/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060308.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, March 8, 2006, Vol. 7, No. 48 Headlines F I N L A N D BENEFON OYJ: Dec. 31 Balance Sheet Upside-Down by EUR2.33 Mln G E R M A N Y AAREAL BANK: Fitch Affirms Individual Rating at C HKU GROSSKUECHENTECHNIK: Court Begins Bankruptcy Proceedings HOBA HEIZUNG: Court Stays Pending Proceedings IGNIS-BRANDSCHUTZ: Registration of Claims Ends Today INTERTAINMENT AG: Rudiger Baeres Resigns from Board MAK BAUMANAGEMENT: Creditors' Meeting Slated for April 19 MWN GASTRO: Claims Filing Period Ends Today NEW ENERGY: Court Appoints Provisional Administrator PETER CROON: Court to Verify Claims on April 4 RAIMUND WAGNER: Saarbruecken Court Rules on Bankruptcy RISTORANTE IL SORRISO: D. Wittkowski Leads Bankruptcy Process STEFAN MAIER: Insolvency Report Out by Early May STELLS-GMBH: Duisburg Court Starts Insolvency Procedure TIM - GMBH: Creditors' Meeting Set on April 20 TS DIENSTLEISTUNG: Manuel Sack Takes Over Operations TUNIT GMBH: Names Dr. Wolfgang Kohler Provisional Administrator WASSERGARTEN DESSAU: Dessau Court Halts Pending Proceedings I R E L A N D ELAN CORP: Posts US$58.3 Million Fourth Quarter 2005 Net Loss I T A L Y SAFILO S.P.A.: Moody's Upgrades Corporate Family Rating to Ba3 TISCALI S.P.A.: Fitch Sustains CCC on Long-term IDR K A Z A K H S T A N KIVA AKTAU: Bankruptcy Proceedings Begin KK DIDAR: Mangistau Court Opens Bankruptcy Proceedings NIVA HOLDING: Creditors Have Until March 17 to Register Claims NUR B: Court Begins Bankruptcy Proceedings in Akmola SERVICE AUDIT: Creditors' Claims Due Next Week ZERNOLUKS: Declared Bankrupt by Kostanai Court K Y R G Y Z S T A N GERMANY STAR: Sets Proofs of Claim Filing Deadline MAK-ALTYN: Sets April 21 Claims Bar Date TBM INTERNATIONAL: Insolvency Spells Dead End VOSTOK PETROLIUM: Proofs of Claims Due Mid April N E T H E R L A N D S ROYAL SHELL: Buys Back 1 Million A Shares for Cancellation VEKOMA INT'L: U.S. Bankruptcy Court Approves Chapter 15 Petition P O L A N D TVN S.A.: Revenue Growth Prompts Moody's Positive Outlook R U S S I A AGRO-PROM-DOR-STROY AKSUBAEVSKIY: Succumbs to Bankruptcy AGRO-VET-SERVICE: Bankruptcy Supervision Procedure Begins BALAKHTINSKOYE: Under Bankruptcy Supervision ICE: Bashkortostan Court Brings In Insolvency Manager KLIMOVO-AGRO-KHIMIYA: Claims Filing Period Ends March 28 MONTAZHNIK: Undergoes Bankruptcy Supervision Procedure POVOLZHSKAYA: Names B. Andreev to Take Over Helm PRIBOY: Deadline for Proofs of Claim Set on April 4 RAMONSKAYA: Declared Insolvent by Voronezh Court SITRONICS FINANCE: Fitch Puts B- to US$200 Million Notes URALSVYAZINFORM: Posts Preliminary 2005 Financial Results ZARECHNOYE: Bankruptcy Hearing Set Next Month S P A I N BANKINTER 12: Fitch Junks Rating on EUR11.3 Mln Series E Notes U K R A I N E AVISAN: Declared Insolvent by Lviv Court BORSHIV: Viktor Kapitonov Takes Over Operations BUDSNABRESURS-K: Under Bankruptcy Supervision KIYIVSKA: Bankruptcy Supervision Starts TECHNO-TRADE: Succumbs to Bankruptcy WESTERN EXPRESS: Yaroslav Onushkanich to Liquidate Assets U N I T E D K I N G D O M 786 CLOTHING: Fashion Retailer Succumbs to Bankruptcy ABBOTT AUTOCHECK: Taps Portland Business to Administer Assets ALUMA LTD: Wholesalers Begin Winding Up Proceedings ASMEC ELECTRONIC: Administrators Take Over Helm BERKELEY BERRY: Completes GBP2.4 Million Sale to Tenet Group BRITISH AIRWAYS: February 2006 Traffic Statistics Up 3.6% BRITISH AVIATION: US Bankruptcy Court Closes Sec. 304 Proceeding CABLE & WIRELESS: Executive Director Buys 1 Million Shares CABLE & WIRELESS: Employee Share Trustees Dispose of Shares CHEYNE CREDIT: Fitch Assigns BB Rating to EUR30 Mln Class V Bond CORUS GROUP: Fitch Affirms EUR800 Mln Senior Notes at B+ COUNTY AMBULANCE: Brings In Administrator From Crawfords D2 CONTRACTS: Creditors Ratify Joint Liquidators' Appointment DENBAR U.K.: Grooming Specialist Hires Administrator ELITE ELECTRICAL: Taps Springfields to Administer Assets EXEL SCAFFOLDING: Appoints Rothman Pantall Administrator FLEECE LIMITED: Hires Elwell Watchorn Administrator INTERPANE GLASS: Joint Administrators Enter Firm J K BADMAN: Names Joint Administrators from BDO Stoy Hayward KJM ACCESSORIES: Administrator from Sharma & Co Moves In LINK ELECTRICAL: Bottomley & Co. to Administer Assets MASSIVE RECORDS: Retailer Brings In Joint Administrators MFI FURNITURE: Deutsche Bank Holds 7.01% Notifiable Equity Stake MISYS PLC: Transfers 1,019 Shares to Scheme Participants MORRIS SINGER: Liquidates Assets & Names Administrators OPTEX LIMITED: Asher Miller Takes Over Operations RANK GROUP: Cancels 1.6 Million Shares in Repurchase Program RANK GROUP: Moody's Downgrades Debt Ratings to Ba2 RANK GROUP: Fitch Lowers Long-term IDR to BB-; Outlook Negative RANK GROUP: S&P Lowers Rating To BB-/B with Stable Outlook S. DA VINCI: Members Agree to Voluntary Liquidation SEG LIMITED: Financial Woes Trigger Liquidation Proceedings SPRAYS INTERNATIONAL: Manufacturer Names Joint Administrators STRATFORDS OF NEWARK: Shoe Retailer Names Joint Administrators SYREN LIMITED: Calls On Tenon Recovery to Administer Assets TTL (2005): Joint Administrators Move In ZETHICS LTD: Liquidator Sets March 27 Claims Bar Date ********** ============= F I N L A N D ============= BENEFON OYJ: Dec. 31 Balance Sheet Upside-Down by EUR2.33 Mln ------------------------------------------------------------- Benefon Oyj revealed its financial results for the 12-month period ended Dec. 31, 2005. Benefon Oyj reported a EUR3.191 million net loss on EUR7.562 million of net sales for the twelve months ended Dec. 31, 2005, compared to an EUR8.758 million net income on EUR7.033 million of net sales for the twelve months ended Dec. 31, 2004. At Dec. 31, 2005, Benefon Oyj's balance sheet showed EUR4.97 million in total assets and EUR7.30 million in total liabilities, resulting in a EUR2.33 million stockholders' deficit. Financing On Oct. 26, 2005, the company released an update to financial projections for financial year 2005. As emphasized in the company's earlier communications, first projections released in late May 2005 were highly dependent on securing the financing plan and finalizing the new product development. Due to unexpected delays in realizing the financing plan, also new product development was delayed correspondingly, which had direct impact on sales during the last quarter. The company reacted to this information without delay and updated the projections as soon as it appeared that due to extensive preparations the realization of the financing solution was likely to be delayed until early 2006. The company announced on Oct. 27, 2005, that it had entered into a manufacturing agreement for its new personal navigation phone with China Putian. At the same the company also entered into a distribution agreement with China Putian International who will distribute Benefon products and services to mobile operators, retailers and enterprise customers in all of Mainland China. Relating to the agreed manufacturing and distribution cooperation, it was also agreed with China Putian to examine potential for establishing a joint venture in China for developing and producing Benefon GPS mobile phones and mobile telematics service solutions by the end of April 2006. The company raised in November and December 2005 additional financing of approximately EUR934,000 by issuing a convertible bond loan and from share subscriptions by virtue of issued option rights. On Dec. 22, 2005, the company published an update regarding the status of prepared financing plan and anticipated financial result for financial year 2005 based on latest information. The finances of the company were strengthened during the reporting period by means of: -- a licensing arrangement of R&D-deliverables; -- capital loans; and -- a convertible bond loan and option rights, with which the company received an additional financing of approximately EUR4.68 million. The capital of the raised capital loans and the convertible bond loan were used in full for set-off to subscribe for new shares in the directed share issue of January 2006. Reorganization Program The Company signed an agreement in April 2005 with the controller of the reorganization program and the main collateralized creditors -- Finnvera, OKO and Sampo Bank -- to revise the plan to conclude by June 30, 2005, instead of Dec. 31, 2008. The District Court of Turku approved the application in mid-June last year. According to the approved revision, the company repaid all non-collateralized debts under the plan ahead of schedule. At the same time the non-collateralized creditors of the Company were paid additional payments, which more than doubled their proceeds under the program. In June 2005, the Company paid approximately EUR1.1 million in reorganization debts and additional payments. At the same, the plan controller withdrew the regression suits pending in the Helsinki district court. Furthermore, the company and the collateralized creditors agreed that the latter will: -- waive all demands to all receivables from the Company; and -- release all collateral being held, provided that the agreed financial covenants are fulfilled but in any case at the latest on Sept. 30, 2008. The amount of those receivables with accrued interest is approximately EUR1.6 million, which amount has been booked as income in the consolidated financial statements in accordance with the IFRS- standards. Equity Financing The company raised an equity loan of EUR1,200,000 arranged by Benecap Limited to finance the payments required by the agreement for early conclusion of the reorganization program. As part of the negotiated loan terms, the company issued a total of 2,160,000 series 2004A option rights to the investors who had provided the funds for the loan capital. A licensing arrangement for product development deliverables with Benecap Limited was reported by the company on April 12, 2005. The arrangement includes an option for Benefon to purchase the license rights under pre-agreed terms. According to the terms of the licensing agreement, the company committed to issue a maximum of 2,340,000 option rights Benefon 2004A to be directed to investors delivering the funds needed to acquire the licenses. As published on July 6, 2005, the company raised an equity loan of EUR1,250,000 arranged by Benecep Limited in order to secure the completion of the published new product program and associated component purchases and to secure the financing program currently in progress. As part of the negotiated loan terms, the company committed to grant a total of 2,500,000 option rights Benefon 2004A to investors providing the funds for loan capital. Executive Changes On July 18, 2005, the company disclosed the appointment of Jonathan Bate as the company's new chief executive officer. Former CEO Tomi Raita will take over as chief operating officer. Mr. Bate started his work as the CEO on Sept. 19, 2005. The extraordinary general meeting of Sept. 5, 2005, authorized the Board to resolve about increase of share capital by means of a new share issue pursuant to shareholders' pre-emptive rights, which authorization was later cancelled by the extraordinary general meeting on Jan. 31, 2006. About Benefon Oyj Headquartered in Salo, Finland, Benefon Oyj -- http://www.benefon.com/-- provides mobile telematics solutions for saving lives, securing assets and improving field management. It applied for statutory corporate reorganization with the court of first instance in Turku on April 24, 2003 after failing to get funding on time. In June this year, Benefon decided to end the reorganization program ahead of schedule. The decision of the Turku District Court became legally enforceable on June 20, 2005 and the Company reported after the end of the period on July 4, 2005 that in accordance with the approved program amendment it had paid off all non- collateralized debt. At the same time, the Company also paid to non-collateralized creditors of the Company additional payments, which more than doubled the payments to the non-collateralized creditors determined in the reorganization program. It will launch a directed share issue this month to secure sufficient long-term financing to meet projected revenue and net income numbers. Benefon is facing a patent suit filed against it by Magi.tel in Rome, Italy. ============= G E R M A N Y ============= AAREAL BANK: Fitch Affirms Individual Rating at C ------------------------------------------------- Fitch Ratings affirmed Aareal Bank AG's ratings at Long-term Issuer Default BBB+, Short-term F2, Individual C and Support 5. The Outlook remains Stable. At the same time, the agency has affirmed the ratings for Aareal Hypothekenbank AG at Long-term Issuer Default BBB+, Short-term F2 and Support 2 and simultaneously withdrawn them, as it no longer exists as a separate legal entity. Furthermore, Fitch also affirmed and withdrawn the AAA rating on AarealHyp's outstanding mortgage and public sector Pfandbriefe and assigned a AAA rating to the mortgage and public sector Pfandbriefe of Aareal. These Pfandbriefe were transferred together with the corresponding cover assets to Aareal from AarealHyp on March 3, 2006. These rating actions follow the merger of AarealHyp into Aareal Bank, which has become legally effective with the registration into the commercial register on March 3, 2006. Fitch's Financial Institutions Team's Sabine Bauer said, "AarealHyp has so far already been an integral part of Aareal group, given AarealHyp's previously strategic importance as issuer of Pfandbriefe for Aareal and the existence of a profit and loss transfer agreement," "The integration of AarealHyp into Aareal is a further step of the optimization of its participation portfolio and contributes to the group's reduction of complexity, which is part of Aareal's strategic review process initiated by its new Chief Executive Dr. Wolf Schumacher," she added. The German Pfandbrief Act allows all German banks fulfilling license criteria to issue Pfandbriefe and gives current covered bond issuers the opportunity to pursue a wider range of business activities. In accordance with this, AarealHyp has been integrated into Aareal's operations and its license to issue covered bonds has been transferred to Aareal following the German regulator BaFin's approval in November 2005. Aareal is a property financing specialist, offering services to international commercial investors and developers. It offers property lending, structured finance services, real estate asset management and consulting services, mainly in the area of property management. Aareal was established in June 2002, when the property financing business was spun off from DEPFA group into a new, entirely separate entity. HKU GROSSKUECHENTECHNIK: Court Begins Bankruptcy Proceedings ------------------------------------------------------------ The District Court of Chemnitz opened bankruptcy proceedings against HKU Grosskuechentechnik Fischer & Kulbach GmbH on Feb. 1. 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 Dr. Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Chemnitz, Saal 24, im Gerichtsgebaude, Fuerstenstrasse 21, at 11:00 a.m. on April 25, 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: HKU GROSSKUECHENTECHNIK FISCHER & KULBACH GmbH Attn: Kurt Fischer, Manager Hauptstrasse 56b, 09661 Bockendorf Stadt Hainichen Dr. Stephan Thiemann, Administrator Leipziger Str. 62, 09113 Chemnitz Web: http://www.pluta.net/ HOBA HEIZUNG: Court Stays Pending Proceedings --------------------------------------------- The District Court of Karlsruhe opened bankruptcy proceedings against HOBA Heizung, Sanitar, Kundendienst GmbH on Feb. 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Karlsruhe, Schlossplatz 23, 76131 Karlsruhe, Saal IV/1 OG, at 9:00 a.m. on April 4, 2006, at which time court-appointed provisional administrator Andreas Fischer 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: HOBA HEIZUNG, SANITAR, KUNDENDIENST GmbH Attn: Michael Baumann, Manager Christa Hofer, Manager Rudolf-Freytag-Str. 8, 76189 Karlsruhe Andreas Fischer, Administrator Kriegsstr. 25, 76133 Karlsruhe Tel: (0721) 9338060 IGNIS-BRANDSCHUTZ: Registration of Claims Ends Today ---------------------------------------------------- The District Court of Kleve opened bankruptcy proceedings against IGNIS-Brandschutz GmbH on Feb. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until today, March 8, to register their claims with court-appointed provisional administrator Heinrich Stellmach. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Kleve, Schlossberg 1, 47533 Kleve, at 9:45 a.m. on March 23, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and/or opt to appoint a new insolvency manager. CONTACT: IGNIS-BRANDSCHUTZ GmbH Gruenestrasse 144, 46446 Emmerich Attn: Melanie Gerstmann, Manager Heinrich Stellmach, Administrator Salierstr. 4, 46395 Bocholt INTERTAINMENT AG: Rudiger Baeres Resigns from Board --------------------------------------------------- Intertainment AG disclosed the resignation of Rudiger Baeres as Chairman of the Company's Supervisory Board effective immediately. Mr. Baeres, which stepped down for personal reasons, founded Intertainment in 1993 and took the company to the stock exchange as Chairman of the Board of Management in 1999. At the end of October 2004, he resigned as Chairman of the Board of Management and moved to the Supervisory Board of Intertainment AG. He is the Company's largest shareholder. A new member of the Supervisory Board will shortly be announced to replace Mr. Baeres. Headquartered in Munich, Germany, Intertainment Ag -- http://www.intertainment.de/-- has specialized in acquiring theatrical, video and television film rights with large commercial potential, which it markets in Germany and in other European countries (including Eastern Europe). Among its customers are the most important media enterprises. At the same time Intertainment also acquires the rights to commercialize very viable films for the People's Republic of China, as this huge market (with about 1.3 billion people) is currently practically untapped but in the medium term will realize its big potential. Through its subsidiary Intertainment Animation & Merchandising GmbH, it markets interesting cartoons as well as commercially viable merchandising rights. The Company declared insolvency in January 2006 after failing to repay a EUR10 million loan to local bank HypoVereinsbank. MAK BAUMANAGEMENT: Creditors' Meeting Slated for April 19 --------------------------------------------------------- The District Court of Potsdam opened bankruptcy proceedings against MAK Baumanagement GmbH on Feb. 9. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 24, 2006, to register their claims with court-appointed provisional administrator Thomas Krafft. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Potsdam, Nebenstelle Lindenstrasse 6, 14467 Potsdam, Saal 301, at 1:15 p.m. on April 19, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and/or opt to appoint a new insolvency manager. CONTACT: MAK BAUMANAGEMENT GmbH Sebastian-Bach-Strasse 21 A, 14513 Teltow Attn: Petrik Meincke, Manager Thomas Krafft, Administrator Jagerallee 37 H, 14469 Potsdam MWN GASTRO: Claims Filing Period Ends Today ------------------------------------------- The District Court of Essen opened bankruptcy proceedings against MWN Gastro GmbH on Feb. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until today, to register their claims with court- appointed provisional administrator Dr. Guenter Trutnau. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Essen, Zweigertstr 52, 45130 Essen, 2. OG, gelber Bereich, Saal 293, at 1:10 p.m. on March 23, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and/or opt to appoint a new insolvency manager. CONTACT: MWN GASTRO GmbH Laupendahler Landstr. 11, 45239 Essen Attn: Andrea Wiesmayr, Manager Faunastr. 2A, 44863 Bochum Dr. Guenter Trutnau, Administrator Kettwiger Strasse 2-10, 45127 Essen Tel: (0201) 1095-3 NEW ENERGY: Court Appoints Provisional Administrator ---------------------------------------------------- The District Court of Charlottenburg opened bankruptcy proceedings against new energy management solar GmbH on Feb. 6. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until May 4, 2006, to register their claims with court-appointed provisional administrator Dr. Christoph Schulte-Kaubruegger. 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 10:20 a.m., on March 23, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report at 10:05 a.m., on June 29, 2006, at the same venue. CONTACT: NEW ENERGY MANAGEMENT SOLAR GmbH Gradestr. 40,12347 Berlin Dr. Christoph Schulte-Kaubruegger, Administrator Genthiner Str. 48, 10785 Berlin PETER CROON: Court to Verify Claims on April 4 ---------------------------------------------- The District Court of Saarbruecken opened bankruptcy proceedings against Peter Croon GmbH & Co. KG on Feb. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Saarbruecken, Vopeliusstrasse 2, 66280 Sulzbach, 1. Etage, Saal 13, at 10:50 a.m., on March 21, 2006, at which time the court appointed provisional administrator Norbert Oberdiek will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report at 10:50 a.m., on April 4, 2006, at the same venue. CONTACT: PETER CROON GmbH & Co. KG Berliner Strasse 66, 66839 Schmelz Norbert Oberdiek, Administrator Merziger Str. 82, 66763 Dillingen Tel: 06831-768800 Fax: 06831-7688087 RAIMUND WAGNER: Saarbruecken Court Rules on Bankruptcy ------------------------------------------------------ The District Court of Saarbruecken opened bankruptcy proceedings against Raimund Wagner GmbH on Feb. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until May 15, 2006, to register their claims with court-appointed provisional administrator Marc Herbert. The court will verify the claims set out in the administrator's report at 9:40 a.m., on April 12, 2006 at the District Court of Saarbruecken, Vopeliusstrasse 2, 66280 Sulzbach, 1. Etage, Raum Saal 13. CONTACT: RAIMUND WAGNER GmbH Keltenweg 17, 66636 Tholey-Theley Attn: Roger Wagner, Manager Marc Herbert, Administrator Neikesstrasse 3, 66111 Saarbruecken Tel: 0681 375104 Fax: 0681 36513 RISTORANTE IL SORRISO: D. Wittkowski Leads Bankruptcy Process ------------------------------------------------------------- The District Court of Charlottenburg opened bankruptcy proceedings against "Ristorante Il Sorriso" - Beteiligungsgesellschaft mit beschrankter Haftung on Feb. 7. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 30, 2006, to register their claims with court-appointed provisional administrator Dr. Dirk Wittkowski. 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 11:50 a.m., on March 23, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report at 11:30 a.m., on June 29, 2006, at the same venue. CONTACT: "Ristorante Il Sorriso" - Beteiligung GmbH Kurfuerstenstr. 76,10787 Berlin Dr. Dirk Wittkowski, Administrator Kirchblick 11, 14129 Berlin STEFAN MAIER: Insolvency Report Out by Early May ------------------------------------------------ The District Court of Karlsruhe opened bankruptcy proceedings against Stefan Maier und Guenter Rave GdbR on Feb. 3. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 20, 2006, to register their claims with court-appointed provisional administrator Dr. Helmut Hemmerling. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Karlsruhe, Schlossplatz 23, 76131 Karlsruhe, Saal IV/1 OG, at 10:00 a.m. on May 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 during this meeting, while creditors may constitute a creditors committee and/or opt to appoint a new insolvency manager. CONTACT: STEFAN MAIER UND GUENTER RAVE GdbR Hemrich 4, 75038 Oberderdingen Dr. Helmut Hemmerling, Administrator Talstr. 108, 70188 Stuttgart Tel: (0711) 168670 STELLS-GMBH: Duisburg Court Starts Insolvency Procedure ------------------------------------------------------- The District Court of Duisburg opened bankruptcy proceedings against Stells-GmbH on Feb. 7. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 25, 2006, to register their claims with court-appointed provisional administrator Dr. Andreas Ropke. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Duisburg, Kardinal-Galen- Strasse 124-130, 47058 Duisburg, II. Etage, Zimmer 205, at 9:00 a.m. on April 25, 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: STELLS-GmbH Freihafen 4, 47138 Duisburg Attn: Irina Strelnikova, Manager Corellistr. 96, 40593 Duesseldorf Dr. Andreas Ropke, Administrator Dammstr. 26, 47119 Duisburg TIM - GMBH: Creditors' Meeting Set on April 20 ---------------------------------------------- The District Court of Chemnitz opened bankruptcy proceedings against TIM - GmbH on Feb. 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 9, 2006, to register their claims with court-appointed provisional administrator Bernward Widera. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Chemnitz, Saal 28, Fuerstenstrasse 21, at 10:00 a.m. on April 20, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and/or opt to appoint a new insolvency manager. CONTACT: TIM - GmbH Attn: Annett Braun, Manager August-Bebel-Strasse 105, 08393 Meerane Bernward Widera, Administrator Buettenstrasse 4, 08058 Zwickau TS DIENSTLEISTUNG: Manuel Sack Takes Over Operations ---------------------------------------------------- The District Court of Hannover opened bankruptcy proceedings against TS Dienstleistung und Verwaltung Limited on Feb. 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 13, 2006, to register their claims with court-appointed provisional administrator Manuel Sack. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Hannover, Saal 226, Hamburger Allee 26, 30161 Hannover, at 2:00 p.m. on April 12, 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: TS DIENSTLEISTUNG UND VERWALTUNG LIMITED Helmkestr. 5B, 30165 Hannover Attn: Peter Schmitt, Manager Manuel Sack, Administrator Theaterstr. 3, 30159 Hannover Tel: 0511 36602-0 Fax: 0511 36602-55 TUNIT GMBH: Names Dr. Wolfgang Kohler Provisional Administrator --------------------------------------------------------------- The District Court of Paderborn opened bankruptcy proceedings against Tunit GmbH & Co. KG on Feb. 8. 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 Dr. Wolfgang Kohler. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Paderborn, Bogen 2-4, 33098 Paderborn, II Etage, Saal 216, at 9:20 a.m. on April 7, 2006, at which time the administrator will present his first report on the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and/or opt to appoint a new insolvency manager. CONTACT: TUNIT GmbH & Co. KG Erwitter Strasse 157, 59557 Lippstadt Attn: Marcus Kasting, Manager Armand Schulz, Manager Dr. Wolfgang Kohler, Administrator Marktstrasse 22, 59555 Lippstadt Tel: 02941/979850 Fax: 02941/979870 WASSERGARTEN DESSAU: Dessau Court Halts Pending Proceedings ----------------------------------------------------------- The District Court of Dessau opened bankruptcy proceedings against Wassergarten Dessau GmbH Fachzentrum fuer Gartenteichgestaltung und Aquaristik on Feb. 3. Consequently, all pending proceedings against the company have been automatically stayed. Creditors and other interested parties are encouraged to attend the meeting at the District Court of Dessau, Willy-Lohmann-Str. 33, Saal 123, at 11:35 a.m. on April 4, 2006, at which time the court appointed provisional administrator Michael Schoor 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: WASSERGARTEN DESSAU GmbH FACHZENTRUM FUER GARTENTEICHGESTALTUNG UND AQUARISTIK Ruhrstrasse 30, 06846 Dessau Attn: Hans Barth, Manager Michael Schoor, Administrator Schorlemmerstrasse 2, 04155 Leipzig Tel: 0341/4903650 Fax: 0341/4903699 ============= I R E L A N D ============= ELAN CORP: Posts US$58.3 Million Fourth Quarter 2005 Net Loss ------------------------------------------------------------- Elan Corporation, Plc, reported its fourth quarter and full-year 2005 financial results and provided guidance for its financial outlook for 2006, on Jan. 31. Net Loss The net loss for the fourth quarter of 2005 amounted to $58.3 million, a decrease of 46% over the $107.1 million reported in the same quarter of 2004. The decrease in net loss is principally due to strong growth in product revenue and operating margins in the core business. These improvements in operating results were offset by reduced contract revenue and reduced aggregate gains on the disposal of businesses and investments. For the full-year 2005, the net loss decreased by 3% to $383.6 million from $394.7 million for the full-year 2004. Product revenue from the core businesses grew by 34%, more than compensating for the loss of revenue from products divested in 2004 and reduced contract revenue. Research and development and selling and general administration expenses taken together were flat in 2005 over 2004, despite increased investments in Tysabri(TM) and the Alzheimer's programs, reflecting ongoing cost containment initiatives and the re-allocation of resources. Adjusted EBITDA Negative Adjusted EBITDA was $20.2 million in the fourth quarter of 2005, compared to $80.4 million in the fourth quarter of 2004, an improvement of 75%, and included negative Adjusted EBITDA of $28.9 million related to Tysabri (2004: $49.3 million). The improvement in negative Adjusted EBITDA related to Tysabri reflects the initial launch of Tysabri during the fourth quarter of 2004, the subsequent voluntary suspension of Tysabri in the first quarter of 2005, and reduced spending on both research and development and commercial activities following the completion of a number of clinical trials during 2005. Adjusted EBITDA for the rest of the business, excluding costs related to Tysabri, was positive $8.7 million in the fourth quarter of 2005 (2004: negative $31.1 million). The improvement in Adjusted EBITDA from the rest of the business reflects the strong growth in product revenues and operating margins, partially offset by reduced contract revenues. For the full-year 2005, negative Adjusted EBITDA was $216.9 million, an increase of 7% from $203.2 million in 2004 and included negative Adjusted EBITDA of $163.9 million related to Tysabri (2004: $119.5 million). Adjusted EBITDA for the rest of the business, excluding Tysabri, was negative $53.0 million in the full-year 2005, an improvement of 32% from the $83.7 million recorded in the full-year 2004. This improvement reflects the growth of product revenues and improved operating margins from the core business, more than offsetting the loss of revenue and profits from products divested during 2004 and reduced contract revenue. Negative Adjusted EBITDA related to Tysabri increased to $163.9 million for the full-year 2005 from $119.5 million for the full- year 2004. This reflects the costs of the initial launch of Tysabri in the fourth quarter of 2004, the voluntary suspension of Tysabri in February 2005 and the subsequent safety evaluation, together with the costs of keeping the commercial infrastructure in place in anticipation of the potential re- marketing of Tysabri in 2006. Revenue Total revenue increased 13% to $140.4 million in the fourth quarter of 2005 from $123.8 million in the fourth quarter of 2004. For the full-year, total revenue increased by 2% to $490.3 million for 2005 from $481.7 million for 2004. Revenue is analyzed below between product revenue generated from the core business, revenue arising from products that have been divested and contract revenue. At Dec. 31, 2005, Elan's balance sheet showed US$2.34 million in total assets, US$2.32 million in total liabilities and US$16.9 million in stockholders' equity. A full copy of its financial results is available free of charge at http://bankrupt.com/misc/ElanResults.htm Kelly Martin, Elan's president and chief executive officer, said, "2005 was a year of unexpected challenges, business opportunity and scientific progress. Operating and financial discipline combined with selective investments in our science and technology allowed us to make advancements in all areas of the company. Progress towards the potential re-marketing of Tysabri, further developments in the immunotherapeutic program for Alzheimer's and growth within our Drug Technology business further demonstrate our commitment to delivering tangible results through a relentless focus on the execution of our plans." Mr. Martin added, "For 2006, we will continue to focus on making measurable progress in our science, technology and commercial activities. Such focus, discipline and alignment will enable us to deliver benefits to patients, shareholders and our employees." Commenting on Elan's fourth quarter and year-end 2005 financial results, Shane Cooke, executive vice president and chief financial officer, said, "Back in February 2005, when we voluntarily suspended the marketing of Tysabri, we set a target of getting the rest of the business to breakeven on an EBITDA basis by the end of 2005 while not compromising revenue growth or the progress of our pipeline through the clinic. We are pleased to report that we achieved this target, an important step in our return to profitability. Product revenue in the fourth quarter of 2005 grew by 30% over last year and reduced costs have led to improved operating margins and a reduction in net losses of 46% to $58.3 million while retaining cash balances in excess of $1 billion." Mr. Cooke added, "We are well positioned to re-market Tysabri and the progress we have made in improving our operating leverage will accelerate our return to profitability." About Elan Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * Moody's Investors Service rates Elan's long-term corporate family rating at Ba3. The company's long-term foreign issuer credit rating and long-term local issuer credit rating carry Standard & Poor's single-B rating. As reported by TCR-Europe on May 2, 2005, the company's net loss for the first quarter of 2005 amounted to US$115.6 million, an increase of 86% over the US$62.2 million reported in the same quarter of 2004. Of the US$74.7 million net operating loss for the first quarter of 2005, US$58.6 million related to Tysabri(TM). Total revenue decreased 31% to US$102.7 million in the first quarter of 2005 from US$148.3 million in the first quarter of 2004. ========= I T A L Y ========= SAFILO S.P.A.: Moody's Upgrades Corporate Family Rating to Ba3 -------------------------------------------------------------- Moody's Investors Service has upgraded the corporate family rating of Safilo S.p.A. and the senior secured facility to Ba3 from B3 and the senior unsecured rating on the notes issued by Safilo Capital International SA to B2 from Caa2. The ratings action conclude the review for possible upgrade initiated on the 8th of November 2005 and was prompted by the completion of the company's IPO according to plan, the relatively stable operating performance over recent months, the debt reduction that followed the IPO and the anticipation that the credit metrics, in particular leverage, will remain relatively strong going forward. The outlook on all ratings is stable. In December 2005, Safilo concluded its IPO on the Italian Stock Exchange. Overall proceeds of EUR 306.2 million, net of listing fees, have been utilized to reduce indebtedness by repaying part of the existing EUR 650 million facilities for EUR 179.6 million and by repaying 35% of the EUR 300 million senior subordinated notes in January 2006 that today stands at EUR 195 million. In addition, Safilo is currently negotiating with banks its senior facility and the company, expect to sign a new facility over the next few months. Moody's would expect the new facility to provide adequate headroom under any potential covenants. During its review Moody's also assessed the company's recent performance in the context of Safilo's long history as a leader in the global wholesale eyewear market, particularly in the premium brand segment, the Group geographic and product diversification of revenues and cash flows, particularly its prescription frames business which provides some stability to its business plan and management's track record of organically growing the business. During FYE December 2005 revenues across all businesses grew by 8.5% compared to previous year, helped mainly by the growth in the license business (+12.2%) and in the Far East (+20%) although the region still represent a small portion of the business. In terms of operating margins, however, Moody's would expect relatively stable margins for the full year 2005 compared to 2004. In addition Moody's recognizes that Safilo is focusing on a restructuring program aimed at cutting cost and increase efficiency by means of workforce reduction and decrease in time to market to reduce inventory levels. While this is expected to have a positive impact on current operating margin and cash flows generation over the intermediate term, according to Moody's, the company still has to prove successful in implementing the cost reduction plan and manage capacity and inventory levels at time of strong competition in the market. The ratings reflect also Moody's concerns over revenue growth visibility due to both the volatility of the fashion and luxury goods market and Safilo's exposure to a portfolio of license brands that represent approximately 80% of overall revenues, further enhanced by the recent loss of the Polo Ralph Lauren brand that represented approximately 10% of Group revenues and the loss of Burberry during 2005. This risk, however, is partially mitigated by Safilo broad portfolio of brands and geographic diversification, the recent extension of key licenses including Dior, Gucci and Giorgio Armani and the signing of a new license with Hugo Boss in November 2005 that starting from January 2007 should partially compensate from the loss of Polo Ralph Lauren that will expire at the end of 2006. Moody's also notes that Safilo remains exposed to significant swing in working capital movements during the year due to the seasonality of the business and to negative movements in the Euro-US dollar exchange rate. In addition Moody's would expect the company to maintain a sustained level of investments going forward in order to preserve its focus on product quality and innovative designs. Furthermore, following years of investments in the European wholesale distribution business, Safilo is expected to expand the Solstice retail chain in the US by increasing the number of stores from the current 54 to approximately 150 within three years. Although the luxury chain enjoys high operating margins and overall investments are expected to be limited, it will take time before new opened stores will contribute to Group's EBITDA, weighing in some measure on Safilo cash generation over the short term. Following the debt repayment through the IPO proceeds, Safilo's leverage improved significantly and improving cash flows from operations and lower interest payments going forward are also expected to facilitate moderate FCF generation over the coming years. Moody's would expect the company to maintain a total adjusted debt (including 6x leases and pension liabilities) over EBITDAR at around 3.0x and an adjusted RCF over net adjusted debt around 15% going forward. The rating or the outlook could improve if Safilo were to sustainably demonstrate a combination of predictable revenue growth, strengthening operating margins and stable free cash flow generation resulting in stronger credit metrics. Moody's however notes that the current size of the company and the expected volatility in profitability due to the exposure to the luxury segment necessitate of stronger credit metrics on average but upward pressure would exist in the case leverage decreases towards the 2.5x and RCF over adjusted debt increases around 20%. Moody's would also expect Safilo to be successful in replace the revenue lost following the expiration in December 2006 of the Polo license The ratings or the outlook could be revised downwards in the event of deteriorating operating margins that would result in compressed cash flows generation and increasing leverage. Moody's will also monitor working capital management and the liquidity profile of the company following the ongoing renegotiation of the bank facility. The stable outlook reflects Moody's opinion that the company is well positioned within the rating category, underpinned by continued demand for its products especially in the stable prescription frames business, expected improvement in cash flow generation and a generally favorable outlook for the industry. Moody's would also expect moderate operating margins improvement going forward and a successful renegotiation of the bank facility. Ratings affected: -- Corporate Family rating of Safilo SpA upgraded to Ba3 from B3; -- EUR352.6 million Senior Secured credit facilities due 2011 rating upgraded to Ba3 from B3; and -- 9.625% EUR195.0 million Senior Notes issued by Safilo Capital International SA due 2013 rating upgraded to B2 from Caa2. The outlook on all ratings is stable. Based in Padua, Italy, Safilo is the world's second largest wholesale eyewear producer and is the worldwide leader in the premium eyewear market segment. For the financial YE December 2005, Safilo generated revenues of EUR1,025.3 million. TISCALI S.P.A.: Fitch Sustains CCC on Long-term IDR --------------------------------------------------- Fitch Ratings sustained Italy-based Tiscali S.p.A.'s Long-term Issuer Default Rating at CCC with Stable Outlook. Tiscali's Short-term rating is downgraded to C from B to be in line with the CCC IDR. At the same time, the agency affirmed Tiscali Finance SA's EUR209 million guaranteed notes at B-/RR2. Director in Fitch's European Leveraged Finance team, Stefano Podesta said, "Tiscali continued to expand sales and profits in 2005. However, even after having refocused resources on three core markets, their cash flow burn rate is not sustainable unless the company secures material new funding in the next few months." "Albeit the company probably retains more financial flexibility than what is implied by EUR30 million of cash available on balance sheet at December 2005, Tiscali will have to act rapidly. We expect significant news from Tommaso Pompei, the new CEO, when he presents his business plan next April," he added. The RR2 recovery rating assigned to Tiscali Finance's guaranteed notes due in September 2006, which are subordinated to both the Silverpoint's senior secured loan and to the mortgage on Tiscali's head office in Sardinia, reflects Fitch's view that even in a scenario of financial distress, the ultimate recovery rate should comfortably exceed 70% of face value. Tiscali's reported sales from ongoing operations of approximately EUR739 million in FY05 were 13% up on FY04, while reported EBITDA of approximately EUR117 million was 51% up on FY04. Notwithstanding this significant increase in profitability, after capital expenditures of EUR156 million, reduced working capital of EUR37.5 million plus interest expenses of EUR28 million, Tiscali had negative cash flow generation in excess of EUR106 million during the year. Italy-based Tiscali is of Europe's major internet service providers with 1.7 million broadband subscribers and approximately 3.0 million dial-up customers as of December 2005. After executing a very significant disposal plan over the past two years, Tiscali has refocused operations from 15 countries to three core markets: the UK, The Netherlands and Italy. =================== K A Z A K H S T A N =================== KIVA AKTAU: Bankruptcy Proceedings Begin ---------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau region commenced bankruptcy proceedings against LLP Kiva Aktau on Jan. 6, 2006, Aktau, micro district 27, 51. CONTACT: THE SPECIALIZED INTER-REGIONAL ECONOMIC COURT OF MANGISTAU REGION Phone: 8 (3292) 41-22-37 KK DIDAR: Mangistau Court Opens Bankruptcy Proceedings ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Mangistau region commenced bankruptcy proceedings against LLP KK Didar on Jan. 9, 2006, Aktau, micro district 27, 51. CONTACT: THE SPECIALIZED INTER-REGIONAL ECONOMIC COURT OF MANGISTAU REGION Phone: 8 (3292) 41-22-37 NIVA HOLDING: Creditors Have Until March 17 to Register Claims -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai region declared LLP Niva Holding bankrupt on Dec. 29, 2005. Proofs of claim will be accepted at Kostanai, Gogol Str. 177a until March 17, 2006. CONTACT: THE SPECIALIZED INTER-REGIONAL ECONOMIC COURT OF KOSTANAI REGION Kostanai, Gogol Str. 177a NUR B: Court Begins Bankruptcy Proceedings in Akmola ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola region commenced bankruptcy proceedings against LLP NUR B on Jan. 9, 2006. CONTACT: THE SPECIALIZED INTER-REGIONAL ECONOMIC COURT OF AKMOLA REGION Akmola region, Kokshetau, 8 Marta Str. 89-48 SERVICE AUDIT: Creditor's Claims Due Next Week ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai region declared LLP Service Audit bankrupt on Dec. 29, 2005. Proofs of claim will be accepted at Kostanai, Gogol Str. 177a until March 17, 2006. CONTACT: THE SPECIALIZED INTER-REGIONAL ECONOMIC COURT OF KOSTANAI REGION Kostanai, Gogol Str. 177a ZERNOLUKS: Declared Bankrupt by Kostanai Court ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai region LLP Zernoluks bankrupt on Dec. 29, 2005. Proofs of claim will be accepted at Kostanai, Gogol Str. 177a until March 17, 2006. CONTACT: THE SPECIALIZED INTER-REGIONAL ECONOMIC COURT OF KOSTANAI REGION Kostanai, Gogol Str. 177a =================== K Y R G Y Z S T A N =================== GERMANY STAR: Sets Proofs of Claim Filing Deadline -------------------------------------------------- LLC GERMANY STAR has declared insolvency. Proofs of claim will be accepted at Bishkek, micro district Djal-23 29-50 on or before April 21, 2006 The company can be contacted at (+996 312) 23 29-50. MAK-ALTYN: Sets April 21 Claims Bar Date ---------------------------------------- LLC Mak-Altyn has declared insolvency. Proofs of claim will be accepted at Bishkek, Kulatova Str. 8 on or before April 21, 2006. The company can be contacted at (+996 312) 65-44-01 TBM INTERNATIONAL: Insolvency Spells Dead End --------------------------------------------- LLC TBM International Transport Co. has declared insolvency. Proofs of claim will be accepted at Bishkek, Umetalieva Str. 81- 60 on or before April 20, 2006 The company can be contacted at (+996 312) 24-39-07 or (0-502) 74-23-33. VOSTOK PETROLIUM: Proofs of Claims Due Mid April ------------------------------------------------ LLC Vostok Petrolium Azia has declared insolvency. Proofs of claim will be accepted at Bishkek, Sovetskaya Str. 170 on or before April 20, 2006 CONTACT: VOSTOK PETROLIUM AZIA Bishkek, Sovetskaya Str. 170 ===================== N E T H E R L A N D S ===================== ROYAL SHELL: Buys Back 1 Million A Shares for Cancellation ---------------------------------------------------------- Royal Dutch Shell plc purchased 800,000 'A' Shares on March 6, for cancellation at a price of 25.87 euros per share. In addition, it purchased 200,000 'A' Shares for cancellation at a price of 1,775.68 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell plc will be 3,910,325,000. As of that date, 2006 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. Overstatement of Reserves 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. VEKOMA INT'L: U.S. Bankruptcy Court Approves Chapter 15 Petition ---------------------------------------------------------------- The Hon. Leif M. Clark of the U.S. Bankruptcy Court for the Western District of Texas approved on March 2, the chapter 15 petition filed by Philip Willem Schreurs, in his capacity as foreign representative for Vekoma International B.V. and its debtor-affiliates. Mr. Schreurs filed the petition on Feb. 3, 2006 (Bankr. W.D. Tex. Case No. 06-50151), to enjoin U.S. creditors from commencing, continuing or enforcing any action against the Debtors' estates, or otherwise disrupting the Debtors' liquidation proceedings pending in the District Court of Reormond in The Netherlands. On Aug. 24, 2001, the Roermond Court entered an order requiring the liquidation of the Debtors and appointing Mr. Schreurs as curator, the Dutch equivalent of a chapter 7 trustee, in the foreign proceedings. Pending Lawsuit Two of the Debtors, Vekoma International B.V. and Vekoma Manufacturing B.V., along with San Antonio Theme Park, L.P., dba Six Flags Fiesta Texas, were named as defendants in a personal injury lawsuit filed by Rachelle Johnson and pending in the District Court of Bexar County in Texas (Case No. 2001-CI- 08337). Subsequently, Six Flags filed a cross-claim against the Vekoma Debtors seeking recovery based upon theories of: -- contractual indemnity; -- common law indemnity; -- statutory indemnity; and -- statutory contribution. On Jan. 18, 2006, a judgment was signed on the Johnson case granting relief in favor of Six Flags and against the Debtors. D. Ronald Reneker, Esq., of Craddock Reneker & Davis, LLP, disclosed that Mr. Schreurs is continuing with the administration of the bankruptcy estates of the Debtors and no distribution has been made to unsecured creditors. Chapter 15 of the U.S. Bankruptcy Code, which replaced Section 304 petition and became effective Oct. 17, 2005, broadens the mechanism through which representatives of non-US proceedings might obtain relief, including injunctive relief, in the United States, expands the powers of US Bankruptcy Courts, and enhances the rights of both US and non-US creditors. Headquartered in The Netherlands, Vekoma International B.V., manufactured and sold roller coasters, high thrill rides, and family rides that are used in amusement parks throughout the world. Its affiliates include Vekoma Manufacturing B.V., Constructiebedrijf Gebroeders Muurmans B.V., Transquest B.V., Muurmans Beheer BV, Vekoma Onroerend Goed B.V., and Vekoma Technology B.V. D. Ronald Reneker, Esq., of Craddock Reneker & Davis, LLP, represents Mr. Schreurs. As of Feb. 3, 2006, the Debtors estimate between US$50,000 to US$100,000 in assets and US$10 million to $50 million in liabilities. =========== P O L A N D =========== TVN S.A.: Revenue Growth Prompts Moody's Positive Outlook --------------------------------------------------------- Moody's Investors Service changed the outlook of TVN S.A. to positive from stable. The change in outlook reflects TVN's strong operational performance over the past year evidenced by year-on-year revenue growth of 20% and an Adjusted EBITDA margin improvement of 5% to 34%. This has resulted in a significant enhancement in the company's credit metrics e.g. Adjusted Total Debt to Adjusted EBITDAR has improved from 4.7x to 3.5x over the past year, whilst Adjusted Retained Cash Flow to Net Adjusted Debt has increased from 7.4% to 8.8% over the same period. The significant improvement in revenues primarily reflects increased advertising revenues (due to increases in volume combined with average prices increases), increased call television revenues and increased subscription revenues. The EBITDA margin also improved substantially over the period, primarily because programming costs only increased by 9.9% over the year, whilst prime time audience share strengthened. We note, however, that the improvement in net profit was less marked since the 2004 accounts benefited from significant favorable foreign exchanges movements. Apart from TVN's financial improvements the ratings continue to positively reflect TVN's leading position in the Polish broadcasting market, the company's solid advertising share in its key target group and our expectation of high advertising spend growth in the Polish market. The ratings continue to be constrained, however, by the highly competitive environment that characterizes the Polish TV broadcasting market, the company's exposure to foreign exchange movements (primarily the euro: Polish Zloty rate), the company's dependence on the Polish market and the expectation of continued investment in new channels. Furthermore, the ratings continue to factor in the majority ownership of the ITI Group, and the potential for cash leakage from TVN to the ITI Group given its weak financial profile (as evidenced by the company's share buyback scheme which is being used to reduce the ITI Group's obligations to TVN under the ITI receivable). Liquidity is viewed as adequate given the company's operating cash flow generation and its cash balances (of PLN80 million as at 31 December 2005), combined with limited debt amortization until the maturity of the senior notes in 2013. In addition, the company has access to a US$17 million multi-currency senior secured credit facility, which was principally unused at the end of December 2005. The positive outlook reflects Moody's view that the ratings are strongly positioned in the ratings category. There would be further upward pressure on the ratings in the event that the company's operational performance remains solid and results in a further improvement in its operating cash flow, such that its Adjusted Retained Cash Flow to Net Adjusted Debt approaches 10%, whilst maintaining a stable investment policy. Moreover, the notching between the notes and the corporate family rating could be eliminated in the event that the company continues to operate well within the flexibility afforded it under the notes indenture for secured debt incurrence. Whilst considered unlikely at this juncture, there could be downward pressure on the ratings in the event that the company altered its dividend/share buyback policy or invested more than anticipated in new ventures and acquisitions and this resulted in the company becoming free cash flow negative. Affected ratings include the following: TVN S.A. -- Corporate family rating of B1 TVN Finance Corporation plc -- B2 rating of the senior unsecured notes due 2013 The outlook for all ratings is positive. Registered in Poland, TVN S.A. is a leading television broadcaster in Poland and a part of ITI Group. TVN and its subsidiaries own and operate eight television channels (including TVN, TVN 7 and TV 24). For the year ended Dec. 31, 2005, the company reported revenues of approximately PLN860 million. =========== R U S S I A =========== AGRO-PROM-DOR-STROY AKSUBAEVSKIY: Succumbs to Bankruptcy -------------------------------------------------------- The Arbitration Court of Tatarstan republic commenced bankruptcy proceedings against Agro-Prom-Dor-Stroy Aksubaevskiy after finding the open joint stock company insolvent. The case is docketed as A65-16267/2005-SG4-31. Mr. V. Semenov has been appointed insolvency manager. Creditors have until March 28, 2006, to submit their proofs of claim to 420021, Russia, Tatarstan republic, Kazan, Post User Box 364. CONTACT: AGRO-PROM-DOR-STROY AKSUBAEVSKIY 423040, Russia, Tatarstan republic, Aksubaevskiy region, Aksubaevo, Sulcha Str. 80 V. SEMENOV Insolvency Manager 420021, Russia, Tatarstan republic, Kazan, Post User Box 364 AGRO-VET-SERVICE: Bankruptcy Supervision Procedure Begins --------------------------------------------------------- The Arbitration Court of Moscow region has commenced bankruptcy supervision on close joint stock company Agro-Vet-Service. The case is docketed as A40-78499/05-44-191B. Mr. M. Chekrygin has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to: (a) AGRO-VET-SERVICE 113149, Russia, Moscow region, Azovskaya Str. 17, Building 2 (b) Temporary Insolvency Manager 121614, Russia, Moscow region, Post User Box 82 A hearing will take place on May 23, 2006, 11:00 a.m. at the Arbitration Court of Moscow region, hall 773. BALAKHTINSKOYE: Under Bankruptcy Supervision -------------------------------------------- The Arbitration Court of Krasnoyarsk region has commenced bankruptcy supervision on close joint stock company Balakhtinskoye. The case is docketed as A33-31604/2005. Mr. V. Lebedev has been appointed temporary insolvency manager. A hearing will take place on April 21, 2006. CONTACT: BALAKHTINSKOYE 662342, Russia, Krasnoyarsk region, Balakhtinskiy region, Chistoye Pole, Lenina Str. 1 V. LEBEDEV Temporary Insolvency Manager 662521, Russia, Krasnoyarsk region, Berezovskiy region, Berezovka, Post User Box 4 ICE: Bashkortostan Court Brings In Insolvency Manager ----------------------------------------------------- The Arbitration Court of Bashkortostan republic commenced bankruptcy proceedings against Ice (TIN 0277056275) after finding the limited liability company insolvent. The case is docketed as A07-50266/05-G/ADM. Ms. N. Markova has been appointed insolvency manager. CONTACT: N. MARKOVA Insolvency Manager 450005, Russia, Bashkortostan republic, Ufa, Parkhomenko Str. 99 ARBITRATION COURT OF BASHKORTOSTAN REPUBLIC 450057, Russia, Bashkortostan republic, Ufa, Oktyabrskoy Revolyutsii Str. 63A KLIMOVO-AGRO-KHIMIYA: Claims Filing Period Ends March 28 -------------------------------------------------------- The Arbitration Court of Bryansk region commenced bankruptcy proceedings against Klimovo-Agro-Khimiya (TIN 3216000182) after finding the open joint stock company insolvent. The case is docketed as A09-2655/05-27. Mr. A. Leonov has been appointed insolvency manager. Creditors have until March 28, 2006, to submit their proofs of claim to 248000, Russia, Kaluga, Post User Box 29 and at the Arbitration Court of Bryansk region. CONTACT: KLIMOVO-AGRO-KHIMIYA 243040, Russia, Bryansk region, Klimovo, Bryanskaya Str. 51 A. LEONOV Insolvency Manager 248000, Russia, Kaluga region, Post User Box 29 MONTAZHNIK: Undergoes Bankruptcy Supervision Procedure ------------------------------------------------------ The Arbitration Court of Kabardino-Balkariya republic has commenced bankruptcy supervision on open joint stock company Montazhnik. The case is docketed as A20-10049/2005. Mr. A. Popov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to Russia, Kabardino- Balkariya republic, Nalchik, Lermontova Str. 54/203. CONTACT: MONTAZHNIK 361000, Russia, Kabardino-Balkariya republic, Prokhladnyj, Promyshlennaya Str. 90 A. POPOV Temporary Insolvency Manager Russia, Kabardino-Balkariya republic, Nalchik, Lermontova Str. 54/203 POVOLZHSKAYA: Names B. Andreev to Take Over Helm ------------------------------------------------ The Arbitration Court of Chuvashiya republic commenced bankruptcy proceedings against Povolzhskaya after finding the leasing company insolvent. The case is docketed as A79- 16062/2005. Mr. B. Andreev has been appointed insolvency manager. CONTACT: POVOLZHSKAYA 428000, Russia, Chuvashiya republic, Cheboksary, Dezhneva Str. 6 B. ANDREEV Insolvency Manager 428036, Russia, Chuvashiya republic, Cheboksary-36, Post User Box 36 PRIBOY: Deadline for Proofs of Claim Set on April 4 --------------------------------------------------- The Arbitration Court of Moscow has commenced bankruptcy supervision on close joint stock company Priboy. The case is docketed as A40-71020/05-73-175B. Mr. I. Vasilenko has been appointed temporary insolvency manager. Creditors have until April 4, 2006, to submit their proofs of claim to 142190, Russia, Moscow region, Troitsk, Sirenevyj Avenue, 15, Post User Box 2. A hearing will take place on May 16, 2006. CONTACT: PRIBOY 129282, Russia, Moscow region, Polyarnaya Str. 54, Room 4 I. VASILENKO Temporary Insolvency Manager 142190, Russia, Moscow region, Troitsk, Sirenevyj Avenue, 15, Post User Box 2 RAMONSKAYA: Declared Insolvent by Voronezh Court ------------------------------------------------ The Arbitration Court of Voronezh region commenced bankruptcy proceedings against Ramonskaya after finding the close joint stock company insolvent. The case is docketed as A14-19994/2005 166/16b. Mr. D. Blagonravov has been appointed insolvency manager. Creditors have until March 28, 2006, to submit their proofs of claim to Russia, Voronezh region, Srednemoskovskaya Str. 6a. CONTACT: RAMONSKAYA Russia, Voronezh region, Ramon, 50 Let VLKSM Str. 71 D. BLAGONRAVOV Insolvency Manager Russia, Voronezh region, Srednemoskovskaya Str. 6a SITRONICS FINANCE: Fitch Puts B- to US$200 Million Notes -------------------------------------------------------- Fitch Ratings assigned final B- rating to Sitronics Finance S.A.'s USD200 million 7.875% notes due 2009. The notes are guaranteed unconditionally and irrevocably by Concern Sitronics JSC. The final rating concurs with the expected rating assigned on Feb. 14 as there are no material changes in the final bond documentation versus the draft presented to Fitch. Sitronics is the largest technology company in Russia and CIS and a niche player in the world market. It has four major divisions: infocommunications, specializing in telecom equipment and software; microelectronic components; consumer electronics and IT. URALSVYAZINFORM: Posts Preliminary 2005 Financial Results --------------------------------------------------------- Uralsvyazinform, the largest fixed-line and mobile services carrier in the Urals region, presents its preliminary unaudited financial and operational results for 2005 prepared under Russian Accounting Standards. Due to the consolidation of subsidiaries into parent Uralsvyazinform that took place on June 30, 2005, the financial statements of OAO Uralsvyazinform as of 2005 under Russian Accounting Standards comprise the rights, liabilities and results of: -- ZAO Ermak RMS -- OOO Yuzhno-Uralsky Sotovy Telefon -- ZAO Tyumenruscom (mobile businesses) -- OOO Uralcom, and -- ZAO VSNET (data transmission), all of which were presented as of the first half of 2005. Revenues increased by 26% over 2004. Further subscriber additions, both in fixed-line and GSM, increased local rates (monthly subscription fees for local services), revenue gains from new services (broadband internet, intelligent networks, cable TV), and growth of DLD/ILD traffic were the main growth drivers. OIBDA (Operating Income Before Depreciation and Amortization) was up 20% on 2004. As of 2005, OIBDA margin was 34% while operating margin declined to 25%. Higher expenditure is due to the expenses of consolidated subsidiaries that were included in the financial statements of OAO Uralsvyazinform since July 1, 2005. Revenues growth in the main business segments totaled: Local services - 20%; DLD/ILD - 4%; Mobile services - 240%; New services - 91% At the year-end, overall subscriber base totaled 7.3 million, including 3.7 million in GSM. Capex amounted to RUR 9,936.3 million (up 6% on 2004). "In general, we have met the targets and plans for the year," Chief Executive Anatoly UFIMKIN, said. "In 2005, we completed a large-scale reorganization plan that enabled us to operate as a truly single unit where all lines of business are joined together - fixed-line and mobile communications, data and new services. Today, it is our mobile and data transmission businesses that are pushing the company's growth. We will continue our efforts in these business areas in 2006." Headquartered in Perm, Uralsvyazinform, offers data communications, radio and TV-program broadcasting as well as wireless and paging communications. * * * As reported in the Troubled Company Reporter on Dec. 6, 2005, Fitch Ratings has downgraded OAO Uralsvyazinform's (Urals) ratings to Senior Unsecured 'B+' from 'BB-' and National Senior Unsecured 'A-(rus)' from 'A+(rus)'. Following the downgrade, the Outlook is now Negative, the company's two domestic bonds of RUB2 billion and RUB3 billion are also downgraded to 'A-(rus)' from 'A+(rus)'. The Short-term rating is affirmed at 'B'. The downgrade reflects an anticipated increase in Urals' leverage on the back of larger-than-projected capital expenditure and increasing competition in the mobile segment, which led to significant mobile margin erosion. ZARECHNOYE: Bankruptcy Hearing Set Next Month --------------------------------------------- The Arbitration Court of Orenburg region has commenced bankruptcy supervision on close joint stock company Zarechnoye. The case is docketed as A47-16266/2005-14GK. Mr. V. Gusev has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 462100, Russia, Orenburg region, Chebenki, Parkovaya Str. 6. A hearing will take place on April 4, 2006, at 10:10 a.m. CONTACT: ZARECHNOYE 461191, Russia, Orenburg region, Tashlinskiy region, Zarechnoye V. GUSEV Temporary Insolvency Manager 462100, Russia, Orenburg region, Chebenki, Parkovaya Str. 6 Tel/Fax: (3532) 78-12-54 ========= S P A I N ========= BANKINTER 12: Fitch Junks Rating on EUR11.3 Mln Series E Notes -------------------------------------------------------------- Fitch Ratings assigned expected ratings to Bankinter 12 Fondo de Titulizacion Hipotecaria's notes totalling EUR1.25 billion due in December 2043 as follows: a) EUR50 million Series A1: AAA; b) EUR1.102 billion Series A2: AAA; c) EUR13.1 million Series B: A+; d) EUR11.9 million Series C: A-; e) EUR11.3 million Series D: BBB-; and f) EUR11.3 million Series E: CCC. The final ratings are contingent upon receipt of final documents conforming to information already received. The expected ratings on the Class A to D notes are based on the quality of the underlying collateral, the underwriting and servicing capabilities of Bankinter, available credit enhancement and the sound legal and financial structure of the transaction. CE for all Classes of notes will be provided by the subordination of the Classes junior to them and the reserve fund, with the exception of the Class E notes, which are solely collateralized by the reserve fund. This transaction is a cash flow securitization of a EUR1.2 billion static pool of first ranking residential mortgage loans granted by Bankinter. Bankinter is Spain's 10th largest banking group by assets. It is one of the most active players in the Spanish RMBS arena; bringing to the market so far a total of 12 RMBS transactions. It has also issued a securitization of SME loans. The fund will be regulated by Spanish Securitization Law 19/1992 and Royal Decree 926/1998. Its sole purpose is to convert the mortgage participations acquired from the seller into residential mortgage-backed securities. The participations will be subscribed by Europea de Titulizacion S.A. S.G.F.T., on behalf of the fund. The rating on the Class E notes is supported by the recovery rate that noteholders are expected to receive during the life of the transaction, which has been calculated on the basis of principal and accrued interest amounts as a proportion of the original Class E notes balance. The Class A1 notes are expected to amortize on the payment date falling on June 15, 2007. However, if funds are not sufficient to pay off the notes on the scheduled payment date, amortization will continue on each payment date until they have fully amortized. ============= U K R A I N E ============= AVISAN: Declared Insolvent by Lviv Court ---------------------------------------- The Economic Court of Lviv region commenced bankruptcy proceedings against LC Avisan (code EDRPOU 23270995) on Jan. 17, 2006 after finding the limited liability company insolvent. The case is docketed as 6/184-8/173. Mr. Yaroslav Onushkanich has been appointed liquidator/insolvency manager. CONTACT: AVISAN 79007, Ukraine, Lviv region, Dekart Str. 5/6 Mr. Yaroslav Onushkanich Liquidator/Insolvency Manager 79031, Ukraine, Lviv region, Strijska Str. 71-b/3 ECONOMIC COURT OF LVIV REGION 79010, Ukraine, Lviv region, Lichakivska Str. 81 BORSHIV: Viktor Kapitonov Takes Over Operations ----------------------------------------------- The Economic Court of Zhitomir region commenced bankruptcy supervision procedure on Borshiv (code EDRPOU 31019069). The case is docketed as 4/95 B. Mr. Viktor Kapitonov has been appointed temporary insolvency manager. CONTACT: BORSHIV 12251, Ukraine, Zhitomir region, Radomishl district, Borshiv, Slobodi Str. 34 Viktor Kapitonov Temporary Insolvency Manager Ukraine, Zhitomir region, Korostishiv, Bilshovitska Str. 109 A/12 ECONOMIC COURT OF ZHITOMIR REGION 10014, Ukraine, Zhitomir region, Putyatinski Square 3/65 BUDSNABRESURS-K: Under Bankruptcy Supervision --------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy supervision procedure on LLC Budsnabresurs-K (code EDRPOU 33052808). The case is docketed as 43/926. Mr. O. Sherban has been appointed temporary insolvency manager. CONTACT: BUDSNABRESURS-K 03028, Ukraine, Kyiv region, Lisogirska Str. 8 Mr. O. Sherban Temporary Insolvency Manager 01030, Ukraine, Kyiv region, a/b 157 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard 44-B KIYIVSKA: Bankruptcy Supervision Starts --------------------------------------- The Economic Court of Harkiv region commenced bankruptcy supervision procedure on Kiyivska (code EDRPOU 30755355) on Dec. 19, 2005. The case is docketed as 19/112-05. Ms. Nataliya Ivlyeva has been appointed temporary insolvency manager. CONTACT: KIYIVSKA 63661, Ukraine, Harkiv region, Shevchenkivskij district, Borivske Ms. Nataliya Ivlyeva Temporary Insolvency Manager 61189, Ukraine, Harkiv region, S. Tarhova Str. 5/9 ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square 5, Derzhprom 8th Entrance TECHNO-TRADE: Succumbs to Bankruptcy ------------------------------------ The Economic Court of Dnipropetrovsk region commenced bankruptcy supervision procedure on Techno-Trade (code EDRPOU 31677713 260053011369) on Nov. 22, 2005. The case is docketed as B 29/236/05. Ms. Venska Oksana (license AB 1761857 of August 4, 2005) has been appointed temporary insolvency manager. CONTACT: TECHNO-TRADE 51400, Ukraine, Dnipropetrovsk region, Pavlograd, Dniprovska Str. 149/8 Ms. Venska Oksana Temporary Insolvency Manager 49000, Ukraine, Dnipropetrovsk region, Lenin Str. 41 ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a WESTERN EXPRESS: Yaroslav Onushkanich to Liquidate Assets --------------------------------------------------------- The Economic Court of Lviv region commenced bankruptcy proceedings against Western Express (code EDRPOU 31290433) on Jan. 17, 2006, after finding the private enterprise insolvent. The case is docketed as 6/185-8/174. Mr. Yaroslav Onushkanich has been appointed liquidator/insolvency manager. CONTACT: WESTERN EXPRESS 79032, Ukraine, Lviv region, Washington Str. 8 Mr. Yaroslav Onushkanich Liquidator/Insolvency Manager 79031, Ukraine, Lviv region, Strijska Str. 71-b/3 ECONOMIC COURT OF LVIV REGION 79010, Ukraine, Lviv region, Lichakivska Str. 81 =========================== U N I T E D K I N G D O M =========================== 786 CLOTHING: Fashion Retailer Succumbs to Bankruptcy ----------------------------------------------------- Members of 786 Clothing Company Limited passed a resolution to wind up the company during an extraordinary general meeting on Jan. 31, 2006. Director Q. Igbal revealed that the company could no longer continue its business due to financial liabilities. Timothy Calverley, of Haines Watts, was appointed Liquidator to wind up the company's business. CONTACT: 786 CLOTHING COMPANY LIMITED 13 Burlington Street Chesterfield Derbyshire S40 1RS Tel: 01246 230 778 ABBOTT AUTOCHECK: Taps Portland Business to Administer Assets ------------------------------------------------------------- Peter Robin Bacon and Carl Derek Faulds of Portland Business & Financial Solutions Ltd were appointed joint administrators of Abbott Autocheck Limited (Company Number 1742304) on Feb. 16. The company repairs automobiles. Its office is at 111-113 Stafford Road, Croydon, Surrey CR0 4NN. 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 ALUMA LTD: Wholesalers Begin Winding Up Proceedings --------------------------------------------------- Aluma Ltd is winding up its business after members found out that the company could not continue its operations due to its liabilities. Members authorized Andreas Georgiou Kakouris, to lead the winding up operations. CONTACT: ALUMA LTD 2 Fairholme Road Harrow Middlesex HA1 2TN Tel: 020 8861 2698 ASMEC ELECTRONIC: Administrators Take Over Helm ----------------------------------------------- Michael Young and Peter Wastell of Vantis were appointed administrators of Asmec Electronic Solutions Limited (Company Number 4820702) on Feb. 21. About Vantis Headquartered in West Sussex, Vantis Numerica (nka Vantis plc) - - http://www.vantisplc.com/-- provides accounting, business and tax advisory services in the United Kingdom. About the Company Headquartered in Hertfordshire, Asmec Electronic Solutions Limited -- http://www.asmec.com/-- was formed over 25 years ago as an electronic sub contract company, predominantly in support of ICL and Marconi. The company is a fully-fledged contract electronic manufacturer. BERKELEY BERRY: Completes GBP2.4 Million Sale to Tenet Group ------------------------------------------------------------ Berkeley Berry Birch plc completed the sale of the businesses of Berkeley Independent Advisers Limited and Berry Birch & Noble Financial Planning Limited to Tenet Group Limited. The United Kingdom Listing Authority has granted a waiver under Listing Rule 10.8 in respect of the requirement to issue a circular and obtain shareholder approval for this disposal. The total maximum consideration for the disposal is GBP2,350,000, comprising of: -- GBP1,150,000 in respect of BIA and -- GBP1,200,000 in respect of BBN FP. The initial consideration, payable on completion, is GBP900,000, of which GBP700,000 is in respect of BIA and GBP200,000 is in respect of BBN FP. Deferred consideration of up to a maximum of GBP1,450,000 is payable, of which GBP450,000 is in respect of BIA and GBP1,000,000 is in respect of BBN FP. The deferred consideration is payable in two stages: -- with up to GBP200,000 payable after six months in respect of BIA, contingent upon the number of BIA advisers retained by Tenet; and -- up to GBP1,250,000 payable after a year, of which GBP250,000 is payable in respect of BIA and GBP1,000,000 is in respect of BBN FP, contingent upon the turnover in respect of the businesses in the year following completion. In addition, Tenet has assumed estimated net liabilities of GBP700,000 in respect of BIA and estimated liabilities of GBP700,000 in respect of BBN FP. All of the staff working for these businesses have transferred to Tenet, including those staff working for Berkeley Berry Birch Group Support Services Limited, who provide administrative support services to the businesses. BIA BIA is a service supplier and network for Independent Financial Advisers. Approximately 300 IFAs, previously Appointed Representatives of BIA, are now Appointed Representatives of Tenet's Interdependence network, including five IFAs employed by MacRobins plc, a BBB subsidiary which is being retained by BBB. BIA also provided support services to approximately 60 firms who are directly authorized and who will now receive these services from Tenet Support Services Limited. On Feb. 14, 2006, a fellow BBB subsidiary, Berry Birch & Noble Financial Planning (Weston) Limited, which was previously directly authorized, became an Appointed Representative of BIA as part of the BBB Group's overall refinancing plans. Weston will not become an Appointed Representative of Interdependence following completion of the transaction. For the year ended March 31, 2005, BIA reported turnover of GBP39,970,000 and a loss before tax of GBP370,000. The gross assets being sold are approximately GBP4,000,000. BIA is subject to a Decision Notice issued by the Financial Services Authority on July 29, 2005, as a result of a regulatory capital deficit. Following the sale of its business, the FSA has cancelled the permission granted to BIA pursuant to Part IV of the Financial Services and Markets Act 2000. Following the sale of its business, BIA has changed its name to BBB Network Limited. BBN FP BBN FP was previously a national IFA supplying financial planning advice to individual clients via its employed IFAs. BBN FP ceased undertaking regulated activities on Dec. 19, 2005, and certain of it IFAs transferred to Weston as self-employed advisers or to MacRobins as employed advisers. Although BBN FP has ceased trading, it has continued to receive renewal commissions. The right to receive these renewal commissions going forward has been sold to Tenet. For the year ended March 31, 2005, BBN FP reported turnover of GBP8,036,000 and a loss before tax of GBP2,456,000. Renewal commissions included in the turnover amounted to approximately GBP1,698,000. Costs associated with the collection of the renewal commissions are minimal. No assets are being sold as part of the disposal of the BBN FP business. BBN FP is also subject to a Decision Notice issued by the Financial Services Authority on July 29, 2005, as a result of a regulatory capital deficit. Following the sale of its business, the FSA has cancelled the permission granted to BBN FP pursuant to Part IV of the Financial Services and Markets Act 2000. GSS GSS provides support services exclusively to the BBB group. These services include compliance, commission processing and training as well as operational, HR, finance and IT support. For the year ended March 31, 2005, GSS reported turnover of GBP4,633,000, all from fellow BBB Group companies, and received contributions amounting to GBP1,137,000 from various financial services companies as part of the BBB Group Strategic Partner Programme. Profit before tax for the year ended March 31, 2005 was GBP327,000. The business sold to Tenet contributed approximately GBP2.5 million to GSS's turnover. The balance was largely earned from Weston, discontinued activities of BBN FP and Direct Protect Limited, which have both ceased trading, and Berry Birch & Noble Insurance Brokers Limited, which sold its business and related assets and liabilities on Feb. 28, 2006. Following the sale of the BIA and BBN FP businesses, GSS has changed its name to BBB Support Services Limited. Businesses excluded from the sale to Tenet As indicated above, despite having entered into exclusive negotiations for the sale of the businesses of Weston, MacRobins and Berry Birch & Noble Estate Planning Limited, BBB has been unable to reach agreement with Tenet for their sale. Weston had previously been authorized in its own right by the FSA and was also subject to a Decision Notice dated July 29, 2005, relating to a regulatory capital deficit. The firm subsequently became an Appointed Representative of BIA, a step taken in connection with the BBB Group's overall refinancing plans. Since BIA's permission has been cancelled, Weston is no longer able to conduct business as an Appointed Representative of BIA and its representatives have been instructed to cease conducting business. The Board of Weston is seeking a buyer for the business who can complete a purchase at short notice. MacRobins and BBN EP remain solvent and will continue to trade while the Board of BBB, in conjunction with the Boards of the companies concerned, seeks buyers for these businesses. Further announcements will be made on reaching any agreement for the sale of these remaining businesses. Working capital and Application of Proceeds The working capital position of the BBB Group and the application of the proceeds from the above disposals were set out in the announcement made on Feb. 28, 2006. Future of the BBB Group The Directors are now assessing the financial position of the BBB Group to ascertain the situation for each individual company following the disposals and further announcements will be made following the completion of this assessment. Headquartered in Coventry, England, Berkeley Berry Birch plc -- http://www.bbb.co.uk/-- is one of the leading financial services distribution groups in the UK. The primary business of Berkeley Berry Birch is the provision of financial services and advice to consumers and employers. * * * Auditor's Opinion At March 31, 2005, the Company reported around GBP10 million in combined regulated capital resource requirement deficit based on unaudited year-end FSA returns. The FSA commenced formal regulatory enforcement action, which could result in the FSA cancelling the permissions granted to the subsidiaries under Part IV of the Financial Services and Markets Act 2000 to act as Independent Financial Advisers. If these permissions were to be withdrawn, the going concern basis on which these results have been prepared would be inappropriate. In such circumstances, adjustments are likely to have to be made to the net assets shown in the accounts to reduce assets to their more immediately recoverable amounts and to provide for further liabilities that may arise. The Company's auditors indicated that, due to these uncertainties, their audit report is likely to be modified to draw attention to the fundamental uncertainty in respect of the Company's ability to continue as a going concern. BRITISH AIRWAYS: February 2006 Traffic Statistics Up 3.6% --------------------------------------------------------- British Airways PLC reported traffic and capacity statistics in February 2006. In February 2006, passenger capacity, measured in Available Seat Kilometers, was 3% above February 2005. Traffic, measured in Revenue Passenger Kilometers, was higher by 3.6%. This resulted in a passenger load factor up 0.4 points versus last year, to 71.2%. The increase in traffic comprised a 7.1% increase in premium traffic and a 2.9% increase in non-premium traffic. Cargo, measured in Cargo Ton Kilometers, was down 1.1 per cent. Overall load factor was down 0.6 points at 67.3 per cent. Market Conditions Market conditions remain broadly unchanged as significant promotional activity is required to maintain seat factors. Strategic Developments The sale by British Airways of its entire interests in the London Eye to the Tussauds Group was completed for GBP100.45 million which included its one third share and its outstanding loan to the company. The airline will continue its brand association with the attraction by extending its existing franchise agreement. The airline appointed e-Dialog as its email service provider for customer communications in the UK including Executive Club members and registered customers on ba.com. The decision reflects the increasing importance of direct electronic customer communication as part of the airline's marketing communications strategy. Japan Airlines (JAL) and oneworldTM have exchanged a memorandum of understanding, completing the Asian carrier's first step towards joining the world's leading quality global airline alliance. British Airways Plc received a request for information from both the European Commission and the United States Department of Justice relating to alleged cartel activity involving British Airways and a number of other airlines and cargo operators. British Airways' policy is to conduct its business in full compliance with all the applicable competition laws. British Airways is assisting the European Commission and United States Department of Justice with their investigation. 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. BRITISH AVIATION: US Bankruptcy Court Closes Sec. 304 Proceeding ---------------------------------------------------------------- The Hon. Stuart M. Bernstein, the U.S. Bankruptcy Court for the Southern District of New York entered an order closing the British Aviation Insurance Company Limited's ancillary proceeding under Section 304 of the Bankruptcy Code. British Aviation's Board of Directors filed a Section 304 petition with the U.S. Bankruptcy Court for the Southern District of New York in February 2005 to prevent any U.S. creditor from seizing their U.S. assets. The Debtor's Board also sought an order from the Bankruptcy Court to give full force and effect to its proposed Scheme of Arrangement in the U.S. Headquartered in London, The British Aviation Insurance Company Limited -- http://www.baicsolventscheme.co.uk/-- wrote mainly aviation direct business or facultative reinsurance and was. On Jan. 1, 2002, it ceased to underwrite any insurance business and went into run-off. The Company filed a Section 304 petition on February 7, 2005 (Bank. S.D.N.Y. Case No. 05-10720). Howard Seife, Esq., and Francisco Vazquez, Esq., at Chadbourne & Parke LLP represent the Debtor in this proceeding. The Petition discloses assets of GBP254,616,000 and liabilities totaling GBP151,938,000. CABLE & WIRELESS: Executive Director Buys 1 Million Shares ---------------------------------------------------------- Cable and Wireless plc advises that Executive Director John Pluthero purchased 1,000,000 Ordinary Shares in the Company on March 3, 2006, at a price of 106.50 pence per Ordinary Share. In accordance with the terms of his employment, on the same date, Mr. Pluthero has been awarded 1,000,000 matching restricted shares in the Company. The matching restricted shares are not subject to any performance conditions and will vest on the third anniversary of the award subject to Mr. Pluthero retaining a beneficial interest in the purchased shares and remaining an employee of the Company. At the same time, Mr. Pluthero was granted 1,163,873 share options at a price of 107.40 pence per Ordinary Share and 232,774 performance share awards in accordance with his terms of employment and the rules of the Cable & Wireless Incentive Plan. The share options granted are exercisable from March 3, 2009, to March 2, 2013, subject to the achievement of performance conditions based upon Total Shareholder Return. The performance shares granted will vest from March 3, 2009, subject to the achievement of performance conditions based upon TSR. Full vesting occurs only if the TSR performance of the Company meets or exceeds the upper quartile measured against the constituents of the FTSE Global Telecoms Sector Index during the performance period starting on March 3, 2006, and ending on March 2, 2009. Where TSR performance meets the median, one third of the initial award vests. A sliding scale operates between median and upper quartile and nothing vests for performance below the median. If performance conditions have not been met by the end of the performance period, the options lapse. Vesting must also be warranted by reference to the underlying financial performance of the Company during the performance period, which will be determined by the Remuneration Committee within 12 months of the end of the performance period. Until the matching restricted shares and performance share awards disclosed above vest, the shares will continue to be held by Towers Perrin Share Plan Services (GSY) Limited as Trustee of the Cable & Wireless Employee Share Ownership Trust. The Company also advises that on March 3, 2006, Jim Marsh was granted 395,716 restricted shares in the Company. The restricted shares vest over the three years following the date of grant. The consideration for the restricted share and performance share awards is GBP nil. These transactions relate to: (i) transactions notified in accordance with DR 3.1.4R(1)(a) and (ii) in the case of John Pluthero only, a disclosure made in accordance with section 324 (as extended by section 328) of the Companies Act 1985. About the Company Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- is one of the world's leading international communications companies. It provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. Fitch Ratings has affirmed Cable & Wireless' ratings at Long-term 'BB+' with Stable Outlook and Short-term 'B'. * * * As reported in the Troubled Company Reporter-Europe on March 3, Standard & Poor's Ratings Services said that the ratings and outlook on U.K.-based telecommunications operator Cable & Wireless PLC (C&W; BB-/Negative/B) were unchanged following the group's presentation of plans for further restructuring and refocusing of its U.K. business. C&W is replicating the broadly successful business model of Energis, the U.K. telecoms services company that it acquired in November 2005. It has announced a withdrawal from the low- margin U.K. small-to-midsized business market and a focus on large U.K. corporate customers. Given this streamlining of the customer and product base, employee numbers could reduce by up to 3,000, resulting in additional headcount reduction and lease exit costs. The group is to continue investing in Bulldog, its early stage, and largely residential, local-loop-access operation. This further retrenchment underlines the external and internal challenges that C&W still faces. The group's cash flow profile in the U.K. is likely to be more negative than previously anticipated, although material erosion of the gross cash position is not currently expected. CABLE & WIRELESS: Employee Share Trustees Dispose of Shares ----------------------------------------------------------- The Trustees of Cable and Wireless plc Employee Share Ownership Trust notified Cable & Wireless plc that they have disposed of 72,481 Ordinary Shares at a price of GBP1.07 per share and 11,855 Ordinary Shares at a price of GBP1.0675 per share on March 1, 2006. Following the disposal, 51,346,553 Ordinary Shares are held under the Trust. Francesco Caio, Rob Rowley, Charles Herlinger, Lord Robertson of Port Ellen, George Battersby, Harris Jones and John Pluthero (all being Directors of Cable and Wireless plc), in their capacity as members of the class of beneficiaries under the Trust, and Towers Perrin Share Plan Services (GSY) Limited, in their capacity as Trustees of the Trust, are deemed to have a non-beneficial interest in these Ordinary Shares. No Directors are disposing of any beneficial interests in the Company. About the Company Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- is one of the world's leading international communications companies. It provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. Fitch Ratings has affirmed Cable & Wireless' ratings at Long-term 'BB+' with Stable Outlook and Short-term 'B'. * * * As reported in the Troubled Company Reporter-Europe on March 3, Standard & Poor's Ratings Services said that the ratings and outlook on U.K.-based telecommunications operator Cable & Wireless PLC (C&W; BB-/Negative/B) were unchanged following the group's presentation of plans for further restructuring and refocusing of its U.K. business. C&W is replicating the broadly successful business model of Energis, the U.K. telecoms services company that it acquired in November 2005. It has announced a withdrawal from the low- margin U.K. small-to-midsized business market and a focus on large U.K. corporate customers. Given this streamlining of the customer and product base, employee numbers could reduce by up to 3,000, resulting in additional headcount reduction and lease exit costs. The group is to continue investing in Bulldog, its early stage, and largely residential, local-loop-access operation. This further retrenchment underlines the external and internal challenges that C&W still faces. The group's cash flow profile in the U.K. is likely to be more negative than previously anticipated, although material erosion of the gross cash position is not currently expected. CHEYNE CREDIT: Fitch Assigns BB Rating to EUR30 Mln Class V Bond ---------------------------------------------------------------- Fitch Ratings assigned Cheyne Credit Opportunity CDO I B.V.'s issue of EUR860 million floating-rate notes due 2021 final ratings as follows: a) EUR552 million Class IA F: AAA; b) EUR138 million Class IB: AAA; c) EUR40 million Class II: AA; d) EUR40 million Class III: A; e) EUR60 million Class IV: BBB; and f) EUR30 million Class V: BB. The ratings of the Class IA F, IB and II notes address ultimate repayment of principal at maturity and timely payment of interest when due. For the Class III, IV and V notes, which can defer interest, the ratings address ultimate payment of principal and interest, including deferred interest, at maturity. The ratings are based on the quality and diversity of the portfolio of assets, which are selected by the collateral manager subject to the guidelines outlined in the collateral management agreement. The said guidelines limit the collateral manager's portfolio allocations with respect to obligor, industry, country and asset type. The ratings are also based on the credit enhancement provided to the various Classes of notes in the form of subordination, structural protection covenanted in the documents and excess spread. Expected subordination at rating effective date for the Class IA F notes totals 44.8%, and will be provided by the Class IB notes, the Class II notes, the Class III notes, the Class IV notes, the Class V notes and the Class VI subordinated notes. Cheyne Credit Opportunity CDO I B.V. is a company with limited liability, incorporated under the laws of the Netherlands. The proceeds from the note issuance are used to purchase a portfolio of primarily European senior secured, senior unsecured, second lien and mezzanine leveraged loans. At closing, the issuer has purchased, or committed to purchase approximately 20% of the target portfolio with the remainder being purchased during the initial ramp-up period of a maximum of two years. Afterwards the portfolio will be actively managed by Cheyne Capital Management Limited over the remainder of the five-year initial ramp-up and reinvestment period. The transaction benefits from a principal deficiency ledger mechanism that covers the initial fees and expenses as well as potential negative carry during the initial ramp-up period. Before payments to the Class VI subordinated noteholders may be made, the PDL balance must be reduced to zero. The transaction also benefits from the variable funding of the Class IA and Class VI subordinated notes and the requirement to comply with a ramp-up schedule that reduces the cost of potential negative carry during the ramp-up. CORUS GROUP: Fitch Affirms EUR800 Mln Senior Notes at B+ -------------------------------------------------------- Fitch Ratings affirmed Corus Finance PLC's GBP150 million 11.5% debenture stock at BBB- and simultaneously withdrawn this rating. This follows the announcement by Corus Group PLC of its successful tender for this instrument. The agency will no longer provide ratings coverage of this instrument. At the same time, Fitch has affirmed Corus' Long-term Issuer Default rating at BB- with Stable Outlook. The ratings of Corus' other debt instruments are also affirmed 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+; and d) Corus Finance PLC EUR20 million 5.375% guaranteed bonds B+. 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. COUNTY AMBULANCE: Brings In Administrator From Crawfords -------------------------------------------------------- David N. Kaye of Crawfords was appointed administrator of County Ambulance Service Limited (Company Number 05057546) on Feb. 22. The company offers ambulance service. CONTACT: CRAWFORDS Stanton House 41 Blackfriars Road Salford Manchester Greater Manchester M3 7DB Tel: 0161 828 1000 Fax: 0161 832 1829 E-mail: akachani@aol.com D2 CONTRACTS: Creditors Ratify Joint Liquidators' Appointment ------------------------------------------------------------- Creditors of D2 Contracts Limited confirmed the company's voluntary liquidation after members passed a resolution to wind up the company's operations on Feb. 8, 2006. Creditors also ratified the appointment of Peter John Windatt and Gary Steven Pettit, of BRI Business Recovery and Insolvency, as Joint Liquidators. CONTACT: D2 CONTRACTS LIMITED 80 Lower Luton Road Harpenden Hertfordshire AL5 5AH Tel: 01582 469 991 Fax: 01582 469 992 Web: http://www.d2contracts.co.uk/ DENBAR U.K.: Grooming Specialist Hires Administrator ---------------------------------------------------- Andrew David Rosler of Ideal Corporate Solutions Limited was appointed administrator of Denbar U.K. Limited (Company Number 02582148) on Feb. 21. Its registered office is at 1-3 St Mary's Place, Bury BL9 0ZD. Denbar U.K. Limited -- http://www.denbar-uk-ltd.co.uk/-- is a professional grooming supplies specialists. CONTACT: IDEAL CORPORATE SOLUTIONS LIMITED 10 Eagley House, Deakins Business Park, Bolton BL7 9RP ELITE ELECTRICAL: Taps Springfields to Administer Assets -------------------------------------------------------- Situl Devji Raithatha of Springfields was appointed administrator of Elite Electrical (Midlands) Limited (Company Number 03591218) on Feb. 21. Its registered office is at 110 Knighton Lane, Leicester LE2 8BG. Elite Electrical (Midlands) Limited handles electrical contractors. Its office is at 110 Knighton Lane, Leicester, Leicestershire LE2 8BE. For more details, call 01162833851. CONTACT: SPRINGFIELDS 80 Hinckley Road Leicester Leicestershire LE3 0RD Tel: 0116 299 4745 Fax: 0116 299 4742 E-mail: situl.r@springfields-uk.com EXEL SCAFFOLDING: Appoints Rothman Pantall Administrator -------------------------------------------------------- Robert Derek Smailes and Stephen B. Ryman of Rothman Pantall & Co were appointed joint administrators of Exel Scaffolding (UK) Limited (Company Number 05008273) on Feb. 15. About Rothman Pantall Rothman Pantall & Co -- http://www.rothman-pantall.co.uk/-- was established in 1955 as a general accountancy practice, and has grown to its present 18 offices across the South of England. It is one of the largest independent firms of Chartered Accountants in the region, and rank in the top 40 in the United Kingdom. About the Company Exel Scaffolding (UK) Limited -- http://www.exelscaffold.com/-- is into the scaffolding business. Its office is at Farington Business Pk, Leyland, Lancashire PR253GG. For more details, call 01772 431046. FLEECE LIMITED: Hires Elwell Watchorn Administrator --------------------------------------------------- Richard John Elwell and David John Watchorn (IP Nos 6057 and 8086), both of Elwell Watchorn & Saxton LLP, Fleece Limited (t/a J H Walker, Dawson Fabrics and Dibor - Company Number 3322269) Elwell Watchorn & Saxton -- http://www.ews-insolvency.co.uk/-- provides insolvency and recovery services. The firm's partners have considerable expertise in all formal areas of insolvency, both corporate and personal and have been offering turnaround advice without the need for formal insolvency. INTERPANE GLASS: Joint Administrators Enter Firm ------------------------------------------------ Matthew Colin Bowker and Suzanne Payne of Unity Corporate Recovery and Insolvency were appointed joint administrators of Interpane Glass (UK) Ltd (Company Number 01393647) on Feb. 22. Interpane Glass (UK) Ltd -- http://www.interpane.co.uk/-- manufactures double glazed window units. Its office is at Riverside Place, East Gate, Warmco Industrial Park, Manchester Road, Mossley, Ashton under Lyne OL5 9XA, Lancashire. For more details, call 01457 837779 or fax 01457 837523. CONTACT: UNITY CORPORATE RECOVERY AND INSOLVENCY Clive House Clive Street Bolton Lancashire BL1 1ET Tel: 01204 395000 Fax: 01204 383999 E-mail: matthewbowker@ubsg.co.uk J K BADMAN: Names Joint Administrators from BDO Stoy Hayward ------------------------------------------------------------ Graham Randall and Simon Girling of BDO Stoy Hayward LLP were appointed joint administrators of J K Badman Transport Limited (Company Number 0674297) on Feb. 17. About BDO Stoy Hayward 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. About the Company Headquartered in Bristol, J K Badman Transport Limited -- http://www.jkbadman.com/-- was established in 1979. It is a family-owned business that has built a reputation for quick and efficient service throughout the UK and Europe. It offers a wide range of specialist transport services and a fleet of vehicles serviced onsite, to meet all its customer's needs and tight deadlines. KJM ACCESSORIES: Administrator from Sharma & Co Moves In -------------------------------------------------------- G. D. Sharma of Sharma & Co was appointed administrator of KJM Accessories Limited (Company Number 4231892) on Feb. 13. Its registered office is at Unit 14 Riverside Studios, Amethyst Road, Newcastle Business Park, Newcastle upon Tyne NE4 7YL. KJM Accessories Limited is a commodity trader. Its office is at 32 Newlyn Drive, Sale, Cheshire M33 3LE. CONTACT: SHARMA & CO. 50 Newhall Street Birmingham West Midlands B3 3QE Tel: 0121 248 5007 Fax: 0121 248 5010 E-mail: gagen@sharmaandco.com LINK ELECTRICAL: Bottomley & Co. to Administer Assets ----------------------------------------------------- David Halstead Bottomley of Bottomley & Co was appointed administrator of Link Electrical Services Limited (Company Number 3283972) on Feb. 20. Its registered office is at Alfred Edison House, 68-69 Cecil Street, Birmingham B19 3SU. Link Electrical Services Limited offers electrical installation service. Its office is at 68-69 Cecil Street, Birmingham, West Midlands, B19 3SU. For more details, call 0121 333 3666. CONTACT: BOTTOMLEY & CO 3 Chapel Court 42 Holly Walk Leamington Spa Warwickshire CV32 4YS Tel: 08700 676767 Fax: 08700 676768 E-mail: david@3chapelcourt.com MASSIVE RECORDS: Retailer Brings In Joint Administrators -------------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss of F A Simms & Partners Plc were appointed joint administrators of Massive Records LLP (Company Number 0C 310650) on Feb. 13. Its registered office is at 95 Gloucester Green, Oxford OX1 2BU. The company distributes and sells records. CONTACT: F A SIMMS & PARTNERS PLC Insol House 39 Station Road Lutterworth Leicestershire LE17 4AP Tel: 01455 557111 Fax: 01455 552572 E-mail: rsimms@fasimms.com MFI FURNITURE: Deutsche Bank Holds 7.01% Notifiable Equity Stake ---------------------------------------------------------------- MFI Furniture Group PLC disclosed that it has received notification pursuant to Section 198 of the Companies Act 1985, that Deutsche Bank AG, had a notifiable interest in 44,025,025 10 pence ordinary shares of MFI Furniture Group Plc (7.01% of the issued share capital) at the close of business on 2nd March 2006. Headquartered in London, England, MFI Furniture Group -- http://www.mfi.co.uk/-- manufactures and sells household furniture. The Company markets its furniture products through its retail establishments located in the United Kingdom and France. MEI's subsidiaries include Schreiber Furniture Limited, MFI Furniture Centres, Hygena Cuisines SA and Howden Joinery Limited. The Scotsman previously reported that the troubled furniture group is battling rising debts and approximately GBP200 million in pension deficit. MISYS PLC: Transfers 1,019 Shares to Scheme Participants -------------------------------------------------------- Misys plc transferred 1,019 ordinary shares on March 6, to participants in its employee share schemes at a price of 164 pence per share. The shares were all formerly held as treasury shares. Following the above transfer of shares out of Treasury, Misys plc holds a total of 51,901,029 ordinary shares in Treasury. The total number of ordinary shares in issue (excluding Treasury shares) is 507,826,007. Headquartered in the United Kingdom, Misys PLC -- http://www.misys.com/-- provides industry-specific software serving the international banking and healthcare industries and the UK general insurance industry. At Nov. 30, 2005, the company reported GBP155.6 million in total stockholders' deficit. MORRIS SINGER: Liquidates Assets & Names Administrators ------------------------------------------------------- John Kelmanson and Elias Paourou, both of The Kelmanson Partnership, were appointed Joint Liquidators after members of Morris Singer Limited agreed to liquidate the company's assets on Feb. 13, 2006. S. Pink disclosed that the company could no longer continue its business due to mounting debts. CONTACT: MORRIS SINGER LIMITED Unit 10 Highfield Industrial Estate Lasham Alton Hampshire GU345SQ Tel: 01256 381 033 Fax: 01256 381 565 Web: http://www.morrissinger.co.uk/ OPTEX LIMITED: Asher Miller Takes Over Operations ------------------------------------------------- Optex Limited is liquidating its assets after members found out that the company cannot continue its operations due to its financial liabilities. Asher Miller, of David Rubin & Partners, was chosen Liquidator. CONTACT: OPTEX LIMITED 20-26 Victoria Road Barnet Hertfordshire EN4 9PF Tel: 020 8441 2199 Fax: 020 8449 3646 Web: http://www.optexint.com/ RANK GROUP: Cancels 1.6 Million Shares in Repurchase Program ------------------------------------------------------------ The Rank Group Plc purchased 1,573,585 Ordinary shares of 10 pence in the Company for cancellation at an average price of 242.9967 pence per share. Headquartered in London, Rank Group plc -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * The company's 3-7/8% notes due 2009 carry Fitch's BB+ rating. RANK GROUP: Moody's Downgrades Debt Ratings to Ba2 -------------------------------------------------- Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc (Rank) and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 (from Baa3). The rating action is prompted by Rank's announcement that it will distribute GBP200 million to shareholders, following the completion of the Deluxe Film's disposal as well as by the group's weak operating performance in 2005. The downgrade reflects Moody's expectation that Rank's more limited business scope and less diversified business profile combined with its increased leverage will result in a considerably weakened financial profile. The rating action concludes a review initiated on Dec. 7 2005. The Ba2 ratings factor in Rank's decision to adopt a dividend policy more in line with its reduced profit generation and also assume that Rank's leverage will not deteriorate above 4x Net Debt/EBITDA (within 5x on a Net Adj. Debt /EBITDAR basis) in 2006 and that these ratios will show measurable improvement from 2007 onwards with commensurate improvements in retained and free cash flow generation. However, given: -- the fact that Deluxe Media Services (DMS) remains unsold and therefore remains a drain on overall profits and cash flows; -- the challenges for Rank to reach its targeted level of revenue growth and operating margins on a sustainable basis; and -- a degree of strategic uncertainty with regard to potential financial buyer interest in Rank, the rating outlook is negative. The sale of Rank's Deluxe Film unit to DX III Holdings Corporation, a wholly owned indirect subsidiary of MacAndrews & Forbes Holdings Inc for a total consideration of US$750 million (approximately GBP430 million) has removed a significant source of revenue and profit diversification from the group. Moody's understands that the warranties and guarantees included in the final sale agreement are customary for this type of transaction and the ratings do not factor in any remaining material obligations from the agreement. On the upside, the rating agency acknowledges Rank's more streamlined and focused operations following the Deluxe film sale, recognizing the company's leading brands and strong market positions in the UK gaming market and the business' proven stability. In addition, the combination with Hard Rock offers some strategic value, including ongoing opportunities for brand extension. While the main strands of Rank's future strategy are well defined, the imminent arrival of a new chief executive adds a degree of strategic uncertainty, the rating agency said. Going forward, Rank will have to prove that it can deliver significantly improved operating performance in its core UK gaming franchise and that it can build on Hard Rock's solid 2005 performance. While new UK gambling regulation has brought improvements for Rank's operating environment such as the abolition of the 24 hours rule for casino membership, relaxation of advertising restrictions and increases in gambling machine allowances these improvements have remained somewhat below previous expectations. Moody's further notes that competitive intensity in the sector might well increase from 2008 onwards when new casino licenses will start creating commercial opportunities for other operators. In addition, in the short term Rank's bingo business in particular will have to cope with the introduction of smoking bans in Spain (January 2006), Scotland (from March 2006) and in the rest of the UK (from 2007). Given the above challenges, the rating leaves no leeway for further share buy-backs and very limited room for acquisitions. On the other hand, evidence of sound operating progress over the next twelve months coupled with a satisfactory resolution of the DMS sale could help to stabilize the outlook. A near-term upgrade is highly unlikely, but sustained revenue and profit growth with an Adj. RCF to Adj. net debt ratio above 12% and an Adj. Net Debt to EBITDAR ratio moving towards 3.5x on a sustainable basis could result in upgrade pressure on the ratings over the medium term Moody's regards Rank's liquidity as adequate. The group does not face any material debt maturities until early 2008 when US$100 million of Yankee bond falls due and headroom under its GBP400 million revolving credit should be sufficient to address near-term operating needs. Nevertheless Moody's notes Rank's relatively high reliance on its revolving credit facility which is expected to be drawn progressively as the company implements its share buy-back program. Rank's credit facilities, comprised of the revolver (due 2011) and a GBP250 million term loan facility, are subject to customary financial covenant tests. Rank's funding is complemented by its GBP168 million (face value) convertible loan and by the rated Yankee bonds (US$115 million). All material debt elements in the company's capital structure are currently unsecured, ranking pari-passu with other unsecured payments obligations of the group. While the rated Yankee bonds do not have change of control protection the negative pledge language is not restricted to public debt instruments. Rank's results for 2005 were negatively impacted by a weak performance of the gaming division resulting in lower operating profit before exceptional items by 6.3% to GBP127.5 million despite overall revenue increasing 2.9% to GBP810.3 million from GBP787.6 million after restatement for Blue Square. Although gaming reported revenue growth of 2.1% to GBP529.8 million compared to 2004, division's operating profits were hit by operating cost increases as well as low sportsbook margins and increased marketing investment at Blue Square. Sportsbook margins at Blue Square continue to be depressed by the impact of online betting exchanges, which are able to offer attractive odds thanks to a more favorable tax treatment and reduced operating costs. On a more positive note, Hard Rock improved profits before exceptional items by 24.7% to GBP34.8 million, aided by higher contribution from hotels and gaming interests. Moody's also notes that despite improved performance at the Hard Rock division and some expectation of further improvements in its gaming division, overall revenue visibility remains limited. Deluxe Film and Deluxe Media Service were treated as discontinued operations. Deluxe Film operating profits increased by 9.9% to GBP65.7 million due largely to increases in profit in Creative Services while Deluxe Media Service generated operating losses before exceptional items for GBP16.4 million. Ratings downgraded to Ba2: Rank Group Finance Plc (guaranteed by The Rank Group Plc) -- US$100 million Guaranteed notes due 2008; and -- US$24.8 million Guaranteed notes due 2018 The Rank Group Plc's senior unsecured issuer rating was downgraded to Ba2 and will subsequently be withdrawn and a Ba2 corporate family rating was assigned to The Rank Group Plc. The Rank Group Plc, is a leisure and entertainment company based in London, England. RANK GROUP: Fitch Lowers Long-term IDR to BB-; Outlook Negative --------------------------------------------------------------- Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. Senior Director in Fitch's RLCP team, Frederic Gits said, "Rank plans to operate with a more leveraged capital structure than in the past. A 9.6% decline in FY05 gaming operating profit confirmed that Rank's core gaming operations are under pressure." "Moreover, the deregulation of the UK gaming market, notably casinos, will create a more challenging competitive environment in the near future," he added. In FY05, net debt went up to GBP739 million at YE05 from GBP642 million at YE04 on the back of poor operating cash flow performance of both the continuing businesses and the discontinued operations. Net free cash flow was a negative GBP53 million in FY05 primarily as a result of Deluxe Media operations that Rank is still trying to sell. In spite of a 25% increase in divisional profit, Hard Rock Cafe is too small to mitigate the group's consolidated operating profit decline. Consolidated cash inflow from operating activities went down 33% to GBP175 million. Fitch estimates that net debt to continuing EBITDA stood at about 4.0x as at YE05 compared to 2.6x as at YE04. This is consistent with the new medium-term target of 3.5x to 4.0x set following the group's capital structure review. Consequently Fitch does not expect any material de-leveraging. Out of GBP420 million proceeds from the disposal of Deluxe Film, Rank plans to retain only GBP66 million, whereas GBP200 million of proceeds will be returned to shareholders and GBP100 million to reduce the pension deficit. The discontinued Deluxe Film's FY05 operating profits were GBP65.7 million before exceptional. Rank has announced its intention to carry on sale and leaseback transactions. This is at best credit neutral provided all sale proceeds are applied to debt reduction. Moreover, this will reduce the asset base of the company. The property, plant and equipment of gaming and Hard Rock had a book value of GBP481 million at YE05. According to management, there is no material difference between the book and the fair value of those assets. UK Mecca Bingos, which still accounts for two-thirds of gaming operating profit, recorded a 4.2% decline in profit due to higher energy prices and staff costs in FY05. The smoking ban effective in Scotland from March 2006 onwards and across the UK- from the summer of 2007 could be more detrimental to Bingo clubs than to casinos because of the socio-demographic profile of its customers. Rank believes that the withdrawal in December 2005 of the VAT-exempt status for gaming machines could trim its gaming operating profit by GBP5 million in FY06. In spite of 13.0% growth in admissions, partly on the back of two new casinos opening, the UK provincial casinos recorded a 9.3% decline in operating profit in FY05. The UK gaming deregulation has been effective since October 2005. While it drives growth in new customers in gaming venues, it may dilute the margin of casinos as the spend per new customer is usually lower, while higher marketing expenses are needed to retain customers in a more competitive environment. RANK GROUP: S&P Lowers Rating To BB-/B with Stable Outlook ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its long- and short- term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. The outlook is stable. At the same time, the ratings were removed from CreditWatch with negative implications, where they had been placed on Oct. 6, 2005. "The three-notch downgrade follows Rank's disposal of its film- processing unit, Deluxe Film, and the company's substantially higher leverage combined with a more aggressive financial policy," said Standard & Poor's credit analyst Helene Magny. Specifically, Rank plans to return just under one-half of total net disposal proceeds of GBP420 million to shareholders. The ratings reflect Rank's satisfactory business profile, based on its solid competitive positions and the relatively stable cash-generative characteristics of its bingo and casino assets, as well as additional cash contributions from the company's Hard Rock Cafe franchise. These factors are offset by the Hard Rock Cafe's reliance on the cyclical global tourism industry, along with the company's operating and business development challenges in the mature and competitive U.K. gaming sector, and weak demographic trends in the bingo business. The stable outlook reflects our expectation that Rank's future operating performance will continue to be supported by its solid competitive position in the cash-generative U.K. gaming industry, and by the discretionary nature of a sizable part of its capital expenditure. Moreover, the company's high leverage should benefit in the medium term from its decision to cut dividend payments by slightly more than one-half starting from 2007 and from the gradual tightening of its financial covenants. In addition, we expect that share repurchases will not exceed the planned GBP200 million. The group is working to achieve a lease-adjusted net debt-to- EBITDA ratio of 4.5x, which is in line with the requirement for the current rating. If the group were to enter a sale and lease back transaction, we would broadly view this as neutral. "The outlook could be changed to positive if Rank's credit metrics were to become commensurate with a higher rating in the medium term," added Ms. Magny. "The rating could be raised if the group demonstrates its ability to achieve and sustain lease- adjusted net debt to EBITDA at the better end of the 4.0x-4.5x range and lease-adjusted funds from operations to net debt of more than 15%." S. DA VINCI: Members Agree to Voluntary Liquidation --------------------------------------------------- Members of S. Da Vinci Limited passed a resolution to wind up the company during an extraordinary general meeting on Feb. 9, 2006. Jeffrey Mark Brenner, of B & C Associates, was appointed Liquidator to wind up the company's business. CONTACT: S. DA VINCI LIMITED 30 Buckingham Palace Road London SW1W0RE Tel: 020 7630 8844 SEG LIMITED: Financial Woes Trigger Liquidation Proceedings ----------------------------------------------------------- David Acland, of Begbies Traynor, was appointed Liquidator of SEG (Europe) Limited after members unanimously decided to liquidate the company's assets on Feb. 8, 2006. The voluntary liquidation came as a result of the Debtor's inability to continue its operations due to its liabilities. CONTACT: SEG (EUROPE) LIMITED Unit 1 Bracewell Avenue Poulton Industrial Estate Poulton-Le-Fylde Lancashire FY6 8JF Tel: 01253 893 688 Fax: 01253 899 226 SPRAYS INTERNATIONAL: Manufacturer Names Joint Administrators ------------------------------------------------------------- James Richard Tickell and Carl Derek Faulds of Portland Business & Financial Solutions Ltd were appointed joint administrators of Sprays International Limited (Company Number 2663535) on Feb. 17. Headquartered in Derbyshire, Sprays Limited -- http://www.sprays.co.uk/-- designs, develops and manufactures high precision molded, wear resistant spray nozzles for agriculture, horticulture, forestry, aquaculture, public health, animal health, evaporative cooling, grocery and industry. 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 STRATFORDS OF NEWARK: Shoe Retailer Names Joint Administrators -------------------------------------------------------------- Andrew Philip Wood and Derek Leslie Woolley of The P&A Partnership were appointed joint administrators of Stratfords Of Newark Limited (Company Number 3522774) on Feb. 22. About P&A Partnership The P&A Partnership (nka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- is a member firm of the Insolvency Practitioners Association and the Association of Business Recovery Professionals (R3) and act for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors. As the partnership works only in the field of business rescue and insolvency, it can not only promise dedicated expertise, but can also assure its professional clients that it pose no competition to its own business base. About the Company Stratfords Of Newark Ltd is a shoe retailer. Its shop is at 38 Kirk Gate, Newark, Nottinghamshire NG24 1AB. For more details, call 01636678899. SYREN LIMITED: Calls On Tenon Recovery to Administer Assets ----------------------------------------------------------- Christopher Ratten and Simon Thomas of Tenon Recovery were appointed joint administrators of Syren Limited (Company Number 03996181) on Feb. 24. Its registered office is at 28 Progress Business Park, Kirkham, Preston PR4 2TZ. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. Syren Ltd offers computer activities. Its office is at Continental House, 292/302 Church Street, Blackpool, Lancashire FY1 3QA. For more details, call 01772-681777. TTL (2005): Joint Administrators Move In ---------------------------------------- Mark Elijah Thomas Bowen and Nigel Price of Moore Stephens LLP were appointed joint administrators of TTL (2005) Limited (formerly Top Temps Limited - Company Number 03139483) on Feb. 17. About Moore Stephens Moore Stephens -- http://www.moorestephens.co.uk-- offers audit, business support, corporate finance, corporate recovery, dispute analysis, financial services, insurance broking, IT consultancy, pensions audit, risk advisory services, tax and trusts & estates services. Its UK network comprises over 1,400 partners and staff. ZETHICS LTD: Liquidator Sets March 27 Claims Bar Date ----------------------------------------------------- Members of Zethics Ltd resolved to liquidate the company's assets during an Extraordinary General Meeting on Feb. 10. Appointed Liquidator, David N. Hughes, required creditors to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors (if any) on or before March 27, 2006. CONTACT: ZETHICS LTD West One House 23 St. Georges Road Cheltenham Gloucestershire GL503DT Tel: 01242 251 251 ********* 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, 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 * * *