/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060202.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, February 2, 2006, Vol. 7, No. 24 Headlines F R A N C E LUCITE INTERNATIONAL: S&P Puts BB Rating on Watch Developing RHODIA S.A.: Redeems Part of 2010 Senior Notes G E R M A N Y ALTEN- UND PFLEGEHEIM: Bankruptcy Proceedings Start in Friedberg DESIKOM AKTIENGESELLSCHAFT: Court Sets Feb. 21 Claims Bar Date DUENNBIER MAURER: Claims Filing Period Ends March 1 FRANK WOBKER: Claims Registration Ends Next Week IMO GMBH: Meeting of Creditors Slated for March 2 K&L MANAGEMENT: Gera Business Under Bankruptcy Administration KLEINTRANSPORTE/KURIERDIENST: Court Appoints Administrator LOUIS KRESS: Chemnitz Court Begins Bankruptcy Process NORBERT SCHAFER: Meeting of Creditors Slated for April 21 OET OBJEKT: Bielefeld Court Opens Bankruptcy Proceedings I T A L Y INTERCONFIDI NORDEST: Fitch Affirms Long-Term BB+ Rating VOLARE GROUP: Industry Ministry Suspends Sale to Alitalia VOLARE SPA: Roman Court Shoots Down Alitalia's Takeover Bid K A Z A K H S T A N ALLIANCE IN ALMATY: Court Rules Insolvency FORT & C: Creditors Have Until Feb. 21 to File Claims GIFT PROMOTION: Declared Insolvent INTRAS: Creditors' Claims Due This Month KONSUL ITM: Court Sets Feb. 21 Claims Bar Date N E T H E R L A N D S LAURUS N.V.: To Dispose of Edah and Konmar Businesses LAURUS N.V.: Delegates Management Roles on Member's Exit ROMPETROL GROUP: Fitch Affirms Senior Unsecured Rating at B- ROYAL SHELL: Share Repurchase Scheme Progressing R U S S I A AGRO-PROM-ENERGO: Declared Insolvent BUILDING COMPLEX: Bankruptcy Supervision Begins COMFORT PLUS: Omsk Court Opens Bankruptcy Proceedings DOR-REM-STROY: Bankruptcy Hearing Set April 11 METROMEDIA INTERNATIONAL: Inks In Re Fuqua Settlement Pact PETROVSK-AGRO-MONTAGE: Declared Insolvent ROMODANOV-AGRO-SNAB: Claims Filing Period Ends Feb. 17 SOV-TRANS-AUTO-ROSTOV: Insolvency Manager Takes Over Firm STAVROPOL-TRANS-METAL: Stavropol Court Names Insolvency Manager TATSINSK-SEL-KHOZ-KHIMIYA: Bankruptcy Hearing Set Feb. 21 URYUPINSKIY: Undergoes Bankruptcy Supervision in Volgograd S P A I N FONDO DE TITULIZACION: Fitch Rates Class E Notes at BB T U R K E Y ERDEMIR DEMIR: S&P Affirms Long-Term BB- Rating TURKIYE PETROL: Fitch Affirms Foreign Currency Rating at BB- U K R A I N E AGROCENTRSOYUZ: Court Names Andrij Vershinin as Liquidator KROSS: Sumi Court Rules on Insolvency LADIZHINSKIJ: Preparing for Liquidation MALAHIT: Insolvency Manager Illya Maksimov Comes In STEPOK: Harkiv Court Opens Bankruptcy Proceedings STROJINDUSTRIYASERVICE: Succumbs to Insolvency in Kyiv SVITLOVODSK' BREAD: Crumbles Into Insolvency TEPLOGAZVODBUD: Liquidator Takes Over Operations U N I T E D K I N G D O M BEN DAVIS: Meeting of Creditors Set Monday BOOTS GROUP: Concludes Disposal of Boots Healthcare Unit CIRCATEX GROUP: Circuit Board Manufacturer Hires Administrator CROSSCO 925: Bank of Scotland Appoints Tait Walker as Receiver CURVED PRESSINGS: Hires Administrators from Pure Recovery EGNI ENERGY: Retailer Hires Tenon Recovery to Administer Assets FORMASONS LIMITED: Financial Woes Prompt Voluntary Liquidation FULFILMENT & DISTRIBUTION: Creditors to Meet Today GALAXY COACHWORKS: Winding Up Assets in London HIGHBURY LIFESTYLE: In Administrative Receivership HIGHBURY NEXUS: Appoints Ernst & Young as Administrator INEOS HOLDINGS: S&P Rates EUR400-Mil Second-Lien Loan at B- INSIDE TRACK: Creditors Confirm Voluntary Liquidation JWS CONSTRUCTION: Taps Liquidators to Wind Up Operations KARMPAC LIMITED: Winding Up Assets in Gainsborough KIBER LIMITED: Brings In Ashcrofts Firm to Liquidate Assets KINGSWOOD PRECISION: Begins Voluntary Liquidation LAUNDO LIMITED: Calls in Administrators from Tait Walker LINK-IT SERVICES: Names Unity Corporate Recovery as Liquidator LOGICOM INTEGRATED: Liquidators from Ernst & Young Move In MBR REALISATIONS: Debt Claims Filing Period Ends March 10 MCF DEVELOPMENTS: Liquidating Assets in Royston MILLENIUM MOTORCYCLE: Lloyds TSB Bank Appoints Receiver MILL TRANSPORT: Begins Voluntary Liquidation Proceedings MINIMEC LIMITED: Creditors Meeting Set Next Week MULTIDRIVE LIMITED: Vehicle Maker Calls In Administrator NORTHERN FOODS: Redeems Convertible Bonds in Full OLYMPIAN AUTOMOTIVE: In Administrative Receivership P A ADDISON: Hires Baker Tilly Liquidator PURPLE INC: Calls In Administrators from Rothman Pantall & Co. RODAN DESIGN: Kitchen Maker Taps Grant Thornton Administrator SHADY GROVE: Calls In Administrator from Barringtons Limited SHERIOL 120: RFS Limited Appoints Grant Thornton Receiver X-IT 18: Hires Tomlinsons to Administer Assets ********** =========== F R A N C E =========== LUCITE INTERNATIONAL: S&P Puts BB Rating on Watch Developing ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on Lucite International Group Holdings Ltd. on CreditWatch with developing implications in light of the planned sale of Lucite by its owner, Charterhouse. Developing implications means that the rating could be raised, lowered, or affirmed. "The CreditWatch status reflects firstly the uncertainty at this stage regarding the sale process, and secondly the fact that Lucite's financials could be weakened if leverage increases markedly, or on the contrary, enhanced, if it is sold to a stronger group that would integrate and refinance Lucite," said Standard & Poor's credit analyst Khaled Zitouni. Lucite, which had 2004 sales of GBP700 million, produces and distributes methacrylate monomers (MMAs)--the principal building block of acrylics--and derived acrylic-based polymers, resins, sheets, and composites. Products are sold worldwide, including through own brands; Lucite has 17 facilities located in the Americas, Europe, South Africa, and Asia. Even if at this stage the final outcome of the sale process is unclear and undecided--the process is still ongoing--one of the following outcomes appears likely: (a) A new private equity investor buys Lucite. This would most likely negatively impact the rating, depending on the magnitude of the additional debt used for the LBO. (b) A refinancing is made. This may also be negative for the rating, as leverage may also increase to support shareholder-oriented measures (dividends). Part of the proceeds may also benefit the company, if they are used to extend the debt amortization profile, provide more liquidity resources, and lower borrowing costs. (c) A larger and financially stronger chemical company buys Lucite. This could be positive for the rating, since Lucite would be refinanced with cheaper debt and would be integrated within a new, bigger, better-rated group. Lucite could be attractive to a trade buyer as it has leading positions by far in its main product, MMAs. Lucite has about 38% of the "merchant" market (products sold externally, in contrast to products used internally) and contributes 25% of world production. It is also a strong player in the downstream- acrylics market (40% of revenues), in which it benefits from a diverse end-user base. Furthermore, Lucite has a new patented technology (alpha process) that, if delivering as promised, will substantially reduce costs and be a real competitive advantage. "We aim to resolve the CreditWatch placement once the sale process has been clarified, notably regarding the new owner's identity, the new financial policy, and the integration benefits, if any," said Mr. Zitouni. The process is expected to be finalized in the second quarter of 2006. RHODIA S.A.: Redeems Part of 2010 Senior Notes ---------------------------------------------- Rhodia S.A. used EUR424 million from its EUR604 million rights issue in 2005 to redeem part of its 2010 Senior Notes issued in 2004, and 2011 Senior Subordinated Notes issued in 2003. This partial redemption of high cost debt allows Rhodia to reduce by approximately EUR38 million its annual interest costs. Rights Launching On Nov. 25, TCR-Europe reported that Rhodia launched a EUR604 million rights issue to reduce debt and fund development projects. Chief Executive Jean-Pierre Clamadieu said around EUR420 million will be used to pay debt, while another EUR150 million will go to industrial projects. Aside from its goal to post a positive net result this year, Rhodia eyes an EBITDA margin from continuing operations of over 15% in two to three years. The rights issue was fully underwritten by a banking syndicate led by BNP Paribas and Credit Suisse First Boston. CALYON and HSBC served as co-lead managers. About the Company Headquartered in France, Rhodia S.A. -- http://www.rhodia.com/ -- is a global specialty chemicals company partnering with major players in the automotive, electronics, fibers, pharmaceuticals, agrochemicals, consumer care, tires and paints & coatings markets to offer tailor-made solutions combining original molecules and technologies to respond to customers' needs. It generated net sales of EUR5.3 billion in 2004 and employs 20,000 people worldwide. It is listed on the Paris and New York stock exchanges. Its full-year results swung into the red in 2001 with a net loss of EUR213 million (US$183.5 million) after three profits warning. The company's stock has deteriorated since its flotation in 1998. * * * Restructuring Plan Due to depressed economic environment, continued high petrochemical raw material prices, persistent weak demand and a negative effect from the value of the dollar, Rhodia launched structural action programs designed to improve long-term profitability. In 2003, it unveiled a plan of action to refocus business portfolio, reduce cost and improve financial structure. A key part of this plan is a EUR600 million divestiture program aimed at reducing debt by EUR500 million. Consolidation of operations resulted to the closure of 19 production units worldwide. In December 2003, Rhodia concluded an agreement with 23 creditor banks for the maintenance of a EUR970 million existing lines of credit, and an adjustment of covenants to June 30, 2004; establishment of a EUR758 million new syndicated medium-term credit line; and a capital increase of approximately EUR300 million. Status to date The company's net loss after amortization of goodwill for 2004 was reduced more than 50% from EUR1,351 million to EUR625 million. Its overall net loss for the period came to EUR197 million, compared with a net loss of EUR132 million in the second quarter 2004 (before the taking into account EUR187 million of results from discontinued operations). ============= G E R M A N Y ============= ALTEN- UND PFLEGEHEIM: Bankruptcy Proceedings Start in Friedberg ---------------------------------------------------------------- The District Court of Friedberg opened bankruptcy proceedings against Alten- und Pflegeheim Am Stausee GmbH, on Jan. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 8, 2006, to register their claims with court-appointed provisional administrator Dr. Georg Bernsau. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Friedberg, Saal 20a, Amtsgerichtsgebaude, Homburger Strasse 18, 61169 Friedberg, at 11:00 a.m., on March 22, 2006, at which time the administrator will present his first report on 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: ALTEN- UND PFLEGEHEIM AM STAUSEE GmbH Contact: Manfred Fey, Manager Karl-Birx-Strasse 2, 63697 Hirzenhain Dr. Georg Bernsau, Administrator Zeilweg 42, 60439 Frankfurt Tel: (069) 963761-130 Fax: (069) 963761-145 E-mail: info@bernsau-rieger.de DESIKOM AKTIENGESELLSCHAFT: Court Sets Feb. 21 Claims Bar Date -------------------------------------------------------------- The District Court of Mosbach opened bankruptcy proceedings against Desikom Aktiengesellschaft on Jan. 16. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 21, 2006, to register their claims with court-appointed provisional administrator Fritz Tremmel. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Mosbach, Lohrtalweg 2, 74821 Mosbach, Raum 12, at 2:00 p.m., on March 31, 2006, at which time the administrator will present his first report on 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: DESIKOM AKTIENGESELLSCHAFT Contact: Michael Kappe Am Henschelberg 76, 74821 Mosbach Fritz Tremmel, Administrator Blumenstrasse 17, 69115 Heidelberg Tel: 06221/91180 DUENNBIER MAURER: Claims Filing Period Ends March 1 --------------------------------------------------- The District Court of Frankfurt opened bankruptcy proceedings against Duennbier Maurer- und Baureparaturen GmbH on Jan. 23. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 1, 2006, to register their claims with court-appointed provisional administrator Ulrich Weber. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Frankfurt, Muellroser Chaussee 55, 15236 Frankfurt, Saal 401, at 11:50 a.m., on April 5, 2006, at which time the administrator will present his first report on 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: DUENNBIER MAURER- UND BAUREPARATUREN GmbH Herweghstrasse 24, 15859 Storkow Contact: Ulrich Weber, Administrator Kurfuerstendamm 212, 10719 Berlin FRANK WOBKER: Claims Registration Ends Next Week ------------------------------------------------ The District Court of Osnabrueck opened bankruptcy proceedings against Frank Wobker Bedachungs- GmbH on Jan. 12. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 10, 2006, to register their claims with court-appointed provisional administrator Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Osnabrueck, Raum E 11, Hauptgebaude, Stiftshof 8, 49593 Bersenbrueck, at 10:00 a.m., on Feb. 24, 2006, at which time the administrator will present his first report on 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: FRANK WOBKER BEDACHUNGS- GmbH Contact: Frank Wobker, Manager Weiderand 1, 49565 Bramsche Andreas Sontopski, Administrator Gnoiener Platz 1, 48493 Wettringen Tel: 02557/938422 Fax: 02557/938450 IMO GMBH: Meeting of Creditors Slated for March 2 ------------------------------------------------- The District Court of Bremerhaven opened bankruptcy proceedings against IMO GmbH on Jan. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 13, 2006, to register their claims with court-appointed provisional administrator Walter Spotter. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Bremerhaven, Nordstr. 10, 27580 Bremerhaven, at 2:00 p.m., on March 2, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report at 11:00 a.m., on May 15, 2006, at the same venue. CONTACT: IMO GmbH Ahrend 3, 27580 Bremerhaven Contact: Tadeusz Zduniak, Manager Walter Spotter, Administrator Martinistr. 3, 28195 Bremen Tel: 0421/360800 Fax: 0421/321050 K&L MANAGEMENT: Gera Business Under Bankruptcy Administration ------------------------------------------------------------- The District Court of Gera opened bankruptcy proceedings against K&L Management GmbH on Jan. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 24, 2006, to register their claims with court-appointed provisional administrator Dr. H. Hess. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Gera, Rudolf-Diener-Str. 1, Zimmer 317, at 1:30 p.m., on March 28, 2006, at which time the administrator will present his first report on 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: K&L MANAGEMENT GmbH Contact: Danila Kaule, Manager Julius-Sturm-Platz 9, 07586 Bad Kostritz Dr. H. Hess, Administrator Barbarossahof 4-5, 99092 Erfurt KLEINTRANSPORTE/KURIERDIENST: Court Appoints Administrator ---------------------------------------------------------- The District Court of Ansbach opened bankruptcy proceedings against Kleintransporte/Kurierdienst Kolb GmbH on Jan. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 10, 2006, to register their claims with court-appointed provisional administrator Dr. Werner Pohlmann. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Ansbach, Sitzungssaal 1, EG, Promenade 8, 91522 Ansbach, at 10:45 a.m., on March 3, 2006, at which time the administrator will present his first report on 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: KLEINTRANSPORTE/KURIERDIENST KOLB GmbH Hauptstr. 18 in 91738 Pfofeld Dr. Werner Pohlmann, Administrator Aussere Sulzbacher Str. 118, 90491 Nuernberg Tel: 0911/598900 Fax: 0911/5989011 LOUIS KRESS: Chemnitz Court Begins Bankruptcy Process ----------------------------------------------------- The District Court of Chemnitz opened bankruptcy proceedings against Louis Kress Nachf. GmbH on Jan. 12. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 22, 2006, to register their claims with court-appointed provisional administrator Wolfgang Hauser. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Chemnitz, Saal 28, im Gerichtsgebaude, Fuerstenstrasse 21, Chemnitz, at 10:00 a.m., on April 5, 2006, at which time the administrator will present his first report on 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: LOUIS KRESS NACHF. GmbH Contact: Yvonn Hegner, Manager Greizer Strasse 27, 07985 Elsterberg Wolfgang Hauser, Administrator Poetenweg 36, 08056 Zwickau NORBERT SCHAFER: Meeting of Creditors Slated for April 21 --------------------------------------------------------- The District Court of Krefeld opened bankruptcy proceedings against Norbert Schafer GmbH on Jan. 10. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 15, 2006, to register their claims with court-appointed provisional administrator Eberhard Stock. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Krefeld, Nordwall 131, 47798 Krefeld, 1. Etage, Sitzungssaal H 131, at 10:00 a.m., on April 21, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report at 9:01 a.m., on June 9, 2006, at the same venue. CONTACT: NORBERT SCHAFER GmbH Umstr. 62, 47929 Grefrath Contact: Norbert Schafer, Manager Eberhard Stock, Administrator Wilhelmshofallee 75, 47800 Krefeld OET OBJEKT: Bielefeld Court Opens Bankruptcy Proceedings -------------------------------------------------------- The District Court of Bielefeld opened bankruptcy proceedings against OET Objekt-Einrichtungs-Team GmbH on Jan. 23. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 14, 2006, to register their claims with court-appointed provisional administrator Stefan Meyer. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld, 4. Ebene, Saal 4065, at 11:30 a.m., on April 4, 2006, at which time the administrator will present his first report on 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: OET OBJEKT-EINRICHTUNGS-TEAM GmbH Zeisstr. 6, 32312 Luebbecke Contact: Peter Kleffmann, Manager Stefan Meyer, Administrator Ostertorstr. 7, 32312 Luebbecke ========= I T A L Y ========= INTERCONFIDI NORDEST: Fitch Affirms Long-Term BB+ Rating -------------------------------------------------------- Fitch Ratings has affirmed Italy-based Interconfidi Nordest's ratings at Long-term 'BB+', Short-term 'B' and Insurer Financial Strength 'BBB-'. The Outlook remains Stable. The ratings take into account the confidi's small size, geographic concentration and improving, albeit still weak, structural profitability. The ratings also reflect progress made by management to provide ICNE with an appropriate organizational structure, suitable risk management procedures and adequate capital ahead of its intended conversion to a bank. ICNE's credit risk management is characterized by its extensive knowledge of the local economy. The guarantee portfolio is reasonably well diversified by sector, but shows some concentration by counterparty with the 20 largest exposures representing 14% of the total guarantee portfolio or 170% of equity. There is geographic concentration in the region of the Veneto, stemming from the confidi's local focus. However, during 2005 guarantees issued outside the region equaled 32% of the total and ICNE plans to expand further outside its home territory. At end-September 2005, gross problem guarantees represented a manageable 1.6% of total guarantees, which was an improvement from 2% at end-2004. ICNE has counter-guarantees agreements with the European Investment Fund and the Italian Central Guarantee Fund that partly protect it from credit risk. Fitch regards ICNE's capitalization as adequate, although capital is small in size. In 2005 it increased equity by raising EUR1.5 million of fresh capital and converted certain regional funds into reserves available to cover all risks. At end-November 2005, ICNE estimated its Tier 1 ratio to be about 10.6% using Banca d'Italia rules. Revenues and costs are more balanced than in the past and ICNE should now be positioned to produce reasonable operating results, as revenue generation improves. Interconfidi Nordest is a cooperative company providing guarantees to members seeking to obtain bank finance. ICNE expects to become a cooperative guarantee bank (banca di garanzia) in 2006. It has already deposited its authorization request with BdI. On conversion to a bank, ICNE would enjoy the status of banca popolare, although its activity would be limited to issuing guarantees and it would not collect retail deposits. VOLARE GROUP: Industry Ministry Suspends Sale to Alitalia --------------------------------------------------------- The Industry Ministry has suspended the sale of troubled no- frills airline Volare Group S.p.A. to flag carrier Alitalia S.p.A., AFX News says. The suspension followed a ruling by a Roman court banning Alitalia from taking part in an auction for Volare. The said Alitalia's participation breaches state aid and anti-trust rules. The Industry Ministry is supervising Volare's administration, AFX relates. Alitalia offered EUR38 million to acquire Volare, EUR9 million higher than closest rival AirOne. About Alitalia 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. About Volare Headquartered in Via Pirelli 20, 20124 Milan, Italy, Volare Group S.p.A. -- Web site: http://www.volare-group.it/-- is an operative holding company which controls Volare Airlines SpA and Air Europe since 2001. The company declared insolvency on Nov. 22, 2004, citing huge debt and heavy losses. The group then filed for extraordinary administration, which allowed it to be protected from creditors while resuming daily operations. Volare emerged from administration in spring, after beating its EUR7 million revenue forecast by around EUR3.8 million. Volare needs fresh capital to expand its fleet. VOLARE SPA: Roman Court Shoots Down Alitalia's Takeover Bid ----------------------------------------------------------- A Roman court has blocked Alitalia S.p.A.'s bid to acquire ailing low-cost carrier Volare Group, AFX News reports. The ruling, issued on Jan. 27, bans Alitalia from taking part in the auction to acquire Volare. The decision stemmed from a complaint lodged by losing bidder AirOne challenging Alitalia's success in the recently concluded Volare auction. TCR Europe reported on Jan. 12, 2005, that Alitalia offered EUR38 million, EUR9 million higher than closest rival AirOne. AirOne, however, claimed Alitalia is financially incapable of acquiring Volare and cannot meet bidding requirements. AirOne had failed to get a favorable ruling from the Civil Law Court of Busto Arsizio. There are speculations that Alitalia's main reason for bidding is to prevent rival airlines from taking over Volare's airport slots. Alitalia said Volare would fit with its business plan and support low-cost operations from Milan. About Alitalia 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. About Volare Headquartered in Via Pirelli 20, 20124 Milan, Italy, Volare Group S.p.A. -- Web site: http://www.volare-group.it/-- is an operative holding company which controls Volare Airlines SpA and Air Europe since 2001. The company declared insolvency on Nov. 22, 2004, citing huge debt and heavy losses. The group then filed for extraordinary administration, which allowed it to be protected from creditors while resuming daily operations. Volare emerged from administration in spring, after beating its EUR7 million revenue forecast by around EUR3.8 million. Volare needs fresh capital to expand its fleet. =================== K A Z A K H S T A N =================== ALLIANCE IN ALMATY: Court Rules Insolvency ------------------------------------------ Branch of LLC Alliance In Almaty has declared insolvency. Proofs of claim will be accepted at Almaty, Timiryazeva Str. 42, office 12 or at Almaty, Jandosova Str. 24, office 18. The company can be contacted at 8(3272) 74-73-72, 74-65-85 or 8 (3232) 47-09-11. FORT & C: Creditors Have Until Feb. 21 to File Claims ----------------------------------------------------- LLC Fort & C has declared insolvency. Proofs of claim will be accepted at Mangistau region, Aktau, micro district 28, 15-5 on or before Feb. 21, 2006. The company can be contacted at 8 (32922) 41-01-30. GIFT PROMOTION: Declared Insolvent ---------------------------------- LLC Gift Promotion has declared insolvency. Proofs of claim will be accepted at Almaty, Baizakov Str. 223 and Almaty, Abylai Hana Ave. 60 on or before Feb. 21, 2006. CONTACT: GIFT PROMOTION Almaty, Baizakov Str. 223 INTRAS: Creditors' Claims Due This Month ---------------------------------------- LLC Intras has declared insolvency. Proofs of claim will be accepted at West Kazakhstan region, Uralsk, Oktyabrskaya Str. 78, 5th floor on or before Feb. 21, 2006. The company can be contacted at 8 (3112) 24-40-40. KONSUL ITM: Court Sets Feb. 21 Claims Bar Date ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai region declared LLC Konsul ITM bankrupt on Nov. 28, 2005. Proofs of claim will be accepted at Kostanai, Gogol Str. 177a on or before Feb. 21, 2006. CONTACT: THE SPECIALIZED INTER-REGIONAL ECONOMIC COURT OF KOSTANAI REGION Kostanai, Gogol Str. 177a ===================== N E T H E R L A N D S ===================== LAURUS N.V.: To Dispose of Edah and Konmar Businesses ----------------------------------------------------- Laurus N.V. plans to sell its Edah and Konmar Superstores operations. Although sales of the Edah and Konmar stores have improved, profitability is not expected to reach a satisfactory level in the near future, due to the unrelenting pressure on margins. Laurus therefore intends to focus on the Super de Boer format, concentrating its efforts on creating the organization needed to make Super de Boer a powerful and effective force in the market. Low Sales Prompts Store Trims The fundamental problem facing the Laurus formats is their relatively low sales per square meter. The primary objective of the repositioning project on which the company has been engaged has therefore been to increase the sales level per square meter. In Edah's case, this meant a phased conversion to the Edah Lekker & Laag format, starting in 2004. By yearend 2005, a total of 77 of the 276 Edah stores have been converted. Pilots with a new format for the Konmar Superstores, under the Lekker & Laag Superstores name, were conducted in 2005. The Lekker & Laag Superstores pilot has now been evaluated and discussed at length with the Supervisory Board. The results of the Edah Lekker & Laag rollout have also been evaluated. In both cases, the remodeled stores have reported significant improvement in sales. The first three Lekker & Laag Superstores have boosted their sales by around 45%, attracting 33% more customers and raising average expenditure per customer by some 10%. The Edah Lekker & Laag stores have recorded similar improvements, albeit at a lower level. These positive results do not, however, provide sufficient compensation for the sustained pressure on margins exerted by the economic climate and the supermarket price war. The unrelenting pressure on Laurus' sales and results has further restricted the company's financial scope, making it impossible to continue investing in the renewal of the Edah and Konmar formats. Given these circumstances and the fact that the regular Edah stores and Konmar Superstores are not sufficiently profitable, Laurus proposes to sell the Edah/Edah Lekker & Laag stores and the Konmar/Lekker & Laag Superstores. Edah employed 2,756 FTEs (7,740 employees) as supermarket staff and 95 FTEs in direct overhead jobs as at yearend 2005. Konmar/Lekker & Laag Superstores employed 1,651 FTEs (4,237 employees) as supermarket staff and 50 FTEs in direct overhead jobs as at yearend 2005. The sale of these operations is expected to result in around 290 FTE redundancies in the shared services and offices. Laurus will be consulting the trade unions on the application of the Laurus Total Social Plan. The supermarket employees affected by the sale will be transferred to the new owner in accordance with the legal rules. It is Laurus' intention that the affected staff in the format's direct overhead also to be transferred to the future new owner. The Laurus works council has been asked for its recommendation on these proposals, which will also be submitted to the General Meeting of Shareholders once these proposals have become substantive. The consequences for the logistics personnel will depend on whether and to what extent the logistics operation can be included in the proposed sale. A separate plan will be submitted to the works council for recommendation as soon as the outcome materializes. Super de Boer By focusing on Super de Boer, the most promising of its formats, Laurus will be able to concentrate its efforts on creating the organization needed to make this format a powerful and effective force in the market. Capital expenditures of EUR36 million in Super de Boer is planned in 2006. Laurus intends this year to complete "Operation Refresh," which, as its name suggests, is designed to rejuvenate the Super de Boer stores, and has already been working for several months on the next-generation Refresh program. Super de Boer's sales share of the freshproduce market is increasing and its private label is enjoying rapid growth, in both quantity and quality. Variety and novelty are the key words in this respect. Good progress is being made with the Superfit project to raise the efficiency of the business processes, not just at store level but throughout the chain. Super de Boer is also planning to introduce a new computer-assisted ordering process. It was announced on Jan. 13, 2006 that four Super de Boer stores had been named as "Best Supermarket" in their provinces. Credit Waivers Following Laurus' discussions with the banks in the second half of 2005 and the early weeks of 2006 on the covenants for remaining term of the facilities, which expire on Jan. 9, 2008, the banks have agreed to waive the covenants agreed in 2002 until Jan. 30, 2007, on condition that Laurus reduces its net debt to EUR200 million (yearend 2005: approximately EUR370 million) by Jan. 30, 2007. This reduction in net debt is to be achieved through the restructuring/disposal of activities in accordance with a plan of action, which is still to be finalized. Instead of the original covenants, the Super de Boer format's EBITDA must be positive during 2006. Laurus has access to a credit facility of EUR300 million for its operations in the Netherlands, which expires on Jan. 30, 2007. Laurus also has an overdraft facility of EUR80 million for its Dutch operations, which expires on Jan. 9, 2008. The back-up facility of EUR230 million for its operations in Spain will also be available until Jan. 9, 2008. These facilities will be reduced by the net proceeds from the sale of activities. Depending on the progress achieved with the restructuring/disposal of its activities, it is the intention to replace the present facilities with a new long-term credit facility, which is more closely tailored to the needs of the organization as it will then be structured, early 2007. Laurus is convinced that the measures proposed are in the interests of all stakeholders and, among others, will avoid further dilution of shareholders' interests. About the Company Based in The Netherlands, Laurus N.V. -- http://www.laurus.nl/ -- is one of the country's main food retail organizations, employing about 25,000 people through more than 700 supermarkets. 2004 Loss Laurus suffered a net loss of EUR128 million in 2004, a sharp reversal compared with 2003, when the positive net result of EUR9 million marked an -- albeit modest -- return to profitability for the first time in several years. In fighting the price war, which broke out in October 2003 and continued unabated in 2004, Laurus implemented substantial price cuts within all three retail formats, which, combined with the reduced sales volume, had a major negative impact on the result. LAURUS N.V.: Delegates Management Roles on Member's Exit -------------------------------------------------------- Jean-Brice Hernu is leaving Laurus N.V.'s Group Management Board for personal reasons. His duties, which included responsibility for shared services, were allocated to the other members of the Group Management Board starting Feb. 1, 2006. Harry Bruijniks now serves as chairman of the Group Management Board and is also responsible for Edah/Edah Lekker & Laag and the Laurus Central Purchasing & Category Management department. Kenaad B. Tewarie is Chief Financial Officer and is also responsible for the Property and Construction/Store Layout & Management departments. Willem-Jan Vreezen is responsible for Konmar/Lekker & Laag Superstores, Logistics, Supply Chain and ICT departments, while Monny Querido is responsible for Super de Boer, Marketing Research and Quality & Environment departments. About the Company Based in The Netherlands, Laurus N.V. -- http://www.laurus.nl/ -- is one of the country's main food retail organizations, employing about 25,000 people through more than 700 supermarkets. 2004 Loss Laurus suffered a net loss of EUR128 million in 2004, a sharp reversal compared with 2003, when the positive net result of EUR9 million marked an -- albeit modest -- return to profitability for the first time in several years. In fighting the price war, which broke out in October 2003 and continued unabated in 2004, Laurus implemented substantial price cuts within all three retail formats, which, combined with the reduced sales volume, had a major negative impact on the result. ROMPETROL GROUP: Fitch Affirms Senior Unsecured Rating at B- ------------------------------------------------------------ Fitch Ratings affirmed Netherlands-based The Rompetrol Group N.V.'s Senior Unsecured rating at 'B-' and removed it from Rating Watch Evolving (RWE). A Stable Outlook is assigned. The rating was placed on RWE on Dec. 9, 2005, following the company's announcement of its acquisition of Dyneff, the largest independent petroleum products distributor in France. The affirmation reflects Fitch's view that Dyneff acquisition, though primarily debt-funded, will not have a material negative impact on TRG's financial profile. This is because Dyneff is currently an unleveraged company (with net debt/EBITDA of well below 1.0x) and remains fairly small in terms of EBITDA generation compared to the TRG group. Fitch considers that the Dyneff acquisition may enhance TRG's business profile by providing some geographical diversity to the company's operations, which until recently have been mostly based in Romania, through a controlling stake in Rompetrol Rafinare, the second-largest oil refiner in the country. Exposure to France, a country with a more stable economic, political and legal environment than Romania may be seen positively from creditors' viewpoint. Nevertheless, following the acquisition TRG's EBITDA generation will continue to be biased towards Romania, which is expected to generate at least 80% of group EBITDA in future years. While this acquisition increases TRG's integration into fuel retail (Dyneff sells around 3 metric tons per year of refining products in France and Spain compared to TRG's refining effective capacity in Romania of around 4 metric tons per year), there will be no physical integration as products refined in Romania are not likely to be transported to France given high transportation costs. TRG is also expected to be able to capitalize on Dyneff's rights of use to strategic pipelines transporting crude oil to Western Europe, and its storage facilities. Fitch acknowledges profit improvement potential at French retail operations on the back of planned improvements in asset utilization and cost cutting. Nevertheless, the agency will closely monitor TRG's results in France, which is seen as a highly competitive market dominated by supermarkets. The rating for TRG continues to reflect the company's aggressive financial policy, high levels of debt (including convertible bond), cash flow volatility and ongoing investigation by Romania's Prosecutor General into the privatisation of TRG's main refining asset in 2001. TRG is expected to report record cash flows and EBITDA for 2005, capitalizing on extremely favorable market conditions for refiners. In the first nine months of 2005, TRG's main operating subsidiary, Rompetrol Rafinare, reported unaudited EBITDA of US$151 million, compared with US$47 million in the corresponding period of 2004. ROYAL SHELL: Share Repurchase Scheme Progressing ------------------------------------------------ Royal Dutch Shell PLC purchased 575,000 'A' Shares for cancellation at EUR28.23 per share on Jan. 31. It further purchased 100,000 'A' Shares for cancellation at 1,926.93 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell PLC will be 3,926,807,974. As of that date, 2,759,360,000 'B' Shares of Royal Dutch Shell PLC were in issue. * * * In 2005, Shell returned US$5 billion to shareholders via market purchases of shares. This target included shares purchased for cancellation by The Shell Transport and Trading Company PLC and Royal Dutch Petroleum Company prior to the Group unification of US$0.5 billion. The Company expected to continue its buyback program in 2006 and planned to provide an update on the 2006 buyback program with the full year results announcement on Feb. 2, 2006. Shell's buyback scheme was aimed at reviving shareholders' and investors' confidence. The buyback program followed last year's damaging reserves overestimation scandal last year. About the Company Headquartered in The Hague and incorporated in England and Wales, Royal Dutch Shell PLC -- http://www.shell.com/-- has 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 company is listed on the London, Amsterdam, and New York stock exchanges. The Trouble Shell admitted overstating proved reserves by almost 6 billion barrels between January 2004 and February last 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. =========== R U S S I A =========== AGRO-PROM-ENERGO: Declared Insolvent ------------------------------------ The Arbitration Court of Nizhniy Novgorod region commenced bankruptcy proceedings against Agro-Prom-Energo after finding the close joint stock company insolvent. The case is docketed as A43-4266/2905,33-163. Ms. Y. Gerasimova has been appointed insolvency manager. Creditors may submit their proofs of claim to 603155, Russia, Nizhniy Novgorod region. CONTACT: AGRO-PROM-ENERGO Russia, Nizhniy Novgorod region, Vetluga, Ter.STKh Y. GERASIMOVA Insolvency Manager 603155, Russia, Nizhniy Novgorod region BUILDING COMPLEX: Bankruptcy Supervision Begins ----------------------------------------------- The Arbitration Court of Chelyabinsk region has commenced bankruptcy supervision on limited liability company Building Complex #7. The case is docketed as A76-30005/05-48-157. Ms. T. Geft has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to: (a) BUILDING COMPLEX #7 454071, Russia, Chelyabinsk region, Geroyev Tankograda Str. 53 (b) T. GEFT Temporary Insolvency Manager 454091, Russia, Chelyabinsk region, Post User Box 13263 COMFORT PLUS: Omsk Court Opens Bankruptcy Proceedings ----------------------------------------------------- The Arbitration Court of Omsk region commenced bankruptcy proceedings against Comfort Plus after finding the close joint stock company insolvent. The case is docketed as K/E-134/04. Mr. A. Kuzmin has been appointed insolvency manager. Creditors have until Feb. 17, 2006 to submit their proofs of claim to 644042, Russia, Omsk region, K. Marksa Pr. 34A - 508. CONTACT: COMFORT PLUS Russia, Novosibirsk, Kuprina Str. 4 A. KUZMIN Insolvency Manager 644042, Russia, Omsk region, K. Marksa Pr. 34A - 508 DOR-REM-STROY: Bankruptcy Hearing Set April 11 ---------------------------------------------- The Arbitration Court of Nizhniy Novgorod region has commenced bankruptcy supervision on open joint stock company Dor-Rem- Stroy. The case is docketed as A43-38616/2005,24-549. Ms. N. Sotneva has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 603018, Russia, Nizhniy Novgorod region, Post User Box 15. A hearing will take place on April 11, 2006, 11:30 a.m. CONTACT: DOR-REM-STROY Russia, Nizhniy Novgorod region, Shakhunya, Yranskoye Shosse, 7 N. SOTNEVA Temporary Insolvency Manager 603018, Russia, Nizhniy Novgorod region, Post User Box 15 METROMEDIA INTERNATIONAL: Inks In Re Fuqua Settlement Pact ---------------------------------------------------------- Metromedia International Group, Inc., disclosed that terms of a settlement have been agreed among parties to the derivative legal action In Re Fuqua Industries which would, upon review and approval by the Court of Chancery of the State of Delaware, bring this long-standing legal action to a final close. In the event that the Court approves the proposed settlement, the Company reported that it expects to receive in excess of $4 million from the $7 million settlement amount agreed on by the defendants in the action and will no longer bear obligation to fund the legal expenses of these defendants. The Company sent to its common shareholders of record as of Jan. 5, 2006, a Notice of Pendency of Derivative Action, Proposed Settlement of Derivative Action, Settlement Hearing, and Right to Appeal in the matter of In Re Fuqua Industries, Inc. Shareholders Litigation. The Notice informs the Shareholders that a settlement hearing in the In Re Fuqua Industries action is scheduled for March 6, 2006, in the Court of Chancery of the State of Delaware and of Shareholder's rights to participate in the Settlement Hearing. In Re Fuqua Suit In Re Fuqua Industries was initiated by a stockholder on behalf of the Company as a derivative action in the early 1990's when the Company operated under the name Fuqua Industries, Inc. Since the action was brought on behalf of the Company, any funds received in settlement of the action, net of plaintiffs' counsel fees and expenses, will go to the Company and not to individual stockholders. Pursuant to the terms and conditions of the proposed settlement, the defendants would pay an aggregate amount of $7 million to be paid by the defendants. Each of the individual defendants has deposited his share of this aggregate amount into an escrow account maintained for the benefit of the Company. The Company has agreed that, should the Settlement be approved at the Settlement Hearing, it will not oppose plaintiffs' counsel application for an award of attorneys' fees not to exceed $2.1 million and a reimbursement of expenses not to exceed $0.325 million At the Settlement Hearing, the Court will: (a) Determine whether a Stipulation of Settlement, dated as of December 31, 2005, and the terms and conditions of the settlement proposed in the Stipulation, are fair, reasonable and adequate; (b) Determine whether the interests of the stockholders of the Company have been adequately represented at all times by counsel to plaintiffs in connection with the prosecution and settlement of the action; (c) Determine whether a final order and judgment should be entered by the Court dismissing the action with prejudice and on the merits as to all parties; and (d) Determine, in the event that the Court approves the Stipulation and the Settlement and enters its final judgment, whether it should award attorneys' fees and expenses to plaintiffs' counsel. "The proposed Settlement of this long-standing litigation matter is quite favorable to the Company," Ernie Pyle, the Company's Chief Financial Officer, said. "In addition to receiving cash proceeds from the settlement, which can reasonably be expected to exceed $4 million, the Company will no longer be responsible for reimbursement of the defendants' legal expenses. Although, the Company is not a defendant in this derivative case, it has been obligated under its organizational documents and Delaware Law to fund the defendants' legal expenses for the past several years, an amount estimated around $5.0 million. This funding obligation arose when the Company's Directors and Officers liability insurance carrier for the litigation matter, Reliance Insurance Company, encountered financial difficulties. In 2001, Reliance became subject to an order of rehabilitation with the State of Pennsylvania. Should the Court not approve the Stipulation and Settlement, the Company anticipates that the Court will schedule a trial in this action and thus the Company's obligation to fund the defendants' legal costs would continue until the action is ultimately resolved, including any possible appeals," Mr. Pyle added. About the Company Through its wholly owned subsidiaries, Metromedia International Group owns interests in communications businesses in the countries of Russia and Georgia. Since the first quarter of 2003, the Company has focused its principal attentions on the continued development of its core telephony businesses, and has substantially completed a program of gradual divestiture of its non-core cable television and radio broadcast businesses. The Company's core telephony businesses include PeterStar, the leading competitive local exchange carrier in St. Petersburg, Russia, and Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia. * * * Moody's Investors Service has placed Metromedia's subordinated debt rating at B3 and junior subordinated debt rating at B2. PETROVSK-AGRO-MONTAGE: Declared Insolvent ----------------------------------------- The Arbitration Court of Saratov region commenced bankruptcy proceedings against Petrovsk-Agro-Montage after finding the open joint stock company insolvent. The case is docketed as A57- 646/05-32. Mr. S. Shulgin has been appointed insolvency manager. Creditors have until Feb. 17, 2006 to submit their proofs of claim to 410028, Russia, Saratov region, Beloglinskaya Str. 8a. CONTACT: PETROVSK-AGRO-MONTAGE 412520, Russia, Saratov region, Petrovsk, Shamaeva Str. 3a S. SHULGIN Insolvency Manager 410028, Russia, Saratov region, Beloglinskaya Str. 8a ROMODANOV-AGRO-SNAB: Claims Filing Period Ends Feb. 17 ------------------------------------------------------ The Arbitration Court of Mordoviya republic commenced bankruptcy proceedings against Romodanov-Agro-Snab after finding the open joint stock company insolvent. The case is docketed as A39- 1277/05-107/6. Mr. S. Kolekin has been appointed insolvency manager. Creditors have until Feb. 17, 2006, to submit their proofs of claim. CONTACT: ROMODANOV-AGRO-SNAB Russia, Mordoviya republic, Romodanovo SOV-TRANS-AUTO-ROSTOV: Insolvency Manager Takes Over Firm --------------------------------------------------------- The Arbitration Court of Rostov region has commenced bankruptcy supervision on open joint stock company Sov-Trans-Auto-Rostov. The case is docketed as A53-26560/2005-S2-7. Ms. O. Ryabokon has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to: (a) SOV-TRANS-AUTO-ROSTOV 346720, Russia, Rostov region, Aksay, Promyshlennaya Str. 2 (b) O. RYABOKON Temporary Insolvency Manager 344720, Russia, Rostov region, Aksay, Promyshlennaya Str. 2 (c) ARBITRATION COURT OF ROSTOV REGION Russia, Rostov-na-Donu, Stanislavskogo Str. 8a A hearing will take place on May 15, 2006, 2:00 p.m. at Russia, Rostov-na-Donu, Stanislavskogo Str. 8a. STAVROPOL-TRANS-METAL: Stavropol Court Names Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Stavropol region commenced bankruptcy supervision on close joint stock company Stavropol-Trans-Metal. The case is docketed as A63-266/05-S5. Mr. Y. Karpenko has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to Russia, Stavropol region, Lermontova Str. 343, Office 4. CONTACT: STAVROPOL-TRANS-METAL Russia, Stavropol region, Dovatortsev Str. 52 Y. KARPENKO Temporary Insolvency Manager Russia, Stavropol region, Lermontova Str. 343, Office 4 TATSINSK-SEL-KHOZ-KHIMIYA: Bankruptcy Hearing Set Feb. 21 --------------------------------------------------------- The Arbitration Court of Rostov region has commenced bankruptcy supervision on open joint stock company Tatsinsk-Sel-Khoz- Khimiya (TIN 6134000388). The case is docketed as A53- 27014/2005-S2-30. Mr. N. Lemaev has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 347060, Russia, Rostov region, Tatsinskaya St., Vostochnyj Per. 2. A hearing will take place on Feb. 21, 2006, 11:30 a.m. CONTACT: TATSINSK-SEL-KHOZ-KHIMIYA 347060, Russia, Rostov region, Tatsinskaya St., Vostochnyj Per. 2 N. LEMAEV Temporary Insolvency Manager 347060, Russia, Rostov region, Tatsinskaya St., Vostochnyj Per. 2 URYUPINSKIY: Undergoes Bankruptcy Supervision in Volgograd ---------------------------------------------------------- The Arbitration Court of Volgograd region has commenced bankruptcy supervision on open joint stock company Uryupinskiy. The case is docketed as A12-30632/05-s50. Mr. P. Bashmakov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 400005, Russia, Volgograd region, Post User Box 251. CONTACT: URYUPINSKIY Russia, Volgograd region, Uryupinsk, Vostochnaya gora P. BASHMAKOV Temporary Insolvency Manager 400005, Russia, Volgograd region, Post User Box 251 ========= S P A I N ========= FONDO DE TITULIZACION: Fitch Rates Class E Notes at BB ------------------------------------------------------ Fitch Ratings affirmed Fondo De Titulizacion De Activos BBVA-1's notes following a satisfactory performance review of the transaction. The notes involved are: (a) EUR928,400,400 Class A at 'AAA'; (b) EUR25,600,000 Class B at 'AA+'; (c) EUR108,800,000 Class C at 'A'; (d) EUR22,000,000 Class D at 'BBB'; and (e) EUR28,000.000 Class E at 'BB'. There have been no losses in the loan portfolio, and credit deterioration has been mitigated by the amortization of weaker credits. Over the past year, there has been a moderate deterioration in the credit quality of the loan portfolio from 'BBB'/'BBB-' to 'BBB-'/'BB+'. It should be noted that the creditworthiness of the two largest obligors in the portfolio has declined marginally over the last year while exposure to these entities has increased. A Spanish electricity company and its subsidiaries (rated 'A+') make up 60.30% of the portfolio and a subsidiary of a Spanish telecommunications company represents 13.5%. But given that Class A credit enhancement is 75.63% and Class B 66.62%, Fitch is comfortable with these concentrations. Fitch also derives some comfort from the rapid amortization of the pool scheduled to occur in 2006 and from a clean-up call, which it expects to be exercised at end-2006 once the outstanding balance of the portfolio reaches 20% of the original value. =========== T U R K E Y =========== ERDEMIR DEMIR: S&P Affirms Long-Term BB- Rating ----------------------------------------------- Standard & Poor's Ratings Services removed its ratings on Turkey-based steelmaker Eregli Demir ve Celik Fabrikalari T.A.S. from CreditWatch where they had been placed with negative implications on Oct. 5, 2005. At the same time, Standard & Poor's affirmed its 'BB-' long-term ratings on Erdemir. The outlook is negative. The CreditWatch resolution follows the completion of the privatization of Erdemir. The Turkish government has agreed to sell its 49% stake in Erdemir to a special purpose vehicle (SPV), ATAER, which is expected to be 59% owned by Turkish conglomerate Ordu Yardimlasma Kurumu (OYAK; BB-/Stable/B) and 41% by Luxembourg-based steelmaker Arcelor S.A. (BBB/Watch Dev; A-2/Watch Neg). "The negative outlook reflects our concerns that Erdemir will endure negative free cash flows for the next few years," said Standard & Poor's credit analyst Per Karlsson. This is expected as a result of Erdemir's heavy capital expenditure plans, combined with expected need to pay higher dividends to its new owners to service the SPV's heavy debt burden. This could make Erdemir's rating more sensitive to a downturn in the price of steel. Increased sensitivity to steel prices could result in a downgrade in the next 18 months. Funds from operations to total debt would need to remain above 30% over the cycle for the rating to be maintained. If successful, the potential acquisition of Arcelor by Mittal Steel Co. N.V. (BBB+/Watch Neg/--) is not expected to have any negative impact on Erdemir's ratings. The outlook could be changed to stable if Erdemir is able to generate positive free operating cash flows on a sustainable basis. TURKIYE PETROL: Fitch Affirms Foreign Currency Rating at BB- ------------------------------------------------------------ Fitch Ratings affirmed Turkiye Petrol Rafinerileri A.S.'s Senior Unsecured local currency 'BBB-' rating and removed it from Rating Watch Evolving (RWE). A Stable Outlook is assigned for the local currency rating. This action reflects the signing of the share transfer agreement for the 51% block sale of Tupras from the Turkish government, after Koc Holding and Enerji Yatirimlari A.S (EA) obtained the required US$4.3 billion financial package to finalize the transaction. At the same time, Tupras' other ratings are affirmed at Senior Unsecured foreign currency 'BB-' with Positive Outlook and the National 'AA+(tur)' with Stable Outlook. EA is a holding company set up by a consortium led by Koc Holding (75%) for the Tupras transaction. Other parties in the consortium are Aygaz A.S. with 20%, OPET Petroleum A.S. with 3% and Shell Company of Turkey and Shell Overseas Investments (part of Royal Dutch Shell, 'AA+'/'F1+') with 2%. Koc Holding has secured a US$2.5 billion loan that consists of a three-year US$1 billion loan, a seven-year US$950 million loan and a 732-day US$550 million loan with a 366-day option. EA also obtained a 10-year US$1.8 billion loan pledging 51% of Tupras shares in the process. Fitch understands that the dividend flow from Tupras to EA will be the sole revenue of the holding company to pay off the existing US$1.8 billion debt. Initial indications are that, based on current projections, the dividend flow from Tupras to EA should be sufficient to service most of the principal and interest payments of the 10 year US$1.8 billion loan. Legislation in Turkey limits dividends to the level of the net profit (after compulsory equity reserve creation) for any given period and provides a degree of comfort regarding the prevention of asset stripping via special dividends. However, Fitch is concerned that there remains the possibility that EA's US$1.8 billion debt could be placed under Tupras in the longer term, although management have at present ruled this out. Such a move would lift Tupras' leverage to undesirable levels and lead to a downgrade. The RWE removal also follows Fitch's clarification that EA will be committed to Tupras' existing strategy on targeted capital expenditure, leverage and dividends and business plan. Fitch generally views the full privatization of Tupras (the other 49% of shares were gradually floated during the last four years) as a credit positive for the company, which is expected to increase the flexibility of its financial management, human resources, sales and marketing, logistics and other operational functions. Furthermore, possible business synergies with Shell and Opet - second and fourth largest players on the Turkish fuel distribution market respectively - will consolidate Tupras' financial profile, provided that its balance sheet remains strong and is not encumbered by the transaction in the future. Tupras' foreign currency rating remains constrained by the Sovereign Ceiling of 'BB-', while the National Senior Unsecured rating reflects Tupras' relative position within the country and is comparable only with National ratings of other Turkish companies as assigned by Fitch. Tupras, which is the largest industrial corporate in Turkey, owns and operates four oil refineries in the country, with a combined annual refining capacity of 27.6 million tonnes. Tupras' gross debt is around US$340 million and EBITDA for 2005 is expected to be at US$820 million. The cash balance stood at US$524 million as of Q305. The local currency rating was placed on RWE on 13 September 2005. ============= U K R A I N E ============= AGROCENTRSOYUZ: Court Names Andrij Vershinin as Liquidator ---------------------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against LLC Agrocentrsoyuz (code EDRPOU 32109839) after finding the limited liability company insolvent. Mr. Andrij Vershinin has been appointed liquidator/insolvency manager. CONTACT: AGROCENTRSOYUZ 01010, Ukraine, Kyiv region, Sichnevogo Povstanya Str. 11-a/54 Mr. Andrij Vershinin Liquidator/Insolvency Manager 03110, Ukraine, Kyiv region, a/b 151 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B KROSS: Sumi Court Rules on Insolvency ------------------------------------- The Economic Court of Sumi region commenced bankruptcy proceedings against Kross (code EDRPOU 31982137) on Nov. 22, 2005 after finding the limited liability company insolvent. The case is docketed as 6/113-05. Mr. Sergij Volovik has been appointed liquidator/insolvency manager. CONTACT: KROSS Ukraine, Sumi region, Bilopillya district, Zhovtneve, Frunze Str. 15 Mr. Sergij Volovik Liquidator/Insolvency Manager 40030, Ukraine, Sumi region, Proletarska Str. 69, 2-nd floor ECONOMIC COURT OF SUMI REGION 40030, Ukraine, Sumi region, Shevchenko Avenue 18/1 LADIZHINSKIJ: Preparing for Liquidation --------------------------------------- The Economic Court of Vinnitsya region commenced bankruptcy proceedings against Ladizhinskij' (code EDRPOU 05413882) on Nov. 29, 2005 after finding the limited liability company insolvent. The case is docketed as 10/68-05. Mr. Sergij Gorbach has been appointed liquidator/insolvency manager. CONTACT: LADIZHINSKIJ Ukraine, Vinnitsya region, Trostyanets district, Ladizhin, Pribrezhna Str. 22/1 Mr. Sergij Gorbach, Liquidator/Insolvency Manager 08720, Ukraine, Kyiv region, Ukraina, a/b 45 Phone/Fax: (044) 249-99-24 ECONOMIC COURT OF VINNITSYA REGION 21036, Ukraine, Vinnitsya region, Hmelnitske Shose 7 MALAHIT: Insolvency Manager Illya Maksimov Comes In --------------------------------------------------- The Economic Court of Donetsk region commenced bankruptcy proceedings against Malahit (code EDRPOU 20322094) after finding the limited liability company insolvent. The case is docketed as 27/116 B. Mr. Illya Maksimov has been appointed Liquidator/Insolvency Manager. CONTACT: MALAHIT 85200, Ukraine, Donetsk region, Dzerzhinsk, Radchenko Str. 14 Mr. Illya Maksimov, Liquidator/Insolvency Manager 84320, Ukraine, Donetsk region, Kramatorsk, Habarovska Str. 163 ECONOMIC COURT OF DONETSK REGION 83048, Ukraine, Donetsk region, Artema Str. 157 STEPOK: Harkiv Court Opens Bankruptcy Proceedings ------------------------------------------------- The Economic Court of Harkiv region commenced bankruptcy proceedings against Stepok (code EDRPOU 00486787) after finding the open joint stock company insolvent. The case is docketed as B-50/108-05. Mr. Tishenko Oksana has been appointed liquidator/insolvency manager. CONTACT: STEPOK Ukraine, Harkiv region, Barvinkivskij district, Druga Ivanivka Mr. Tishenko Oksana Liquidator/Insolvency Manager 61002, Ukraine, Harkiv region, Petrovskij Str. 6/8-15 Phone: 700-55-97 ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square 5, Derzhprom 8th Entrance STROJINDUSTRIYASERVICE: Succumbs to Insolvency in Kyiv ------------------------------------------------------ The Economic Court of Kyiv region commenced bankruptcy proceedings against Strojindustriyaservice (code EDRPOU 32589487) after finding the limited liability company insolvent. The case is docketed as 15/812-b. Mr. Mihajlo Shkabrij has been appointed liquidator/insolvency manager. CONTACT: STROJINDUSTRIYASERVICE Ukraine, Kyiv region, 40-richya Zhovtnya Avenue 100/2 Mr. Mihajlo Shkabrij Liquidator/Insolvency Manager 03150, Ukraine, Kyiv region, Chervonoarmijska Str. 57/3, office 229 Phone: 8 (044) 230-23-90 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B SVITLOVODSK' BREAD: Crumbles Into Insolvency -------------------------------------------- The Economic Court of Kirovograd region commenced bankruptcy proceedings against OJSC Svitlovodsk' Bread Plant on Nov. 15, 2005, after finding the limited liability company insolvent. The case is docketed as 9/18. Mr. G. Zabolotnij has been appointed liquidator/insolvency manager. CONTACT: SVITLOVODSK' BREAD PLANT 27500, Ukraine, Kirovograd region, Svitlovodsk, P. Morozov Str. 3 Mr. G. Zabolotnij Liquidator/Insolvency Manager 25006, Ukraine, Kirovograd region, Lenin Str. 23 THE ECONOMIC COURT OF KIROVOGRAD REGION 25022, Ukraine, Kirovograd region, Lunacharski Str. 29 TEPLOGAZVODBUD: Liquidator Takes Over Operations ------------------------------------------------ The Economic Court of Donetsk region commenced bankruptcy proceedings against Teplogazvodbud (code EDRPOU 32441841) on Dec. 2, 2005 after finding the limited liability company insolvent. The case is docketed as 15/95 B. Ms. Kozlovska Diana has been appointed liquidator/insolvency manager. The company holds account number 26005302550804 at Prominvestbank, Kostyantinivka branch, MFO 334550. CONTACT: TEPLOGAZVODBUD 85100, Ukraine, Donetsk region, Kostyantinivka, Kalinin Str. 40-92 Ms. Kozlovska Diana, Liquidator/Insolvency Manager Ukraine, Donetsk region, Pershotravneva Str. 12, office 501-a Phone: 304-12-81 ECONOMIC COURT OF DONETSK REGION 83048, Ukraine, Donetsk region, Artema Str. 157 =========================== U N I T E D K I N G D O M =========================== BEN DAVIS: Meeting of Creditors Set Monday ------------------------------------------ Creditors of Ben Davis (Worcester) Ltd will meet on Feb. 6, 11 a.m. at Pear Tree Inn & Country Hotel, Smite Hill, Hindlip, Worcester, Worcestershire WR3 8SY. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Mark Bowen and Nigel Price, both of Moore Stephens LLP, Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB not later than 12 noon, Feb. 3, 2006. CONTACT: BEN DAVIS Hylton Road, Worcester, Worcestershire WR2 5JS Tel: 01905423178 MOORE STEPHENS CORPORATE RECOVERY Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB Tel: 0121 233 2557 Web site: http://www.moorestephens.co.uk BOOTS GROUP: Concludes Disposal of Boots Healthcare Unit -------------------------------------------------------- Boots Group PLC completed the sale of its Boots Healthcare International (BHI) division to Reckitt Benckiser for GBP1.926 billion. The proceeds of the sale will be used as follows: (a) GBP1.43 billion to be returned to shareholders via a special dividend of 200 pence per share; (b) GBP0.4 billion to be retained, as previously indicated, to fund additional investment in the Group and improve its overall financial flexibility; and (c) GBP0.1 billion taxation and transaction costs. The special dividend will be paid no later than Feb. 24 and the shares will trade ex-dividend from Feb. 13. The special dividend will be accompanied by a consolidation of Boots ordinary shares in the ratio 58 to 39. The share consolidation will, in effect, maintain comparability of earnings per share and share prices before and after the payment of the special dividend and will preserve the position of Boots option holders who will not receive the special dividend. The record date for the share consolidation will be Feb. 10. The disposal will give rise to an accounting profit of GBP1.4 billion which will be reported under Other Operating Income and Expenditure in the results for year ending March 31, 2006. It is expected that BHI operating profit for the 10 months to January 31, 2006 will be around GBP80 million. The reduction in net debt and additional cash balances resulting from the transaction will reduce the interest charge for the financial year by GBP5 million. The GBP400 million retained in the business will be used, in part, to finance the additional payment of GBP85 million into the Boots pension scheme that was announced in November. This payment will ensure the scheme remains one of the best funded in the FTSE and is good news for employees and shareholders. The remaining funds will be used primarily to enhance the ongoing program to Build a Better Boots through investing in stores and in reducing structural costs as well as to strengthen the Group's balance sheet. Further details will be announced as plans are finalized. These plans will be independent of but complementary to the proposed merger with Alliance UniChem. About the Company Headquartered in Nottingham, Boots Groups PLC -- http://www.boots-plc.com/-- is a health and beauty company with operations in retail, manufacturing and distribution. Boots sells its products in 130 countries and, excluding Boots Healthcare International, employs approximately 65,000 people globally. Boots operates over 1,400 health and beauty stores in the U.K. with an aggregate selling area in excess of 647,000 square meters. * * * Alliance Unichem Merger It has agreed on a merger with Alliance Unichem plc to create Alliance Boots, an international pharmacy-led healthcare group with combined sales of over GBP13 billion. It has also entered into an agreement to sell BHI to Reckitt Benckiser plc, for an aggregate consideration on a debt and cash free basis of GBP1.926 billion in cash, subject to a completion working capital adjustment. In September, Boots admitted that trading conditions have been difficult throughout the first half with consumer spending softening further over the last quarter. It plans to focus on its trading margin, costs and working capital in the second half. The difficult market conditions have led to like-for-like sales below the rate planned for the full year. Reduced consumer spending on replacement eyewear and price deflation following the deregulation of contact lens sales, coupled with the disruption to the Boots Opticians business from the integration into Boots The Chemist adversely impacted the results, and these trends are expected to continue. CIRCATEX GROUP: Circuit Board Manufacturer Hires Administrator -------------------------------------------------------------- R. H. Kelly and C. G. J. King of Ernst & Young LLP were appointed administrators of Circatex Group Limited (Company No 5067435) on Jan. 16. Its registered office is at Eldon Street, South Shields, Tyne and Wear NE33 5BU. Circatex Group Limited -- http://www.circatex.com/-- manufactures printed circuit board. CONTACT: CIRCATEX GROUP LIMITED Circatex, Eldon Street, South Shields, Tyne & Wear NE33 5BU Tel: +44 191 4031000 Fax +44 191 4564387 ERNST & YOUNG PO Box 61, Cloth Hall Court 14 King Street, Leeds LS1 2JN Tel: +44 [0] 113 298 2200 Fax: +44 [0] 113 298 2201 Web site: http://www.ey.com CROSSCO 925: Bank of Scotland Appoints Tait Walker as Receiver -------------------------------------------------------------- Bank of Scotland appointed Gordon S. Goldie and Allan D. Kelly of Tait Walker joint administrative receivers of Crossco 925 Limited (Reg No 01958156) on Jan. 13. The company is previously named Indigo Software Limited. It offers software consultancy. CONTACT: TAIT WALKER Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne NE3 3LS Tel: 0191 285 0321 Fax: 0191 284 9117 E-mail: advice@taitwalker.co.uk Web site: http://www.taitwalker.co.uk/ CURVED PRESSINGS: Hires Administrators from Pure Recovery --------------------------------------------------------- Stephen John Evans and Ian Timothy Brown of Pure Recovery LLP were appointed administrators of Curved Pressings Limited (Company No 4110491) on Jan. 20. Its registered office is at Unit 1, 16A Kings Yard, Carpenters Road, London E15 2JD. Headquartered in Hackney, East London, Curved Pressings Limited -- http://www.curvedpressings.com/-- offers premium quality service in mastering to lacquer from CDR/ DAT, metalwork from lacquer, 12" black and colored vinyl, 10" black and colored vinyl, heavyweight vinyl (180g approx), all necessary printed parts; labels, sleeves, stickers, inserts etc., online quote engine and easy email order placement. CONTACT: CURVED PRESSINGS LIMITED Unit 1, Darnley Road, Hackney, London E9 6QH Tel: +44 (0) 20 85338080 PURE RECOVERY LLP 39 Hatton Garden, London EC1N 8EH E-mail: tim.brown@purerecovery.com EGNI ENERGY: Retailer Hires Tenon Recovery to Administer Assets --------------------------------------------------------------- Dilip K. Dattani and Patrick B. Ellward of Tenon Recovery were appointed administrators of energy retailer Egni Energy Limited (Company No 05215130) on Jan. 18. CONTACT: TENON RECOVERY 1 Bede Island Road Bede Island Business Park Leicester LE2 7EA Tel: 0116 222 1101 Fax: 0116 222 1102 E-mail: leicester@tenongroup.com Web site: http://www.tenongroup.com/ TENON RECOVERY Charnwood House, Gregory Boulevard, Nottingham NG7 6NX Tel: 0115 955 2000 Fax: 0115 918 4500 Web site: http://www.tenongroup.com/ FORMASONS LIMITED: Financial Woes Prompt Voluntary Liquidation -------------------------------------------------------------- Formasons Limited is liquidating its assets after members elected to wind up the company's operations during an extraordinary general meeting held on Dec. 16, 2005, in Finchley, London. Company Director T. Cripps informs that the members found out that the company cannot continue its business due to its mounting debts. H J Sorksy is appointed Liquidator. CONTACT: FORMASONS LIMITED 39B Freelands Road Bromley Kent BR1 3HZ Tel: 020 84608216 020 84666555 Fax: 020 83130575 FULFILMENT & DISTRIBUTION: Creditors to Meet Today -------------------------------------------------- Creditors of Fulfilment & Distribution Limited (Company No 03589104) will meet on Feb. 2, 10:30 a.m. at UHY Hacker Young, St Alphage House, 2 Fore Street, London EC2Y 5DH. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to A. Andronikou, joint administrator of UHY Hacker Young, St Alphage House, 2 Fore Street, London EC2Y 5DH. CONTACT: UHY HACKER YOUNG St Alphage House, 2 Fore Street, London EC2Y 5DH Tel: 020 7216 4600 Fax: 020 7638 2159 GALAXY COACHWORKS: Winding Up Assets in London ---------------------------------------------- Members of Galaxy Coachworks Ltd passed a resolution to wind up the company during an extraordinary general meeting on Dec. 15, 2005, in London. The voluntary liquidation came as a result of the Debtor's inability to continue its operations due to its liabilities. Alan Simon is appointed Liquidator to wind up the company's business. CONTACT: GALAXY COACHWORKS LTD 10 Adrian Avenue London NW2 1LX Tel: 020 88305776 Fax: 020 88305778 HIGHBURY LIFESTYLE: In Administrative Receivership -------------------------------------------------- Barclays Bank PLC appointed Margaret Elizabeth Mills and Roy Bailey of Ernst & Young LLP joint administrative receivers of magazine publisher Highbury Lifestyle Limited (Reg No 3578791) on Jan. 20. CONTACT: HIGHBURY LIFESTYLE 1-3 Highbury Station Road London N1 1SE United Kingdom Tel: 020 7226 2222 Fax: 020 7226 1255 ERNST & YOUNG LLP 1 More London Place London SE1 2AF Tel: +44 [0] 20 7951 2000 Fax: +44 [0] 20 7951 1345 Web site: http://www.ey.com/ HIGHBURY NEXUS: Appoints Ernst & Young as Administrator ------------------------------------------------------- Maggie Mills and Roy Bailey of Ernst & Young LLP were appointed administrators of Highbury Nexus Special Interests Limited (Company No 02246954) on Jan. 20. Its registered office is at Jordan House, 47 Brunswick Place, London N1 6EB. CONTACT: HIGHBURY-NEXUS SPECIAL INTERESTS LTD. Berwick House 8/10 Knoll Rise Orpington, Kent BR6 0EL United Kingdom Tel: +44 (0) 1689 899 232 Fax: +44 (0) 1689 899 240 ERNST & YOUNG LLP 1 More London Place London SE1 2AF Tel: +44 [0] 20 7951 2000 Fax: +44 [0] 20 7951 1345 Web site: http://www.ey.com/ INEOS HOLDINGS: S&P Rates EUR400-Mil Second-Lien Loan at B- ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' long-term debt rating and '5' recovery rating to the proposed EUR400 million second-lien loan to be issued by Ineos Holdings Ltd. (B+/Stable/--), the U.K.-based chemicals group. At the same time, Standard & Poor's affirmed its 'B+' long-term debt rating and '2' recovery rating on the senior secured loan to be issued by Ineos Holdings, which is to be increased to a proposed EUR7.22 billion from EUR6.77 billion. The 'B-' long- term debt rating and '5' recovery rating on the proposed fixed- rate subordinated notes issue, which has been reduced to EUR2.355 billion and will be issued by the parent entity Ineos Group Holdings PLC (Ineos; B+/Stable/--), were also affirmed. The total level of term debt will remain unchanged. The ratings remain subject to satisfactory review of final documentation. "The '5' recovery rating on the proposed second-lien loan indicates our expectation of negligible recovery of principal, of 0% to 25%, for noteholders in the event of a payment default," said Standard & Poor's recovery analyst Marc Lewis. "The second-lien loan is rated 'B-', two notches below the 'B+' corporate credit rating on Ineos Holdings, because second-lien noteholders are expected to benefit from the same security package as the senior lenders but with second-ranking priority." The facility is being arranged to refinance a high-yield bridge loan put in place as part of Ineos' acquisition of Innovene from BP PLC (AA+/Stable/A-1+). The ratings on Ineos continue to reflect its aggressive financial policy, marked by substantial debt-funded external growth and resulting weak cash flow coverage, and cyclical markets. The ratings continue to be constrained by the group's free operating cash flow, which is vulnerable to potentially higher capital expenditures, higher restructuring costs, or lower savings than anticipated in the business plan for Innovene. These factors are partially offset by the group's fair diversification, management track record in acquiring and boosting assets, and positive cycle prospects for the next few years. Recovery Analysis When estimating recoveries, Standard & Poor's simulates a default scenario. We used an enterprise valuation approach as we believe the group, with its fair business profile, would most likely default as a result of its high leverage and lenders would achieve greater value through reorganization than through a liquidation of assets. Standard & Poor's simulated default scenario assumed a potential combination of four factors: (a) Increased stress on the length and depth of the various down-cycles and recovery period forecast by management, particularly in the petrochemicals businesses, a key profit driver for the group; (b) Incremental raw-material cost increases; (c) Reductions in the amount and timeliness of the business plan cost savings, although some credit has been given for Ineos' track record in cost cutting. The cost savings are key to offsetting expected falls in profitability as the pricing cycle turns; and (d) Increases in interest margins and cost of funding (taking into account expected hedging of 50% of the senior secured debt) needed to secure waivers or amendments. In addition, S&P made three assumptions: (a) The revolving facility is assumed to be fully drawn at the point of default; (b) The borrowing base facility is assumed to have been prepaid and converted into an accounts receivable securitization; and (c) Outstanding senior pari passu liabilities are expected to be at the maximum level permitted under the financing documentation. Under its simulated scenario and using primarily a discounted cash flow valuation analysis, a payment default is unlikely to occur before 2010. For the senior secured lenders, taking into account other material pari passu senior obligations and prior-ranking liabilities, Standard & Poor's anticipates recovery in the 80%- 100% range, indicating substantial recovery of principal and resulting in a recovery rating of '2'. Using the same valuation approach, this leaves negligible coverage available for second-lien lenders and fixed-rate noteholders. Given the second-ranking priority of the second- lien debt, and the more limited and third-ranking priority package available to noteholders, Standard & Poor's expects marginal prospects for recovery on these facilities in the 0%- 25% range leading to a recovery rating of '5'. The recovery ranges take into consideration the potential for cross- jurisdictional issues that might affect ultimate recoveries and the inherent volatility in some of the group's operations. INSIDE TRACK: Creditors Confirm Voluntary Liquidation ----------------------------------------------------- Creditors of Inside Track Asset Management Limited confirmed the company's voluntary liquidation after members passed a resolution to wind up the company's operations on Dec. 16, 2005. Creditors also ratified the appointment of John D. Cullen of Harris Lipman as liquidator. Chairman A. Fletcher disclosed that the company could no longer continue operating its business due to mounting debts. CONTACT: INSIDE TRACK ASSET MANAGEMENT LIMITED The Help Centre Unit 26 Garth Estate Taffs Well Cardiff CF157YF Tel: 029 2064 9622 Fax: 029 2064 9633 JWS CONSTRUCTION: Taps Liquidators to Wind Up Operations -------------------------------------------------------- JWS Construction (North East) Limited appointed Ian William Kings, of Tenon Recovery and Gregory Whitehead, of Northpoint Associates, to liquidate its assets after members passed a resolution to wind up the company's operations on Dec. 20, 2005. B. Taylor, Chairman of JWS Construction, disclosed that the company cannot continue its business after being slumped in debt. CONTACT: JWS CONSTRUCTION (NORTH EAST) LIMITED The Builders Yard Back of Close Street Millfield Sunderland SR4 6EN Tel: 0191 567 2055 Fax: 0191 565 7561 KARMPAC LIMITED: Winding Up Assets in Gainsborough -------------------------------------------------- Karmpac Limited is liquidating its assets after members found out that the company cannot continue its operations due to mounting liabilities. Matthew Colin Bowker and David Antony Willis, of Jacksons Jolliffe Cork are appointed Joint Liquidators. CONTACT: KARMPAC LIMITED Caenby Corner Estate Gibson Road Hemswell Cliff Gainsborough, Lincolnshire DN21 5TL Tel: 01427 667060 Fax: 01427 667061 KIBER LIMITED: Brings In Ashcrofts Firm to Liquidate Assets ----------------------------------------------------------- Kiber Limited authorized Harjinder Johal and George Michael of Ashcrofts to wind up the company's assets. The company is voluntarily liquidating its assets after parties passed a resolution to wind up the company during an extraordinary general meeting held on Dec. 22, 2005, in London. CONTACT: KIBER LIMITED 1 Chipping Row South Woodham Ferrers Chelmsford CM3 5XU Tel: 01245 321 006 KINGSWOOD PRECISION: Begins Voluntary Liquidation ------------------------------------------------- Kingswood Precision Engineering Ltd is liquidating its assets after a resolution to wind up the company was passed at an extraordinary general meeting on Dec. 22, 2005, in London. D.M. Patel is appointed Liquidator. CONTACT: KINGSWOOD PRECISION ENGINEERING LTD 32 Ashcombe Rochford Essex SS4 1SL Tel: 01268 455 500 LAUNDO LIMITED: Calls in Administrators from Tait Walker -------------------------------------------------------- Gordon S. Goldie and Allan David Kelly of Tait Walker were appointed joint administrators of Laundo Limited (Company No 04550061) on Jan. 16. CONTACT: LAUNDO LIMITED E-mail: info@laundo.com TAIT WALKER Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne NE3 3LS Tel: 0191 285 0321 Fax: 0191 284 9117 E-mail: advice@taitwalker.co.uk Web site: http://www.taitwalker.co.uk/ LINK-IT SERVICES: Names Unity Corporate Recovery as Liquidator -------------------------------------------------------------- Members of Link-It Services Limited passed a resolution to wind up the company during an extraordinary general meeting held on Dec. 19, 2005, in Bolton. S. Roskilly, Director and Shareholder of the company, disclosed that Matthew Colin Bowker of Unity Corporate Recovery & Insolvency are appointed liquidators. CONTACT: LINK-IT SERVICES LIMITED 2 Lumb Lane Bramhall Stockport Cheshire SK7 2BA Tel: 01625 522 055 Fax: 0161 439 3222 LOGICOM INTEGRATED: Liquidators from Ernst & Young Move In ---------------------------------------------------------- J. M. Tonge, chairman of Logicom Integrated Logistics Company Limited, informs that the special resolution to wind up the company was passed at an EGM held on Jan. 17 at Ernst & Young LLP, 400 Capability Green, Luton LU1 3LU. Tom Lukic and Ian Best of Ernst & Young, No 1 Colmore Square, Birmingham B4 6HQ were appointed joint liquidators. Creditors are required on or before March 7, 2006, to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of the Solicitors (if any), to T. Lukic. CONTACT: LOGICOM INTEGRATED LOGISTICS CO LTD Logicom House, Norton Grn Road, Stevenage, Hertfordshire SG1 2BA Tel: 01438347777 ERNST & YOUNG LLP No. 1 Colmore Square Birmingham B4 6HQ Tel: +44 [0] 121 535 2000 Fax: +44 [0] 121 535 2001 Web site: http://www.ey.com/ MBR REALISATIONS: Debt Claims Filing Period Ends March 10 --------------------------------------------------------- Members of MBR Realisations (2005) Limited appointed Richard Floyd and William Jeremy Jonathan Knight of Richard Floyd & Co. to liquidate the company's assets. Parties recommended the voluntarily wind up of the company's operations after determining that the company's liabilities hinder its ability to continue the business. The wind up resolution was passed on an Extraordinary General Meeting. Creditors are required on or before March 10, 2006, to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of the Solicitors (if any), to William Jeremy Jonathan Knight. CONTACT: RICHARD FLOYD & CO. 29 Roseacre Gardens Chilworth Guildford Surrey GU4 8RQ Tel: 01483 302782 Fax: 01483 300909 MCF DEVELOPMENTS: Liquidating Assets in Royston ----------------------------------------------- MCF Developments Limited is liquidating its assets after members passed a resolution to wind up the company's operations. The voluntary liquidation came as a result of the company's ability to continue its business due to its liabilities. Chris Williams, of McTear Williams & Wood will lead the liquidation proceedings. CONTACT: MCF DEVELOPMENTS LIMITED Low Barns Farm Building Mill Lane, Arrington Royston, Hertfordshire SG8 0DB Tel: 01223 208555 Fax: 01223 208855 MILLENIUM MOTORCYCLE: Lloyds TSB Bank Appoints Receiver ------------------------------------------------------- Lloyds TSB Bank Plc appointed Keith Hinds and Nigel Ruddocks both of Grant Thornton UK LLP joint administrative receivers of Millenium Motorcycle Centre Limited (Reg No 03824115) on Jan. 17. Its registered office is at Aspinall Place, Thatto Heath Road, St Helens, Merseyside WA9 5PE. Headquartered in North West in St Helens, Lancashire, Millenium Motorcycle Centre Limited -- http://www.mmcbikes.co.uk/-- is UK's largest independent franchised dealership. The company offers new Honda, Suzuki, Yamaha, Kawasaki, CCM, Aprilia and Kymco motorbikes and scooters as well as a vast range of used motorcycles. It also sells top name new and used scooters including Aprilia, Kymco and Suzuki. CONTACT: MILLENIUM MOTORCYCLE Centre Ltd, Aspinall Place Thatto Heath Road, St. Helens Merseyside WA9 5PE Tel: 01744 616161 Fax: 01744 616163 GRANT THORNTON Heron House, Albert Square Manchester M60 8GT Tel: 0161 834 5414 Fax: 0161 832 6042 Web site: http://www.grant-thornton.co.uk/ MILL TRANSPORT: Begins Voluntary Liquidation Proceedings -------------------------------------------------------- Mill Transport (Bedford) Limited appointed Peter John Windatt and Gary Steven Pettit of BRI Business Recovery and Insolvency to jointly liquidate the company's assets. The company is voluntarily liquidating its assets after parties passed a resolution to wind up the company during an extraordinary general meeting held on Dec. 14, 2005, in Central Milton Keynes. CONTACT: MILL TRANSPORT (BEDFORD) LIMITED Building 32 Bedford Technology Park Clapham Bedford MK416BJ Tel: 01234 218 055 MINIMEC LIMITED: Creditors Meeting Set Next Week ------------------------------------------------ Creditors of Minimec Limited (Reg No 03800473) will meet on Feb. 10, 10 a.m. at BDO Stoy Hayward, Kings Wharf, 20-30 Kings Road, Reading, Berkshire RG1 3EX. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to M. H. Thompson, joint administrator of BDO Stoy Hayward, Kings Wharf, 20-30 Kings Road, Reading, Berkshire RG1 3EX not later than 12 noon, Feb. 9. CONTACT: MINIMEC LTD Minimec House 5 Kiln Lane Bracknell Berkshire RG121NA Tel: 01344 455324 Fax: 01344 869115 BDO STOY HAYWARD Kings Wharf, 20-30 Kings Road, Reading, Berkshire RG1 3EX Tel: 0118 925 4400 Fax: 0118 925 4470 E-mail: reading@bdo.co.uk Web site: http://www.bdostoyhayward.co.uk/ MULTIDRIVE LIMITED: Vehicle Maker Calls In Administrator -------------------------------------------------------- Nigel Morrison and Richard Hawes of Grant Thornton UK LLP were appointed joint administrators of Multidrive Limited (Company No 01662349) on Jan. 18. Its registered office is at 19 Rodney Road, Cheltenham, Gloucestershire GL50 1HX. Multidrive Limited -- http://www.multidrive.co.uk/-- designs and manufactures specialist vehicles for the construction, agricultural and military markets. CONTACT: MULTIDRIVE LTD Ethos House, The Industrial Estate Andoversford, Cheltenham GL54 4LB Gloucestershire Tel: 01242 821345 Fax: 01242 820963 GRANT THORNTON U.K. LLP 43 Queen Square Bristol BS1 4QR Tel: 0117 926 8901 Fax: 0117 926 5458 Web site: http://www.grant-thornton.co.uk/ NORTHERN FOODS: Redeems Convertible Bonds in Full ------------------------------------------------- Northern Foods PLC repaid its 6-3/4% convertible subordinated bonds due 2008 in full on Jan. 31. The company disclosed that it will later apply for the stock to be delisted. About the Company Headquartered in Leeds, Northern Foods PLC -- http://www.northern-foods.co.uk/-- is one of U.K.'s leading food producers with a turnover of GBP1.5 billion and over 22,000 employees based in sites across the U.K. and Ireland. Northern Foods began restructuring and refocusing its business in Autumn 2003. It has launched a comprehensive strategic review of the business, established a new management team, and simplified its business structure and factory organization. OLYMPIAN AUTOMOTIVE: In Administrative Receivership --------------------------------------------------- RFS Limited appointed Nigel Ruddock and Nigel Morrison of Grant Thornton UK LLP joint administrative receivers of Olympian Automotive Limited (Reg No 02338407) on Jan. 19. Its registered office is at 573 Wallisdown Road, Bournemouth BH12 5BA. Headquartered in Bournemouth, United Kingdom, Olympian Automotive Limited -- http://www.olympianautomotive.co.uk/-- is one of Britain's top 150 motor dealerships, with showrooms and service facilities in, New Milton, Blandford and Salisbury. Olympian has 180 workers. Its turnover last year was approximately GBP60 million. CONTACT: OLYMPIAN AUTOMOTIVE LIMITED Brunel Rd Salisbury, Churchfields Industrial Estate, SP2 7PU Tel: 01722 349349 GRANT THORNTON UK LLP The Explorer Building Fleming Way Manor Royal Crawley West Sussex RH10 9GT Tel: 0870 381 7000 Fax: 0870 381 7005 E-mail: nigel.ruddock@gtuk.com GRANT THORNTON U.K. LLP 43 Queen Square Bristol BS1 4QR Tel: 0117 926 8901 Fax: 0117 926 5458 Web site: http://www.grant-thornton.co.uk/ P A ADDISON: Hires Baker Tilly Liquidator ----------------------------------------- P A Addison (Farmers) Ltd voluntarily liquidated its assets after members voted to wind up the company's operations during an EGM held on Jan. 19. Company chairman disclosed that Alec David Pillmoor and Adrian David Allen of Baker Tilly were appointed joint liquidators after members found out that the company cannot continue its business due to its liabilities. Creditors are required on or before Feb. 13, 2006, to send in their full names, addresses and descriptions, full particulars of debts or claims and the names and addresses of Solicitors (if any), to Alec David Pillmoor. CONTACT: PA ADDISON (FARMERS) Church Farm Riby Church Hill Riby South, Humberside DN37 8NX Tel: 01469 560304 BAKER TILLY Wilberforce Court Alfred Gelder Street Hull East Yorkshire HU1 1YH Tel: 01482 327406 Fax: 01482 326957 PURPLE INC: Calls In Administrators from Rothman Pantall & Co. -------------------------------------------------------------- R. D. Smailes and S. B. Ryman of Rothman Pantall & Co were appointed joint administrators of Purple Inc Limited (Company No 03036494) on Jan. 12. Its registered office is at York House, 1 Seagrove Road, London SW6. Purple Inc Ltd -- http://www.purpleinc.co.uk/-- is an award- winning, independent support service for art and literary design and production. CONTACT: PURPLE INC LIMITED Woodside 12 Oakhill Drive Welwyn, Hertfordshire AL6 9NW Tel: 01438 717777/717766 Fax: 01438 717744 E-mail: Purpleinc@msn.com ROTHMAN PANTALL & CO Clareville House, 26-27 Oxendon Street, London SW1Y 4EP Tel: +44 (0) 20 7930 7272 Fax: +44 (0) 20 7930 9849 E-mail: london@rothman-pantall.co.uk Web site: http://www.rothman-pantall.co.uk/ RODAN DESIGN: Kitchen Maker Taps Grant Thornton Administrator ------------------------------------------------------------- Nicholas Stewart Wood and James Earp of Grant Thornton UK LLP were appointed joint administrators of Rodan Design Limited (Company No 04236595) on Jan. 20. Its registered office is at Unit 4, Wokingham Metro Centre, Toutley Road, Wokingham, Berkshire RG41 1QW. The company's trading name is Mobalpa. Rodan Design Limited -- http://mobalpa.net/-- is a kitchen specialist in Berkshire, United Kingdom. CONTACT: RODAN DESIGN LTD Unit 4 - Metro Centre Toutley Road Wokingham RG41 1QW Tel: 0118 9796926 E-mail: mobalpa@btopenworld.com GRANT THORNTON U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP Tel: 020 7383 5100 Fax: 020 7383 4715 Web site: http://www.grant-thornton.co.uk/ SHADY GROVE: Calls In Administrator from Barringtons Limited ------------------------------------------------------------ Philip B. Wood of Barringtons Limited was appointed administrator of Shady Grove Stores Ltd (Company No 4688284) on Jan. 16. Its registered office is at 30-32 Shady Grove, Alsager, Stoke on Trent ST7 2NH. CONTACT: SHADY GROVE STORES 30-32 Shady Grove, Alsager, Stoke-On-Trent, Staffordshire ST7 2NH Phone: 01270875055 BARRINGTONS Richmond House 570-572 Etruria Road Basford Newcastle Under Lyme Staffordshire ST5 0SU Tel: 01782 713700 Fax: 01782 713379 E-mail: pbw@barraccount.co.uk SHERIOL 120: RFS Limited Appoints Grant Thornton Receiver --------------------------------------------------------- RFS Limited appointed Nigel Ruddock and Nigel Morrison of Grant Thornton UK LLP joint administrative receivers of holding company Sheriol 120 Limited (Reg No 04125932) on Jan. 19. Its registered office is at New Court, 1 Barnes Wallis Road, Segensworth, Fareham, Hampshire PO15 5UA. CONTACT: GRANT THORNTON UK LLP The Explorer Building Fleming Way Manor Royal Crawley West Sussex RH10 9GT Tel: 0870 381 7000 Fax: 0870 381 7005 E-mail: nigel.ruddock@gtuk.com GRANT THORNTON U.K. LLP 43 Queen Square Bristol BS1 4QR Tel: 0117 926 8901 Fax: 0117 926 5458 Web site: http://www.grant-thornton.co.uk/ X-IT 18: Hires Tomlinsons to Administer Assets ---------------------------------------------- A. H. Tomlinson of Tomlinsons was appointed joint administrator of X-IT 18 Processing Limited (Company No 1911139) on Jan. 20. Its registered office is at Drury Lane, Chadderton, Oldham OL9 7PT. CONTACT: TOMLINSONS St John's Court, 72 Gartside Street, Manchester M3 3EL Tel: 0870 60 70 170 Fax: 0870 60 70 180 E-mail: advice@tomlinsons.co.uk Web site: http://www.tomlinsons.co.uk/ ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel Laureno, Liv Arcipe, Julybien Atadero, Jay Malaga, and Carmel Paderog, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. 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