/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/051221.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 Wednesday, December 21, 2005, Vol. 6, No. 252 Headlines C Z E C H R E P U B L I C AERO VODOCHODY: Ten Bidders Qualify; Winner Known May G E R M A N Y AUSMEYER & GERLING: Under Bankruptcy Administration BETEILIGUNGSGESELLSCHAFT WUEHRMANN: Court to Verify Claims March CARPET CONCEPT: Creditors' Claims Due Next Month DIE 2WEI: Succumbs to Bankruptcy DR. UPMEIER: Proofs of Claim Due February ESSD-SICHERHEITSDIENSTE: Aachen Business Goes Bust EURO-GRUPPE AG: Three more Subsidiaries Fall EW MULTI: Court Appoints Administrator from Kuebler FEUER UND FLAMME: Claims Verification Set May KARSTADTQUELLE AG: Renews Partnership with TPG LINEAS CONSULTING: Falls into Bankruptcy PROSIEBENSAT.1 MEDIA: Ruling on Springer Offer Out Next Week WUEHRMANN AM BRILL: Bremen Court Appoints Administrator H U N G A R Y NABI RT: Morgan Stanley Divests Stake Acquired in September I T A L Y ALITALIA SPA: GE Grants Ailing Airline US$445 Million Loan N E T H E R L A N D S FORD CAPITAL: Fitch Downgrades Senior Debt Rating to BB+ GARANTIBANK INTERNATIONAL: Fitch Affirms Long-term BB+ Rating INDOVER BANK: Fitch Changes Outlook to Positive ROYAL SHELL: Buys back 1 Million 'A' Shares N O R W A Y PETROLEUM GEO-SERVICES: Secures US$1 Billion Credit line R U S S I A ATNYA-AGRO-KHIM-SERVICE: Under Bankruptcy Supervision CORALL DIAMOND: Hires N. Nikitina Insolvency Manager IZHEVSK-GAS: Under External Bankruptcy Procedure IZHEVSKIY: Claims Filing Period Ends December 29 IZH-RUS': Insolvency Manager Takes over Firm MELEUZOVSKIY: Bashkortostan Court Opens Bankruptcy Proceedings MINE MANAGEMENT: Bankruptcy Hearing Resumes February PRIMOR-AUTO-BRIDGE: Declared Insolvent SEVERO-VOSTOK-STROY-INDUSTRIYA: Succumbs to Bankruptcy WARM CONTINENT: Undergoes Bankruptcy Supervision Procedure YUKOS OIL: Hearing on US$475 Mln Bank Claim Resumes Today S P A I N CABLEUROPA SA: Credit Facility Syndication Raises EUR755 Mln CABLEUROPA SA: Fitch Affirms B Rating; Outlook Positive S W E D E N ABB LTD.: Court Okays CE's Settlement with Hartford, First State CONCORDIA BUS: To Present Third-quarter Results Tomorrow CORRAL INVESTMENT: Gets Ba3 Corporate Family Rating from Moody's SKANDIA INSURANCE: Names Nominating Committee Chair S W I T Z E R L A N D CONVERIUM AG: Reports US$6.9 Million Net Loss for Q3 CONVERIUM AG: Restates Accounts Following Internal Review CONVERIUM AG: On Rating Watch Negative Following Restatement SWISS INTERNATIONAL: Reaches New Labor Deal with Cabin Crew U K R A I N E ASKLEPIJ: Goes into Liquidation BORIVSKA AGROHIMIYA: Liquidator Steps in MERCURY: Gives Creditors Until Friday to File Claims MINERALINVEST: Bankruptcy Supervision Begins NAFTOGAZTRADE LTD.: Under Bankruptcy Supervision NEPTUN: Insolvency Manager Takes over Helm PARTIZANSKIJ ELEVATOR: Creditors' Claims Due this Week SHOSTKA' AGROHIM: Succumbs to Bankruptcy UKRAINA: Declared Insolvent VIKTORIYA: Court Appoints Temporary Insolvency Manager U N I T E D K I N G D O M ALPHA CAPITAL: Hires Liquidator from Ian Franses Associates APEX FIRE: Moore Stephens Liquidators Move in APNIGAS YORKSHIRE: Files for Liquidation ARM PROPERTIES: Newman & Partners Liquidators Enter Firm BERKELEY BERRY: Merging Financial Advisory Businesses BESSON MUSICAL: Calls in Administrators from Grant Thornton BOXWICK LIMITED: Hires PricewaterhouseCoopers Liquidator CARLBRITE INVESTMENTS: Liquidator from Harrisons Moves in CCS CONTRACTS: Administrators from Begbies Traynor Move in CYBER-TRADERS: Golf Equipment Distributor Liquidates FEDERAL-MOGUL: Cooper Industries to Resolve Abex Asbestos Claims FRIARGATE HOLDINGS: Appoints Administrator HOLIDAY CENTRE: Files for Liquidation LANGBAR INTERNATIONAL: Names Recovery Expert Executive Chairman LANGBAR INTERNATIONAL: Drops Proposed IDC Joint Venture LIAM CHIVERS: Appoints Liquidator MIDLAND RESOURCE: Creditors Meeting Set Thursday NETWORK RAIL: Regulator Sets Revenue Requirement at GBP20 Bln NETWORK RAIL: Signs Multi-million-pound National Steel Contracts OCTONE LIMITED: Appoints Administrators from Tenon Recovery OFF SHOOT: Names BDO Stoy Hayward Administrator O.H.R. LTD.: Files for Liquidation PEAK ENTERTAINMENT: Posts US$779,199 Net Loss in Third Quarter PHENOMIND PLC: Hires Begbies Traynor to Liquidate Business RENTOKIL INITIAL: Tackles Pension Scheme Deficit R. SHAYLER & SON: Goes into Liquidation SANITY GROUP: Names KPMG Administrator SIMRON CONSTRUCTION: Calls in Liquidator SWEDISH WINDOW: Creditors Meeting Set Thursday THIEFBEATERS LIMITED: Appoints Cooper Parry Administrator UNICORN DESIGN: Succumbs to Liquidation UNWINS WINE: Bank Brings in Administrator VALCO UK: Appoints Liquidator from Begbies Traynor WALSALL PRINT: Administrators from PKF Move in ********* =========================== C Z E C H R E P U B L I C =========================== AERO VODOCHODY: Ten Bidders Qualify; Winner Known May ----------------------------------------------------- The steering committee spearheading the sale of Aero Vodochody has sought the disqualification of three bidders for failing to meet the bidding criteria, Budapest Business Journal says. The paper identified them as Silver Bell Holdings Ltd., Prague Aerospace Center Consortium, and the group of Greywolf Capital Management LP and Odien Asset Management. Privatization agency Ceska konsolidacni agentura (CKA) has the final say on the matter. Ten bidders qualified for the tender, according to CKA spokesman Jiri Pekarek. They are Aero Kilcullen Consortium, Eco- Investment, HTC Holding, Oakfield, Piaggio Aero Industries Group and Slovacke strojirny, Benson RPG, PPF and J&T, Tav-Zeveta and Cesky letecky prumysl. According to Euro Online, Cesky letecky prumysl is made up of local arms maker Omnipol and U.K.'s BAE Systems. Mr. Pekarek says a total of 12 groups beat the December 14 deadline, while one submitted after it. The latter was one of those recommended for disqualification, he said. The government will evaluate the bids according to national security interest, since AV supplies the country's armed forces. It primarily makes the L-39, L-59, L-159 military planes, but recently it secured certification to build the Ae270 civilian aircraft. Bidders are understood to be interested in AV's real properties, which include a runway, more than its plane making operation. The qualified bidders are required to submit preliminary bids in January; the cabinet must pick a winner by May. The government took over Boeing's share in the company in October 2004 citing dissatisfaction over the latter's inability to secure enough orders for Aero. It then attempted to restructure the firm by writing off debt, but the European Commission thwarted the plan for being an illegal state aid. The company expects to post CZK500 million in losses this year, in contrast to last year's CZK295 million profit. CONTACT: AERO VODOCHODY A.S. 250 70 Odolena Voda Phone: +420 25576 1111 Fax: +420 25576 2111 +420 25576 5999 Web site: http://www.aero.cz ============= G E R M A N Y ============= AUSMEYER & GERLING: Under Bankruptcy Administration --------------------------------------------------- The district court of Bremen opened bankruptcy proceedings against Ausmeyer & Gerling KG on December 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 7, 2006 to register their claims with court-appointed provisional administrator Frank- Michael Rhode. Creditors and other interested parties are encouraged to attend the meeting on January 26, 2006, 9:45 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 March 30, 2006, 9:30 a.m. at the same venue. CONTACT: AUSMEYER & GERLING KG Fedelhoren 89, 28203 Bremen Contact: Rolf-Peter Gerling, Manager Contrescarpe 57, 28195 Bremen Frank-Michael Rhode, Administrator Graf-Moltke-Str. 62, 28211 Bremen Phone: 0421/3485212/213 Fax: 0421/341078 BETEILIGUNGSGESELLSCHAFT WUEHRMANN: Court to Verify Claims March ---------------------------------------------------------------- The district court of Bremen opened bankruptcy proceedings against Beteiligungsgesellschaft Wuehrmann mbH on December 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 21, 2006 to register their claims with court-appointed provisional administrator Edgar Gronda. Creditors and other interested parties are encouraged to attend the meeting on January 19, 2006, 11:30 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 March 16, 2006, 10:00 a.m. at the same venue. CONTACT: BETEILIGUNGSGESELLSCHAFT WUEHRMANN mbH Am Brill 2-4, 28195 Bremen Contact: Karin Wuehrmann, Manager Esslinger Weg 8, 28816 Stuhr Edgar Gronda, Administrator Domshof 18-20, 28195 Bremen Phone: 0421/3686-0 Fax: 0421/3686-100 CARPET CONCEPT: Creditors' Claims Due Next Month ------------------------------------------------ The district court of Aachen opened bankruptcy proceedings against Carpet Concept Team GmbH on December 5. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until January 20, 2006 to register their claims with court-appointed provisional administrator Volker Quinkert. Creditors and other interested parties are encouraged to attend the meeting on February 21, 2006, 8:00 a.m. at the district court of Aachen, Augustastrasse 78-80, 52070 Aachen, 2. Etage, Sitzungssaal 21, 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: CARPET CONCEPT TEAM GmbH Gruenstr. 29, 52428 Juelich Contact: Elfriede Leuchtenberg, Manager Duesseldorfer Str. 20, 52441 Linnich Volker Quinkert, Administrator Brucknerallee 6, 41236 Monchengladbach DIE 2WEI: Succumbs to Bankruptcy -------------------------------- The district court of Bremen opened bankruptcy proceedings against Die 2WEI AUTOHAUS Bremen GmbH & Co. KG on December 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 21, 2006 to register their claims with court-appointed provisional administrator Detlef-Helmut Stuermann. Creditors and other interested parties are encouraged to attend the meeting on January 19, 2006, 2:00 p.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 March 16, 2006, 9:00 a.m. at the same venue. CONTACT: DIE 2WEI AUTOHAUS BREMEN GmbH & Co. KG Kornstr. 255, 28201 Bremen Contact: Fred Georg Sauerbier, Manager Hahnenfussweg 19, 26215 Wiefelstede Detlef-Helmut Stuermann, Administrator Domshof 18-20, 28195 Bremen Phone: 0421/3686-0 Fax: 0421/3686-100 DR. UPMEIER: Proofs of Claim Due February ----------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against Dr. Upmeier Grundstuecksbeteiligungs-KG on December 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 23, 2006 to register their claims with court-appointed provisional administrator Udo Feser. Creditors and other interested parties are encouraged to attend the meeting on January 12, 2006, 10:05 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 on April 20, 2006, 10:00 a.m. at the same venue. CONTACT: DR. UPMEIER GRUNDSTUECKSBETEILIGUNGS-KG Mexikoplatz 4,14163 Berlin Udo Feser, Administrator Uhlandstr. 165/166, 10719 Berlin ESSD-SICHERHEITSDIENSTE: Aachen Business Goes Bust -------------------------------------------------- The district court of Aachen opened bankruptcy proceedings against ESSD-Sicherheitsdienste GmbH on December 5. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until January 13, 2006 to register their claims with court-appointed provisional administrator Johannes Klefisch. Creditors and other interested parties are encouraged to attend the meeting on February 6, 2006, 10:30 a.m. at the district court of Aachen, Augustastrasse 78-80, 52070 Aachen, 1. Etage, Sitzungssaal 14, 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: ESSD-SICHERHEITSDIENSTE GmbH Lindenstr. 14, 52399 Merzenich Contact: Sabrina Knaup, Manager Johannes Klefisch, Administrator Rotter Bruch 6, 52068 Aachen EURO-GRUPPE AG: Three more Subsidiaries Fall -------------------------------------------- All companies under the umbrella of investment firm Euro-Gruppe AG are now undergoing insolvency proceedings, Suddeutsche Zeitung says. Three more subsidiaries have followed AVB Allgemeine Anlagenvermittlungs- und Verwaltungsgesellschaft, the first unit to succumb to insolvency. They are GOJ Immobilienhandel, Lenz and Schober Immobilien, the paper says. On December 14, TCR-Europe hinted Euro-Gruppe, the parent of these companies, may be next to collapse. Earlier this year it nearly succumbed to 140 temporary writs of execution that were eventually settled. Euro-Gruppe's investors number about 40,000, according to the paper. It is feared their money is gone; believed to be used to settle the group's liabilities, including the writs. The group sells high-risk property investments as private retirement provision. CONTACT: EURO-GRUPPE Woerthstrasse 13/15 97082 Wuerzburg Phone: (09 31) 40404 Fax: (09 31) 4040-500 E-mail: info@euro-gruppe.de Web site: http://www.euro-gruppe.de EW MULTI: Court Appoints Administrator from Kuebler --------------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against EW Multi Marketing Service GmbH on December 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 23, 2006 to register their claims with court-appointed provisional administrator Sebastian Laboga. Creditors and other interested parties are encouraged to attend the meeting on January 12, 2006, 10:10 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 on April 20, 2006, 10:05 a.m. at the same venue. CONTACT: EW MULTI MARKETING SERVICE GmbH Moosrosenstr. 25, 12347 Berlin Sebastian Laboga, Administrator Kuebler Einemstr. 24, 10785 Berlin Web site: http://www.Kuebler-gbr.de FEUER UND FLAMME: Claims Verification Set May --------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against Feuer und Flamme Ausstellungsgesellschaft mbH on December 5. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 3, 2006 to register their claims with court- appointed provisional administrator Joachim Voigt-Salus. Creditors and other interested parties are encouraged to attend the meeting on January 31, 2006, 9:25 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 on May 2, 2006, 9:26 a.m. at the same venue. CONTACT: FEUER UND FLAMME AUSSTELLUNGSGESELLSCHAFT mbH Karntener Str. 23,10827 Berlin Joachim Voigt-Salus, Administrator Rankestrasse 33, 10789 Berlin KARSTADTQUELLE AG: Renews Partnership with TPG ---------------------------------------------- Troubled retail giant KarstadtQuelle AG has renewed its parcel distribution contract with TPG Post Parcel Service, Noticias Info says. The 5-year, EUR100 million contract will see TPG, a unit of TNT's mail division, provide home delivery service to consumers and process returns for KarstadtQuelle units Quelle Nederland B.V., Neckermann Nederland B.V. and Bonaparte beginning 2006. TPG has been the parcel distributor for several KarstadtQuelle firms. KarstadtQuelle decided to renew the contract after conducting a thorough review of TPG's services. Harry Koorstra, TNT's Board of Management member and head of mail activities, said: "We are proud that KarstadtQuelle has chosen TNT as a network distribution partner for the next five years. I am convinced that TPG Post Parcel Service will offer KarstadtQuelle customers the best quality and complete service. "This contract win is an excellent example of our refined strategy, which focuses on networks. TNT is clearly successful at designing, implementing and running delivery network businesses." Gregor Blauermel, KarstadtQuelle's Mail Order Logistics/Services manager, added: "Following our positive experiences so far, we want to commit to a long-term partnership with TPG Post for distribution in the Netherlands." TPG Post Parcel Service was created in 1994 as a business unit of TPG Post, a company with more than 200 years of experience in collecting, sorting and distributing parcels. * * * Based in Theodor-Althoff-Str. 2, D-45133 Essen, KarstadtQuelle AG -- http://www.karstadtquelle.com-- is Germany's largest department store and mail order group. The group has annual sales of EUR13.5 billion and employs around 90,000 employees locally and abroad. The retailer has been suffering from sluggish consumer consumption and high unemployment rate in Germany. KarstadtQuelle posted an EBITDA of -EUR428 million in 2004. The group is currently restructuring its operations, selling off non-core assets and implementing costs saving measures. Because of the positive performance of the "KarstadtQuelle Neu" program, the company expects operating EBITDA of over EUR500 million in 2005. CONTACT: KARSTADTQUELLE AG Theodor-Althoff-Str. 2 D-45133 Essen Phone: +49-201-727-1 Fax: +49-201-727-5216 Web site: http://www.karstadtquelle.com TPG POST PARCEL SERVICE Neptunesstraat 2-20, The Netherlands Web site: http://www.tpgpost.com LINEAS CONSULTING: Falls into Bankruptcy ---------------------------------------- The district court of Hamburg opened bankruptcy proceedings against LINEAS Consulting GmbH on December 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until January 20, 2006 to register their claims with court-appointed provisional administrator Peter- Alexander Borchardt. Creditors and other interested parties are encouraged to attend the meeting on February 17, 2006, 10:20 a.m. at the district court of Hamburg, Insolvenzgericht, Sievekingplatz 1, 20355 Hamburg, 4. Etage, Anbau, Saal B 405, 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: LINEAS CONSULTING GmbH Heidenkampsweg 75-77, 20097 Hamburg Contact: Wolfgang Wollert, Manager Blumenau 163, 22089 Hamburg Peter-Alexander Borchardt, Administrator Deichstrasse 1, 20459 Hamburg Phone: 040/3760100 PROSIEBENSAT.1 MEDIA: Ruling on Springer Offer Out Next Week ------------------------------------------------------------ The chief of Germany's Cartel Office is still hesitant to approve Axel Springer's takeover of ProSiebenSat.1 Media AG, the Associated Press says. Ulf Boege told Frankfurter Allgemeine Zeitung recently he is not convinced the takeover will not fortify Springer's dominance in the media market. The Cartel Office, whose job is to prevent companies from gaining too much pricing power in sectors like advertising, believes a larger Springer will create a duopoly with Bertelsmann AG, Germany's other leading media conglomerate. Although Bertelsmann's RTL Group is Europe's largest TV, radio and production company, unlike Springer it holds no dominant position in the market for popular newspapers and national advertising. Mr. Boege said his office will reveal its decision on the takeover on Dec. 27. He anticipates Springer to challenge the ruling. "We apparently have different views on the matter. It could in the end be decided by a judge," he told the Frankfurter. Springer has also recently submitted an amended takeover plan to the Commission to Investigate Media Concentration to address concerns raised by television regulators. According to the Frankfurter, the government can overrule the Cartel Office, but not the media commission. Springer already controls a majority stake in ProSiebenSat.1, which it bought from a group of investors led by Haim Saban for EUR3.5 billion. ProSiebenSat.1 was formed in 2000 with the merger of Germany's leading broadcasters ProSieben Media AG and Sat.1. It is the largest and most successful television corporation in Germany with four stations -- Sat.1, ProSieben, kabel eins and N24. CONTACT: PROSIEBENSAT.1 MEDIA AG Medienallee 7 85774 Unterfohring Phone: +49 (89) 95 07-11 80 Fax: +49 (89) 95 07-11 84 AXEL SPRINGER VERLAG AG Axel-Springer-Str. 65 10888 Berlin, Germany Phone: +49-30-2591-0 Web site: http://www.asv.de WUEHRMANN AM BRILL: Bremen Court Appoints Administrator ------------------------------------------------------- The district court of Bremen opened bankruptcy proceedings against Wuehrmann am Brill GmbH+Co. KG on December 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 21, 2006 to register their claims with court-appointed provisional administrator Edgar Gronda. Creditors and other interested parties are encouraged to attend the meeting on January 19, 2006, 11:30 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 March 16, 2006, 10:00 a.m. at the same venue. CONTACT: WUEHRMANN AM BRILL GmbH+Co. KG Am Brill 2-4, 28195 Bremen Contact: Karin Wuehrmann, Manager Esslinger Weg 8, 28816 Stuhr-Varrel Edgar Gronda, Administrator Domshof 18-20, 28195 Bremen Phone: 0421/3686-0 Fax: 0421/3686-100 ============= H U N G A R Y ============= NABI RT: Morgan Stanley Divests Stake Acquired in September ----------------------------------------------------------- U.S. investment bank Morgan Stanley has cut its stake in troubled bus maker Nabi Rt. to 4.1% from 6.8%, Bloomberg News says. The sale comes just a few months after the bank bought the stake from an unidentified seller on September 29. It is also a big blow to the company's effort to attract moneyed investors. In May, Nabi sold a third of its shares and 90% of its U.S. unit to creditors that include HSBC Holdings Plc and OTP Bank Rt. to reduce debt by US$43 million. Since then, CEO Andras Racz has been trying to find buyers for the rest of Nabi. * * * Nabi Rt in May agreed in principle with financiers to restructure approximately US$103 million short-term debt and other banking facilities. Under the agreement, the financiers agreed to reduce their debt to US$60 million, with a portion of such reduction converted to equity in the form of the financiers acquiring a 90% equity interest in NABI Inc. (NABI Rt.'s main operating subsidiary) and up to 33% equity interest in NABI Rt. The reduced debt will be classified as long term and will have maturities of 5 to 8 years. All warrants formerly issued by NABI Rt. to the financiers will also be cancelled. On completion of the restructuring, NABI Inc. will be the sole borrower of US$60 million reduced debt. NABI Rt will be free of debt, but will guarantee repayment of up to US$6.5 million of NABI Inc.'s debt, secured by a first lien on all of NABI Rt.'s real estate assets. Nabi will ensure the continued supply of steel shells, chassis, parts and service from Hungary to the U.S. business. It will sell assets and businesses, the proceeds of which will be used to reduce debt. CONTACT: NABI BUS INDUSTRIES RT Ujszasz u. 45. 1165 Budapest, Hungary Phone: + (36-1) 401-7399 Fax: + (36-1) 407-2931 E-mail: nabihq@nabi.hu Web site: http://www.nabi.hu Andras Bodor, Corporate Affairs Director Phone: +36-1-401-7100 E-mail: bodor@nabi.hu ========= I T A L Y ========= ALITALIA SPA: GE Grants Ailing Airline US$445 Million Loan ---------------------------------------------------------- Ailing national carrier Alitalia S.p.A. has taken a US$445 million loan from GE Corporate Banking, says Reuters. The loan is part of Alitalia's 2005-2008 turnaround plan aimed at returning the carrier to profit. The loan is payable in eight years and secured by the carrier's 38 aircraft. The airline recently completed its much-needed capital hike, which raised more than a billion euros. The rights issue and the subsequent sale of part of the government's stake, reduced the latter's shareholding to 49.9%. This reduction is one of the conditions set by the European Commission when it approved a government-guaranteed bridging loan in July last year. About the Company Headquartered in Viale A. Marchetti 111, 00148 Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it-- generates more than EUR4 billion in annual revenue and employs more than 20,000 people. As of December 2004, its net debt stood at EUR1.76 billion in 2004. Alitalia flies to about 80 destinations in more than 60 countries from hubs in Rome and Milan and operates a fleet of about 185 aircraft. Despite a EUR1.4 billion state- backed restructuring in 1997 and a EUR1.4 billion capital injection two years ago, it remains financially troubled. It has posted a profit only four times in the past 16 years. CONTACT: ALITALIA S.p.A. Viale A. Marchetti 111 00148 Rome, Italy Phone: +39 06 6562 2151 Fax: +39 06 6562 4733 Web site: http://www.alitalia.it ===================== N E T H E R L A N D S ===================== FORD CAPITAL: Fitch Downgrades Senior Debt Rating to BB+ -------------------------------------------------------- Fitch Ratings has downgraded the issuer default rating (IDR) and senior unsecured debt ratings of Ford Motor Company, Ford Credit Company and affiliate ratings to 'BB+' from 'BBB-'. A complete list of affected ratings is attached below. The ratings of The Hertz Corporation and its subsidiaries are not affected by this action. Ford's Rating Outlook remains Negative. The downgrade and Negative Outlook reflect the continuing share losses and competitive pressures at Ford's core North American auto operations, and the challenges the company faces in restoring sustainable positive cash flow. Ford, along with most of the North American auto industry, is in the midst of an extended and fundamental restructuring of its cost base, which will be necessary to stem operating losses. The deterioration in Ford's core SUV products has had a disproportionate impact on consolidated profitability, with higher gas prices and shifts in consumer preferences providing uncertainty as to the extent of the decline going into 2006. Ford has a number of competitive product offerings that should provide some support to consolidated volumes and revenues, but the company will nevertheless remain challenged to sustain revenues given price pressures and the trend toward lower-priced vehicles. Inability to sustain revenues would further stress Ford's operating profile given the company's legacy costs. Recent successful product introductions in the car segment have led to unit sales gains and should provide continuing strength in this segment into 2006, providing some offset to consolidated revenue pressures. Ford has a moderate presence in the rapidly growing crossover segment, with two new products in this category scheduled for release in late 2006. Otherwise, Ford's new product introductions will be light over the next several years. Although the large pickup segment has held up well, Ford will face increasing competition in terms of new and refreshed product competition competitive in 2006 as well as ever-present price competition. Operating losses have also occurred despite a healthy economic environment that has helped produce healthy industry sales volumes, indicating vulnerability to any deterioration in economic conditions over the near term. Warranty costs, which have grown meaningfully over the past several years, have impaired cash flows and remain a concern. Ford will be reliant on significant cost reductions to stabilize margins and cash flows. Ford has announced its intent to close numerous assembly and component plants in addition to those recently acquired from Visteon. Given the progress Ford has made in portions of its product portfolio, target demographics and manufacturing footprint, the company's unprofitable product lines and uncompetitive manufacturing operations are relatively identifiable. Ford has more than adequate liquidity over the near term to finance the required employee buyout programs and closure of facilities, although the pace and extent of the restructuring will be dependent on Ford's progress in negotiations with the UAW. The ability to accelerate restructuring activities could leave Ford with a smaller, but more viable combination of flexible manufacturing plants and product segments, with better plant economics. However, replacing unit sales to support revenue levels will remain a difficult challenge given the unrelenting competitive environment. In its restructuring efforts, as with its recent health care agreement, Ford is expected to benefit from the urgency of the accelerated restructuring program being undertaken by GM. Operating results have also been severely impacted by higher commodity costs, namely steel and resin, which may continue to rise for Ford through 2006. Longer term, commodity price relief may alleviate some margin pressure although this may not occur until into 2007. Given top-line pressures and reduced scale, fixed-cost absorption will continue to be challenging, and margin restoration will be difficult to accomplish without more significant inroads into structural costs in the areas of wages and benefits. Pension and health care costs remain a concern. Total health care expenditures were US$3.1 billion in 2004, and have been increasing annually at double-digit rates, although this will now be off of a moderately lower base following the recent health care agreement. Ford remains moderately underfunded in its U.S. pension plans, although pension legislation could accelerate required contributions in an adverse scenario over the near term. As of Sept. 30, 2005, Ford had healthy liquidity of US$19.6 billion in cash and S/T VEBA, as well as approximately US$5.7 billion in L/T VEBA. Expected net proceeds from the sale of Hertz of US$5.6 billion will provide supplemental liquidity to utilize in Ford's restructuring program. Total debt of US$18.2 billion is down modestly over the past several years, and maturities are limited to under US$4 billion over the next fifteen years. Ford maintains committed lines of US$6.5 billion. The ratings of Ford Motor Credit Co. (FMCC) are linked to those of Ford due to the close business relationship between them. Fitch expects FMCC's earnings and dividends to decline noticeably going into 2006 primarily due to lower receivables outstanding and margins. FMCC has benefited by lower provision expense, as the quality of its receivables pool has increased, however, the pace of these improvements is expected to slow going forward. Fitch believes that FMCC maintains a good degree of liquidity relative to its rating. Supporting this is FMCC's ability to sell or securitize a broad spectrum of assets such as retail finance, lease, and wholesale loans. Moreover, FMCC continues to hold high cash balances and its assets mature faster than its debt. Ratings lowered by Fitch with a Negative Rating Outlook include the following: Ford Motor Co. --Senior debt to 'BB+' from 'BBB-'; --Short-term to 'B' from 'F2' Ford Motor Credit Co. --Senior debt to 'BB+' from 'BBB-'; --Short-term to 'B' from 'F2' FCE Bank Plc --Senior debt to 'BB+' from 'BBB-'; --Short-term to 'B' from 'F2' Ford Capital B.V. --Senior debt to 'BB+' from 'BBB-'. Ford Credit Canada Ltd. --Senior debt to 'BB+' from 'BBB-'; --Short-term to 'B' from 'F2' Ford Motor Capital Trust II --Preferred stock to 'BB-' from 'BB'. Ford Holdings, Inc. --Senior debt to 'BB+' from 'BBB-'; Ford Motor Co. of Australia --Senior debt to 'BB+' from 'BBB-'; Ford Credit Australia Ltd. --Senior debt to 'BB+' from 'BBB-'; --Short-term to 'B' from 'F2' PRIMUS Financial Services (Japan) --Senior debt to 'BB+' from 'BBB-'; --Short-term to 'B' from 'F2' Ford Credit de Mexico, S.A. de C.V. --Senior debt to 'BB+' from 'BBB-'; Ford Motor Credit Co. of New Zealand --Senior debt to 'BB+' from 'BBB-'; --Short-term to 'B' from 'F2' Ford Motor Credit Co. of Puerto Rico --Short-term to 'B' from 'F2' CONTACT: FORD CAPITAL B.V. Postbus 795 1000 AT Amsterdam Phone: 020 5044646 Fax: 020 5044635 Web site: http://www.ford.nl FITCH RATINGS Mark Oline Phone: +1-312-368-2073 Richard Hilgert Phone: +1-312-606-2336 (Ford), Chicago Christopher D. Wolfe Phone: +1-212-908-0771 Philip S. Walker Jr. (FMCC), New York Phone: +1-212-908-0624 Media Relations Brian Bertsch, New York Phone: +1 212-908-0549 Kenneth Reed, New York Phone: +1 212-908-0540 Web site: http://www.fitchratings.com GARANTIBANK INTERNATIONAL: Fitch Affirms Long-term BB+ Rating ------------------------------------------------------------- Fitch Ratings has affirmed Netherlands-based GarantiBank International N.V.'s (GBI) ratings at Long-term 'BB+', Short- term 'B', Individual 'C/D' and Support '4'. The Outlook on Long-term rating is Positive. At the same time, Fitch has withdrawn all the ratings. Fitch will no longer provide ratings or analytical coverage of this issuer. CONTACT: GARANTIBANK INTERNATIONAL N.V. Keizersgracht 569 - 575 1017 DR Amsterdam The Netherlands Phone: +31 (0)20 553 97 00 Fax: +31 (0)20 420 17 28 E-mail: info@garantibank.nl FITCH RATINGS Banu Cartmell Jeroen Julius, London Phone: +44 (0)20 7417 4222 Media Relations Jon Laycock, London Phone: +44 20 7417 4327 Web site: http://www.fitchratings.com INDOVER BANK: Fitch Changes Outlook to Positive ----------------------------------------------- Fitch Ratings has changed Netherlands-based Indover Bank's rating Outlook to Positive from Stable. At the same time the agency has affirmed the bank's ratings at Long-term 'B+', Short- term 'B', Individual 'D/E', and Support '4'. The change to Positive Outlook reflects the continuing commitment of the bank's sole shareholder, Bank Indonesia, the Indonesian Central Bank, to provide support now that uncertainty about an imminent divestment of Indover Bank earlier this year has abated. The Positive Outlook mirrors that of the Indonesian Sovereign. Although Bank Indonesia is obliged to divest Indover Bank by end-2008, it has explicitly committed to provide funding until privatization takes place. Indover Bank's support rating of '4' takes into account this commitment, but also reflects possible limitations in Bank Indonesia's ability to provide support, as indicated by the Republic of Indonesia's Long-term rating of 'BB-'. The Individual rating reflects Indover Bank's current dependency on Bank Indonesia for funding and liquidity, and the bank's lack of profitability, but also takes into account its strong capital base. Indover Bank has not yet been able to rebuild a profitable business model since the 1997 Asian crisis, which caused a collapse in asset quality and profitability. The asset quality issues were subsequently addressed by transferring the bad loans into a separate legal entity; but the bank has yet to regenerate its franchise, and revenues are low and do not cover costs. Management is restructuring the bank and has adopted a correspondent banking strategy aimed at expanding the client base and increasing transaction volumes. With a Tier 1 ratio of 47.0% at end-2004, Indover Bank has ample capital to absorb current losses and to support future asset growth. A specialized wholesale bank based in Amsterdam, Indover Bank has a branch in Hamburg, wholly owned subsidiaries in Hong Kong and Singapore, and a representative office in Jakarta. CONTACT: INDOVER BANK Stadhouderskade 84, 1073 AT Amsterdam P.O. Box 526, 1000 AM Amsterdam Phone: +31 (0)20 57 00 700 Fax: +31 (0)20 66 26 119 Web site: http://www.indoverbank.nl FITCH RATINGS Martin Oldham Banu Cartmell London Phone: +44 (0)20 7417 4222 Media Relations Jon Laycock, London Phone: +44 20 7417 4327 Web site: http://www.fitchratings.com ROYAL SHELL: Buys back 1 Million 'A' Shares ------------------------------------------- On 19 December 2005, Royal Dutch Shell plc purchased for cancellation 750,000 'A' Shares at a price of EUR25.84 per share. It further purchased for cancellation 250,000 'A' Shares at a price of 1,758.50 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell plc will be 3,935,625,000. 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, incorporated in England and Wales, is headquartered in The Hague and 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 overstating proved reserves by almost 6 billion barrels between January 2004 and February this year. This led to the ouster of three top executives, including former Chairman Philip Watts. The company was fined EUR150 million in total after investigations launched by U.S. and British regulators. Shell has since revised the method by which it calculates reserves to comply with U.S. regulations. Shell's 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 =========== N O R W A Y =========== PETROLEUM GEO-SERVICES: Secures US$1 Billion Credit line -------------------------------------------------------- Petroleum Geo-Services ASA said on Monday that it has entered into a new $1 billion senior secured credit facility. The New Credit Facility consists of a seven-year $850 million term loan and a five-year $150 million revolving credit facility, which replaced its existing secured $110 million credit facility. The proceeds from the term loan, as well as cash on hand, were used to finance the repurchase of all of PGS' outstanding 10% Senior Notes due 2010 that were validly tendered pursuant to the Company's previously announced tender offer and consent solicitation. Eurodollar borrowings under the term loan facility will bear interest at a rate equal to LIBOR plus 250 basis points, which rate will be reduced to LIBOR plus 225 basis points if the Company's leverage ratio is less than 2.25 to 1. The Company has entered into interest swap agreements fixing the interest rate for three to five years for 50% of the term loan ($425 million). PGS' President and CEO Svein Rennemo stated that this represents an important milestone for PGS. "In completing our refinancing we have gained increased financial and strategic flexibility. We continue to explore a separation of PGS, guided by the belief that direct access to the capital markets for both Geophysical and Production would allow us to capture more growth opportunities in the years to come." In addition, upon the Expiration Date (as defined below), the Company has accepted all of the Notes validly tendered pursuant to the Company's tender offer and consent solicitation relating to the Notes, which expired at 8:00 a.m., New York City time, on December 16, 2005. As of the Expiration Date, approximately $741.4 million aggregate principal amount of the Notes were tendered, representing approximately 99% of the aggregate principal amount outstanding. PGS engaged UBS Securities LLC as dealer manager for the tender offer and solicitation agent for the consent solicitation and Global Bondholder Services Corp. as the information agent for the tender offer and consent solicitation. The tender offer and consent solicitation was made solely on the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated November 15, 2005. Under no circumstances shall this press release constitute an offer to buy or the solicitation of an offer to sell the Notes or any other securities of the Company. It also is not a solicitation of consents to the proposed amendments to the indenture governing the Notes. No recommendation was made as to whether holders of the Notes should tender their Notes or give their consent. Petroleum Geo-Services (OSE and NYSE: PGS) is a technologically focused oilfield service company principally involved in geophysical and floating production services. PGS provides a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. PGS owns and operates four floating production, storage and offloading units (FPSOs). PGS operates on a worldwide basis with headquarters at Lysaker, Norway. For more information on Petroleum Geo-Services visit http://www.pgs.com CONTACT: PETROLEUM GEO-SERVICES ASA Ola Bosterud Phone: +47 67 52 64 00 Mobile: +47 90 95 47 43 Christopher Mollerlokken Phone: +47 67 52 64 00 Mobile: +47 90 27 63 55 U.S. Investor Services Renee Sixkiller Phone: +1 281 509 8548 =========== R U S S I A =========== ATNYA-AGRO-KHIM-SERVICE: Under Bankruptcy Supervision ----------------------------------------------------- The Arbitration Court of Tatarstan republic has commenced bankruptcy supervision procedure on open joint stock company Atnya-Agro-Khim-Service. The case is docketed as A65- 24410/2005-SG4-16. Mr. I. Latypov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 422540, Russia, Tatarstan republic, Zelenodolsk, Post User Box 582. A hearing will take place on February 28, 2006, 10:00 a.m. at the Arbitration Court of Tatarstan republic at Russia, Kazan, Kremlin, Building 1, Entrance 2, Room 16. CONTACT: ATNYA-AGRO-KHIM-SERVICE: 422750, Tatarstan republic, Atninskiy region, Bolshaya Atnya I. LATYPOV Temporary Insolvency Manager 422540, Russia, Tatarstan republic, Zelenodolsk, Post User Box 582 CORALL DIAMOND: Hires N. Nikitina Insolvency Manager ---------------------------------------------------- The Arbitration Court of Vladimir region commenced bankruptcy proceedings against Corall Diamond after finding the close joint stock company insolvent. The case is docketed as A11-8278/2005- K1-71B. Ms. N. Nikitina has been appointed insolvency manager. CONTACT: CORALL DIAMOND Russia, Vladimir region, Aleksandrov, Institutskaya Str. 1 N. NIKITINA Insolvency Manager 350000, Russia, Krasnodar region, Kommunarov Str. 59 IZHEVSK-GAS: Under External Bankruptcy Procedure ------------------------------------------------ The Arbitration Court of Udmurtiya republic has commenced bankruptcy external management procedure on open joint stock company Izhevsk-Gas. The case is docketed as A71-108/2004-G21. Mr. G. Busygin has been appointed external insolvency manager. Creditors may submit their proofs of claim to 620075, Russia, Sverdlovsk region, Ekaterinburg, Gorkogo Str. 31. CONTACT: IZHEVSK-GAS 426008, Russia, Udmurtiya republic, Izhevsk, Kommunarov Str. 359 G. BUSYGIN External Insolvency Manager 620075, Russia, Sverdlovsk region, Ekaterinburg, Gorkogo Str. 31 IZHEVSKIY: Claims Filing Period Ends December 29 ------------------------------------------------ The Arbitration Court of Udmurtiya republic commenced bankruptcy proceedings against Izhevskiy after finding the open joint stock company insolvent. The case is docketed as A71-31/2005-G26. Mr. A. Kudryavtsev has been appointed insolvency manager. Creditors have until December 29, 2005 to submit their proofs of claim to 426011, Russia, Udmurtiya republic, Izhevsk, Udmurtskaya Str. 304. CONTACT: A. KUDRYAVTSEV Insolvency Manager 426011, Russia, Udmurtiya republic, Izhevsk, Udmurtskaya Str. 304 IZH-RUS': Insolvency Manager Takes over Firm -------------------------------------------- The Arbitration Court of Udmurtiya republic commenced bankruptcy proceedings against Izh-Rus' after finding the insurance company insolvent. The case is docketed as A71-105/2005-G2. Mr. G. Ustinov has been appointed insolvency manager. Creditors may submit their proofs of claim to 426067, Russia, Izhevsk, Post User Box 2417. CONTACT: IZH-RUS' 426000, Russia, Udmurtiya republic, Izhevsk, Pushkinskaya Str. 262 G. USTINOV Insolvency Manager 426067, Russia, Izhevsk region, Post User Box 2417 MELEUZOVSKIY: Bashkortostan Court Opens Bankruptcy Proceedings -------------------------------------------------------------- The Arbitration Court of Bashkortostan republic commenced bankruptcy proceedings against Meleuzovskiy after finding the concentrated-milk combine company insolvent. The case is docketed as A-07-36525/05-G-MOG. Mr. Y. Manzurov has been appointed insolvency manager. CONTACT: MELEUZOVSKIY 453310, Russia, Bashkortostan republic, Meleuz, Smolenskaya Str. 34 Y. MANZUROV Insolvency Manager 453850, Russia, Bashkortostan republic, Meleuz, Levonaberezhnaya Str. 13 MINE MANAGEMENT: Bankruptcy Hearing Resumes February ---------------------------------------------------- The Arbitration Court of Tatarstan republic has commenced bankruptcy supervision procedure on open joint stock company Mine Management. The case is docketed as A65-3208/2002-SA2-21. Mr. V. Semenov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 420132, Russia, Tatarstan republic, Kazan, Post User box 243. A hearing will take place on February 9, 2006, 8:30 a.m. at Russia, Kazan, Kremlin, Building 1, Entrance 2, Room 12. CONTACT: MINE MANAGEMENT Russia, Tatarstan republic, Vysokogorskiy region, Potanikha V. SEMENOV Temporary Insolvency Manager 420132, Russia, Tatarstan republic, Kazan, Post User Box 243 PRIMOR-AUTO-BRIDGE: Declared Insolvent -------------------------------------- The Arbitration Court of Primorye region commenced bankruptcy proceedings against Primor-Auto-Bridge after finding the close joint stock company insolvent. The case is docketed as A51- 13447/2005 15-198B. Mr. B. Zaytsev has been appointed insolvency manager. CONTACT: PRIMOR-AUTO-BRIDGE Russia, Primorye region, Ussuriysk, Novonikolskoye Shosse, 6V B. ZAYTSEV Insolvency Manager 690022, Russia, Vladivostok, Kirova Str. 101, Apartment 159 SEVERO-VOSTOK-STROY-INDUSTRIYA: Succumbs to Bankruptcy ------------------------------------------------------ The Arbitration Court of Khabarovsk commenced bankruptcy proceedings against Severo-Vostok-Stroy-Industriya after finding the open joint stock company insolvent. The case is docketed as A73-8208/2005-36. Mr. V. Kozin has been appointed insolvency manager. Creditors have until December 29, 2005 to submit their proofs of claim to 681000, Russia, Komsomolsk-na-Amure, Kirova Str. 76/2, Office 202. CONTACT: SEVERO-VOSTOK-STROY-INDUSTRIYA 681000, Russia, Komsomolsk-na-Amure, Gagarina Str. 17/5 V. KOZIN Insolvency Manager 681000, Russia, Komsomolsk-na-Amure, Kirova Str. 76/2, Office 202 WARM CONTINENT: Undergoes Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Chelyabinsk region has commenced bankruptcy supervision procedure on limited liability company Warm Continent (TIN 7449033082). The case is docketed as A76- 32640/05-55-218. Mr. S. Rogov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 454108, Russia, Chelyabinsk, Sh. Rustaveli, 32-47. A hearing will take place on February 8, 2006. CONTACT: WARM CONTINENT 454901, Russia, Chelyabinsk region, Tukhachevskogo Str. 2 S. ROGOV Temporary Insolvency Manager 454108, Russia, Chelyabinsk region, Sh. Rustaveli, 32-47 YUKOS OIL: Hearing on US$475 Mln Bank Claim Resumes Today --------------------------------------------------------- The Moscow Arbitration Court will resume on December 21 hearings on the multi-million-dollar lawsuit filed against embattled Yukos Oil by a syndicate of foreign banks, says RIA Novosti. The court reviewed on Dec. 13 the claim of western banks against Yukos, but suspended hearings until December 14 to sift through the voluminous case files. On Sept. 28, the arbitration court upheld the decision of the High Court in London that required Yukos to repay US$475.28 million loans from the 14 foreign banks. Yukos appealed to the arbitration court on Oct. 11 as bailiffs began to execute the ruling. On Nov. 30, the case was returned to the arbitration court for reconsideration. The debt is what remain of a US$1 billion loan granted in 2003 by the banks led by France's Societe Generale, Citigroup Inc., Deutsche Bank AG, Commerzbank AG, BNP Paribas S.A., ING Bank N.V., Credit Lyonnais, and HSBC. Yukos availed of the loan to pre-finance sale of oil and for general corporate purposes. It includes a three-year US$500 million loan facility and a five- year US$500 million loan facility. The lenders claim Yukos missed interest payments due in March and April 2005. In July, Yukos admitted receiving a notification of default. The loan was secured against Yukos' production subsidiaries, including Yugansk, which is now owned by state-owned company Rosneft. Yukos is an oil-and-gas company headquartered in Moscow, Russia. It filed for chapter 11 protection in December 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed in February. A few days after, its main production unit Yugansk was sold by the government to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000-2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. CONTACT: YUKOS OIL Web site: http://www.yukos.com/ International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 E-mail: investors@yukos.ru ========= S P A I N ========= CABLEUROPA SA: Credit Facility Syndication Raises EUR755 Mln ------------------------------------------------------------ Grupo Corporativo ONO, through its wholly owned subsidiary Cableuropa, S.A.U., said that on Dec. 2, 2005 the syndication of the EUR3,100 million senior credit facility was completed. ONO closed the successful syndication process for the EUR3,100 million senior credit facility with a total of EUR755 million raised. Together with ONO, the four bookrunners leading the syndication process were ABN AMRO, Banco Santander Central Hispano, CALYON and Fortis Bank. The financial institutions joining the facility through the syndication process are: Banco Bilbao Vizcaya Argentaria, Bank of America, HSBC Bank, Natexis Banques Populaires, Citigroup, ING Bank, La Caixa, Sumitomo Mitsui Banking Corporation, Allied Irish Banks, Banco BPI, BNP Paribas S.A., Dexia, IXIS Corporate & Investment Bank, Lehman Brothers, Morgan Stanley, UBS Investment Bank, KBC Bank, NM Rothschild and Sons Limited and Winchester Capital (Deutsche Bank AG). These financial institutions joined the group of Mandated Lead Arrangers formed by: ABN AMRO, Calyon, Fortis Bank, Banco Santander Central Hispano, Instituto de Credito Oficial (ICO), Royal Bank of Scotland, Ahorro Corporacion Financiera, Societe Generale, WestLB, Caixa Catalunya, SabadellAtlantico, Banesto, Rabobank and JPMorgan. Financing As part of the Auna Tlc acquisition, ONO raised EUR3,500 million financing and EUR1,000 million of equity. The EUR3,500 million financing comprises a EUR3,100 million senior credit facility, a EUR130 million subordinated term loan and a EUR270 million subordinated bond bridge facility. The financing is dedicated to the funding of the Auna Tlc acquisition, the refinancing of the former senior facilities of ONO and the provision of sufficient funding for the enlarged ONO group to reach free cash flow positive. Commenting on the syndication, Jonathan Cumming, ONO's Chief Financial Officer, said: "We are delighted with the results of the syndication. We welcome these new financial institutions to the ONO story and repeat our gratitude to all of the banks that have helped to make this transaction a reality. "We structured the debt financing to demonstrate a continued focus on our strategy of debt deleveraging. Following the acquisition of Auna Tlc, the pro forma total debt to EBITDA ratio for the enlarged ONO group is 5.3x, more than half a turn lower than the 5.9x reported by ONO in the second quarter of 2005. "We will continue to focus on reducing the total debt leverage as we look to grow our revenue line through offering competitively priced services to the residential and business market throughout Spain and control the operating and capital expenditure in the enlarged ONO business." First Steps As part of the first steps of the transformation of the new ONO business, ONO has recently launched the first offer available to all new cable customers in Spain. For only EUR49.95 per month all customers can enjoy telephony, broadband Internet and digital television across all ONO's regions. The offer includes telephony line rental, broadband Internet access, free national telephony minutes and a wide range of the best television channels including: cinema, series, documentaries, children channels, sports and the access to an outstanding pay per view offer. About ONO: ONO is Spain's leading cable media and entertainment company. It offers telephony, pay television and broadband Internet services to residential customers in Andalusia, Aragon, The Canary Islands, Castilla - La Mancha, Castilla y Leon, Cantabria, Catalonia, Comunidad Valenciana, La Rioja, Madrid, Mallorca, Navarra and Region of Murcia. Through its own national backbone network, ONO also provides voice, data and related services to companies across Spain. ONO shareholders are: Grupo Multitel, JPMorgan Partners, Providence Equity Partners, Thomas H. Lee Partners, Grupo Santander, GE Structured Finance, Quadrangle Capital Partners, Caisse de Depot et Placement du Quebec, Val Telecomunicaciones and Sodinteleco. * * * Standard & Poor's Ratings Services removed from CreditWatch with positive implications and raised its corporate credit rating on Cableuropa S.A.U. to 'B' from 'B-' following its acquisition of Auna Tlc on Nov. 4, and the refinancing of its existing debt. The outlook is stable. At the same time, Standard & Poor's removed from CreditWatch with positive implications and raised its senior unsecured debt ratings on Cableuropa's finance vehicle ONO Finance PLC to 'CCC+' from 'CCC'. Standard & Poor's has not rated or assigned a recovery rating to the senior secured credit facility, at the request of Cableuropa. The credit facility -- which is currently being syndicated -- will be the primary capital resource of the company, representing about EUR3.1 billion with senior rights over any existing or upcoming senior unsecured bonds. "The upgrade reflects the improved business position and medium- term trading prospects of Cableuropa as a result of the acquisition of Auna, notwithstanding the significant short-term integration risks," said Standard & Poor's credit analyst Leandro de Torres Zabala. "The ratings need to be viewed, however, in the context of an expected sound operating performance and maintenance of a strong liquidity position over the next two years." The ratings are also based on the expectation that Cableuropa will smoothly integrate Auna and achieve substantial cost efficiencies. It is key that Cableuropa continues to generate strong revenues and EBITDA growth, makes rapid advancement toward achievement of positive free cash flow in the second half of 2007 and deleverages to a lease-adjusted ratio of gross debt to annualized last quarter EBITDA of about 5x by year-end 2007. The acquisition has clear business merits, including the creation of Spain's second-largest facilities-based national telecommunications player. Cableuropa should become more competitive as a result of its larger business scale and should be able to extract significant economies of scale and operating efficiencies from the merger. The merger will not come without challenges, however, including material integration risks, the weaker performance of Auna, its strong exposure to the competitive fixed-telephony market, and the fact that Auna comes with a number of businesses that are new to Cableuropa. The pursuit of this larger growth opportunity will also delay the achievement of positive free cash flow until at least the second half of 2007 according to the bank's financial plan supporting the loan documentation. The ratings on the group were originally placed on CreditWatch on Aug. 1, 2005, following GCO's announcement that it had reached an agreement with Grupo Auna and its principal shareholders for Cableuropa to acquire 100% of Auna. For the nine-month period to Sept. 30, 2005, the combined group's revenues were EUR1,306 million and EBITDA of EUR334 million. Pro forma for the acquisition and the refinancing, Cableuropa's adjusted (for operating leases and the EUR215 million deferred acquisition price) gross debt will reach about EUR2.9 billion and adjusted gross debt to annualized third-quarter 2005 EBITDA is estimated at about 5.8x at Sept. 30, 2005, which is an improvement from historical levels. CONTACT: GRUPO CORPORATIVO ONO Jonathan Cumming, Chief Financial Officer Phone: +34 91 180 9444 E-mail: jonathan.cumming@ono.es Web site: http://www.ono.es GRUPO ALBION Alejandra Moore Mayorga Phone: +34 91 531 23 88 E-mail: amoore@grupoalbion.net CABLEUROPA S.A.U. Calle Basauri 7-9 Urbanizacion la Florida 28023 Aravaca Madrid Phone: +34-91-180-93-00 Fax: +34-91-180-93-44 CABLEUROPA SA: Fitch Affirms B Rating; Outlook Positive ------------------------------------------------------- Fitch Ratings has affirmed Spain-based Cableuropa S.A.'s ratings at Senior Unsecured and Short-term 'B' and removed them from Rating Watch Evolving (RWE). A Positive Outlook is assigned. At the same time, Fitch has assigned Cableuropa's EUR3.1 billion senior secured bank facilities 'BB-' and subordinated facilities 'B-' ratings. ONO Finance, a subsidiary of Cableuropa, and its guaranteed notes are affirmed at 'B-' and removed from RWE. The rating action resolves the RWE status ascribed 2 August 2005 in response to the company's announcement that it had reached an agreement to acquire 100% of Auna Tlc (Auna), and follows a review of Cableuropa's plans for the combined business and the financial implications of the financing of the transaction. Stuart Reid, a director in Fitch's TMT group, said: "The acquisition makes good strategic sense, creating a national champion to compete with Telefonica in telephony and broadband and with Sogecable in pay TV. We have for some time been impressed by management's track record in delivering profitable growth through its triple-play service bundle. The challenge now will be for the company to quickly integrate the acquired business and improve margins within the significantly less profitable Auna franchise." The Senior Unsecured 'B' rating reflects Cableuropa's improved scale and market position following the acquisition, good operational performance and solid execution of its business plan to date. The rating also takes into account the margin dilution resulting from the Auna acquisition, the postponement of free cash flows for one to two years and the associated impact on the company's leverage. Following the acquisition, ONO has close to 1.7 million residential customers, 80,000 business customers and 6 million homes built-out. Its franchise covers 17.7 million homes, equivalent to 85% of the country, and 90% of Spain's businesses. Following the acquisition ONO is Spain's leading alternative provider in telephony, broadband and pay TV with market shares of 11%, 28% and 15% respectively. While the integration challenge should not be under-estimated, management has a good track record of assimilating acquisitions and delivering operating efficiencies. The 'BB-' rating on Cableuropa's senior secured facilities are two notches higher than the Senior Unsecured rating. The facilities benefit from a security package consisting of security over the shares in Cableuropa and Auna. Fitch considers that, in a potential distress scenario, a sale of the business as a going concern would deliver most value for lenders. While Fitch's recovery analysis implies full recovery for the senior lenders, notching is capped at two notches in line with the agency's approach to the rating of secured corporate obligations in Spain. The 'B-' rating on the subordinated facilities and the high- yield notes is a notch below the Senior Unsecured rating, reflecting the contractual and structural subordination (in the event of enforcement) to the senior secured facilities and other obligations. Fitch's analysis indicates that recovery rates for the subordinated and high-yield lenders would be below average in a distress scenario. The acquisition has been funded through a combination of senior secured bank debt, equity of EUR1.0 billion (from new financial sponsors), a subordinated high-yield bridge and other subordinated facilities. ONO currently expects the 2014 senior notes to remain in place, and has issued a change of control offer with respect to its 2011 maturities. At transaction closing and based on annualized Q305 pro-forma EBITDA, senior leverage stood at 4.0x and total leverage at 5.5x. While leverage may rise as the company reaches peak funding with the further build-out of the network, Fitch expects these ratios to remain in line with the current ratings. The Positive Outlook reflects management's strong performance in growing a cable business in Spain, and the company's potential ability to reduce leverage to levels consistent with a higher rating relatively quickly. While the integration challenge should not be under- estimated management has a good track record at integrating past acquisitions. Cableuropa is a Spanish broadband service provider and the intermediate holding company for the ONO group. Its core business consists of the offering of integrated telecommunications, cable television and broadband Internet services to residential and business customers. Following the Auna acquisition, the company had pro-forma 9-month revenues to September 2005 of EUR1,306 million and pro-forma EBITDA of EUR334 million (reflecting a margin of 25.6%). CONTACT: CABLEUROPA S.A. Calle Basauri 7-9 Urbanizacion la Florida 28023 Aravaca, Madrid Spain Phone: +34-91-180-93-00 Fax: +34-91-180-93-44 Web site: http://www.ono.es FITCH RATINGS Stuart Reid, London Phone: +44 207 417 4323 Michael Dunning, +44 207 417 6343 Erwin van Lumich, Barcelona Phone: +34 93 323 8403 Media Relations Julian Dennison, London Phone: +44 20 7862 4080 Web site: http://www.fitchratings.com =========== S W E D E N =========== ABB LTD.: Court Okays CE's Settlement with Hartford, First State ---------------------------------------------------------------- The Hon. Judith K. Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware approved a settlement agreement between Combustion Engineering, Inc., First State Insurance Company and Hartford Accident and Indemnity Company. Judge Fitzgerald also authorized the sale of certain insurance policies, free and clear of liens, claims, interests and other encumbrances, to Hartford and First State (collectively know as the Hartford Released Parties). Asbestos-Related Claims Combustion Engineering faces numerous asbestos-related personal injury lawsuits pending in various parts of the United States. First State Insurance Company and Hartford Accident and Indemnity Company are two of the insurance companies that extended insurance coverage to the Debtor from 1940 and 1985. Prior to the mid-1990s, approximately two-thirds of asbestos payments made by the Debtor were reimbursed by insurance. However, insurance available to cover the payment of asbestos claims has deteriorated dramatically, with Combustion exhausting its primary insurance coverage or settling with its primary carriers, and its excess insurers disputing liability. On Oct. 24, 2003, Combustion sued its insurers in the Delaware Bankruptcy Court seeking, among other relief, coverage from First State for asbestos-related bodily injury claims. Insurance Settlement To resolve their long-standing dispute, the Debtor, Hartford and First State agreed to an amicable settlement. Salient terms of the agreement include: a) Hartford and First State's repurchase of the policies issued to Combustion; b) First State's payment of a settlement amount of $8,475,000 which shall be allocated for the payment of asbestos claims; c) release of Hartford and First State from all issues involving coverage claims. Headquartered in Norwalk, Connecticut, Combustion Engineering, Inc., is the U.S. subsidiary of the ABB Group. ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in more than 100 countries and employs about 103,000 people. Combustion Engineering filed for chapter 11 protection on Feb. 17, 2003 (Bankr. D. Del. Case No. 03-10495). Curtis A. Hehn, Esq., at Pachulski Stang Ziehl Young & Jones and Jennifer Mo, Esq., at Kirkpatrick & Lockhart Nicholson Graham represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated more than $100 million in assets and debt. On July 10, 2003, the Debtor's Plan of Reorganization was confirmed. Certain insurers appealed the confirmation order to the United States Court of Appeals for the Third Circuit. On Dec. 2, 2004, the Third Circuit vacated the Confirmation Order and remanded the Debtor's case. CONTACT: ABB LTD. Affolternstrasse 44 CH-8050 Zurich, Switzerland Investor Relations Switzerland Phone: +41 43 317 7111 Sweden Phone: +46 21 325 719 USA Phone: +1 203 750 7743 CONCORDIA BUS: To Present Third-quarter Results Tomorrow -------------------------------------------------------- Concordia Bus AB will announce its Q3 FY2006 results Thursday Dec. 22, 2005. Quarterly report and presentation will be available for downloading at http://www.concordiabus.comafter 12 a.m. U.K. time on Dec. 22. The call will also include a Q&A session. Telephone details: Time and date: Dec. 22, 2005 16.00 (CET, Swedish time) 3 p.m. (U.K. time) and 10:00 (NY, U.S.A. time) Duration: 120 minutes Bridge numbers: U.K.: +44(0)20 7162 0125 U.S.A.: +1 334 323 6203 Sweden: +46(0)8 505 201 14 (Note for local Connect dial-in-numbers- you must always dial the area code to enter the conference) Action replay numbers: U.K.: +44(0)20 7031 4064, access code: 686966 U.S.A.: +1 954 334 0342, access code: 686966 Sweden: +46(0)8 505 203 33, access code: 686966 Conference title: Concordia Bus Q3 FY2006 Chairperson: Norback/Skargard About the Company The Concordia Bus Group is one of Europe's ten largest Groups within public transports and largest in the Nordic region. The Group carries approximately 280 million passengers yearly in scheduled services, motor coaches and tourist travel in Sweden, Norway and Finland. Swebus, Swebus Express and Interbus in Sweden, I.M. Schoyen Bilcentraler in Norway and Concordia Bus Finland are parts of the Group. Concordia Bus Group concluded its financial restructuring in October. All holders of the Group's EUR160 million Senior Subordinated Notes who have accepted the terms of the financial restructuring have received shares in exchange for their notes, which have since been annulled. Senior Subordinated Notes converted to equity amount to 97.5% of the shares in Concordia Bus AB. Concordia Bus Nordic AB -- parent company of the Group's operative bus companies where among others Swebus is part -- will receive an equity injection of EUR20 million. CONTACT: CONCORDIA BUS NORDIC AB Ragnar Norback, CEO Phone: + 46 701 87 10 40 Per Skargard, CFO Phone: + 46 701 87 10 52 CORRAL INVESTMENT: Gets Ba3 Corporate Family Rating from Moody's ---------------------------------------------------------------- Moody's Investors Service assigned a Corporate Family Rating of Ba3 to Corral Investment AB, the holding company of Preem Holdings AB and Preem Petroleum AB. At the same time, Moody's has upgraded the EUR305 million 10 5/8% Senior Secured Notes issued by Preem Holdings to B2 from B3 and the EUR100 million 9% Senior Subordinated Notes issued by Preem Petroleum to B1 from B2. The outlook for all ratings is stable. Corral is a Swedish company wholly owned by Corral Petroleum Holdings, which is itself indirectly owned by a Saudi individual, Mr. Mohammed Hussein Al-Amoudi. The current group structure was established earlier this year when Corral issued an approximately equivalent EUR534 million split coupon notes due August 2010 (PIK notes) in order to fund a distribution to its shareholder. According to Moody's current rating practices (outlined in Moody's Special Comment: "Rating Paid-In-Kind (PIK) Securities and Shareholder Loans in European Leveraged Finance", published April 2005), if new PIK notes are issued at a holding company above the restricted group, and the existing corporate family rating is anchored at a level below the PIK issuing entity, the corporate family rating for the group must be anchored at a level that incorporates the PIK note issuing entity, regardless of whether or not the PIK notes are rated. The PIK notes are senior debt secured by a first priority share pledge of Preem Holdings; they are structurally subordinated to existing and future debt at subsidiary level, and are not guaranteed by other entities within the Group. The PIK notes are not technically a liability of either Preem Holdings or Preem Petroleum and a portion of the proceeds sufficient to pay cash coupons for the next 12 months has been set aside in an escrow account. Nonetheless, the PIK Notes are cash-pay at the option of the issuer, and payment-in-kind only increases the ultimate liability that requires servicing and ultimately repayment -- both of which would need to rely on operating cash flows or issuance of new debt. The other main debt instruments included in the perimeter of the Corporate Family rating are: (a) EUR150 million Syndicated Revolving Credit Facility (not rated) at Preem Petroleum; (b) EUR150 million Syndicated Term Loan Facility (not rated) at Preem Petroleum; (c) EUR100 million 9% Senior Subordinate Notes due 2014 (rated B1) issued by Preem Petroleum; and (d) EUR305 million 10 5/8% Senior Secured Notes due 2011 (rated B2) issued by Preem Holdings. Preem Holdings' B2-rated Senior Secured Notes are currently the only outstanding debt at this entity. They are secured by a share pledge from Preem Petroleum AB and the combined subordinated inter-company loans (which equal the gross proceeds of the notes issue) lent to Preem Petroleum. The Senior Secured Notes are rated two notches below the Corporate Family Rating, reflecting their structural subordination to both the senior bank facilities and the Senior Subordinated notes located at Preem Petroleum. Preem Petroleum's Senior Subordinated Notes are subordinated to the unrated senior bank debt at this entity. However, they rank senior to the subordinated inter-company loans, which represent the bulk of the Preem Holdings notes' security package. The Subordinated Notes also have an unconditional senior guarantee from Preem Holdings, which ranks equally in right of payment to the Preem Holdings notes. For these reasons, and because of their proximity to operating cash flow, the Preem Petroleum notes are rated B1, one notch below the Corporate Family Rating and one notch above the Preem Holdings notes. The assignment of the Corporate Family Rating to Corral Investment AB replaces the previous Corporate Family Rating that was assigned to Preem Holdings AB. The Ba3 Corporate Family Rating level reflects the improvement in profitability, which Preem has enjoyed throughout 2004 and 2005, driven by stronger refining margins. The strengthening financial profile had placed some upward pressure on the rating prior to the issue of the Corral Notes. However, the subsequent issuance of these notes in July 2005 added significant additional debt to Preem's capital structure, widened the perimeter of the restricted group, and, by utilizing much of the Group's debt capacity, financial flexibility was also constrained. In aggregate, these factors negated much of the positive rating impetus at that time. However, the refining environment has remained strong throughout the second half of 2005, and the outlook for 2006 currently appears supportive of the company's credit quality, particularly in light of the expected completion of the isocracker investment early next year. Moody's notes Preem's dominant position in the Swedish market and its favorable location away from the highly competitive markets of North West Europe. Moreover, the increased complexity of Preem's refining assets, which enable it to process high volumes of cheaper heavy Russian crude, have allowed refining margins to benefit from a Brent/Urals spread above the historical average, and an increase in the price of refined products driven by the relatively high oil price. Management's strategic shift away from low margin declining markets such as domestic heating oil towards high value refined products such as jet fuel and low-sulphur diesel (for which demand currently exceeds supply) may allow a sustainable improvement in profitability compared with previous years. Moreover, throughout 2004 and 2005 Preem has produced stronger free cash flow, which has reduced its dependence on external debt financing and enabled it to complete major capital expenditures such as the isocracker without a major deterioration in its financial profile. However, refining is a capital intensive business and Moody's expects that Preem will continue to invest in coming years in order to improve its asset quality, which is likely to increase debt levels. Preem's current debt protection metrics are strong for its rating category. EBIT/interest cover of >8x, RCF/Debt of >40% and Debt/EBITDA of <2x are considerably stronger than historical levels of around 1.5x, 8% and 5x, respectively, and are strong for the Ba3 corporate family rating. However, the strength of these metrics represents top-of-the-cycle conditions, and the ratings are materially constrained by the shareholder's unpredictable dividend policy. Moody's expects Preem to maintain minimum EBIT interest cover of >3x and RCF/Debt above 15% to maintain the current ratings. Further upward revisions of the ratings are unlikely in the absence of greater clarity over dividend policy, financial targets and proof that refining margins above those of its peers can be sustained in a downcycle. Corral Investment AB is the holding company of Preem Holdings AB and in turn Preem Petroleum AB. It is a 100% subsidiary of the ultimate parent, Corral Petroleum Holdings AB, which is part of the Corral Group owned by the Saudi Arabian investor, Mr. Al- Amoudi. Headquartered in Stockholm, Preem is the largest oil company in Sweden, and operates through two refining facilities, Preemraff Lysekil and Preemraff Gothenburg. Preem sells its refined products primarily in Sweden and other northwestern European markets, including Scandinavia, the United Kingdom and Germany. CONTACT: MOODY'S INVESTORS SERVICE LTD. (LONDON) Stuart Lawton, Managing Director European Corporates Phones: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 Edward Palmer, Asst Vice President - Analyst Corporate Finance Group Phones: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 SKANDIA INSURANCE: Names Nominating Committee Chair --------------------------------------------------- Skandia Insurance Co. Ltd.'s Nominating Committee has held its first meeting, where it appointed Paolo Pellegrini, Paulson & Co. Inc., as committee chair. As previously announced, the committee's members are Carl Rosen (Second and Fourth National Swedish Pension Funds), Lars Forberg (Cevian Capital), Per Granstrom (Fidelity Investments International), Paolo Pellegrini (Paulson & Co. Inc.) and Sten Trolle (the Swedish Shareholders' Association). Skandia's chairman, Lennart Jeansson, is a co-opted member of the committee. The committee's composition and chair may be changed later as a result of Old Mutual's ongoing offer for Skandia. About the Company Skandia is one of the world's leading independent providers of quality solutions for long-term savings. With operations in 20 countries, Skandia offers products and services catering to customers' needs for savings solutions and financial security in various phases of life. In 2004, the company reported sales of SEK98 billion, and a net result of -SEK139 million. It has approximately 5,800 employees. In August, Skandia reported result for first half of 2005 was -SEK1,047 million. Revenues rose 15% to SEK7,829 million, while expenses increased to -SEK8,401 million. CONTACT: SKANDIA INSURANCE COMPANY LTD. Sveavagen 44 S-103 50 Stockholm, Sweden Phone: +46-8-788-1000 Fax: +46-8-788-3080 Web site: http://www.skandia.com Bjorn Bjornsson Vice Chairman Phone: +46-8-788 25 00 Jan-Mikael Bexhed General Counsel Phone: +46-8-788 25 00 PAOLO PELLEGRINI, PAULSON & CO. INC. Phone: +1-212-956-2221 ===================== S W I T Z E R L A N D ===================== CONVERIUM AG: Reports US$6.9 Million Net Loss for Q3 ---------------------------------------------------- For the third quarter of 2005, Converium AG reported a loss before taxes of US$1.3 million, a pre-tax operating income of US$22.1 million and a net loss of US$6.9 million. The third quarter of 2005 was impacted by the U.S. hurricanes and European floods in the amount of US$74.2 million and costs of US$9.5 million associated with our organizational and operational restructuring. Offsetting this was the positive impact of the commutations carried out in the third quarter of 2005 in the amount of US$39.0 million as well as net positive development of prior years' loss reserves in the amount of US$11.3 million. In addition, the quarter was positively impacted by the reduction of administration expenses due to the realization of cost management measures adopted early in 2005 as well as solid investment results. In the third quarter Converium recorded gross premiums written, net premiums written, and net premiums earned of US$482.6 million, US$432.4 million and US$605.2 million, respectively, which were in line with expectations. The premium figures reflect the reduction in business volume caused by the placement of Converium Reinsurance (North America) Inc. (CRNA) into orderly run-off in 2004 and the impact of the ratings downgrades in the same year. Overall, Converium continues to believe that its gross premiums written target of approximately US$2.0 billion for the 2005 calendar year is achievable. Converium's shareholders' equity amounted to US$1,697.3 million as of September 30, 2005 as compared to US$1,717.5 million restated as of June 30, 2005. The decrease reflects the net loss for the third quarter as well as effects due to currency translations and unrealized capital losses. Noticeable Impact of Natural Catastrophes For the third quarter of 2005, the non-life combined ratio for Converium's ongoing operations was 110.9% (including an administration expense ratio of 5.9%). For the nine months ended September 30, 2005, the non-life combined ratio for the ongoing operations was 106.5% (including an administration expense ratio of 6.6%). In the third quarter of 2005, Converium recorded losses from Hurricane Katrina, Hurricane Rita, Hurricanes Dennis and Emily and the European floods with an estimated total net impact of US$37.5 million, US$10.0 million, US$2.3 million and US$24.4 million, respectively. The ongoing non-life combined ratio excluding the impact of the hurricanes and the European floods would have been 97.8% for the third quarter of 2005, which excludes US$11.4 million of losses related to Hurricane Katrina that were recorded in the Run-Off segment. Based on preliminary estimates, Converium expects its losses for Hurricane Wilma, which occurred in the fourth quarter of 2005, to be in the range of US$25.0 million to US$35.0 million. Favorable Loss Reserve Development In the third quarter of 2005 Converium recorded net positive development of prior years' loss reserves of US$11.3 million, which resulted in overall net positive development of US$15.0 million for the nine months ended September 30, 2005. For the third quarter of 2005, net positive development of US$23.7 million was recorded in the Company's ongoing operations, which primarily consisted of US$31.4 million of net positive development within the Property line of business and was partially offset by US$16.5 million of net strengthening within the General Third Party Liability line of business. In the Run- Off segment, net strengthening of prior years' loss reserves of US$12.4 million was recorded for the third quarter of 2005, which primarily consisted of US$5.8 million of net positive development in the Property line of business and was offset by US$14.6 million of net strengthening within the General Third Party Liability line of business. Converium believes that the continuing stability of its aggregate prior years' loss reserve position reflects the adequacy of prior reserving actions. CRNA Run-off on Track; Commutations Target to be Exceeded For the nine months ended September 30, 2005, CRNA's net loss reserves have decreased by US$443.5 million, including the effects of commutations and other settlements. The commutations resulted in a positive contribution of US$39.0 million to net income in the third quarter of 2005. Since December 31, 2004 net loss reserves at CRNA have declined to approximately US$1.3 billion. In light of further commutations carried out in the fourth quarter of 2005, Converium will exceed its previously stated target of commuting or otherwise settling CRNA liabilities of approximately US$500 million for the full year 2005. Progress in Trimming Cost Base In the third quarter of 2005, the administration expense ratio for the ongoing non-life business (excluding Corporate Center segment costs) was 5.9%. Other operating and administration expenses for the Company were US$40.3 million, a decrease of US$10.1 million or 20.0% compared to the second quarter of 2005. As expected, the cost management measures initiated in March 2005 have taken effect in the third quarter of 2005. The Company reaffirms that it will continue to incur certain expenses, which it considers crucial investments in order to expedite its rebound following the restoration of its financial strength ratings and to accelerate the recovery of its market position. Solid Investment Result In the third quarter of 2005, Converium generated a total investment result of US$70.5 million or an average annualized total investment income yield (pre-tax) of 3.6%. Net investment income for the third quarter of 2005 was US$76.9 million. Converium's third quarter 2005 investment results reflect the realization of capital losses due to the liquidation of investments to support the Company's third quarter commutation efforts. Terry Clarke, chief executive, said: "Converium's operating recovery has continued in the third quarter. We have absorbed significant catastrophe losses, and yet achieved a close to break-even result. Our capital base continues to be strong after a quarter, which has been the costliest ever for the global insurance and reinsurance industry. As anticipated, our equity position as of June 30, 2005 was positively impacted by the restatement of accounts." Mr. Clarke added: "We are also pleased with the pace of the North American run-off, which exceeds our targets, as well as with the sizeable reduction of administrative expenses." Converium has made it a policy not to provide any quarterly or annual earnings guidance and it will not update any past outlook for full year earnings. It will however continue to provide investors with perspectives on its value drivers, its strategic initiatives and those factors critical to understanding its business and operating environment. About the Company Converium is an independent international multi-line reinsurer known for its innovation, professionalism and service. Converium employs about 600 people in 20 offices around the globe and is organized into four business segments: Standard Property & Casualty Reinsurance, Specialty Lines and Life & Health Reinsurance, which are based principally on ongoing global lines of business, as well as the Run-Off segment, which primarily comprises the business from Converium Reinsurance (North America) Inc., excluding the U.S. originated aviation business portfolio. Converium has a "BBB+" rating (outlook stable) from Standard & Poor's and a "B++" rating (outlook stable) from A.M. Best Company. CONTACT: CONVERIUM AG Dr. Kai-Uwe Schanz Chief Communication & Corporate Development Officer Phone: +41 (0) 44 639 90 35 Fax: +41 (0) 44 639 70 35 Zuzana Drozd, Head of Investor Relations Phone: +41 (0) 44 639 91 20 Fax: +41 (0) 44 639 71 20 Web site: http://www.converium.com CONVERIUM AG: Restates Accounts Following Internal Review --------------------------------------------------------- Converium AG has reported on the status of its extensive internal review and the resulting restatement of accounts. Following the restatement of accounts, shareholders' equity as of June 30, 2005 increases by US$69.3 million to US$1,717.5 million. On November 4, 2005, Converium announced its plan to restate prior period financial statements. This decision was taken in light of findings of an extensive internal review, overseen by the Audit Committee with the assistance of independent outside counsel, launched against the backdrop of ongoing investigations by regulators and governmental authorities into non-traditional insurance and reinsurance products. The internal review addresses issues arising from the ongoing governmental inquiries and Converium's own decision to review certain additional items. As a result of the review, Converium will restate its prior financial information for periods through 2004, as well as for each of the quarters from March 31, 2003 through June 30, 2005. Converium has provided unaudited restated financial information for its December 31, 2004 and June 30, 2005 balance sheets. The Company expects to report in full on the effects of the restatement on its previously reported financial information in the near future. The restatement resulted in an increase to previously reported shareholders' equity as of June 30, 2005 of US$69.3 million to US$1,717.5 million and an increase as of December 31, 2004 of US$14.6 million to US$1,734.8 million. Although the impact of the restatement on shareholders' equity as of June 30, 2005 is positive, shareholders' equity for certain periods prior to December 2004 will decrease materially. As a result of the restatement, any previously published financial statements and information should not be viewed as a basis of comparison to the results presented and should no longer be relied upon. Converium will file an amended Form 20-F reflecting the restatement adjustments and their impact on previous disclosures and financial statements. Further, the previously published financial statements should be considered unaudited until the amended Form 20-F is filed and PricewaterhouseCoopers Ltd. completes its re-audit and re-issues its Report of the Independent Group Auditors with respect to the financial statements included therein. While more detailed information will be provided when the restated financial information for all periods is provided, the following summary information is presented at this time: (a) As a result of the internal review Converium has concluded that a number of transactions previously accounted for as reinsurance were accounted for incorrectly under the requirements of FAS 113 ("Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts"). As a result, the financial information relating to these transactions was restated to be recorded as deposits or on a retroactive basis, as appropriate. In some cases, these transactions involved written or oral agreements, understandings or discussions relating to risk expectations that were not appropriately reflected in the accounting treatment at the time of origination. Arrangements of this type would have reduced or eliminated the anticipated risk transfer on which the original accounting was based. In other cases, the internal review did not conclusively establish whether such arrangements existed but the restatement was deemed advisable in light of evidence suggesting a reasonable possibility of such arrangements. This resulted in a decrease of shareholders' equity as of June 30, 2005 of US$49.8 million; (b) The restatement with respect to the accounting for income taxes resulted principally from corrections of the valuation allowance against deferred taxes recorded in 2004 because of the substantial losses incurred that year. This resulted in an increase of shareholders' equity as of June 30, 2005 of US$126.6 million; and (c) The adjustments reflected in the restatement will also include the correction of certain unrelated entries. This resulted in a decrease of shareholders' equity as of June 30, 2005 of US$7.5 million. After discussing the findings of the review with independent outside counsel, Converium's Audit Committee determined that the recommended accounting corrections were appropriate and authorized the restatement. As previously reported in our 2004 Form 20-F, Management and our external auditors informed the Audit Committee that they had identified certain matters that constituted material weaknesses in Converium's internal control environment as at December 31, 2004. In addition, the Audit Committee has subsequently identified material weaknesses in internal controls designed (i) to ensure that the underwriting and risk transfer analysis reflects all relevant elements of contractual relationships entered into by the Company and (ii) to account for income taxes. The Company is taking actions to address weaknesses in its internal control environment. As reported before, Converium has received subpoenas and informal inquiries from certain governmental authorities with respect to non-traditional insurance and reinsurance products. The Company is in the process of sharing the results of its internal review with relevant authorities and will continue to respond to all regulatory inquiries, as appropriate. Although the internal review was extensive, the ongoing governmental inquiries, or other developments, could result in further restatements of Converium's financial results in the future. Peter C. Colombo, chairman of the Board of Directors and the Audit Committee, said: "The Audit Committee believes that Converium's internal review was comprehensive and thorough. Based on the review, we now feel comfortable publishing important data such as our most recent equity position and relevant details pertaining to the third quarter of 2005. As anticipated, the restatement had a positive impact on Converium's June 30, 2005 shareholders' equity." He added: "Based on our rigorous internal review, we do not have any reason to believe that there are any other transactions that require restatement. Of course, we cannot exclude the possibility that further action will be necessary as the governmental inquires will continue and we intend to cooperate with the regulators." CONTACT: CONVERIUM AG Dr. Kai-Uwe Schanz Chief Communication & Corporate Development Officer Phone: +41 (0) 44 639 90 35 Fax: +41 (0) 44 639 70 35 Zuzana Drozd, Head of Investor Relations Phone: +41 (0) 44 639 91 20 Fax: +41 (0) 44 639 71 20 Web site: http://www.converium.com CONVERIUM AG: On Rating Watch Negative Following Restatement ------------------------------------------------------------ Fitch Ratings is keeping Converium AG's Insurer Financial Strength 'BBB-' (BBB minus) rating, together with other ratings within the Converium group as listed below, on Rating Watch Negative (RWN). This follows the publication of restated balance sheet information as at 31 December 2004 and 30 June 2005. Converium has also published its financial results to September 2005. Converium's ratings were originally placed on RWN on 4 November 2005 following the company's announcement that it would delay publication of its Q3 results pending the restatement of its financial accounts. The restatement followed an internal review into the way that the group had accounted for certain complex financial reinsurance transactions. Fitch was concerned that the restatement of Converium's accounts could potentially result in deterioration in the group's overall financial profile and damage its franchise in advance of the forthcoming renewal season. Converium's restatement resulted in an increase in its reported shareholders' equity by 0.8% and 4.2% at 31 December 2004 and 30 June 2005 respectively. Although Fitch takes comfort from the absolute level of capitalization reported by Converium at 30 June 2005, it will seek to determine the true underlying volatility of the group's business following publication of restated financial information for annual periods to 2004 as well as for each quarter from March 2003 to June 2005. This detailed information is expected to be published in early 2006. The group reported a net profit of US$34.5 million and a combined ratio of 106.5% for ongoing operations for the nine- month period to September 2005. Net losses from Hurricanes Katrina, Rita, Dennis and Emily and the European floods totaled US$74.2 million and losses from Hurricane Wilma, which occurred in the fourth quarter of 2005, currently range from US$25 million to US$35 million. Fitch is encouraged by net positive development recorded on prior years' loss reserves for this nine-month period and the successful commutation strategy implemented by Converium Reinsurance North America. Converium has previously communicated its receipt of subpoenas and informal enquiries from several government authorities relating to the use of financial reinsurance contracts. The company will share the results of the internal review with these authorities. It is possible that governmental enquires, or other developments, could result in further restatements of Converium's financial results. Fitch is concerned that regulators have historically focused their attention on companies that have restated their accounts and, as such, Fitch believes that Converium could potentially face an increased risk of fines and/or shareholder actions. Fitch will look to resolve Converium's RWN when the remaining financial restatements have been finalized in early 2006. At the same time, Fitch will consider the success of Converium's renewal season and whether the group's franchise remains undamaged by the financial reinsurance review and the absence of audited accounts. Should the restatement exercise indicate significant heightened volatility in Converium's operating profile and/or franchise damage is evident from the January 2006 renewal season, the group's ratings could be downgraded. Conversely, if actual volatility proves to be limited and Converium's franchise remains undamaged, the group's ratings would likely be affirmed at their current level. Converium companies and ratings that remain on RWN: Converium AG's IFS 'BBB-' rating on RWN Converium Insurance (U.K.) Limited's IFS 'BBB-' rating on RWN Converium Ruckversicherungs (Deutschland) AG's IFS 'BBB-' rating on RWN Converium Holding AG's Long-term 'B+' rating on RWN Converium Finance S.A.'s US$200 million subordinated debt due 2032 - 'BB' rating on RWN CONTACT: CONVERIUM AG Dr. Kai-Uwe Schanz Chief Communication & Corporate Development Officer Phone: +41 (0) 44 639 90 35 Fax: +41 (0) 44 639 70 35 Zuzana Drozd, Head of Investor Relations Phone: +41 (0) 44 639 91 20 Fax: +41 (0) 44 639 71 20 Web site: http://www.converium.com FITCH RATINGS Chris Waterman, London Phone: +44 (0)20 7417 6328 E-mail: chris.waterman@fitchratings.com Andrew Murray Phone: +44 (0)20 7862 4303 E-mail: andrew.murray@fitchratings.com Media Relations Jon Laycock, London Phone: +44 20 7417 4327 Web site: http://www.fitchratings.com SWISS INTERNATIONAL: Reaches New Labor Deal with Cabin Crew ----------------------------------------------------------- On December 19, 2005 SWISS and the Kapers and Unia cabin staff unions have reached agreement on the principles of a new Collective Labour Agreement for the company's flight attendant personnel. The social partners have jointly determined the basic content of the new Collective Labour Agreement (CLA) following long and intensive negotiations. Details of the new terms and conditions of employment for SWISS cabin personnel will now be fleshed out by the end of the year; and the social partners are confident that a new CLA can be submitted for approval to the SWISS flight attendant corps in early January 2006. SWISS, Kapers and Unia have agreed not to disclose any further details of the agreement they have reached until their more detailed negotiations are concluded. CONTACT: SWISS INTERNATIONAL Corporate Communications Phone: +41 (0) 848 773 773 Fax: +41 (0) 61 582 3554 E-mail: communications@swiss.com Web site: http://www.swiss.com ============= U K R A I N E ============= ASKLEPIJ: Goes into Liquidation ------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against Asklepij (code EDRPOU 31810076) on October 24, 2005 after finding the limited liability company insolvent. The case is docketed as 24/641-b. Logistic Trans has been appointed liquidator. Creditors have until December 23, 2005 to submit their proofs of claim to the Economic Court of Kyiv Region, 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B. BORIVSKA AGROHIMIYA: Liquidator Steps in ---------------------------------------- The Economic Court of Harkiv region commenced bankruptcy proceedings against Borivska Agrohimiya (code EDRPOU 05491014) on November 3, 2005 after finding the open joint stock company insolvent. The case is docketed as B-19/66-05. Ms. Svitlana Pivovar (License Number AA 520170) has been appointed liquidator/insolvency manager. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) BORIVSKA AGROHIMIYA 63800, Ukraine, Harkiv region, Borova, Agrohimkomplex (b) SVITLANA PIVOVAR Liquidator/Insolvency Manager Ukraine, Harkiv region, Harkiv district, Hroli, Olimpijska Str. 3/57 (c) ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square, 5, Derzhprom 8th Entrance MERCURY: Gives Creditors Until Friday to File Claims ---------------------------------------------------- The Economic Court of Herson region commenced bankruptcy supervision procedure on LLC Mercury (code EDRPOU 30768186) on August 9, 2005. The case is docketed as 12/149-B-05. Mr. Sergij Kosenko (License Number AB 216842) has been appointed temporary insolvency manager. The company holds account number 2600302000533 at JSCB Herson-Transbank, Herson branch, MFO 352822. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) SERGIJ KOSENKO Temporary Insolvency Manager Ukraine, Herson region, Vijskovij Lane 6/8 (b) ECONOMIC COURT OF HERSON REGION 73000, Ukraine, Herson region, Gorkij Str. 18 MINERALINVEST: Bankruptcy Supervision Begins -------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy supervision procedure on LLC Mineralinvest (code EDRPOU 313104979) on November 8, 2005. The case is docketed as 15/627- b. Mr. Sergij Krupenko (License Number AA 668345) has been appointed temporary insolvency manager. The company holds account number 26005962480568 at First Ukrainian International Bank, Kyiv region branch, MFO 322755. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) MINERALINVEST 01103, Ukraine, Kyiv region, Lesya Ukrainka Str. 15-a (b) SERGIJ KRUPENKO Temporary Insolvency Manager Ukraine, Kyiv region, Vatutin Str. 26/57 (c) ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B NAFTOGAZTRADE LTD.: Under Bankruptcy Supervision ------------------------------------------------ The Economic Court of Kirovograd region commenced bankruptcy supervision procedure on LLC Naftogaztrade Ltd. (code EDRPOU 31200067) November 8, 2005. The case is docketed as 9/187. Mr. Hristenko Vadim (License Number AB 176056) has been appointed temporary insolvency manager. The company holds account number 2600400660112 at JSCB Pravex-Bank, Kyiv region branch, MFO 321983. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) NAFTOGAZTRADE LTD. 27016, Ukraine, Kirovograd region, Dobrovelichkivskij district, Lipnyazhka (b) HRISTENKO VADIM Temporary Insolvency Manager Ukraine, Kirovograd region, Geroiv Stalingradu Str. 4/9 (c) THE ECONOMIC COURT OF KIROVOGRAD REGION 25022, Ukraine, Kirovograd region, Lunacharski str. 29 NEPTUN: Insolvency Manager Takes over Helm ------------------------------------------ The Economic Court of Odessa region commenced bankruptcy proceedings against Neptun (code EDRPOU 20982887) on November 7, 2005 after finding the open joint stock company insolvent. The case is docketed as 32/4-05-750. Mr. Andrij Bachmanov (License Number AB 216901) has been appointed liquidator/insolvency manager. The company holds account number 26009228374001 at CB Privatbank, Odessa regional branch, MFO 328704. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) NEPTUN 65031, Ukraine, Odessa region, Promislova Str. 28 (b) ANDRIJ BACHMANOV Liquidator/Insolvency Manager 65033, Ukraine, Odessa region, Marshal Zhukov Str. 4-zh Phone: (0482) 714-09-05 (c) ECONOMIC COURT OF ODESSA REGION 65032, Ukraine, Odessa region, Shevchenko Avenue 4 PARTIZANSKIJ ELEVATOR: Creditors' Claims Due this Week ------------------------------------------------------ The Economic Court of Herson region commenced bankruptcy supervision procedure on Partizanskij Elevator (code EDRPOU 00956520). The case is docketed as 5/30-B. Mr. Dmitro Kuznetsov (License Number AA 783153) has been appointed temporary insolvency manager. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) PARTIZANSKIJ ELEVATOR 75550, Ukraine, Herson region, Genicheskij district, Partizani, 50 rokiv Zhovtnya Str. 1 (b) ECONOMIC COURT OF HERSON REGION 73000, Ukraine, Herson region, Gorkij Str. 18 SHOSTKA' AGROHIM: Succumbs to Bankruptcy ---------------------------------------- The Economic Court of Sumi region commenced bankruptcy supervision procedure on OJSC Shostka' Agrohim (code EDRPOU 05490776) on October 14, 2005. The case is docketed as 6/99-05. Mr. Dmitro Kozin (License Number AA 487785) has been appointed temporary insolvency manager. The company holds account number 260073578 at JSPPB Aval, Sumi regional branch, MFO 337483. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) SHOSTKA' AGROHIM 41100, Ukraine, Sumi region, Shostka, Bakinskih komisariv Str. 107 (b) DMITRO KOZIN Temporary Insolvency Manager 40035, Ukraine, Sumi region, Internatsionalistiv Str. 5, Office 22 (c) ECONOMIC COURT OF SUMI REGION 40011, Ukraine, Sumi region, Shevchenko Avenue 18/1 UKRAINA: Declared Insolvent --------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against Ukraina (code EDRPOU 03728498) on October 20, 2005 after finding the limited liability company insolvent. The case is docketed as 175/14 b-05. Mr. Yurij Bilik (License Number AA 783144) has been appointed liquidator/insolvency manager. The company holds account number 260014010 at JSPPB Aval, Obuhiv branch, MFO 300818. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) UKRAINA 09260, Ukraine, Kyiv region, Kagarlitskij district, Lishinka (b) YURIJ BILIK Liquidator/Insolvency Manager Phone: (044) 570-29-87, 469-05-32 (c) ECONOMIC COURT OF KYIV REGION 01032, Ukraine, Kyiv region, Komintern Str. 165 VIKTORIYA: Court Appoints Temporary Insolvency Manager ------------------------------------------------------ The Economic Court of Ternopil region commenced bankruptcy supervision procedure on Viktoriya (code EDRPOU 30451727) on October 20, 2005. The case is docketed as 10/B-672. Mr. Anatolij Okryak (License Number AA 116177) has been appointed temporary insolvency manager. The company holds account number 26009111000001 at OJSC Universal Bank, Ternopil branch, MFO 338459. Creditors have until December 23, 2005 to submit their proofs of claim to: (a) VIKTORIYA 47060, Ukraine, Ternopil region, Kremenetskij district, Ridomil (b) ANATOLIJ OKRYAK Temporary Insolvency Manager 46000, Ukraine, Ternopil region, Lipova Str. 17/7 (c) ECONOMIC COURT OF TERNOPIL REGION 46000, Ukraine, Ternopil region, Ostrozski Str. 14a =========================== U N I T E D K I N G D O M =========================== ALPHA CAPITAL: Hires Liquidator from Ian Franses Associates ----------------------------------------------------------- M. E. V. Sanz, chairman of Alpha Capital (UK) Limited, informs that the subjoined special resolution to wind up the company was passed at an EGM held on Dec. 8 at 24 Conduit Place, London W2 1EP. Ian Franses of Ian Franses Associates, 24 Conduit Place, London W2 1EP was appointed liquidator. CONTACT: IAN FRANSES ASSOCIATES 24 Conduit Place London W2 1EP Phone: 020 7262 1199 Fax: 020 7262 2662 E-mail: if@ianfranses.co.uk APEX FIRE: Moore Stephens Liquidators Move in --------------------------------------------- D. H. Bugden, director of Apex Fire UK Limited, informs that a resolution to wind up the company was passed at an EGM held on Nov. 17 at 3-5 Rickmansworth Road, Watford, Hertfordshire WD18 0GX. Steven Draine and David Rolph of Moore Stephens Corporate Recovery, 3-5 Rickmansworth Road, Watford, Hertfordshire WD18 0GX were appointed Joint Liquidators. CONTACT: APEX FIRE UK LTD. Web site: http://apexfireuk.com/ MOORE STEPHENS 3/5 Rickmansworth Road Watford Hertfordshire WD18 0GX Phone: 01923 236622 Fax: 01923 245660 E-mail: steve.draine@moorestephens.com APNIGAS YORKSHIRE: Files for Liquidation ---------------------------------------- S. Akhtar, chairman of Apnigas Yorkshire Limited, informs that resolutions to wind up the company were passed at an EGM held on Nov. 18 at 46 Moorlands Business Centre, Balme Road, Cleckheaton BD19 4EW. J. N. Bleazard of XL Business Solutions Ltd, 46 Moorlands Business Centre, Balme Road, Cleckheaton BD19 4EW was appointed liquidator. CONTACT: APNIGAS YORKSHIRE LTD. Uplane Cntr Commercial Street Batley, West Yorkshire WF17 5DH Phone: 01924477376 ARM PROPERTIES: Newman & Partners Liquidators Enter Firm -------------------------------------------------------- M. M. S. McPhail, chairman of Arm Properties Limited, informs that the special, ordinary and extraordinary resolutions to wind up the company were passed at an EGM held on Dec. 7 at Brinkletts House, 15 Winchester Road, Basingstoke, Hampshire RG21 8UE. Laurence G. Factor of Newman & Partners Insolvency & Recovery Services Limited, Lynwood House, 373-375 Station Road, Harrow, Middlesex HA1 2AW was appointed liquidator. CONTACT: NEWMAN & PARTNERS INSOLVENCY & RECOVERY SERVICES LIMITED Lynwood House, 373-375 Station Road, Harrow, Middlesex HA1 2AW BERKELEY BERRY: Merging Financial Advisory Businesses ----------------------------------------------------- The Board of Berkeley Berry Birch plc (BBB) said on Dec. 19 it intends to combine the activities of its two national independent financial advisory businesses, Berry Birch and Noble Financial Planning Limited, (BBNFP) and Berry Birch and Noble Financial Planning (Weston) Limited. BBB has been trading at a loss during the last 18 months, which has contributed to regulatory capital shortfalls in BBNFP, Weston, and Berkeley Independent Advisers Limited (BIA). This loss has largely been a result of the FSA investigations, and poor performance in some of these businesses. The Board has reviewed the activities of BBNFP and Weston, and is taking action now to deal with these issues. After discussions with the FSA, the Board has decided that, to reduce our regulatory capital requirements in the future and to improve performance, the business of BBNFP will be combined with Weston. The combined business will join BIA, the Group's existing financial services network, early next year once the Company's planned fundraising is completed. These changes will swiftly build a more compliant, and customer focused IFA business. The Board has decided that this combined business will be based on a national self-employed IFA model, like our most successful competitors. In past years, Weston has shown that this approach can be profitable. Performance in BBNFP, where advisers are employed by the business, has been particularly disappointing and it has not been possible to make the business profitable. The Group's other companies, BIA, Berkeley Birch and Noble Insurance Brokers Limited (BBNIB), Berkeley Birch and Noble Estate Planning Limited (BBNEP),Group Support Services Limited ('GSS') and MacRobins Limited are not affected by this restructuring. CONTACT: BERKELEY BERRY BIRCH PLC Jonathan Hall Phone: 02476 232010 ARDEN PARTNERS Andrew Raca, Director, Corporate Finance Phone: 0121 423 8941 BESSON MUSICAL: Calls in Administrators from Grant Thornton ----------------------------------------------------------- Martin Gilbert Ellis and Andrew Hosking (IP Nos 8687, 9009) of Grant Thornton House were appointed joint administrators of Besson Musical Instruments Limited (Company No 00371896) on Dec. 6. Its registered office is at 1 Blackmoor Lane, Croxley Business Park, Watford WD18 8GA. CONTACT: BESSON MUSICAL INSTRUMENTS LTD. Number One Blackmoor Lane Croxley Business Park Watford Hertfordshire WD18 8GA United Kingdom Phone: 01923 659700/01923 659500 Fax: 01923 659600 E-mail: promotions.uk@musicgroup.com Web site: http://www.besson.com/ 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 BOXWICK LIMITED: Hires PricewaterhouseCoopers Liquidator -------------------------------------------------------- Company Names: BOXWICK LIMITED MATHESON (INSURANCE INVESTMENTS) LIMITED M. Henderson, chairman of these companies, informs that the special and ordinary resolutions to wind up the company were passed at an EGM held on Dec. 8 and Tim Walsh and Jonathan Sisson of PricewaterhouseCoopers LLP, Benson House, 33 Wellington Street, Leeds LS1 4JP were appointed joint liquidators. CONTACT: PRICEWATERHOUSECOOPERS LLP Benson House 33 Wellington Street Leeds LS1 4JP Phone: [44] (113) 289 4000 Fax: [44] (113) 289 4460 Web site: http://www.pwcglobal.com CARLBRITE INVESTMENTS: Liquidator from Harrisons Moves in --------------------------------------------------------- P. Turtle, chairman of Carlbrite Investments Limited, informs that the special resolution to wind up the company was passed at an EGM held on Nov. 30 at 99 Gresham Street, London EC2V 7NG. P. R. Boyle of Harrisons, 4 St Giles Court, Southampton Street, Reading RG1 2QL was appointed liquidator. CONTACT: HARRISONS 4 St Giles Court, Southampton Street, Reading RG1 2QL Phone: 0118 951 0798 Fax: 0118 939 4409 E-mail: info@harrisons.uk.com Web site: http://www.harrisons.uk.com CCS CONTRACTS: Administrators from Begbies Traynor Move in ---------------------------------------------------------- G. N. Lee and P. Stanley (IP Nos 009204, 008123) of Begbies Traynor were appointed administrators of CCS Contracts Limited (Company No 03695530) on Dec. 6. The company wholesales household goods. CONTACT: C C S CONTRACTS LTD. Fairweather House, Weston Hall Farm Estate, Crewe, Cheshire CW2 5ND Phone: 01270257899 BEGBIES TRAYNOR Elliot House 151 Deansgate Manchester M3 3BP Phone: 0161 839 0900 Fax: 0161 839 7436 E-mail: manchester@begbies-traynor.com Web site: http://www.begbies.com CYBER-TRADERS: Golf Equipment Distributor Liquidates ---------------------------------------------------- A. Hodges, director of Cyber-Traders UK Limited, informs that resolutions to wind up the company were passed at an EGM held on Nov. 1 at 1 South Pier Road, Ellesmere Port, Cheshire. Jonathan D. Newell and Kerry F. Bailey of PKF (UK) LLP, 5 Temple Square, Temple Street, Liverpool L2 5RH were appointed Joint Liquidators. Cyber-Traders U.K. Ltd. sells discount golf equipment for men, ladies and juniors, including golf sets, clubs, bags and trolleys. CONTACT: CYBER-TRADERS UK LIMITED South Pier Road Ellesmere Port CH65 4FW United Kingdom Phone: 0151-356 8114 Web site: http://www.golfmadness.co.uk/ PKF Web site: http://www.pkf.co.uk FEDERAL-MOGUL: Cooper Industries to Resolve Abex Asbestos Claims ---------------------------------------------------------------- Cooper Industries, Ltd. (NYSE:CBE) and other parties involved in the resolution of the Federal-Mogul Corporation (FMC) bankruptcy proceeding have reached an agreement regarding Cooper's participation in Federal-Mogul's 524 (g) asbestos claimants' trust. By participating in this trust, Cooper will resolve its liability for asbestos claims arising from Cooper's former Abex Friction Products business. The proposed settlement agreement is subject to court approval, approval of 75% of the current Abex asbestos claimants and certain other approvals. The settlement will resolve more than 38,000 pending Abex claims. Future claims will be resolved through the bankruptcy trust, and Cooper will be protected against future claims by an injunction to be issued by the district court upon plan confirmation. "Since Federal-Mogul's bankruptcy process began in October 2001, we have worked tirelessly to bring this matter to a constructive conclusion," said Kirk Hachigian, chief executive officer and president, Cooper Industries. "At the same time, we have strengthened the Company's financial position and improved our strategic flexibility. Given the costs of continued litigation, the uncertainty of legislative reforms and the risks inherent in remaining in the tort system, we believe resolving the Abex liabilities through the trust is the preferable option for our shareholders. With this settlement in place, we will have certainty and finality on the Abex liability and can focus management resources on executing our strategic plan." The claims to be resolved through the bankruptcy trust relate to the Abex Friction Products business of Cooper's former Automotive Products segment. Cooper sold its Automotive Products business to FMC in October 1998. Cooper began defending against these claims pursuant to its guaranty obligations to the prior owner of Abex when Federal-Mogul filed a Chapter 11 bankruptcy petition and indicated that it may not honor its indemnity obligations to Cooper. Key terms and aspects of the Proposed Settlement Agreement -- Cooper has agreed to pay US$130 million in cash into the trust, with US$100 million payable upon Federal-Mogul's emergence from bankruptcy. The remainder will be paid in two US$15 million installments due on Jan. 15, 2006 and Jan. 15, 2007, or upon emergence from bankruptcy, if later. Cooper will receive a total of US$37.5 million during the funding period from other parties associated with the Federal-Mogul bankruptcy; -- Cooper will provide the trust 1.4 million shares of the Company's stock upon Federal-Mogul's emergence from bankruptcy. The agreement provides that the trust may, during the first year after issuance, sell these shares to Cooper at market prices and, thereafter, in open market transactions; -- The agreement also provides for further payments by Cooper subject to the amount and timing of insurance proceeds. Cooper has agreed to make 25 annual payments of up to US$20 million each reduced by certain insurance proceeds received by the trust. In years that the insurance proceeds exceed US$17 million, Cooper will be required to contribute US$3 million with the excess insurance proceeds carried over to the next year; -- Cooper, through Pneumo-Abex LLC, has access to Abex insurance policies with remaining limits on policies with solvent insurers in excess of US$800 million. The trust will retain 10% of the insurance proceeds for indemnity claims paid by the trust until Cooper's obligation is satisfied and will retain 15% thereafter. The agreement also provides for Cooper to receive the insurance proceeds related to indemnity and defense costs paid prior to the date a stay of current claims is entered by the bankruptcy court; and -- Cooper will also be required to forego certain claims and objections in the Federal-Mogul bankruptcy proceedings. In addition, the parties involved have agreed to petition the court for a stay on all current claims outstanding. Although the payments related to the settlement could extend to 25 years and the collection of insurance proceeds could extend beyond 25 years, the liability and insurance will be undiscounted on Cooper's balance sheet as the amount of the actual annual payments is not reasonably predictable. Cooper is in the process of finalizing the amount of insurance recoveries that will be included in the charge to discontinued operations. Cooper anticipates taking an after-tax charge to "loss from discontinued operations" of between US$150 million and US$225 million in the fourth quarter ended December 31, 2005. The range of the charge to discontinued operations primarily related to insurance recoveries, which in any scenario when finalized will be on the lower end of the range of potential insurance recovery estimates. In addition to the Company, parties to the agreement include FMC; Federal-Mogul Products, Inc. (FMP); the Future Claimants' Representative for FMC and FMP appointed in the Chapter 11 cases known as In re Federal-Mogul Global Inc., T&N Limited, et al., No. 01-10578, pending in the United States Bankruptcy Court for the District of Delaware; the Official Committee of Asbestos Claimants for FMC and FMP appointed in the Reorganization Cases; Pneumo-Abex LLC; and PCT International Holdings Inc. These parties have agreed to the terms of the proposed settlement agreement. Cooper Industries, Ltd., -- http://www.cooperindustries.com-- with 2004 revenues of $4.5 billion, is a global manufacturer of electrical products and tools and hardware. Headquartered in Houston, TX, Cooper has approximately 29,000 employees serving more than 90 locations around the world, and sells products to customers in more than 50 countries. CONTACT: KROLL BUCHLER PHILLIPS Liquidator of Federal-Mogul Corp. in the U.K. 84 Grosvenor Street W1X 9DF Phone: +44 (0)20 7493 2550 Contact: Simon Freakley FRIARGATE HOLDINGS: Appoints Administrator ------------------------------------------ William Kenneth Dawson and Debbie Marie Young (IP Nos 008266, 009371) of Deloitte & Touche LLP were appointed administrators of Friargate Holdings Limited (Company No 03135584) on Dec. 1. Its registered office is at Regents Court, 12 Starkie Street, Preston PR1 3LU. CONTACT: FRIARGATE HOLDINGS LIMITED 12 Starkie Street, Preston, Lancashire PR1 3LU Phone: 01772-519000 DELOITTE & TOUCHE PO Box 500 201 Deansgate Manchester Greater Manchester M60 2AT Phone: 0161 832 3555 Fax: 0161 829 3806 E-mail: bill.dawson@deloitte.co.uk HOLIDAY CENTRE: Files for Liquidation ------------------------------------- P. Atkinson, chairman of The Holiday Centre Limited, informs that a resolution to wind up the company was passed at an EGM held on Nov. 8 at Tenon House, Ferryboat Lane, Sunderland SR5 3JN. Ian William Kings of Tenon Recovery, Tenon House, Ferryboat Lane, Sunderland SR5 3JN was appointed liquidator. CONTACT: THE HOLIDAY CENTRE LIMITED Coast Road, Berrow Burnham-On-Sea, Somerset TA8 2RB Phone: 01278751235 TENON RECOVERY Tenon House, Ferryboat Lane, Sunderland SR5 3JN Phone: 0191 511 5000 Fax: 0191 511 5001 Web site: http://www.tenongroup.com LANGBAR INTERNATIONAL: Names Recovery Expert Executive Chairman --------------------------------------------------------------- Langbar International Limited has appointed David Buchler Executive Chairman and Christopher Wallis Finance Director. Stuart Pearson remains an Executive Director. Philip Wood, non-executive director, and Jean Pierre Regli, the Chief Financial Officer, have resigned from the board of Langbar International Limited with effect Dec. 19, 2005. David Buchler is an experienced recovery expert and Chairman of DB Consultants. He has previously been Chairman and co-founder of Buchler Phillips, a firm of recovery experts, Chairman of Kroll Europe and President of the Institute of Insolvency Practitioners. David has been involved in several high profile recovery cases and specializes in turnaround situations. Christopher Wallis, a chartered accountant, is also highly experienced in the field of turnaround, recovery and investigations. The Board is of course, cooperating fully with the Serious Fraud Office in its enquiries into the alleged fraud on the Company. Also, the Company, having previously announced a joint venture with Global Marine Energy plc (formerly MOS International plc) in respect of International Drilling Corporation Limited, have terminated the arrangements at no cost to the Company. Stuart Pearson, Chief Executive, commented: "Having discovered the fraud, within months of my joining the Board, I am determined to recover as much of the shareholders monies as possible. To this end I have restructured the Board and appointed very experienced and well respected recovery experts to lead the process." David Buchler, stated: "This will not be a straight forward assignment. However, we will work with the Company's advisers and, where necessary, the appropriate authorities to determine exactly what has transpired and pursue the recovery of the Company's funds." About the Company Langbar International -- http://www.langbar.com/-- is an independent management and investment firm. Formerly Crown Corporation, it was renamed Langbar after Stuart Pearson became chief executive in June. Headquartered in Bermuda, Langbar International operates internationally, and is listed in London on the Alternative Investment Market of the London Stock Exchange. It has investments in Argentina, Canada, Russia, Eastern Europe, Spain and Portugal. The company is under investigation for fraud in relation to the disappearance of the firm's GBP365 million cash deposits in Banco do Brazil in Sao Paulo. It has replaced Spanish firm Gironella Velasco with Deloitte as auditor. CONTACT: LANGBAR INTERNATIONAL LIMITED Head Office Reed House 31 Church Street Hamilton HM12 Bermuda Phone: +1 (441) 295-3631 E-mail: info@langbar.com KROLL EUROPE, MIDDLE EAST & AFRICA 10 Fleet Place London EC4M 7RB United Kingdom Phone: 44 (0) 207 029 5000 Fax: 44 (0) 207 029 5001 LANGBAR INTERNATIONAL: Drops Proposed IDC Joint Venture ------------------------------------------------------- The Boards of Global Marine Energy plc (formerly MOS International plc), and Langbar International Limited said that they have decided not to proceed with the proposed joint venture vehicle, International Drilling Corporation. The Companies announced on June 22, 2005 that Heads of Agreement had been signed. * * * Under the Heads of Agreement, Langbar will have a 50% interest in IDC. IDC will commission the building of oil rigs and major capital projects connected with the drilling and exploration industry. MOS International plc, an AIM-listed company, will hold the remaining 50% of IDC. It was then already involved in the oil and gas industry where it has considerable expertise in the manufacture of lifting and handling equipment. MOS is an existing supplier to a number of major contractors in the sector and this venture is a complementary activity to its existing business. Crown, through its corporate finance subsidiary Langbar Capital Limited, is to raise the project finance for IDC. MOS will provide project management and industry expertise. About the Company Langbar International -- http://www.langbar.com/-- is an independent management and investment firm. Formerly Crown Corporation, it was renamed Langbar after Stuart Pearson became chief executive in June. Headquartered in Bermuda, Langbar International operates internationally, and is listed in London on the Alternative Investment Market of the London Stock Exchange. It has investments in Argentina, Canada, Russia, Eastern Europe, Spain and Portugal. The company is under investigation for fraud in relation to the disappearance of the firm's GBP365 million cash deposits in Banco do Brazil in Sao Paulo. It has replaced Spanish firm Gironella Velasco with Deloitte as auditor. CONTACT: LANGBAR INTERNATIONAL LIMITED Head Office Reed House 31 Church Street Hamilton HM12 Bermuda Phone: +1 (441) 295-3631 E-mail: info@langbar.com KROLL EUROPE, MIDDLE EAST & AFRICA 10 Fleet Place London EC4M 7RB United Kingdom Phone: 44 (0) 207 029 5000 Fax: 44 (0) 207 029 5001 GLOBAL MARINE ENERGY PLC Phone: 01274 531 862 Philip Wood, Chairman NOBLE & COMPANY LIMITED Phone: 0131 225 9677 Adam Westcott BANKSIDE CONSULTANTS Phone: 0207 367 8888 Michael Padley/Susan Scott LIAM CHIVERS: Appoints Liquidator --------------------------------- L. Chivers, chairman of Liam Chivers (Recycling) Limited, informs that the special, ordinary and extraordinary resolutions to wind up the company were passed at an EGM held on Dec. 8 at The Highways Depot, North Dane Way, Lordswood, Chatham, Kent ME5 8YE. Peter Roderick Frowde of McCabe Ford Williams, Bank Chambers, 1 Central Avenue, Sittingbourne, Kent ME10 4AE was appointed liquidator. Creditors are required on or before February 28, 2006, to send in their full forenames and surnames, addresses and descriptions, full particulars of debt or claims, and the names and addresses of their Solicitors (if any), to Peter Roderick Frowde and if so required by notice in writing their debt or claims. CONTACT: MCCABE FORD WILLIAMS Bank Chambers, 1 Central Avenue, Sittingbourne, Kent ME10 4AE Phone: (01795) 479111 Fax: (01795) 428810 E-mail: sittingbourne@mfw.co.uk Web site: http://www.mfw.co.uk MIDLAND RESOURCE: Creditors Meeting Set Thursday ------------------------------------------------ Creditors of Midland Resource Centre Ltd.(Company No 04932062) will meet on December 22, 2005, 11 a.m. at Travelodge Stafford Hotel, Moto Service Area, M6 Motorway Northbound, Eccleshall Road, Stafford ST15 0EU. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Jonathan Guy Lord and Robert Lochmohr Cooksey, joint administrators of Bridgestones, 125-127 Union Street, Oldham OL1 1TE. CONTACT: MIDLAND RESOURCE CENTRE Minster House 88-89 Darlington Street Wolverhampton West Midlands WV1 4EX Phone: 01902 424529 Fax: 01902 771504 BRIDGESTONES 125-127 Union Street Oldham Lancashire OL1 1TE Phone: 0161 785 3700 Fax: 0161 785 3701 E-mail: rlc@bridgestones.co.uk NETWORK RAIL: Regulator Sets Revenue Requirement at GBP20 Bln ------------------------------------------------------------- The Office of Rail Regulation on Dec. 15 published its initial assessment of the prospects for Network Rail's funding for the five years starting in April 2009 (Control Period 4), and also consulted on the future financial framework for setting Network Rail's allowed revenue. The assessment suggests, on the basis of Network Rail's current business plan assumptions of future levels of rail traffic, that Network Rail's revenue requirement could be in the range GBP17 - 20 billion for the five years 2009 to 2014 (GBP3.4 to GBP4.0 billion a year), compared with GBP22.7 billion allowed in the current control period (2004-2009). Underpinning this assessment is an analysis by ORR of the work that Network Rail will need to undertake to maintain the serviceability and performance of the rail network, possible trends in the costs of that work, and assumptions about the required return on Network Rail's capital. The expenditure assessment take account of advice from ORR's consultants that there is scope for continued unit cost reductions of between 2 and 8% a year over CP4. Chris Bolt, ORR Chairman, said: "The Railways Act 2005 set out a new framework for the industry. Ministers, including for Scotland the Scottish Ministers, are now required to give ORR a clear specification of the high level outputs they expect the railway to deliver and the funding they are prepared to make available. The purpose of this document is to provide an input to decisions by Ministers on their output specification and the scale of public funding for rail. "Given the expected growth in demand, it will be particularly challenging for Network Rail and its partners to develop plans which both maintain and improve safety and operational performance and accommodate the increase in the costs of financing Network Rail's balance sheet, without adding to pressures on funding. This will require relentless pursuit of improved efficiency, while not compromising long-term sustainability of the network. So we are also seeking views on the issues which will need to be further developed by Network Rail before it publishes its medium term plan in June 2006." Issues which ORR expects Network Rail to address in developing this plan include: -- its understanding of asset knowledge and cost causation; -- passenger and freight demand growth; -- further disaggregation of information on activity and expenditure; and -- its own view of possible future efficiency improvements. Analysis of these issues will continue through 2006, leading to publication by Ministers of their specification of outputs and funding in mid-2007. As this document makes clear, final decisions on Network Rail's allowed revenue for CP4, which ORR expects to reach in Autumn 2008, could be outside the range illustrated if the output specification differs significantly from the assumptions in Network Rail's current business plan. The document also consults on key strategic issues concerning the financial framework for Network Rail in CP4, in particular to provide effective incentives for Network Rail to continue to deliver efficiency savings and improvements in performance, including safety performance. Chris Bolt continued: "Significant further efficiency gains by Network Rail may only be achievable if, working with its customers and suppliers, it is encouraged to take up more demanding challenges and adopt innovative approaches, and is rewarded for doing so. The alternative is likely to be a company which is less able to respond to the pressures of increased demand and to succeed in the relentless pursuit of improved efficiency while not compromising long-term sustainability of the network." * * * ORR's Initial Assessment of Network Rail's CP4 Revenue Requirement and Consultation on the Financial Framework is published on Dec. 15, and is available from the ORR Web site. Responses to the consultation are requested by 31 March 2006. Assessing Network Rail's scope for efficiency gains over CP4 and beyond: a preliminary study, LEK Consulting (International) Ltd. and Oxera Consulting Ltd., December 2005. This report is available on the ORR Web site. The 2008 Periodic Review started in August 2005 with the publication of the first consultation document "Periodic Review 2008: First Consultation Document" (please see Related links) Final Conclusions are planned for publication in October 2008. The current control period (Control Period 3), runs from April 2004 until March 2009. To set Network Rail's access charges, ORR must establish the efficient level of expenditure to deliver the required network outputs and the return it is permitted to earn on its regulatory asset base. From these ORR derives Network Rail's gross revenue requirement and nets off stations charges, property income and freight and open access passenger charges. This net revenue requirement forms the basis of access charges to franchised passenger train operators. Generally these operators benefit from an indemnity from Government, so ultimately any reduction or increase in charges flows back to Government's budget. Following Network Rail's 2006 submission to the review, ORR will review it and publish a further assessment, prior to issuing a formal commencement notice for the review. The Railways Act 2005 then requires the Secretary of State for Transport (for England and Wales) and Scottish Ministers (for Scotland) to present to ORR information on the high level outputs (HLOS) they want the railway to provide, and a statement of funds available. ORR must then determine the outputs that Network Rail must deliver to achieve the HLOS, the cost of delivering them in the most efficient way, and the implications for the charges payable by train operators to Network Rail for using the railway network. If, at the end of ORR's review, there is a mismatch between the outputs the Secretary of State or Scottish Ministers are seeking and the funding available, the Act gives to ORR the task of determining which rail outputs should be delivered. * * * Network Rail welcomes the early publication of the Office of Rail Regulation's assessment of future revenue requirements. Although this is still three years away, having a considered and detailed analysis of the requirements will enable constructive dialogue on options to take place. During this five-year, Control Period (CP3), the regulator set an aggressive cost reduction target of 31%. We are well on the way to achieving these targets and initiatives, such as taking maintenance in-house, the systematic renegotiation of all supply contracts and improved delivery processes, are driving through significant efficiencies. Over the coming months, we will work closely with the ORR, the DfT and the Scottish Executive to identify further efficiencies that will contribute to reducing the level of future revenue requirements. Network Rail's wider responsibilities have also been highlighted by the ORR. The company has made a number of changes since the last review to ensure closer co-operation across the industry, and the importance in the future of continuing this work, putting passengers and freight customers first, is to be welcomed. About the Company Railtrack went into administration in 2001 after the government withdrew funding for the company whose reputation was wrecked by a fatal crash in 2000 at Hatfield. Mr. Justice McKay imposed fines of GBP3.5 million on Network Rail (which assumed Railtrack's liabilities), after finding it guilty of health and safety offences associated with the Hatfield crash. Shareholders had sued the government for "misfeasance of justice" and a breach of human rights to get GBP157 million in compensation. High Court Justice Lindsay rejected the claim in October. CONTACT: NETWORK RAIL LIMITED 40 Melton St. London NW1 2EE, United Kingdom Phone: +44 20 7557 8000 Fax: +44 20 7557 9000 Web site: http://www.networkrail.com NETWORK RAIL: Signs Multi-million-pound National Steel Contracts ---------------------------------------------------------------- Network Rail has finalized a multi-million pound, long-term steel contracts on Dec. 15. The contracts will deliver over 100,000 tons of high quality rail a year and will become the cornerstone of Network Rail's rail renewal program in the years ahead and will play a part in delivering a better train service for passengers. The new contracts have been signed with two suppliers with a third in final negotiations: (a) Corus: worth around GBP40-50 million in the first year of a seven-year contract; and (b) VOESTALPINE: worth around GBP12-16 million in the first year of a five-year contract. Iain Coucher, deputy chief executive, said: "We're carrying out a huge amount of work in the years ahead in a bid to rebuild Britain's railways. This challenging task is well underway and these new steel contracts will ensure that we have a quality product that will help us to modernize our network." The new contracts have tough quality targets with long warranty periods and clauses for rejection -- the emphasis is very much on a high quality product at a competitive price. About the Company Railtrack went into administration in 2001 after the government withdrew funding for the company whose reputation was wrecked by a fatal crash in 2000 at Hatfield. Mr. Justice McKay imposed fines of GBP3.5 million on Network Rail (which assumed Railtrack's liabilities), after finding it guilty of health and safety offences associated with the Hatfield crash. Shareholders had sued the government for "misfeasance of justice" and a breach of human rights to get GBP157 million in compensation. High Court Justice Lindsay rejected the claim in October. CONTACT: NETWORK RAIL LIMITED 40 Melton St. London NW1 2EE, United Kingdom Phone: +44 20 7557 8000 Fax: +44 20 7557 9000 Web site: http://www.networkrail.com OCTONE LIMITED: Appoints Administrators from Tenon Recovery ----------------------------------------------------------- S. Waller, director of Octone Limited, informs that the special resolution to wind up the company was passed at an EGM held on Nov. 28 at Octone Limited, Brechin Business Centre, Southesk Street, Brechin, Angus, Scotland DD9 6DY. Andrew Pear and Ian Cadlock of Tenon Recovery, Lyndean House, 43-46 Queens Road, Brighton, East Sussex BN1 3XB were appointed joint liquidators. Creditors are required on or before January 28, 2006, to send in their full forenames and surnames, their addresses and descriptions, full particulars of debt or claims, and the names and addresses of Solicitors (if any), to A. J. Pear and I. Cadlock and if so required by notice in writing their debt or claims. CONTACT: TENON RECOVERY Lyndean House, 43-46 Queens Road, Brighton, East Sussex BN1 3XB Phone: 01273 725566 Fax: 01273 724502 Web site: http://www.tenongroup.com OFF SHOOT: Names BDO Stoy Hayward Administrator ----------------------------------------------- Charles MacMillan and Toby Underwood (IP Nos 6000, 9271) of BDO Stoy Hayward LLP were appointed joint administrators of Off Shoot Clothing Limited (Company No 2726308) on Dec. 6. CONTACT: OFF SHOOT CLOTHING LTD. Off Shoot House 68 The Grove Ilkley, West Yorkshire LS29 9PA United Kingdom Phone: (01943) 817650 BDO STOY HAYWARD LLP 1 City Square Leeds West Yorkshire LS1 2DP Phone: 0113 244 3839 Fax: 0113 204 1200 O.H.R. LTD.: Files for Liquidation ---------------------------------- O.H.R. Limited informs that a resolution to wind up the company was passed at an EGM held on Nov. 16 at Third Floor, 3 Field Court, Gray's Inn, London WC1R 5EF. Jacqueline Barbara Stephenson of Third Floor, 3 Field Court, Gray's Inn, London WC1R 5EF was appointed liquidator. CONTACT: OHR LTD. 56 St Michaels Road Westcliffe, Bournemouth, Dorset BH2 5EB Phone: 01202-552686 PEAK ENTERTAINMENT: Posts US$779,199 Net Loss in Third Quarter -------------------------------------------------------------- Peak Entertainment Holdings Inc. delivered its financial results for the quarter ended Sept. 30, 2005, to the Securities and Exchange Commission on Nov. 23, 2005. Peak Entertainment incurred a US$779,199 net loss on US$437,908 of revenues for the three months ended Sept. 30, 2005, versus a US$1,144,129 net loss on US$138,474 of revenues for the same period in 2004. The Company's balance sheet, showed US$3,900,059 in total assets and US$1,564,771 of liabilities. At Sept. 30, 2005, the Company had no cash and used approximately US$521,000 to fund operations and net loss for the nine months ended Sept. 30, 2005. Going Concern Doubt Garbutt & Elliott Limited expressed substantial doubt about Peak Entertainment's ability to continue as a going concern after it audited the Company's financial statements for the years ended Dec. 31, 2004 and 2003. The auditing firm pointed to the Company's recurring losses from operations, cash flow deficits and net capital deficiency. About Peak Entertainment Headquartered in Derbyshire, England, Peak Entertainment Holdings Inc. -- http://www.peakentertainment.co.uk/-- is a fully integrated multimedia company dedicated to quality children's television entertainment, character licensing and consumer products. The Company's unique, fully integrated business model, which includes concept creation and branding, production of entertainment programs, character licensing, and manufacturing and distribution of toys and related consumer products, gives it maximum quality control and speed-to-market while developing total brand equity. Peak's properties include Monster Quest, The Wumblers, Little Big Feet, Countin' Sheep and Mini Flora. CONTACT: PEAK ENTERTAINMENT HOLDINGS INC. Bagshaw Hill Bakewell, Derbyshire DE45 1DL Tel Phone: 01629 814555 Fax: 01629 813539 E-mail: info@peakentertainment.co.uk PHENOMIND PLC: Hires Begbies Traynor to Liquidate Business ---------------------------------------------------------- S. Richards, chairman of Phenomind plc, informs that a resolution to wind up the company was passed at an EGM held on Nov. 10 at 70 Conduit Street, London W1S 2GF. Lloyd Biscoe of Begbies Traynor, The Old Exchange, 234 Southchurch Road, Southend on Sea, Essex SS1 2EG was appointed liquidator. Phenomind offers Web design, hosting, and programming, including Oracle, XML, booking engines, and data driven Flash. CONTACT: PHENOMIND PLC 351 Oxford Street, Mayfair London W1C 2JF BEGBIES TRAYNOR The Old Exchange, 234 Southchurch Road Southend-on-Sea SS1 2EG Phone: 01702 467255 Fax: 01702 467201 E-mail: southend@begbies-traynor.com Web site: http://www.begbies.com RENTOKIL INITIAL: Tackles Pension Scheme Deficit ------------------------------------------------ In its third quarter update on 3 November 2005, Rentokil Initial plc announced that it was in discussions with the Trustees of the Defined Benefit (DB) Sections of the Rentokil Initial Pension Scheme regarding measures to address the Scheme's funding deficit and to ensure appropriate future funding levels. These discussions have resulted in the company proposing a series of positive steps, which will deal with these issues and protect the security of the Scheme's benefits for its members. The deficit of the U.K. Scheme under IAS 19 as at 30 November 2005 was estimated to be GBP325 million. In response to a general trend of increasing longevity, which has adversely impacted the Scheme, the Company and Trustees have agreed to a more prudent basis for estimating longevity that will increase this deficit by an additional GBP24 million. An agreement has been reached between the Company and the Trustees to make an immediate payment of GBP200 million, with the remaining deficit being met by a series of payments ending no later than January 2012. The changed regulatory environment for pensions requires the Company to deal with these issues in a shorter timescale than it might otherwise have done. The total funding required to address the deficit will be in the range of GBP370 million to GBP380 million depending on the final timing of the payments. In order to reduce the likelihood that the scheme deficit will increase materially in the future, following discussions with the Company, the Trustees will be reviewing the Scheme's investment strategy, with the aim of reducing potential volatility that might be caused by market movements. This will result in a lower exposure to equities over time and improve the security of Scheme benefits. With immediate effect, the Company will be entering into a period of comprehensive consultation with active members of the DB Sections of the Scheme. The Company is proposing to close the DB Sections for the future accrual of benefits for active members. The aim of this is to reduce exposure to future shortfalls and to ensure that the Scheme will be in a position to continue to pay all benefits that have been earned to date by its members. It will also provide the Company with more predictable costs of future pension provision. The proposed closure will have no impact on the scheme's deferred pensioners and pensions in payment. If the Company's proposals are implemented, existing active members of the Scheme's DB Sections will be offered membership in a defined contribution arrangement so that they can continue to make provision for retirement. Final decisions regarding the review will be taken once the consultation period with active members has been completed later in 2006. * * * The Defined Benefit Sections of the Rentokil Initial Pension Scheme currently has 3,000 active members, 15,000 deferred pensioners and 8,000 pensions in payment. At 30 November 2005, the scheme had assets of GBP640 million and liabilities of GBP965 million. In the Lane Clark Peacock Accounting for Pensions Annual Survey 2005, Rentokil Initial had the 96th lowest level of pension scheme funding out of the FTSE-100. CONTACT: RENTOKIL INITIAL PLC Felcourt East Grinstead West Sussex RH19 2JY Phone: +44-1342-833-022 Fax: +44-1342-326-229 E-mail: pr@rentokil-initial.co.uk Web site: http://www.rentokil-initial.com R. SHAYLER & SON: Goes into Liquidation --------------------------------------- J. Grove, chairman of R. Shayler & Son Limited, informs that resolutions to wind up the company were passed at an EGM held on Nov. 16 at 1st Floor, 4 Meadow Court, 41-43 High Street, Witney, Oxfordshire OX28 6ER. Peter Edwards of Peter Edwards & Co. was appointed liquidator. CONTACT: R. SHAYLER & SON LIMITED Aston Road, Bampton, Oxfordshire OX18 2AF Phone: 01993850820 SANITY GROUP: Names KPMG Administrator -------------------------------------- Howard Smith (IP No 9341) and Brian Green (IP No 8709) of KPMG LLP were appointed administrators of Sanity Group Limited (Company No 04912715) on Dec. 6. Sanity -- http://www.sanity.co.uk/-- is a hygiene services company. It provides a full range of washroom services from the collection and disposal of sanitary waste to the replenishment of soap dispensers and air fresheners to the provision of water management systems and the supply of hand dryers and vending machines. CONTACT: SANITY GROUP LIMITED Phone: 0800 458 4596 E-mail: info@sanity.co.uk KPMG LLP St James' Square Manchester Greater Manchester M2 6DS Phone: 0161 838 4000 Fax: 0161 838 4040 SIMRON CONSTRUCTION: Calls in Liquidator ---------------------------------------- R. J. French, chairman of Simron Construction Limited, informs that resolutions to wind up the company were passed at an EGM held on Nov. 18 at 24 Conduit Place, London W2 1EP. Ian Franses of Ian Franses Associates, 24 Conduit Place, London W2 1EP was appointed liquidator. CONTACT: SIMRON CONSTUCTON LTD. Modern House Eltham High Street Eltham, London SE9 1DA Phone: 020 8 850 1118 Fax: 020 8 850 5888 E-mail: simron@simronuk.co.uk Web site: http://www.simronuk.co.uk/ IAN FRANSES ASSOCIATES 24 Conduit Place London W2 1EP Phone: 020 7262 1199 Fax: 020 7262 2662 E-mail: if@ianfranses.co.uk SWEDISH WINDOW: Creditors Meeting Set Thursday ---------------------------------------------- Creditors of Swedish Window Company Limited will meet on December 22, 2005, 12 noon at Baker Tilly, Friars Courtyard, 30 Princes Street, Ipswich IP1 1RJ. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to N. Millar, joint administrative receiver of Baker Tilly, Friars Courtyard, Princes Street, Ipswich IP1 1RJ not later than 12 noon, December 21, 2005. CONTACT: SWEDISH WINDOW COMPANY LTD. Old Maltings House Hall Street Long Melford Suffolk CO10 9JB E-mail: info@swedishwindows.com Web site: http://www.swedishwindows.com/ BAKER TILLY 30 Princes Street, Ipswich IP1 1RJ Web site: http://www.bakertilly.co.uk THIEFBEATERS LIMITED: Appoints Cooper Parry Administrator --------------------------------------------------------- Tyrone Shaun Courtman and Shaun Neil Adams (IP Nos 7237, 8568) of Cooper Parry LLP were appointed administrators of Thiefbeaters Limited (Company No 03774576) on Dec. 7. Thiefbeaters Limited -- http://www.caravan- sitefinder.co.uk/suppliers/37/ offers security services. CONTACT: THIEFBEATERS LIMITED P.O. Box 5789, Towcester, Northamptonshire, Towcester, NN12 8ZJ Phone: 0870 794 0111 COOPER PARRY LLP 14 Park Row, Nottingham NG1 6GR Phone: +44 (0) 1332 295544 Fax: +44 (0) 1332 295600 Web site: http://www.cooperparry.com UNICORN DESIGN: Succumbs to Liquidation --------------------------------------- M. Itzler, director of Unicorn Design & Build Services Ltd. (t/a Unicorn Decorating Services), informs that resolutions to wind up the company were passed at an EGM held on Nov. 18 at Mountview Court, 1148 High Road, Whetstone, London N20 0RA. Kikis Kallis of Kallis & Co., Mountview Court, 1148 High Road, Whetstone, London N20 0RA was appointed liquidator. CONTACT: UNICORN DESIGN & BUILD SERVICES LTD. 51 Park Avenue London N22 7EY Phone: (020 8881 5586) KALLIS & CO. Mountview Court 1148 High Road Whetstone London N20 0RA Phone: 020 8446 6699 Fax: 020 8492 6099 UNWINS WINE: Bank Brings in Administrator ----------------------------------------- HBOS, the banker of high-street retailer Unwins Wine Group, has called in Myles Halley of KPMG as administrator for the off- license chain, according to The Telegraph. Recent accounts of Unwins filed at the Companies House, showed debt of GBP35.5 million, including GBP9.5 million in bank loans and overdrafts and GBP19.5 million to trade creditors, the report said. KPMG is now assessing the possible sale of parts of the company as a going concern. Interested parties include: -- Wine Cellar, the rival off-license business owned by Sir David Alliance; -- Castel, the French owner of the Oddbins; and -- Nicolas chains Raj Chatha, who owns Whittals Wines. Meanwhile, Friends Provident, Unwins pension scheme manager, is investigating where the pension contributions of the staff at Unwins went. Staff said that their pensions contribution for October and November have been deducted but not paid to the scheme. Under the current pensions regulations, the contributions in one month should be remitted by the 19th day of the following month. Should the company fail to do so, it has 90 days to explain to the regulator. Authorities have the power to force the company to pay if it has not gone into administration, or else the amount will be paid by a back-stop insurance fund. The 162-year-old Unwins Wind Group operates 380 Unwins shops and wholesale drinks business. It employs 2,000 mostly part-time staff. The company was sold by controlling Wetz family to Australian businessman Philipp Cook's DM Private Equity for GBP32 million in March. The deal included the sell-off of the group's freehold assets for GBP25 million. CONTACT: THE UNWINS WINE GROUP LTD. Birchwood House Victoria Road Dartford Kent DA1 5AJ Phone: 013 2227 2711 E-mail: jturner@unwins.co.uk Web site: http://www.unwins.co.uk KPMG Aquis Court, 31 Fishpool Street, St Albans, AL3 4RF Phone: 0500 644665 Web site: http://www.kpmg.co.uk FRIENDS PROVIDENT P.O. Box 1550 Milford Salisbury Wiltshire Web site: http://www.friendsprovident.co.uk/ VALCO UK: Appoints Liquidator from Begbies Traynor -------------------------------------------------- Valco UK Limited informs that a resolution to wind up the company was passed at an EGM held on Nov. 18 at The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG. Jamie Taylor of Begbies Traynor, The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG was appointed liquidator. CONTACT: VALCO UK LIMITED Head Office and Electronics Division 18 Redhills Road Eastern Industrial Estate South Woodham Ferrers Chelmsford, Essex CM3 5UL Engineering Division 14 Redhills Road Eastern industrial Estate South Woodham Ferrers Chelmsford, Essex CM3 5UL Web site: http://www.valcouk.com/ E-mail: carolines@valcouk.com Phone: 44 (0)1245 328888 Fax: 44 (0)1245 329198 BEGBIES TRAYNOR The Old Exchange, 234 Southchurch Road Southend-on-Sea SS1 2EG Phone: 01702 467255 Fax: 01702 467201 E-mail: southend@begbies-traynor.com Web site: http://www.begbies.com WALSALL PRINT: Administrators from PKF Move in ---------------------------------------------- Ian J. Gould and Brian J. Hamblin (IP Nos 7866, 2085) of PKF (UK) LLP were appointed joint administrators of The Walsall Print Company Limited (Company No 00844239) on Nov. 30. Its registered office is Midland Road, Walsall, West Midlands WS1 3QL. CONTACT: WALSALL PRINT CO. LTD. Midland Road Walsall WS1 3QL West Midlands Phone: 01922 721272 Fax: 01922 625950 Web site: http://www.walsallprintgroup.com/ PKF New Guild House 45 Great Charles Street Queensway Birmingham West Midlands B3 2LX Phone: 0121 212 2222 Fax: 0121 212 2300 E-mail: ian.gould@uk.pkf.com ********* 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. 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