/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060208.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, February 8, 2006, Vol. 7, No. 28 Headlines F R A N C E TREFILERIES DE CONFLANDEY: Saarstahl Takes Over Operations G E R M A N Y A.U.G. FRICKE: Dortmund Court to Verify Claims on May 4 BAUGESCHAFT ADOLF: Court Calls in CMS Hasche as Administrator C.E.M.A. UNTERNEHMENSCONSULTING: Administrator Takes Over Firm ELITO ELECTRONIC: Bayreuth Business Falls Into Bankruptcy LINDER METALL: Claims Registration Deadline Set on March 3 M&M METTELSIEFEN: Koln Court Begins Bankruptcy Proceedings PROMISE-K: Fitch Rates EUR18.70 Million Class E Notes at BB SECON GMBH: Claims Filing Period Ends Feb. 23 SI SACHWERT: Wuerzburg Court Calls in Administrator VOLKSWAGEN AG: New Labor Deal Could Leave 7,000 Jobless in 2006 WOHNBAUTEN-AKTIENGESELLSCHAFT: Under Bankruptcy Administration G R E E C E COMMERCIAL VALUE: High Investment Risk Prompts Fitch's BB Rating H U N G A R Y MALEV RT: Outlines Capital Hike for Spun-off Units I T A L Y ALITALIA SPA: Projects EUR125 Mln Loss if Volare Purchase Fails PARMALAT SPA: Can Pursue EUR10 Billion Suit Against BofA PARMALAT SPA: Strikes Lay-off Deal With Workers K A Z A K H S T A N INVECO: Declares Insolvency LUKS OIL: Creditors Have Until March 27 to File Proofs of Claim KASKOR MASHZAVOD: Bankruptcy Proceedings Begin SATURN ABS: Mangistau Authorities Open Bankruptcy Proceedings T&T LTD.: Court Sets Proofs of Claim Deadline for March 27 L I T H U A N I A AB BANKAS: Fitch Lifts Individual Rating to 'D' N E T H E R L A N D S IFCO SYSTEMS: S&P Raises Credit Rating to BB- on Improved Biz ROYAL SHELL: Inks New MoU for Joint Projects with Sonatrach ROYAL SHELL: Redeems 500,000 'A' Shares for Cancellation R U S S I A BAKALINSKIY: Insolvency Manager Takes Helm DAVLEKANOVSKIY BAKERY: Claims Filing Period Ends Next Week DEBESSKIY AGRO-COMBINE: Under Bankruptcy Supervision KOSHKINSKOYE: Samara Court Brings In Insolvency Manager KRASNOSELSKUP-OIL-GAS-SERVICE: Succumbs to Bankruptcy KUYUR-GAS-SEL-ENERGO: Bankruptcy Hearing Set March 13 OAO GAZPROM: Sets June AGM to Elect Board & Audit Members OAO MEGAFON: Fitch Upgrades US$375 Million Bond Rating to 'BB' REM-STROY-SERVICE: Undergoes Bankruptcy Supervision Procedure RESEARCH INSTITUTE: Udmurtiya Court Opens Bankruptcy Proceedings SEVER-GAS-SPETS-STROY: Declared Insolvent VYROVSKOYE: Deadline for Proofs of Claim Set Feb. 14 U K R A I N E ANETA: Under Bankruptcy Supervision in Kyiv ARMATURE-INSULATOR: Court Rules on Bankruptcy AUTO ENGINEERING: Court Names Oleg Bliznyuk as Liquidator HIMRESURS: Succumbs to Bankruptcy Proceedings in Lugansk KRASNOPEREKOPSKIJ METAL: Melts Under Bankruptcy OBERONBUDPROM: Larisa Slyusarenko Named to Liquidate Assets SAPFIR: Court Declares Bankruptcy for Sevastopol Firm TEHPROMTORG: Court Begins Bankruptcy Supervision U N I T E D K I N G D O M 24 HOUR: Appoints Liquidators to Wind Up Assets A1 STRETCH: Limo-for-Hire Business Up for Sale BOLTON AND FLEET: Taps Begbies Traynor to Administer Assets BRITISH ENERGY: To Unveil Third Quarter Results on Feb. 24 CARLTON MAINTENANCE: Hires Begbies Traynor Administrator CHARGECHECK LTD.: Administrator Begins Asset Sale Offer ECG GROUP: Names Joint Receivers from KPMG Due to Cash Crisis ELISION TECHNOLOGY: Debt Claims Filing Period Ends March 17 ESTAMAN PROPERTIES: Creditors Have Until Feb. 24 to File Claims FOODOLOGY UK: Administrators From KPMG Takes Over Helm GLOBAL NEWS: Begins Liquidation Proceedings HENLEY OFFICES: Appoints Administrators from Baker Tilly LONDON DEMOLITION: In Administrative Receivership NEIL GRINNALL: Creditors Meeting Set Tomorrow NIGHTCLUB COMPANY: Appoints Joint Administrators from PwC SCAFFOLD IT: In Administrative Receivership SKYEPHARMA PLC: Fidelity Int'l. Cuts Equity Stake to 5.95% SKYEPHARMA PLC: Names Frank Condella as Chief Executive Officer TIMBER SYSTEMS: Furniture Maker Calls in Administrator WEST HAMPSHIRE: Water Supplier Winds Up WESTFIELD STAMPINGS: Manufacturer Names Vantis Administrator ********** =========== F R A N C E =========== TREFILERIES DE CONFLANDEY: Saarstahl Takes Over Operations ---------------------------------------------------------- Trefileries de Conflandey will be taken over by Saarstahl after undergoing insolvency proceedings, Frankfurter Allgemeine Zeitung says. The German steel company will take over Trefileries de Conflandey's two plants located in Conflandey and Port d'Atelier including its production capacity of 70,000 tones per year and its current 300 employees. Headquartered in Paris, France, Trefileries De Conflandey -- http://www.conflandey.fr-- is a subsidiary of Conflandey Group. It manufactures stapling wires for all materials and equipment, as well as a major actor in the multiple applications of non- alloy steel thin wires. The company has five plants in East of France and two in the U.S. and Slovakia. It markets 73% of its production outside of France. ============= G E R M A N Y ============= A.U.G. FRICKE: Dortmund Court to Verify Claims on May 4 ------------------------------------------------------- The District Court of Dortmund opened bankruptcy proceedings against A.u.G. Fricke GmbH & Co. Stahlbau KG on Jan. 25. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 24, 2006, to register their claims with court-appointed provisional administrator Achim Thomas Thiele. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Dortmund, Gerichtsplatz 1, 44135 Dortmund, II. Etage, Saal 3.201, at 9:45 a.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 9:00 a.m., on May 4, 2006, at the same venue. CONTACT: A. U. G. FRICKE GmbH & CO. STAHLBAU KG Rueschebrinkstr. 151-153, 44143 Dortmund Contact: Stephan and Thomas Fricke, Managers Achim Thomas Thiele, Administrator Bronnerstrasse 7, 44141 Dortmund Tel: 54110 Fax: 5411266 BAUGESCHAFT ADOLF: Court Calls in CMS Hasche as Administrator ------------------------------------------------------------- The District Court of Augsburg opened bankruptcy proceedings against Baugeschaft Adolf Rauch GmbH i.L. 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 Michael C. Frege. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Augsburg, Sitzungssaal 162, 1. Stock, Am Alten Einlass 1, 86150 Augsburg, at 10:30 a.m., on March 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 during this meeting, while creditors may constitute a creditors committee and/or opt to appoint a new insolvency manager. CONTACT: BAUGESCHAFT ADOLF RAUCH GmbH i.L. Kreuzstr. 3 b, 86946 Vilgertshofen/ OT Pflugdorf, HRB 8462, AG Augsburg Michael C. Frege, Administrator c/o CMS Hasche Sigle Insolvenzberatung und -verwaltung GbR Brienner Strasse 11/V, 80333 Muenchen C.E.M.A. UNTERNEHMENSCONSULTING: Administrator Takes Over Firm -------------------------------------------------------------- The District Court of Augsburg opened bankruptcy proceedings against C.E.M.A. Unternehmensconsulting GmbH on Jan. 16. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 6, 2006, to register their claims with court-appointed provisional administrator Christian Plail. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Augsburg, Sitzungssaal 162, 1. Stock, Am Alten Einlass 1, 86150 Augsburg, at 9:15 a.m. on March 23, 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: C.E.M.A. UNTERNEHMENSCONSULTING GmbH Schwangaustr. 8, 86163 Augsburg Contact: Fiedler Arthur, Manager Christian Plail, Administrator c/o SKP Partnerschaftsgesellschaft Eserwallstr. 1-3, 86150 Augsburg ELITO ELECTRONIC: Bayreuth Business Falls Into Bankruptcy --------------------------------------------------------- The District Court of Bayreuth opened bankruptcy proceedings against Elito Electronic GmbH on Jan. 19. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 13, 2006, to register their claims with court-appointed provisional administrator Ulrich Pfeifer. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Bayreuth, Friedrichstr. 18, Zimmer 520, EG, at 10:00 a.m. on March 6, 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: ELITO ELECTRONIC GmbH Nuernberger Str. 41 in 91257 Pegnitz Contact: Marion Friedl, Manager 91275 Auerbach Ulrich Pfeifer, Administrator Feuerwache 5, 95445 Bayreuth Tel: 0921/7877806 Fax: 0921/7877806 LINDER METALL: Claims Registration Deadline Set on March 3 ---------------------------------------------------------- The District Court of Bonn opened bankruptcy proceedings against DMW LINDER Metall u. Maschinenbau GmbH on Jan. 20. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 3, 2006, to register their claims with court-appointed provisional administrator Ludger Westrick. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Bonn, Wilhelmstrasse 21, 53111 Bonn, at 10:00 a.m. on April 19, 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: LINDER METALL U. MASCHINENBAU GmbH Godesberger Str. 26, 53842 Troisdorf Contact: Stephan Mueller, Manager Raiffeisenstr. 2, 56587 Strassenhaus Ludger Westrick, Administrator Hensstr. 12/14, 53173 Bonn Tel: 9347-0-12 oder-24 Fax: 934799 M&M METTELSIEFEN: Koln Court Begins Bankruptcy Proceedings ---------------------------------------------------------- The District Court of Koln opened bankruptcy proceedings against M&M Mettelsiefen GmbH on Jan. 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 1, 2006, to register their claims with court-appointed provisional administrator M&M Mettelsiefen GmbH. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Koln, Hauptstelle, Luxemburger Strasse 101, 50939 Koln, 12. Etage, Raum 1240, at 9:00 a.m., on March 1, 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: M&M METTELSIEFEN GmbH Pingsdorfer Strasse 108, 50321 Bruehl Contact: Mark Mettelsiefen, Manager Schuetzenstrasse 4, 50321 Bruehl Dr. Christian Frystatzki, Administrator Sankt Augustiner Str. 94 a, 53225 Bonn Tel: 0228/40094-90 Fax: +492284009499 PROMISE-K: Fitch Rates EUR18.70 Million Class E Notes at BB ----------------------------------------------------------- Fitch Ratings assigned Promise-K 2006-1 GmbH's EUR275.60 million Class A+, A, B, C, D, E and F credit-linked floating-rate notes expected ratings as follows: (a) EUR0.50 million Class A+: 'AAA'; (b) EUR78.75 million Class A: 'AAA'; (c) EUR63.00 million Class B: 'AAA'; (d) EUR15.75 million Class C: 'AA'; (e) EUR49.55 million Class D: 'BBB'; (f) EUR18.70 million Class E: 'BB'; and (g) EUR49.35 million Class F: 'BBB'. This transaction is a synthetic securitization of debt obligations originated by Dresdner Bank AG (rated 'A'/'F1') to small- and medium-sized enterprises domiciled in Germany. The debt obligations consist of drawn and undrawn facilities, loans and guarantees. This is the second Promise transaction issued with a Dresdner Bank originated reference portfolio. At the cut off date, the reference portfolio is EUR2,100 million. The notes are issued by PROMISE-K 2006-1 GmbH, a bankruptcy- remote, special-purpose vehicle incorporated in Germany. The structure follows the template introduced by the True Sale Initiative (TSI), whereby the SPV is jointly and equally owned by three German charitable trusts. At closing, Dresdner Bank will buy protection under a bank swap in respect of a EUR2,100 million reference portfolio from the German public agency Kreditanstalt fur Wiederaufbau (KfW, rated 'AAA/F1+'). KfW in turn will hedge its exposure by issuing certificates of indebtedness credit-linked to the performance of the underlying portfolio of debt obligations (Schuldscheine), which were will be purchased by the issuer using the notes proceeds, and by entering into a senior credit default swap (SCDS) with a senior swap provider. The expected ratings of the notes are based on: the credit quality of the reference portfolio, the available credit enhancement in the form of subordination; Dresdner Bank's origination and servicing capabilities; the transaction's financial and legal structure and the credit quality of the collateral issued by KfW. The credit quality was established by mapping the internal credit rating systems of Dresdner Bank to Fitch's public rating scale. According to this, the weighted average Fitch rating of the portfolio equates to 'BBB-/BB+'. Credit enhancement for the Class A+ notes and the SCDS totals 13.10% and is provided by the Class A notes (3.75%), the Class B notes (3.00%), the Class C notes (0.75%), the Class D notes (2.36%), the Class E notes (0.89%) and the Class F notes (2.35%). The Class F notes represent the first loss protection of this transaction and benefit from an excess spread component based on the outstanding balance of the reference portfolio and guaranteed by Dresdner Bank AG. SECON GMBH: Claims Filing Period Ends Feb. 23 --------------------------------------------- The District Court of Offenbach am Main opened bankruptcy proceedings against SeCon GmbH on Jan. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 23, 2006, to register their claims with court-appointed provisional administrator Dr. Hans- Jorg Laudenbach. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Offenbach am Main, 1. OG, Saal 162N, Kaiserstrasse 16-18 (Gebaude K18), 63065 Offenbach am Main, at 9:40 a.m., on March 16, 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: SECON GmbH Schumannstr. 144, 63069 Offenbach am Main Contact: Christian Dieter Hoff, Manager Raik Rappika, Manager Dr. Hans-Jorg Laudenbach, Administrator Nibelungenplatz 3, 60318 Frankfurt Tel: 069/9055993 Fax: 069/90559955 SI SACHWERT: Wuerzburg Court Calls in Administrator --------------------------------------------------- The District Court of Wuerzburg opened bankruptcy proceedings against SI Sachwert-Immobilien-Service & Bautrager GmbH on Jan. 15. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 28, 2006, to register their claims with court-appointed provisional administrator Hannfried Grauer. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Wuerzburg, im Zimmer 8/I. Stock der Justiznebenstelle, Virchowstr. 14 in Wuerzburg, at 10:30 a.m., on March 20, 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: SI SACHWERT-IMMOBILIEN-SERVICE & BAUTRAGER GmbH Heinestr. 7b, 97070 Wuerzburg Contact: Dieter Kaidel, Manager Dr. Mohr & Bauer, Manager Hannfried Grauer, Administrator Augustinerstr. 5, 97070 Wuerzburg Tel. 0931/3555264 VOLKSWAGEN AG: New Labor Deal Could Leave 7,000 Jobless in 2006 --------------------------------------------------------------- About 7,000 workers could be sent home this year as Volkswagen AG inked a new early retirement scheme with the IG Metall engineering union. According to the Financial Times, Volkswagen intends to drop between 10,000 and 30,000 out of its 103,000-strong workforce in western Germany. The reductions are said to be part of the company's efforts to improve its competitiveness and reduce over-capacity at its plants. Under the new scheme, workers who will be 55 before 2009 can apply for the program. They can work full-time for three-and-a- half years before retiring on the same pay until they become qualified to receive pensions normally at 62. "The scheme gives us the possibility to bring in voluntary job cuts. It has previously been very successful, with nearly all workers eligible taking it," Financial Times cited a Volkswagen Official as saying. The new program will also see the carmaker pay only 65% of normal wages with the government contributing another 20%. Volkswagen's 2004 agreement with unions prohibits compulsory layoffs until 2011 in exchange for a temporary wage freeze. In September, Chief Executive Bernd Pischetsrieder said the company will intensify measures to cut back manpower, using instruments available under the collective agreement such as early retirement. Meanwhile, Volkswagen Brand Head Wolfgang Bernhard had told workers to be "ready to tread new paths" and stressed that "no sacred cows" would be spared as the struggling carmaker plans to save EUR10 billion and lift profits by EUR4 billion to avoid dipping further into the red by 2008. Parts Factories Volkswagen has also revealed plans to shut down, sell or fuse non-performing parts factories to other ventures. Volkswagen's factories that are solely dedicated to making components are in Brunswick, Kassel, Salzgitter and Chemnitz, alongside sections of plants in Wolfsburg and Mosel. According to the Auto Industry, unions represented on Volkswagen's supervisory board said they would not back the strategy unless the carmaker further explains its benefits. About the Company Headquartered in Wolfsburg, Germany, Volkswagen AG -- http://www.volkswagen.de/-- is one of the world's leading automobile manufacturers and the largest carmaker in Europe. With 47 production plants in eleven European countries and a further seven countries in the Americas, Asia and Africa, Volkswagen has more than 343,000 employees producing over 21,500 vehicles or are involved in vehicle-related services on every working day. Job Cuts Volkswagen has been carrying out measures to cut costs and raise profits, which could affect up to 30,000 jobs. The potential job cuts represent about a third of the carmaker's workforce and three times higher than initial estimates made by Chief Executive Bernd Pischetsrieder and Volkswagen brand head, Wolfgang Bernhard. In November, Volkswagen maintained its 2005 earnings guidance amid rumors it may lower targets. The company predicts a year- on-year improvement in both operating profit after special items and profit before tax this year. Rumors flew that the company would slash full-year earnings forecast due to higher restructuring costs. The company said the impact of its workforce reduction measures, which will be charged as special items in the fourth quarter, will be lower than last year's. The company also admitted there were no significant improvements in the economic environment in the first nine months of 2005, and the overall situation in the important automotive markets remained difficult. It also expected tougher competition in the Chinese and U.S. markets, and the rise in fuel prices to influence consumer confidence. WOHNBAUTEN-AKTIENGESELLSCHAFT: Under Bankruptcy Administration -------------------------------------------------------------- The District Court of Hamburg opened bankruptcy proceedings against Wohnbauten-Aktiengesellschaft Reinickendorf on Jan. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 7, 2006, to register their claims with court-appointed provisional administrator Reinhard Titz. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Hamburg, Insolvenzgericht, Sievekingplatz 1, 20355 Hamburg, 4. Etage, Anbau, Saal B 405, at 10:15 a.m., on April 7, 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: WOHNBAUTEN-AKTIENGESELLSCHAFT REINICKENDORF Holzdamm 28-32, 20099 Hamburg Contact: Christian Bock Reinhard Titz, Administrator Speersort 4/6, 20095 Hamburg Tel: 303010 Fax: 30301226 =========== G R E E C E =========== COMMERCIAL VALUE: High Investment Risk Prompts Fitch's BB Rating ---------------------------------------------------------------- Fitch Ratings assigned Commercial Value AAE an Insurer Financial Strength rating of 'BB' with Stable Outlook. The rating reflects CV's high investment risk, weak risk management and corporate governance. Profitability, although improving, remains low amid challenging conditions in the Greek motor market. Offsetting these negatives are CV's competitive positioning in the Greek market, its diversification across products, the relatively low risk profile of its life products portfolio and its good capital position. Fitch is concerned that CV's investments are highly concentrated, especially in the Aspis Group. Fitch also identified a significant exposure to the financial sector in both the bond and equity portfolios while the relatively high level of investment in real estate is an additional risk factor. CV does not have clear management guidelines on, or quantification of, the mismatching risk between assets and liabilities. There is no dedicated risk management team in place and the company's unit-linked investments are highly concentrated in Aspis Group companies. Although the company's accounts were qualified in 2004, the quantum of the qualification was not in itself material. Fitch considers CV to be well positioned to benefit in the medium to long term from the developments in the Greek life and non-life insurance marketplace. The company's experience in successfully integrating six different businesses is valuable in the context of its strategy of targeted acquisitions. CV operates in most major insurance lines in the Greek market. Fitch views positively the company's balanced exposure to life and non-life risks. Fitch also notes the diversification value of CV's relative strength in marine business since this line is only loosely correlated to the rest of the non-life book. The agency views CV's level of capitalization as good following a EUR12 million subordinated debt issue in 2005. A high proportion of CV's life and health products sales are unit-linked products that carry lower risk. Fitch notes the relatively high level of guarantees on CV's long-term products; however, the agency also considers that the company's charging structure is adequate to mitigate this potential risk. CV's exposure to earthquake risk is significant but Fitch considers that the reinsurance program in place provides an appropriate level of cover. Fitch also assessed the reinsurance program in respect of CV's other lines of business and considers it to be adequate. Fitch notes that the company has managed to reduce expenses and steadily improve earnings since 2003. However, the company's return on equity is expected to remain below 5% (Fitch's calculations) in both 2005 and 2006. Fitch perceives the Greek motor market as a threat to CV's plans to improve its profitability in the short term. A large number of insurers operate in a relatively small but very competitive market. Small, less well managed companies may reduce their rates further in order to keep their market share. Although CV's reserves follow the local GAAP requirement and appear stronger than a number of its peers in the Greek market, the company has only limited data available to set up the non- life reserves and does not use ultimate loss ratio benchmarks to compensate for the lack of internal claims data. As a consequence Fitch considers that there is a degree of uncertainty in the adequacy of non-life reserves. ============= H U N G A R Y ============= MALEV RT: Outlines Capital Hike for Spun-off Units -------------------------------------------------- Troubled flag carrier Malev Hungarian Airlines Rt. will raise the capital of two of its main units, Budapest Business Journal says. Chief Executive Janos Gonci pegged the capital hike at HUF1.7 billion for its ground services unit, Malev Ground Handling, and HUF2 billion for its maintenance division, Aeroplex. Mr. Gonci revealed the units' additional capital would be used to repay their loans to parent company Malev Rt. Shareholders will meet at the end of the month to approve the proposed capital hike. At the end of 2005, Malev spun off its ground services and maintenance activities into two separate units. Headquartered in Budapest, Hungary, Malev Hungarian Airlines Rt. -- http://www.malev.hu/-- trimmed its annual operating deficit by around 60% to HUF2 billion in 2005 from HUF4.9 billion in 2004. Chief Executive Officer Janos Gonci expects a breakeven this year and turnaround profit in 2007. Since the fall of Communism in the country, the government, which owns 99.95% of Malev, has failed to dispose of the airline, which has struggled amid competition from budget airlines. ========= I T A L Y ========= ALITALIA SPA: Projects EUR125 Mln Loss if Volare Purchase Fails --------------------------------------------------------------- National carrier Alitalia S.p.A. estimates a loss of EUR125 million (EUR16 million annually) if they fail to acquire low- cost rival Volare S.p.A. Managing Director Giancarlo Cimoli told the Senate that Alitalia's acquisition of Volare is vital to the carrier's aim to increase its share of domestic traffic. Mr. Cimoli described the takeover as "extremely important, to be obtained at all costs." The takeover would allow Alitalia to resume and end its partnership talks with Air France. The Industry Ministry recently suspended Alitalia's planned takeover after a Roman court forbade the carrier to participate in the auction for Volare. Alitalia offered EUR38 million for Volare, excluding the latter's debts. Bankruptcy Threat As reported in the Troubled Company Reporter-Europe on Jan. 26, 2005, Welfare Minister Roberto Maroni warned that Alitalia might end up in bankruptcy if the current labor unrest refuses to subside. Alitalia's employees have been critical of the group's restructuring plan, despite the recent success of its EUR1.009 billion capital increase, since it entails massive job cuts for the troubled Italian national carrier. 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. About Alitalia Headquartered in Viale A. Marchetti 111, 00148 Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/(Phone: +39 06 6562 2151, Fax: +39 06 6562 4733) -- 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. PARMALAT SPA: Can Pursue EUR10 Billion Suit Against BofA -------------------------------------------------------- Ailing dairy giant Parmalat S.p.A can now proceed with its EUR10 billion legal battle against Bank of America in relation to Europe's largest ever corporate fraud. A U.S. federal district judge ruled that the ailing food group has the right to proceed with its claims against BofA under the provisions of the Racketeer Influenced and Corrupt Organisations (RICO) laws of the United States. Claims under such provisions could be subject to trebling. This claim is additional to the aiding and abetting, breach of fiduciary duty and civil conspiracy claims that the same Judge had already sustained. Under the law, Parmalat could receive compensation up to three times the claimed damages. BofA is one of the banks Parmalat is suing for allegedly abetting its collapse on December 2003. Parmalat clarifies that as a result of this ruling the scope of the claims in the case has been substantially increased and that in the event that anyone of its claims against Bank of America under this civil action were to succeed at trial, the Court would be entitled to award full damage relief in Parmalat's favor. A full-text copy of the Judge's Memorandum Opinion is available for free at: http://www.parmalat.net/en/doc/show_case_doc[1].pdf Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat SpA and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on December 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. PARMALAT SPA: Strikes Lay-off Deal With Workers ----------------------------------------------- Embattled dairy concern Parmalat S.p.A. has struck a vital restructuring deal with its unions, Il Sole 24 Ore says. The deal centers on a 24-month lay-off fund for a maximum of 321 employees. It also includes some internal redeployment, early retirement, outplacement and re-qualifications. Parmalat allocated over EUR44 million for the 2005-2006 restructuring and another EUR20 million for promotion and publicity this year. The program is part of Chief Executive Enrico Bondi's grand plan of returning the group into profitability. Included in the plan are divestment of non-core activities and recovery of billions of euros in investor money. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat SpA and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on December 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. =================== K A Z A K H S T A N =================== INVECO: Declares Insolvency --------------------------- LLC Investment Industry Company Inveco has declared insolvency. The proofs of claim will be accepted at Astana, Pushkina Str. 179-67 on or before March 27, 2006. CONTACT: INVECO Astana, Pushkina Str. 179-67 LUKS OIL: Creditors Have Until March 27 to File Proofs of Claim --------------------------------------------------------------- LLC Luks Oil MK has declared insolvency. The proofs of claim will be accepted at Almaty, Begalina Str. 108 on or before March 27, 2006. The company can be contacted at 8 (3272) 91-75-16. KASKOR MASHZAVOD: Bankruptcy Proceedings Begin ---------------------------------------------- The Taxation Committee and the Specialized Inter-Regional Economic Court of Mangistau region has commenced bankruptcy proceedings against LLC Kaskor Mashzavod Ars on Dec. 9, 2005, Aktau micro district 27, 51. More information can be availed at 8 (3292) 41-22-37. SATURN ABS: Mangistau Authorities Open Bankruptcy Proceedings ------------------------------------------------------------- The Taxation Committee and the Specialized Inter-Regional Economic Court of Mangistau region commenced bankruptcy proceedings against LLC Saturn Abs on Dec. 9, 2005. More information can be availed 8 (3292) 41-22-37. T&T LTD.: Court Sets Proofs of Claim Deadline for March 27 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of the East Kazakhstan region commenced bankruptcy proceedings against LLC T&T Ltd. on Dec. 13, 2005. Proofs of claim will be accepted at East Kazakhstan region, Ust-Kamenogorsk, Myzy Str. 2/1 on or before March 27, 2006. The company is available by phone at 8(3232) 24-06-50. ================= L I T H U A N I A ================= AB BANKAS: Fitch Lifts Individual Rating to 'D' ----------------------------------------------- Fitch Ratings upgraded Lithuania-based AB Bankas NORD/LB Lietuva's Individual rating to 'D' from 'D/E'. At the same time, Fitch has changed Long-term rating Outlook to Positive from Stable. Other ratings involved are: (a) Long term affirmed at 'A-'; (b) Short-term at 'F2'; and (c) Support at '1'. The upgrade in the Individual rating reflects the improving profitability seen at NORD/LBL combined with the renewed commercial focus of the bank following three years of restructuring. The Individual rating also reflects the benefits NORD/LBL should be able to receive from the expertise of its new shareholder, DnB NOR of Norway. "Since the acquisition by NORD/LB in 2002, NORD/LBL has undergone significant restructuring," says Tim Beck, Director in Fitch's Financial Institutions team. DnB NOR and NORD/LB jointly own DnB NORD, which controls NORD/LBL. "This program has cut costs, upgraded risk management techniques and improved the product offering. This has begun to show benefits through increased business activity and profitability, though Fitch still views profitability as rather weak," Mr. Beck adds. The Outlook is changed to Positive to reflect that on DnB Nor's rating, following the transfer of NORD/LBL to DnB NORD in December. It also considers the likelihood that NORD/LBL's Long-term rating could be upgraded should cooperation and integration with DnB NOR continue. NORD/LBL's Long-term, Short- term and Support ratings reflect the extremely high potential support the bank can receive from DnB NOR. NORD/LB acquired NORD/LBL in 2002. In November 2005 NORD/LB and DnB NOR established a joint venture, DnB NORD, to serve the Danish, Finnish, Estonian, Latvian, Lithuanian and Polish markets. DnB NORD is based in Denmark, 51%-owned by DnB NOR and 49% by NORD/LB. In December NORD/LBL was transferred to DnB NORD. ===================== N E T H E R L A N D S ===================== IFCO SYSTEMS: S&P Raises Credit Rating to BB- on Improved Biz ------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on IFCO Systems N.V., the Netherlands- based provider of reusable plastic containers and pallet services, to 'BB-' from 'B+' reflecting the strong improvement in IFCO's operating performance. The outlook is stable. At the same time, Standard & Poor's raised its senior secured debt rating on IFCO to 'B' from 'B-'. "Revenues and margins have increased in IFCO's pallet-management services business, where the group has strengthened its market position in the past 12 months," said Standard & Poor's credit analyst Vanessa Brathwaite. "This is despite higher input costs including significantly higher fuel and transportation costs." The group has also increased revenues in its RPC business, where IFCO appears to be reaping the benefits of its position as Europe's largest independent supplier of RPCs for the transport of fruit and vegetables. The number of journeys the RPCs make in this segment has more than doubled since 2004, boosted by higher penetration among the existing customer base and higher volumes in the U.S. business. In addition, breakage rates, which had been a problem, have improved significantly following the upgrade of the group's RPC crate pool in Europe. The improvements in the group's operations have allowed IFCO both to fund the upgrade of its European RPC pool (now 90% complete) from internally generated cash flows and improve its credit- protection measures. Standard & Poor's expects the improvement in IFCO's operating performance to be sustained. Although the growth of capital expenditure is expected to continue to consume the majority of cash flow IFCO generates in the short-term, credit metrics should still remain adequate for the ratings. Further upside potential for the ratings would primarily be related to a stronger-than-expected financial profile. Standard & Poor's will continue to monitor IFCO's financial policy, particularly with regard to dividends and the group's appetite to increase debt in the medium term. IFCO would need to generate free operating cash flow to boost liquidity, because its liquidity position currently remains constrained by covenants that prohibit the group increasing its available credit lines. Although the ratings allow for a modest debt increase, they do not factor in any significant increase, which could lead to deterioration in credit ratios below a level adequate for the ratings. To maintain the ratings, IFCO is expected to keep FFO to lease-adjusted net debt at more than 20%. ROYAL SHELL: Inks New MoU for Joint Projects with Sonatrach ----------------------------------------------------------- Royal Dutch Shell PLC and Sonatrach, the Algerian national energy company, signed a Memorandum of Understanding covering multiple business initiatives, both in Algeria and internationally on Feb. 6. Areas of cooperation will include investigating the commercial and technical feasibility for joint developments in Algeria, including upstream development projects, LNG, products and marketing and investigating and evaluating possible asset swap transactions for upstream exploration, development and appraisal projects. The agreement was signed in the presence of Mohamed Mezaine, PDG Sonatrach and on behalf of Shell by Catherine Tanna, Executive Vice President, Africa at a signing ceremony in Algiers. "This agreement confirms Shell's interest in investing in Algeria and the growing relationship between our two companies. In this agreement, Shell sees an important opportunity to build on our current activities and relationships in the country by developing new projects and initiatives jointly with Sonatrach, in Algeria and internationally," said Ms. Tanna. 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. ROYAL SHELL: Redeems 500,000 'A' Shares for Cancellation -------------------------------------------------------- Royal Dutch Shell PLC purchased 350,000 'A' Shares for cancellation at EUR27.16 per share on Feb. 6. It further purchased 150,000 'A' Shares for cancellation at 1,857.50 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell PLC will be 3,924,362,974. 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$500 million. 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. 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 =========== BAKALINSKIY: Insolvency Manager Takes Helm ------------------------------------------ The Arbitration Court of Bashkortostan republic commenced bankruptcy proceedings against Bakalinskiy after finding the company insolvent. The case is docketed as A07-7573/05-G-FLE. Mr. S. Trofimov has been appointed insolvency manager. Creditors have until March 14, 2006, to submit their proofs of claim to 450057, Russia, Bashkortostan republic, Ufa, Oktyabrskoy Revplyutsii Str. 65. CONTACT: BAKALINSKIY 452660, Russia, Bashkortostan republic, Bakalinskiy region, Penkozavod S. TROFIMOV Insolvency Manager 450057, Russia, Bashkortostan republic, Ufa, Oktyabrskoy Revplyutsii Str. 65 DAVLEKANOVSKIY BAKERY: Claims Filing Period Ends Next Week ---------------------------------------------------------- The Arbitration Court of Bashkortostan republic commenced bankruptcy supervision on open joint stock company Davlekanovskiy Bakery. The case is docketed as A07-35783/05-G- ADM. Mr. V. Plaksov has been appointed temporary insolvency manager. Creditors have until Feb. 14, 2006, to submit their proofs of claim to 450006, Russia, Bashkortostan republic, Ufa, Tsuryupy Str. 153, Rooms 8-9. CONTACT: DAVLEKANOVSKIY BAKERY 453401, Russia, Bashkortostan republic, Davlekanovo, Voroshilova Str. 2 V. PALAKSOV Temporary Insolvency Manager 450006, Russia, Bashkortostan republic, Ufa, Tsuryupy Str. 153, Rooms 8-9 Tel: 8-917-34-222-17 DEBESSKIY AGRO-COMBINE: Under Bankruptcy Supervision ---------------------------------------------------- The Arbitration Court of Udmurtiya republic has commenced bankruptcy supervision on open joint stock company Debesskiy Agro-Combine (TIN 1807000057). The case is docketed as A71- 16995/2005-G26. Mr. V. Bayazov has been appointed temporary insolvency manager. Creditors have until Feb. 14, 2006 to submit their proofs of claim to 426054, Russia, Udmurtiya republic, Izhevsk, 30 Let Pobedy Str. 64-81. CONTACT: DEBESSKIY AGRO-COMBINE Russia, Udmurtiya republic, Debesskiy region, Debesy V. BAYAZOV Temporary Insolvency Manager 426054, Russia, Udmurtiya republic, Izhevsk, 30 Let Pobedy Str. 64-81 KOSHKINSKOYE: Samara Court Brings In Insolvency Manager ------------------------------------------------------- The Arbitration Court of Samara region has commenced bankruptcy supervision on open joint stock company Koshkinskoye (TIN 6374006143). The case is docketed as A55-13926/05-38. Mr. M. Bagno has been appointed temporary insolvency manager. Creditors have until Feb. 14, 2006, to submit their proofs of claim to 460001, Russia, Orenburg region, Chkalova Str. 32, Apartment 253. CONTACT: KOSHKINSKOYE Russia, Samara region, Koshkinskiy region, Pogruznaya St. M. BAGNO Temporary Insolvency Manager 460001, Russia, Orenburg region, Chkalova Str. 32, Apartment 253 KRASNOSELSKUP-OIL-GAS-SERVICE: Succumbs to Bankruptcy ----------------------------------------------------- The Arbitration Court of Yamalo-Nenetskiy autonomous region commenced bankruptcy proceedings against Krasnoselskup-Oil-Gas- Service after finding the open joint stock company insolvent. The case is docketed as A81-730/2005. Mr. E. Ospanov has been appointed insolvency manager. Creditors have until Feb. 17, 2006, to submit their proofs of claim to 625046, Russia, Tyumen region, Motorostroiteley Str. 14, Building 1, Office 1. CONTACT: KRASNOSELSKUP-OIL-GAS-SERVICE: Russia, Yamalo-Nenetskiy autonomous region, Krasnoselkup E. OSPANOV Insolvency Manager 625046, Russia, Tyumen region, Motorostroiteley Str. 14, Building 1, Office 1 KUYUR-GAS-SEL-ENERGO: Bankruptcy Hearing Set March 13 ----------------------------------------------------- The Arbitration Court of Bashkortostan republic has commenced bankruptcy supervision on municipal unitary enterprise Kuyur- Gas-Sel-Energo (TIN 0233004329). The case is docketed as A07- 50344/05-G-KhRM. Mr. K. Shamigulov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to: (a) KUYUR-GAS-SEL-ENERGO 453360, Russia, Bashkortostan republic, Kumertau, Babevskaya Str. 24 (b) K. SHAMIGULOV Temporary Insolvency Manager 453360, Russia, Bashkortostan republic, Kumertau, Babevskaya Str. 24 (c) ARBITRATION COURT OF BASHKORTOSTAN REPUBLIC 450078, Russia, Bashkortostan republic, Ufa, Oktyabrskoy Revolyutsii Str. 63a A hearing will take place on March 13, 2006. OAO GAZPROM: Sets June AGM to Elect Board & Audit Members --------------------------------------------------------- OAO Gazprom will hold its Annual General Shareholders' Meeting on June 30, 2006, in Moscow. The list of shareholders entitled to participate in the Shareholders' Meeting will be drawn up on the basis of the OAO Gazprom shareholders' register as of the end of the operation day of May 12, 2006. The Board also approved a list of nominees for Gazprom's Board of Directors and Audit Commission, to be voted at the Shareholders' Meeting. The Board will discuss eight issues in the shareholders' meeting, including: -- approval of the Annual Report and accounting statements (including profit & loss accounts); -- approval of the distribution of profit based on the results of 2005; -- the amount of, time for and form of payment of annual dividend; -- election of members of the Board of Directors and Audit Commission; -- approval of auditor; -- introduction of amendments and additions to the Charter; -- remuneration of the members of the Board of Directors; and -- Audit. About the Company Headquartered in Moscow, Russia, OAO Gazprom -- http://www.gazprom.ru/-- produces 94% of the country's natural gas, controls 25% of the world's reserves, and is also the world's largest gas producer. It focuses on gas exploration, processing, transport, and marketing. * * * As reported in the Troubled Company Reporter-Europe on Jan. 18, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit rating on OAO Gazprom to 'BB+' from 'BB', in view of an increase in state support, and following the $7 billion purchase of the company's treasury stock by the Russian state-owned special-purpose vehicle Rosneftegas. The rating upgrade reflects the cash payment from Rosneftegas, which, together with higher export prices, has allowed Gazprom to limit increases in year-end parent debt to about US$23 billion (closer to US$28-US$30 billion including subsidiary debt). In particular, this helped the company to prepay US$8 billion of the US$13 billion loan raised to finance the acquisition of Sibneft by the end of 2005. The agency also noted that Gazprom remains subject to general political and emerging market risks related to Russia. The unpredictable nature of Russian government policy, potential investment mandates and still very low regulated domestic gas prices (averaging US$36/mcm in 2005), together with substantial financial debt levels, remain key constraints on the rating on Gazprom. At June 30, 2005, Gazprom had US$22.7 billion of consolidated on-balance-sheet debt, US$2.7 billion in guarantees, and about US$1 billion of postretirement liabilities. OAO MEGAFON: Fitch Upgrades US$375 Million Bond Rating to 'BB' -------------------------------------------------------------- Fitch Ratings raised OAO MegaFon's Senior Unsecured foreign currency rating to 'BB' from 'BB-'. The Outlook is Stable. Its Short-term rating is affirmed at 'B'. Other ratings involved are: (a) US$375 million bond issued by MegaFon S.A. and guaranteed by OAO Megafon rose to 'BB' from 'BB-'; (b) National Senior Unsecured rating upgraded to 'AA' from 'AA-' with Outlook, Stable; and (c) Domestic RUB3 billion bond: affirmed at 'AA' from 'AA-'. "The upgrade reflects Megafon's strong financial performance with its EBITDA margin improving to over 44% in 2005 from 42% in 2004. The company has also moved closer to a cash generative stage of its business development," says Nikolai Lukashevich, director with Fitch's TMT team. The ratings take into account that Megafon is an established nationwide mobile operator in Russia rapidly increasing cellular coverage in its licensed territories. Its subscriber base and revenue have been rapidly growing, by 67% in 2005, following a 119% increase in the year before while revenue was up 82% in 2004. Growth is likely to extend into 2006 and beyond, based on the continued expansion of the Russian mobile market. Although Megafon's free cash flow was negative in 2005, it significantly narrowed as a percentage of revenues and earnings and is expected to almost break even in 2006 if the company manages to successfully achieve its business goals. Its subscriber market share has been relatively stable, showing only minor losses throughout 2005 although Fitch notes that this is a rather volatile and imprecise indicator. Instead, the agency focuses on Megafon's share of the three largest nationwide operators' cumulative revenues, which substantially increased over the last 18 months to 25.5% in Q205 from 20.6% in Q104. Megafon managed to achieve the highest average revenue per user of the "Big Three" operators, a result of its focus on the middle market and conservative definition of active subscribers. Fitch notes, however, that such narrow focus may deprive Megafon of valuable business opportunities offered by the mass market segment. The company continues to lag its nationwide competitors in terms of network coverage and capacity because of its relatively late market entry, although it has substantially reduced the gap with its peers. Megafon's major shareholders continue to be in dispute over a blocking 25.1% equity stake in the company. However, this did not preclude the board from taking strategic decisions and has not led to operational disruptions. Although this dispute bars Megafon from access to new equity capital, this has become less of a concern as internally generated cash is sufficient to cover capital expenditure requirements, while external financing needs are rapidly dwindling. Megafon's leverage is moderate in absolute terms, its net debt/EBITDA ratio was at 1.9x at end-2004 and is likely to have somewhat declined at end-2005 as EBITDA grew faster than debt in 2005. 2006 is likely to bring a significant ease in leverage metrics, a result of growing EBITDA and a stronger cash generation that will leave net debt unchanged. Fitch expects tangible de-leveraging from Megafon, which also underpins the upgrade. In 2005, Megafon extended the maturity of shareholder loans and subordinated them to some unsecured creditors, most notably, Eurobond holders. The company renegotiated the terms of financing with export credit agencies and its major creditors, releasing security and easing financial covenants, which significantly enhanced Megafon's financial flexibility and alleviated short-term refinancing risks. At end-2004 the company's maturity profile significantly improved with the share of short-term debt declining to 22% from 36% at end-2003. A further decline is unlikely, as the company is not planning to take on more long-term loans in preparation for debt reduction after 2007. REM-STROY-SERVICE: Undergoes Bankruptcy Supervision Procedure ------------------------------------------------------------- The Arbitration Court of Kabardino Balkariya republic has commenced bankruptcy supervision on close joint stock company Rem-Stroy-Service. The case is docketed as A20-7743/05. Mr. E. Katyukha has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 360000, Russia, Kabardino Balkariya republic, Nalchik, Lermontova Str. 54, Room 203. CONTACT: REM-STROY-SERVICE Russia, Kabardino Balkariya republic, Prokhladnyj, Kavkazskaya Str. 2-6 E. KATYUKHA Temporary Insolvency Manager 360000, Russia, Kabardino Balkariya republic, Nalchik, Lermontova Str. 54, Room 203 RESEARCH INSTITUTE: Udmurtiya Court Opens Bankruptcy Proceedings ---------------------------------------------------------------- The Arbitration Court of Udmurtiya republic commenced bankruptcy proceedings against Institute Of Metallurgic Technologies (TIN 1832009303) after finding the open joint stock company insolvent. The case is docketed as A71-68/2005-G21. Mr. A. Konovalov has been appointed insolvency manager. Creditors may submit their proofs of claim to 426010, Russia, Udmurtiya republic, Izhevsk, Azina Str. 2. CONTACT: RESEARCH INSTITUTE OF METALLURGIC TECHNOLOGIES 426010, Russia, Udmurtiya republic, Izhevsk, Azina Str. 2 A. KONOVALOV Insolvency Manager 426010, Russia, Udmurtiya republic, Izhevsk, Azina Str. 2 SEVER-GAS-SPETS-STROY: Declared Insolvent ----------------------------------------- The Arbitration Court of Yamalo-Nenetskiy autonomous region commenced bankruptcy proceedings against Sever-Gas-Spets-Story after finding the close joint stock company insolvent. The case is docketed as A81-2782/2005. Mr. V. Pochuev has been appointed insolvency manager. Creditors may submit their proofs of claim to 610014, Russia, Kirov region, Protrebkooperatsii Str. 6. CONTACT: SEVER-GAS-SPETS-STROY 629730, Russia, Yamalo-Nenetskiy autonomous region, Nadym, 8th Proezd V. POCHUEV Insolvency Manager 610014, Russia, Kirov region, Protrebkooperatsii Str. 6 VYROVSKOYE: Deadline for Proofs of Claim Set Feb. 14 ---------------------------------------------------- The Arbitration Court of Ulyanovsk region has commenced bankruptcy supervision on open joint stock company Vyrovskoye. The case is docketed as A72-6953/05-20/3-B. Mr. V. Nikishkin has been appointed temporary insolvency manager. Creditors have until Feb. 14, 2006, to submit their proofs of claim to 433870, Russia, Ulyanovsk region, Novospasskoye, Post User Box 46. A hearing will take place on March 2, 2006, 11:45 a.m. CONTACT: VYROVSKOYE Russia, Ulyanovsk region, Mayninskiy region, Vyry V. NIKISHKIN Temporary Insolvency Manager 433870, Russia, Ulyanovsk region, Novospasskoye, Post User Box 46 ============= U K R A I N E ============= ANETA: Under Bankruptcy Supervision in Kyiv ------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy supervision procedure on LLC Aneta (code EDRPOU 32822281) on Dec. 2, 2005. The case is docketed as 43/898. Mr. E. Kondra has been appointed temporary insolvency manager. CONTACT: ANETA Ukraine, Kyiv region, 40-richya Zhovtnya Avenue 100/2 Mr. E. Kondra Temporary Insolvency Manager 01032, Ukraine, Kyiv region, a/b 43 ONOMIC COURT OF KYIV REGION 030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B ARMATURE-INSULATOR: Court Rules on Bankruptcy --------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against Armature-Insulator Plant (code EDRPOU 31279844) on Dec. 1, 2005, after finding the close joint stock company insolvent. The case is docketed as 23/842-b. CONTACT: ARMATURE-INSULATOR PLANT Ukraine, Kyiv region, Chornovol Str. 10-A ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B AUTO ENGINEERING: Court Names Oleg Bliznyuk as Liquidator --------------------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against LLC Auto Engineering Group (code EDRPOU 32486992) on Dec. 14, 2005, after finding the limited liability company insolvent. The case is docketed as 15/867-b. Mr. Oleg Bliznyuk has been appointed liquidator/insolvency manager. The company holds account number 26004301302018 at Rajffajzenbank, Mihajlivske branch, MFO 300528. CONTACT: AUTO ENGINEERING GROUP Ukraine, Kyiv region, 40-richya Zhovtnya Avenue 100/2 Mr. Oleg Bliznyuk Liquidator/Insolvency Manager Ukraine, Donetsk region, Kutuzov Str. 19/83 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B HIMRESURS: Succumbs to Bankruptcy Proceedings in Lugansk -------------------------------------------------------- The Economic Court of Lugansk region commenced bankruptcy supervision procedure on Production-Commercial Enterprise Himresurs (code EDRPOU 30714413). The case is docketed as 20/106 b. Mr. Oleksandr Prosolupov has been appointed temporary insolvency manager. CONTACT: HIMRESURS 93000, Ukraine, Lugansk region, Rubizhne, Vizvoliteliv Str. 75/68 Mr. Prosolupov Oleksandr Temporary Insolvency Manager 91048, Ukraine, Lugansk region, Ushakov Str. 9-a ECONOMIC COURT OF LUGANSK REGION 91000, Ukraine, Lugansk region, Geroiv VVV Square 3a KRASNOPEREKOPSKIJ METAL: Melts Under Bankruptcy ----------------------------------------------- The Economic Court of AR Krym region commenced bankruptcy supervision procedure on OJSC Krasnoperekopskij Reinforced Metal Products Plant (code EDRPOU 012669974). The case is docketed as 2-20/16474-2005. Larisa Petuhova has been appointed temporary insolvency manager. CONTACT: KRASNOPEREKOPSKIJ REINFORCED METAL PRODUCTS PLANT 96012, Ukraine, AR Krym region, Armyansk, Pivnichna promzona Larisa Petuhova Temporary Insolvency Manager 95022, Ukraine, AR Krym region, Simferopol, Pobedi Avenue 235-a/3 Phone: (0652) 51-57-43 THE ECONOMIC COURT OF AR KRYM REGION 95000, Ukraine, AR Krym region, Simferopol, Karl Marks Str. 18 OBERONBUDPROM: Larisa Slyusarenko Named to Liquidate Assets ----------------------------------------------------------- The Economic Court of Odessa region commenced bankruptcy proceedings against Oberonbudprom (code EDRPOU 33138221) on Dec. 13, 2005, after finding the limited liability company insolvent. The case is docketed as 2/251-05-10984. Ms. Larisa Slyusarenko has been appointed liquidator/insolvency manager. CONTACT: OBERONBUDPROM 65031, Ukraine, Odessa region, Novomoskovska Road 21/1 Ms. Larisa Slyusarenko Liquidator/Insolvency Manager 65031, Ukraine, Odessa region, Novomoskovska Road 21/1 ECONOMIC COURT OF ODESSA REGION 65032, Ukraine, Odessa region, Shevchenko Avenue 4 SAPFIR: Court Declares Bankruptcy for Sevastopol Firm ----------------------------------------------------- The Economic Court of Sevastopol commenced bankruptcy proceedings against Private Enterprise Sapfir (code EDRPOU 13788395) on Dec. 19, 2005, after finding the limited liability company insolvent. The case is docketed as 20-7/375. Mr. Atik Drogajtsev has been appointed liquidator/insolvency manager. CONTACT: SAPFIR 99053, Ukraine, AR Krym region, Sevastopol, Vakulechuk Str. 31 Mr. Atik Drogajtsev Liquidator/Insolvency Manager 99059, Ukraine, AR Krym region, Sevastopol, P. Korchagin Str. 34/22 ECONOMIC COURT OF SEVASTOPOL 99011, AR Krym region, Sevastopol, Pavlichenko Str. 5 TEHPROMTORG: Court Begins Bankruptcy Supervision ------------------------------------------------ The Economic Court of Dnipropetrovsk region commenced bankruptcy supervision procedure on Private Enterprise Tehpromtorg (code EDRPOU 30316277). The case is docketed as B 24/289/05. Mr. Sergij Zhukov has been appointed temporary insolvency manager. CONTACT: TEHPROMTORG 49000, Ukraine, Dnipropetrovsk region, Yangel Str. 7/151 Mr. Sergij Zhukov Temporary Insolvency Manager 49055, Ukraine, Dnipropetrovsk region, a/b 3422 ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a =========================== U N I T E D K I N G D O M =========================== 24 HOUR: Appoints Liquidators to Wind Up Assets ----------------------------------------------- Members of 24 Hour Sportslife Limited appointed John W Lewis of J W Lewis Insolvency Services Limited 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 its business. The wind up resolution was passed on Jan. 16, 2006, during an Extraordinary General Meeting held in Bristol. Creditors are required 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 John W. Lewis of Suite B1, White House Business Centre, Forest Road, Kingswood, Bristol BS15 8NH, by Feb. 28, 2006. CONTACT: 24 HOUR SPORTSLIFE LIMITED 14 Queen Elizabeth Gate 50 Queens Road Weybridge, Surrey KT13 0AZ J W LEWIS & CO Suite B1 White House Business Centre Forest Road Kingswood Bristol Avon BS15 8NH Tel: 0117 947 5747 Fax: 0117 947 5745 A1 STRETCH: Limo-for-Hire Business Up for Sale --------------------------------------------- Administrator Kevin T. Brown FCA of Marriott Palmer Brown is offering Al Stretch Limos Limited for sale as a going concern. The limousine rental business sits on leasehold premises in Hemel Hempstead, Hertfordshire, and is established for over six years. The company reports approximately GBP4 million in annual turnover. CONTACT: MARRIOTT PALMER BROWN LIMITED 113-115 George Lane London E18 I AB Phone: 020 8505 3235 Fax: 020 8505 3289 BOLTON AND FLEET: Taps Begbies Traynor to Administer Assets ----------------------------------------------------------- Stephen L. Conn and David P. Appleby of Begbies Traynor were appointed administrators of Bolton And Fleet Limited (Company No 01160265) on Jan. 24. Its registered office is at Trafford House, Platt Fold Street, Leigh WN7 1JN. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. CONTACT: BOLTON AND FLEET LTD Trafford House, Platt Fold Street, Leigh, Lancashire WN7 1JH BRITISH ENERGY: To Unveil Third Quarter Results on Feb. 24 ---------------------------------------------------------- British Energy Group PLC will disclose its results for the third quarter ended Jan. 1, 2006, on Feb. 24, 2006. Management will host a conference call and webcast for analysts, institutional investors and bondholders at 9:15 a.m. on that date. Dial-in facilities can be accessed by dialing: UK dial in: 0845 113 0049 International dial in: +44 (0) 1452 542 303 US dial in: 1 866 389 9778 There will be a replay facility for 7 days: UK local rate no: 0845 245 5205 UK International no: +44 (0) 1452 550 000 UK PIN (access) no: 5011170# Management will host another conference call for U.S. analysts, institutional investors and bondholders at 2:00 p.m. on Feb. 24, 2006. The conference can be accessed by dialing: UK dial in: 0845 146 2010 International dial in: +44 (0) 1452 542 304 US dial in: 1 866 389 9780 There will be a replay facility for 7 days: UK local rate no: 0845 245 5205 UK International no: +44 (0) 1452 550 000 UK PIN (access) no: 5012889# About the Company Headquartered in South Lanarkshire, British Energy -- http://www.british-energy.com/-- is U.K.'s largest power generator, producing 20% of the country's power through eight nuclear facilities in Scotland and England (total capacity is 9,600 MW). British Energy also owns the 2,000-MW coal-fired plant (Eggborough) in England. The company emerged as British Energy Limited with a new holding company, British Energy group PLC, after the court approved its scheme of arrangement in January. Under the program, existing creditors received 97.5% of equity in the new group. * * * In January 2005, Moody's Investors Service assigned a Ba2 rating to British Energy's long term corporate family credit rating. At the same time, Standard & Poor's issued BB+ ratings to the company's Long Term Foreign & Local Issuer Credit. In October 2005, Fitch raised the company's senior unsecured debt rating to BB+ from BB-. CARLTON MAINTENANCE: Hires Begbies Traynor Administrator -------------------------------------------------------- David Moore and Donald Bailey of Begbies Traynor were appointed administrators of Carlton Maintenance Services Limited (Company No 3637281) on Jan. 19. Its registered office is at 309 Corporation Road, Birkenhead, Merseyside CH41 1HB. The company offers general construction services. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. CONTACT: CARLTON MAINTENANCE SERVICES LTD Commercial House, New Chester Road, Birkenhead, Wirral CH41 9BN Tel: 01516470934 CHARGECHECK LTD.: Administrator Begins Asset Sale Offer ------------------------------------------------------- Administrator Eileen Sale of Sale Smith & Co. Ltd. offers for sale the business and assets of Chargecheck Ltd. (trading as Clssic Kitchens and Built In Appliances). The assets include two leasehold showrooms (with appliances), a warehouse and other facilities. It reports more than GBP2 million in annual turnover. CONTACT: SALE SMITH & CO. LTD. 30 Derby Street, Ormskirk, Lancashire L39 2BY Contact: Bill Brandon Phone: 01695 585440 Fax: 01695 585450 ECG GROUP: Names Joint Receivers from KPMG Due to Cash Crisis ------------------------------------------------------------- ECG Group Ltd. appointed KPMG Corporate Recovery's Blair Nimmo and Tony Friar as joint receivers following a request by the company's directors. ECG has enjoyed rapid growth but experienced problems with certain contracts, particularly down south, leading to significant trading losses and cash flow difficulties, which unfortunately resulted in the business becoming unsustainable. "The business had grown substantially over the last two years to an annualized turnover level of GPB45 million; however, the recent discovery of a number of problematic contracts where substantial losses were continuing to be incurred, left the Directors with no choice but to request the appointment of receivers," head of KPMG Corporate Recovery in Scotland, Blair Nimmo, said. "While it is regrettable, the current financial situation means that the receivers have no option but to make 224 redundancies with immediate effect." The remaining workforce of 33 employees will continue to assist the receivers in realizing the maximum value from the business and its assets. "It is disappointing that we have not had the time to consider some form of restructuring of the business aimed at avoiding receivership, but given the current circumstances we welcome any party who may have an interest in acquiring the business or any of its assets to make early contact with us," Mr. Nimmo added. To clarify, ECG Building Maintenance Ltd. continues to trade as normal and is not affected by the receivership of ECG Group Ltd. Headquartered in Blantyre (Glasgow), ECG Group Ltd installs heating and ventilation systems to both the public and private sector. It was established in 1972 by Eric Graham and employs 257 staff across five sites in the UK. CONTACT: Tony Friar Tel: 0141 226 5511 Blair Nimmo, Head of Corporate Recovery KPMG Scotland Tel: 0131 527 6672 Mobile: 07774 617582 Allan Barr - PR Manager KPMG Scotland Tel: 0141 300 5896 Mobile: 07796 181 043 E-mail: allan.barr@kpmg.co.uk ELISION TECHNOLOGY: Debt Claims Filing Period Ends March 17 ----------------------------------------------------------- Elision Technology Limited voluntarily liquidated its assets after mounting liabilities prompted members to vote for the wind up of the company's operations during a meeting held on Jan. 25. Andrew Conquest of Grant Thornton UK LLP in London was appointed liquidator. Creditors are required on or before March 17, 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 Andrew Conquest. About Grant Thornton Headquartered in London, Grant Thornton UK LLP -- http://www.grant-thornton.co.uk/-- is the UK member of Grant Thornton International, one of the world's leading international organisations of independently owned and managed accounting and consulting firms. These firms provide a comprehensive range of business advisory services from around 540 offices in over 110 countries worldwide. CONTACT: ELISION TECHNOLOGY LTD Catherine House, Boundary Way, Hemel Hempstead, Hertfordshire HP2 7RP Tel: 01442246660 ESTAMAN PROPERTIES: Creditors Have Until Feb. 24 to File Claims --------------------------------------------------------------- Estaman Properties Limited decided to liquidate its assets after members voted to wind up the company's operations during an Extraordinary General Meeting on Jan. 13, in London. A. Rogers, chairman of Estaman Properties Limited, disclose that the company cannot continue its business due to surmounting debts. William John Turner and David John Oprey of Chantrey Vellacott were appointed joint liquidators. Creditors are required on or before Feb. 24, 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 David John Oprey. About Chantrey Vellacot Headquartered in Hove, East Sussex, Chantrey Vellacott DFK -- http://www.cvdfk.com/-- is one of the oldest firms of chartered accountants in the United Kingdom. It provides accounting, taxation and related advisory services. CONTACT: ESTAMAN PROPERTIES LIMITED 32 Great James Street London WC1N 3HB FOODOLOGY UK: Administrators From KPMG Takes Over Helm ------------------------------------------------------ Richard James Philpott and Allan Watson Graham of KPMG LLP were appointed administrators of Foodology UK Ltd (Company No 4757094) on Jan. 25. CONTACT: FOODOLOGY UK LTD Derby Road Business Park Clay Cross, Chesterfield Derbyshire S45 9AG Tel: (01246) 250626 Fax: (01246) 250638 KPMG LLP St Nicholas House Park Row Nottingham Nottinghamshire NG1 6FQ Tel: 0115 935 3535 Fax: 0115 935 3500 GLOBAL NEWS: Begins Liquidation Proceedings ------------------------------------------- L. Mastey, chairman of Global News Media Plc, informs that the special, ordinary and extraordinary resolutions to wind up the company were passed at an EGM held on Dec. 30 at Maitre Azoulay, 2 Rue de Sontay, 75016 Paris, France. Norman Cowan and Mark Pearce Riley of Wilder Coe, 12th Floor, Southgate House, St George's Way, Stevenage SG1 1HG were appointed joint liquidators. Creditors are required on or before March 14, 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 Norman Cowan. CONTACT: GLOBAL NEWS MEDIA PLC 4th Floor Clements House 14-18 Gresham Street London EC2V 7NN WILDER COE 12th Floor Southgate House St. George's Way Stevenage Hertfordshire SG1 1HG Tel: 01438 847 200 Fax: 01438 847 150 E-mail: insol@wildercoe.co.uk HENLEY OFFICES: Appoints Administrators from Baker Tilly -------------------------------------------------------- N. Millar and A. Allen of Baker Tillly were appointed administrators of Henley Offices Limited (Company No 04286739) on Jan. 26. Baker Tilly -- http://www.bakertilly.co.uk/-- is a leading independent firm of chartered accountants and business advisers in the United Kingdom. The firm's annual fee income is over GBP168 million and is part of a global network which has 122 member firms in 85 countries as an independent member of Baker Tilly International. Headquartered in Ipswich, Henley Offices Ltd -- http://www.henleyoffices.com/-- was launched in 2001 to create a new genre of personal "workspaces" specifically for professionals who work at home. Its showroom is located at the Business Design Centre, Islington, London N1. LONDON DEMOLITION: In Administrative Receivership ------------------------------------------------- Fairfax Gerrard Holdings Limited appointed Barry Peter Knights of Knights & Company and Kevin James Wilson Weir of Smith & Williamson joint administrative receivers of London Demolition Company Limited (Reg No 02838858) on Jan. 27. CONTACT: LONDON DEMOLITION COMPANY LTD Rear of 65 Church Street Chalvey, Slough Berkshire SL1 2NN Tel: 01753 528466 KNIGHTS & CO 1st Floor Milford House 43-45 Milford Street Salisbury Wiltshire SP1 2BP Tel: 01722 330688 Fax: 01722 414546 SMITH & WILLIAMSON LIMITED Imperial House, 18-21 Kings Park Road, Southampton SO15 2AT E-mail: GP4@smith.williamson.co.uk NEIL GRINNALL: Creditors Meeting Set Tomorrow --------------------------------------------- Creditors of Neil Grinnall Properties Limited will meet on Feb. 9, 2006, 12 noon at Galton Way, Hadzor, Droitwich Spa, Worcestershire WR9 7ER. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to N. Price, joint administrative receiver of Moore Stephens not later than 12 noon, Feb. 8, 2006. CONTACT: NEIL GRINNALL PROPERTIES LTD The Grinnall Business Centre, Sandy Lane, Stourport-On-Severn, Worcestershire DY13 9QB Tel: 01299-827767 MOORE STEPHENS CORPORATE RECOVERY Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB Tel: 0121 233 2557 Fax: 0121 200 2558 E-mails: nigel.price@moorestephens.com mark.bowen@moorestephens.co.uk Web site: http://www.moorestephens.co.uk/ MOORE STEPHENS 1 Snow Hill, London EC1A 2EN Tel: 020 7334 9191 Fax: 020 7248 3408 E-mail: david.rolph@moorestephens.com Web site: http://www.moorestephens.co.uk/ NIGHTCLUB COMPANY: Appoints Joint Administrators from PwC --------------------------------------------------------- D. G. Hargrave and M. J. Jervis of PricewaterhouseCoopers LLP were appointed joint administrators of The Nightclub Company (UK) Limited (Company No 05021267) on Dec. 22. Its registered office is at Meridian House, Meridian East, Meridian Business Park, Leicester LE19 1WZ. The company operates nightclubs in the United Kingdom. About PwC PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/-- provides, among others, auditing services, accounting advice, tax compliance and consulting, financial consulting and advisory services to clients in a variety of industries. SCAFFOLD IT: In Administrative Receivership ------------------------------------------- William John Bradford appointed G. W. Rhodes and I. P. Sykes of Begbies Traynor joint administrative receivers of Scaffold IT Limited (Reg No 04050663) on Jan. 20. The company sells scaffolding equipment. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. CONTACT: SCAFFOLD IT LTD Springfield Rd, Brighton BN1 6DG Tel: 01273 509966 SKYEPHARMA PLC: Fidelity Int'l. Cuts Equity Stake to 5.95% ---------------------------------------------------------- Fidelity International Limited and its direct and indirect subsidiaries, being non-beneficial holders, decreased their holding in SkyePharma plc by 7,616,500 ordinary shares since their last filing on Jan. 23, 2006. Fidelity's revised holding amounts to 44,884,745 ordinary shares of 10 pence each, representing 5.95% of the issued share capital of the Company. About the Company Headquartered in London, SkyePharma PLC -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world leading drug delivery technologies that provide easier-to-use and more effective drug formulations. In May, it reported net loss of GBP24.3 million for 2004, a decrease of 44% compared with GBP43.2 million in 2003. * * * On Nov. 17, the Board of SkyePharma disclosed that following an unsolicited approach from a third party, they had decided to review all of its strategic options, including, inter alia, offers for the Company as a whole. On Dec. 8, SkyePharma received a number of expressions of interest, both with respect to individual assets owned by the Company as well as potential cash offers for the Company as a whole. In the light of such interest, the Board allowed a number of parties access to a data room to commence due diligence on the Company. SkyePharma continues to seek potential offers for the Company as a whole, but it is not clear at this stage that an offer for the Company, whether in cash or otherwise, which is capable of recommendation, will be forthcoming. In addition, a number of parties remain interested in potentially acquiring individual assets owned by the Company. SKYEPHARMA PLC: Names Frank Condella as Chief Executive Officer --------------------------------------------------------------- SkyePharma PLC appointed a new senior management team comprising Frank Condella as Chief Executive and Dr. Ken Cunningham in the newly created post of Chief Operating Officer. This new role will focus on ensuring the effective development of SkyePharma's key products such as Flutiform(TM). Frank C. Condella, Jr. was President of the European operations of IVAX prior to its acquisition by Teva for more than US$7 billion in 2005. He was closely involved with IVAX's respiratory franchise, one of its three core therapeutic areas, including managing the acquisition and integration of 3M's branded respiratory business. Prior to joining IVAX in 2002, he occupied senior roles at Faulding Pharmaceuticals, Roche, and the Lederle unit of American Home Products. Mr. Condella, who is American, has a BS Pharm degree and an MBA from Northeastern University in Boston. "I support the near-term strategy recently outlined by the board and am confident that our new management team can effectively implement it. I believe that my experience in growing global pharmaceutical businesses while closely managing costs will be an important asset as we work together to build long-term shareholder value," Mr. Condella said. Dr. Ken Cunningham was Chief Executive of the privately owned U.K. biotechnology company Arakis, recently acquired by the Japanese company Sosei for US$200 million. Dr. Cunningham has extensive experience in the development of respiratory products and the Arakis lead product, a treatment for chronic obstructive pulmonary disease (COPD), was licensed to Novartis in 2005 in a deal worth up to US$375 million. Prior to his appointment to the Arakis role in 2002, he was Vice President, International Affairs for Alza and before that was Vice President for Clinical Development for Sequus Pharmaceuticals. Prior to that, he held a variety of clinical development and commercial strategy positions in Glaxo Wellcome and Warner-Lambert. Dr. Cunningham qualified from St. Mary's Medical School, London University. "I am very excited about joining SkyePharma and helping drive the development of new oral and respiratory products, including Flutiform(TM) which I believe will deliver significant benefit to asthma sufferers. I also look forward to working with Frank Condella and the Board to build a leading international specialty pharmaceutical business," Dr. Cunningham said. "I am delighted that Frank and Ken have chosen to join SkyePharma. It is a testament to their character that they have made the decision to come on board at such a challenging moment. They bring a combination of proven skills, relevant experience and strong reputation in the pharmaceutical industry, meaning that SkyePharma now has the ideal team to lead the company forward," said Dr. Jerry Karabelas, SkyePharma's chairman. ""I hope that the appointment of Frank and Ken will prompt recognition among the shareholders who have called for an Extraordinary General Meeting that they are the best possible team to lead SkyePharma. I appeal to them to reconsider their moves to appoint Mr. Robert Thian as executive Chairman via an EGM. Both Frank and Ken have current and highly relevant pharmaceutical industry experience. By contrast, Mr. Thian has not had an executive role in pharmaceuticals since 1989 and has limited visibility in the industry, his most recent experience having been mainly restricted to water utilities and separation technology. I strongly believe that the new team should be given the opportunity to realize the potential in SkyePharma." Both Mr. Condella and Dr. Cunningham have expressed their intent to purchase shares in SkyePharma as soon as they are able as a mark of their confidence in SkyePharma and recognition of the potential within the Company. Board Structure Michael Ashton will continue to act as SkyePharma's Chief Executive until March 1, when Frank Condella can take up his appointment, and will remain on the Board as a non-executive director until the next Annual General Meeting in June 2006. Neither Mr. Condella nor Dr. Cunningham will join the Board immediately but it is anticipated that the new executives will join the board prior to the AGM so that their appointments can be voted on by shareholders at that time. About the Company Headquartered in London, SkyePharma PLC -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world leading drug delivery technologies that provide easier-to-use and more effective drug formulations. In May, it reported net loss of GBP24.3 million for 2004, a decrease of 44% compared with GBP43.2 million in 2003. * * * On Nov. 17, the Board of SkyePharma disclosed that following an unsolicited approach from a third party, they had decided to review all of its strategic options, including, inter alia, offers for the Company as a whole. On Dec. 8, SkyePharma received a number of expressions of interest, both with respect to individual assets owned by the Company as well as potential cash offers for the Company as a whole. In the light of such interest, the Board allowed a number of parties access to a data room to commence due diligence on the Company. SkyePharma continues to seek potential offers for the Company as a whole, but it is not clear at this stage that an offer for the Company, whether in cash or otherwise, which is capable of recommendation, will be forthcoming. In addition, a number of parties remain interested in potentially acquiring individual assets owned by the Company. TIMBER SYSTEMS: Furniture Maker Calls in Administrator ------------------------------------------------------ A. J. Wolstenholme and J. M. Wright of Kroll Limited were appointed administrators of Timber Systems Limited (Company No 01414276) on Jan. 24. Its registered office is at Peat House, Newham Road, Truro, Cornwall TR1 2DP. Timber Systems Limited -- http://www.timber-tailers.co.uk/-- was previously named Timber Tailors Limited. It manufactures office and shop furniture. CONTACT: TIMBER TAILORS LTD Longwall Avenue Queen Drive Industrial Estate Nottingham NG2 1NA United Kingdom Tel: 0115-942 1000 Fax: (0870) 4289103 Headquartered in Birmingham, Kroll Limited -- http://www.krollworldwide.com/-- offers risk consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. WEST HAMPSHIRE: Water Supplier Winds Up --------------------------------------- West Hampshire Water Plc voluntarily liquidated its assets after members voted to wind up the company's operation during an EGM held on Jan. 20 in Bournemouth. Company Chairman A. R. F. Cooke disclosed that Nicholas James Dargan and Nicholas Guy Edwards of Deloitte & Touche were appointed joint liquidators after members found out that the company cannot continue its business due to its liabilities. Headquartered in Bournemouth, West Hampshire Water -- http://www.bwhwater.co.uk/-- supplies water to an estimated resident population of 426,300 in an area of 1,041 square kilometers through a mains network of 2,745 kilometers in the United Kingdom. The Act of Parliament established West Hampshire Water in 1893. CONTACT: DELOITTE & TOUCHE LLP Athene Place 66 Shoe Lane London EC4A 3BQ Tel: 00 44 (0) 207 936 3000 Fax: 00 44 (0) 207 779 4001 Web site: http://www.deloitte.com/ WESTFIELD STAMPINGS: Manufacturer Names Vantis Administrator ------------------------------------------------------------ Geoffrey Paul Rowley and Nicholas Hugh O'Reilly of Vantis Numerica were appointed administrators of Westfield Stampings Limited (Company No 00735362) on Jan. 25. Headquartered in West Midlands, United Kingdom, Westfield Stampings Limited -- http://www.westfieldstampings.co.uk/-- has been designing and manufacturing non-ferrous stampings since 1962. Headquartered in London, Vantis Numerica (nka Vantis plc) -- http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. CONTACT: WESTFIELD STAMPINGS LIMITED School Street, Dudley, West Midlands DY1 2AH United Kingdom Tel: (01384) 253358 Fax: (01384) 455486 ********* 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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