/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060209.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 9, 2006, Vol. 7, No. 29 Headlines F R A N C E APM: Foundry Faces Liquidation Following 2005 Insolvency G E R M A N Y ALL TRANS: Kempten Firm Under Bankruptcy Administration HEINZ MERSINGER: Court to Verify Claims on April 6 MAINZER STRASSE: Court Begins Bankruptcy Proceedings MAOR HANDELSGESELLSCHAFT: Creditors' Meeting Set for March 21 O.H. LEDERWARENHANDELSGESELLSCHAFT: March Claims Deadline Set PETATEC SERVICE: Creditors' Meeting Set on March 2 PETERKA COMPUTER: Ansbach Court Calls In Administrator SALZLAND BAU: Claims Registration Deadline Set on Feb. 20 SCHUELERHAUS BREMSNITZ: Gera Court Names Administrator WOLF GMBH: Court Sets March 17 Claims Bar Date I R E L A N D ARDAGH GLASS: Competition Prompts Moody's to Review Ratings I T A L Y BANCA NAZIONALE: BNP Paribas Board to Sign Takeover Bid Today PARMALAT SPA: Court Okays Brazilian Unit's Recovery Plan K A Z A K H S T A N AKVAPARK ZOLOTYE: Authorities Open Bankruptcy Proceedings COMPANY RSU-2: Last Day for Filing of Claims Set Next Month OMEGA STAR: Declared Insolvent ORAL-XXI: Has Until March to File Proofs of Claim SKAUT: Bankruptcy Proceedings Started by Mangistau Court U-MARKET: Deadline for Filing of Claims Last Week of March L U X E M B O U R G BLUE EAGLE: Fitch Affirms Junk Ratings on Fixed-Rate Notes N E T H E R L A N D S ROYAL SHELL: Further Cancels 850,000 'A' Shares VENDEX KBB: Fitch Rates Senior Secured Debt at BB+ VICTORIA ACQUISITION: Fitch Puts EUR275-Mil Bond Ratings on B+ R U S S I A ALAPAEVSKIY FACTORY: Undergoes Bankruptcy Supervision Procedure BUILDING MATERIALS: Court Sets Feb. 14 Claims Bar Date CHERDAKLINSKIY: Ulyanovsk Court Brings In Insolvency Manager CHUVASH-OPT-TORG: Declared Insolvent by Chuvashiya Court INDUSTRY-STROY-SERVICE: Succumbs to Bankruptcy KUBAN-AGRO-SERVICE: Under Bankruptcy Supervision in Krasnodar MEAT-MOL-KOMPLEKT: Insolvency Manager Takes Over Helm NADEZHDA: Mariy El Court Opens Bankruptcy Proceedings NORTH-WEST: Posts Preliminary 2005 Financial Results REINFORCED CONCRETE: Claims Filing Period Ends Next Week ULYBINO: Assets For Public Auction Set Feb. 15 S W E D E N SKANDIA INSURANCE: Final Acceptance of Old Mutual's Offer Closes SKANDIA INSURANCE: Reveals Changes in Nominating Committee U K R A I N E AVANGARD-2003: Zaporizhya Court Begins Bankruptcy Proceedings AZOVSTAL IRON: Planned US$200-Mil LPN Gets Moody's (P)B3 Rating BAHMACHTEPLOKOMUNENERGO: Court Names Insolvency Manager DOBRINYA: Declared Insolvent by Vinnitsya Court FLAX-CONTRACT: Court Freezes Debt Payments GRABARIVSKE BREAD: Bankruptcy Supervision Begins SINTEZ-TRAST: Court Names S. Sidko Temporary Insolvency Manager SOFIYIVKA: Kyiv Court Launches Liquidation UKRAINA: Kirovograd Court Affirms Insolvency U N I T E D K I N G D O M ACTIF ACCOUNTING: Financial Woes Prompt Voluntary Liquidation ADIURI SYSTEMS: Joint Administrators Take Over Firm ASHFIELD RETAIL: Taps Liquidator to Wind Up Assets BIOGROVE PROPERTIES: Begins Voluntary Liquidation in Boston BOND (RSC): Taps Abbott Fielding as Liquidator BRITISH AIRWAYS: Earns GBP164-Mil Pre-Tax Profit in 3rd Quarter CAPI LIMITED: Creditors Meeting Set Next Week CLARPO MANUFACTURERS: Succumbs to Liquidation Proceedings COLOURSMART PRINT: Winding Up Assets in Port Talbot CONTRACT VEHICLE: Names Jonathan Lord as Liquidator CORUS GROUP: Fitch Affirms Senior Unsecured BB- Rating DANKA BUSINESS: Posts Nine-Month Loss of GBP10.5 Million DERWENT RECYCLING: Winds Up Operations G L N DEVELOPMENTS: Appoints Valentine & Co. to Liquidate Assets GATE PERSONNEL: Enters Voluntary Liquidation GIZMONDO (EUROPE): High Court Orders Liquidation H L GORNER: Calls in BDO Stoy Hayward Administrator HARLESDEN MARKETING: Shuts Down Operations HENRY NEWBOULD: Creditors Meeting Set Next Week HMV GROUP: Turns Down Permira Advisers' Conditional Proposal HOWELLS HOME: Brings In Begbies Traynor as Joint Liquidators IMR BUILDING: Members Pass Winding Up Resolution KRYOTRANS LIMITED: In Administrative Receivership LAURELS PROPERTY: Names Harris Lipman Administrator SALTY'S PARTNERSHIP: Hires Rogers Evans to Administer Assets SHAKESPEARE UNDERWRITING: Appoints Tenon Recovery Administrator SOCK SHOP: Retailer Appoints Poppleton & Appleby Administrator STYLACATS LIMITED: Creditors Meeting Set Feb. 16 TEXTILE MILL: Names Administrators from Tait Walker YORKSHIRE COLOURS: Meeting of Creditors Set Feb. 14 * European TMT Companies Get Issuer Default Ratings from Fitch * Fitch Assigns Issuer Default Ratings to European RLCP Firms ********** =========== F R A N C E =========== APM: Foundry Faces Liquidation Following 2005 Insolvency -------------------------------------------------------- The Commercial Court of Nanterre placed APM into liquidation after it filed for insolvency last July 2005, Les Echos reports. The French foundry has accumulated EUR20 million in losses and has been in the red for the past three years. According to reports, the company was looking for possible buyers to take over the operation but got only one offer from German group Osaci. Its main customer, PSA Peugeot Citroen, did not commit to continue its order by volume that would have guaranteed enough business for the company, Les Echoes relates. Headquartered in Meung-sur-Loire, France, APM -- http://www.apmfrance.com/-- specializes in producing automobile parts and currently employs 176 staff. ============= G E R M A N Y ============= ALL TRANS: Kempten Firm Under Bankruptcy Administration ------------------------------------------------------- The District Court of Kempten opened bankruptcy proceedings against All Trans GmbH on Jan. 17. 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 Martin Schoebe. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Kempten, SS 157/I, Residenzplatz 4-6, at 9:20 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: ALL TRANS GmbH Bergmangstrasse 25 in 87674 Ruderatshofen Martin Schoebe, Administrator Ainmillerstr. 11, 80801 Muenchen Tel: 089/1893770 Telefax: 089/18937750 HEINZ MERSINGER: Court to Verify Claims on April 6 -------------------------------------------------- The District Court of Ludwigshafen/Rhein opened bankruptcy proceedings against Heinz Mersinger GmbH on Jan. 16. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 20, 2006, to register their claims with court-appointed provisional administrator Markus Ernestus. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Ludwigshafen/Rhein, Sitzungssaal VIII, Wittelsbachstr. 10, 67061 Ludwigshafen/Rhein, at 9:30 a.m., on April 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: HEINZ MERSINGER GmbH Am Herrschaftsweiher 2, 67071 Ludwigshafen Contact: Gerd Mersinger, Manager Markus Ernestus, Administrator O3, 11+12, 68161 Mannheim MAINZER STRASSE: Court Begins Bankruptcy Proceedings ---------------------------------------------------- The District Court of Charlottenburg opened bankruptcy proceedings against Mainzer Strasse GmbH & Co. KG on Jan. 23. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until May 11, 2006, to register their claims with court-appointed provisional administrator Dr. Joachim Heitsch. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, at 9:15 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 at 9:05 a.m., on July 10, 2006, at the same venue. CONTACT: MAINZER STRASSE GmbH & CO. KG Breite Str. 12,14199 Berlin Dr. Joachim Heitsch, Administrator Berliner Str. 117, 10713 Berlin MAOR HANDELSGESELLSCHAFT: Creditors' Meeting Set for March 21 ------------------------------------------------------------- The District Court of Duesseldorf opened bankruptcy proceedings against MAOR Handelsgesellschaft OHG on Jan. 24. 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 Dr. Biner Bahr. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Duesseldorf, Hauptstelle, Muehlenstrasse 34, 40213 Duesseldorf, 4. OG. Altbau, A 409, at 9:00 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: MAOR HANDELSGESELLSCHAFT OHG Hildebrandtstr. 24 c, 40215 Duesseldorf Contact: Mara Markowitz, Manager Am Brueckerbach 48, 40591 Duesseldorf Dr. Biner Bahr, Administrator Jagerhofstrasse 21, 40479 Duesseldorf O.H. LEDERWARENHANDELSGESELLSCHAFT: March Claims Deadline Set ------------------------------------------------------------- The District Court of Bad Homburg opened bankruptcy proceedings against O.H. Lederwarenhandelsgesellschaft mbH on Jan. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 10, 2006, to register their claims with court-appointed provisional administrator Angelika Amend. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Bad Homburg, Steinkaut 10- 12, 61352 Bad Homburg v. d., at 9:20 a.m. on April 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: O.H. LEDERWARENHANDELSGESELLSCHAFT mbH c/o Rajiv V. Valia, Oberhochstadter Str. 56, 61440 Oberursel/Ts Angelika Amend, Administrator Minnholzweg 2b, D-61476 Kronberg/Ts. Tel: 06173/78340 Fax: 06173/783422 PETATEC SERVICE: Creditors' Meeting Set on March 2 -------------------------------------------------- The District Court of Charlottenburg opened bankruptcy proceedings against Petatec Service GmbH on Jan. 20. 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 Thomas Kuehn. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, at 10:15 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 10:05 a.m., on June 8, 2006, at the same venue. CONTACT: PETATEC SERVICE GmbH Saatwinkler Damm 42 a,13627 Berlin Thomas Kuehn, Administrator Luetzowstr. 100, 10785 Berlin PETERKA COMPUTER: Ansbach Court Calls In Administrator ------------------------------------------------------ The District Court of Ansbach opened bankruptcy proceedings against Peterka Computer & Beratung GmbH on Jan. 19. 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 Joachim Exner. 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 9:45 a.m. on March 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: PETERKA COMPUTER & BERATUNG GmbH Bergerstr. 11 in 91781 Weissenburg Joachim Exner, Administrator Stahlstr. 17, 90411 Nuernberg Tel: 0911/951285-0 Fax: 0911/95128510 SALZLAND BAU: Claims Registration Deadline Set on Feb. 20 --------------------------------------------------------- The District Court of Magdeburg opened bankruptcy proceedings against Salzland Bau GmbH Stassfurt on Jan. 16. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 20, 2006, to register their claims with court-appointed provisional administrator Heiko Rautmann. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Magdeburg, Saal E, Insolvenzabteilung, Liebknechtstrasse 65-91, 39110 Magdeburg, at 11:00 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: SALZLAND BAU GmbH STASSFURT Industriestr. 12, 39418 Stassfurt Contact: Sven Richter, Manager Oststr. 7, 39418 Stassfurt OT Rathmannsdorf Heiko Rautmann, Administrator Editharing 31, 39108 Magdeburg Tel: 0391/5066030 Fax: 0391/5066033 SCHUELERHAUS BREMSNITZ: Gera Court Names Administrator ------------------------------------------------------ The District Court of Gera opened bankruptcy proceedings against Schuelerhaus Bremsnitz e.V. on Jan. 19. 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 J. Schneider. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Gera, Rudolf-Diener-Str. 1, Zimmer 310, at 1:15 p.m., on March 29, 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: SCHUELERHAUS BREMSNITZ e.V. Contact: Bernd Ronnefarth, Manager Cospedaer Grund 37, 07743 Jena J. Schneider, Administrator Tatzendpromenade 2a, 07745 Jena WOLF GMBH: Court Sets March 17 Claims Bar Date ---------------------------------------------- The District Court of Arnsberg opened bankruptcy proceedings against Wolf GmbH Bedachungen on Jan. 24. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 17, 2006, to register their claims with court-appointed provisional administrator Manfred Gottschalk. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Arnsberg, Eichholzstrasse 4, 59821 Arnsberg, EG, 328, at 9:50 a.m. on April 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: WOLF GmbH BEDACHUNGEN Stadtwalt 7, 58739 Wickede Contact: Carla Wolf, Manager Manfred Gottschalk, Administrator Kirchender Dorfweg 14, 58313 Herdecke Tel: 02330/80310 Fax: 02330/8031100 ============= I R E L A N D ============= ARDAGH GLASS: Competition Prompts Moody's to Review Ratings ----------------------------------------------------------- Moody's Investors Service placed all the ratings of Ardagh Glass Group and its subsidiary Ardagh Glass Finance B.V. on review for possible downgrade in response to the sustained intensification of the competitive environment in the U.K., marked by increased capacity in the market and rising input prices, particularly energy costs. This rating review was prompted by the deterioration in credit metrics and free cash flow generation over the past year, as reflected in the interim results of September 30, 2005, and Moody's concern that there is no visibility at this time with respect to when margins and cash flow will recover. Ratings affected: --- The Ba3 Corporate Family Rating of Ardagh Glass Group PLC; --- The B3 rating of the EUR125 million Senior Unsecured notes due 2015 at Ardagh Glass Group PLC; and --- The B2 rating of the EUR175 million Senior Subordinated notes due 2013 at Ardagh Glass Finance B.V. Moody's rating review will focus on the potential adverse impact on credit metrics, and free cash flow generation due to: --- The intensifying competitive environment in the UK glass container industry, which is marked by overcapacity that is anticipated to increase further with the expected full deployment of a competitor's plant (Quinn) by mid- 2006 and consequent pricing and margin pressure; and --- The volatility of raw material prices and energy costs, which have negatively impacted margins. Moody's review will also focus on Ardagh's liquidity position over the short to medium term and access to alternative sources of liquidity in light of covenant limitations within some of its financing arrangements. Moody's notes that a resolution of the review could be accompanied by a more than one notch downgrade of the rating. Moody's intends to complete its review within the next 90 days. Registered in Ireland, Ardagh Glass Group Plc is the leading supplier of glass containers by volume in the United Kingdom through its subsidiaries, Rockware and Redfearn. In addition, Ardagh Glass operates glass container manufacturing businesses in Italy and Germany and is also a leading provider of technology and machinery to the glass manufacturing industry through Heye International. For the last twelve months ended September 30, 2005, Ardagh Glass generated revenues of EUR532.7 million. ========= I T A L Y ========= BANCA NAZIONALE: BNP Paribas Board to Sign Takeover Bid Today ------------------------------------------------------------- The Board of Directors for BNP Paribas will meet today, Feb. 9, to approve a EUR9 billion bid for Banca Nazionale del Lavoro, Claudio de Lillo writes for Reuters. As reported in TCR-Europe on Feb. 7, BNP Paribas entered into conditional agreements with 13 shareholders of BNL, including Unipol, to acquire 1.47 billion BNL shares, representing approximately 48% of the shares of BNL, at a price of EUR2.925 per share. A source told Reuters that authorities have 60 days from the board approval to give a final approval. Terms of the Agreement Under the terms of the agreements, BNP Paribas will pay up to EUR4.3 billion in cash to acquire 48% of the capital of BNL. It would then launch a Public Offer to acquire the remaining shares (including savings shares), also in cash, at the same price of EUR2.925 per share. BNP Paribas expects to disburse EUR9 billion for the acquisition assuming that the offer is approved by relevant authorities and all shareholders would tender their shares through the public offer (which would result in BNP owning 100% of BNL). BNP Paribas plans to fund this investment partially through: -- a EUR5.5 billion rights issue with pre-emptive rights for existing shareholders; and -- the issue of hybrid capital for approximately EUR2 billion, and from internal resources for the balance. After these issues, BNP Paribas' tier one ratio should stand above 7%. The precise terms of the rights issue would be determined and announced after the authorization of the Public Offer by the Italian stock market regulator, Consob. A full-text copy on the merger is available at no charge at http://ResearchArchives.com/t/s?509 BNP Paribas is advised by BNP Paribas Corporate Finance. Its legal advisors are Bonelli Erede Pappalardo Studio Legale. About BNP Paribas BNP Paribas is one of the largest foreign banks in Italy, with a leading and longstanding presence in retail financial services, a well-established position in asset management and services, and the status of a top tier player in corporate and investment banking. It employs more than 3,700 people and generates revenues in excess of EUR750 million. About BNL Banca Nazionale del Lavoro is the sixth largest Italian bank in terms of deposits and loans. Its network offers nation-wide coverage via approximately 800 branches covering all major urban areas. It serves around 3 million retail customers, 39,000 corporate clients, and 16,000 public entities. * * * Fitch Ratings recently upgraded Banca Nazionale del Lavoro's (BNL) Individual rating to 'C' from 'C/D' following the announcement on the planned merger with BNP Paribas. PARMALAT SPA: Court Okays Brazilian Unit's Recovery Plan -------------------------------------------------------- Justice Alexandre Alves Lazzarini of the First District Company Recovery and Bankruptcy Court of Justice of Sao Paulo approved the reorganization plan of Parmalat Brasil y Industria de Alimentos S.A., Gazeta Mercantil reports. The plan gained green light despite Parmalat's failure to present its Negative Tax Debt Certification, one the requirements outlined in the New Bankruptcy and Restructuring Law of Brazil. Thomaz Felsberg of Felsberg & Associados law firm said there was no need to since "there still is no law providing for parceling the tax debts." The Brazilian government has yet to draft a law for parceling tax debts in consonance to NRBL. A precedent ruling was handed to Brazilian carrier Varig. Justice Luiz Roberto Ayoub of Rio de Janeiro said, "it makes no sense to block the possibility of a company reorganizing itself for lack of negative certification of debts." Under the plan, presented by Integra Consultants, Parmalat Brasil will launch a capital hike and issue new bonds to prop up its finances. The group will also sell its operating assets to provide additional capital and at the same time repay part of its debt. The plan also includes a schedule of payments on the BRL900 million it owed to suppliers and banks. The recovery plan was drafted under Brazil's new bankruptcy law that took effect on June 2005, allowing Parmalat Brasil to replace a creditors' agreement with a judicial recovery request. The unit filed for bankruptcy shortly after the collapse of Italian parent Parmalat S.p.A. Parmalat Brasil filed for bankruptcy protection on June 24, 2005, under Brazil's new bankruptcy law. The filing came after the unit's creditors denied the extension of the BRL800 million payment deadline for the Company's debt. Under the NBRL, debtors are permitted to remain in possession and control of their businesses and properties. In addition, as part of the judicial reorganization under the NBRL, most creditors are effectively prohibited from enforcing claims against the Debtors. 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 =================== AKVAPARK ZOLOTYE: Authorities Open Bankruptcy Proceedings --------------------------------------------------------- The Taxation Committee and the Specialized Inter-Regional Economic Court of Mangistau region commenced bankruptcy proceedings against LLC Akvapark Zolotye Gorki on Dec. 12, 2005, Aktau, micro district 27, 51. The company can be contacted at 8 (3292) 41-22-37. COMPANY RSU-2: Last Day for Filing of Claims Set Next Month ----------------------------------------------------------- LLC Company RSU-2 has declared insolvency. The proofs of claim will be accepted at Almaty, Utegen Batyra Str. 106-26 on or before March 27, 2006. The company can be contacted at 8 (3272) 41-87-51. OMEGA STAR: Declared Insolvent ------------------------------ LLC Omega Star has declared insolvency. The proofs of claim will be accepted at Almaty, Marecheka Str. 14a on or before March 27, 2006. CONTACT: OMEGA STAR Almaty, Marecheka Str. 14a ORAL-XXI: Has Until March to File Proofs of Claim ------------------------------------------------- LLC Oral-XXI has declared insolvency. The proofs of claim will be accepted at East Kazakhstan region, Ust-Kamenogorsk, Kosmicheskaya Str. 6/1 on or before March 27, 2006. CONTACT: ORAL-XXI East Kazakhstan region, Ust-Kamenogorsk, Kosmicheskaya Str. 6/1 SKAUT: Bankruptcy Proceedings Started by Mangistau Court -------------------------------------------------------- Taxation Committee and the Specialized Inter-Regional Economic Court of Mangistau region commenced bankruptcy proceedings against LLC Skaut on Dec. 14, 2005, Aktau, micro district 27, 51. The company can be contacted at 8 (3292) 41-22-37. U-MARKET: Deadline for Filing of Claims Last Week of March ---------------------------------------------------------- LLC U-Market has declared insolvency. The proofs of claim will be accepted at Almaty, Baikadamova Str. 10 on or before March 27, 2006. The company can be contacted at 8 (3272) 48-30-29. =================== L U X E M B O U R G =================== BLUE EAGLE: Fitch Affirms Junk Ratings on Fixed-Rate Notes ---------------------------------------------------------- Fitch Ratings affirmed Blue Eagle CDO I S.A.'s due 2015 notes following a satisfactory performance review. The notes involved are: (a) Class A-1 floating-rate notes (ISIN XS0120810493) at AAA; (b) Class A-2 fixed-rate notes (ISIN XS0121028285) at AAA; (c) Class B-1 floating-rate notes (ISIN XS0120810733) at BBB+; (d) Class B-2 fixed-rate notes (ISIN XS0120811038) at BBB+; (e) Class C fixed-rate notes (ISIN XS0120811111) at CCC; (f) Class D fixed-rate notes (ISIN XS0120811384) at CC; and (g) Combination notes (ISIN XS0120811970) at CC. In December 2000, Blue Eagle I CDO S.A, a limited liability company organized under Luxembourg law, issued EUR500 million of various Classes of fixed-rate and floating-rate notes and invested the proceeds in a portfolio of investment-grade and sub-investment grade debt securities. Since the review in April 2005, the portfolio has suffered one further default. Calpine defaulted on Dec. 20, 2005. The asset has a corporate recovery rate of 'RR5'. This translates into a mid-point recovery percentage of 20% for Fitch's analysis, compared to market expectations of 40%. The notional balance of the Calpine bond represents 3.45% of the current portfolio notional outstanding. Total defaults now stand at eight assets totaling some EUR65.55 million (with EUR48 million of realized loss). Currently the 'CCC+' and below bucket contains four assets, representing 6.71% of the total portfolio (compared to 9.9% in April 2005). The Fitch weighted average rating factor has improved slightly to 50.60 at present from 50.88 in April 2005. At the last determination date on Dec. 12, 2005 the Class D par value and interest coverage tests were failing. Interest has been diverted to repay the Class A notes. The Class A notes have amortized to 28% of their original notional balance. As a consequence of this de-leveraging, the overcollateralization levels for the Class A and B notes continue to build. Although the deal has suffered a further default since April 2005, the remaining collateral has shown stable performance and this, together with the amortization of the Class A notes, contribute to the affirmation of its ratings at their current levels. ===================== N E T H E R L A N D S ===================== ROYAL SHELL: Further Cancels 850,000 'A' Shares ----------------------------------------------- Royal Dutch Shell PLC purchased 600,000 'A' Shares for cancellation at EUR26.81 per share on Feb.7. It further purchased 250,000 'A' Shares for cancellation at 1,841.51 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell PLC will be 3,923,512,974. 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. 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. VENDEX KBB: Fitch Rates Senior Secured Debt at BB+ -------------------------------------------------- Fitch Ratings assigned an Issuer Default Rating of BB- to Vendex KBB and Victoria Acquisition III B.V. with a Stable Outlook. As a result of the application of the new recovery ratings approach, Fitch has revised Vendex KBB's Senior Secured debt to BB+ from BB and Victoria Acquisition III B.V's EUR275 million 7.875% Senior Subordinated notes due 2014 to B+ from B. The IDR of BB- continues to reflect Vendex's leading market position across different retail formats, strong brand awareness of its HEMA merchandise stores and the strength of its DIY operations. The rating also factors in the improvement in operating cash flows as of October 2005, stemming from the streamline in working capital and modest outlays relating to capital spending. Despite the improvement seen to date in the liquidity position of the issuer, the business remains highly exposed to the evolution of Dutch consumer confidence and the lack of a visible turnaround in its department store concept V&D. Retail spending in the Netherlands has shown signs of revival in recent months although fierce competition could still translate into pricing pressure, therefore capping net sales growth. Following the prepayment of the mortgage loan with the proceeds of a sale and leaseback agreement signed with IEF Nederland B.V. and Bouwfonds Asset Management B.V. at the end of November 2005, lease adjusted leverage is expected to remain above 5.0x, albeit lower than the 5.9x at closing of the LBO in July 2004. Fitch is also aware that management will be looking at different potential uses for the group's large cash position. It is expected that, if considered appropriate, the IDR will not move more than one notch up or down from the current BB-. The revision of the bank loan rating to BB+ from BB reflects Fitch's expectation that of superior recoveries for senior secured lenders in the case of a default, in accordance with Fitch's revised recovery analysis. Following the prepayment of the mortgage loan, senior leverage on a consolidated basis has reduced from 3.9x to 2.6x, while most of the retail segments in which the group operates have remained profitable through the cycle, reflecting Vendex's high brand awareness. Despite the prepayment of the mortgage loan, Vendex is considered to retain average to material levels of secured debt outstanding ranking ahead of the Senior Notes, also factoring in the high operational gearing via operating leases and the materiality of its revolving credit facilities for seasonal purposes. In addition, the group still exhibits fairly high financial leverage for the BB IDR category for its sector, when normalized for cyclical effects, hence the notching down on the Senior Notes to B+. Vendex's primary operations are in a sector that displays average to weak resilience in the face of debt restructuring, given its reliance on the brand name and lack of tangible assets. However, the group's fairly high brand awareness and diversification across various retail segments are positive factors as the company could extract value from selling any of these businesses well before entering into difficulties. In such a scenario, should Vendex's brands retain value and given the barriers to entry to the Dutch market, Vendex's brands could stand for an opportunity for other European consolidators looking to enter the market. However, depending on the depth of the potential distress, the existence of large operating leases could complicate any workout process. VICTORIA ACQUISITION: Fitch Puts EUR275-Mil Bond Ratings on B+ -------------------------------------------------------------- Fitch Ratings assigned an Issuer Default Rating of BB- to Vendex KBB and Victoria Acquisition III B.V. with a Stable Outlook. As a result of the application of the new recovery ratings approach, Fitch has revised Vendex KBB's Senior Secured debt to BB+ from BB and Victoria Acquisition III B.V's EUR275 million 7.875% Senior Subordinated notes due 2014 to B+ from B. The IDR of BB- continues to reflect Vendex's leading market position across different retail formats, strong brand awareness of its HEMA merchandise stores and the strength of its DIY operations. The rating also factors in the improvement in operating cash flows as of October 2005, stemming from the streamline in working capital and modest outlays relating to capital spending. Despite the improvement seen to date in the liquidity position of the issuer, the business remains highly exposed to the evolution of Dutch consumer confidence and the lack of a visible turnaround in its department store concept V&D. Retail spending in the Netherlands has shown signs of revival in recent months although fierce competition could still translate into pricing pressure, therefore capping net sales growth. Following the prepayment of the mortgage loan with the proceeds of a sale and leaseback agreement signed with IEF Nederland B.V. and Bouwfonds Asset Management B.V. at the end of November 2005, lease adjusted leverage is expected to remain above 5.0x, albeit lower than the 5.9x at closing of the LBO in July 2004. Fitch is also aware that management will be looking at different potential uses for the group's large cash position. It is expected that, if considered appropriate, the IDR will not move more than one notch up or down from the current BB-. The revision of the bank loan rating to BB+ from BB reflects Fitch's expectation that of superior recoveries for senior secured lenders in the case of a default, in accordance with Fitch's revised recovery analysis. Following the prepayment of the mortgage loan, senior leverage on a consolidated basis has reduced from 3.9x to 2.6x, while most of the retail segments in which the group operates have remained profitable through the cycle, reflecting Vendex's high brand awareness. Despite the prepayment of the mortgage loan, Vendex is considered to retain average to material levels of secured debt outstanding ranking ahead of the Senior Notes, also factoring in the high operational gearing via operating leases and the materiality of its revolving credit facilities for seasonal purposes. In addition, the group still exhibits fairly high financial leverage for the BB IDR category for its sector, when normalized for cyclical effects, hence the notching down on the Senior Notes to B+. Vendex's primary operations are in a sector that displays average to weak resilience in the face of debt restructuring, given its reliance on the brand name and lack of tangible assets. However, the group's fairly high brand awareness and diversification across various retail segments are positive factors as the company could extract value from selling any of these businesses well before entering into difficulties. In such a scenario, should Vendex's brands retain value and given the barriers to entry to the Dutch market, Vendex's brands could stand for an opportunity for other European consolidators looking to enter the market. However, depending on the depth of the potential distress, the existence of large operating leases could complicate any workout process. =========== R U S S I A =========== ALAPAEVSKIY FACTORY: Undergoes Bankruptcy Supervision Procedure --------------------------------------------------------------- The Arbitration Court of Sverdlovsk region commenced bankruptcy supervision on Alapaevskiy Factory Of Reinforced Concrete Products. The case is docketed as A60-29271/2005-S11. Mr. A. Kashkurov has been appointed temporary insolvency manager. Creditors have until Feb. 14, 2006, to submit their proofs of claim to: (a) ALAPAEVSKIY FACTORY OF REINFORCED CONCRETE PRODUCTS 624600, Russia, Sverdlovsk region, Alapaevsk, Tokarej Str. 12 (b) A. KASHKUROV Temporary Insolvency Manager 620062, Russia, Ekaterinburg, Post User Box 177 BUILDING MATERIALS: Court Sets Feb. 14 Claims Bar Date ------------------------------------------------------ The Arbitration Court of Saratov region commenced bankruptcy proceedings against Factory Of Building Materials after finding the company insolvent. The case is docketed as A-57-687b/05-32. Mr. A. Kamynin has been appointed insolvency manager. Creditors have until Feb. 14, 2006, to submit their proofs of claim to 410000, Russia, Saratov region, Main Post Office, Post User Box 23. A hearing will take place on June 15, 2006, 10 a.m. at Saratov, B. Vvoz Str. 1, Department 32. CONTACT: FACTORY OF BUILDING MATERIALS 413840, Russia, Saratov region, Balakovo, Komsomolskaya Str. 59 A. KAMYNIN Insolvency Manager 410000, Russia, Saratov region, Main Post Office, Post User Box 23 CHERDAKLINSKIY: Ulyanovsk Court Brings In Insolvency Manager ------------------------------------------------------------ The Arbitration Court of Ulyanovsk region commenced bankruptcy proceedings against Cherdaklinskiy after finding the company insolvent. The case is docketed as A72-5339/04-19/24-B. Mr. A. Bespalov has been appointed insolvency manager. Creditors have until March 14, 2006, to submit their proofs of claim to 433400, Russia, Ulyanovsk region, Cherdakly, Pionerskaya Str. 1. CONTACT: A. BESPALOV Insolvency Manager 433400, Russia, Ulyanovsk region, Cherdakly, Pionerskaya Str. 1 CHUVASH-OPT-TORG: Declared Insolvent by Chuvashiya Court -------------------------------------------------------- The Arbitration Court of Chuvashiya republic commenced bankruptcy proceedings against Chuvash-Opt-Torg after finding the close joint stock company insolvent. The case is docketed as A79-15401/2005. Mr. M. Shamsiev has been appointed insolvency manager. Creditors have until March 14, 2006, to submit their proofs of claim to 420015, Russia, Kazan, Post User Box 20. CONTACT: CHUVASH-OPT-TORG: Russia, Chuvashiya republic, Cheboksary M. SHAMSIEV Insolvency Manager 420015, Russia, Kazan, Post User Box 20 INDUSTRY-STROY-SERVICE: Succumbs to Bankruptcy ---------------------------------------------- The Arbitration Court of Samara region commenced bankruptcy proceedings against Industry-Stroy-Service after finding the close joint stock company insolvent. The case is docketed as A55-25629/05-38. Mr. A. Shevtsov has been appointed insolvency manager. Creditors may submit their proofs of claim to CONTACT: INDUSTRY-STROY-SERVICE Russia, Samara region, Tolyatti A. SHEVTSOV Insolvency Manager Tel: 8 (84235) 375-20 KUBAN-AGRO-SERVICE: Under Bankruptcy Supervision in Krasnodar ------------------------------------------------------------- The Arbitration Court of Krasnodar region has commenced bankruptcy supervision on limited liability company Kuban-Agro- Service. The case is docketed as A-32-15327/05-38/321-B. Mr. V. Vivchar has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 603136, Russia, Krasnodar region, Dinskaya St., Sovetskaya Str. 7 "A", Office 10. CONTACT: KUBAN-AGRO-SERVICE: Russia, Krasnodar region, Dinskaya Str V. VIVCHAR Temporary Insolvency Manager 603136, Russia, Krasnodar region, Dinskaya Str Sovetskaya Str. 7 "A", Office 10 MEAT-MOL-KOMPLEKT: Insolvency Manager Takes Over Helm ----------------------------------------------------- The Arbitration Court of Omsk has commenced bankruptcy supervision on limited liability company Meat-Mol-Komplekt. The case is docketed as K/E-355/05. Mr. V. Khmelnitskiy has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 644024, Russia, Omsk-24, Marksa Pr. 4-209A. CONTACT: V. KHMELNITSKIY Temporary Insolvency Manager 644024, Russia, Omsk-24, Marksa Pr. 4-209 A Tel: (3812) 31-05-27 Fax: 31-00-13 NADEZHDA: Mariy El Court Opens Bankruptcy Proceedings ----------------------------------------------------- The Arbitration Court of Mariy El republic commenced bankruptcy proceedings against Nadezhda after finding the open joint stock company insolvent. The case is docketed as A-38-2166-11/47- 2005. Mr. A. Yazev has been appointed insolvency manager. Creditors have until March 14, 2006, to submit their proofs of claim to 424005, Russia, Mariy El republic, Yoshkar-Ola, Post User Box 62. CONTACT: NADEZHDA 425400, Russia, Mariy El republic, Sovetskiy, Shosseynaya Str. 19 A. YAZEV Insolvency Manager 424005, Russia, Mariy El republic, Yoshkar-Ola, Post User Box 62 NORTH-WEST: Posts Preliminary 2005 Financial Results ---------------------------------------------------- JSC North-West Telecom summed up the preliminary results of operation for 2005 according to the Russian Accounting Standards, which show an improvement of the key financial and economic figures of the company and the fulfilment of its business plan. The consolidated proceeds amounted to RUR20.1 billion, up 13% as compared to 2004. EBITDA increased by 31% and reached RUR5.2 billion. The EBITDA margin grew to 26% as compared to 22% in 2004, and net profit grew by 28%, having exceeded RUR 1.8 billion. In 2005, the volume of investment of JSC NWT reached RUR5.1 billion (RUR 4.7 billion in 2004), and the plan of number capacity introduction was exceeded by 6%. 391,000 telephone numbers were put into operation, including 125,000 new numbers and 266,000 replacement numbers. Thus, the installed capacity of the company's network was 4,807,000 numbers as of the start of 2006. The queue for telephone installation was reduced to 109,300 unsatisfied applications. The digitalization level of the network reached 54% by the end of 2005. In most regional centers of the Northwestern Federal District the digitalization level of the network came close to 100%. Owing to the improvement of the key financial and economic figures, it is expected that RUR 397 million, or almost 22% of company's net profit, will be allocated for paying dividends to the shareholders of the company based on the results of the year 2005. About North-West Telecom OAO North-West Telecom is one of Russia's major telecommunication companies, and the leading operator in the North-West Federal District, providing traditional telephone services, as well as internet and advanced data services. NWT originated from the merger of 10 regional fixed line operators and is ranked among the Financial Times' Top 100 major Eastern European companies. NWT ranks eighth in Standard & Poor`s Transparency Index of the 50 largest MICEX-listed companies and fifth in the S & P Corporate governance rating. NWT international debt is rated by S&P B+ with stable outlook and domestic debt ruA+. * * * Standard & Poor's has assigned B+ ratings to North-West Telecom's long-term foreign issuer and local issuer credit ratings. Fitch also assigned a B+ rating to the company's foreign currency long-term debt and a B rating to its foreign currency short-term debt. REINFORCED CONCRETE: Claims Filing Period Ends Next Week -------------------------------------------------------- The Arbitration Court of Samara region commenced bankruptcy proceedings against Factory Of Reinforced Concrete Products-6 after finding the limited liability company insolvent. The case is docketed as A55-29901/2005 (42). Mr. E. Dulnev has been appointed insolvency manager. Creditors have until Feb. 14, 2006, to submit their proofs of claim to 443031, Russia, Samara, Demokraticheskaya Str. 8, Office 209. CONTACT: FACTORY OF REINFORCED CONCRETE PRODUCTS-6 Russia, Samara region, Novokujbyshevsk E. DULNEV Insolvency Manager 443031, Russia, Samara region, Demokraticheskaya Str. 8, Office 209 Tel: 927-93-88 ULYBINO: Assets For Public Auction Set Feb. 15 ---------------------------------------------- The bidding organizer of close joint stock company Ulybino will sell its property worth RUB1,750,000 on Feb. 15, 2006, 4 p.m. (local time). The public auction will take place at Russia, Novosibirsk region. Preliminary examination and reception of bids are done daily from 10 a.m. to 5 p.m. until tomorrow, Feb. 9. The list of documentary requirements is available at 630132, Russia, Novosibirsk, Sovetskaya Str. 64, Office 706. CONTACT: ULYBINO Russia, Novosibirsk region, Iskitimskiy region, Uybino and Chupino LLC ADVICE Bidding Organizer 630132, Russia, Novosibirsk, Sovetskaya Str. 64, Office 706 Tel: 3-340-052 Fax: 3-575-763 =========== S W E D E N =========== SKANDIA INSURANCE: Final Acceptance of Old Mutual's Offer Closes ---------------------------------------------------------------- Old Mutual PLC confirmed that its offer for Skandia Insurance Co. Ltd. closes for final acceptance at the close of business today, Feb. 9, 2006. The terms of the offer remain as previously announced, with Old Mutual offering each Skandia shareholder: -- in respect of 39.3% of the number of Skandia shares tendered by such shareholder: SEK42.0 per Skandia share in cash; and -- in respect of the remaining 60.7% of the number of Skandia shares tendered by such shareholder: 2.260 new Old Mutual shares. Old Mutual has no intention to amend the terms of its offer. Shareholder Acceptances As reported by TCR-Europe on Jan. 30, acceptances of Old Mutual PLC's offer have been validated representing 72.3% of all the shares in Skandia Insurance Company Ltd. Old Mutual declared the offer unconditional and extended the acceptance period until Feb. 9, 2006. Old Mutual said the only remaining outstanding condition for its Offer -- regulatory approval from the insurance regulator in Poland (Komisja Nadzoru Ubezpieczen I Funduszy Emerytalnych) -- was waived. Failure to receive approval from the Polish insurance regulator would only have a minimal effect on the financial performance of the enlarged group. About the Company Based in Stockholm, Sweden, Skandia Insurance Company Limited -- http://www.skandia.com/-- is one of the world's leading independent providers of quality solutions for long-term savings. With operations in 20 countries and approximately 5,800 employees, Skandia offers products and services catering to customers' needs for savings solutions and financial security in various phases of life. In 2004, the company reported sales of SEK98 billion, and a net result of -SEK139 million. * * * 2003 Scandal Before falling prey to Old Mutual, Skandia had struggled to save itself from a damaging scandal in 2003. Then-Chief Executive Lars Erik Petersson faced charges of fraud for allegedly issuing huge bonuses to other executives without the board's consent. The blow saw the insurer become more independent on its U.K. operations, and disputes between its Swedish and British management widened. A disastrous share price performance, the failure of a costly expansion into the U.S. and sustained criticism in the Swedish media over internal dealings between the parent company and its life insurance arm, Skandia Liv, didn't help Skandia's reputation, either. SKANDIA INSURANCE: Reveals Changes in Nominating Committee ---------------------------------------------------------- The composition of Skandia Insurance Co. Ltd.'s Nominating Committee has changed as a result of Old Mutual's offer for Skandia now being declared unconditional. Paolo Pellegrini (Paulson & Co.), Lars Forberg (Cevian Capital) and Per Granstrom (Fidelity Investments International) have resigned from the Committee. The new members are Hasan Askari (Old Mutual) and Ossian Ekdahl (First Swedish National Insurance Pension Fund). Hasan Askari has been appointed chairman of the Committee. Carl Rosen (Second and Fourth Swedish National Pension Funds) and Sten Trolle (Swedish Shareholders' Association), who are existing members of the Committee, will continue to serve as members. One seat on the Committee is vacant for the time being. Skandia's chairman, Lennart Jeansson, is a co-opted member of the Committee. The Nominating Committee's recommendation for directors on Skandia's board ahead of the Extraordinary General Meeting on Feb. 21, 2006, will be announced by a press release as soon as the recommendation is finalized. About the Company Based in Stockholm, Sweden, Skandia Insurance Company Limited -- http://www.skandia.com/-- is one of the world's leading independent providers of quality solutions for long-term savings. With operations in 20 countries and approximately 5,800 employees, Skandia offers products and services catering to customers' needs for savings solutions and financial security in various phases of life. In 2004, the company reported sales of SEK98 billion, and a net result of -SEK139 million. * * * 2003 Scandal Before falling prey to Old Mutual, Skandia had struggled to save itself from a damaging scandal in 2003. Then-Chief Executive Lars Erik Petersson faced charges of fraud for allegedly issuing huge bonuses to other executives without the board's consent. The blow saw the insurer become more independent on its U.K. operations, and disputes between its Swedish and British management widened. A disastrous share price performance, the failure of a costly expansion into the U.S. and sustained criticism in the Swedish media over internal dealings between the parent company and its life insurance arm, Skandia Liv, didn't help Skandia's reputation, either. ============= U K R A I N E ============= AVANGARD-2003: Zaporizhya Court Begins Bankruptcy Proceedings ------------------------------------------------------------- The Economic Court of Zaporizhya region commenced bankruptcy proceedings against Avangard-2003 (code EDRPOU 31880274) on December 7, 2005 after finding the limited liability company insolvent. The case is docketed as 25/268. Mr. V. Ishenko has been appointed liquidator/insolvency manager. CONTACT: AVANGARD-2003 72312, Ukraine, Zaporizhya region, Melitopol district, Nova Bogdanivka, Lenin Str. 45 Mr. V. Ishenko Liquidator/Insolvency Manager 72311, Ukraine, Zaporizhya region, Melitopol, a/b 21 Phone: (0619) 42-09-74 ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 AZOVSTAL IRON: Planned US$200-Mil LPN Gets Moody's (P)B3 Rating --------------------------------------------------------------- Moody's Investors Service has assigned a provisional corporate family rating of (P)B2 to the Ukrainian steel producer PJSC Azovstal Iron & Steel Works and (P)B3 rating to the proposed offering of approximately US$200 million senior unsecured loan participation notes with expected maturity of three to five years to be issued by Azovstal Capital B.V., a Dutch special purpose vehicle. The notes are issued for the sole purpose of financing Azovstal Capital B.V.'s 100% sub-participation in a loan extended by Moscow Narodny Bank Limited to Azovstal. This is the first time that Moody's has rated the debt of this company. The outlook for the ratings is stable. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavour to assign a definitive rating to the securities. A definitive rating may differ from a provisional rating. Summary Rating Rationale Following solid steel demand and a strong global pricing environment, Azovstal's financial metrics have strengthened to a level, which would be commensurate with a higher corporate family rating than the assigned B2. The B2, however, takes into account a number of additional credit considerations, which influence the overall rating level: (1) Azovstal's limited transparency with respect to the structure and financial position of the overall group as well its relations and cash flows with affiliated and shareowner held companies, e.g. the company's supply of raw material exclusively from entities outside of the borrowing group; (2) Vulnerability of a sizeable share of revenues, which are derived from the export market; notwithstanding that the sole flow of export trade is through a trading entity wholly owned by common shareholders but which remains outside of the borrowing group; (3) Potential for highly volatile earnings given dependence on semi-finished products and slab; (4) Ongoing uncertainty with respect to availability of natural gas and the extent to which an increase in gas prices in 2006 is likely to affect cost position of the company; (5) Azovstal's historical low profitability, as compared to its Russian peers, and the resulting risk of negative profitability in an event of a protracted downturn in the steel industry; (6) Risk of protectionist measures in Azovstal's major markets for finished products; (7) The company's need to upgrade technology and its concentrated production at a single site in the Ukraine; (8) Possible contingent liabilities with regard to environmental regulation; and (9) Significant country, fiscal and regulatory risks associated with Ukrainian operating environment. The rating also takes into account these credit strengths: (1) Azovstal's integrated business profile with own coke plants and secure access to iron ore and coal mines via affiliated companies; (2) The company's low cost structure, giving it a significant advantage over steel producers in mature countries; (3) Azovstal's strong market position as a major supplier of slabs to Italy and other Western countries; (4) Its geographically advantageous location on the shores of Azov Sea and close to the major Ukrainian iron ore and coal reserves, which should bolster the company's operating margins relative to those of its peers; (5) Azovstal's role as the third largest steel producer in Ukraine; (6) The company's dominant position in the production of rails in Ukraine; and (7) Relatively strong historical financial metrics and low leverage, in line with the regional peer group. The rating of the loan participation notes has been notched down to (P)B3 in light of their contractual subordination to existing secured term bank debt. Moody's expects that the maximum gross debt level will be around US$300 million, with secured debt constantly reduced and to be minimal in the near term with a maximum of around 20% to be reached going forward. Moody's also notice a refinancing risk on the notes, given the three to five- year maturity of the instrument. Rating Outlook The stable outlook reflects Moody's expectation that the results of the company will improve further thanks to the implementation of cost savings and modernization programs at the production site. A rating upgrade could be prompted: (i) If the implementation of cost savings proves successful and leads to less volatile results over time supporting strong free cash flow generation; and/or (ii) if the structure of System Capital Management becomes clearer, with the inclusion of Azovstal's iron suppliers and the main trading entity into the consolidation of Azovstal. A downgrade would be considered in the event that the company substantially increased its indebtedness such that, coupled with lower cash flows generated by the business, its cash flow-to- debt metrics deteriorated significantly. Transaction Overview The loan participation notes are subject to various restrictions and financial covenants, including a minimum equity level of US$1 billion and a limitation regarding additional indebtedness if the ratio of total net debt to EBITDA rises above 3x. As at December 30, 2004, the consolidated equity of the company was approximately US$1.1 billion. At the end of the third quarter 2005, the company had access to cash balances of US$132 million. Secured debt amounted to US$252 million. Following the proposed notes issue and including the availability of secured bilateral medium-term bank lines, the company will have access to increased liquid resources, which should be sufficient to cover its operating needs as well as the planned upsurge in capital investment requirements in 2006. The assigned ratings assume that there will be no material variations to the draft legal documentation reviewed by Moody's and assume that these agreements are legally valid, binding, and enforceable. About the Company Headquartered in Mariupol on the shore of Azov Sea, Azovstal is Ukraine's third-largest steel producer with an annual production capacity of 6.5 million mt. The company reported sales of approximately UAH9.9 billion (approximately US$1.9 billion) for the first nine months of 2005. Azovstal is majority-owned by Ukrainian metals and mining conglomerate System Capital Management. BAHMACHTEPLOKOMUNENERGO: Court Names Insolvency Manager ------------------------------------------------------- The Economic Court of Chernigiv region commenced bankruptcy supervision procedure on Production Enterprise Bahmachteplokomunenergo (code EDRPOU) on Dec. 13, 2005. The case is docketed as 9/262 b. Ms. Irina Stuk has been appointed temporary insolvency manager. CONTACT: BAHMACHTEPLOKOMUNENERGO 16500, Ukraine, Chernigiv region, Bahmach, Pershotravneva Str. 35a Ms. Irina Stuk Temporary Insolvency Manager 14000, Ukraine, Chernigiv region, Nahimov Str. 50 Phone: 17-48-03 ECONOMIC COURT OF CHERNIGIV REGION 14000, Ukraine, Chernigiv region, Miru Avenue 20 DOBRINYA: Declared Insolvent by Vinnitsya Court ----------------------------------------------- The Economic Court of Vinnitsya region commenced bankruptcy proceedings against LLC Dobrinya (code EDRPOU 31909790) on November 10, 2005 after finding the limited liability company insolvent. The case is docketed as 5/135-05. Mr. N. Voznyakevich has been appointed liquidator/insolvency manager. CONTACT: DOBRINYA Ukraine, Vinnitsya region, Krasnoarmijska Str. 1 Mr. N. Voznyakevich Liquidator/Insolvency Manager Ukraine, Vinnitsya region, Hmelnitske Shose Str. 2-A, room 712 Phone: (0432) 39-97-85 ECONOMIC COURT OF VINNITSYA REGION 21100, Ukraine, Vinnitsya region, Hmelnitske Shose 7 FLAX-CONTRACT: Court Freezes Debt Payments ------------------------------------------ The Economic Court of Volinska region commenced bankruptcy supervision procedure on LLC Flax-Contract-Credit (code EDRPOU 32964014) on Dec. 9, 2005, and ordered a moratorium on satisfaction of creditors' claims. The case is docketed as 7/120-B. Mr. Cherevatij Lubomir has been appointed temporary insolvency manager. CONTACT: FLAX-CONTRACT-CREDIT 43010, Ukraine, Volinska region, Lutsk, Kremenetska Str. 38 Mr. Cherevatij Lubomir Temporary Insolvency Manager 79022, Ukraine, Lviv region, Gorodotska Str. 277 ECONOMIC COURT OF VOLINSKA REGION 43010, Ukraine, Volinska region, Lutsk, Voli Avenue 54-a GRABARIVSKE BREAD: Bankruptcy Supervision Begins ------------------------------------------------ The Economic Court of Poltava region finished liquidation procedure and commenced bankruptcy supervision procedure on CJSC Grabarivske Bread Receiving Enterprise (code EDRPOU 30080593) on Oct. 31, 2005. The case is docketed as 8/222. Mr. F. Lazarev has been appointed temporary insolvency manager. CONTACT: GRABARIVSKE BREAD RECEIVING ENTERPRISE Ukraine, Poltava region, Piryatin district, Davidivka Mr. F. Lazarev Temporary Insolvency Manager 36039, Ukraine, Poltava region, Roza Luksemburg Str. 36 ECONOMIC COURT OF POLTAVA REGION 36000, Ukraine, Poltava region, Zigina Str. 1 SINTEZ-TRAST: Court Names S. Sidko Temporary Insolvency Manager --------------------------------------------------------------- The Economic Court of Harkiv region commenced bankruptcy supervision procedure on LLC Sintez-Trast (code EDRPOU 20060688) on December 8, 2005. The case is docketed as B-39/131-05. Mr. Sergij Sidko has been appointed temporary insolvency manager. CONTACT: SINTEZ-TRAST 61002, Ukraine, Harkiv region, Sumska Str. 82/1 Mr. Sergij Sidko Temporary Insolvency Manager 61174, Ukraine, Harkiv region, Peremogi Avenue 71-b/64 Phone: (057) 750-01-03 ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square 5, Derzhprom 8th Entrance SOFIYIVKA: Kyiv Court Launches Liquidation ------------------------------------------ The Economic Court of Kyiv region commenced bankruptcy proceedings against AGRICULTURAL LLC Sofiyivka (code EDRPOU 24211150) on after finding the limited liability company insolvent. The case is docketed as 279/11 b-05. Yagotin' Sate Tax Inspection has been appointed liquidator. CONTACT: SOFIYIVKA 07622, Ukraine, Kyiv region, Zgurivskij district, Sofiyivka, Gagarin Str. 5 ECONOMIC COURT OF KYIV REGION 01032, Ukraine, Kyiv region, Komintern Str. 165 UKRAINA: Kirovograd Court Affirms Insolvency -------------------------------------------- The Economic Court of Kirovograd region commenced bankruptcy proceedings against Ukraina on Nov. 18, 2005, after finding the limited liability company insolvent. The case is docketed as 10/210. Mr. Viktor Dengubov has been appointed liquidator/insolvency manager. CONTACT: UKRAINA 27422, Ukraine, Kirovograd region, Znamyanka district, Dmitrivka, Politviddilu Str. 25 Mr. Viktor Dengubov Liquidator/Insolvency Manager Ukraine, Kirovograd region, Znamyanka, Kiyivska Str. 23, office 5 Phone: 8 (05233) 2-29-29 THE ECONOMIC COURT OF KIROVOGRAD REGION 25022, Ukraine, Kirovograd region, Lunacharski Str. 29 =========================== U N I T E D K I N G D O M =========================== ACTIF ACCOUNTING: Financial Woes Prompt Voluntary Liquidation ------------------------------------------------------------- Actif Accounting Limited is voluntarily liquidating its assets after members elected to wind up the company on Dec. 22, 2005. Chairman V.A. Croxson disclosed that the company cannot continue its business due to mounting debts. Richard Rones of ThorntonRones in Loughton, Essex, is appointed Liquidator. CONTACT: ACTIF ACCOUNTING LIMITED 34A Sea Street Herne Bay Kent CT6 8SP Tel: 01227 366999 Fax: 01227 366600 ADIURI SYSTEMS: Joint Administrators Take Over Firm --------------------------------------------------- James Richard Tickell and Carl Derek Faulds of Portland Business & Financial Solutions Ltd were appointed joint administrators of Adiuri Systems Limited (Company No 4546912) on Jan. 23. Headquartered in Gloucestershire, United Kingdom, Adiuri Systems Limited -- http://www.adiuri.com/-- was founded in 2002. The company was created to commercially develop the research work carried out by the Universities of Bath and Bristol. A direct result of this research was the development of the Adaptive Concept Matching technology that enables the effective manipulation of faceted classifications. CONTACT: PORTLAND BUSINESS & FINANCIAL SOLUTIONS LTD. 1640 Parkway Solent Business Park Whiteley Fareham Hampshire PO15 7AH Tel: 01489 550 440 E-mails: carl.faulds@portland-solutions.co.uk james.tickell@portland-solutions.co.uk ASHFIELD RETAIL: Taps Liquidator to Wind Up Assets -------------------------------------------------- Ashfield Retail Meats Limited appointed Philip Barrington Wood of Barringtons Limited to liquidate the company's assets after members passed a resolution to wind up the company on Dec. 22, 2005. The voluntary liquidation came as a result of the Debtor's inability to continue its operations due to its liabilities. CONTACT: ASHFIELD RETAIL MEATS LIMITED The Maltings Uttoxeter Staffordshire ST147LN Tel: 01889 564 754 BIOGROVE PROPERTIES: Begins Voluntary Liquidation in Boston ----------------------------------------------------------- Members of Biogrove Properties Limited passed a resolution to wind up the company during an extraordinary general meeting on Dec. 21, 2005, in Nottingham. Philip Anthony Brooks and Julie Willets, of Blades Insolvency Services, are appointed Joint Liquidators. CONTACT: BIOGROVE PROPERTIES LIMITED The Rest, Antons Gowt Boston, Lincolnshire PE22 7BG Tel: 01205 751 266 Fax: 01205 751 277 BOND (RSC): Taps Abbott Fielding as Liquidator ---------------------------------------------- Bond (RSC) Associates Limited authorized Nedim Ailyan of Abbott Fielding to liquidate the company's assets. Company Chairman M.G. Sturman disclosed that 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 Kent. CONTACT: BOND (RSC) ASSOCIATES LTD Unit 3, Mercy Terrace Lewisham, London SE13 7UX(Road Map) Tel: 020 8314 1188 Fax: 020 83141221 Web: http://www.bondmailrooms.com/ BRITISH AIRWAYS: Earns GBP164-Mil Pre-Tax Profit in 3rd Quarter --------------------------------------------------------------- British Airways reported a pre-tax profit of GBP164 million for the three months ended Dec. 31, 2005, against a pre-tax profit of GBP151 million for the same period last year. For the nine-month period, the pre-tax profit was GBP529 million, compared to a GBP519 million profit for the same period in 2004. Operating profit for the quarter was GBP175 million, against the previous year's GBP136 million. The carrier reported an 8.2% increase in operating margin for the quarter compared to 2004. "These are encouraging results which reflect better revenue and the continued efforts of our people to strengthen the business," Willie Walsh, British Airways' chief executive, said. "Revenue is up 8.8%, driven by strong traffic volumes particularly in the premium cabin. Increased volumes have been achieved through significant promotional activity. "Total costs are up by 7.3 per cent but we have initiatives underway to reverse the trend, such as management reductions, changes to working practices, reduced absenteeism and restructuring unprofitable parts of the business. "Tackling our pension deficit is a major part of making our cost base more competitive. We have come to the end of a staff awareness programme on the implications of the significant deficit and we are reviewing the feedback before starting consultation with the trades unions and trustees by the end of March. "We continue to develop and enhance our route network and products. Our new services to Bangalore and Shanghai are both ahead of target, regional services will be relaunched in March, six new European routes will soon start at London Gatwick and in the summer we will unveil our �100 million investment in Club World, our longhaul business class product." Martin Broughton, British Airways' chairman, said: "Some yield improvement is still expected for this financial year. Consequently, revenue is now expected to grow by more than 8 per cent. Despite the improved revenue outlook, market conditions remain broadly unchanged as significant promotional activity is required to maintain seat factors. "Underlying costs, excluding fuel, are now expected to be some one per cent higher than the guidance we gave at the beginning of the year, which was flat. Fuel costs continue to be a challenge for the industry, but our guidance is unchanged with total fuel costs expected to be up by �525 million this year. "Our focus remains on preparing for the move to Terminal 5 in 2008, investing in products for our customers and continuing to drive simplification to deliver a competitive cost base." Group turnover for the third quarter at GBP2,129 million was up 8.8% on a flying programme 3.7 per cent larger measured in available tonne kilometres. This reflected the impact of increased passenger and cargo revenue and fuel surcharges. Passenger yields were down 1.5%, measured in pence per revenue passenger kilometres (RPKs). Seat factor was up 1.3 points at 74.1% on capacity 3.9 per cent higher measured in available seat kilometres (ASKs). For the nine month period, turnover improved by 8.4 per cent to GBP6,393 million on a flying programme 2.5% higher in ATKs. Passenger yields were up 0.5% with seat factor up 1.1 points at 76.5% on capacity 2.5% higher in ASKs. Employee costs were up by 8.3 per cent as wage awards and higher pension contributions were only partially offset by manpower reductions. This includes a GBP10 million restructuring provision to support the first phase of the management restructuring programme announced in November 2005. About the Company Headquartered in West Drayton, England, British Airways Plc -- http://www.britishairways.com/-- is the UK's largest international scheduled airline, flying to over 550 destinations. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. CAPI LIMITED: Creditors Meeting Set Next Week --------------------------------------------- Creditors of Capi Limited (t/a Tucci) (Company No 02802428) will meet on Feb. 13, 2006, 11 a.m. at The Marriott Gosforth Park Hotel, Gosforth Park, Gosforth, Newcastle upon Tyne NE3 3LS. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to A D Kelly, joint administrator of Tait Walker, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne NE3 3LS not later than 12 noon on Feb. 10, 2006. CONTACT: CAPI LIMITED 4 Bamburgh Court First Avenue, Team Valley Trading Estate, Gateshead, Tyne & Wear NE11 0TX 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/ CLARPO MANUFACTURERS: Succumbs to Liquidation Proceedings --------------------------------------------------------- Members of Clarpo Manufacturers Limited passed a resolution to wind up the company during an extraordinary general meeting on Dec. 22, 2005, in Liverpool. The voluntary liquidation came as a result of the Debtor's inability to continue its operations due to mounting debts. David Moore and Donald Bailey, of Begbies Traynor, are the joint liquidators appointed to wind up the company's business. CONTACT: CLARPO MANUFACTURING LTD High Street Baglitt Flint CH6 6HE Flintshire Tel: 01352 761951 Fax: 01352 713193 COLOURSMART PRINT: Winding Up Assets in Port Talbot --------------------------------------------------- Coloursmart Print Solutions Limited is liquidating its assets after a resolution to wind up the company was passed at an extraordinary general meeting on Dec. 23, 2005, in Swansea. G Blandford, Director and Chairman, disclosed that Gary Stones of Stones & Co. is appointed liquidator. CONTACT: COLOURSMART PRINT SOLUTIONS LIMITED Eagle Ho, Talbot Road Port Talbot, West Glamorgan SA13 1DH Tel: 01639 896 543 CONTRACT VEHICLE: Names Jonathan Lord as Liquidator --------------------------------------------------- Contract Vehicle Leasing Limited appointed Jonathan Lord of Bridgestones to liquidate the company's assets. The company is winding up its operations upon recommendation of members who voted during an extraordinary general meeting held on Dec. 21, 2005, in Oldham. CONTACT: CONTRACT VEHICLE LEASING LIMITED Suite 16K Kay Works Moor Lane Bolton Lancashire BL1 4TH Tel: 01204 407070 Fax: 01204 401601 CORUS GROUP: Fitch Affirms Senior Unsecured BB- Rating ------------------------------------------------------ Fitch Ratings affirmed U.K.-based steel company Corus Group PLC's ratings at Senior Unsecured 'BB-' and Short-term 'B'. The Outlook is Stable. At the same time, Fitch affirmed the ratings of Corus' debt instruments as follows: (a) Corus Group PLC EUR800 million 7.5% senior notes 'B+'; (b) Corus Group PLC EUR307 million 3.0% convertible bonds 'B+'; (c) Corus Finance PLC GBP200 million 6.75% guaranteed bonds 'B+'; (d) Corus Finance PLC EUR20 million 5.375% guaranteed bonds 'B+'; and (e) Corus Finance PLC GBP150 million 11.5% debenture stock 'BBB-'. Fitch also affirmed the ratings of Corus' other debt instruments as below and simultaneously withdrawn them due to lack of information. The agency will no longer provide rating coverage of three instruments: (a) Corus Group PLC EUR800 million senior secured bank facilities 'BB'; (b) Corus Nederland BV EUR152 million 4.625% convertible subordinated bonds 'BB+'; and (c) Corus Nederland BV EUR136 million 5.625% unsecured bonds 'BB+'. The ratings reflect Corus' leading market position as the third- largest steel producer in Europe by volume, and the continued turnaround in the company's financial performance since 2003. DANKA BUSINESS: Posts Nine-Month Loss of GBP10.5 Million -------------------------------------------------------- Danka Business Systems PLC unveiled its results for the nine months and quarter ended Dec. 31, 2005. In the quarter ended, Dec. 31, 2005, revenue was GBP152.0 million, gross margins were 31.9% and the profit before tax and finance costs was GBP0.9 million. Distribution costs and administrative expenses (operating costs) as a percentage of revenue were 30.3% after the benefit of certain prior period credits described below. Danka reported a loss for the period of GBP1.4 million or 0.6 pence per share which was favorably affected by the non-cash resolution of various tax contingencies (principally in the U.S.) totaling GBP6.0 million in the quarter (including the release of interest accruing on the contingencies of GBP1.3 million). "Our third-quarter results reflect continued pressure on gross margins, particularly in our service business," said Todd Mavis, Danka's chief executive officer. "In the quarter, we delayed taking cost reductions and in fact added training and other related costs in our service group because of ongoing contract negotiations with two of our larger service customers. We are pleased to have successfully concluded these new contracts with Pitney Bowes and Kodak, as we recently announced. In addition, we experienced a continued decline in our average cost per copy which is being driven by newer technology and a shifting services pricing model. To meet our margin challenges, we have continued to take costs out of the business and execute on our Managed Print Services strategy and we are pleased with our progress in these areas," he added. For the nine months ended Dec. 31, 2005: (a) total revenue was GBP471.4 million, 7.5% less than the comparative prior year period, with retail equipment and related sales up by 1.5% and retail service revenue declining by 13.6%; (b) consolidated gross margins were 32.8% of revenue, compared to 36.9% in the comparative prior year period; (c) operating costs were GBP157.1 million (or 33.3% of sales), 15.0% lower than the comparative prior year period. The Group recovered GBP1.8 million in prior period overpayments related to a legacy Workers' Compensation insurance policy and the reduction of a GBP0.9 million reserve related to the same policy. The Group's improvement in internal systems also led to a GBP3.1 million recovery of sales (indirect) taxes, also relating to prior periods. Operating costs were favorably affected by these items; and (d) there was a loss from continuing operations before tax and finance costs of GBP10.5 million, compared to a profit of GBP2.2 million in the comparative prior year period. Danka reported a loss for the period of GBP29.3 million (11.5 pence per share), compared to GBP11.2 million (4.4 pence per share); the current period loss was favorably affected by the non-cash resolution of various tax contingencies (principally in the U.S.) totaling GBP6.0 million (including release of interest accruing on the contingencies of GBP1.3 million). For the third quarter: (a) total revenue was GBP152.0 million, 9.6% less than the comparative prior year period, with retail equipment and related sales declining by 4.3% and retail service revenue declining by 14.7%. Primary reasons for the decline in retail equipment revenue were softness in certain Europe/Australia geographies offset by favorable foreign currency movements. The decline in retail service revenue was due in large part to the continued decline in click rates and the emergence of a more utility based industry pricing model. Further, the Group continued to experience a slower than anticipated ramp-up in volume from newer, printer manufacturer contracts; (b) consolidated gross margins were 31.9% of revenue, compared to 36.1% in the comparative prior year quarter. In the retail equipment segment, the factors in the margin decline included worldwide market pressures on pricing, an unfavorable product mix during the quarter and product gaps in color. The decline in retail service margins was due in large part to the effect of lower revenue on fixed service costs, continuing investments to meet service- level obligations to our newer, printer manufacturer partners and a decline in click rates; (c) operating costs were GBP46.1 million (or 30.3% of sales), 27.4% lower than the comparative prior year period. Contributing to the decrease were lower overhead and corporate costs as a result of the Group's continued streamlining of operations and efficiencies from its Vision 21 initiative. In addition, the Group recovered GBP1.8 million in prior period overpayments related to a legacy Workers' Compensation insurance policy and the reduction of a GBP0.9 million reserve related to the same policy. The Group's improvement in internal systems also led to a GBP1.0 million recovery of sales (indirect) taxes, also relating to prior periods. Operating costs were favorably affected by these items; and (d) there was a profit from continuing operations before tax and finance costs of GBP0.9 million, compared to a loss of GBP3.2 million in the comparative prior year quarter. "In addition to our continuing efforts to streamline the business and reduce costs, we're also focused on the effective management of working capital," noted Danka Chief Financial Officer Ed Quibell. "In the third quarter, we saw a GBP6.5 million improvement in net working capital. This improvement included a continued use of cash in the rationalization of our payables, which we expect will favorably impact the operation of our business. The reduction of our cash by GBP18.8 million was offset by the reduction in our payables and restructuring reserves of GBP17.7 million. We have continued to experience slight improvement in our liquidity ratios as we have focused on the better management of our working capital." About the Company Headquartered in London and St. Petersburg, Florida, Danka Business Systems PLC -- http://www.danka.com/-- supplies and services office equipment, including copiers and facsimile machines, through its subsidiaries. The Group distributes products from Heidelberg/Nexpress, Canon, Ricoh and Toshiba. They also provide a range of facilities and document management services in North America, Europe, Australasia and South America. * * * Danka's 11% senior notes due 2010 carry Moody's Investors Service's and Standard & Poor's single-B ratings. DERWENT RECYCLING: Winds Up Operations -------------------------------------- Members of Derwent Recycling Limited agreed to voluntarily wind up the Company's operations on Dec. 19, 2005. They also appointed Ian Michael Rose and Robert Michael Young, of Begbies Traynor, as liquidators. CONTACT: DERWENT RECYCLING LIMITED Unit 2 Bradley Workshops Consett County Durham DH8 6HG Tel: 01207 592036 Fax: 01207 502601 G L N DEVELOPMENTS: Appoints Valentine & Co. to Liquidate Assets ---------------------------------------------------------------- G L N Developments Limited is liquidating its assets after members concurred that the Company needs to voluntarily commence winding-up procedures. Robert Valentine and Mark Reynolds, of Valentine & Co., was nominated to act as liquidator to manage the wind-up activities. CONTACT: GLN DEVELOPMENTS LIMITED 18 St. Johns Road Tunbridge Wells Kent TN4 9NT Tel: 01892 517243 Fax: 01892 517253 GATE PERSONNEL: Enters Voluntary Liquidation -------------------------------------------- At an extraordinary general meeting of Gate Personnel Limited on Dec. 22, 2005, members resolved that the Company undergo voluntary liquidation. Philip Anthony Brooks and Julie Willetts, of Blades Insolvency Services, were named to supervise the Company's wind-up activities. CONTACT: GATE PERSONNEL LIMITED 124 Granby Street Leicester LE1 1DL Tel: 0800 195 8335 GIZMONDO (EUROPE): High Court Orders Liquidation ------------------------------------------------ The High Court issued a winding up order for Gizmondo (Europe) Limited to liquidate under UK law. Gizmondo's parent, Tiger Telematics, Inc., assumes that the joint liquidators from David Rubin and Associates and Bigbee and Traynor will: -- terminate Gizmondo's remaining employees; -- cease the company's Europe operations, including the Gizmondo help desk, e-mail and other product support services; and -- attempt to sell Gizmondo's assets. Tiger disclosed in a regulatory filing with the U.S. Securities and Exchange Commission last week that it is in talks with its lender and the liquidators regarding the possibility of completing the acquisition of certain assets of Gizmondo Europe, which would need to be completed in the next few days. Tiger provided no assurances that the lender will provide the funds necessary to complete the transaction despite a US$5 million bridge loan executed on Jan. 31, 2005. Headquartered in Farnborough, Gizmondo (Europe) Limited -- http://www.gizmondo.com/-- develops handheld entertainment devices for gaming, movies, music, camera, texting, and mapping services. The company, a wholly owned subsidiary of Tiger Telematics, Inc., filed a High Court application for administration in the United Kingdom on Jan. 20, 2006. The filing provides Gizmondo Europe with a moratorium in order to effect a financial restructuring of the business. H L GORNER: Calls in BDO Stoy Hayward Administrator --------------------------------------------------- Matthew Dunham and Dermot Justin Power of BDO Stoy Hayward LLP were appointed joint administrators of H L Gorner Limited (Company No 00929228) on Jan. 27. About BDO Stoy BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the UK member firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries. Its services include: audit and assurance, business restructuring, corporate finance, disputes and investigations, investment management, risk assurance services, tax services, and valuations. H L Gorner Limited -- http://www.hlgorner.co.uk/-- offers new and used Mercedes-Benz cars, including make and model comparison facility, parts and service in Wigan, Warrington and Clapham, North Yorkshire. HARLESDEN MARKETING: Shuts Down Operations ------------------------------------------ Harlesden Marketing Limited nominated Nedim Ailyan of Abbott Fielding to manage the liquidation of the company's assets. Members agreed to wind up the company after learning that the company can no longer continue its business due to mounting liabilities. CONTACT: HARLESDEN MARKETING LIMITED 56 The Pentagon Chatham Kent ME4 4HP Tel: 01634 818 075 HENRY NEWBOULD: Creditors Meeting Set Next Week ----------------------------------------------- Creditors of Henry Newbould Ltd (Company No 003330083) will meet on Feb. 16, 2006, 10 a.m. at Middlesbrough Football Club, Riverside Stadium, Middlesbrough TS3 6RS. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to I Brown, joint administrator of Deloitte & Touche LLP, 1 City Square, Leeds LS1 2AL not later than 12 noon on Feb. 15, 2006. CONTACT: HENRY NEWBOULD LTD 2 Startforth Rd Riverside Pk S2 1PT Tel: 01642 225315 Fax: 01642 230307 Web site: http://www.newboulds.co.uk/ DELOITTE & TOUCHE 1 City Square Leeds, West Yorkshire LS1 2AL Tel: 0113 292 1748 Fax: 0113 244 8942 HMV GROUP: Turns Down Permira Advisers' Conditional Proposal ------------------------------------------------------------ HMV Group received a conditional proposal regarding a possible offer for the Group at 190 pence per ordinary share from Permira Advisers Limited. The Board, together with its advisers, reviewed the proposal carefully. The Board concluded that the proposal undervalues HMV Group. As such, HMV Group will not be entering into any discussions with Permira Advisers Limited with regard to the proposal. About the Company Headquartered in the U.K., HMV Group PLC -- http://www.hmvgroup.com/-- operates 580 stores in 8 different countries under two powerful retail brands (HMV and Waterstone's). On March 31, 2005, the Group completed a refinancing of its senior bank facilities, creating a more efficient capital structure. A five-year GBP260 million revolving credit facility was arranged, replacing an existing GBP150 million revolving credit facility, together with outstanding term debt of GBP160 million which was repaid in full. Consequent to the refinancing, GBP2.7 million of unamortized deferred financing fees were written-off in the financial year to April 30, 2005, as a non-cash exceptional interest charge. At Oct. 29, 2005, the company's balance sheet showed GBP49.7 million in stockholders' deficit, compared to a GBP14.4 million deficit at Apr. 30, 2005. HOWELLS HOME: Brings In Begbies Traynor as Joint Liquidators ------------------------------------------------------------ Howells Home Improvements Limited is liquidating its assets after members agreed to wind up the company's operations on Dec. 21, 2005. The voluntary liquidation came as a result of the company's inability to pay its debts. Ian Michael Rose and Robert Michael Young, of Begbies Traynor, are appointed joint liquidators to manage the wind-up activities. CONTACT: HOWELLS HOME IMPROVEMENTS LIMITED 20 Gibbs Road Newport Gwent NP198AT Tel: 01633 665086 IMR BUILDING: Members Pass Winding Up Resolution ------------------------------------------------ At IMR Building Services Ltd's extraordinary general meeting on Dec. 21, 2005, members resolved that it is in the Company's best interests to liquidate its operations. C.M. Iacovides, of Jeffreys Henry Jacobs, was named to oversee the wind-up proceedings. CONTACT: IMR BUILDING SERVICES LTD 9 Martins Drive Hertford SG137TA Tel: 01992 553 943 KRYOTRANS LIMITED: In Administrative Receivership ------------------------------------------------- Fairfax Gerrard Holdings Limited appointed Stephen Cork and Joanne Milner of Smith & Williamson Limited joint administrative receivers of Kryotrans Limited (Reg No 03490737) on Jan. 30. Headquartered in Buckinghamshire, United Kingdom, Kryotrans Limited -- http://www.kryotrans.com/-- provides transport services for temperature-sensitive materials in the biotechnology, clinical trials and pharmaceutical industries. CONTACT: SMITH & WILLIAMSON 25 Moorgate London EC2R 6AY Inner London Tel: 020 7637 5377 Fax: 020 7631 0741 E-mail: henry.shinners@smith.williamson.co.uk LAURELS PROPERTY: Names Harris Lipman Administrator --------------------------------------------------- John Dean Cullen and Freddy Khalastchi of Harris Lipman LLP were appointed joint administrators of The Laurels Property Company Limited (Company No 03361171) on Jan. 24. Its registered office is at The Laurels, Sling, Coleford, Gloucestershire GL16 8JJ. The company offers general construction and civil engineering services. CONTACT: THE LAURELS PROPERTY CO LTD The Laurels, Parkend Walk, Coleford, Gloucestershire GL16 8JJ Tel: 01594833049 HARRIS LIPMAN 4-5 Mount Stuart Square Cardiff Bay, Cardiff South Glamorgan CF10 5EE Tel: 029 2049 5444 Fax: 029 2049 5744 SALTY'S PARTNERSHIP: Hires Rogers Evans to Administer Assets ------------------------------------------------------------ Terry Evans of Rogers Evans was appointed administrator of Salty's Partnership on Oct. 19, 2005. Its registered office is at Quay Street, Yarmouth, Isle of Wight PO41 0PE. The company operates a restaurant. CONTACT: ROGERS EVANS 20 Brunswick Place Southampton Hampshire SO1 2AQ Tel: 023 8033 5888 Fax: 023 8033 4400 E-mail: tevans@rogersevans.co.uk SHAKESPEARE UNDERWRITING: Appoints Tenon Recovery Administrator --------------------------------------------------------------- Dilip K. Dattani and Patrick Ellward of Tenon Recovery were appointed joint administrators of Shakespeare Underwriting Limited (Company No 03562592) on Jan. 23. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Shakespeare Underwriting -- http://www.shakespeareuw.co.uk-- was formed in August 1998. It develops and markets general insurance products specifically designed for the provincial broker market, and backed by quality service. CONTACT: SHAKESPEARE UNDERWRITING LTD Commercial, Let Property, Household, Contractors All Risks Van Court, Caerphilly Business Park, Van Road, Caerphilly CF83 3ED Tel: 02920 407 100 Fax: 02920 407 109 E-mail: caerphilly@shakespeareuw.co.uk SOCK SHOP: Retailer Appoints Poppleton & Appleby Administrator -------------------------------------------------------------- A. Turpin and M. T. Coyne of Poppleton & Appleby were appointed joint administrators of Sock Shop Limited (Company No 3222658) on Jan. 25. Its registered office is at Bridge Mill, Cowan Bridge, Lancaster, Lancashire. The company retails clothing. CONTACT: SOCK SHOP LTD Bridge Mill, Cowan Bridge, Carnforth, Lancashire LA6 2HS Tel: 01524-271071 POPPLETON & APPLEBY 35 Ludgate Hill, Birmingham B3 1EH Tel: 0121 200 2962 Web site: http://www.pandabirmingham.co.uk/ STYLACATS LIMITED: Creditors Meeting Set Feb. 16 ------------------------------------------------ Creditors of Stylacats Limited (Registered No 03710631) will meet on Feb. 16, 2006, 11 a.m. at Commercial Buildings, 11-15 Cross Street, Manchester. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to D J Power, joint administrator of BDO Stoy Hayward LLP, Commercial Buildings, 11-15 Cross Street, Manchester not later than 12 noon on Feb. 15, 2006. About the Company Stylacats Ltd has developed and patented a range of ligands that promote enhanced chiral selectivity used in the manufacture of pharmaceutical compounds. The company owns a number of Trifer/ Ferrocene derivative ligand patents. Headquartered in Manchester, BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the UK member firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries. Its services include: audit and assurance, business restructuring, corporate finance, disputes and investigations, investment management, risk assurance services, tax services, and valuations. TEXTILE MILL: Names Administrators from Tait Walker --------------------------------------------------- Gordon S. Goldie and Allan David Kelly of Tait Walker were appointed administrators of Textile Mill Warehouse Limited (Company No 04249967) on Jan. 24. CONTACT: TEXTILE MILL WAREHOUSE LTD Hill House Bowsers Hill, Newcastle-upon-Tyne, NE17 7AY Tel: 01228599805 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/ YORKSHIRE COLOURS: Meeting of Creditors Set Feb. 14 --------------------------------------------------- Creditors of Yorkshire Colours Limited will meet on Feb. 14, 2006, 3 p.m. at KPMG LLP, 1 The Embankment, Neville Street, Leeds LS1 4DW. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to R D Fleming, joint administrator of KPMG LLP, 1 The Embankment, Neville Street, Leeds LS1 4DW not later than 12 noon, Feb. 13, 2006. About the Company Headquartered in Leeds, Yorkshire Colours Ltd supplies intracid Rhodamine WT liquid. CONTACT: YORKSHIRE COLOURS LTD Kirkstall Road, Leeds LS3 1LL United Kingdom Tel: 44 (0) 113 244 3111 Fax: 44 (0) 113 245 2529 KPMG LLP 1 The Embankment Neville Street Leeds West Yorkshire LS1 4DW Tel: 0113 231 3332 Fax: 0113 231 3183 E-mail: richard.fleming@kpmg.co.uk * European TMT Companies Get Issuer Default Ratings from Fitch -------------------------------------------------------------- Fitch Ratings assigned Issuer Default ratings to companies in the European Telecommunications, Media and Technology sectors. Revised Senior Unsecured ratings now apply to the senior unsecured bond issues of these entities. IDRs reflect the ability of an issuer to meet senior financial commitments on a timely basis, effectively becoming the benchmark probability of default. Securities in an issuer's capital structure will be rated higher, lower, or the same as the IDR on the basis of their relative recovery prospects. The process of establishing ratings for the obligations of issuers rated between 'AAA' and 'BB-' will refer, for the most part, to aggregate recoveries on the defaulted bond market as a whole for that sector and not to issuer-specific analysis since assumptions on enterprise value and creditor mass at default for these entities would be largely arbitrary. For this reason, recovery assessments and thus individual issue ratings will be based more on the long-term averages of recovery for that type of security, after giving consideration to additional issues such as collateral value, relative subordination and other determinants of recovery. For issuers rated 'B+' and below, recovery ratings derive from a customized analysis of the individual issuer and their capital structure, assuming emergence from a default-inducing stress scenario. Existing Outlooks and Rating Watch status assigned to the former Senior Unsecured, counterparty or other issuer ratings remain unchanged and apply to the IDRs for the issuers. The Issuer Default ratings are listed below. Issuers highlighted with (1) denote cases where the IDR for this issuer differs from the previously assigned Senior Unsecured rating. (2) denotes cases where this issuer's secured, unsecured or subordinated debt rating has changed from the previously assigned debt rating. Telecom Issuers: -- Alcatel S.A.: BBB- Outlook Stable; -- ASML Holding N.V.: BB- Outlook Positive; -- BT Group PLC: A- Outlook Negative; -- Cableuropa S.A.: B Outlook Positive; -- Centertelecom: B- Outlook Negative; -- Deutsche Telekom AG: A- Outlook Stable; -- Ericsson Telefonaktiebolaget L.M.: BBB Outlook Positive; -- France Telecom S.A.: A- Outlook Stable; -- Hellenic Telcommunications Org. S.A.: BBB Outlook Stable; -- JMTS: LTFC: BB Outlook Stable; LTLC: BBB- Outlook Stable; -- Kabel Deutschland GmbH: BB- Outlook Stable; -- Kazakhtelekom: 'BB' Outlook Stable; -- NTL Inc.: 'BB-' RWN; -- Nokia Corporations: A+ Outlook Negative; -- O2: BBB+ Outlook Stable; -- OAO Dalsvyaz: B Outlook Stable; -- OAO Megafon: BB Outlook Stable; -- OAO Northwest Telecom: B+ Outlook Stable; -- OAO Sibirtelecom: B+ Outlook Stable; -- OAO Uralsvyazinform: B+ Outlook Negative; -- Portugal Telecom S.A.: A- Outlook Stable; -- Royal KPN N.V.: BBB+ Outlook Stable; -- SFR: A- Outlook Stable; -- Sistema Joint Stock Financial Corp: B+ Outlook Stable; -- Tele Denmark Corporation: BBB+ Rating Watch Negative; -- Telia Sonera: A- Outlook Stable; -- Telecom Italia S.p.A.: A- Outlook Negative; -- Telenet Bid Co. N.V.: B+ Outlook Stable; -- Telefonica S.A.: A- Outlook Stable; -- Telekomunikacja Polska S.A.: BBB+ Outlook Stable; -- Tiscali S.p.A.: CCC Outlook Stable (1); -- TIM Hellas Telecommunications S.A.: B Outlook Stable; -- Turkcell Iletsimtlizmetlen AS: LTFC: BB- Outlook Positive; -- LTLC: BB Outlook Positive; -- Vodafone Group PLC: A Outlook Stable; and -- Wind Telecommunications S.p.A.: B+ Outlook Stable (2). MEDIA ISSUERS: -- Bertelsmann AG: BBB+ Outlook Stable; -- BskyB PLC: BBB Outlook Stable; -- DMGT PLC: BBB Outlook Stable; -- Dogan Yayin Holding A.S.: LTFC: B+ Outlook Stable; LTLC: B+ Outlook Stable; -- EMAP PLC: BBB+ Outlook Negative; -- Hurriyet Gazetecilik Ve matbaacilik A.S: LTFC: BB- Outlook Positive; -- LTLC: BB Outlook Positive; -- ITV PLC: BBB Outlook Stable; -- Pearson PLC: BBB+ Outlook Stable; -- Prosiebensat.1 Media AG: BBB- Outlook Positive; -- Reed Elsevier PLC: A- Outlook Positive; -- Reuters Group PLC: A Outlook Stable; -- Wolters Kluwer N.V.: BBB Outlook Stable; -- WPP Group PLC: BBB Outlook Positive; and -- Vivendi Universal S.A.: BBB Outlook Positive. * Fitch Assigns Issuer Default Ratings to European RLCP Firms ------------------------------------------------------------- Fitch Ratings assigned Issuer Default ratings to companies in the European Retail, Leisure, Consumer Products and Pharmaceutical sectors. Revised Senior Unsecured ratings now apply to the senior unsecured bond issues of these entities. IDRs reflect the ability of an issuer to meet senior financial commitments on a timely basis, effectively becoming the benchmark probability of default. Securities in an issuer's capital structure will be rated higher, lower, or the same as the IDR on the basis of their relative recovery prospects. The process of establishing ratings for the obligations of issuers rated between 'AAA' and 'BB-' will refer, for the most part, to aggregate recoveries on the defaulted bond market as a whole for that sector and not to issuer-specific analysis since assumptions on enterprise value and creditor mass at default for these entities would be largely arbitrary. For this reason, recovery assessments and thus individual issue ratings will be based more on the long-term averages of recovery for that type of security, after giving consideration to additional issues such as collateral value, relative subordination and other determinants of recovery. For issuers rated 'B+' and below, recovery ratings derive from a customized analysis of the individual issuer and their capital structure, assuming emergence from a default-inducing stress scenario. Existing Outlooks and Rating Watch status assigned to the former Senior Unsecured, counterparty or other issuer ratings remain unchanged and apply to the IDRs for the issuers. The Issuer Default ratings are listed below. Issuers highlighted with an (1) denote cases where the IDR for this issuer differs from the previously assigned Senior Unsecured rating. (2) denotes cases where this issuer's secured, unsecured or subordinated debt rating has changed from the previously assigned debt rating. European Food, Drinks and Beverages: -- Anadolu Efes Biracilik ve Malt Sanayii A.S.: Foreign Currency IDR 'BB-' Outlook Positive; -- Local Currency IDR 'BBB-'; Rating Watch Negative; -- Cadbury Schweppes PLC: 'BBB' Outlook Positive; -- Carlsberg Brewery A/S: 'BBB-' Outlook Stable; -- Coca-Cola Icecek Anonim Sirketi: Foreign Currency IDR 'BB-' Outlook Positive; Local Currency IDR 'BBB' Outlook Stable; -- Diageo PLC: 'A+' Outlook Stable; -- Kamps AG: 'BB-' Rating Watch Negative; -- Nestle S.A.: 'AAA' Outlook Stable; -- Regentrealm Ltd.: 'B-' Outlook Negative (2); -- SABMiller PLC: 'BBB' Outlook Stable; -- Scottish & Newcastle PLC: 'BBB-' Outlook Stable; -- Unilever N.V.: 'A+' Outlook Stable; -- Unilever PLC: 'A+' Outlook Stable; and -- United Biscuits Finance PLC: 'B-' Outlook Negative. European Food Retail: -- Carrefour: 'A+' Outlook Negative; -- Casino Guichard-Perrachon SA: 'BBB-' Outlook Stable; -- J Sainsbury plc: 'BBB' Outlook Negative; -- Royal Ahold N.V.: 'BB' Outlook Positive; and -- Tesco PLC 'A+': Outlook Stable. European Retail: -- Boots Group PLC: 'BBB+' Rating Watch Negative; -- DSG international PLC: 'BBB+' Rating Watch Negative; -- GUS PLC: 'BBB+' Outlook Stable; -- Focus DIY (Finance) PLC: 'B-' Outlook Negative (2); -- Focus DIY (Investments) Ltd.: 'B-' Outlook Negative; -- Kingfisher PLC: 'BBB+' Outlook Negative; -- Marks & Spencer Group PLC: 'BBB+' Outlook Negative; -- Metro AG: 'BBB' Outlook Stable; -- Next PLC: 'BBB' Outlook Stable; -- Vendex KBB: 'BB-' Outlook Stable (2); -- Victoria Acquisition III B.V.: 'BB-' Outlook Stable (2); and -- WH Smith PLC: 'BB-' Outlook Stable. European Hotels: -- Accor SA: 'BBB' Outlook Stable; -- De Vere Group PLC: 'BBB' Outlook Negative; -- Hilton Group PLC: 'BBB+' Rating Watch Negative; -- Sol Melia, S.A.: 'BB+' Outlook Stable; and -- Whitbread PLC: 'BBB' Outlook Negative. European Luxury Goods and Foodservice: -- Brake Bros Acquisition PLC: 'B' Outlook Stable (2); -- Brake Bros Finance PLC: 'B' Outlook Stable (2); -- Compass Group PLC: 'BBB+' Outlook Stable; -- LVMH Moet Hennessy-Louis Vuitton: 'BBB' Outlook Positive; -- Safilo S.p.A.: 'B' Rating Watch Positive (2); -- Safilo Capital International S.A.: 'B' Rating Watch Positive; -- Sodexho Alliance S.A.: 'BBB' Outlook Stable; and -- Waterford Wedgwood PLC: 'CCC' Outlook Negative (2). European Pharmaceutical and Healthcare: -- AstraZeneca PLC: 'AA+' Outlook Stable; -- BUPA Finance PLC: 'A-' Outlook Stable; -- GlaxoSmithKline PLC: 'AA' Outlook Stable; -- Novartis AG: 'AAA' Outlook Stable; -- Roche Holding Ltd.: 'AA-' Outlook Stable; and -- Sanofi-Aventis S.A.: 'AA-' Outlook Stable. European Tobacco: -- Altadis S.A.: 'BBB+' Outlook Stable; -- British American Tobacco PLC: 'A-' Outlook Negative; -- Gallaher Group PLC: 'BBB' Outlook Stable; and -- Imperial Tobacco Group PLC: 'BBB' Outlook Stable. RLCP - Other: -- Henkel KGaA: 'A-' Outlook Stable; and -- Rank Group PLC: 'BB+' Rating Watch Negative. ********* 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *