovery rating of '3' indicates S&P's expectation of meaningful (50%-70%) recovery for secured lenders in the event of a payment default. At the same time, the corporate credit rating and all issue ratings on NXP and guaranteed subsidiary NXP Funding LLC were removed from CreditWatch negative, where they had been placed on July 25, 2008, after the company released its second-quarter 2008 results. On Sept. 2, 2008, the TCR-Europe reported that Moody's Investors Service downgraded NXP Semiconductors' corporate family rating to B3 from B2, its senior secured notes to B3 from B2 and senior unsecured notes to Caa2 from Caa1 upon conclusion of its rating review initiated on July 23, 2008. The outlook for the ratings is stable. NXP BV: S&P Says Ratings Unaffected by Third-Quarter Results ------------------------------------------------------------ Standard & Poor's Ratings Services said that the ratings on Dutch semiconductor manufacturer NXP B.V. (B-/Negative/--) are unchanged after it reported its third-quarter results. The group announced a cash position of US$1.535 billion (including US$1.277 billion in the guarantor group) after the August 2008 closing of the disposal of its wireless chip business (providing net proceeds of US$1.271 billion), the acquisition of a set-top box business for US$108 million, and the full repayment of drawings under its US$450 million revolving credit facility. The revolving credit facility, which matures in 2012 and is not subject to maintenance financial covenants, is now entirely undrawn and S&P expects it to remain fully available to the group. NXP stopped its cash burn in the third quarter, helped by favorable working capital developments and lower capital expenditures. In S&P's view, the US$960 million in asset impairments and write-downs (goodwill and deferred taxes) booked in the third quarter do not have a bearing on the ratings at this point. The impairment merely reflects the lower cash flow and earnings prospects in some of NXP's cash-generating units, which had factored into ratings -- that S&P recently lowered and for which it revised the outlook to negative. The operating prospects remain bleak for the next few quarters and NXP expects a quarter- on-quarter comparable sales decline of 8%-14% in fourth-quarter 2008. TRADER CLASSIFIED: Shareholders Approve Liquidation --------------------------------------------------- Shareholders of Trader Classified Media N.V. has approved to put the company into liquidation during an Extraordinary General Meeting held on Oct. 16, 2008, euronext.com reports. According to the report, the Management Board and Directors have resigned and transferred control of the company to the liquidator. The company's shares will be suspended from trading on Dec. 8, 2008, the report discloses. On Dec. 16, 2008, the company's shares are expected to be delisted from Euronext's Eurolist, the report relates. =========== P O L A N D =========== * POLAND: Records 319 Business Insolvency Cases ----------------------------------------------- The number of Polish companies going bankrupt over the last three quarters stood at 319, Konrad Kiedrzynski writes for the Warsaw Business Journal, citing a Euler Hermes report on insolvencies. According to the report, most insolvencies were declared by companies registered in the Mazowieckie voivodship with 76 cases, Silesia with 50 cases, and Lower Silesia with 40 cases. Industries most affected, include the food, clothing and construction-materials, the report notes. The production sector, the report discloses, saw the biggest number of insolvencies with 113 companies going bust followed by the building contractors sector with a total of 55 insolvencies. According to the report, there were 91 cases of companies' insolvencies in the construction sector. However, Tomasz Starus, the head of the risk assessment department at Euler Hermes, said that while the construction market could possibly see a revival in the fall, driven by an increase in infrastructural investments, a slow decision-making process continues to hinder development in the sector, the report relates. Mr. Starus also warned against too much optimism, saying although the first three quarters of the year have seen 34 fewer insolvencies than the same period of 2007,"the bankruptcy indicator is long-term in nature. That's why it always has to be compared with the actual signals from the market," the report adds. =========== R U S S I A =========== BRATSKIY JOINERY: Irkutsk Bankruptcy Hearing Set Aug. 12, 2009 -------------------------------------------------------------- The Arbitration Court of Irkutskaya will convene at 10:30 a.m. on Aug. 12, 2009, to hear bankruptcy proceedings on OJSC Bratskiy Joinery Plant (TIN 3805102385). The case is docketed under Case No. A19�1610/08�60. The Court is located at: The Arbitration Court of Irkutskaya Office 305 Gagarina Blv. 70 664025 Irkutsk Russia The Insolvency Manger is: A. Ilyin Post User Box 1779 665732 Bratsk-32 Irkutskaya Russia The Debtor can be reached at: OJSC Bratskiy Joinery Plant Post User Box 62 Gidrostroitel 665703 Bratsk Irkutskaya Russia FIN-SERVICE LLC: St. Petersburg Court Hearing Set Jan 19, 2009 -------------------------------------------------------------- The Arbitration Court of St. Petersburg will convene at 10:10 a.m. on Jan. 19, 2009, to hear bankruptcy supervision procedure on LLC Fin-Service. The case is docketed under Case No. A56-23586/2008. The Temporary Insolvency Manager is: D. Satyukov Post User Box 67 191023 St. Petersburg Russia The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: LLC Fin-Service Room 2H Liter A Olminskogo Str. 12 192029 St. Petersburg Russia FIRST OIL : Creditors Must File Claims by December 10 ----------------------------------------------------- Creditors of LLC First Oil Company have until Dec 10, 2008 to submit proofs of claims to: V. Izhendeyev Insolvency Manager Sovetskaya Str.1 Tyunda 676290Amurskaya Russia The Arbitration Court of Amurskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A04�1229/08�12/101B. INVESTBANK: S&P Assigns 'ruBB' Russian National Scale Rating ------------------------------------------------------------ Standard & Poor's Ratings Services has assigned its 'ruBB' Russian national scale rating to Russia-based INVESTBANK. "The rating reflects the challenges INVESTBANK is facing relating to consolidation and reorganization after the recent merger," explained S&P's credit analyst Eugene Tarzimanov. "It also reflects the bank's limited customer franchise, moderate profitability, and weak and concentrated funding base." The bank's adequate single-name lending concentrations and capitalization somewhat offset these negative factors. The rating is based on INVESTBANK's stand-alone creditworthiness and does not factor in any expected external support from the shareholders or the government. INVESTBANK is majority-owned by Vladimir Antonov, a Russian entrepreneur. Mr. Antonov is also a majority shareholder of the fourth-largest bank in Lithuania, Bankas Snoras (Snoras, BB- /Negative/B), which is his largest asset. Although cooperation between INVESTBANK and Snoras is limited, the former benefits from good access to Snoras's deposits. This liquidity support is crucial for INVESTBANK in the current crisis in the Russian financial market. Although INVESTBANK has a relatively limited customer franchise, its loans are adequately diversified, with the 20 largest borrowers accounting for 136% of adjusted total equity as of June 30, 2008. The bank's moderate financial performance is balanced by its adequate capitalization. "There appears to be limited opportunity for an upgrade, at least until the Russian financial market stabilizes," Mr. Tarzimanov added. "We could lower the ratings if the bank's financial profile -- including its liquidity or capitalization -- deteriorate significantly." Located in Kaliningrad, INVESTBANK is a midsize Russian bank servicing midsize corporations that are active mainly in trade, construction, and manufacturing. As of June 30, 2008, it had consolidated assets of 23.7 billion Russian rubles (US$1 billion), placing it among the 100 largest Russian banks. MOBILE TELESYSTEMS: To Place RUR10 Billion Bond Today ----------------------------------------------------- Mobile TeleSystems OJSC plans to place its second RUR10 billion bond with maturity in 2013 today, Oct. 23, 2008. The coupons are to be paid semiannually. The debut rouble bond with maturity in 2018 and a two-year put option was successfully placed on June 24, 2008. Lead Arrangers of the bond are Gazprombank, Raiffeisenbank, Sberbank and Troika Dialog. Funds raised through the placement will be used for general corporate needs. About Mobile TeleSystems Based in Moscow, OJSC Mobile TeleSystems -- http://www.mtsgsm.com/ -- provides wireless telecommunications services operator in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia, and Belarus. * * * Mobile TeleSystems continues to carry a Long-term Issuer Default rating of 'BB+', a National Long-term rating of 'AA(rus)' and a Short-term IDR of B from Fitch Ratings, with stable outlook. The ratings were assigned in April 2008. Mobile TeleSystems also carries Ba2 Corporate Family and Probability-of-Default ratings from Moody's Investors Service with positive outlook. OMSKIY CEREAL: Omsk Bankruptcy Hearing Set Jan. 13, 2009 -------------------------------------------------------- The Arbitration Court of Omsk will convene on Jan. 13, 2009, to hear bankruptcy supervision procedure on LLC Omskiy Cereal Plant. The case is docketed under Case No. A46�11827/2008 . The Temporary Insolvency Manager is: B. Kamakin Post User Box 9270 644029 Omsk Russia The Debtor can be reached at: LLC Omskiy Cereal Plant Suvorova Str. 1a Omsk Russia RUBTSOVSKIY COLD: Altayskiy Bankruptcy Hearing Set December 22 -------------------------------------------------------------- The Arbitration Court of Altayskiy will convene on Dec. 22, 2008, to hear bankruptcy supervision procedure on LLC Rubtsovskiy Cold Storage Facility. The case is docketed under Case No. A03- 6760/2008B . The Temporary Insolvency Manager is: Yu. Remizov Kirova Str. 118 454091 Chelyabinsk Russia The Debtor can be reached at: LLC Rubtsovskiy Cold Storage Facility Orositelnaya str. 225 Rubtsovsk 658919 Altayskiy Russia UNDO-LES LLC: Arkhangelsk Bankruptcy Hearing Set Jan. 20, 2009 -------------------------------------------------------------- The Arbitration Court of Arkhangelsk will convene at 2:00 p.m. on Jan. 20, 2009, to hear bankruptcy supervision procedure on LLC Undo-Les. The case is docketed under Case No. A05-7357/2008. The Temporary Insolvency Manager is: S. Malanin Vidanskaya Str. 15v Petrozavodsk Russia The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Russia The Debtor can be reached at: LLC Undo-Les Lomonosova Str. 81 Arkhangelsk Russia URAL BANK: Moody's Puts E+ BFSR on Review for Possible Downgrade ---------------------------------------------------------------- Moody's Investors Service has placed on review for downgrade the B3 long-term local and foreign currency deposit ratings and the bank financial strength rating of E+ of Ural Bank for Reconstruction and Development. The bank's Not Prime short-term local and foreign currency deposit ratings were affirmed. Concurrently, Moscow-based Moody's Interfax Rating Agency, which is majority-owned by Moody's, downgraded UBRD's long-term national scale rating (NSR) to Baa3.ru from Baa2.ru and placed it on review for possible further downgrade. According to Moody's and Moody's Interfax, the B3/Not Prime/E+ global scale ratings reflect UBRD's global default and loss expectation, while the Baa3.ru national scale rating reflects the standing of the bank's credit quality relative to its domestic peers. "Today's rating action is triggered by a recent decision of UBRD's management to introduce temporary limits on cash withdrawals by individual depositors, whereby the bank pays out only those deposits that have already matured," explains Olga Ulyanova, a Moody's Assistant Vice President - Analyst. These limits followed the recent mass deposit withdrawals in the Oblast of Sverdlovsk, UBRD's main region of activity. The limitations on early withdrawals of funds by individual depositors are in direct contravention of Russian law, whereby individuals have the right to withdraw funds from their bank accounts at any time throughout the term of a deposit. Therefore, Moody's expects a large number of client claims against UBRD in the near future, as well as a potential deterioration of perception of the bank's services by its retail clientele. Moody's notes that UBRD's liquidity position has been supported by significant deposit from its shareholders, as well as a collateralized loan from Sberbank. However, these efforts may not be sufficient if withdrawals by individual depositors continue or if corporate clients also begin making sizable withdrawals. According to UBRD's management, the limitations on cash withdrawals by individual depositors will soon be removed. "However, Moody's will be closely monitoring any negative developments - in relation to either the financial position of the bank or potential litigation procedures stemming from these events - which may raise potential risks of sizable outflow of client funding from the bank or significant damage to the bank's franchise value in the region," adds Ms. Ulyanova. Moody's previous rating action on UBRD was implemented on January 26, 2007, when the rating agency assigned first-time ratings of B3/NP/E+/Baa2.ru to the bank. Domiciled in Yekaterinburg, Russia, UBRD reported total IFRS assets of US$1.652 billion, total shareholders' equity of US$88 million and a net income of US$13 million as at December 31, 2007. VOLGOGRADSKIY ENGINE: Volgograd Bankruptcy Hearing Set Dec. 25 -------------------------------------------------------------- The Arbitration Court of Volgogradskaya will convene at 11:00 a.m. on Dec. 25, 2008, to hear bankruptcy supervision procedure on OJSC Volgogradskiy Engine Works. The case is docketed under Case No. A12-13054/08-s55. The Temporary Insolvency Manager is: Ye. Slushkin Post User Box 1034 400105 Volgograd Russia The Debtor can be reached at: OJSC Volgogradskiy Engine Works Shosse Aviatorov 8 400048 Volgograd Russia =========== S W E D E N =========== FORD MOTOR: Tracinda's Stake Sale Casts Doubt on Firm's Health -------------------------------------------------------------- Tracinda Corp. has sold 7.3 million shares of the common stock of Ford Motor Co. in the open market for an average price of US$2.43 per share, before commissions. Tracinda said that it will further reduce its 6.43% holdings of Ford Motor common stock, including the possible sale of all of its remaining 133,500,000 shares -- approximately 6.09% of the outstanding shares -- depending upon market conditions and available sales prices, and that it has contacted an investment banking firm regarding the possible sale of the shares. Matthew Dolan and Tamara Audi at The Wall Street Journal report that the sale has raised new concerns about the health of Ford Motor as well as the casino and hotel holdings of billionaire investor Kirk Kerkorian, Tracinda's owner. WSJ relates that Mr. Kerkorian is looking at losing US$640 million of his original US$980 million investment. Citing a person briefed on Mr. Kerkorian's decision, WSJ states that Mr. Kerkorian concluded that there was little chance of making his investment pay off due to the auto industry's bleak outlook, and he was concerned that Ford Motor no longer was giving a target date for returning to profitability. Tracinda said in a statement that it will shift its investments to casinos, hotels, oil, and gas. WSJ states that Mr. Kerkorian used a US$600 million credit line to help finance the Ford stake. Due to the drop in the prices of Ford Motor shares, Mr. Kerkorian had to pledge 50 million more shares of MGM Mirage -- which he controls -- as collateral. Mr. Kerkorian said in a statement that he has put up 100 million of his 149 million MGM Mirage shares to back the credit facility. WSJ relates that Ford Motor shares have lost 65% since Mr. Kerkorian began purchasing them, closing at on Tuesday US$2.17 on New York Stock Exchange trading. A Ford Motor spokesperson said that Tracinda is still "confident in and focused on our plan to transform Ford into a lean global enterprise delivering profitable growth," WSJ reports. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. ===================== S W I T Z E R L A N D ===================== ACN INVESTMENT: Creditors Must File Proofs of Claim by Oct. 31 -------------------------------------------------------------- Creditors owed money by JSC ACN Investment + Consulting are requested to file their proofs of claim by Oct. 31, 2008, to: Oser Heinz Im Kirschgarten 18 4124 Schonenbuch Switzerland The company is currently undergoing liquidation in Schonenbuch. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 3, 2008. CLAR-DENT LLC: Deadline to File Proofs of Claim Set Nov. 3 ---------------------------------------------------------- Creditors owed money by LLC CLAR-DENT in liquidation, Stafa are requested to file their proofs of claim by Nov. 3, 2008, to: Arpad Csordas Haldenstrasse 75 8708 Mannedorf Switzerland The company is currently undergoing liquidation in Stafa. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on July 15, 2008. GENERAL MOTORS: Merger Might Help Ease Union Talks, Analyst Says ---------------------------------------------------------------- A merger between General Motors Corp. and Chrysler LLC would be a high-risk deal, but may give the new company "high leverage" to renegotiate with the United Auto Workers, Tim Higgins and Katie Merx at Free Press (Detroit) report, citing J.P. Morgan analyst Himanshu Patel. Free Press quoted Mr. Patel as saying, "GM desperately needs a reason to renegotiate many parts of its 2007 UAW contract." GM must renegotiate the "VEBA funding level" and wages for core workers, the report states, citing Mr. Patel. Free Press relates that due to the precarious financial positions of Ford Motor Corp., GM, and Chrysler, UAW had agreed to a deal that allows the comanies to pay new hires less money than core workers and to shift billions of dollars of retiree health care spending to VEBA, an independent trust fund. According to the report, the union had agreed to the deal, saying that it had to make a sacrifice to help the industry better compete against foreign automakers that have lower costs from their U.S. workforces. The report says that the VEBA was a way to guarantee retiree health care benefits even if the companies go broke. Jim Millstein, managing director and co-head of Lazard Freres & Co.'s restructuring group, said in court documents, "Chrysler's long-term ability to meet its medical obligations to UAW retirees has deteriorated." According to Free Press, UAW President Ron Gettelfinger has said that he wouldn't agree to further delays in the VEBA payments. Free Press states that the union already agreed to let GM delay US$1.7 billion in payments to the VEBA that had been scheduled for 2008 and 2009. Mr. Gettelfinger said he is against a Chrysler-GM merger that results in more job losses, the report says. A Wall Street analyst said that GM could "win enough goodwill to extract further savings from the UAW," if the company is seen as saving Chrysler from bankruptcy and preserving jobs and benefits, Free Press states. Free Press relates that Harley Shaiken, a union expert from University of California-Berkeley, said, "After closing X-number of plants, eliminating say 30,000 to 50,000 jobs, my sense is that the UAW might not be in the best of moods to give further concessions." Free Press quoted Mr. Patel as saying, "By saving Chrysler from a liquidity event, GM may also be able to get itself much-needed secured bank financing from the same banks that are currently holding Chrysler debt." Bankruptcy May Resolve Contract Problem With Union Free Press relates that Peter Morici -- a University of Maryland business professor and former chief economist at the U.S. International Trade Commission -- said that Chrysler should be allowed to file for bankruptcy. According to court filings by the UAW, a financial analysis made before the economic crisis indicates an up to 50% chance of a Chrysler insolvency by 2013. "The simple fact is that the best solution for Chrysler is Chapter 11 to remove the burdens of the UAW contract and scale down the company to something one half to two thirds its current size. That would serve GM's interests, too -- both Ford and GM would benefit from some capacity and cars going off the market," Free Press quoted Mr. Morici as saying. According to Free Press, Mr. Morici said that if GM acquired Chrysler's Jeep brand and minivan program, "GM would still have to pay heavy severance bonuses to workers it laid off streamlining their operations, similar payments would be required to shutter much of Chrysler's unattractive truck and car operations, and GM would still have to fund the union health care fund for retired Chrysler employees." About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. At June 30, 2008, the company's balance sheet showed total assets of US$136.0 billion, total liabilities of US$191.6 billion, and total stockholders' deficit of US$56.9 billion. For the quarter ended June 30, 2008, the company reported a net loss of US$15.4 billion over net sales and revenue of US$38.1 billion, compared to a net income of US$891.0 million over net sales and revenue of US$46.6 billion for the same period last year. HEGE JSC: Creditors Have Until Oct. 30 to File Claims ----------------------------------------------------- Creditors owed money by JSC Hege are requested to file their proofs of claim by Oct. 30, 2008, to: Ruegg Walter Geissmattliweg 6 5610 Wohlen Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on June 19, 2007. HEIDA HOLDING: Proofs of Claim Filing Deadline is Nov. 2 -------------------------------------------------------- Creditors owed money by JSC Heida Holding are requested to file their proofs of claim by Nov. 2, 2008, to: Martin Munchbach Felsenstrasse 46 8832 Wollerau Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 10, 2008. SINTERAS LLC: Creditors' Proofs of Claim Due by Nov. 3 ------------------------------------------------------ Creditors owed money by LLC Sinteras are requested to file their proofs of claim by Nov. 3, 2008, to: Matthias Bachmann Hans Hassig-Strasse 11 5000 Aarau Switzerland The company is currently undergoing liquidation in Oberentfelden. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 8, 2008. WELLNESS MONTAGE: Nov. 5 Set as Deadline to File Claims ------------------------------------------------------- Creditors owed money by LLC Wellness Montage are requested to file their proofs of claim by Nov. 5, 2008, to: Massimo Arnaldi Rothornweg 14 3600 Thun Switzerland The company is currently undergoing liquidation in Heimberg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 26, 2007. WERNER MOSER: Creditors Must File Proofs of Claim by Nov. 5 ----------------------------------------------------------- Creditors owed money by LLC Werner Moser are requested to file their proofs of claim by Nov. 5, 2008, to: Monika Muller Meisenhaus Altenklingen 8560 Marstetten TG. Switzerland The company is currently undergoing liquidation in Bussnang. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Feb. 14, 2007. * Moody's Says Swiss Banks' Ratings Unaffected by Gov't. Measures ----------------------------------------------------------------- Moody's Investors Service said that the measures announced by Switzerland to support its largest banks will not endanger the creditworthiness of the Swiss government nor will they lead to wholesale rating changes in the Swiss banking sector. These conclusions are expanded in two new Moody's Special Comments entitled "Swiss Government's Aaa Ratings Unaffected by Recent Measures to Support Banks" and "Swiss Government's support measures and their relative importance for Swiss banks." Moody's comments are in response to the Swiss government's announcement on October 16, 2008, of a range of measures aimed at strengthening individual banks, notably UBS and Credit Suisse, and the functioning of Switzerland's banking system overall. Specifically, the Swiss government is going to (i) reinforce the deposit insurance system; (ii) transfer illiquid assets from UBS's balance sheets and bolster its capital bases; (iii) raise further the regulatory capital requirements for Credit Suisse and UBS; and (iv) guarantee for all Swiss banks new short- and medium-term inter-bank liabilities as and when necessary. Switzerland's Sovereign Rating "Moody's believes that the Aaa rating of the government of Switzerland can withstand a large-scale support operation for its banks," says Alexander Kockerbeck, Vice President-Senior Credit Officer in Moody's Sovereign Risk Group. This is in line with Moody's view that the ratings of other European governments are not affected by the support measures they have so far announced for their respective banking systems. In the case of Switzerland, Moody's opinion is based on (i) the underlying economic and institutional strength and financial robustness of the Swiss government; (ii) the quality of any bank assets that the government would acquire through the announced support operations, thereby lowering the net increase in government debt; and (iii) the likelihood that such an interpolation of the government balance sheet would better assure an early economic recovery. "Moreover, in the event that the Swiss government is required to mobilize further significant financial resources to help its large banks -- over and above the assistance measures announced today -- Moody's believes that it would most likely still maintain Switzerland's Aaa rating for a number of compelling reasons," explains Mr. Kockerbeck. The reasons are the Swiss government's ability to raise potentially larger amounts of debt through (i) its access to a large pool of domestic savings, in a country with a savings rate equivalent to nearly one-third of GDP; (ii) the Swiss franc's role as an international reserve currency; supporting the country's sterling reputation; and (iii) for short- term liquidity pressures, the Swiss central bank's unlimited swap line with the US Federal Reserve, which provides very precious relief at times when dollar funding is scarce. As detailed below, given the Swiss banks' considerable financial strength, Moody's does not expect a large amount of this contingent liability to migrate to the government's balance sheet. Not only will the government acquire assets in any such operation, implying a relatively small increase in the government's net debt, but those assets could ultimately be sold, shrinking its balance sheet back to close to its original size. Switzerland's Bank Ratings "Moody's believes that the Swiss government's support measures for its large banks are unlikely to lead to wholesale rating changes in the Swiss banking sector, as the banks' current senior unsecured long-term ratings already incorporate a relatively high likelihood of systemic support -- an assumption that has been validated by the proven, actual availability of systemic support," says Guido Versondert, Vice President-Senior Analyst in Moody's Financial Institutions Group. Overall, Moody's views the Swiss government's proposals as a positive development, albeit not strictly necessary for many of the regional and private banks. The rating agency believes that the Swiss government's initiative should strongly contribute to restoring investor confidence in the domestic and international banking systems. Moreover, the rating agency expects that UBS and Credit Suisse are, and will likely remain, the main beneficiaries of the support package announced by the Swiss government. While also potentially benefiting from these announcements, Moody's does not believe that the Raiffeisen Group or any of the regional or private banks which Moody's rates in Switzerland are the key addressees of this announcement, and these will therefore not be subject to any imminent rating implications. "It is crucial for market participants to differentiate between UBS and Credit Suisse and their temporary problems on the one hand, and the Raiffeisen Group and the regional and private banks on the other, which mostly continue to display comparatively moderate business and financial risks and are generally in good health," explains Mr. Versondert. This is because their business and financial characteristics and the degree to which they are affected by the crisis differ significantly: (i) Credit Suisse and UBS with their strong involvement in international capital markets and flows; (ii) the regional banks, including the Raiffeisen Group, and their almost entirely domestic focus; and (iii) the private banks, with their conservatively structured balance sheet and traditional tendency to minimize their credit, market and liquidity risks. ============= U K R A I N E ============= AVIAS LLC: Creditors Must File Claims by October 26 --------------------------------------------------- Creditors of LLC Avias (code EDRPOU 13420293) have until Oct. 26, 2008, to submit proofs of claim to: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy supervision procedure on the company on Sept. 17, 2008. The case is docketed as B 29/189-08. The Debtor can be reached at: LLC Avias Airport 42 49042 Dnipropetrovsk Ukraine BERDICHEV BREADPRODUCTS: Creditors Must File Claims by Oct. 25 -------------------------------------------------------------- Creditors of OJSC Berdichev Breadproducts Enterprise (code EDRPOU 00951540) have until Oct. 25, 2008, to submit proofs of claim to: B. Petrychuk Liquidator/Insolvency Manager Ap. 63 Sverdlov Str. 53 Berdychev Zhytomir Ukraine Tel: 04143-40378 The Economic Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 15, 2008. The case is docketed as 4/113-b. The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: OJSC Berdichev Breadproducts Enterprise Krasny Luch Str. 4 Grishkovtsy Berdichev District 13337 Zhytomir Ukraine COLVIS FINANCE: Moody's Shifts Outlook on B1-Rated Notes to Stable ------------------------------------------------------------------ Moody's Investors Service has changed the outlook on the B1 rating of the notes issued by Colvis Finance Limited's, totaling US$107.5 million and due 2009 which are supported by the state of Ukraine (with underlying borrower Yuzhmash). This change reflects the decision to change the outlook of several key credit ratings of Ukraine from positive to stable. The US$107.5 million notes of Colvis Finance Limited indirectly benefit from an irrevocable and unconditional guarantee from the State of Ukraine. As a consequence of the benefits from the aforementioned guarantee, the notes were assigned the same rating as the rating for the State of Ukraine's foreign currency bonds. Going forward, if the rating for the State of Ukraine is altered, the rating on the notes will be amended accordingly. The issuer of the notes, Colvis Finance Limited, is a UK special purpose vehicle. Colvis Finance Limited has on lent the funds received from its notes issue to State Enterprise Production Association Yuzhny Machine Building Plant Named After A.M. Makarov (Yuzhmash). Registered in the Ukraine, Yuzhmash is a leading rocket manufacturer as well as one of the largest industrial enterprises in the Ukraine. In 2007 reported Revenue of US$174 million and EBITDA negative of US$23 million. COMPLEX V LLC: Creditors Must File Claims by October 26 ------------------------------------------------------- Creditors of LLC Building Complex V (code EDRPOU 34228373) have until Oct. 26, 2008, to submit proofs of claim to: Dmitry Mischenko P.O. Box 4938 49098 Dnepropetrovsk Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 2, 2008. The case is docketed as B 24/282-08. The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Building Complex V Ac. Chekmarev Str. 3 49005 Dnepropetrovsk Ukraine GALITSKY PETROLEUM: Creditors Must File Claims by October 26 ------------------------------------------------------------ Creditors of LLC Galitsky Petroleum Holding (code EDRPOU 31215314) have until Oct. 26, 2008, to submit proofs of claim to: Oleg Viniarsky Liquidator Varshava Str. 66/21 79020 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy supervision procedure on the company on Sept. 9, 2008. The case is docketed as 8/109. The Economic Court of Lvov Lichakivska Str. 81 79010 Lvov Ukraine The Debtor can be reached at: LLC Galitsky Petroleum Holding Buyko Str. 14 79034 Lvov Ukraine IINDUSTRIALTRADE LLC: Creditors Must File Claims by October 26 -------------------------------------------------------------- Creditors of LLC Iindustrialtrade (code EDRPOU 32297780) have until Oct. 26, 2008, to submit proofs of claim to: Yury Karpenko Liquidator/Insolvency Manager P.O. Box 6734 69123 Zaporozhje Ukraine The Economic Court of Zaporozhje commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 8, 2008. The case is docketed as 19/271-08. The Economic Court of Zaporozhje Shaumiana Str. 4 69001 Zaporozhje Ukraine The Debtor can be reached at: LLC Iindustrialtrade Korotky Lane 4 69096 Zaporozhje Ukraine KOLOS LLC: Creditors Must File Claims by October 25 --------------------------------------------------- Creditors of LLC Corporation on Seed Farming and Realization Kolos (code EDRPOU 32021566) have until Oct. 25, 2008, to submit proofs of claim to: Andrew Maksimov Temporary Insolvency Manager P.O. Box 85 01030 Kiev Ukraine The Economic Court of Ternopol commenced bankruptcy supervision procedure on the company on Sept. 1, 2008. The case is docketed as 16/196/08. The Economic Court of Ternopol Ostrozsky Str. 14a 46000 Ternopol Ukraine The Debtor can be reached at: LLC Corporation on Seed Farming and Realization Kolos Yuryampol Borschovsky District 48733 Ternopol Ukraine KREMENETS BREAD: Creditors Must File Claims by October 25 --------------------------------------------------------- Creditors of LLC Kremenets Bread (code EDRPOU 31879714) have until Oct. 25, 2008, to submit proofs of claim to: V. Aleksiuk Liquidator/Insolvency Manager B. Berezhtsy Kremenets District Ternopol Ukraine Tel: 2-50-26 The Economic Court of Ternopol commenced bankruptcy proceedings against the company after finding it insolvent . The Economic Court of Ternopol Ostrozsky Str. 14a 46000 Ternopol Ukraine The Debtor can be reached at: LLC Kremenets Bread Letchikov-Vyzvoliteley Str. 62 Kremenets 47004 Ternopol Ukraine LEVADA LLC: Creditors Must File Claims by October 25 ---------------------------------------------------- Creditors of Levada LLC (code EDRPOU 31716469) have until Oct. 25, 2008, to submit proofs of claim to: Victor Matuschak Temporary Insolvency Manager Ap. 151 G. Skovoroda Str. 14 29000 Hmelnitskiy Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy supervision procedure on the company on Aug. 27, 2008. The case is docketed as 7/170-B. The Economic Court of Hmelnitskij Nezalezhnosti Square 1 29000 Hmelnitskij Ukraine The Debtor can be reached at: Levada LLC Gvardeyskoye Hmelnitskij Ukraine MTSYRI LLC: Creditors Must File Claims by October 26 ---------------------------------------------------- Creditors of LLC Production-Commerce Firm Mtsyri (code EDRPOU 204086677) have until Oct. 26, 2008, to submit proofs of claim to: Vasily Melnik Liquidator/Insolvency Manager Ap. 105 Chapayev Str. 7 10029 Zhytomir Ukraine The Economic Court of Zhytomir commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 12, 2008. The case is docketed as 7/181-b. The Economic Court of Zhytomir Putiatinskiy Square 3/65 10014 Zhytomir Ukraine The Debtor can be reached at: LLC Production-Commerce Firm Mtsyri Naberezhnaya Str. 25 Galchin Andrushevsky District Zhytomir Ukraine NAFTOGAZ NJSC: Moody's Changes Outlook on B1 CFR to Negative ------------------------------------------------------------ Moody's Investors Service has changed the outlook on the B1 foreign currency corporate family rating of NJSC Naftogaz of Ukraine, as well as its US$500 million senior unsecured Loan Participation notes, to Negative from Developing. Naftogaz's Probability of Default rating is affirmed at B1. The rating action follows the recent change of the outlook on Ukraine's key sovereign ratings to stable from positive, as the global liquidity crunch has combined with existing macroeconomic, financial and political challenges, thus diminishing the probability of the upgrade of the sovereign rating in the next 12 to 18 months. Moody's rates Naftogaz in accordance with its rating methodology for Government Related Issuers, thus the current ratings reflect a combination of the following inputs: -- Baseline credit assessment of 17 (on scale of 1-21, where 1 represents lowest credit risk, corresponding to a Caa1 rating); -- B1 local currency rating of the Ukrainian government; -- Medium dependence and -- High support. The change of the outlook on Naftogaz is a reflection of three key factors: (i) significantly diminished probability for the rating to improve as a result of the stabilization of the sovereign rating and the important role the Ukrainian government plays in Naftogaz's operations; (ii) concerns over further possible weakening in Naftogaz's underlying Baseline credit quality over the medium term, and (iii) the critical role that state support will continue to have on the rating beyond 2008. The outlook reflects the current financial standing of Naftogaz and the fact that the company is in breach of the furnishing of information covenant on its US$500 million Eurobond facility, as it failed to release on a timely basis its 2007 accounts. The breach can potentially trigger a cross default under other financing agreements of Naftogaz, for the estimated total value of US$2.4 billion. At the same time Naftogaz's BCA is negatively affected by the company's liquidity position, with an estimated liquidity gap of US$2.0 billion which is currently being funded by trade credits which will in time need to be settled. In Moody's view the probability of Naftogaz being able to get access to debt funding of that scale in the current market environment is low, which puts additional pressure on the company's short-medium term liquidity profile in view of the upcoming bond repayment in September 2009. The rating outlook is also a function of general uncertainties surrounding the longer term future of the company, in view of the on-going political instability in Ukraine, the status of gas price negotiations with Gazprom and the absence of visibility into Naftogaz's operational and financial performance beyond 2008. The absence of information about the company that would allow Moody's to make a definitive assessment relating to Naftogaz's projected operational and financial performance, the uncertainty relating to Naftogaz's future and its positioning in the context of the country's future energy policies as well as some consideration over the rating's reliance on the ability and willingness of the state to provide adequate support, put additional pressure on the company's rating. Further changes to the rating will ultimately be dependent upon further developments in the Ukraine (including those related to the upcoming elections in November 2009) and at the company. Moody's will continue to monitor the company's performance to the extent possible, its compliance with covenants under the bond facility and its liquidity and working capital management, including Naftogaz's ability to attract additional financing and maintain its going concern status. Naftogaz, headquartered in Kiev, Ukraine, is an integrated hydrocarbon company with operations in oil and gas exploration and production, domestic and international transportation, storage and supply. In 2006 the company generated revenue of UAH27.6 billion (app. US$5.52 billion) and operating profit of UAH1.0 billion (app. US$200 million), while net profit was negative at UAH2.2 billion (app. US$440 million). N.A.S.A.-SOUTH: Court Names V. Tcherepenko as Insolvency Manager ---------------------------------------------------------------- The Economic Court of Nikolaev appointed V. Tcherepenko as Insolvency Manager for LLC N.A.S.A.-South (code EDRPOU 33853551). He can be reached at: V. Tcherepenko Moscow Str. 54a 54017 Nikolaev Ukraine Tel: (0512)47-34-64 The Court commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 9, 2008. The case is docketed as 14/284/08. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: LLC N.A.S.A.-South Ap. 33 Lenin Avenue 189 54000 Nikolaev Ukraine NIVA LLC: Creditors Must File Claims by October 26 -------------------------------------------------- Creditors of LLC Niva (code EDRPOU 03272016) have until Oct. 26, 2008, to submit proofs of claim to: Alexander Tereschenko Liquidator/Insolvency Manager Ap. 1 Frunze Str. 113-b 36002 Poltava Ukraine Tel: 8(0532)59-22-88 The Economic Court of Poltava commenced bankruptcy proceedings against the company after finding it insolvent on Aug. 21, 2008. The case is docketed as 20/33. The Economic Court of Poltava Zigin Str. 1 36000 Poltava Ukraine The Debtor can be reached at: LLC Niva Vodianaya Balka Dikansky District Poltava Ukraine NOVABUD LLC: Court Starts Bankruptcy Supervision Procedure ---------------------------------------------------------- The Economic Court of Kiev commenced the bankruptcy supervision procedure on LLC Novabud (code EDRPOU 32597330) on June 9, 2008. The case is docketed as 24/136-b. The Temporary Insolvency Manager is: Oleg Shkliar Ap. 12 Shevchenko Str. 16 10002 Zhytomir Ukraine The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Novabud Artem Str. 103 Kiev Ukraine PRETORIAN-XXI LLC: Court Names A. Komarov as Insolvency Manager --------------------------------------------------------------- The Economic Court of Kiev appointed A. Komarov as Insolvency Manager for LLC Pretorian-XXI (code EDRPOU 35363997). He can be reached at: A. Komarov Makarov Str. 13 Makieyevka Donetsk Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 31, 2008. The case is docketed as 43/556. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Pretorian-XXI Svitletskaya Str. 24-A 04215 Kiev Ukraine ROMSUPPLYCENTER LLC: Creditors Must File Claims by October 25 ------------------------------------------------------------- Creditors of LLC Romsupplycenter (code EDRPOU 34511082) have until Oct. 25, 2008, to submit proofs of claim to: Larisa Timofeeva Liquidator/Insolvency Manager P.O. Box 179 54017 Nikolaev Ukraine Tel: (512)47-89-69 The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent on Sept. 17, 2008. The case is docketed as 5/404/08. The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: LLC Romsupplycenter Ochakov Str. 1-A 54036 Nikolaev Ukraine VIPRODUCT LLC: Court Names A. Finko as Insolvency Manager --------------------------------------------------------- The Economic Court of Kiev appointed A. Finko as Insolvency Manager for LLC Viproduct (code EDRPOU 31985610). He can be reached at: A. Finko Ovrazhnaya Str. 29 Donetsk Ukraine The Court commenced bankruptcy proceedings against the company after finding it insolvent on July 31, 2008. The case is docketed as 43/557. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Viproduct B. 1 40 years of October Str. 120 03127 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== AMERICAN INTERNATIONAL: To Sell Stake in Asian Life-Insurance Biz ----------------------------------------------------------------- American International Group, Inc., will auction a major stake in its American International Assurance Co. unit, Rick Carew at The Wall Street Journal reports, citing people familiar with the matter. According to WSJ, the Asian life-insurance business is valued at more than US$20 billion. Sources said that Goldman Sachs Group, Inc., and Citigroup, Inc., will run the sale, the report states. The sale process is "ramping up" on its planned asset sales generally, the report says, citing an AIG spokesperson. Citing bankers, WSJ states that the price for the stake in American International Assurance could be big, requiring the breakup of the business into smaller pieces to get a deal done. The report says that according to Cazenove Group's calculations, the combined value of AIG's Asian life-insurance assets outside Japan is around US$22.5 billion. WSJ relates that AIG's CEO Edward Liddy wants to attract buyers for a minority strategic stake and keep a majority stake in the business. About American International Based in New York City, American International Group Inc. -- http://www.aig.com/-- (NYSE: AIG) is an international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. The company is engaged through subsidiaries in General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management. The company's British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian HQ is in Hong Kong. AIG owns Ocean Finance, a United Kingdom based company providing home owner loans, mortgages and remortgages. AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsors the Manchester United football club. In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on Sept. 19, 2008, in order to provide an orderly withdrawal of assets. The Federal Reserve Bank of New York has extended to AIG a revolving credit facility up to US$85 billion. AIG's borrowings under the revolving credit facility will bear interest, for each day, at a rate per annum equal to three-month Libor plus 8.50%. The revolving credit facility will have a 24-month term and will be secured by a pledge of assets of AIG and various subsidiaries. The revolving credit facility will contain affirmative and negative covenants, including a covenant to pay down the facility with the proceeds of asset sales. The summary of terms also provides for a 79.9% equity interest in AIG. The corporate approvals and formalities necessary to create this equity interest will depend upon its form. In a statement, the company said "AIG is a solid company with over US$1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues." Standard & Poor's Ratings Services revised the CreditWatch status of most of its ratings on the AIG group of companies -- including its 'A-' long-term counterparty credit ratings on American International Group Inc. and the 'A+' counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries -- to CreditWatch developing from CreditWatch negative. S&P raised its ratings on preferred stock of International Lease Finance Corp. (ILFC; A-/Watch Dev/A-1) to 'BBB' from 'B', and revised the CreditWatch implications to developing from negative. All other ILFC ratings remain on CreditWatch with developing implications. Fitch Ratings revised its Rating Watch on American International Group, Inc. to Evolving from Negative. Fitch viewed this transaction as a favorable development that alleviates significant near-term liquidity concerns. * * * In a U.S. Securities and Exchange Commission filing dated Aug. 6, 2008, AIG reported a net loss for the second quarter of 2008 of US$5.36 billion compared to 2007 second quarter net income of US$4.28 billion. Second quarter 2008 adjusted net loss was US$1.32 billion, compared to adjusted net income of US$4.63 billion for the second quarter of 2007. The continuation of the weak U.S. housing market and disruption in the credit markets, as well as global equity market volatility, had a substantial adverse effect on AIG's results in the second quarter. Net loss for the first six months of 2008 was US$13.16 billion, compared to net income of US$8.41 billion in the first six months of 2007. Adjusted net loss for the first six months of 2008 was US$4.88 billion, compared to adjusted net income of US$9.02 billion in the first six months of 2007. AVALON PACKAGING: Taps Administrators from BDO Story Hayward ------------------------------------------------------------ Messrs: Dermot Power and Matthew Dunham, business restructuring partners at BDO Stoy Hayward were appointed administrators to Avalon Packaging, James Chapelard of Crains Manchester Business reports. Crains quotes Mr. Power as saying, "Avalon Packaging Limited has been established for over 25 years � this is testament to the skill, expertise and reputation it has in the packaging arena. The tough economic climate has played a role in the company's current challenges but the business has strong foundations to weather the difficulties and that's why we're working to sell the business as a going concern � a move that will also protect 100 regional jobs." Based in Martland Park in Wigan, Avalon Packaging supplies plastic containers to food industries. BRITISH AIRWAYS: Offers Commercial Partnership With Alitalia ------------------------------------------------------------ British Airways PLC is in talks with Compagnia Aerea Italiana s.r.l., a consortium of Italian investors created to save Alitalia SpA, for a potential commercial partnership with the new company being created from the insolvent Italian carrier, BA Chief Executive Willie Walsh told The Wall Street Journal in an interview. As part of its rescue efforts, WSJ says CAI plans to buy Alitalia's newer planes and airport slots and merge them with smaller local rival AirOne SpA to create a new airline. However, because CAI's managers are new to the airline industry, they want one of Europe's top carriers involved in the restructuring process, WSJ relates. BA, according to WSJ, wants to participate in the consolidation but it won't take an equity stake in the new company. Mr. Walsh told WSJ that from BA's experience, investment isn't necessary for a successful commercial partnership. A CAI spokesman meanwhile revealed to WSJ that Air France and Lufthansa better understood CAI's interest in attracting an equity and commercial partner. "Talks with British Airways have so far been limited to a commercial partnership, which falls somewhat short of CAI's overall requirements," the CAI spokesman said. WSJ relates Lufthansa and Air France have both expressed interest in buying a minority stake in CAI. According to WSJ, Mr. Walsh said he met on Wednesday with Rocco Sabelli, the executive who would run the new Italian airline, noting that "[i]f successful, it would definitely be worthwhile...having a relationship with them, but we're not looking to invest." BA Chairman Martin Broughton expects to close the deal by next spring WSJ adds. Delayed Newco Launching As reported in the Troubled Company Reporter-Europe on Oct. 14, 2008, CAI extended the deadline on its conditional offer to relaunch the national carrier until Oct. 31, 2008. CAI had originally given a deadline of October 15 but extended it to give time for CAI to complete due diligence work. A shareholder meeting has been set for October 28 to among others change the company's charter. As reported in the Troubled Company Reporter-Europe on Sept. 30, 2008, CAI is considering launching the new Alitalia by November 1. CAI revived its bid for Alitalia after it reached agreement with all the nine Alitalia unions. CAI's rescue plan calls for renaming of Alitalia and writing off between EUR1.2 billion and EUR2 billion worth of its debt. On Sept. 22, 2008, the TCR-Europe reported that CAI withdrew its bid to buy Alitalia's healthier assets after failing to win the support of labor unions. After CAI's withdrawal, Alitalia proceeded with its fourth public request for offers to buy any or all parts of the company's assets until Sept. 30, 2008. As reported in the TCR-Europe on Oct. 2, 2008, Alitalia Extraordinary Commissioner Augusto Fantozzi said he received several expressions of interest for Alitalia within the terms of the deadline on Sept. 30, 2008. However, only CAI's proposal is directly concerned with the overall activities of air transport. Other expressions of interest meanwhile concerned specific branches or activities of the various companies making up the Alitalia Group. About Alitalia Based in Rome, 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, EUR625.6 million in 2006, and EUR494.64 million in 2007. Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed for commencement of extraordinary administration procedure at the Tribunal of Rome. Italian Prime Minister Silvio Berlusconi has appointed Augusto Fantozzi as extraordinary commissioner. About British Airways Headquartered in Harmondsworth, England, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * British Airways Plc continues to carry a "Ba1" senior unsecured debt rating from Moody's with a stable outlook. ELECTRICITY 4 BUSINESS: Goes Into Administration ------------------------------------------------ Stuart Maddison, Mark Shires and Colin Haig of PricewaterhouseCoopers LLP were appointed joint administrators to Electricity 4 Business Ltd on Wednesday, Oct. 22, 2008. E4B is an independent retailer of electricity to small and medium size businesses across the UK and is based in Milton Keynes. The company had built up a portfolio of approximately 40,000 customers and employed 140 people. Stuart Maddison, joint administrator and partner at PricewaterhouseCoopers LLP in the Midlands, commented: "The decision by the directors of E4B to place the company into administration comes as a result of volatility in the energy market." "We will be working closely with OFGEM to ensure an orderly wind down of the company's activities and would like to reassure E4B's customers that the administration will not affect their supply of electricity." About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. ID DATA: Petitions High Court to Appoint Administrators ------------------------------------------------------- ID Data Limited has filed a petition with the High Court to appoint administrators to the company, finextra.com reports. The company said in a statement, "Protection from creditors provided by the notification and potentially by the appointment of an administrator will enhance the possibility of an orderly disposal process reaching a successful conclusion." Peter Cox, CEO and chairman said, "(the administration) is intended to protect the present and future business of ID Data Limited, and to ensure that customers are fully served." The company's shares have been suspended from trading when it failed to complete audit of its accounts for the year ended March 31, 2008, the report concluded. ID Data is based in the United Kingdom. LEEDS LTD: Appoints Joint Administrators from PwC ------------------------------------------------- Ian David Green and Nicholas Edward Reed of PricewaterhouseCoopers LLP were appointed joint administrators of Leeds (Park Row) Ltd. (Company Number 05294452) on Oct. 7, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Leeds (Park Row) Ltd. 2 Brewery Wharf Kendall Street Leeds LS10 1RJ England KAUPTHING SINGER: Williams de Broe to Buy Investment Mgt Team ------------------------------------------------------------- The Evolution Group Plc, the investment bank and private client investment management group, has reached agreement with the administrators of Kaupthing Singer & Friedlander Ltd (in administration) (KSF) and certain subsidiaries of KSF for its subsidiary Williams de Broe Ltd to acquire the investment management team of Singer and Friedlander Investment Management Ltd (Singer and Friedlander). It is intended that the agreement will result in Assets Under Management moving to Williams de Broe's existing platforms with the team located in London. Commenting on this agreement, Alex Snow, Group Chief Executive of Evolution and Chief Executive of Williams de Broe said: "We look forward to welcoming the team from Singer and Friedlander and their existing clients for whom we will continue to provide a professional and bespoke investment management service. "Williams de Broe and Evolution Group Plc remain extremely well capitalized. We have deliberately structured the group to have a strong and highly liquid balance sheet. This combined with no debt supports our aim of becoming a custodian of choice for clients and counterparties during these turbulent market conditions. "This agreement, together with the recent opening of our Edinburgh office, where we continue to see significant inflows of new clients, demonstrates our previously stated commitment to continue to grow Assets Under Management substantially in the medium term." Philip Aldrick at the Daily Telegraph writes Evolution group saw off interest from as many as 40 potential bidders to secure Singer and Friedlander's 40 staff, register of 4,000 clients and GBP1.5 billion of funds under management. However, Evolution, the Daily Telegraph notes, does not expect to retain the whole client list but insiders hope to keep at least GBP1 billion of the assets under management. According to the Daily Telegraph, bankers estimated the price of the deal to be "significantly less than GBP10 million." Analysts, the Daily Telegraph says, believed it was a good deal as fund managers typically trade in the market on 3pc of assets under management, giving Singer and Friedlander a headline value of at least GBP30 million. Meanwhile, the assets, which do not include the brand or the operating company, will be merged with Evolution's own private client business Williams de Broe, the Daily Telegraph states. The combined group, which will continue to trade as Williams de Broe, will have more than GBP4 billion of assets, the Daily Telegraph adds. As reported in the TCR-Europe, upon the application of the Financial Services Authority the High Court of Justice on Oct. 8, 2008, appointed Maggie Mills, Tom Burton, Alan Bloom and Patrick Brazzill, of Ernst & Young LLP, as joint administrators of Kaupthing Singer & Friedlander Ltd. The report said the administration had been necessary because of KSF's financial position and to protect retail depositors and maintain the stability of the UK financial system. About Evolution The Evolution Group Plc is the holding company of Evolution Securities Ltd, Williams De Broe Ltd and Evolution Securities China Ltd. Founded in April 2001 and originally listed on AIM, Evolution joined the Official List in 2003 and now has a market capitalization of over GBP170 million. About Williams de Broe Williams de Broe Ltd is a leading private client investment manager, with offices in Bath, Birmingham, Bournemouth, Edinburgh, Exeter, Guildford and London. It is authorized and regulated by the Financial Services Authority. About Kaupthing Singer & Friedlander Kaupthing Singer & Friedlander is a UK-based banking subsidiary of Iceland's Kaupthing Bank hf. PROTIER HOUSE: Brings in Joint Administrators from PwC ------------------------------------------------------ Ian David Green and Nicholas Edward Reed of PricewaterhouseCoopers LLP were appointed joint administrators of Protier House Developments Ltd. (Company Number 05497984) on Oct. 7, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Protier House Developments Ltd. 2 Brewery Wharf Kendall Street Leeds LS10 1RJ England REALITY BYTES: Appoints Peter Nicholas Wastell as Liquidator ------------------------------------------------------------ Peter Nicholas Wastell of Vantis Business Recovery Services was appointed liquidator of Reality Bytes (London) Ltd. on Oct. 7, 2008, for the creditors' voluntary winding-up procedure. The company can be reached at: Reality Bytes (London) Ltd. c/o Vantis Business Recovery Services Torrington House 47 Holywell Hill St. Albans, Hertfordshire AL1 1HD England SAUNDERS SOLICITORS: Taps Joint Administrators from BDO Stoy ------------------------------------------------------------ Malcolm Cohen and David Gilbert of BDO Stoy Hayward LLP were appointed joint administrators of Saunders Solicitors LLP (Partnership Number OC310649) on Sept. 30, 2008. The company can be reached at: Saunders Solicitors LLP c/o BDO Stoy Hayward LLP 55 Baker Street London W1U 7EU England SCANMOOR RAIL: Calls in Liquidators from Vantis ----------------------------------------------- Nicholas Hugh O'Reilly and Geoffrey Paul Rowley of Vantis were appointed joint liquidators of Scanmoor Rail Ltd. on Oct. 3, 2008, for the creditors' voluntary winding-up proceeding. The company can be reached at: Scanmoor Rail Ltd. c/o Vantis PO Box 2653 66 Wigmore Street London W1A 3RT England SPEED FRAME: Brings in Joint Administrators from BDO Stoy --------------------------------------------------------- Francis Graham Newton and Toby Scott Underwood of BDO Stoy Hayward LLP,were appointed joint administrators of Speed Frame PVCU Windows Ltd. (Company Number 02849552) on Oct. 7, 2008. The company can be reached at: Speed Frame PVCU Windows Ltd. c/o BDO Stoy Hayward LLP 1 Bridgewater Place Water Lane Leeds LS11 5RU England SUREWAY SCAFFOLDING: Taps Deloitte & Touche to Administer Assets ---------------------------------------------------------------- Stephen Anthony John Ramsbottom and Richard Michael Hawes of Deloitte & Touche LLP were appointed joint administrators of Sureway Scaffolding Ltd. (Company Number 0435894) on Oct. 7, 2008. The company can be reached at: Sureway Scaffolding Ltd. c/o Deloitte & Touche LLP 3 Rivergate Temple Quay Bristol BS1 6GD England TATA STEEL: Moody's Changes Outlook on Ba3 Ratings to Negative -------------------------------------------------------------- Moody's Investor's Service has changed the outlook on the Ba3 corporate family and senior secured ratings of Tata Steel UK (and its subsidiary) to negative from stable. Moody's notes that Tata Steel UK's operating performance in the year ending March 2008 remained strong, reflecting the buoyant economic environment as well as strength in the steel markets. Tata Steel UK derives about a third of its revenue in the UK and about 80% in Europe (including UK) and has benefited from the strength in the European construction and automotive sectors that remain its key end-markets. Tata Steel UK has been enjoying strong volumes and supportive pricing environment, offset by record increases in raw materials and energy prices. The aforementioned resulted in a significant working capital outflow in the first half of 2008 and necessitated an equity injection by the parent to ensure continuous compliance with the financial covenants. Moody's expects the company to maintain a degree of flexibility under its financial covenants and sustain its credit profile in the year ending March 2009. The negative outlook reflects the likely compression in the margins over the medium term in view of the likely deterioration in demand in Europe and UK. Moody's will continue to assess the group's ability to maintain its credit profile and sufficient room under the financial covenants in an environment of declining steel prices and/or reduced production volumes. Moody's notes that the Ba3 ratings are supported by the expectation of uninterrupted debt reduction and sound backing by the parent, as well as continuing proactive liquidity and covenant compliance management by the issuer. At the end of June 2008, Tata Steel UK's liquidity position remained strong and was supported by GBP260 million availability under its GBP500 million revolver facilities that form part of the senior secured bank loans raised to fund its acquisition by Tata Steel Ltd in 2007. The facilities are subject to a number of financial covenants. Current assessment of liquidity anticipates a successful extension of the existing securitization facility that matures in 2009. Ratings affected by the rating action are as follows: -- Ba3 Corporate Family Rating of Tata Steel UK Limited; -- Ba3 / LGD 3 (49%) GBP 3.7 billion Senior Secured Guaranteed Bank Facilities. Tata Steel UK, headquartered in the UK, was created through the acquisition of Corus Group plc in 2007 and is the second largest producer in Europe. For the financial year ended March 31, 2008, the group reported GBP11.6 billion in revenues and produced 20 million of tonnes of crude steel. TOM AIKENS: Sold to TA Holdco Ltd. Through Management Buy Out ------------------------------------------------------------- TA Holdco Ltd is now the new owners of Tom Aikens London restaurants. TA Holdco has acquired the restaurants through a management buy-out team, Bloomberg News reports. According to the report, suppliers are still looking for ways to to be paid since the restaurants went into administration on Oct. 17, 2008. * UK Business Confidence Plummets to a Record Low, KMPG Says ------------------------------------------------------------ Confidence amongst British businesses has plummeted to a record low in the wake of the escalating global economic crisis, according to KPMG's quarterly National Business Confidence Survey. Approximately two thirds (60%) of senior executives questioned by Opinion Leader Research on behalf of KPMG now view the prospects for UK Business as either "bad" or "very bad" - compared to only one third who held this view back in May. A further 47 percent of people believe that the UK economy is already in recession, while 86 percent claim that the credit crunch has had a negative impact on their organization. The number of firms considering making job cuts in response to the dire economic climate has also increased over the summer, leaping from 53 percent at the end of Q2 to 62 percent at the end of Q3 2008. Malcolm Edge, head of markets for KPMG in the UK, commented: "The results of our latest Business Barometer are truly the bleakest we've ever seen - and no small wonder. The past month has been one of unprecedented turmoil in the financial markets, with each day bringing yet another extraordinary development that, even in isolation, would have seemed astonishing twelve months ago. This rapid pace of events has undoubtedly spooked British business, leaving many business leaders wondering, 'what next?'" He continued: "Back in May, only one business in ten thought that a full-blown recession was on the cards. Yet three months down the line, almost half of all businesses think that this recession is now upon us. Couple this with the fact that the vast majority believe that the economic outlook will only get worse before it gets better, and it�s hard to see anything other than a gloomy winter ahead for the nation�s businesses." With three quarters (74 percent) of businesses now actively seeking to cut overheads, employments costs are coming under increased scrutiny. A total of 67 percent of firms intend to implement recruitment freezes, while a further 62 percent are considering reducing headcount � up from 53 percent last quarter. However, in spite of this increased threat of job cuts, half the businesses surveyed nevertheless plan to reward their staff with wage increases of between three and ten percent. Malcolm Edge commented: "Back in June, the Chancellor called for restraint over wage demands amidst fears that above-inflation pay rises would exacerbate the problem of rising inflation. However, the majority of businesses recognize that attracting and retaining the best talent is fundamental to keeping one step ahead of the competition � and none more so than during times of economic difficulty. Certainly there is an argument that businesses need the right firepower at hand for when things do start to pick up again � so while management may very well be seeking to make cuts in those areas where there are perceived inefficiencies, they are also intent on rewarding those who help their business weather the storm." Looking at inflationary pressures more closely, 42 percent of businesses did recognize that rising inflation had actively prompted higher wage demands from employees. Other negative impacts of inflation cited by respondents included rising costs (42 percent), reduced profits (34%) and other businesses in the supply chain increasing the costs of their goods and services (32 percent). Malcolm Edge concluded: "There is perhaps another small chink of light in amid all this doom and gloom, in that it appears that many robust businesses around the country are continuing to perform well. For example, more than a third of those questioned in our survey resolutely believe prospects for their own business over the next 12 months to remain good, while only 16 percent claim to have actually experienced any difficulties in obtaining finance over the last 12 months � a figure which is perhaps surprisingly low. It may be the case that such businesses are tapping into existing cash reserves or still drawing pre-arranged credit lines, in which case, their problems may very well lie around the corner. Or it may well be the case that many have prepared well for the downturn and are now simply riding out the storm." About KPMG LLP (UK) KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional services including audit, tax, financial and risk advisory. KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of members firms. As part of KPMG Europe it has merged with its German and Swiss firms, making it the largest integrated accounting firm in Europe. * PwC Says UK Businesses Must Not Rule Out Pension Scheme Buyout ---------------------------------------------------------------- Companies and trustees are being too reactive in taking pension scheme buy-out off the table as a result of market turbulence, according to PricewaterhouseCoopers LLP. Chris Massey, partner, PricewaterhouseCoopers LLP, commented: "Providers and advisers are right to scale back their projections for 2008 and 2009 market growth, but once liquidity is restored to the banking sector the other factors needed for buy-out to be feasible could well fall into place. "While buying-out is clearly not the answer for all pension schemes, it's quite illogical that companies should stop considering it an option at a time when market turbulence has shown many UK businesses are hugely exposed to pension risk." Buying-out is often the final step in a lengthy scheme de-risking process, which might include liability management techniques, extensive data cleansing and changes in investment strategy. While there are a number of ways for schemes to lock in a buy-out price, being ready to act quickly once the right conditions present themselves is critical to securing a cost- efficient deal. Chris Massey, partner, PricewaterhouseCoopers LLP, commented: "Interest rates, inflation, competition in the insurance market and the value of a pension scheme's assets all play a part in creating optimum conditions for buying-out a pension scheme. And since the best conditions seldom last longer than a few days, companies aiming to take advantage of them must be ready to act when the opportunity window is next open." About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. * S&P Says European Bank Measures to Help Stabilize Credit Markets ------------------------------------------------------------------ Standard & Poor's Ratings Services said that the package of measures to support the banking systems announced by various European countries should help in creating some increased stability in the credit markets. S&P considers these measures to be extraordinary government actions, consistent with its view of those likely to be made by supportive countries in times of extreme stress. S&P expects these actions to provide support to financial institution credits that could otherwise have been vulnerable to a gathering crisis of confidence and an associated "credit cliff." However, the measures are unlikely to result in immediate changes to S&P's counterparty credit ratings. Downward rating actions are still possible, reflecting, for example, a future deterioration in asset quality and earnings. S&P lists recent commentaries giving further information on government support at the end of this article. After an uncertain start at their gathering in Paris on Oct. 4, 2008, European leaders reconvened last week following the high volatility seen in the capital markets. Leaders of Eurozone countries met on Oct. 12 and the full 27 members of the EU met on Oct. 15. Although the measures appear somewhat uneven, they appear to amount to a more comprehensive plan of action, and possibly stand a better chance of re-establishing market confidence and reducing the impact of financial market turmoil. While, in theory, a pan-European plan may appear attractive, in reality the large number of member states may make such a plan impractical. Therefore, the EU members have formulated a number of different plans at the national level. In S&P's opinion, so long as these various plans are broadly consistent and coordinated, they should avoid having a further destabilizing effect, at least within the Eurozone. In S&P's opinion, similar actions in other major financial markets, such as the U.S., Switzerland, and Australia, further reduce the risk of unilateral government actions having unintended consequences, such as guarantee schemes favoring one country's banks to the detriment of another's. The various plans have several common themes and appear to broadly follow the U.K. approach, which aims to improve liquidity, funding, and capital. Liquidity Enhanced short-term liquidity: Last week's announced change in the scale of European central banks' provision of liquidity could, in S&P's opinion, be a major step toward addressing the shortage of term liquidity within the banking system and thus help the interbank market move toward normal function. In particular, S&P considers that the unlimited one-month, three-month, and six-month regular term auctions at fixed rates -- which give banks the option of receiving foreign currencies such as U.S. dollars, British pound sterling, or Swiss francs (CHF) -- should allow central banks to mitigate the absence of institutional investors. In addition, the Bank of Italy has said that it will exchange up to EUR40 billion in certain bank assets for treasury bills, and a Spanish program would purchase certain higher quality assets outright. Term Funding In S&P's view, the provision of wholesale guarantees is a substantial measure toward restarting the issuance of medium and long-term debt in the markets and addressing banks' current overreliance on short-term funding. S&P considered that the persistent lack of access to medium and long-term funding was becoming a serious source of imbalance, creating additional vulnerability for the banking system. Up to EUR400 billion of guarantees for senior funding has been made available for German banks, EUR200 billion for Dutch banks, and EUR100 billion for Spanish banks. S&P understands that the French government will create a fund of up to EUR320 billion that will lend for up to five years against many types of illiquid collateral, including most types of loan held on French banks' balance sheets. This fund benefits from a state guarantee and will issue notes to finance the illiquid loans. These guarantees will typically require payment of a fee and some are subject to minimum capital ratios. The Swiss government has also said that it is prepared to guarantee new short and medium- term interbank liabilities, if necessary. S&P expects to rate debt issues benefiting from timely guarantees in line with the ratings on the guarantor. Capital Provision S&P understands that funds are also being made available to invest in banks' regulatory capital. The French fund provides up to EUR40 billion for this purpose, in addition to the acquisition of a stake in the Dexia group that it made in conjunction with the Belgian and Luxembourg governments in September. So far, the French state has announced subscriptions to EUR10.5 billion of Tier 1 hybrid capital. The aim is, however, to provide sufficient capital to underpin the continued flow of credit to consumers and businesses, rather than to establish a new, higher level of capitalization. The rating agency understands that the Spanish and Dutch governments intend to follow suit, and are seeking authorization to purchase equity stakes in banks. In Germany, the government may be able to acquire up to 33% of a private bank's share capital without shareholder approval or provide other forms of Tier 1 and Tier 2 capital. The Swiss Confederation has invested CHF6 billion in UBS AG. In general, however, continental European countries appear reluctant to inject equity capital and view this as a last resort. In contrast, the U.K. government, although initially intending to subscribe to preference shares, quickly moved to favor equity investment as a means of reinforcing core capital ratios. Other Measures In addition, S&P understands that some governments, notably Switzerland and Germany, are establishing asset purchase programs. The Swiss plan relieves UBS of up to CHF60 billion of assets, mainly related to U.S. mortgages. The German proposal to purchase certain assets appears to be an alternative to recapitalization, rather than a supplementary measure. More broadly, and in line with S&P's general expectations, most governments have made explicit statements that they would not allow systemically important banks to collapse. The proposal to increase the EU-wide minimum deposit guarantee to EUR100,000 should, in S&P's opinion, also help stabilize retail funding. S&P believes that the combination of these actions could allow a gradual improvement in funding conditions -- although clearly this has yet to occur and may take some time. That said, S&P notes that some of the details of the plans remain unclear and could lack the forcefulness of the U.K. approach. Banks do not appear to be compelled to increase their capital ratios, and capital on offer is primarily in hybrid form. Therefore, S&P sees the capital element of the packages as helpful but less transformational: unless banks are in considerable difficulties and ready to accept substantial sacrifices in terms of executive compensation, ordinary share dividends, or even their respective business models, access to capital may, in S&P's opinion, not be granted or may be limited to a weaker hybrid form. The agency's believes that market confidence is clearly dependent on the sense that banks are working through the downturn with a large enough cushion of core capital, above the relevant regulatory minimums. Banks may fear a general stigma associated with their accepting government support, raising capital, or even purchasing guarantees. Banks (and the market) may view these measures as an indication of weakness, inhibiting lower- capitalized banks from addressing their weaknesses ahead of a recession. This, in turn, could delay or prevent the return of market confidence regarding banks' ability to withstand a potentially severe downturn. By contrast, the U.K. approach aimed to restore confidence by calibrating capitalization to a level where banks would remain well capitalized even after absorbing an extreme stress test. In S&P's view, continental governments appear to be adopting a systemwide approach to funding problems, and a case-by-case approach to capital. Furthermore, some of the guarantees appeared initially to be costly compared to others. In the U.K., the cost of funding guarantees is determined by the average credit default swap spread over the past 12 months, plus a premium of 50 basis points (bps). For example, The Royal Bank of Scotland PLC has estimated its guarantee premium to be roughly 130 bps, and estimates for other major banks could be lower. If costs are set at a level too punitive to be attractive to banks, save those requiring it most, this would further increase the risk of stigmatizing these banks, potentially leading to competitive imbalances. In S&P's view, with any series of state interventions of this complexity comes the need for compliance with EU law, in particular the proscriptions against state aid. The European Commission envisages that government support should be limited in duration (likely two years, but with reviews every six months) and scope. Eligibility for support may not be based on nationality, and banks will need to pay adequate remuneration in return for support. S&P notes that banks may also be subject to restrictions, for example, caps on their lending activities. Banks benefitting from support beyond a certain time frame would likely be required to provide a restructuring plan in line with the regulations on state aid. In any case, the EC will likely take into consideration how competition is distorted to the detriment of banks not needing support and will likely also distinguish between beneficiaries that are fundamentally sound but affected by the systemic crisis, and those who may be affected by structural issues such as Hypo Real Estate Bank AG or perhaps certain Landesbanks. The latter will fall under the usual state aid rules and will be subject to compensatory measures. Overall, however, S&P believes that in the current extraordinary environment these measures may do much to re-establish confidence. While it does not anticipate a rapid return to market stability, S&P believes that by seeking to address short-term liquidity issues, medium-term funding problems, and concerns over capital adequacy, market participants are likely to gradually recover confidence. S&P therefore expects the recent extraordinary government actions to provide support to affected credits that could otherwise have been vulnerable to a gathering crisis of confidence and an associated "credit cliff," that is, sudden and severe ratings downgrades. S&P also believes that these actions could remove certain factors causing incremental deterioration in banks' creditworthiness and slow the potential trend toward downgrades in bank ratings triggered by a gathering economic slowdown. Nevertheless, these government actions are unlikely to result in immediate changes to S&P's counterparty credit ratings on European banks. Downward rating actions are still possible, reflecting, for example, a future deterioration in asset quality and earnings, although in general S&P expects the extraordinary support being provided to limit such actions. * S&P Reports Slow Economy to Pressure European Chemical Companies ------------------------------------------------------------------ Deterioration in macroeconomic conditions over the past few months looks likely to put pressure on the earnings of European and Middle Eastern chemical companies, especially in 2009, and might trigger negative rating actions, says Standard & Poor's Ratings Services its latest "Industry Report Card: Slowing Economy Will Squeeze European Chemical Earnings -- And Ratings." "In such an environment, companies with negative outlooks, about 20% of the total of 29 that we rate, face an increased risk of a rating deterioration," said S&P's credit analyst Tobias Mock. The outlook on six companies is currently negative: LyondellBasell Industries AF S.C.A. (B/Negative/--), Ineos Group Holdings PLC (B+/Negative/--), Carmeuse Holding S.A. (BB+/Negative/--), Akzo Nobel N.V. (A-/Negative/A-2), BASF SE (AA-/Negative/A-1+), and SPCM S.A. (BB-/Negative/--). For all these companies, weaker profit generation in the coming years could trigger a downgrade because their current credit protection ratios are not strong enough to offset a material decline in operating profit. Nevertheless, the outlook is still stable on the majority of rated firms because they have managed to build up a cushion during the good economic conditions of the past years, and are therefore likely to maintain their credit strength, even in a weakening environment. "While the majority of our rated chemical companies have solid balance sheets to weather the increased uncertainties, we see an elevated risk of credit deterioration for our six issuers rated in the 'B' category," said Mr. Mock. "Their balance sheets do not allow for a prolonged downturn, significant earnings deterioration, or refinancing needs." Liquidity of S&P's rated investment-grade companies looks solid for the next 12 months because debt maturities are moderate and companies expect that cash flows should cover their expenses. Liquidity for speculative-grade companies, however, is highly dependent on their ability to comply with their financial covenants and therefore poses a higher risk. Agrochemical companies and industrial gas producers are more resilient than other chemical segments to withstand low or even negative economic growth and an imbalance of supply and demand, the report says. S&P therefore expects their performance to be solid and in line with expectations for their credit profiles. Petrochemical producers, on the other hand, will be the most exposed to slowing economic growth, volatile raw material costs, and a substantial addition of supply coming on stream from 2009. In response to tougher conditions, S&P expects chemical companies to adopt more conservative financial policies in the downcycle, moving away from the aggressive debt financing of 2006-2007 and from large share buybacks. In addition, S&P expects capital expenditures to be smaller and acquisitions to remain relatively scarce. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 28, 2008 TURNAROUND MANAGEMENT ASSOCIATION State of the Capital Markets Citrus Club, Orlando, Florida Contact: www.turnaround.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Oct. 29-30, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Corporate Governance Meetings Marriott, New Orleans, Louisiana Contact: www.turnaround.org Oct. 30 & 31, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Physicians Agreements and Ventures Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Oct. 31, 2008 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hilton, Frankfurt, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 6, 2008 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Coach House Diner & Restaurant, Hackensack, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 11, 2008 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Case Study Summit Club, Birmingham, Alabama Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds:A View From Workout Consultants TBA, Buffalo, New York Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Social TBD, Melville, New York Contact: 631-251-6296 or www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Dinner Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Nov. 17-18, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Distressed Investing Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Special Program Tournament Players Club at Jasna Polana, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Interaction Between Professionals in a Restructuring/Bankruptcy Bankers Club, Miami, Florida Contact: 312-578-6900; http://www.turnaround.org/ Nov. 20, 2008 TURNAROUND MANAGEMENT ASSOCIATION Senior Housing & Long Term Care Washington Athletic Club,Seattle, Washington Contact: www.turnaround.org Nov. 27, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Chris Kaup TBD, Phoenix, Arizona Contact: www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Party McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function Terminal City Club, Vancouver, British Columbia Contact: 503-768-4299 or www.turnaround.org Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ Dec. 8, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Gathering TBD, Long Island, New York Contact: 631-251-6296 or www.turnaround.org Dec. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer Washington Athletic Club, Seattle, Washington Contact: 503-768-4299 or www.turnaround.org Dec. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer University Club, Portland, Oregon Contact: 503-768-4299 or www.turnaround.org Dec. 18, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer TBD, Phoenix, Arizona Contact: 623-581-3597 or www.turnaround.org Dec. 31, 2008 TURNAROUND MANAGEMENT ASSOCIATION Sponsorships - Annual Golf Outing, Various Events TBA, New Jersey Contact: 908-575-7333 or www.turnaround.org Jan. 21-22, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 5-7, 2009 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casurina, Grand Cayman Island, AL Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 25-27, 2009 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OFBANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 15-18, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Chinas New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer for Navigating the Restructuring Process Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Examining the Examiners: Pros and Cons of Using Examiners in Chapter 11 Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; 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Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Todays Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ * * * Featured Conferences Renaissance American Management and Beard Conferences presents Oct. 30-31, 2008 Physician Agreements & Ventures The Millennium Knickerbocker Hotel - Chicago Brochure will be available soon! Nov. 17-18, 2008 Distressed Investing The Helmsley Park Lane - New York Brochure will be available soon! * * * Beard Audio Conferences presents Bankruptcy and Restructuring Audio Conference CDs More information and list of available titles at: http://beardaudioconferences.com/bin/topics?category_id=BAR * * * The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy Agravante, Melanie Pador, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *