/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/050826.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 Friday, August 26, 2005, Vol. 6, No. 169 Headlines F R A N C E SARTEX: Under Observation for Six Months G E R M A N Y ADAM RAUCH: Darmstadt Court Appoints Interim Administrator ARCHEA PHARMA: Creditors Meeting Set November BUSSKAMP VERWALTUNGS: Applies for Bankruptcy Proceedings DISCPRESS GMBH: Under Bankruptcy Administration ENERGIEVERSORGUNG KLOSTERSEE: Falls into Bankruptcy EUROPLAST KUNSTSTOFFVERARBEITUNG: Claims Deadline Nears HERMANN MOLDENHAUER: Bremen Court to Verify Claims October HNW-KOMENT: Creditors' Claims Due 3rd Week of September IOS INVESTORS: Court Names Dr. Petra Hilgers Administrator KIESER PACKAGING: Declares Bankruptcy LYCANET GMBH: Bielefeld Court Calls in Administrator OPFERMANN BETEILIGUNGS: Goes Belly up VOLKSWAGEN AG: Union Won't Accept Changes to Current Labor Pact WUNDSCH WEIDINGER: Indian Firm to Acquire Business, Assets I R E L A N D ELAN CORPORATION: Increase in CEO's Severance Pay Questioned HOSPIRA: Abandon's Donegal Plant After 28 Years N E T H E R L A N D S FORD CAPITAL: Moody's Downgrades Unsecured Debt to Ba1 GMAC INTERNATIONAL: Moody's Cuts Family Rating to Ba2 PETROKAZAHSTAN FINANCE: Moody's Reviews Rating for Upgrade ROYAL SHELL: Cancels Another 900,000 'A' Shares R U S S I A BARANCHINSKIY: Succumbs to Bankruptcy CHEMES: Insolvency Manager Takes over Company DAIRY KRYLOVSKIY: Bankruptcy Hearing Set Next Year INZHEL-STROY-SERVICE: Bankruptcy Supervision Begins IZH-MASH-AUTO-TRANS: Hires A. Karelin Insolvency Manager MOL-PROM: Undergoes Bankruptcy Supervision Procedure NONWOVEN FABRIC: Proofs of Claim Deadline September 23 NORTH-WEST TRANSPORT: Declared Insolvent TNK-BP: Outlook Changed on Settlement of Tax Arrears URAL-ECOS: Insolvency Manager Enters Firm YAGODINSKIY INDUSTRIAL: Under Bankruptcy Supervision S W I T Z E R L A N D SWISS INTERNATIONAL: Expands Basel Technical Services T U R K E Y TURKCELL ILETISIM: Fitch Upgrades Rating to 'BB'; Outlook Stable U K R A I N E AGRO-DRUZHBA: Proofs of Claim Deadline Expires August 29 BRIGANTINA: Gives Creditors Until Next Week to File Claims KRIMSKA INDUSTRIAL 2: Succumbs to Bankruptcy LOHVITSKA SILGOSPHIMIYA: Bankruptcy Supervision Starts MODA-KLASIK: Declared Insolvent POLTAVA' RAJAGROPOSTACH: Under Bankruptcy Supervision PROMIN: Last Day for Filing Claims August 28 REYA: Insolvency Manager Takes over Business SLAVUTICH: Court Appoints Liquidator VAJNING-VINNITSYA: Creditors' Claims Due Next Week U N I T E D K I N G D O M ASET ENGINEERING: Hires Administrators from Wilson Field AVMARK INTERNATIONAL: Official Receiver to Oversee Liquidation BOSSA NOVA: Calls in Administrator CANNON TANDOORI: Bristol Court Issues Winding-up Order COUNTRY SUPERSTORES: Administrator's Proposals Known Next Month EAST WEST: Leonard Curtis Administrators Step in GATE GOURMET: BA Deal 'Contingent' Upon Labor Row Resolution GLASDON GOWN: Court Orders Winding up GPE EXHIBITIONS: Hires Administrators from Andrew Michaels & Co. GRANADA WINDOWS: First Creditors Meeting Set Next Week HARLEQUIN HEATING: Court Okays Liquidation HENDERSON GROUP: Still on Track to Achieve 2005 Target JARVIS PLC: Creditors Participating in Debt Swap Okay Plan JH AND CJN: Meeting of Creditors Next Week KENT INTERNATIONAL: Calls in Administrators from Grant Thornton LAMPS DIRECT: Creditors Meeting Set Next Week MANSTON CAR: Administrators from Grant Thornton Enter Firm MEDINET CORPORATION: Appoints Bennett Verby Administrator MG ROVER: Phoenix Four Promise to Turn over Castle Sale Proceeds MISYS PLC: Proposed Bonus Scheme for Execs May Spark Revolt PAREX SYSTEMS: Collapses into Liquidation PREMIER YACHT: Court Okays Liquidation RE LTD.: Winding-up Gets Go Signal ROYAL & SUNALLIANCE: Unveils Scrip Dividend Scheme T G I COMMERCIAL: Calls in Administrators from Numerica TOHO LIMITED: Baker Tilly Administrators Move in ********* =========== F R A N C E =========== SARTEX: Under Observation for Six Months ---------------------------------------- Some 64 of Sartex's 108 workforce will lose their jobs, as the lingerie maker tries to emerge from receivership, Les Echos says. Declared insolvent on July 13, the company is under observation for six months and is hoping to resume production early next month. Lingerie group Allande owns majority of Sartex. CONTACT: ALLANDE GROUP Web site: http://www.allande.fr/ ============= G E R M A N Y ============= ADAM RAUCH: Darmstadt Court Appoints Interim Administrator ---------------------------------------------------------- The district court of Darmstadt opened bankruptcy proceedings against Adam Rauch GmbH on July 28. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 7, 2005 to register their claims with court-appointed provisional administrator Harald Silz. Creditors and other interested parties are encouraged to attend the meeting on October 19, 2005, 10:00 a.m. at the district court of Darmstadt, Zimmer 108, Gebaude E, Landwehrstrasse 48, 64293 Darmstadt, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: ADAM RAUCH GmbH Dammstrasse 5, 65462 Ginsheim-Gustavsburg Contact: Adam Rauch, Manager Harald Silz, Administrator Adolfsallee 24, 65185 Wiesbaden Phone: 0611/1504-0 Fax: 0611/301774 ARCHEA PHARMA: Creditors Meeting Set November --------------------------------------------- The district court of Darmstadt opened bankruptcy proceedings against Archea Pharma Dr. Makosi GmbH on August 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 22, 2005 to register their claims with court-appointed provisional administrator Dr. Alexander Hopfner. Creditors and other interested parties are encouraged to attend the meeting on November 3, 2005, 9:15 a.m. at the district court of Darmstadt, Zimmer 109, Gebaude E, Landwehrstrasse 48, 64293 Darmstadt, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: ARCHEA PHARMA DR. MAKOSI GmbH Tiergartenstr. 2-4, 64646 Heppenheim Contact: Guenther Hans Erich Noell, Manager Tulpenstr. 7, 82377 Penzberg Dr. Alexander Hopfner, Administrator Darmstadter Str. 43, 64646 Heppenheim Phone: 06252/6739988 Fax: 06252/6739989 BUSSKAMP VERWALTUNGS: Applies for Bankruptcy Proceedings -------------------------------------------------------- The district court of Muenster opened bankruptcy proceedings against Busskamp Verwaltungs GmbH on August 5. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 8, 2005 to register their claims with court-appointed provisional administrator Ralph Schmid. Creditors and other interested parties are encouraged to attend the meeting on September 29, 2005, 12:45 p.m. at the district court of Muenster, Gebaudeteil Eingang B, Gerichtsstrasse 2 - 6, 48149 Muenster, I.OG, Saal 101 B, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: BUSSKAMP VERWALTUNGS GmbH Lindenstrasse 10, 46354 Suedlohn-Oeding Contact: Udo Busskamp, Manager Ralph Schmid, Administrator Duelmener Str. 92, 48653 Coesfeld Phone: 02541/915-03 Fax: +492541915100 DISCPRESS GMBH: Under Bankruptcy Administration ----------------------------------------------- The district court of Darmstadt opened bankruptcy proceedings against DISCPRESS GmbH on August 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 13, 2005 to register their claims with court-appointed provisional administrator Dr. Jan Markus Plathner. Creditors and other interested parties are encouraged to attend the meeting on September 14, 2005, 10:30 a.m. at the district court of Darmstadt, Saal U2, Gebaude E, Landwehrstrasse 48, 64293 Darmstadt, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report on November 25, 2005, 10:00 a.m. at the same venue. CONTACT: DISCPRESS GmbH Handelstrasse 3, 64859 Eppertshausen Contact: Manfred Wilhelm Martin Kramer, Manager Dr. Jan Markus Plathner, Administrator Lyoner Strasse 14, 60528 Frankfurt Phone: 069/962334-0 Fax: 069/962334-22 ENERGIEVERSORGUNG KLOSTERSEE: Falls into Bankruptcy --------------------------------------------------- The district court of Muenster opened bankruptcy proceedings against Energieversorgung Klostersee GmbH on August 2. Consequently, all pending proceedings against the company have been automatically stayed. Creditors had until August 24, 2005 to register their claims with court-appointed provisional administrator Dr. Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting on September 14, 2005, 10:10 a.m. at the district court of Muenster, Gebaudeteil Eingang B, Gerichtsstrasse 2 - 6, 48149 Muenster, EG, Saal 13 B, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: ENERGIEVERSORGUNG KLOSTERSEE GmbH Ramakersweg 22, 46325 Borken Contact: Arie Paul de Graaf, Manager Auf der Recke 10, 46399 Bocholt Felix Janzen, Manager Gruenstrasse 2, 46325 Borken Heinz Peter Rolf, Manager 46399 Bocholt Dr. Stephan Thiemann, Administrator Lublinring 12, 48147 Muenster Phone: 0251/16283-0 Fax: +492511628311 EUROPLAST KUNSTSTOFFVERARBEITUNG: Claims Deadline Nears ------------------------------------------------------- The district court of Wolfratshausen opened bankruptcy proceedings against EuroPlast Kunststoffverarbeitung GmbH on August 2. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 2, 2005 to register their claims with court-appointed provisional administrator Michael George. Creditors and other interested parties are encouraged to attend the meeting on September 22, 2005, 9:15 a.m. at the district court of Wolfratshausen, Bahnhofstrasse 18, Sitzungssaal 3/I, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: EUROPLAST KUNSTSTOFFVERARBEITUNG GmbH Im Farchet 17 in 83646 Bad Tolz Michael George, Administrator Beuerberger Str. 14, 82515 Wolfratshausen Phone: 08171/423040 Fax: 08171/423048 HERMANN MOLDENHAUER: Bremen Court to Verify Claims October ---------------------------------------------------------- The district court of Bremen opened bankruptcy proceedings against Hermann Moldenhauer GmbH on August 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 27, 2005 to register their claims with court-appointed provisional administrator Frank-Michael Rhode. Creditors and other interested parties are encouraged to attend the meeting on September 22, 2005, 10:45 a.m. at the district court of Bremen, Saal 115, Gerichtshaus (Neubau), Ostertorstr. 25-31, 28195 Bremen, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report on October 20, 2005, 10:30 a.m. at the same venue. CONTACT: HERMANN MOLDENHAUER GmbH Humboldtstrasse 40-42, 28203 Bremen Contact: Ulf Moldenhauer, Manager Ernst-August Hermann, Manager Frank-Michael Rhode, Administrator Graf-Moltke-Str. 62, 28211 Bremen Phone: 0421/3485212/213 Fax: 0421/341078 HNW-KOMENT: Creditors' Claims Due 3rd Week of September ------------------------------------------------------- The district court of Wolfratshausen opened bankruptcy proceedings against HNW-Koment Produktions- und Vertriebs GmbH on August 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 16, 2005 to register their claims with court-appointed provisional administrator Alfred Ponzer. Creditors and other interested parties are encouraged to attend the meeting on October 20, 2005, 8:00 a.m. at the district court of Wolfratshausen, Bahnhofstrasse 18, Sitzungssaal 3/I, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: HNW-KOMENT PRODUKTIONS- UND VERTRIEBS GmbH Industriestr. 6 in 83607 Holzkirchen Alfred Ponzer, Administrator Marktplatz 18, 83607 Holzkirchen Phone: 08024/30580 Fax: 08024/305820 IOS INVESTORS: Court Names Dr. Petra Hilgers Administrator ---------------------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against IOS Investors Object Services GmbH on August 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 28, 2005 to register their claims with court-appointed provisional administrator Dr. Petra Hilgers. Creditors and other interested parties are encouraged to attend the meeting on September 21, 2005, 11:15 a.m. at the district court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report December 12, 2005, 10:45 a.m. at the same venue. CONTACT: IOS INVESTORS OBJECT SERVICES GmbH Ruschestr. 68,10365 Berlin Dr. Petra Hilgers, Administrator Goethestr. 85, 10623 Berlin KIESER PACKAGING: Declares Bankruptcy ------------------------------------- The district court of Augsburg opened bankruptcy proceedings against Kieser Packaging Solutions GmbH on August 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 2, 2005 to register their claims with court-appointed provisional administrator Rainer U. Mueller. Creditors and other interested parties are encouraged to attend the meeting on September 28, 2005, 9:00 a.m. at the district court of Augsburg, Justizgebaude, Sitzungssaal 162, Am Alten Einlass 1, 86150 Augsburg, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: KIESER PACKAGING SOLUTIONS GmbH Oskar-von-Miller-Str. 1, 86356 Neusass Contact: Thomas Kessler, Manager Gerhard Kieser, Manager Rainer U. Mueller, Administrator Schiessstattenstr. 15, 86159 Augsburg LYCANET GMBH: Bielefeld Court Calls in Administrator ---------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Lycanet GmbH on July 25. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 20, 2005 to register their claims with court-appointed provisional administrator Dr. Alexander Geilert. Creditors and other interested parties are encouraged to attend the meeting on October 11, 2005, 11:00 a.m. at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld, 4. Ebene, Saal 4065, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: LYCANET GmbH Beethovenstr. 8, 33604 Bielefeld Contact: Katrin Heuschkel-Dobsch, Manager Dr. Alexander Geilert, Administrator Otto-Brenner-Str. 186, 33604 Bielefeld OPFERMANN BETEILIGUNGS: Goes Belly up ------------------------------------- The district court of Bremen opened bankruptcy proceedings against Opfermann Beteiligungs-GmbH on August 2. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 27, 2005 to register their claims with court-appointed provisional administrator Frank-Michael Rhode. Creditors and other interested parties are encouraged to attend the meeting on September 22, 2005, 10:55 a.m. at the district court of Bremen, Saal 115, Gerichtshaus (Neubau), Ostertorstr. 25-31, 28195 Bremen, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report on October 20, 2005, 10:30 a.m. at the same venue. CONTACT: OPFERMANN BETEILIGUNGS-GmbH Norderneystr. 14, 28217 Bremen Contact: Edmund Hinrich Gerhard Altmann, Manager Ellener Dorfstr. 1, 28325 Bremen Frank-Michael Rhode, Administrator Graf-Moltke-Str. 62, 28211 Bremen Phone: 0421/3485212/213 Fax: 0421/341078 VOLKSWAGEN AG: Union Won't Accept Changes to Current Labor Pact --------------------------------------------------------------- Volkswagen AG warns of job losses and factory closures if no deal is reached with German trade unions regarding cost saving measures, the Financial Times says. Chief Executive Bernd Pischetsrieder says no manufacturer could make money out of exporting cars at the current dollar exchange rate, intensifying the need for cost reductions. In another report, Joerg Koether, spokesman for German labor union IG Metall, told Dow Jones Newswires they are taking the statement seriously. He said the Volkswagen management has not met with the union yet. IG Metall is open to discussions on how to improve production, but it will stand by the labor agreement it signed with Volkswagen in November, he said. The deal involves pay freezes for employees in Western Germany until the beginning of 2007, while Volkswagen assures them of their jobs until the end of 2011. Earlier, Wolfgang Bernhard, a former DaimlerChrysler AG executive appointed last year to lead Volkswagen's reorganization, said workers must be "ready to tread new paths." He stressed "no sacred cows" would be spared as the struggling carmaker plans to save EUR10 billion and lift profits by EUR4 billion to avoid dipping further into the red by 2008. High production costs, intense competition, a weak U.S. dollar and the slowing demand in Europe hit Volkswagen's 2004 earnings. It has around 343,000 employees and operates 54 plants worldwide. Mr. Bernhard is presently negotiating with labor representatives about cutting production costs by EUR850 per unit for Volkswagen's new compact off-road model. An agreement is said to be conditional upon the construction of the new model in Wolfsburg. "The labor representatives know that if the new model won't be produced in Wolfsburg this would kick off a big discussion over the headcount," a person privy to the talks said. CONTACT: VOLKSWAGEN AG Brieffach 1848-2 38436 Wolfsburg, Germany Phone: +49 53 61 90 Fax: +49 53 61 92 82 82 Web site: http://www.volkswagen.de WUNDSCH WEIDINGER: Indian Firm to Acquire Business, Assets ---------------------------------------------------------- Tata AutoComp Systems Ltd. (TACO) will take over German auto parts firm Wundsch Weidinger, said the Financial Express. TACO was silent regarding the size of the transaction, which will be handled by its German subsidiary. In March, Wundsch Weidinger filed for insolvency, with assets valued at EUR4 million. Through its Coburg facility and 270 employees, Wunsch Weidinger engages in tool shop, precision injection molding, surface enrichment and assembly operations. The acquisition will provide TACO access to Wunsch Weidinger's major clients such as Audi, Bentley, BMW, Volkswagen and Volvo. TACO, a unit of top truck and bus maker Tata Motors Ltd., makes seating systems, plastic interiors and exterior parts, radiators, lighting systems and braking systems. Its overseas customers include DaimlerChrysler, Fiat, Ford, General Motors, Honda Motor, Hyundai and Toyota. Last week, sister company Tata Technologies agreed to buy U.K. design and engineering firm INCAT Technologies Inc. for around US$97 million. CONTACT: TATA AUTOCOMP SYSTEMS LTD. TACO House, V. G. Damle Path, Off Law College Road, Erandwana Pune - 411 004 India Phone: +91-20-5608 5000 Fax: +91-20-5608 5034 Web site: http://www.tacogroup.com ============= I R E L A N D ============= ELAN CORPORATION: Increase in CEO's Severance Pay Questioned ------------------------------------------------------------ The increase in the severance package of Chief Executive Kelly Martin has the effect of encouraging him to sell the company, a U.K. corporate governance group declared recently. Manifest, which accuses Elan of not treating shareholders equally, said the enhanced payout effectively incentivizes Mr. Martin in the event of a takeover. In a disclosure to the U.S. Securities and Exchange Commission last week, Elan revealed it had increased Mr. Martin's severance to three years' salary and a bonus from two years should the company be taken over, the Irish Times said on Aug. 23. Manifest notes that, at last Friday's share price, Mr. Martin would have secured more than US$13 million (EUR10.6 million) in the event of a takeover, including more than US$8 million from his share options. Elan Corporation, plc is a neuroscience-based biotechnology company. Its shares trade on the New York, London and Dublin Stock Exchanges. Visit http://www.elan.comfor additional information. CONTACT: ELAN CORPORATION PLC Lincoln House Lincoln Place Dublin2 Ireland Phone: +353 1 709 4000 Fax: +353 1 709 4108 HOSPIRA: Abandon's Donegal Plant After 28 Years ----------------------------------------------- Approximately 560 workers will lose their jobs when Hospira shuts down its operation in South Donegal this year, reports Business world. The specialty pharmaceutical company has decided to cease operation in the area after 28 years and move production to Dominican Republic or Costa Rica where it already has facilities. Hospira, a spin-off from Abbott Labs, makes specialty pharmaceutical and medication delivery products. ===================== N E T H E R L A N D S ===================== FORD CAPITAL: Moody's Downgrades Unsecured Debt to Ba1 ------------------------------------------------------ Moody's Investors Service lowered the ratings of Ford Motor Company (Ford) senior unsecured to Ba1 from Baa3, and assigned a Ba1 Corporate Family Rating and an SGL-1 speculative grade liquidity rating. Moody's also lowered the ratings of Ford Motor Credit Company (Ford Credit), senior unsecured to Baa3 from Baa2, and short-term rating to Prime-3 from Prime-2. The rating outlook for both companies is negative. The downgrades reflect further erosion in the operating results and cash flow generation of Ford in consideration of weakened market share and continued challenges in addressing its uncompetitive cost structure in North America. These factors are expected to result in a pretax loss from automotive operations for 2005. Since improvement in the company's cost structure can only be implemented over a period of time, financial performance is expected to remain weak. Ratings lowered: (a) Ford Motor Company and supported entities: senior unsecured debt to Ba1 from Baa3; trust preferred to Ba2 from Ba1; shelf registration for senior unsecured debt to (P)Ba1 from (P)Baa3, and trust preferred to (P)Ba2 from (P)Ba1; and VMIG-3 rating to SG. (b) Ford Motor Credit Company and supported entities: senior unsecured debt to Baa3 from Baa2; shelf registration for senior unsecured debt to (P)Baa3 from (P)Baa2, and subordinated debt to (P)Ba1 from (P)Baa3; and, short-term rating to Prime-3 from Prime-2. Ratings assigned: Ford Motor Company: corporate family rating, Ba1; and, speculative grade liquidity rating, SGL-1. Ratings withdrawn: Ford Motor Company: preferred stock, Ba2. Moody's expects that Ford's automotive operations will consume over US$500 million of cash during 2005 following the payment of its US$700 million common dividend. This is prior to a number of other significant cash flow items that are not reflective of the automotive operation's ongoing performance, including receipt of dividends from Ford Credit, and proceeds from the Hertz monetization, and does not consider cash outflows associated with the Visteon restructuring, and contributions to the pension and Voluntary Employees' Beneficiary Association (VEBA). The SGL-1 speculative grade liquidity rating reflects Moody's expectation that the company's US$22 billion cash and short-term VEBA position (June 30, 2005), in combination with proceeds realized from the Hertz monetization, would provide ample coverage of all anticipated cash requirements. The major requirements are to fund the expected US$500 million negative cash flow during 2005, any further working capital requirements due to industry conditions, approximately US$1 billion of scheduled debt maturities and other restructuring requirements. This liquidity has provided Ford with an essential cushion as it has attempted to reconfigure its business model to accommodate the increasingly challenging operating environment. Ford's negative outlook recognizes that, in order to meet the operational and competitive challenges it faces, and to achieve the financial benchmarks necessary to support the Ba1 rating, the company will have to successfully execute a number of strategic initiatives. These initiatives include continuing to reduce its variable and fixed costs including the cost burden associated with healthcare, stemming the loss of market share in the US through successful launch of its new products, and laying the groundwork to optimize its global manufacturing and supply footprint. As the company undertakes these initiatives, market factors beyond its control (higher incentives, rising fuel prices, or an economic slowdown in Europe or the US) could contribute to a more stressful operating environment. Any material erosion in Ford's liquidity position would make its ratings more vulnerable to the pressures that continue to confront its automotive operations. The Ba1 rating anticipates that through 2006, Ford will: (a) Maintain U.S. market share approximating 18.5%; (b) Achieve strong market acceptance and sustain healthy price realization for its new mid-size cars; (c) Exceed breakeven automotive profit before tax; (d) Generate automotive cash flow in excess of US$500 million; and (e) maintain gross liquidity (cash and short-term VEBA balances) at or above US$20 billion. Ford Credit, through its continued support for the wholesale and retail financing requirements of Ford and through the dividend payment to its parent (US$4.4 billion during 2004), is also a critical positive factor in Moody's assessment of the company. The Ba1 rating anticipates that during 2006 Ford's metrics, including the Ford Credit dividend and using Moody's standard adjustments, will approximate the following: EBITA margin exceeding 2%; interest coverage of two times, and free cash flow to net debt greater than 10%. Factors that could stabilize Ford's rating outlook include a rebuilding of the company's U.S. market share through strong consumer demand for its products and a material and sustainable reduction in its cost structure. Relief from healthcare costs paid to active and retired hourly workers is imperative to achieve necessary cost repositioning. Factors that would contribute to downward pressure on Ford's Ba1 rating include continuing loss of market share in the US which could result from consumer movement away form trucks and SUVs, a further escalation in price competition, a material reduction in the dividend stream available from Ford Credit, or an erosion of Ford's liquidity. The potential impact of any future restructuring initiatives would be evaluated in the context of the amount and timing of any cash outflows, Ford's ability to maintain adequate liquidity after providing the funding, and the likelihood that the anticipated benefits would be achieved in a reasonable timeframe. The downgrade of Ford Credit's ratings reflects concerns that exist at the parent level. Ford Credit's volumes, asset quality, and earnings are influenced by Ford's product and marketing decisions, which are currently under pressure to yield more favorable results, as well as by its own origination and servicing strategies. Recent quarters have demonstrated the virtue of Ford Credit's decision to strengthen its underwriting, as credit losses have trended to historically low levels, propelling higher earnings. Offsetting this, Ford Credit's base of earning assets has declined on lower origination levels which, combined with higher cost of funds, has subdued results. This is a trend likely to be sustained in future periods; however, in such circumstances, portfolio liquidations are expected to continue to generate significant cash flow, mitigating liquidity stresses associated with declining access to traditional unsecured funding sources and enabling a relatively high dividend payout to parent Ford. Though most of Ford Credit's earning assets are securitizable, certain of the company's assets, particularly those that are more highly correlated with parent-level factors such as retail leases and dealer finance receivables are less readily securitized and have traditionally been funded with unsecured debt. Declining access to unsecured debt may become a limiting factor to the company's scale in future periods. Nevertheless, Moody's expects Ford Credit will maintain the necessary flexibility to manage foreseeable near-term liquidity stresses and, in addition, will be disciplined regarding maintaining acceptable capital levels. Leverage measures that increase from current levels could impair the company's financial flexibility and result in negative ratings pressure. Ford Credit's one-notch differential from Ford's rating is based on Moody's view that, in a default scenario, Ford Credit's assets would likely provide superior asset recovery to unsecured creditors compared to the assets of Ford. Moody's believes that Ford and Ford Credit are mutually motivated to preserve Ford Credit's franchise value, by maintaining the corporate separateness of its various functions, controls, and leadership, thereby offering some protection of its assets from potential substantive consolidation in a bankruptcy filing by Ford. Any change in Moody's view regarding the magnitude of the notching differential would likely relate to actions Ford might pursue to decrease Ford Credit's probability of default, by modifying ownership or governance structures. The potential for additional notching is probably limited to one notch, due to the significant ties between the companies. Ford Motor Company, headquartered in Dearborn, Michigan, is the world's second largest automobile manufacturer. Ford Motor Credit Company, also headquartered in Dearborn, Michigan, is the world's largest auto finance company. CONTACT: MOODY'S INVESTORS SERVICE (NEW YORK) J. Bruce Clark, Senior Vice President Corporate Finance Group Phone: (Journalists) 212-553-0376 (Subscribers) 212-553-1653 Mark L. Wasden, Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service Phone: (Journalists) 212-553-0376 (Subscribers) 212-553-1653 GMAC INTERNATIONAL: Moody's Cuts Family Rating to Ba2 ----------------------------------------------------- Moody's Investors Service lowered the ratings of General Motors Corporation (GM) senior unsecured debt to Ba2 from Baa3, and its short-term rating to Not Prime from Prime-3, and assigned a Ba2 Corporate Family Rating and an SGL-1 speculative grade liquidity rating. Moody's also lowered the ratings of General Motors Acceptance Corporation (GMAC) senior unsecured debt to Ba1 from Baa2, and short-term rating to Not-Prime from Prime-2. The rating outlook for both companies is negative. The downgrades reflect continuing operating losses in GM's North American automotive operations as well as challenges in restructuring the company to achieve a viable long-term competitive position as a leading global automaker. In Moody's view, a successful restructuring must address the company's high fixed cost burden associated with hourly employee healthcare costs and excess capacity, repositioning GM's product offerings in order to curtail the need for large sales incentives, and additional actions needed to address the competitive weakness of its U.S. supply base, including Delphi Corporation. Ratings lowered include: (a) General Motors Corporation and supported entities: senior unsecured debt to Ba2 form Baa3; shelf registration of senior unsecured debt to (P)Ba2 from (P)Baa3, subordinated debt to (P)Ba3 from (P)Ba1, junior subordinated debt to (P)Ba3 from (P)Ba1, and preferred to (P)B1 from (P)Ba2; VMIG-3 rating to S.G.; and, short-term rating to Not-Prime from Prime-3. (b) General Motors Acceptance Corporation and supported entities: senior unsecured debt to Ba1 from Baa2; senior unsecured shelf to (P)Ba1 from (P)Baa2; and short-term rating to Not-Prime from Prime-3 Ratings assigned: General Motors Corporation: corporate family rating, Ba2; and speculative grade liquidity rating, SGL-1. Moody's estimates that GM's total automotive operating cash flow for 2005 will be in the area of a negative US$3 billon. A portion of this negative cash flow relates to a reduction in trade payables in connection with the company's decision to reduce excess inventories as well as unabsorbed fixed charges as production was ramped down. This type of reduction should not recur during 2006. GM is attempting to address the challenges it is facing through the implementation of a North American recovery plan. This plan includes reducing employment by more than 25,000 during the 2005-2008 period, and reinvigoration of product offerings requiring increased reinvestment. The most critical element of the recovery plan is GM's effort to negotiate significant reductions in healthcare costs with the United Auto Workers union (UAW) as GM's large retiree base places the company at a significant competitive cost disadvantage relative to other auto manufacturers. GM is also contending with the financial and operating difficulties of key components suppliers, including Delphi Corporation. Risks to GM include cash contributions and other economic considerations necessary to enable Delphi to achieve a financial restructuring. Also GM might face operational disruption as a result of a Delphi bankruptcy filing as well as the prospect of having to provide pension and healthcare benefits to certain Delphi employees and retirees under the terms of the agreement reached at the time of the Delphi spin-off. The SGL-1 speculative grade liquidity rating reflects Moody's expectation that GM's US$20 billion cash and short-term VEBA position (June 30, 2005) will provide adequate coverage of cash requirements during the next twelve months. These include the possibility of the negative cash flow the company will likely experience during the remainder of 2005 and early 2006, and approximately US$1 billion in maturities of long-term and short-term debt. The negative outlook reflects the potential for the rating to be further lowered should GM fail to successfully implement its North American recovery plan -- including achieving healthcare cost relief with the UAW and reducing headcount. GM's liquidity provides an important cushion as the company attempts to restructure its operations. Any material erosion in GM's liquidity position would make its rating more vulnerable to the pressures that continue to confront its automotive operations. The Ba2 rating anticipates that GM will: (a) Maintain US market share of approximately 25%; (b) Achieve strong market acceptance and sustain healthy price realization for new products including the T900 light truck and SUV series; (c) Earn automotive pretax profit in excess of US$500 million for 2006; (d) generate at least breakeven automotive operating cash flow before pension, VEBA, GMAC dividends; and (e) maintain gross liquidity (cash and short-term VEBA balances) at or above US$20 billion. GMAC, through its continued support for the wholesale and retail financing requirements of GM and through the dividend payment to its parent (US$1.5 billion during 2004), is also an important support element in Moody's assessment of GM. The Ba2 rating for GM anticipates that during 2006 GM's metrics, including GMAC's dividend and using Moody's standard adjustments, will approximate the following: EBITA margin exceeding 2%; interest coverage of 1.5 times, and free cash flow to debt in the mid-single digits range. Factors that could stabilize GM's rating outlook include a return to sustained profitability and free cash flow generation, particularly in its North American operations. This requires successful implementation of its North American recovery plan, including achieving meaningful healthcare cost relief from the UAW. Moreover, the company will need to stem any further erosion of its competitive market position through product enhancements that sustain market share without the need for significant sales incentives. Factors that could contribute to pressure on the Ba2 rating include: (a) U.S. market share falling below 25%; (b) Reduced levels of dividends from GMAC; (c) failing to maintain balance sheet liquidity of about US$20 billion; and (d) material negative variance from the credit metrics cited above. Moody's is maintaining a one rating notch differential between the GMAC and GM long-term ratings. In Moody's view, loss severity for GMAC's creditors would be meaningfully lower than for GM's creditors were the two companies to default on their debt obligations. We believe any potential for increasing the notching distinction relates to widening the difference in probability of default between the two firms. Changing ownership and governance structures could lead to greater notching, though given the significant GM-related concentrations, the potential is probably limited to one additional notch. Moody's downgrade of GMAC's ratings reflects issues at the GM level that could affect GMAC's condition and performance. For example, Moody's believes that the potential for sustained demand weakness and high sales incentives for GM's autos could ultimately lead to softer residual values, thereby negatively impacting GMAC's credit loss and lease residual realization statistics. Also, though not presently a concern, the quality of dealer finance receivables could be compromised should sales deteriorate to lower levels, pressuring the financial condition of the dealer base. However, in light of the mutual benefits GM and GMAC derive from their association, measured in repeat sales and origination volumes and profit distributions, we believe GM is committed to preserving GMAC's strong franchise value. We therefore do not expect the company to vary from its historical commitment to quality underwriting and risk management practices. A key intermediate term rating issue for GMAC is its liquidity management. GMAC has demonstrated a forward-thinking approach to managing funding and liquidity challenges, but this task has become more difficult as access to the unsecured markets has declined, leaving fewer financing alternatives for GMAC's less-liquid assets. Funding constraints may define the scale and scope of GMAC's operations should alternative funding sources not become more readily available. Given these issues, maintaining flexibility via an adequate capital cushion is of high importance in Moody's view; deviation from the current trend of moderating leverage would reflect negatively on GMAC's intrinsic credit profile. Results in GMAC's core auto finance operations are under pressure due to a shrinking asset base and higher borrowing costs. But strong cash flow from portfolio runoff and sizeable cash balances should mitigate near term liquidity pressures, affording the company some time to address funding challenges. GMAC's mortgage and insurance units have performed admirably, though dwindling refinance volumes associated with stabilizing mortgage rates could result in a reversal of earnings momentum. Cost management will be a key to sustaining profitability metrics as the company deals with the consequences of moderating earning asset levels and higher cost of funds. General Motors Corporation, headquartered in Detroit, Michigan, is the world's largest producer of cars and light trucks. GMAC, a wholly owned subsidiary of GM, provides retail and wholesale financing in support of GM's automotive operations and is one of the worlds largest non-bank financial institutions. CONTACT: MOODY'S INVESTORS SERVICE (NEW YORK) Michael J. Mulvaney, Managing Director Corporate Finance Group Phone: (Journalists) 212-553-0376 (Subscribers) 212-553-1653 J. Bruce Clark, Senior Vice President Corporate Finance Group Moody's Investors Service Phone: (Journalists) 212-553-0376 (Subscribers) 212-553-1653 PETROKAZAHSTAN FINANCE: Moody's Reviews Rating for Upgrade ---------------------------------------------------------- Moody's Investors Service on August 24, 2005 placed the Ba3 corporate family rating for PetroKazakhstan Inc. (PKZ) on review for possible upgrade. The company, which is the guarantor of the US$125 million notes issued by PetroKazakhstan Finance B.V., announced on Monday, August 22, that it has entered into an Arrangement Agreement with CNPC International Ltd. (CNPCI), which has offered to buy all outstanding PKZ common shares for US$4.2 billion in cash. Moody's rating action is in response to the expectation that a successful acquisition will have a positive impact on PKZ's rating considering the stronger credit profile of China National Petroleum Corporation (CNPC), which is the 100% parent company of CNPCI. The closure of the transaction is expected in October 2005. In case of a successful closure of the proposed acquisition, the review will focus on the level of operational and financial integration of PKZ into the acquirer's group. Moody's will likely lift the rating by three or more notches even without a formal support arrangement. With regard to the impact of the transaction on PKZ's outstanding notes, which include a change of control clause, Moody's will focus on the company's liquidity situation, debt allocation and funding policy in the new group. The agency will also monitor the development of PKZ's currently challenging legal and regulatory situation in light of the new owner. PetroKazahstan Finance B.V. is a special-purpose financing vehicle and an indirect wholly owned subsidiary of PetroKazahstan, Inc, formerly known as Hurricane Hydrocarbons Ltd., headquartered in Calgary, Alberta, in Canada. PKZ is an integrated oil company that operates in central and southern Kazakhstan. The other guarantors are PetroKazahstan's principal up- and downstream operating subsidiaries in Kazakhstan. CONTACT: MOODY'S INVESTORS SERVICE LTD. (LONDON) Stuart Lawton, Managing Director European Corporates Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 MOODY'S INVESTORS SERVICE (NEW YORK) Christine Garburg, Associate Analyst European Corporates Phone: (Journalists) 212-553-0376 (Subscribers) 212-553-1653 ROYAL SHELL: Cancels Another 900,000 'A' Shares ----------------------------------------------- On 23 August 2005, Royal Dutch Shell plc purchased for cancellation 900,000 'A' Shares at a price of EUR26.16 per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell plc will be 4,063,540,000. As of that date, 2,759,360,000 'B' Shares of Royal Dutch Shell plc were in issue. * * * Shell's buyback scheme is aimed at reviving shareholders' and investors' confidence. The buyback program follows a damaging reserves overestimation scandal last year. About the Company Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 145 countries with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects including wind and solar power. The Trouble Shell admitted it overstated its proved reserves by almost 6.0 billion barrels between January 2004 and February this year. The crisis resulted to the ouster of three top executives, including former chairman Philip Watts. It was fined EUR150 million in total after investigations launched by U.S. and British regulators. Shell has said it had revised the method to calculate reserves to comply with U.S. regulations. The proved reserves stood at 10.2 billion barrels at the end of 2004. CONTACT: ROYAL DUTCH/SHELL GROUP OF COMPANIES Carel van Bylandtlaan 30 2596 HR The Hague The Netherlands Phone: +31 70 377 9111 Fax: +31 70 377 3115 Web site: http://www.shell.com =========== R U S S I A =========== BARANCHINSKIY: Succumbs to Bankruptcy ------------------------------------- The Arbitration Court of Sverdlovsk region commenced bankruptcy proceedings against Baranchinskiy (TIN 6620008297) after finding the timber industry combine insolvent. The case is docketed as A60-15283/2005-S11. Mr. P. Podporin has been appointed insolvency manager. CONTACT: BARANCHINSKIY Russia, Sverdlovsk region, Baranchinskiy, Soyuzov Str. 1 Mr. P. Podporin Insolvency Manager 620219, Russia, Ekaterinburg, GSP-573, Belinskogo Str. 34, Office 211 CHEMES: Insolvency Manager Takes over Company --------------------------------------------- The Arbitration Court of Chelyabinsk region has commenced bankruptcy supervision procedure on limited liability company Chemes. The case is docketed as A76-10555/05-60-66. Mr. E. Ballakh has been appointed temporary insolvency manager. CONTACT: CHEMES 454038, Russia, Chelyabinsk region, Shosse Metallurgov Str. 11a Mr. E. Ballakh Temporary Insolvency Manager 454085, Russia, Chelyabinsk region, Marchenko Str. 24, Office 308 DAIRY KRYLOVSKIY: Bankruptcy Hearing Set Next Year -------------------------------------------------- The Arbitration Court of Krasnodar region commenced bankruptcy proceedings against Dairy Krylovskiy (TIN 2338005098) after finding the open joint stock company insolvent. The case is docketed as A-32-39184/04-S44/231-B. Mr. M. Orlov has been appointed insolvency manager. Creditors have until September 23, 2005 to submit their proofs of claim to the Arbitration Court of Krasnodar region. A hearing will take place on July 22, 2006. CONTACT: DAIRY KRYLOVSKIY 352080, Russia, Krasnodar region, Krylovskaya St., Naberezhnaya Str. 53 INZHEL-STROY-SERVICE: Bankruptcy Supervision Begins --------------------------------------------------- The Arbitration Court of Chuvashiya republic has commenced bankruptcy supervision procedure on close joint stock company Inzhel-Stroy-Service. The case is docketed as A79-4385/2005. Mr. V. Sokolov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 429900, Russia, Chuvashiya republic, Tsivilsk, Nikolaeva Str. 15. CONTACT: INZHEL-STROY-SERVICE Russia, Chuvashiya republic, Cheboksary, Lapsary, Prom. Zone Mr. V. Sokolov Temporary Insolvency Manager 429900, Russia, Chuvashiya republic, Tsivilsk, Nikolaeva Str. 15 IZH-MASH-AUTO-TRANS: Hires A. Karelin Insolvency Manager -------------------------------------------------------- The Arbitration Court of Udmurtiya republic has commenced bankruptcy supervision procedure on open joint stock company Izh-Mash-Auto-Trans (TIN 1832021903). The case is docketed as A71-43/2005-G26. Mr. A. Karelin has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 426000, Russia, Udmurtiya republic, Izhevsk, K. Marska Str. 432-142. CONTACT: IZH-MASH-AUTO-TRANS Russia, Udmurtiya republic, Izhevsk, Deryabina Str. 3 Mr. A. Karelin Temporary Insolvency Manager 426000, Russia, Udmurtiya republic, Izhevsk, K. Marska Str. 432-142 MOL-PROM: Undergoes Bankruptcy Supervision Procedure ---------------------------------------------------- The Arbitration Court of Chelyabinsk region has commenced bankruptcy supervision procedure on limited liability company Mol-Prom. The case is docketed as A76-7270/05-34-24. Mr. S. Shtayda has been appointed temporary insolvency manager. CONTACT: MOL-PROM Russia, Chelyabinsk region, Kyshtym, Lenina Str. 46 Mr. S. Shtayda Temporary Insolvency Manager 617762, Russia, Perm region, Chaykovskiy, Sovetskaya Str. 1/5, Post User Box 197 Phone/Fax: (34241) 6-13-88, 6-07-41 The Arbitration Court of Chelyabinsk region 454000, Russia, Chelyabinsk region, Vorovskogo Str. 2 NONWOVEN FABRIC: Proofs of Claim Deadline September 23 ------------------------------------------------------ The Arbitration Court of Saint-Petersburg and the Leningrad region commenced bankruptcy proceedings against Nonwoven Fabric (TIN 7805047597, KPP 780501001) after finding the state unitary enterprise factory insolvent. The case is docketed as A56-43352/04. Mr. V. Gurtovoy has been appointed insolvency manager. Creditors have until September 23, 2005 to submit their proofs of claim to 196084, Russia, Saint-Petersburg, Post User Box 241. CONTACT: NONWOVEN FABRIC Russia, Saint-Petersburg region, Vozrozhdeniya Str. 42A Mr. V. Gurtovoy Insolvency Manager 196084, Russia, Saint-Petersburg region, Post User Box 241 NORTH-WEST TRANSPORT: Declared Insolvent ---------------------------------------- The Arbitration Court of Saint-Petersburg and the Leningrad region commenced bankruptcy proceedings against North-West Transport Company after finding the close joint stock company insolvent. The case is docketed as A56-24522/04. Mr. A. Vasilyev has been appointed insolvency manager. CONTACT: Mr. A. Vasilyev Insolvency Manager 191028, Russia, Saint-Petersburg region, Chaykovskogo Str. 27 TNK-BP: Outlook Changed on Settlement of Tax Arrears ---------------------------------------------------- Fitch Ratings has changed the outlook on TNK-BP International Ltd.'s Senior Secured rating and Senior Unsecured foreign currency and local currency ratings to Positive from Stable. The outlook change reflects the reduced political risk to the company following the settlement of the government's back tax claims against the company. This month TNK-BP received a ruling from the Federal Tax Service relating to the results of the repeat tax audit of OAO TNK for 2001, amounting to RUR6.98 billion. This sum is approximately equal to US$250 million and is significantly below the initial claim, which was reported to be close to US$1 billion. Fitch takes comfort from the statement by the management of TNK-BP that payment of the tax claims will not affect the company's operations in any manner. Jeffrey Woodruff, Director in Fitch's Energy Group in Moscow, said: "A favorable ruling by the Federal Tax Service relating to the company's back taxes in addition to improved operating performance again in 2004 has improved our opinion of the company's creditworthiness going forward." Additional factors supporting the rating outlook change include revised expectations regarding the company's operating performance as well as a lengthening of the company's debt maturity profile and a reduction in secured borrowings relative to total debt. Any rating upgrade, however, will largely depend on continued improvement to the company's business profile. Specifically, the agency would look for increased crude oil production so that TNK-BP can meet its stated target of achieving a production growth rate in excess of the Russian industry average. Additionally, the agency would like to see an acceleration in reserve replacement. Fitch would also expect continued improvement to profitability and cash flow measures such as FFO to Net Debt as well as greater production efficiency per barrel of oil produced and refined. A lower tax burden for the Russian oil industry overall compared to other Russian industries would also be viewed as a positive factor. Fitch will continue to monitor the company's operating results, borrowing plans, capital expenditures and dividend payout policy. CONTACT: FITCH RATINGS Jeffrey Woodruff, Moscow Phone: +7-095-956-9986 Isaac Xenitides, London Phone: +44 (0) 20 7417 4300 Media Relations Jon Laycock, London Phone: +44 20 7417 4327 Web site: http://www.fitchratings.com URAL-ECOS: Insolvency Manager Enters Firm ----------------------------------------- The Arbitration Court of Sverdlovsk region commenced bankruptcy proceedings against Ural-Ecos after finding the close joint stock company insolvent. The case is docketed as A60-13102/2005-S11. Mr. O. Artemov has been appointed insolvency manager. CONTACT: URAL-ECOS 620049, Russia, Ekaterinburg, Mira Str. 23-213 Mr. O. Artemov Insolvency Manager 620002, Russia, Ekaterinburg, Post User Box 11 YAGODINSKIY INDUSTRIAL: Under Bankruptcy Supervision ---------------------------------------------------- The Arbitration Court of Magadan region has commenced bankruptcy supervision procedure on municipal unitary enterprise Yagodinskiy Industrial Combine. The case is docketed as A-37-1272/05-2B. Mr. L. Ermolaev has been appointed temporary insolvency manager. A hearing will take place on November 1, 2005. CONTACT: YAGODINSKIY INDUSTRIAL COMBINE 686234, Russia, Magadan region, Yagodninskiy region, Denokosnyj, Tsentralnaya Str. 10 Mr. L. Ermolaev Temporary Insolvency Manager 685000, Russia, Magadan region, Proletarskaya Str. 8, Office 317 Phone: 9-96-93 ===================== S W I T Z E R L A N D ===================== SWISS INTERNATIONAL: Expands Basel Technical Services ----------------------------------------------------- SWISS Technical Services is further developing its position as one of the leading maintenance, repair and overhaul providers in the regional aircraft sector. The unit has concluded a comprehensive long-term maintenance agreement with Blue1, the Finnish-based carrier, covering five Saab 2000 aircraft. SWISS Technical Services will also be ramping up its Avro RJ heavy maintenance activities, extending these to the Avro RJ85s of Lufthansa CityLine. In view of the higher work volumes, the Basel-based unit will be recruiting up to 50 new technical personnel. Swiss International Air Lines can draw on many years of experience in providing regional aircraft maintenance, repair and overhaul (MRO) services that are closely aligned to customer carrier needs. SWISS currently offers MRO services for Avro RJ, Saab 2000 and Embraer 145 equipment which include aircraft, engine, propeller and component maintenance, repair and overhaul along with total technical care concepts that extend to engineering, planning and spares supplies. The new collaboration between SWISS and Lufthansa will bear its first fruit in the MRO field this autumn when SWISS performs its first heavy maintenance check on a Lufthansa CityLine Avro RJ85. The partners plan to further exploit the synergies offered in the maintenance of the SWISS and Lufthansa CityLine Avro RJ85/100 fleets in the longer term, by ensuring that maintenance work previously entrusted to external providers is performed within the Lufthansa Group. In a further development, SWISS has concluded a long-term MRO agreement with Finnish-based Blue1, a member of the Star Alliance, for the maintenance of the carrier's five Saab 2000s. SWISS is one of the leading providers of MRO services for this aircraft type. To handle the increased work volumes represented by the Lufthansa CityLine and Blue1 business, SWISS Technical Services will be doubling its fixed capacity from the present single heavy maintenance or "C Check" line. The unit will also be expanding its workforce by up to 50 new technical personnel. In addition to its flying staff, SWISS currently employs some 750 personnel in Basel, just under 400 of them in its Technical Services unit. By expanding its technical workforce, SWISS is also consolidating its position as one of the biggest employers at EuroAirport Basel-Mulhouse-Freiburg. CONTACT: SWISS INTERNATIONAL Corporate Communications P.O. Box, CH-4002 Basel Phone: +41 (0) 848 773 773 Fax: +41 (0) 61 582 3554 E-mail: communications@swiss.com =========== T U R K E Y =========== TURKCELL ILETISIM: Fitch Upgrades Rating to 'BB'; Outlook Stable ---------------------------------------------------------------- Fitch Ratings has upgraded Turkish GSM telephony provider Turkcell Iletisim Hizmetleri A.S.'s Senior Unsecured local currency rating to 'BB' from 'BB-' (BB minus) and removed it from Rating Watch Positive (RWP). A Stable Outlook is assigned. At the same time, Turkcell's Senior Unsecured foreign currency rating is affirmed at 'BB-' (BB minus), which is capped by the Republic of Turkey's Long-term foreign currency 'BB-' (BB minus) rating. The Senior Unsecured local currency rating was put on RWP on 30 March, following TeliaSonera's agreement to acquire from Cukurova Group a 27% stake in Turkcell for US$3.1 billion in cash. This would allow TS to control Turkcell with a 64.1% share and bring stability to Turkcell's ownership. There is now uncertainty that this agreement will close and as a result Fitch has removed the RWP. Separately Fitch has upgraded the Local Currency rating due to a strong underlying operational performance to reflect Turkcell's improved metrics. The upgrade reflects the strengthening performance of Turkcell's Turkish mobile operations, on the back of its sustained 67% leading market position in a growing market and stabilizing macro economic trends, which are key drivers of its credit profile. (Turkcell's subscribers reached 25.6 million at end-June 2005, up from 23.4 million in YE2004). The upgrade also reflects the resolution of Turkcell's key legal issues with Turk Telekom and Turkish Treasury and thereby clarity on the cash flow impact of Turkcell's litigations. Fitch incorporates the cash outflow impact of its litigation payments for 2005 and 2006 but would still leave its leverage consistent with a 'BB' rating. Despite litigation payments in 2004 (US$486 million cash outflow), cash dividend payments (US$78 million) and increased capital expenditures (US$487 million), Turkcell's cash generation was sufficient to maintain cash-liquid balance of US$764 million as at end-FY04. Consequently, leverage was modest at 0.7x as measured by gross debt-to-operating EBITDA (1.4x when adjusted for litigation obligations) and is strong for the rating level. The ratings also consider the potential regulatory and competitive challenges Turkcell may face, such as TA's potential standard reference interconnect tariffs, Turk Telekom's privatization, the sale of troubled Telsim, and the potential introduction of mobile virtual network operators and new technologies. Turkcell is the largest provider of GSM telephony services in Turkey. It also has investments in mobile markets in Azerbaijan, Moldova, Georgia and Kazakhstan through Fintur Holding (41.45% stake) and Ukraine. It is listed on the Istanbul Stock Exchange; its American Depositary Shares are also listed on the New York Stock Exchange. CONTACT: FITCH RATINGS Guzin Durmus, Istanbul Phone: +90 212 279 1065 Michael Dunning, London Phone: +44 207 417 6343 Raymond Hill, London Phone: +44 207 417 4314 Media Relations Julian Dennison, London Phone: +44 20 7862 4080 Web site: http://www.fitchratings.com ============= U K R A I N E ============= AGRO-DRUZHBA: Proofs of Claim Deadline Expires August 29 -------------------------------------------------------- The Economic Court of Zaporizhya region has commenced bankruptcy supervision procedure on LLC Agro-Druzhba (code EDRPOU 30316104). The case is docketed as 25/140. Mr. Oleksandr Plahotnik (License Number AA 630147) has been appointed temporary insolvency manager. The company holds account number 26004208782099 at CB Privatbank, MFO 313399. Creditors have until August 29, 2005 to submit their proofs of claim to: (a) AGRO-DRUZHBA 71100, Ukraine, Zaporizhya region, Berdyansk district, Osipenko, Osipenko Str. 3 (b) Mr. Oleksandr Plahotnik Temporary Insolvency Manager Ukraine, Dnipropetrovsk region, Dniprodzerzhinsk, Medichna Str. 4/51 (c) ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 BRIGANTINA: Gives Creditors Until Next Week to File Claims ---------------------------------------------------------- The Economic Court of Herson region commenced bankruptcy proceedings against Brigantina (code EDRPOU 14310833) on June 21, 2005 after finding the open joint stock company insolvent. The case is docketed as 5/46-05. Ms. U. Siromyatnikova (License Number AA 719768) has been appointed liquidator/insolvency manager. Creditors have until August 28, 2005 to submit their proofs of claim to: (a) Ms. U. Siromyatnikova Liquidator/Insolvency Manager Ukraine, Herson region, Skadovsk (b) ECONOMIC COURT OF HERSON REGION 73000, Ukraine, Herson region, Gorkij Str. 18 KRIMSKA INDUSTRIAL 2: Succumbs to Bankruptcy -------------------------------------------- The Economic Court of Sevastopol region commenced bankruptcy supervision procedure on LLC Krimska Industrial Company-2 (code EDRPOU 0330709157) on June 13, 2005. The case is docketed as 20-10/079. Ms. Svitlana Bikova (License Number AB 116147) has been appointed temporary insolvency manager. The company holds account number 260093013232 at JSCB Ukrsocbank, MFO 324195 and 26001317422001 at CB Privatbank, Sevastopol region branch, MFO 324935. Creditors have until August 29, 2005 to submit their proofs of claim to: (a) KRIMSKA INDUSTRIAL COMPANY-2 99029, Ukraine, AR Krym region, Sevastopol region, Shabalin Str. 27 (b) Ms. Svitlana Bikova Temporary Insolvency Manager 99022, Ukraine, AR Krym region, Sevastopol region, Gorpishenko Str. 92/3 (c) ECONOMIC COURT OF SEVASTOPOL REGION 99011, AR Krym region, Sevastopol region, Pavlichenko Str. 5 LOHVITSKA SILGOSPHIMIYA: Bankruptcy Supervision Starts ------------------------------------------------------ The Economic Court of Poltava region revived bankruptcy supervision procedure on OJSC Lohvitska Silgosphimiya (code EDRPOU 05487052) on June 30, 2005. The case is docketed as 10/518. Mr. Volodimir Nesvit (License Number AB 176021) has been appointed temporary insolvency manager. Creditors have until August 28, 2005 to submit their proofs of claim to: (a) LOHVITSKA SILGOSPHIMIYA Ukraine, Poltava region, Lohvitsya, Aerodromna Str. 1 (b) Mr. Volodimir Nesvit Temporary Insolvency Manager 36003, Ukraine, Poltava region, Nezalezhnosti Square, 1-B, Room 18 Phone: 50-80-67 (c) ECONOMIC COURT OF POLTAVA REGION 36000, Ukraine, Poltava region, Zigina Str. 1 MODA-KLASIK: Declared Insolvent ------------------------------- The Economic Court of Lugansk region commenced bankruptcy proceedings against Moda-Klasik (code EDRPOU 31647102) on July 4, 2005 after finding the limited liability company insolvent. The case is docketed as 21/62 b. Mr. Andrij Kulik has been appointed liquidator/insolvency manager. The company holds account number 2600401611395 at Ukreximbank, Lugansk branch, MFO 304289. Creditors have until August 28, 2005 to submit their proofs of claim to: (a) MODA-KLASIK Ukraine, Lugansk region, Lutugine, Miru Avenue, 52/2 (b) Mr. Andrij Kulik Liquidator/Insolvency Manager Ukraine, Lugansk region, Shelkovogo Str. 35 Phone: (0642) 59-97-06 (c) ECONOMIC COURT OF LUGANSK REGION 91000, Ukraine, Lugansk region, Geroiv VVV Square, 3a POLTAVA' RAJAGROPOSTACH: Under Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Poltava region commenced bankruptcy supervision procedure on OJSC Poltava' Rajagropostach (code EDRPOU 00906539) on July 7, 2005. The case is docketed as 18/123. Mr. O. Tereshenko (License Number AB 116108) has been appointed temporary insolvency manager. Creditors have until August 28, 2005 to submit their proofs of claim to: (a) POLTAVA' RAJAGROPOSTACH Ukraine, Poltav region, Poltava district, Zaliznichne (b) Mr. O. Tereshenko Temporary Insolvency Manager 36003, Ukraine, Poltava region, Nezalezhnosti Square, 1-B, Room 18 Phone: (0532) 50-80-67 (c) ECONOMIC COURT OF POLTAVA REGION 36000, Ukraine, Poltava region, Zigina Str. 1 PROMIN: Last Day for Filing Claims August 28 -------------------------------------------- The Economic Court of Hmelnitskij region has commenced bankruptcy supervision procedure on Agricultural LLC Promin (code EDRPOU 03788000). The case is docketed as 3/125-B. Mr. Anatolij Lipko (License Number AB 216703) has been appointed temporary insolvency manager. The company holds account number 260005097 at JSPPB Aval, Hmelnitskij regional branch, MFO 315966. Creditors have until August 28, 2005 to submit their proofs of claim to: (a) PROMIN 32054, Ukraine, Hmelnitskij region, Gorodok district, Velika Yaromirka (b) Mr. Anatolij Lipko Temporary Insolvency Manager Ukraine, Hmelnitskij region, Krupska Str. 59 (c) ECONOMIC COURT OF HMELNITSKIJ REGION 29000, Ukraine, Hmelnitskij region, Nezalezhnosti Square, 1 REYA: Insolvency Manager Takes over Business -------------------------------------------- The Economic Court of Zhitomir region commenced bankruptcy proceedings against Reya (code EDRPOU 30825144) on June 29, 2005 after finding the limited liability company insolvent. The case is docketed as 4/109-B. Mr. Oleg Martinov (License Number AA 779325) has been appointed liquidator/insolvency manager. Creditors have until August 28, 2005 to submit their proofs of claim to: (a) REYA Ukraine, Zhitomir region, Berdichiv district, Reya (b) Mr. Oleg Martinov Liquidator/Insolvency Manager 10001, Ukraine, Zhitomir region, Meblevij Lane, 3-a Phone: 41-28-78 Mobile: (067) 315-67-88 (c) ECONOMIC COURT OF ZHITOMIR REGION 10002, Ukraine, Zhitomir region, Putyatinski Square, 3/65 SLAVUTICH: Court Appoints Liquidator ------------------------------------ The Economic Court of Kyiv region commenced bankruptcy proceedings against Agricultural LLC Slavutich (code EDRPOU 03754840) on June 23, 2005 after finding the limited liability company insolvent. The case is docketed as 94/14 b-05. Mr. Yurij Bilik (License Number AA 783144) has been appointed liquidator/insolvency manager. The company holds account number 260000000681001 at JSC Index-Bank, Kagarlik branch, MFO 300818. Creditors have until August 29, 2005 to submit their proofs of claim to: (a) SLAVUTICH 09200, Ukraine, Kyiv region, Kagarlik district, Kuzmintsi, Radyanska Str. 1 (b) Mr. Yurij Bilik Liquidator/Insolvency Manager Phone: 8 (044) 469-05-32 Phone/Fax: 8 (044) 568-12-77 (c) ECONOMIC COURT OF KYIV REGION 01033, Ukraine, Kyiv region, Zhilyanska Str. 58 b VAJNING-VINNITSYA: Creditors' Claims Due Next Week -------------------------------------------------- The Economic Court of Vinnitsya region commenced bankruptcy proceedings against Vajning-Vinnitsya (code EDRPOU 31473144) on July 12, 2005 after finding the company insolvent. The case is docketed as 10/104-04. A representative of Vinnitsya State Tax Inspection has been appointed liquidator/insolvency manager. The company holds account number 26005017411022 MFO 302429. Creditors have until August 28, 2005 to submit their proofs of claim to: (a) VAJNING-VINNITSYA Ukraine, Vinnitsya region, Karbishev Str. 53 (b) Liquidator/Insolvency Manager Ukraine, Vinnitsya region, 30-Richya Peremogi Str. 21 Phone: 8 (0432) 46-97-67 =========================== U N I T E D K I N G D O M =========================== ASET ENGINEERING: Hires Administrators from Wilson Field -------------------------------------------------------- Name: ASET ENGINEERING LIMITED (Company No 04014283) Nature of Business: Construction and Civil Engineering Trade Classification: 4521 Date of Appointment: 12 August 2005 Joint Administrators' Names and Address: Lisa J Hogg and David A Field (IP Nos 9037 and 9178), both of Wilson Field, The Annexe, The Manor House, 260 Ecclesall Road South, Sheffield S11 9PS CONTACT: WILSON FIELD The Annexe The Manor House 260 Ecclesall Road South Sheffield South Yorkshire S11 9UZ Phone: 0114 235 6780 Fax: 0114 262 0661 AVMARK INTERNATIONAL: Official Receiver to Oversee Liquidation -------------------------------------------------------------- Company Name: AVMARK INTERNATIONAL LTD. 4TH Floor, 45 Condiut Street, London, W1S 2YN Phone: +44 (0) 207 287-8383 Fax: +44 (0) 207 287-7244 E-mail: Enquiries@avmarkinc.com Web site: http://www.avmarkinc.com Registration Number: 01918075 Court: High Court of Justice Date of Filing Petition: June 29, 2005 No. of Matter: 004277 of 2005 Date of Winding-up Order: August 10, 2005 CONTACT: Official Receiver 21 Bloomsbury Street, London, WC1B 3SS Phone: 020 7637 1110 Fax: 020 7637 6390 BOSSA NOVA: Calls in Administrator ---------------------------------- Name: BOSSA NOVA UK LIMITED (Company No 4419448) Nature of Business: Restaurant Address of Registered Office: Unit 45, Baildon Mills, Northgate, Baildon, Shipley BD17 6JX Trade Classification: 49 Date of Appointment: 10 August 2005 Administrator's Name and Address: William Clive Swindell (IP No 8100), Yorkshire House, 7 South Lane, Holmfirth, Huddersfield HD9 1HN CONTACT: William Clive Swindell, Liquidator Yorkshire House, 7 South Lane, Holmfirth, Huddersfield HD9 1HN Phone: 01484 688344 CANNON TANDOORI: Bristol Court Issues Winding-up Order ------------------------------------------------------ Company Name: CANNON TANDOORI (UK) LTD. 21 College Hill, Cannon Street, London, EC4R 2RP Phone: 020 7248 5855 Court: Bristol District Registry Date of Filing Petition: June 17, 2005 No. of Matter: 2536 of 2005 Date of Winding-up Order: August 10, 2005 CONTACT: Official Receiver 21 Bloomsbury Street, London, WC1B 3SS Phone: 020 7637 1110 Fax: 020 7637 6390 COUNTRY SUPERSTORES: Administrator's Proposals Known Next Month --------------------------------------------------------------- Notice is hereby given that a Meeting of the Creditors of Country Superstores Limited will be held at The Oak Room, The Maids Head Hotel, Tombland, Norwich, on 6 September 2005, at 11:00 a.m., to consider the Administrators' proposals under section 23(1) of the Insolvency Act 1986 and to consider establishing a Creditors' Committee. A Creditor will be entitled to vote only if a written statement of claim is given to me not later than 12:00 noon on 5 September 2005 and if the claim is admitted for voting purposes. Any proxies that are intended to be used must be submitted to me by the date of the Meeting. A Company may vote either by proxy or through a representative appointed by Board Resolution. A McTear, Joint Administrator CONTACT: MCTEAR WILLIAMS & WOOD De Vere House 90 St Faiths Lane Norwich Norfolk NR1 1NE Phone: 01603 877540 Fax: 01603 877549 E-mail: chriswilliams@mw-w.com EAST WEST: Leonard Curtis Administrators Step in ------------------------------------------------ Name: EAST WEST INTERNATIONAL LIMITED (Company No 04221798) Nature of Business: Other Wholesale Address of Registered Office: Peninsula House, Green Lane, Heywood, Lancashire OL10 2DY Trade Classification: 15 Date of Appointment: 4 August 2005 Joint Administrators' Names and Address: J. M. Titley and A. Poxon (IP Nos 8617 and 8620), of DTE Leonard Curtis, DTE House, Hollins Mount, Bury BL9 8AT CONTACT: DTE LEONARD CURTIS DTE House, Hollins Mount, Bury BL9 8AT Phone: 0161 767 1200 Fax: 0161 767 1201 Web site: http://www.dtegroup.com GATE GOURMET: BA Deal 'Contingent' Upon Labor Row Resolution ------------------------------------------------------------ A union representative reminded Gate Gourmet its new contract with British Airways is contingent upon the settlement of its dispute with the union over the firing of 600 workers. "That deal with British Airways is contingent on getting a labor agreement sorted out and we are not there yet in terms of getting that resolved," a Transport and General Workers' Union spokesman told the Associated Foreign Press. Earlier, the U.S. catering company admitted that its U.K. arm faces the prospect of going out of business if talks with British Airways, its biggest client, collapse. On Tuesday, Gate Gourmet confirmed it had agreed to an improved commercial deal with the airline. Mike Street, BA director of customer service and operations, noted the new terms involve more money for Gate Gourmet and the extension of its contract up to 2010. However, he the agreement will only be official after Gate Gourmet shall have resolved its dispute with the union. The union is hopeful negotiations will resume soon after it stalled Tuesday. "What we were talking about [Tuesday], when we genuinely thought we were making progress with them, is actually a framework procedure for dealing with this whole situation at Gate Gourmet in terms of looking at how we can move the whole situation forward," the union spokesman said. Gate Gourmet Chairman David Siegel has promised to consider the "compromise proposals," but the resumption of talks may be delayed because he is currently in the U.S. Last week, 1,000 BA ground staff at Heathrow held an unofficial strike to protest the termination of co-workers, leaving over 100,000 passengers stranded. Gate Gourmet U.K., which lost GBP22 million in 2004, is facing another GBP25 million in losses this year. It blames the crisis on its "increasingly punitive" contract with British Airways as well as staff costs brought by "1970s union-protected working practices." CONTACT: GATE GOURMET U.K. & IRELAND Phone: 0208 5135013 Mobile: 07810 561816 Web site: http://www.gategourmet.com GLASDON GOWN: Court Orders Winding up ------------------------------------ Company Name: GLASDON GOWN CO. LTD. Glasdon House, 7 Metro Centre, Tolpits Lane, Watford, Hertfordshire, WD18 9SS Phone: 01923 202064 Registration Number: 00374081 Court: High Court of Justice Date of Filing Petition: May 26, 2005 No. of Matter: 003463 of 2005 Date of Winding-up Order: August 10, 2005 CONTACT: Official Receiver 1st Floor, Trident House, 42-48 Victoria Street, St Albans AL1 3HR Phone: 01727 832233 Fax: 01727 732400 GPE EXHIBITIONS: Hires Administrators from Andrew Michaels & Co. ---------------------------------------------------------------- Name: GPE EXHIBITIONS LTD. (Company No 04784341) Nature of Business: Rent Other Machinery and Equipment Address of Registered Office: Tournament Building, Smisby Road, Ashby De La Zouch, Leicestershire LE65 2UR Date of Appointment: 9 August 2005 Administrator's Name and Address: Andrew T. Clay (IP No 9164), Andrew Michaels & Co Ltd., Concept House, Brooke Street, Cleckheaton, West Yorkshire BD19 3RY CONTACT: GPE EXHIBITIONS LTD. (THE FURNITURE HIRE PEOPLE.COM) Tornimont Building Smisby Road Ashby De La Zouch Leicester LE65 2UR Phone: 01530 564 287 Fax: 01530 564 723 E-mail: info@gpeexhibitions.com Web site: http://www.gpeexhibitions.com ANDREW MICHAELS & CO. LTD. Concept House Brooke Street Cleckheaton Bradford BD19 3RY West Yorkshire Phone: 0870 750 5411 Fax: 0870 750 5412 E-mail: info@andrew-michaels.com GRANADA WINDOWS: First Creditors Meeting Set Next Week ------------------------------------------------------ Notice is hereby given by T. Papanicola, Bond Partners LLP, The Grange, 100 High Street, London N14 6TG, that a Meeting of Creditors of Granada Windows Limited (Company No 04592174), Unit 6, White Lund Industrial Estate, Morecambe, Lancashire LA3 3AY, is to be held at The Crown Plaza Hotel, Ringway Road, Manchester Airport, Manchester M90 3NS, on 30 August 2005, at 11:00 a.m. The Meeting is an initial Creditors' Meeting under paragraph 51 of Schedule B1 to the Insolvency Act 1986. In order to be entitled to vote under Rule 2.38 at the Meeting you must give to me, not later than 12:00 noon on the business day before the day fixed for the Meeting, details in writing of your claim, together with a form of proxy. CONTACT: GRANADA WINDOWS LTD. Northgate, Morecambe, LA3 3AY Phone: 01524 388588 BOND PARTNERS LLP The Grange 100 High Street London N14 6TG Phone: 020 8444 2000 Fax: 020 8444 3400 E-mail: tp@bondpartners.co.uk HARLEQUIN HEATING: Court Okays Liquidation ------------------------------------------ Company Name: HARLEQUIN HEATING LTD. Haldon Tor, Vansittart Road, Torre, Torquay, Devon, TQ2 5BW Phone; 01803 213150 Registration Number: 04300075 Court: Torquay & Newton Abbot Date of Filing Petition: April 14, 2004 No. of Matter: 6 of 2004 Date of Winding-up Order: June 7, 2004 CONTACT: Official Receiver 1st Floor, Cobourg House, Mayflower Street, Plymouth, PL1 1DJ Phone: 01752 635200 Fax: 01752 635222 HENDERSON GROUP: Still on Track to Achieve 2005 Target ------------------------------------------------------ Half-year Highlights (a) operating profit before tax from continuing operations of GBP37.0 million (1H2004: GBP28.7 million), reflecting steady progress in Henderson Global Investors and Towry Law U.K., lower corporate costs and returns on increased cash balances; (b) profit before tax for the discontinued Life Services business in the period from 1 January 2005 to the disposal date 13 April 2005 was GBP16.7 million (1H2004: GBP18.8 million loss after eliminating intra-group profits); (c) profit on ordinary activities before tax from all operations of GBP35.1 million (1H2004: GBP21.2 million) after allowing for loss on disposal of discontinued operations totaling GBP18.6 million (1H2004: GBP11.3 million profit); (d) profit on ordinary activities after tax from all operations of GBP23.7 million (1H2004: GBP5.1 million); (e) Henderson Global Investors operating profit up 5% to GBP38.0 million (1H2004: GBP36.2 million); (f) Henderson Global Investors cost to income ratio improved to 70.6% (1H2004: 71.9%); (g) Henderson Global Investors assets under management of GBP66.5 billion (31 Dec 2004: GBP69.1 billion); and (h) Towry Law U.K. operating profit of GBP1.6 million (1H2004: GBP0.1 million loss). Chief Executive Roger Yates' Report In first half 2005, we made steady progress against our business objectives, including improvements in operating profit and efficiency. We completed the sale of the Life Services business, returned cash to shareholders and strengthened our financial position. Henderson Global Investors operating profit was up 5% in first half 2005 against the same period last year on the back of increased revenues from higher margin products, higher investment income and slightly lower operating expenses. In addition, Henderson Global Investors is on track to reach its 75% annual cost to income target in the short to medium term. The improvement from 71.9% in first half 2004 to 70.6% in first half 2005 was due to slightly lower operating expenses. Total margins on average assets under management increased from 36bps in first half 2004 to 37bps in first half 2005 and net margins from 10bps in first half 2004 to 11bps in first half 2005. The Life Services business contributed GBP16.7 million profit before tax from 1 January 2005 to the disposal date (first half 2004: GBP18.8 million loss after eliminations). This was offset by a loss on disposal based on the adjusted fair value of the Life Services business in first half 2005 of GBP18.6 million (first half 2004: GBP11.3 million profit on disposal of discontinued operations). During the period, we improved the capital position by allocating a lower proportion of the proceeds from the sale of the Life Services business to specific risks in the sale agreement, and by realigning regulatory and working capital requirements. Henderson Global Investors Operating profit before tax was GBP38.0 million, up 5% from GBP36.2 million in first half 2004. This reflects the focus on higher margin products, increased investment income and slightly lower operating expenses. Total fee income in first half 2005 was GBP124.9 million, down 1% from GBP125.8 million in first half 2004 due to slightly lower management fee income (down 2% to GBP95.3 million) and lower transaction fee income (down 14% to GBP13.0 million), largely offset by an increase in performance fees (up 23% to GBP16.6 million). Continued growth in higher margin business produced a more profitable product mix, with the total fee margin for Henderson Global Investors up from 36bps in first half 2004 to 37bps in first half 2005. Investment income increased 38% from GBP3.2 million in first half 2004 to GBP4.4 million in first half 2005, due to higher cash balances. Total operating expenses decreased by 1% to GBP89.8 million in first half 2005, as reductions in business-as-usual costs were partly offset by increased investment in people. The majority of the increase related to variable staff costs such as incentivization arrangements for new investment managers. The reduction in overall expenditure delivered an improvement in the cost to income ratio to 70.6% in first half 2005 compared with 71.9% in first half 2004, and an improvement in net margin from 10bps to 11bps. Total assets under management at the end of first half 2005 were GBP66.5 billion (down 4% on 31 December 2004). Net client outflows of GBP5.6 billion were partly offset by favorable market and exchange rate movements of GBP3.0 billion. The client outflows were due to expected outflows associated with the run-off of the Pearl Group funds and the institutional business. Towry Law U.K. Towry Law U.K. continues to show a steady improvement in performance, and recorded a GBP1.6 million profit in first half 2005 compared with a GBP0.1 million loss in first half 2004. A number of restructuring initiatives undertaken in 2004 have started to show benefits, with lower costs in all areas of the business. Turnover has increased slightly in comparison to first half 2004, despite a 25% reduction in the number of business writers in the Independent Financial Advisory division, difficult corporate markets and softening insurance rates. Towry Law International continues to work with the Hong Kong Securities and Futures Commission to ensure that all legacy product issues are being dealt with appropriately. Corporate office Corporate costs were GBP7.2 million for first half 2005 compared with GBP8.1 million in first half 2004. A substantial reorganization of the corporate office took place in the second quarter of 2005 following the sale of the Life Services business and a number of corporate staff were transferred to the outgoing business or left the Group. Balance Sheet and Liquidity The balance sheet remains strong, with high liquidity and minimal gearing. The Group has adequate provisions in place (GBP127 million at 30 June 2005), which cover a variety of matters such as restructuring costs, legacy product mis-selling and staff defined benefit pension obligations. In line with its stated policy, the Board intends to return capital not needed for the business to shareholders. At 30 June 2005 the balance sheet showed equity shareholder funds of GBP620 million, of which approximately GBP190 million could be described as surplus capital, more than the GBP125 million retained capital reported at the time of the full-year 2004 results. The Board will consider in detail the capital needs of the business and update shareholders on capital planning with the full-year 2005 results in February 2006. Dividend No ordinary dividend is proposed for first half 2005 (1H2004: nil), however, in line with Henderson Group's previous statement, a final dividend is expected to be paid in early 2006 in respect of the second half of 2005. An initial payout ratio of 50% of post tax profits will be targeted, phased one-third interim and two-thirds final dividend. Further guidance on the quantum and timing of the dividend will be provided with the full-year 2005 results in February 2006. The Board of Directors During the year four members retired from the Board - Sir Malcolm Bates and Peter Costain in February 2005, Sir William Wells in June 2005 and Ian Laughlin on completion of the sale of the Life Services business (13 April 2005). Rupert Pennant-Rea succeeded Sir Malcolm Bates as Henderson Group Chairman in March 2005. Outlook for Full Year 2005 Assuming continued benign markets, Henderson Group is on track to meet its financial objectives for 2005. Henderson Global Investors is benefiting from good sales of higher margin products, which should offset margins lost from any reduction in assets under management during 2005. Although we are expecting an increase in costs in second half 2005, profitable revenue growth should enable Henderson Global Investors to reach its targeted annual expense ratio of 75% in the short to medium term. We anticipate Towry Law U.K. will remain profitable in second half 2005, although it is likely to contribute only a small portion of Group profits. Corporate costs should be lower than the levels seen in first half 2005 as a result of lower shareholder servicing and staff costs, and investment income should remain flat. The Group is well capitalized, and we will remain disciplined and prudent in the way we manage that capital. CONTACT: HENDERSON GROUP PLC 4 Broadgate London EC2M 2DA, United Kingdom Phone: +44-20-7454-9779 Fax: +44-20-7818-1820 Web site: http://www.henderson.com Investor Inquiries Gail Williamson Director of Investor Relations Phone: +44 20 7818 5168 E-mail: investor.relations@henderson.com JARVIS PLC: Creditors Participating in Debt Swap Okay Plan ---------------------------------------------------------- The Board of Jarvis plc has disclosed that the Company and the Converting Creditors have signed the key documentation that will allow the Company to effect the Restructuring that Shareholders approved at the Extraordinary General Meeting held on 4 August 2005. The implementation of the Restructuring remains subject to various conditions precedent. The signed documentation includes the consensual restructuring agreement to implement the Debt for Equity Exchange and the Additional Funding Facilities agreement, which provides up to GBP38.5 million of funding facilities to the Group. Conditions to the implementation of these agreements include the launch of the Placing and Open Offer. A further announcement providing details of the timetable and the Placing and Open Offer will be issued shortly. * * * In July, the company reported turnover has fallen to GBP585.7 million (2004: GBP1076.1 million), principally due to the transfer of rail maintenance to Network Rail with effect from 1 April 2004, a reduction in track renewals arising primarily from the slowing of work on the West Coast Main Line and the decision to withdraw from bidding for all construction and FM contracts. The reported loss before tax is GBP353.8 million (2004: GBP256.0 million loss) of which GBP246.8 million is exceptional and relates to provisions for construction losses, write off of goodwill in the roads businesses, costs incurred in relation to the restructuring of the Group and provisions in respect of aged debtor balances and certain work in progress. The Directors believe that the successful completion of the restructuring announced on 12 July and the continuation of the Group's strategy of focusing on the core businesses of Rail Plant and Road, aligned with further cost saving measures and exit from or stabilization of the non core activities of construction and FM, will provide a much improved base from which to develop the business. CONTACT: JARVIS PLC 24 Britton St. London EC1M 5UA United Kingdom Phone: +44-20-7017-8000 Fax: +44-20-7017-0083 Web site: http://www.jarvisplc.com Bridget Fury, Merlin Phone: 020 7653 6620 JH AND CJN: Meeting of Creditors Next Week ------------------------------------------ Notice is hereby given that a Meeting of the Creditors of the JH and CJN Williams Partnership is to be held at KPMG LLP, 2 Cornwall Street, Birmingham B3 2DL, on 6 September 2005, at 10:00 a.m., to consider the Administrators' proposals under section 23(1) of the Insolvency Act 1986 and to consider establishing a Creditors' Committee. A Creditor will be entitled to vote only if a written statement of claim is given to me at the above address not later than 12:00 noon on 5 September 2005 and if the claim is admitted for voting purposes. Any proxies that are intended to be used must be submitted to me by the date of the Meeting. A Company may vote either by proxy or through a representative appointed by Board Resolution. A W Graham, Joint Administrator CONTACT: KPMG LLP 2 Cornwall Street Birmingham B3 2RT Phone: (0121) 232 3000 Fax: (0121) 232 3500 Web site: http://www.kpmg.co.uk KENT INTERNATIONAL: Calls in Administrators from Grant Thornton --------------------------------------------------------------- Name: KENT INTERNATIONAL BUSINESS PARK LIMITED (Company No 02521945) Nature of Business: Airport Business Park Registered Office of Company: Grant Thornton UK LLP, Grant Thornton House, Melton Street, London NW1 2EP Date of Appointment: 5 August 2005 Joint Administrators' Names and Address: Andrew David Conquest, Joseph Peter McLean and Steven John Akers, (IP Nos 5329, 8903 and 6460), of Grant Thornton UK LLP, Grant Thornton House, Melton Street, London NW1 2EP CONTACT: GRANT THORNTON U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP Phone: 020 7383 5100 Fax: 020 7383 4715 Web site: http://www.grant-thornton.co.uk LAMPS DIRECT: Creditors Meeting Set Next Week --------------------------------------------- Notice is hereby given by T. Papanicola, Bond Partners LLP, The Grange, 100 High Street, London N14 6TG, that a Meeting of Creditors of Lamps Direct Limited (Company No 03939219), Hallidays, Portland Buildings, 127-129 Portland Street, Manchester, Lancashire M1 4PZ, is to be held at The Crown Plaza Hotel, Ringway Road, Manchester Airport, Manchester M90 3NS, on 30 August 2005, at 1:00 p.m. The Meeting is an initial Creditors ' Meeting under paragraph 51 of Schedule B1 to the Insolvency Act 1986. In order to be entitled to vote under Rule 2.38 at the Meeting you must give to me, not later than 12:00 noon on the business day before the day fixed for the Meeting, details in writing of your claim along with a form of proxy. T Papanicola, Administrator CONTACT: BOND PARTNERS LLP The Grange 100 High Street London N14 6TG Phone: 020 8444 2000 Fax: 020 8444 3400 E-mail: tp@bondpartners.co.uk MANSTON CAR: Administrators from Grant Thornton Enter Firm ---------------------------------------------------------- Name: MANSTON CAR PARKS LIMITED (Company No 02922065) Nature of Business: Airport Car Park Registered Office of Company: Grant Thornton UK LLP, Grant Thornton House, Melton Street, London NW1 2EP Date of Appointment: 5 August 2005 Joint Administrators' Names and Address: Andrew David Conquest, Joseph Peter McLean and Steven John Akers, (IP Nos 5329, 8903 and 6460), of Grant Thornton UK LLP, Grant Thornton House, Melton Street, London NW1 2EP CONTACT: GRANT THORNTON U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP Phone: 020 7383 5100 Fax: 020 7383 4715 Web site: http://www.grant-thornton.co.uk MEDINET CORPORATION: Appoints Bennett Verby Administrator --------------------------------------------------------- Name: MEDINET CORPORATION LIMITED (Company No 3767053) Trading Name: Pharmalogical Nature of Business: Wholesales of Pharmalogical Products. Registered Office of Company: 12 Cringle Drive, Cheadle, Stockport SK8 1JJ Trade Classification: Division 3-15 Other Wholesale Date of Appointment: 16 August 2005 Administrator's Name and Address: Vincent A. Simmons, Bennett Verby, 7 St Petersgate, Stockport, Cheshire SK1 1EB CONTACT: BENNETT VERBY 7 St Petersgate Stockport Cheshire SK1 1EB Phone: 0161 477 9345 Fax: 0161 429 7224 E-mail: v.simmons@bennettverby.co.uk MG ROVER: Phoenix Four Promise to Turn over Castle Sale Proceeds ---------------------------------------------------------------- The sale of a 172-year-old West Midland castle could reportedly benefit about 6,000 workers who lost their jobs when MG Rover collapsed in April. According to the Telegraph, Peter Beale, one of the Phoenix Four, has promised that proceeds from the disposal of the Studley Castle would be endorsed to the trust fund for the former workers. In 2000, Mr. Beale together with John Towers, Nick Stephenson and John Edwards bought MG Rover and earned over GBP30 million before the carmaker fell into administration. The four earlier promised to hand over to the trust fund the millions of pounds worth of assets controlled by Rover's parent Phoenix Venture Holdings. So far, they have just paid GBP5,000 each to cover the company's running costs. Mr. Beale said: "We are pleased to have completed the successful sale of Studley Castle. This sale is part of our process of disposing of all of the PVH assets to allow us to create value for the Longbridge employee trust." Studley Castle was sold for GBP4.5 million to an entity controlled by Firoz Kassam, owner of Oxford United FC. The transaction is said to have involved dealerships and GBP25 million-worth of collaterized cash. Meanwhile, lawyers representing the four have reportedly advised them not to endorse any more assets until the Department of Trade & Industry releases a report on their inquiry into Rover's crisis. Mr. Beale added: "We are currently acting under legal advice not to transfer our shareholdings into the trust, but that advice is under constant review as the terms of reference and progress of the current DTI inquiry become clearer." This move has angered the Transport and General Workers' Union. Regional secretary Gerard Coyne said: "Rover workers have been badly let down here in another twist in a tale of greed. They were led to believe this fund would have substantial monies paid into it by the Phoenix Four." CONTACT: MG ROVER GROUP LIMITED Longbridge, Bickenhill Birmingham B31 2TB, United Kingdom Phone: +44-121-475-2101 Fax: +44-121-482-2403 Web site: http://www1.mg-rover.com MISYS PLC: Proposed Bonus Scheme for Execs May Spark Revolt ----------------------------------------------------------- Shareholder rebellion reportedly looms at Misys plc as the company considers paying two managers a bonus if either of them would not be appointed chief executive. According to the Financial Times, some key investors plan to vote against the proposal at the annual meeting on September 13. One unnamed shareholder was quoted as saying the proposal sets a "dangerous precedent." The software firm eyes to pay a GBP1.2 million bonus to healthcare head Tom Skelton and banking head Ivan Martin if either of them would not get the top post. Misys is said to be concerned that they may leave the company if they would not be chosen to replace current Chief Executive Kevin Lomax. A spokesman for the company noted the proposed bonus scheme involves tough performance targets. "The performance targets are stretching and some of our largest shareholders have signaled support. We have been proactive with investors and remain in discussions with them." CONTACT: MISYS PLC Burleigh House, Chapel Oak, Salford Priors, Evesham, WR11 8SP, United Kingdom Phone: 44 (0)1386 871373 44 (0)1386 871045 E-mail: group.secretariat@misys.co.uk Web site: http://www.misys.com PAREX SYSTEMS: Collapses into Liquidation ----------------------------------------- Company Name: PAREX SYSTEMS LTD. 65 Trelawny Road, Plympton, Plymouth, Devon, PL7 4LJ Phone: 01752336405 Registration Number: 03241318 Court: High Court of Justice Date of Filing Petition: May 11, 2005 No. of Matter: 003078 of 2005 Date of Winding-up Order: June 29, 2005 CONTACT: Official Receiver 1st Floor, Cobourg House, Mayflower Street, Plymouth, PL1 1DJ Phone: 01752 635200 Fax: 01752 635222 PREMIER YACHT: Court Okays Liquidation -------------------------------------- Company Name: PREMIER YACHT CLEANING SERVICES LIMITED Knights Chambers, The Square, Wickham, Hampshire, PO17 5JW Phone: 0845 675 6591 Fax: 0870 744 7490 Registration Number: 4147271 Court: Portsmouth Date of Filing Petition: June 15, 2005 No. of Matter: 27 of 2005 Date of Winding-up Order: August 8, 2005 CONTACT: Official Receiver The Quay, 30 Channel Way, Southampton, SO14 3QQ Phone: 023 8030 3100 Fax: 023 8030 3177 RE LTD.: Winding-up Gets Go Signal ---------------------------------- Company Name: EIGHTACRE LTD. 8 Baker Street, London, W1U 3LL Phone: 01268 592000 Registration Number: 01938809 Court: High Court of Justice Date of Filing Petition: June 23, 2005 No. of Matter: 004159 of 2005 Date of Winding-up Order: August 10, 2005 CONTACT: Official Receiver 21 Bloomsbury Street, London, WC1B 3SS Phone: 020 7637 1110 Fax: 020 7637 6390 ROYAL & SUNALLIANCE: Unveils Scrip Dividend Scheme -------------------------------------------------- Royal & SunAlliance Insurance Group plc offers shareholders the opportunity to take new ordinary shares, credited as fully paid, in lieu of cash dividends, by participating in a Scrip Dividend Scheme. In relation to the interim dividend for 2005, the price of new ordinary shares under the Scrip Dividend Scheme has been set at 94.1 pence. This is the average of the Company's middle market closing price for the five consecutive dealing days commencing on the ex-dividend date of 17 August 2005. Shareholders wishing to participate in the proposed Scrip Dividend Scheme should return their mandate forms to Lloyds TSB Registrars to arrive no later than 1 November 2005. * * * In August, Royal & SunAlliance reported operating result of GBP329 million for the six months ended June 30, 2005, an increase of 145 million on H1 2004. Profit after tax amounted to GBP195 million, up from GBP82 million in H1 2004. Andy Haste, Group Chief Executive, said: "It has been a good first half of the year, with strong performances from our Core businesses and further progress in the U.S. We continue to deliver on our strategic objectives and the results demonstrate the underlying strength of the Group and its ability to achieve sustainable returns." Royal & SunAlliance has also reportedly decided to transfer its employees from pensions based on final salaries to packages based on average career earnings. This is said to be aimed at cutting about GBP180 million from the company's GBP500 million pension fund deficit. The measure is part of the company's ongoing restructuring, which comes amid mounting claims and weak investments. The company is said to have improved its risk profile, but it has not yet totally eliminated the threat of potentially large claims in the U.S. The latter could dampen interest of prospective buyers, according to analysts. In June, Royal & SunAlliance sold a 20% stake in investment bank Rothschild and fought off a potential takeover by Andrew Regan. CONTACT: ROYAL & SUNALLIANCE INSURANCE GROUP PLC 30 Berkeley Sq. London W1J 6EW, United Kingdom Phone: +44-20-7636-3450 Fax: +44-20-7636-3451 Web site: http://www.royalsunalliance.com T G I COMMERCIAL: Calls in Administrators from Numerica ------------------------------------------------------- Company Names: T G I COMMERCIAL LIMITED (Company No 04807739) T G I CONSULTANCY SERVICES LIMITED (Company No 03704177) T G I RECRUITMENT LIMITED (Company No 04327800) Nature of Businesses: Recruitment Consultancy Trade Classification: 38 Date of Appointment: 12 August 2005 Administrators' Names and Address: Colin Ian Vickers and Nicholas Hugh O'Reilly (IP Nos 008309 and 008953), both of 4th Floor, Southfield House, 11 Liverpool Gardens, Worthing, West Sussex BN11 1RY CONTACT: NUMERICA 4th Floor, Southfield House, 11 Liverpool Gardens, Worthing, West Sussex Phone: 01903 222500 Fax: 01903 207009 Web site: http://www.numerica.biz TOHO LIMITED: Baker Tilly Administrators Move in ------------------------------------------------ Name: TOHO LIMITED (Company No 04482939) Nature of Business: Restaurant and Bar Trade Classifications: 45 and 49 Date of Appointment: 11 August 2005 Administrators' Names and Addresses: Adrian David Allen (IP No 8740), of Baker Tilly, 2 Whitehall Quay, Leeds LS1 4HG and Graham Paul Bushby (IP No 8736), of Baker Tilly, Exchange House, 5th Floor, 446 Midsummer Boulevard, Central Milton Keynes MK9 2EA. CONTACT: BAKER TILLY 5th Floor, Exchange House, 446 Midsummer Boulevard, Central Milton Keynes MK9 2EA Phone: 01908 687 800 Fax: 01908 687 801 Web site: http://www.bakertilly.co.uk ********* 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. Larri-Nil Veloso, Ma. Cristina Canson, Liv Arcipe, Julybien Atadero and Jay Malaga, Editors. Copyright 2005. 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$575 per half-year, delivered via e-mail. 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