/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060511.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, May 11, 2006, Vol. 7, No. 93 Headlines A U S T R I A BAWAG P.S.K: Faces Class Action Suit by Refco Shareholders G E R M A N Y BAUGESCHAFT HAMBLOCH: Creditors' Meeting Slated for May 19 BAUUNTERNEHMUNG AUFBAU: Claims Registration Ends May 18 D & H COMPUTER: Creditors' Meeting Slated for May 18 DIWIFA BETEILIGUNGS: Claims Registration Ends May 17 G-TECH: Claims Filing Period Ends May 19 HOTEL ALTE: Claims Registration Ends May 18 IMMOBILIEN VERWALTUNGS: Claims Registration Ends May 19 KARSTADTQUELLE AG: Enters Third Restructuring Phase MOHR EDV: Claims Filing Period Ends May 18 TEGTMEIER BAU: Claims Registration Ends May 18 V8 PERFORMANCE: Claims Filing Period Ends May 18 K A Z A K H S T A N ANAS: Proofs of Claims Deadline Slated for May 16 AVTOTRANSSERVICE: Mangistau Court Opens Bankruptcy Proceedings BN-COMPANY: Proofs of Claims Deadline Slated for May 16 JANA-IRTYSH: Creditors' Claims Due May 16 JULDYZ-PV: Claims Registration Ends May 16 MEDKOMPLEKT-K: Creditors Must File Claims by May 16 NOGAI-5: Claims Registration Ends May 16 TOLKYN: Creditors' Claims Due May 16 VICTORIA: Creditors Must File Claims by May 16 N E T H E R L A N D S VICTORIA ACQUISITION: Moody's Upgrades Senior Debt Rating to B2 VICTORIA ACQUISITION: S&P Cuts Sr. Unsecured Debt Rating to B- N O R W A Y NORDIC TELEPHONE: Fitch Rates EUR2.03-Bln Senior Notes at B+ TDC A/S: Fitch Affirms Senior Secured Bank Loans at BB+ P O L A N D CENTRAL EUROPEAN: Earns US$7.8 Million in First Quarter 2006 NETIA SA: Buys Back 32.4 Million Shares at PLN0.01 Per Unit R U S S I A BIO-KHIM-TRADE: Court Starts Bankruptcy Supervision DAL-FACTORY: Court Names A. Bzaev as External Insolvency Manager EVSINSKIY MILL: Creditors Must File Proofs of Claim by May 18 OIL-KHIM-SERVICE: Moscow Region Opens Bankruptcy Proceedings RODNIK: Bankruptcy Hearing Slated for May 16 SIBIRTELECOM: Earns RUB673.6 Million in First Quarter 2006 OAO SIBNEFT: Annual Shareholders Meeting Slated for June 22 SOUTH-EAST-STEEL-CONSTRUCTION: Creditors' Claims Due May 18 SPIRIT-VODKA: Creditors Must File Claims by May 18 STARODUBSKIY METALLIST: Court Sets May 18 Bankruptcy Hearing VERSHINO-DARASUNSKAYA: Court Names I. Dolgikh Insolvency Manager VIMPELCOM: Prices Private Debt Swap & Proposed New Financing T U R K E Y DENIZ FINANSAL: Fitch Rates Currency Issuer Default at BB- U K R A I N E AGROSTANDART: Court Names Stepan Bonchak Insolvency Manager BUSINESS-CENTER: Kyiv Court Grants Debt Moratorium KARAPCHIV' ALCOHOL: Court Begins Bankruptcy Supervision MALINIVSKE: Court Begins Bankruptcy Process PODILLYA: Hmelnitskij Court Begins Bankruptcy Supervision SLOVENERGOBUD: Donetsk Court Freezes Claims Payment SV: Kyiv Court Appoints S. Dyachenko to Liquidate Assets ZHITOMIR AGRICULTURAL: Court Opens Bankruptcy Proceedings ZOLOTIJ KOLOS: Court Starts Bankruptcy Supervision U N I T E D K I N G D O M ADI CAR: Appoints Jones Lowndes Dwyer Administrator ASCOT MINWORTH: Hires Deloitte & Touche Administrators BALBY PLUMBING: Taps David Horner & Co to Administer Assets CLOTHING OUTLET: HSBC Bank Appoints Grant Thornton Receiver COLMAN COYLE: Creditors' Meeting Slated for May 11 CORUS GROUP: Strong Results Spur Moody's to Upgrade Ratings COVERITE LIMITED: Hires Joint Administrators from Deloitte FIFTH AVENUE: Appoints Joint Administrators of Deloitte & Touche G.T. LOGISTICS: Financial Woes Prompt Liquidation GE TURBINE: Names Joint Administrators from Tenon Recovery HEATHER SPENCER: Appoints Joint Liquidators from Baker Tilly HOME APPLIANCE: Claims Filing Period Ends July 7 J & N SHOPFITTERS: Creditors Confirm Voluntary Liquidation J.P. FINNEGAN: Hires Joint Administrators of SFP JACKET FOUR: Creditors Pass Winding Up Resolution NATURAL OPTIONS: Names Dominic Lee Zoong Wong as Administrator NORTHERN LAMINATORS: Taps Andrew Clay as Administrator NRG VICTORY: Scheme Creditors' Meeting Slated for May 23 PIPE HOLDINGS: Moody's Might Downgrade Debt Ratings After Review REFCO INC: Shareholders Drag BAWAG PSK in Class Action Suit TARGET TRADE: Hires Joint Administrators from Kroll UNITED BISCUITS: Fitch Upgrades Junk Senior Debt Ratings to B- * Fitch Assigns IDRs to European Property Companies ********* ============= A U S T R I A ============= BAWAG P.S.K: Faces Class Action Suit by Refco Shareholders ---------------------------------------------------------- As previously reported, RH Capital Associates LLC, Pacific Investment Management Company LLC, and PIMCO Funds: Pacific Investment Management Series - PIMCO High Yield Fund -- the lead plaintiffs -- filed with the U.S. District Court in the Southern District of New York a federal securities law class action on behalf of themselves and all other entities who purchased publicly traded shares, bonds or notes of Refco Inc., and its affiliates, and who were allegedly injured between Aug. 5, 2004, and Oct. 17, 2005. Since the criminal, civil and regulatory investigations on Refco's alleged financial misconduct are underway, the Investors amended their Class Action Complaint on May 8, to incorporate several facts that have recently come to light concerning a significant co-conspirator in the Refco debacle -- BAWAG P.S.K. Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft. The Investors assert that BAWAG was directly involved in the fraudulent scheme at Refco and, through a series of interlocking relationships and activities, was able to exert undue influence and control over Refco. The Investors allege that when a number of Refco's customers -- including BAWAG -- suffered extensive trading losses in the worldwide financial crises of 1998 to 2000, they were unable to repay the credit extended to them by Refco. To avoid disclosing these uncollectible debts, Refco's former CEO Phillip Bennett transferred the debts to Refco Group Holdings, Inc., which was owned by Mr. Bennett, and then orchestrated a series of transactions whereby the receivable was temporarily paid off at the end of each of Refco's financial reporting periods. BAWAG actively assisted Mr. Bennett in concealing the uncollectible receivable in at least three ways: -- In 1999, shortly after Refco first suffered these losses, BAWAG injected a huge amount of fresh capital by acquiring a 10% stake in Refco through BAWAG's wholly owned affiliate, BAWAG Overseas, Inc.; -- BAWAG injected additional capital through a series of undisclosed loans between Refco Holdings, Refco, DF Capital, Inc., Desana Foundation, and perhaps other entities affiliated with BAWAG or Refco, in return for an additional undisclosed 27% equity stake in Refco; and -- BAWAG participated in at least six transactions at the end of Refco's fiscal years 2000 through 2005 that allowed Refco Holdings to temporarily pay off the receivable it owed to Refco. "This significant economic assistance that BAWAG gave to Bennett provided BAWAG with disproportionate influence and control over Bennett -- a CEO who was clearly desperate to conceal the existence of Refco Holdings' uncollectible receivable," Max Berger, Esq., at Bernstein Litowitz Berger & Grossman LLP, in New York, asserts. Mr. Berger also points out that Mr. Bennett's economic dependence on BAWAG is further evidenced by the fact that, when the US$430 million related-party receivable came to light in October 2005, and Mr. Bennett was anxious to avoid full disclosure of all of the facts, he turned to BAWAG for a US$420 million loan to pay off Refco Holdings' debt to Refco. Mr. Berger notes that when Refco was recapitalized on Aug. 5, 2004, BAWAG received cash payments from Refco Holdings totaling US$1.34 billion to cash out its direct and indirect equity interests in Refco. The Investors demand a trial by jury. A full-text copy of the 277-page Amended Class Action Complaint is available at no charge at http://ResearchArchives.com/t/s?8d7 The other Class Action defendants are: * the Bennett Shell-Entity Defendants, consisting of Refco Group Holdings, Inc., and The Phillip R. Bennett Three Year Annuity Trust; * the Refco-Affiliated Defendants, consisting of Refco Managed Futures LLC, Westminster-Refco Management LLC, and Lind-Waldock Securities LLC; * the Officer Defendants, consisting of Phillip R. Bennett, Gerald M. Sherer, William M. Sexton, Santo C. Maggio, Joseph J. Murphy, Phillip Silverman, and Dennis A. Klejna; * Refco Group's former Executive Vice President and Chief Financial Officer Robert C. Trosten; * Refco Group's former Chief Executive Officer Tone N. Grant; * the Audit Committee Defendants consisting of Ronald L. O'Kelley, Leo R. Breitman, and Nathan Gantcher; * the defendants affiliated with Thomas H. Lee Partners, including: -- THL Refco Acquisition Partners, THL Refco Acquisition Partners II, and THL Refco Acquisition Partners III; -- Thomas H. Lee Investors Limited Partnership; and -- The 1997 Thomas H. Lee Nominee Trust, a trust over which Thomas H. Lee has voting and investment control; * the THL Individual Defendants, consisting of Mr. Lee, David V. Harkins, Scott L. Jaeckel, and Scott A. Schoen; * Refco's purportedly independent auditor Grant Thornton LLP; and * the Underwriter Defendants, which consist of: -- Credit Suisse Securities (USA) LLC, -- Banc of America Securities LLC, -- Deutsche Bank Securities, Inc., -- Goldman, Sachs & Co., -- Merrill Lynch, Pierce, Fenner & Smith Incorporated, -- J.P. Morgan Securities, Inc., -- Sandler O'Neill & Partners, L.P., -- HSBC Securities (USA) Inc., -- William Blair & Company, L.L.C., -- Harris Nesbitt Corp., -- CMG Institutional Trading LLC, -- Samuel A. Ramirez & Company, Inc., -- Muriel Siebert & Co. Inc., -- The Williams Capital Group, L.P., and -- Utendahl Capital Partners, L.P. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Headquartered in Vienna, Austria, BAWAG P.S.K., formally known as Bank Fuer Arbeit und Wirtschaft AG, had total assets of EUR56.3 billion as of Dec. 31, 2004. ============= G E R M A N Y ============= BAUGESCHAFT HAMBLOCH: Creditors' Meeting Slated for May 19 ---------------------------------------------------------- Court-appointed provisional administrator for BAUGESCHAFT HAMBLOCH GmbH, Wilhelm Klaas, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:05 a.m., on May 19. The meeting of creditors and other interested parties will be held at: The District Court of Krefeld Sitzungssaal H 131 1. Etage Nordwall 131 47798 Krefeld, Germany The Court will also verify the claims set out in the administrator's report at 11:05 a.m., on July 21, at the same venue. Creditors have until May 20, to register their claims with the court-appointed provisional administrator. The District Court of Krefeld opened bankruptcy proceedings against BAUGESCHAFT HAMBLOCH GmbH on March 1. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: BAUGESCHAFT HAMBLOCH GmbH Attn: Heinz Hambloch, Manager Kolner Str. 574 47807 Krefeld, Germany The administrator can be reached at: Wilhelm Klaas Eichendorffstrasse 25 47800 Krefeld, Germany BAUUNTERNEHMUNG AUFBAU: Claims Registration Ends May 18 ------------------------------------------------------- Creditors of BAM-Bauunternehmung Aufbau Merseburg Verwaltungs GmbH & Co. Besitz KG have until May 18, to register their claims with court-appointed provisional administrator Dr. Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on June 15, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Halle-Saalkreis Saal 1.043 Thueringer Str. 16 06112 Halle, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Halle-Saalkreis opened bankruptcy proceedings against BAM-Bauunternehmung "Aufbau" Merseburg Verwaltungs GmbH & Co. Besitz KG on March 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: BAM-Bauunternehmung Aufbau Merseburg Verwaltungs GmbH & Co. Besitz KG Attn: Gustel Kirbach, Manager Eisenbahnstr. 11 06217 Merseburg, Germany The administrator can be contacted at: Dr. Stephan Thiemann Schorlemannstrasse 2 04155 Leipzig, Germany Tel: 0341/4903650 Fax: 0341/4903699 D & H COMPUTER: Creditors' Meeting Slated for May 18 ---------------------------------------------------- Court-appointed provisional administrator for D & H Computer Systeme EDV Beratungs- u. Vertriebsgesellschaft mbH, Stefanie Luethje, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m., on May 18. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Saal 115 Gerichtshaus Ostertorstr. 25-31 28195 Bremen, Germany The Court will also verify the claims set out in the administrator's report at 11:00 a.m., on Aug. 31, at the same venue. Creditors have until July 18, to register their claims with the court-appointed provisional administrator. The District Court of Bremen opened bankruptcy proceedings against D & H Computer Systeme EDV Beratungs- u. Vertriebsgesellschaft mbH on April 1. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: D & H Computer Systeme EDV Beratungs- u. Vertriebsgesellschaft mbH Attn: Torsten Willi Haschke, Manager Bremerhavener Heerstr. 13 28717 Bremen, Germany The administrator can be reached at: Stefanie Luethje Ostertorsteinweg 74/75 28203 Bremen, Germany Tel: 792570 Fax: 7925757 Web: http://www.oelb.de/ E-mail: Luethje@oelb.de DIWIFA BETEILIGUNGS: Claims Registration Ends May 17 ---------------------------------------------------- Creditors of diwifa Beteiligungs-GmbH have until May 17, to register their claims with court-appointed provisional administrator Hannelore Krueger-Knief. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.m. on June 7, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dresden Saal D131 Olbrichtplatz 1 01099 Dresden, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dresden opened bankruptcy proceedings against diwifa Beteiligungs-GmbH on April 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: diwifa Beteiligungs-GmbH Ammonstr. 72 01067 Dresden, Germany The administrator can be contacted at: Hannelore Krueger-Knief Konigstrasse 1 01097 Dresden, Germany Web: http://www.krueger-knief.de/ G-TECH: Claims Filing Period Ends May 19 ---------------------------------------- Creditors of G-Tech Limited Geruestbau Niederlassung Konigsbrunn have until May 19, to register their claims with court-appointed provisional administrator Nikolaus Gaede. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 20, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Augsburg Sitzungssaal 162/I. Stock Alten Einlass 1 86150 Augsburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Augsburg opened bankruptcy proceedings against G-Tech Limited Geruestbau Niederlassung Konigsbrunn on March 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: G-Tech Limited Geruestbau Niederlassung Konigsbrunn Attn: Vincenza Fragapane, Manager Rosenstr. 8 86343 Konigsbrunn, Germany The administrator can be contacted at: Nikolaus Gaede Buerkleinstr. 6 80538 Muenchen, Germany HOTEL ALTE: Claims Registration Ends May 18 ------------------------------------------- Creditors of Hotel Alte Brennerei Hiddingsel GmbH have until May 18, to register their claims with court-appointed provisional administrator Dr. Jochen Dierksmeier. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on June 8, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Muenster Sitzungssaal Saal 101 B Gerichtsstr. 2-6 48149 Muenster, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Muenster opened bankruptcy proceedings against Hotel Alte Brennerei Hiddingsel GmbH on March 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Hotel Alte Brennerei Hiddingsel GmbH Neustr. 25 48249 Duelmen, Germany Attn: Klaus Donnebrink, Manager Brinkstrasse 23 48249 Duelmen, Germany The administrator can be contacted at: Dr. Jochen Dierksmeier Ramertsweg 188 48161 Muenster, Germany IMMOBILIEN VERWALTUNGS: Claims Registration Ends May 19 ------------------------------------------------------- Creditors of IVS -- Immobilien, Verwaltungs und Sanierungs GmbH have until May 19, to register their claims with court-appointed provisional administrator Carsten Morgenstern. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 14, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Saal 24 Gerichtsgebaude Fuerstenstrasse 21 Chemnitz, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Chemnitz opened bankruptcy proceedings against IVS -- Immobilien, Verwaltungs und Sanierungs GmbH on March 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: IVS -- Immobilien, Verwaltungs und Sanierungs GmbH Attn: Mandy and Bernd Reuter, Managers Altenhainer Dorfstrasse 4 09128 Chemnitz, Germany The administrator can be contacted at: Carsten Morgenstern Michaelstr. 71 09116 Chemnitz, Germany Web: http://www.hww-kanzlei.de/ KARSTADTQUELLE AG: Enters Third Restructuring Phase --------------------------------------------------- After securing its liquidity and re-focusing its business, the KarstadtQuelle AG retail group is now moving into the third reorganization stage with the development of operating quality and strategic realignment. "We will actively develop our businesses. We now have the funds, the ideas and the personnel resources to do so," CEO Thomas Middelhoff said in the Group Annual General Meeting in Duesseldorf on Monday. "With a clear self-confidence, this company will play an even stronger role in Europe than ever before. As a reminder -- we are Europe's largest mail order company. We are the No. 1 Department Stores and with Thomas Cook we are No. 2 in the European tourism business. With our very good market positions, we can initiate a consolidation and can play a key role in the process." The strategic repositioning by means of mergers and partnerships applies to the Department Stores segment as a whole. In the Mail Order segment, mergers are conceivable in Universal Mail Order, in individual brands or in E-Commerce. "Take it as a given, that we have a strong will to strengthen our businesses by all means at our disposal and that we are convinced to be able to provide you with one or the other surprise during the year." Department Store Sale A few weeks ago, the company sold its Department Store properties to British real estate fund Whitehall. Proceeds for the entire transaction amounted to EUR4.5 billion. A further EUR600 million are to be generated by the sale of other properties. In the course of this year, the Group will be completely free of financial debt. The extraordinary income is to be used to finance important investments in the Department Stores, Mail Order and Tourism segments. This includes an additional program for Universal Mail Order Germany that maps out the transformation to a higher share of Specialty Mail Order and E- Commerce in the processes and cost structures. This program is to be presented in the summer. In his review of the past financial year, Mr. Middelhoff stated that the 2005 targets had been exceeded, with four of five segments performing ahead of plan. Only Mail Order -- more specifically Universal Mail Order Germany -- is performing considerably below plan and is to be reorganized by 2007. The objective is also to increase business volume in Mail Order on a sustainable basis. "I see potential particularly in Russia. With a time horizon of two to three years, we are expecting a sales potential of EUR800 million to EUR1 billion," stated Mr. Middelhoff. The Chairman of the Management Board announced that until 2008 KarstadtQuelle AG is to be developed into a retail and tourism company with an equity ratio of over 20%, with annual sales of approximately EUR18 billion and an EBITDA of over EUR1.1 billion. For 2007, after a pause of several years, it is planned to pay an ordinary dividend again. After the crisis in 2004, a decisive reorganization over the past year stabilized the operating business and improved key conditions for the development of the company. As a result of disposals, net financial liabilities were reduced by a good third, from EUR4.5 billion to EUR3 billion, including Thomas Cook. A result primarily of disposals and outsourcing, the balance sheet total was reduced by 21.5% and key ratios were improved. Working capital was reduced by 48% to EUR1.2 billion. In the retail segments, the product portfolio was re-focused, resulting in a gross margin increase of 0.8 percentage points. Cost savings measures compensated lower gross income resulting from decline in sales. Staff costs were reduced by 15.4% and the staff level by approximately 25,000 employees. In 2005, Group sales totaled EUR15.5 billion. On an adjusted basis, this represents a year-on-year decline of 4.2%, primarily the result of the extensive reorganization measures. Operating EBITDA was EUR544 million, an increase of EUR26 million or 5% over the 2004 financial year. This was clearly ahead of the earnings target. In the Group the EBITDA margin improved from 3.2% to 3.5% and is to be improved significantly over the next few years. In the first quarter of 2006, adjusted EBITDA was ahead of plan. Earnings, without Real Estate, are at the level of the previous year. Sales and earnings in the Department Stores segment are up on the previous year. As an expected result of a reduction of the advertising budget and a streamlining of the catalogue, sales at Universal Mail Order were lower than the previous year. On the other hand, Specialty Mail Order sales were higher than in the previous year. The performance of the Thomas Cook travel business remains good, with earnings exceeding those of the previous year. At the Annual General Meeting, the Group confirmed its sales and earnings guidance for 2006. A full-text copy of KarstadtQuelle AG's 2005 full-year report is available at http://researcharchives.com/t/s?8d4 Headquartered in Essen, Germany, KarstadtQuelle AG -- http://www.karstadtquelle.com/-- is the country's largest department store and mail order group, employing 90,000 people. The group's adjusted results for 2005 showed EUR15.4 billion in net sales and EUR544 million in EBITDA. KarstadtQuelle posted EUR316.5 million in net loss and EUR3.0 billion in net financial liabilities. The retailer has been suffering from sluggish consumption and high unemployment rate in Germany. The group is currently restructuring operations by selling off non-core assets and implementing cost-saving measures. As Dec. 31, 2005, KarstadtQuelle had total assets of EUR9.138 billion, down from EUR11.643 billion a year ago. The group also had EUR290 million in net equity, markedly lower than EUR596 million in 2004. MOHR EDV: Claims Filing Period Ends May 18 ------------------------------------------ Creditors of Mohr EDV-Beratungs GmbH have until May 18, to register their claims with court-appointed provisional administrator Dr. Oliver Liersch. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on June 8, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hameln Saal 106 Zehnthof 1 31785 Hameln, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hameln opened bankruptcy proceedings against Mohr EDV-Beratungs GmbH on April 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Mohr EDV-Beratungs GmbH Attn: Manfred Mohr, Manager Kohlerwinkel 5 31832 Springe, Germany The administrator can be contacted at: Dr. Oliver Liersch Karl-Wiechert-Allee 1c 30625 Hannover, Germany Tel: 0511/554706-0 Fax: 0511/554706-99 TEGTMEIER BAU: Claims Registration Ends May 18 ---------------------------------------------- Creditors of Tegtmeier Bau GmbH & Co. KG have until May 18, to register their claims with court-appointed provisional administrator Stephan Holtershinken. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 8, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hameln Saal 106 Zehnthof 1 31785 Hameln, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hameln opened bankruptcy proceedings against Tegtmeier Bau GmbH & Co. KG on March 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Tegtmeier Bau GmbH & Co. KG Allernweg 10-12 31840 Hess. Oldendorf, Germany Attn: Juergen Haberer, Manager Uesergrund 15 31840 Hess. Oldendorf, Germany The administrator can be contacted at: Stephan Holtershinken Marienstrasse 126 D-32425 Minden, Germany Tel: 0571/64577-10 Fax: 0571/645777-39 V8 PERFORMANCE: Claims Filing Period Ends May 18 ------------------------------------------------ Creditors of V8 Performance Limited have until May 18, to register their claims with court-appointed provisional administrator Marc Schmidt-Thieme. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 29, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Saal 14 1. OG Gebaude D Mathildenplatz 15 64283 Darmstadt, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Darmstadt opened bankruptcy proceedings against V8 Performance Limited on March 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: V8 Performance Limited Neustadter Strasse 26 64747 Breuberg, Germany Attn: Dieter Heyl, Manager Traubenbrunnen 35 64749 Hochst, Germany Johann Rauch, Manager Gartenstrasse 13 63739 Aschaffenburg, Germany The administrator can be contacted at: Marc Schmidt-Thieme Soldnerstr. 2 68219 Mannheim, Germany Tel: 0621/877080 Fax: 0621/8770820 =================== K A Z A K H S T A N =================== ANAS: Proofs of Claims Deadline Slated for May 16 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region declared LLP Anas insolvent on Feb. 20. Creditors have until May 16, to submit written proofs of claim to: Jahayeva Str. 71 Kyzylorda, Kazakhstan Tel: 8 324 (22) 27-23-65 8 324 (22) 27-24-55 8 324 (22) 24-51-23 8 324 (22) 24-53-30 AVTOTRANSSERVICE: Mangistau Court Opens Bankruptcy Proceedings -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region commenced bankruptcy proceedings against LLP Avtotransservice on March 2. BN-COMPANY: Proofs of Claims Deadline Slated for May 16 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Bn-Company insolvent. Creditors have until May 16, to submit written proofs of claim to: Jambyl Str. 9 Karaganda, Kazakhstan JANA-IRTYSH: Creditors' Claims Due May 16 ----------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Jana-Irtysh insolvent on Feb. 23. Creditors have until May 16, to submit written proofs of claim to: Gagarina Str. 89-129 Pavlodar, Kazakhstan Tel: 8 (3182) 45-47-31 8 (3007) 57-67-73 JULDYZ-PV: Claims Registration Ends May 16 ------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Juldyz-Pv insolvent on Feb. 17. Creditors have until May 16, to submit written proofs of claim to: Gagarina Str. 89-129 Pavlodar, Kazakhstan Tel: 8 (3182) 45-47-31 8 (3007) 57-67-73 MEDKOMPLEKT-K: Creditors Must File Claims by May 16 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region declared LLP Medkomplekt-K insolvent on Feb. 20. Creditors have until May 16, to submit written proofs of claim to: Jahayeva Str. 71 Kyzylorda, Kazakhstan Tel: 8 (324(22) 27-23-65 27-24-55 24-51-23 24-53-30 NOGAI-5: Claims Registration Ends May 16 ---------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda Region declared LLP Nogai-5 insolvent. Creditors have until May 16, to submit written proofs of claim to: Jambyl Str. 9 Karaganda, Kazakhstan TOLKYN: Creditors' Claims Due May 16 ------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Tolkyn insolvent on Oct. 18, 2005. Creditors have until May 16, to submit written proofs of claim to: Kaldayakova Str. 89-26 Almaty, Kazakhstan Tel: 8 (3272) 91-76-59 91-18-86 VICTORIA: Creditors Must File Claims by May 16 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Victoria insolvent on Aug. 24, 2005. Creditors have until May 16, to submit written proofs of claim to: Kaldayakova Str. 89-26 Almaty, Kazakhstan Tel: 8 (3272) 91-76-59 91-18-86 ===================== N E T H E R L A N D S ===================== VICTORIA ACQUISITION: Moody's Upgrades Senior Debt Rating to B2 --------------------------------------------------------------- Moody's Investors Service affirmed the B1 corporate family rating of Victoria Acquisition III BV and concurrently upgraded the rating on Vendex' senior notes to B2 from B3. The group's announcement of a refinancing that includes a EUR460 million floating rate PIK issuance, as well as the repayment of approximately EUR315 million in senior debt, prompted the rating action. The proposed transaction enables the payment of a EUR460 million dividend to the financial sponsor consortium of Vendex, comprised of KKR, Permira, Cinven and Alp Invest, structured as a repayment of an equivalent amount of shareholder debt which formed part of the group's 2004 LBO capital structure. This shareholder debt was initially given equity treatment due to the fact that it was structurally and contractually subordinated to the group's senior notes, interest was non-cash pay for life, was held by the group's private equity consortium shareholders and was structured as part of a fiscally advantageous equity capital structure. The proposed PIK issuance will be sold to third parties, interest is cash pay at the option of the issuer and as publicly listed securities, will form part of the overall group's debt capital structure. As a result, we have incorporated their issuance into the group's total leverage calculation. Concurrent with the PIK issuance, the group has announced the possible disposal of its Consumer Electronics business and its intention to use proceeds to repay a portion of senior debt and use the remainder to pay a dividend to its sponsors. The affirmation of Vendex' B1 corporate family rating reflects the fact that as a result of this transaction, Moody's calculates Vendex' leverage pro forma for the proposed transaction at c. 6.4x which will be above the group's 5.9x pro forma leverage at the initial rating of the 2004 LBO. Moody's acknowledges that whilst the company has been strengthening within the rating category due to operating improvements, cost cutting and improved working capital management, etc, leading to improved free cash flow, the decision to pay a special dividend in the form of a PIK notes issuance has eliminated the financial flexibility in terms of upward rating momentum that had been building since the original rating assignment. The decision to upgrade the rating of the senior notes results predominantly from the application of cash to the reduction in priority debt within the capital structure thereby strengthening the position of the senior notes relative to the corporate family rating. The retail environment in the Netherlands and in other countries in which Vendex operates remains difficult, however the group has had success in improving margins and continuing to deliver growth. Operating with 13 formats, the group benefits from some diversification of revenues and earnings but there is also a heightened degree of complexity in the business compared with other rated retail peers. Operating performance at V&D remains difficult, even after substantial cost cutting and store closures. In Moody's opinion, achieving a turnaround in this business will remain an ongoing challenge in terms of management time and free cash flow absorption. The refinancing proposes the repayment of c. EUR315 million of senior debt using cash on balance sheet and proceeds from the expected disposal of the consumer electronics business. This reduces the amount of debt ranking ahead of the high yield notes by more than 50%, reduces cash interest expense and reduces the amount of scheduled debt amortization over the next two years. However, Moody's cautions that many of the initial cost savings immediately identified post LBO have already been achieved which may slow the pace of future deleveraging. Nevertheless, Moody's notes that the group continues to identify additional sources of cost savings, particularly with respect to working capital management. The outlook for Vendex' ratings is stable, reflecting the fact that despite operating in difficult retail environments, the group has managed to generate substantial operating cash flow since the LBO through cost cutting and more efficient working capital management. Furthermore, its diversified retail formats -- including DIY, department stores, fashion chains and variety/electrical -- provides it with material scale, especially in its home market in the Netherlands, stability and a platform from which to continue to drive synergies, such as procurement, across the various chains. Whilst pro forma leverage is currently at 6.4x, the ratings affirmation reflects Moody's expectation that this should transition to 6.0x over the course of 2006. Ratings would come under downward pressure if total leverage remains materially above 6.0x either as a result of: -- operating performance weakness and therefore implying a reversal in recent improvements or a failure in management's strategy; or -- from a more aggressive financial policy. Other key financial metrics would be consolidated EBITA margins below 4% and RCF/net adjusted debt below 8%. An upgrade would require consolidated leverage approaching 5x; RCF/net adjusted debt above 10% and evidence that a turnaround at V&D can be sustained. Based in Amsterdam, the Netherlands, Victoria Acquisition III is the indirect parent of Vendex KBB, one of the leading non-food retailers in the Netherlands with operations in several other European countries. For the twelve months ended Jan. 31, Vendex generated consolidated revenues of EUR4.040 billion. VICTORIA ACQUISITION: S&P Cuts Sr. Unsecured Debt Rating to B- -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Victoria Acquisition III B.V., the parent company of The Netherlands-based nonfood retailer Koninklijke Vendex KBB N.V., to 'B+' from 'BB-'. This follows the announcement that Vendex's holding company plans to refinance its shareholder loans with the net proceeds of a EUR460 million payment-in-kind note issue due 2015. The outlook is stable. At the same time, Standard & Poor's lowered its senior unsecured debt rating on Vendex to 'B-' from 'B'. All ratings assume that the proposed note issue will not exceed EUR460 million and are subject to satisfactory review of final documentation by Standard & Poor's. "The downgrade reflects the increase in leverage as a result of the refinancing of shareholder loans, which were treated as equity, with the PIK note, which is viewed as debt," said Standard & Poor's credit analyst Sunita Kara. Pro forma for the transaction, Vendex's adjusted net debt to earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) for the fiscal year ended Jan. 31, would be about 5.5x, an increase from about 4.5x before the proposed transaction. "Standard & Poor's nevertheless expects that Vendex will continue to maintain a sound operating performance despite a challenging market environment," Ms. Kara added. To maintain the ratings and outlook, adjusted net debt to EBITDAR should remain within the 5.0x to 5.5x range. S&P believes the most prominent risk to the leverage target would be further material capital structure changes. Positive rating movement appears unlikely at present given the group's focus on shareholder value creation, which S&P expects to constrain the sustainability of a significantly improved financial profile. =========== N O R W A Y =========== NORDIC TELEPHONE: Fitch Rates EUR2.03-Bln Senior Notes at B+ ------------------------------------------------------------ Fitch Ratings gave Nordic Telephone Company Holding ApS's issue of EUR2.033 billion equivalent senior notes a final B+ rating. The notes are split between fixed-rate Euro and U.S. dollar tranches, and a floating-rate Euro tranche. The B+ rating on NTC Holding's senior notes reflects the more limited recoveries expected for this subordinated instrument in a distress scenario, given the current levels of secured and unsecured debt ranking senior to this instrument. The proceeds from the senior notes are to be used to repay the EUR2.03- billion bridge facility. The notes are senior obligations of NTC Holding and benefit from second-ranking security over NTC Holding's shares in Nordic Telephone Company ApS. The notes are not guaranteed by TDC or NTC, are not on lent to NTC or TDC, and are structurally subordinated to the existing debt at TDC. NTC Holding senior notes rated B+: -- EUR800 million 8.25% senior notes due 2016; -- USD600 million 8.875% senior notes due 2016; and -- EUR750 million floating-rate notes due 2016. TDC A/S: Fitch Affirms Senior Secured Bank Loans at BB+ ------------------------------------------------------- Fitch affirmed TDC A/S's Issuer Default Rating at BB- with Stable Outlook and senior secured bank facilities at BB+. The various notes issued under TDC's EMTN program are affirmed at BB-. EMTN bonds rated BB-: -- DEM 5.0% notes due 2008; -- JPY 1.28% notes due 2008; -- EUR 5.625% notes due 2009; and -- EUR 6.5% notes due 2012. =========== P O L A N D =========== CENTRAL EUROPEAN: Earns US$7.8 Million in First Quarter 2006 ------------------------------------------------------------ Central European Distribution Corporation reported its financial results for the first quarter ended March 31, 2006. Net sales were approximately US$190.1 million in the first quarter of 2006, compared to US$150.0 million for the same period in 2005, an increase of 27%. Unaudited operating income for the first quarter increased 116% from US$6.7 million to US$14.6 million. Unaudited net income was approximately US$7.8 million, compared to US$4.6 million, in the same period of 2005. The comparable non-GAAP net income was US$4.9 million. The difference between the U.S. GAAP net income and comparable non- GAAP net income reflects the expensing of stock options and foreign exchange movements from our Senior Secured Notes financing. Highlights: -- Net sales up 27% to US$190 million; -- Gross margin up 50%, from 13% to 20%; -- Operating income up 116% to US$14.6 million; -- EBITDA up 133% to US$17.9 million; -- Cash Flow from operations increased over US$10 million "We continue to see positive synergies from our newest acquisitions of Bols and Polmos Bialystok, as well as executing on one of our key management objectives of increasing our direct distribution share of our newly acquired vodka brands from 36% to 38%," Mr. William Carey, CEO and President, said. "We are pleased to see the continuation of strong operating dynamics within the company evidenced by gross margins approaching 20% and continued focus on reducing overheads." Mr. Carey continued, "We were able to see the new trade terms that became effective December 1, 2005 take effect with a record first quarter cash flow of over US$10 million comparing with first quarter 2005 even with an US$18.5 million bond interest payment made in January." The weighted average number of shares used for calculating diluted earnings per share for the first quarter 2006 was 24,073,359 compared to 17,124,446 for the first quarter of 2005. CEDC confirms its previously announced full-year 2006 guidance of net sales of US$931 to US$956 million. Central European Distribution Corporation is the largest vodka producer in Poland by value and produces the Absolwent, Zubrowka, Bols and Soplica brands, among others. CEDC currently exports Zubrowka to European and Asian markets. It operates 15 distribution centers and 78 satellite branches throughout Poland. CEDC imports many of the world's leading brands to Poland, including brands such as Remy Martin, Metaxa, Jim Beam, Sauza Tequila, Grant's, E&J Gallo, Sutter Home, Torres, Penfolds and Concha y Toro wines, Corona, Foster's, and Guinness Stout beers and Evian. * * * CEDC carries Moody's investors Service's B2 senior secured debt and long-term corporate family rating since 2005. It also carries a B2 Issuer Credit rating from Standard & Poor's last year. NETIA SA: Buys Back 32.4 Million Shares at PLN0.01 Per Unit ----------------------------------------------------------- Netia SA (WSE: NET) repurchased: -- 31,419,172 series I ordinary bearer notes, at PLN0.01 each; and -- 1,005,154 series II ordinary bearer notes, at PLN0.01 each; issued by Netia based on the Shares and Notes Prospectus dated April 17, 2002. The share repurchase came following the expiration of the subscription warrants program. According to the provisions of the Prospectus, the Notes were repurchased from the trustee after the three-year period following their issuance, at the price of PLN0.01 per Note. At the same date, in connection with the repurchase, the National Deposit of Securities deregistered the Notes from the depositary accounts. The Notes were redeemed at the time of their repurchase. Headquartered in Warsaw, Poland, Netia S.A. (B+/Stable/) -- http://netia.pl/-- is the leading alternative fixed-line telecommunications operator in Poland. It operates on the basis of its own, state-of-the-art fiber-optic backbone network that connects the largest Polish cities as well as its local access networks. Netia provides a broad range of telecommunications services, including voice, data and network wholesale services. =========== R U S S I A =========== BIO-KHIM-TRADE: Court Starts Bankruptcy Supervision --------------------------------------------------- The Arbitration Court of Belgorod Region will convene on June 21, 10:40 a.m., to hear the bankruptcy supervision procedure on CJSC Bio-Khim-Trade (Case No. A08-13922/05-2 B) at: Avenue 135, Room 16 Narodnyj 308610, Belgorod Region, Russia Mr. A. Ovchinnikov has been appointed temporary insolvency manager and can be reached at: Rzhevskoye Shosse, 11 Shebekino 309290, Belgorod Region, Russia The Debtor can be reached at: Nozhegolskoye Shosse Str. 2 Shebekoni 309290, Belgorod Region, Russia DAL-FACTORY: Court Names A. Bzaev as External Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Primorye Region appointed Mr. A. Bzaev as external insolvency manager for OJSC Holding Company Dal- Factory after commencing an external management bankruptcy procedure against the company (Case No. A51-9519/01 9-112). Mr. Bzaev can be reached at: Dalnezavodskaya Str. 2 690001, Vladivostok Region, Russia The Debtor can be reached at: Dalnezavodskaya Str. 2 Primorye Region Vladivostok Region, Russia EVSINSKIY MILL: Creditors Must File Proofs of Claim by May 18 ------------------------------------------------------------- Creditors of CJSC Evsinskiy Mill Combine have until May 18, to submit written proofs of claim to court-appointed insolvency manager Mr. S. Lebedev at: Kamenskaya Str. 64a, Office 6 Novosibirsk Region, Russia The Arbitration Court of Novosibirsk Region commenced bankruptcy proceedings against the company (Case No. A45-10285/05-29/120) after finding it insolvent. The Debtor can be reached at: Evsino St. Chapaeva Str. 24 633220, Novosibirsk Region, Russia OIL-KHIM-SERVICE: Moscow Region Opens Bankruptcy Proceedings ------------------------------------------------------------ The Arbitration Court of Moscow Region commenced bankruptcy proceedings against CJSC Oil-Khim-Service (Case No. A40-7704/05- 86-174B) after finding it insolvent. Mr. R. Kogan has been appointed insolvency manager and can be reached at: Leskova Str. 19, 8th Floor 302040, Orel Region, Russia The Debtor can be reached at: Akademika Ilyushina Str. 17, Administration Room Moscow Region, Russia RODNIK: Bankruptcy Hearing Slated for May 16 -------------------------------------------- The Arbitration Court of Orenburg Region will convene on May 16, at 10:30 a.m., to hear the bankruptcy supervision procedure on LLC Rodnik (TIN 5617004519) at: 9th January Str. 64 Orenburg Region, Russia The case is docketed under Case No. A47-16344/2005-14GK. Mr. V. Ilyin has been appointed temporary insolvency manager and can be reached at: Naberezhnaya Str. 126 Sorochinsk, 461901, Orenburg Region, Russia The Debtor can be reached at: Stanochnyj Per. 7 Orenburg Region, Russia SIBIRTELECOM: Earns RUB673.6 Million in First Quarter 2006 ---------------------------------------------------------- Sibirtelecom OJSC published its unaudited financial results for the first quarter of 2006 prepared in accordance with the Russian Accounting Standards. Unaudited Financial Results The Company's revenues for the first quarter of 2006 amounted to RUB5.28 billion increased by RUB187.0 million, or 3.7% against the same period in the previous year. The main factors or revenue change in the reporting period were: -- change in relations between telecom operators (an exception of long-distance revenues; -- increase of revenues from operators); -- increase of subscriber base and Internet traffic; and -- development of cellular communications. Revenues from rendering local connection services amount to 46.5% or RUB2.46 billion of the Company's revenues. A substantial element of the Company's revenues is from interconnection and traffic transfer services (RUB916.6 million) and intrazone telephone communication (RUB849.1 million rubles), 17.3% and 16.1% respectively. Revenues from document telecommunications services amount to 9.0% (RUB473.1 million), where 66% come from Internet access services. Revenues from cellular communications services amount to 4.2% or RUB220.2 million. Compared to the same period in 2005, the company saw: -- an increase of revenues from interconnection and traffic transfer services amounted to RUB490.2 million or 115.0% due to change of regulatory legal acts in telecommunication branch. -- an increase of revenues from rendering local connections services amounted to RUB271.5 million or 12.4%, which is attributed to the increase of rendering services volume (number of basic telephone sets increased by 5.2% and amounted at the end of reporting period to 4,081 items) and also is attributed to tariff indexing since Nov. 1, 2005. -- in the first quarter of 2006, revenue from rendering services under the assistance contract with Rostelecom OJSC was obtained in amount of RUB166.0 million. -- an increase of revenues from document telecommunications services which amounted to RUB140.9 million or 42.4% that was mainly caused by the increase of revenues from rendering (dial-up and dedicated) Internet access services (Internet traffic with the access through the public telephone network increased by 41.6% and amounted to 684 million minutes; amount of information transferred via Internet increased by 109.9%). -- an increase of revenues from cellular communications services amounted to RUB94.6 million or 75.3% (number of cellular subscribers (without subsidiary business) increased by a factor of 2.2 and amounted to 278,000). -- an increase of revenues from intrazone telephone communication services amounted to RUB62.1 million or 7.9% due to increase of revenues from connected operators' channel leasing, change in a way of registering revenues from connected operators' subscribers connections. The Company's expenses in the first quarter of 2006 decreased by RUB232.9 million or 5.6% against the same period in the previous year and amounted to RUB3.89 billion. Expenses related to wages, salaries and deduction for social insurance (45.4%), depreciation charges (19.6%), other expenses (12.3%) and material cost (10.5%) constitute a major share in the total amount of the expenses. Compared to the same period of 2005: -- costs related to services of Rostelecom OJSC decreased by RUB579.6 million or 94.9% due to change in the procedure of settlement with Rostelecom OJSC; -- the amount of the charged fixed asset depreciation increased by RUB125.4 million or 19.6%, in connection with an active investment policy of the Company directed to the communication network development; -- increase of other expenses amounted to RUB106.6 million or 28.6% caused by increase of expenses according to payments for agential contracts (withdrawal of non-profile business), indication of expenses according to development and application of enterprise resource planning system on the base of Oracle E-Business Suite connected with putting it into operation. The increase of the EBITDA parameter in the first quarter of 2006 against the same period of previous year totaled RUB545.2 million or 33.9%. Operating income totaled RUB1.38 billion, having increased by RUB419.8 million, or 43.3%. The operating margin is 26.3%. Income before taxation increased by RUB488.4 million, or 107.2%, and amounted to RUB943.9 million mainly due to positive dynamics of profitability and due to revenues from realization of financial investment. Net income in the first quarter of 2006 totaled RUB673.6 million, compared to RUB266.6 million for the same period in 2005. Structural Changes Since a number of statutory acts provided by the Federal Law On Communication and intended for liberalization of the Russian market of communication entered into force, the structure of relations between telecoms operators, as well as between telecoms operators and their subscribers changed, which caused considerable changes in the structure of the Company's revenues and expenses. As of Jan. 1, Sibirtelecom OJSC provided the subscribers with the services of international and domestic long-distance telephone communication on its own behalf according to previously published Addendum No. 23236 to the License for providing services of local, intrazone telephone communication. The monetary funds credited to the accounts of Sibirtelecom OJSC for the rendered services were the revenue of Sibirtelecom OJSC. Since Jan. 1, Rostelecom OJSC and other operators that were granted respective licences have the right to provide services of international and domestic long-distance telephone communication. Subscribers' payments for the provided services are the revenue of Rostelecom OJSC and other operators. In view of the above, Sibirtelecom OJSC does not receive any revenue from international and domestic long-distance telephone communication in the first quarter of 2006. At present, Sibirtelecom OJSC is settling accounts with subscribers for the provided services of international and domestic long-distance telephony on the basis of an assistance contract with Rostelecom OJSC. In accordance with the contract of assistance, Sibirtelecom OJSC provides Rostelecom OJSC with chargeable services of billing processing of international and domestic long-distance telephony, collecting payments from telephone subscribers, working with the accounts receivable of telephone subscribers, with claims and suits, etc. In accordance with the regulatory legal acts that entered into effect on Jan. 1, the procedure of settlements with the connected operators has changed considerably. As of Jan. 1, all payments for the services of interconnection and traffic transfer in respect of services of local telephony had a one-way character connection. As for services of international, domestic long-distance and intrazone telephony, the connected operators received a share of revenue from these services depending on the degree of their participation in the engineering procedure of providing these services. After Jan. 1, the settlements have a mutual character for the services of interconnection and traffic transfer while providing all kinds of telephony services and consist of three types of payment: -- for the organization of a connecting point; -- for use of the connecting point; and -- for every minute of the transferred traffic. In such a way, along with the revenues from the services of interconnection and traffic transfer, the Company bears some additional costs connected with payments to operators for the organization of connecting points, for the use of the connecting points, and transferring traffic via operator's network. A full-text copy of the Sibirtelecom's financial statements for the first quarter 2006 is available at no charge at http://www.sibirtelecom.ru/english/investors/financial.php Sibirtelecom OJSC -- http://www.sibirtelecom.ru/english-- provides both traditional telephone services and a wide range of new telecom services such as internet access services, and new billing systems. Intelligent networks, and e-commerce systems are currently under development. * * * As reported in TCR-Europe on Feb. 9, Fitch Ratings assigned a B+ Issuer Default rating to OAO Sibirtelecom along with several other companies in the European Telecommunications, Media and Technology sectors. Fitch said the outlook is stable. On Dec. 2, 2005, Fitch affirmed Sibirtelecom's ratings at Senior Unsecured 'B+' with Stable Outlook and Short-term 'B'. OAO SIBNEFT: Annual Shareholders Meeting Slated for June 22 ----------------------------------------------------------- On April 28, the Board of Directors for OAO Sibneft approved a resolution to hold the company's annual general meeting of shareholders on June 22, in Moscow. Shareholders will be asked to review and vote on: -- approval of the company's 2005 annual report; -- approval of the company's 2005 accounting statements; -- the distribution of profits and losses for 2005; -- election of members of the Board of Directors; -- election of members of the Audit Commission; and -- selection of an auditor for 2006. Headquartered in Moscow, Russia, OAO Siberian Oil Company is Russia's fifth-largest vertically integrated oil company by production. In 2005, the company produced 663,000 barrels of oil equivalent per day and generated total revenues of US$5.7 billion in the first six months ending June 30, 2005. Sibneft's total proved SEC reserves at yearend 2004 were reported at 2,465 million boe, giving it a fairly solid reserve life of just under 10 years. * * * As reported in the TCR-Europe on Feb. 3, Moody's Investors Service upgraded the Corporate Family Rating of OAO Siberian Oil Company to Ba1 from Ba2. Moody's has also upgraded Sibneft's senior unsecured ratings on the group's US$500 million and US$400 million Loan Participation Notes to Ba2 from Ba3. Moody's said the outlook on all ratings is positive. SOUTH-EAST-STEEL-CONSTRUCTION: Creditors' Claims Due May 18 ----------------------------------------------------------- Creditors of OJSC South-East-Steel-Construction (TIN 3663002865) have until May 18, to submit written proofs of claim to court- appointed insolvency manager Mr. V. Golov at: Rozhdestvenskiy Avenue, 5/7, Office 34 107045, Moscow Region, Russia The Arbitration Court of Voronezh Region commenced bankruptcy proceedings against after finding it insolvent. The case is docketed under Case No. A14-6429-2005. The Debtor can be reached at: Dimitrova Str. 112 394028, Voronezh Region, Russia SPIRIT-VODKA: Creditors Must File Claims by May 18 -------------------------------------------------- Creditors of OJSC Spirit-Vodka Distillery Crystal have until May 18, to submit written proofs of claim to: 9th Maya Str. 1 Mayskiy Kabardino-Balkariya Republic, Russia Mr. Y. Poliychuk has been appointed insolvency manager and can be reached at: Ilyinka Str. 5/2, office 508 109012, Moscow Region, Russia The Arbitration Court of Kabardino-Balkariya Republic has commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A20- 3254/02. STARODUBSKIY METALLIST: Court Sets May 18 Bankruptcy Hearing ------------------------------------------------------------ The Arbitration Court of Bryansk Region will convene on June 20, 12:00, noon to hear the bankruptcy proceedings against OJSC Starodubskiy Metallist (Case No. A09-9829/05-28). Creditors have until May 18, to submit written proofs of claim to court-appointed insolvency manager Mr. S. Vetrov at: Kirova Str. 9, Office 30 398018, Voronezh Region, Russia The Debtor can be reached at: Krasnykh Partizan Str. 61. Starodub Bryansk Region, Russia VERSHINO-DARASUNSKAYA: Court Names I. Dolgikh Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Chita Region commenced bankruptcy proceedings against CJSC Agro Company Vershino-Darasunskaya (TIN 7521002232) after finding it insolvent. The case is docketed under Case No. A78-6948/2005-B-60. Mr. I. Dolgikh has been appointed insolvency manager and can be reached at: Post User Box 952 672000, Chita Region, Russia The Debtor can be reached at: Vershino-Darasunskiy, Novaya Str. 13 Tungokochenskiy Region 674125, Chita Region, Russia VIMPELCOM: Prices Private Debt Swap & Proposed New Financing ------------------------------------------------------------ OJSC Vimpel-Communications (NYSE: VIP) has priced the private exchange offer launched by UBS (Luxembourg) S.A. for up to US$250 million of the US$450 million 10% Loan Participation Notes due 2009 in exchange for new Loan Participation Notes due 2016. The sole purpose of the 10% notes is to fund loans aggregating US$450 million in principal amount to VimpelCom. The aggregate principal amount of New Notes to be issued pursuant to the Exchange Offer and the Concurrent Offer is expected to total up to US$600 million. Subject to the terms and conditions of the Exchange Offer, each eligible holder who validly tenders and does not withdraw its Existing Notes will receive New Notes in the same principal amount as the Existing Notes accepted for exchange plus a cash consideration payment. The Cash Consideration Payment to be paid for Existing Notes validly tendered and not withdrawn by the early submission deadline of 5:00 p.m. (EST) on May 4, is US$80.11 per US$1,000 principal amount of Existing Notes, which includes an early submission cash payment of US$12.50 per US$1,000 principal amount of Existing Notes. Eligible holders of Existing Notes who tender after the early submission deadline will receive the Cash Consideration Payment less the early submission cash payment of US$12.50 per US$1,000 principal amount of Existing Notes, or US$67.61 per US$1,000 principal amount of Existing Notes. In addition, eligible holders will receive additional cash consideration of US$7.83 per US$1,000 principal amount of the Existing Notes accepted for exchange, calculated based on the pricing of the New Notes to be issued pursuant to the Concurrent Offer. Eligible holders whose tendered Existing Notes are accepted will also receive an amount in cash equal to the accrued and unpaid interest in respect of the Existing Notes to, but excluding, the settlement date. The New Notes will bear an annual interest rate of 8.25% and will be due May 23, 2016. The Exchange Offer will expire at 5:00 p.m. (EST) on May 18, unless extended, and the settlement date for the New Notes is expected to be May 22. About VimpelCom Headquartered in Moscow, Russia, VimpelCom -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS' brands in Kazakhstan. * * * As reported in TCR-Europe on Feb. 16, Standard & Poor's Ratings Services said that its ratings and outlook on Russian mobile telecommunications operator Vimpel-Communications (VimpelCom; BB/Positive/--) are unaffected by the company's announcement that it has launched a bid for Ukraine-based mobile telecommunications operator CJSC Kyivstar GSM (BB-/Watch Positive/--) for a consideration of US$5 billion in VimpelCom common registered shares plus assumed debt. =========== T U R K E Y =========== DENIZ FINANSAL: Fitch Rates Currency Issuer Default at BB- ---------------------------------------------------------- Fitch Ratings placed Turkey's Deniz Finansal Kiralama A.S.'s foreign currency and local currency Issuer Default Ratings of BB-. The Outlooks on both IDRs are Positive. Additionally, the agency assigned Short-term foreign and local currency ratings of B, a National Long-term rating of A and Support rating of 3. The Outlook on the National rating is Stable. Deniz Leasing's Long- and Short-term and Support ratings are driven by the potential moderate support from its majority shareholder, Denizbank A.S. Denizbank has a high propensity to support Deniz Leasing but its ability to do so is moderate because of its IDR. Deniz Leasing is highly integrated with the parent bank and is expanding its customer base through the retail distribution capabilities of the branch network of its parent. The company follows same credit approval and risk management policies with Denizbank. Deniz Leasing was founded in 1997 by Zorlu Holding to undertake financial leasing activities. The company leases machinery, equipment, motor vehicles and other fixed assets under the umbrella of Deniz Financial Services Group. At end-Q106 Denizbank owned 100% of Deniz Leasing, 11% share directly and 89% share indirectly through its 100%-owned subsidiary Deniz Factoring. ============= U K R A I N E ============= AGROSTANDART: Court Names Stepan Bonchak Insolvency Manager ----------------------------------------------------------- The Economic Court of Poltava Region appointed Stepan Bonchak as liquidator/insolvency manager for LLC Agrostandart (code EDRPOU 31847661). He can be reached at: Kremenchuk, 50 Rokiv SRSR Str. 29/6 39600 Poltava Region, Ukraine The Court commenced bankruptcy proceedings against the company on Feb. 21, after finding it insolvent. The case is docketed under Case No. 7/14. The Economic Court of Poltava Region is located in: Zigina Str. 1 36000 Poltava Region, Ukraine The Debtor can be reached at: Kremenchuk, 40 Rokiv Zhovtnya 10/8 39600 Poltava Region, Ukraine BUSINESS-CENTER: Kyiv Court Grants Debt Moratorium -------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on JSC Business-Center (code EDRPOU 23760222) on March 2, and ordered a moratorium on satisfaction of creditors' claims. The case is docketed under Case No. 24/118-b. Mr. E. Bondar has been appointed temporary insolvency manager. The Debtor can be reached at: Kozeletska Str. 9 03113 Kyiv Region, Ukraine The Economic Court of Kyiv Region is located in: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine KARAPCHIV' ALCOHOL: Court Begins Bankruptcy Supervision ------------------------------------------------------- The Economic Court of Chernivtsi Region commenced bankruptcy supervision procedure on State Enterprise Karapchiv' Alcohol Plant (code EDRPOU 00373415) on Feb. 10. The case is docketed under Case No. 5/18 b. Mr. V. Strelnikov has been appointed temporary insolvency manager and can be reached at: Golovna Str. 97/103 Chernivtsi Region, Ukraine The Economic Court of Chernivtsi Region is located in: O. Kobilyanska Str. 14 58000 Chernivtsi Region, Ukraine The Debtor can be reached at: Glibotskij District, Karapchiv 60420 Chernivtsi Region, Ukraine MALINIVSKE: Court Begins Bankruptcy Process ------------------------------------------- The Economic Court of Vinnitsya Region commenced bankruptcy supervision procedure on LLC Malinivske (code EDRPOU 03731618) on Jan. 16. The case is docketed under Case No. 5/4-06. Sergij Yevtushenko has been appointed temporary insolvency manager and can be reached at: Shepetivka Vinnitsya Region, Ukraine The Economic Court of Vinnitsya Region is located in: Hmelnitske Shose 7 21036 Vinnitsya Region, Ukraine The Debtor can be reached at: Litinskij District, Malinivka Vinnitsya Region, Ukraine PODILLYA: Hmelnitskij Court Begins Bankruptcy Supervision --------------------------------------------------------- The Economic Court of Hmelnitskij Region commenced bankruptcy supervision procedure on Agricultural LLC Podillya (code EDRPOU 31503629). The case is docketed under Case No. 3/235-B. Gorban Arkadij has been appointed temporary insolvency manager and can be reached at: G. Skovoroda Str. 14/151 29008 Hmelnitskij Region, Ukraine The Economic Court of Hmelnitskij Region is located in: Nezalezhnosti Square 1 29000 Hmelnitskij Region, Ukraine The Debtor can be reached at: Krasilivskij District, Kulchini Hmelnitskij Region, Ukraine SLOVENERGOBUD: Donetsk Court Freezes Claims Payment --------------------------------------------------- The Economic Court of Donetsk Region commenced bankruptcy supervision procedure on Slovenergobud (code EDRPOU 30917093) on Jan. 20, and ordered a moratorium on satisfaction of creditors' claims. The case is docketed under 27/16 B. Andreyeva Zoya has been appointed temporary insoslvency manager and can be reached at: Donetsk Region, Ukraine Savchenko Str. 13/23 The Economic Court of Donetsk Region is located in: Artema Str. 157 83048 Donetsk Region, Ukraine The Debtor can be reached at: Slovyansk, Dibenko Str. 2A 84100 Donetsk Region, Ukraine SV: Kyiv Court Appoints S. Dyachenko to Liquidate Assets -------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. S. Dyachenko as liquidator/insolvency manager for LLC SV. He can be reached at: 03055 Kyiv Region, Ukraine a/b 149 The Court commenced bankruptcy proceedings against the company on March 3, after finding it insolvent. The case is docketed under Case No. 233/3b-05/01. The Economic Court of Kyiv Region is located in: Komintern Str. 165 01032 Kyiv Region, Ukraine The Debtor can be reached at: Bucha, Kirov Str. 13 Kyiv Region, Ukraine ZHITOMIR AGRICULTURAL: Court Opens Bankruptcy Proceedings --------------------------------------------------------- The Economic Court of Zhitomir Region commenced bankruptcy proceedings against OJSC Zhitomir' Agricultural Machine- Technological Station (code EDRPOU 30317328) on Feb. 14, after finding it insolvent. The case is docketed under Case No. 3/53 B. Orletska Ludmila has been appointed Liquidator/insolvency manager and can be reached at: Pershij Maryanivskij Lane 68 Zhitomir Region, Ukraine The Economic Court of Zhitomir Region is located in: Putyatinski Square 3/65 10002 Zhitomir Region, Ukraine The Debtor can be reached at: Zhitomir District, Kodnya 12452 Zhitomir Region, Ukraine ZOLOTIJ KOLOS: Court Starts Bankruptcy Supervision -------------------------------------------------- The Economic Court of Kirovograd Region commenced bankruptcy supervision procedure on LLC Agrofirm Zolotij Kolos. Vyacheslav Mironenko has been appointed temporary insolvency manager and can be reached at: Geroiv Stalingradu Str. 15/61 25008 Kirovograd Region, Ukraine The Economic Court of Kirovograd Region is located in: Lunacharski Str. 29 25006 Kirovograd Region, Ukraine The Debtor can be reached at: Kompaniyivskij District, Gubivka 28413 Kirovograd Region, Ukraine =========================== U N I T E D K I N G D O M =========================== ADI CAR: Appoints Jones Lowndes Dwyer Administrator --------------------------------------------------- Claire L. Dwyer of Jones Lowndes Dwyer LLP was appointed administrator of Adi Car Rental Limited (Company Number 04292755) on April 24. The administrator can be reached at: Jones Lowndes Dwyer Llp John Swift Building 19 Mason Street Manchester M4 5FT United Kingdom Tel: 0161 832 9454 Fax: 0161 832 9455 E-mail: clairedwyer@joneslowndesdwyer.co.uk The company is engaged in automobile rentals and can be reached at: Car Factory Junction 22 Busin Tweedale Way, Hollinwood Lancashire OL9 8EH United Kingdom Tel: 0161 684 8500 ASCOT MINWORTH: Hires Deloitte & Touche Administrators ------------------------------------------------------ Robin David Allen and Dominic Lee Zoong Wong of Deloitte & Touche LLP were appointed joint administrators of Ascot Minworth Limited (Company Number 5304357) on April 21. Headquartered in London, Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Headquartered in Birmingham, Ascot Minworth Limited -- http://www.ascotemblems.co.uk/-- manufactures and distributes labels, badges, stickers, emblems, logos and graphics to well known clients like Ford, Nokia, Jaguar, 3M, Land Rover and BMW. BALBY PLUMBING: Taps David Horner & Co to Administer Assets ----------------------------------------------------------- David Anthony Horner of David Horner & Co. was appointed administrator of Balby Plumbing & Heating Limited (Company Number 05074097) on April 25. David Horner & Co. -- http://www.davidhornerandco.co.uk/-- is a firm of insolvency practitioners based at three different locations, which together cover the whole of Yorkshire and the North East. The firm offers practical advice and solutions to all types of businesses, individuals and creditors, often enabling formal insolvency to be avoided. The company offers general plumbing services and can be reached at: Park, Roberts Road Balby Doncaster DN4 0JT United Kingdom CLOTHING OUTLET: HSBC Bank Appoints Grant Thornton Receiver ----------------------------------------------------------- HSBC Bank Plc appointed Joseph McLean and Keith Hinds of Grant Thornton U.K. LLP joint administrative receivers of The Clothing Outlet Limited (Company Number 00523889) on April 20. Headquartered in London, Grant Thornton U.K. LLP -- http://www.grant-thornton.co.uk/-- is the U.K. member of Grant Thornton International, one of the world's leading international organizations of independently owned and managed accounting and consulting firms. These firms provide a comprehensive range of business advisory services from around 540 offices in over 110 countries worldwide. The Clothing Outlet Limited is a holding company whose subsidiaries are engaged in designing, developing and distributing, sourcing and manufacturing garments. It can be reached at: Caressa House PO Box 9 Cemetery Road Pudsey LS28 7XD United Kingdom COLMAN COYLE: Creditors' Meeting Slated Today --------------------------------------------- Creditors of Colman Coyle will meet at 11 a.m., today, May 11, at: The New Connaught Rooms 61-65 Great Queen Street London WC2B 5DA United Kingdom 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. Colman Coyle -- http://www.colmancoyle.com-- has long been held in high regard both with clients and with other professionals involved in the residential property market for the high quality of service and advice coupled with a real emphasis on client care. CORUS GROUP: Strong Results Spur Moody's to Upgrade Ratings ----------------------------------------------------------- Moody's Investors Service has upgraded Corus Group plc's corporate family rating to Ba2, upgraded its senior unsecured and supported unsecured obligations to B1 and raised senior secured bank facility to Ba1. The rating outlook is stable. The rating upgrade to a Ba2 corporate family rating reflects: -- Corus' strengthened operating and financial performance in spite of price weakness in the third quarter of 2005; -- successful implementation of the on-going restructuring initiatives -- to be completed in 2006 -- with substantial realized cost savings; -- expectation of a successful completion of the announced sale of the aluminium assets in the second half of 2006; -- recent repayment of GBP150 million in secured debt and overall low leverage maintained by the Group as a result of the improvement in operating performance and strong market conditions; and -- Moody's expectations of a broadly unchanged steel price environment. The B1 ratings on the unsecured notes reflect bondholders' structural subordinated position to the secured bank lenders. The stable outlook reflects Moody's view that Corus' credit profile and metrics better position the company to withstand a potential downturn in steel prices and the liquidity reserves available to the company allow management to pro-actively pursue growth and integration strategies. A change in the stable outlook to positive will require metrics to be sustained over the course of 2006, notwithstanding that underlying steel prices are expected to remain volatile. Any further positive movement in the ratings will also incorporate an assessment of the group's success in strengthening its overall business profile, as well as better visibility with regard to the use of substantial cash balances accumulated by the group. Ratings affected: -- Corporate Family Rating of Corus Group plc upgraded to Ba2 from Ba3; -- EUR800 million Secured Bank Facilities at Corus Group plc and subs maturing July 2008 upgraded to Ba1 from Ba2; -- EUR800 million Unsecured Notes due 2011 issued by Corus Group plc upgraded to B1 from B2; -- GBP200 million in Unsecured Notes due 2008 upgraded to B1 from B2; -- EUR400 million (approx. EUR20 million outstanding) in Unsecured Notes due 2006 issued by Corus Finance plc upgraded to B1 from B2. Moody's last rating action on Corus was the upgrade to Ba3 on a corporate family rating with a positive outlook on March 17, 2005. Corus Group plc is headquartered in London and was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group is among the world's largest steel producers and generated annual sales of GBP10.140 billion and an operating profit of GBP1.027 billion in 2005. COVERITE LIMITED: Hires Joint Administrators from Deloitte ---------------------------------------------------------- Lee Antony Manning and Nicholas Guy Edwards of Deloitte & Touche LLP were appointed joint administrators of Coverite Limited (Company Number 00454440) on April 26. Headquartered in London, Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. Coverite Limited -- http://www.coverite.co.uk/-- is one of the largest roofing and cladding contractors in the U.K. with offices in London, Cambridge, Manchester and Scotland. FIFTH AVENUE: Appoints Joint Administrators of Deloitte & Touche ---------------------------------------------------------------- Lee Antony Manning and Neville Barry Kahn of Deloitte & Touche LLP were appointed joint administrators of Fifth Avenue Holdings Limited (Company Number 04823009) on April 24. Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The company is engaged in wholesale distribution of clothing and can be contacted at: 23-25 East Castle Street London W1W 8DF United Kingdom Tel: 020 7436 5480 Fax: 020 74360711 G.T. LOGISTICS: Financial Woes Prompt Liquidation ------------------------------------------------- Creditors of G.T. Logistics U.K. Limited resolved to liquidate the company's assets after proving that the company could no longer continue its operations due to mounting debts. Robert Michael Young and Ian Michael Rose, of Begbies Traynor, were appointed Joint Liquidators. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: G.T. Logistics U.K. Limited Finch Close Nottingham NG7 2NN United Kingdom Tel: 0115 985 0800 Fax: 0115 985 0900 GE TURBINE: Names Joint Administrators from Tenon Recovery ---------------------------------------------------------- Christopher Ratten and Simon Thomas of Tenon Recovery were appointed joint administrators of GE Turbine Engineering Limited (Company Number 5478396) on April 27. Tenon Recovery -- http://www.tenongroup.com/-- provides accounting and business advice to owner-managed and private business. The Company is engaged in Turbine Engineering and can be contacted at: Arkwright House Parsonage Gardens Manchester M3 2LF United Kingdom HEATHER SPENCER: Appoints Joint Liquidators from Baker Tilly ------------------------------------------------------------ Heather Spencer Designs Limited is winding up its operations after creditors agreed to liquidate the company's assets on March 10. Subsequently, Lindsey J. Cooper and Stephen M. Quinn, of Baker Tilly, were appointed Joint Liquidators. Baker Tilly -- http://www.bakertilly.co.uk/-- is a leading independent firm of chartered accountants and business advisers in the United Kingdom. Heather Spencer Designs Limited -- http://www.hspencer.u- net.com/ -- manufactures children furniture. It can be contacted at: Unit 22 Radcliffe Moor Road Bradley Fold Trading Estate Bradley Fold Bolton Lancashire BL2 6RT United Kingdom Tel: 01204 533 224 Fax: 01204 533 992 HOME APPLIANCE: Claims Filing Period Ends July 7 ------------------------------------------------ Creditors of Home Appliance Services Limited have until July 7, to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors, if any, to appointed Joint Liquidators Ian Michael Rose and Robert Michael Young. Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. The company can be reached at: Home Appliance Services Limited 47 Market St. Heckmondwike WF16 0EU United Kingdom Tel: 01924 410159 J & N SHOPFITTERS: Creditors Confirm Voluntary Liquidation ---------------------------------------------------------- Creditors of J & N Shopfitters Limited confirmed the company's voluntary liquidation after a winding up resolution was passed on March 8. Creditors also ratified the appointment of A.S. Wood, of Mazars LLP, as Liquidator. Mazars -- http://www.mazars.com/-- is an international, integrated and independent organization, specialized in audit, accounting, tax and advisory services. The company can be reached at: J & N Shopfitters Limited Upper Villiers Street Imex Business Park Wolverhampton WV2 4XE United Kingdom Tel: 01902 313 575 Fax: 01902 313 574 J.P. FINNEGAN: Hires Joint Administrators of SFP ------------------------------------------------ Simon Franklin Plant and Daniel Plant of SFP were appointed joint administrators of J.P. Finnegan Plant Hire & Civil Engineering Contractors Limited (Company Number 02008788) on April 25. The administrators can be reached at: SFP 9 Ensign House Admirals Way Marsh Wall London E14 9XQ United Kingdom The company is engaged in rentals of construction equipment, general construction and civil engineering and can be reached at: Unit 4 Kiln Way Woodville Swadlincote Derbyshire DE11 8ED United Kingdom Tel: 01283 221 059 Fax: 01283 550 744 JACKET FOUR: Creditors Pass Winding Up Resolution ------------------------------------------------- Creditors of Jacket Four Limited passed a resolution to wind up the company's operations during members' extraordinary general meeting on March 13. N.A. Bennett of Leonard Curtis was appointed Liquidator. Leonard Curtis -- http://www.leonardcurtis.co.uk/-- specializes in business recovery and insolvency. It can be reached at: Jacket Four Limited Hyde House The Hyde London NW9 6LH United Kingdom Tel: 020 8205 4477 Fax: 020 8205 2043 NATURAL OPTIONS: Names Dominic Lee Zoong Wong as Administrator -------------------------------------------------------------- Dominic Lee Zoong Wong of Deloitte & Touche LLP was appointed administrator of Natural Options (UK) Limited (Company Number 04022986) on April 18. Headquartered in London, Deloitte & Touche LLP -- http://www.deloitte.com/-- is the United Kingdom member firm of Deloitte Touche Tohmatsu, a Swiss Verein whose member firms are separate and independent legal entities. It provides audit, tax, consulting and corporate finance services through more than 9,000 people in 21 locations. The company manufactures kitchen furniture and can be contacted at: 1 Bonington Road Nottingham NG3 5JR United Kingdom NORTHERN LAMINATORS: Taps Andrew Clay as Administrator ------------------------------------------------------ Andrew T. Clay of Andrew Michaels & Co. Ltd. was appointed administrator of Northern Laminators Limited (Company Number 05069236) on April 18. The administrator can be contacted at: Andrew Michaels and Co. Ltd. Concept House Brooke Street Cleckheaton BD19 3RY United Kingdom Tel: 01274 855530 Fax: 01274 855540 The company is engaged in lamination and can be reached at: Unit 4 The Moorings Waterside Industrial Park Waterside Road Leeds LS10 1RW United Kingdom Tel: 0113 271 2700 NRG VICTORY: Scheme Creditors' Meeting Slated for May 23 -------------------------------------------------------- The High Court of Justice requests all Scheme Creditors of NRG Victory Reinsurance Limited to attend, either in person or by proxy, the Scheme Creditors' meeting at 3:00 p.m., on May 23, at: Clifford Chance LLP 10 Upper Bank Street London E14 5JJ United Kingdom A Scheme Creditor or his proxy must register his attendance before the commencement of the Creditors' Meeting. Registration will start at 2:00 p.m., on May 23. The purpose of the creditors' meeting will be to consider and to approve a scheme of arrangement made between the Scheme Company and the Scheme Creditors pursuant to Section 425 of the Companies Act 1985. The Chairman of the Creditors' Meeting will address Scheme Creditors generally on the Scheme and on issues relevant to voting immediately prior to the commencement of the Creditors' Meeting. Scheme Creditors may vote in person at the Creditors' Meeting or may appoint another person, whether a Scheme Creditor or not, as their proxy to attend and vote in their place. Notice of the Creditors' Meeting and the statement required to be provided to creditors pursuant to Section 426 of the Companies Act 1985, together with Voting Forms and Forms of Proxy to use at the Creditors' Meeting, have been circulated to known Scheme Creditors as well as brokers and other intermediaries. Copies of these documents, as well as the Information Memorandum, the Scheme and blank Forms of Proxy and Voting Forms may be obtained at: The Scheme Company Attn: Martin Baker or Lyn Davies NRG Victory Management Services Limited Chartered House, Park Street Ashford, Kent TN24 8EQ United Kingdom Tel: +44 (0) 1233 722660 Fax: +44 (0) 1233 722 601 The documents may be downloaded at no charge at http://www.nrg-solventscheme.co.uk/ Scheme Creditors are given until 5:00 p.m., on May 19, to submit completed Proxy and Voting Form to the address or by E-mail at scheme.manager@nrgv.co.uk Forms may also be handed in at the registration desk before the Creditors' Meeting. Faxed and e-mailed Forms of Proxy and Voting forms will be accepted if legible, but Scheme Creditors are requested to send the originals, to be received by the Scheme Company on or before 5:00 p.m., on May 30. The Court appointed Alan John Boyce, Chief Executive of the Scheme Company or, failing him, Paul Anthony Brereton Evans of PricewaterhouseCoopers LLP, to act as Chairman of the Creditors' Meeting and has directed the Chairman of the Creditors' Meeting to report the result of the Creditors' Meeting to Court. If approved by the requisite majority of Scheme Creditors, the Scheme will be subject to the subsequent approval of the Court. Any policyholder who has any questions concerning the action he is required to take should contact the Scheme Company. The video link to the Creditors' Meeting will commence at 10:00 a.m., on May 23. Creditors must allow sufficient time for arrival and registration with the contact person, Elizabeth Pillion. However, a Scheme Creditor who only views the Creditors Meeting thru video link will not be considered present as such Creditors' Meeting for the purpose of voting on the Scheme unless he completed a Form of Proxy authorizing someone to attend and vote at the Creditors' Meeting in London in his behalf. PIPE HOLDINGS: Moody's Might Downgrade Debt Ratings After Review ---------------------------------------------------------------- Moody's Investors Service placed the ratings of Pipe Holdings 2 Limited, a holding company of Polypipe Building Products Ltd. on review for possible downgrade following the announcement of a proposed GBP65-million debt issuance in the form of payment-in- kind notes at the holding company Pipe Holdings 1 Plc. Proceeds and existing cash resources will be used to repay the existing vendor loan of GPB39 million at Pipe Holding 2 Plc, to finance a GBP33.5 million payment to shareholders via a dividend and to cover fees and expenses. Affected ratings: -- B1 Corporate Family Rating at Pipe Holdings 2 Ltd.; -- B1 rating of GBP122 million Senior Secured Notes due 2011 at Pipe Holdings Plc; -- B3 rating of GBP66 million Senior Unsecured Notes due 2013 at Pipe Holdings Plc. The review will encompass an analysis of the impact of the PIK note issuance on the rated entities and any potential new servicing demands on the restricted group which backs the rated debt. While the new notes will be structurally subordinated to and outside of the restricted group of the rated debt, Moody's will review whether they may place additional pressure on the capital structure and on Polypipe's long-term financing plan. The review will also include an evaluation of Polypipe's financial profile in light of the recent publication of its yearend results and outlook guidance provided by management. Based in Doncaster, South Yorkshire, Polypipe Building Products Ltd. manufactures a wide range of plastic pipe systems predominantly for the U.K. construction market. Revenues for the year ended Dec. 31, 2005 were GBP315.1 million. REFCO INC: Shareholders Drag BAWAG PSK in Class Action Suit ----------------------------------------------------------- As previously reported, RH Capital Associates LLC, Pacific Investment Management Company LLC, and PIMCO Funds: Pacific Investment Management Series - PIMCO High Yield Fund -- the lead plaintiffs -- filed with the U.S. District Court in the Southern District of New York a federal securities law class action on behalf of themselves and all other entities who purchased publicly traded shares, bonds or notes of Refco Inc., and its affiliates, and who were allegedly injured between Aug. 5, 2004, and Oct. 17, 2005. Since the criminal, civil and regulatory investigations on Refco's alleged financial misconduct are underway, the Investors amended their Class Action Complaint on May 8, to incorporate several facts that have recently come to light concerning a significant co-conspirator in the Refco debacle -- BAWAG P.S.K. Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft. The Investors assert that BAWAG was directly involved in the fraudulent scheme at Refco and, through a series of interlocking relationships and activities, was able to exert undue influence and control over Refco. The Investors allege that when a number of Refco's customers -- including BAWAG -- suffered extensive trading losses in the worldwide financial crises of 1998 to 2000, they were unable to repay the credit extended to them by Refco. To avoid disclosing these uncollectible debts, Refco's former CEO Phillip Bennett transferred the debts to Refco Group Holdings, Inc., which was owned by Mr. Bennett, and then orchestrated a series of transactions whereby the receivable was temporarily paid off at the end of each of Refco's financial reporting periods. BAWAG actively assisted Mr. Bennett in concealing the uncollectible receivable in at least three ways: -- In 1999, shortly after Refco first suffered these losses, BAWAG injected a huge amount of fresh capital by acquiring a 10% stake in Refco through BAWAG's wholly owned affiliate, BAWAG Overseas, Inc.; -- BAWAG injected additional capital through a series of undisclosed loans between Refco Holdings, Refco, DF Capital, Inc., Desana Foundation, and perhaps other entities affiliated with BAWAG or Refco, in return for an additional undisclosed 27% equity stake in Refco; and -- BAWAG participated in at least six transactions at the end of Refco's fiscal years 2000 through 2005 that allowed Refco Holdings to temporarily pay off the receivable it owed to Refco. "This significant economic assistance that BAWAG gave to Bennett provided BAWAG with disproportionate influence and control over Bennett -- a CEO who was clearly desperate to conceal the existence of Refco Holdings' uncollectible receivable," Max Berger, Esq., at Bernstein Litowitz Berger & Grossman LLP, in New York, asserts. Mr. Berger also points out that Mr. Bennett's economic dependence on BAWAG is further evidenced by the fact that, when the US$430 million related-party receivable came to light in October 2005, and Mr. Bennett was anxious to avoid full disclosure of all of the facts, he turned to BAWAG for a US$420 million loan to pay off Refco Holdings' debt to Refco. Mr. Berger notes that when Refco was recapitalized on Aug. 5, 2004, BAWAG received cash payments from Refco Holdings totaling US$1.34 billion to cash out its direct and indirect equity interests in Refco. The Investors demand a trial by jury. A full-text copy of the 277-page Amended Class Action Complaint is available at no charge at: http://bankrupt.com/misc/refcoclassactioncomplaint.pdf The other Class Action defendants are: * the Bennett Shell-Entity Defendants, consisting of Refco Group Holdings, Inc., and The Phillip R. Bennett Three Year Annuity Trust; * the Refco-Affiliated Defendants, consisting of Refco Managed Futures LLC, Westminster-Refco Management LLC, and Lind-Waldock Securities LLC; * the Officer Defendants, consisting of Phillip R. Bennett, Gerald M. Sherer, William M. Sexton, Santo C. Maggio, Joseph J. Murphy, Phillip Silverman, and Dennis A. Klejna; * Refco Group's former Executive Vice President and Chief Financial Officer Robert C. Trosten; * Refco Group's former Chief Executive Officer Tone N. Grant; * the Audit Committee Defendants consisting of Ronald L. O'Kelley, Leo R. Breitman, and Nathan Gantcher; * the defendants affiliated with Thomas H. Lee Partners, including: -- THL Refco Acquisition Partners, THL Refco Acquisition Partners II, and THL Refco Acquisition Partners III; -- Thomas H. Lee Investors Limited Partnership; and -- The 1997 Thomas H. Lee Nominee Trust, a trust over which Thomas H. Lee has voting and investment control; * the THL Individual Defendants, consisting of Mr. Lee, David V. Harkins, Scott L. Jaeckel, and Scott A. Schoen; * Refco's purportedly independent auditor Grant Thornton LLP; and * the Underwriter Defendants, which consist of: -- Credit Suisse Securities (USA) LLC, -- Banc of America Securities LLC, -- Deutsche Bank Securities, Inc., -- Goldman, Sachs & Co., -- Merrill Lynch, Pierce, Fenner & Smith Incorporated, -- J.P. Morgan Securities, Inc., -- Sandler O'Neill & Partners, L.P., -- HSBC Securities (USA) Inc., -- William Blair & Company, L.L.C., -- Harris Nesbitt Corp., -- CMG Institutional Trading LLC, -- Samuel A. Ramirez & Company, Inc., -- Muriel Siebert & Co. Inc., -- The Williams Capital Group, L.P., and -- Utendahl Capital Partners, L.P. Headquartered in Vienna, Austria, BAWAG P.S.K., formally known as Bank Fuer Arbeit und Wirtschaft AG, had total assets of EUR56.3 billion as of Dec. 31, 2004. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. TARGET TRADE: Hires Joint Administrators from Kroll --------------------------------------------------- Andrew John Pepper and Alastair Paul Beveridge of Kroll Limited were appointed joint administrators of Target Trade Finance Limited (Company Number 04252652) on April 26. Kroll Limited -- http://www.krollworldwide.com/-- offers risk- consulting services worldwide. The firm is an operating unit of Marsh & McLennan Companies, Inc., the global professional services firm. Kroll's services include corporate advisory and restructuring, financial accounting, valuation and litigation, electronic evidence and data recovery, business intelligence and investigations, background screening, and security services. The company is engaged in security broking and fund management and can be reached at: St. Alphage house 2 Fore Street London EC2Y 5HD United Kingdom Tel: 0870 751 8040 Fax: 0870 751 8050 UNITED BISCUITS: Fitch Upgrades Junk Senior Debt Ratings to B- -------------------------------------------------------------- Fitch Ratings upgraded United Biscuits Finance's senior subordinated notes to B- from CCC+ and the Recovery Rating to RR4 from RR5. At the same time, the agency affirmed Regentrealm Limited's -- a subsidiary of UB -- at Issuer Default B-, Short term B and its senior secured debt at BB-/RR1. The Outlook has been changed to Stable from Negative. "UB has delivered strong results in FY05, Fitch's Leveraged Finance team Director Pablo Mazzini disclosed. "Despite the tough trading environment in core regions such as the U.K. and Northern Europe, UB has been able to improve cash flow generation by moving towards healthier products, which allows for premium pricing, while realizing part of the expected cost savings from the integration of past acquisitions." The Stable Outlook reflects UB's diminished refinancing risk. Improved performance has led to better credit ratios with FFO net leverage of 3.1x at YE05 and FFO net fixed charge cover of 1.5x. This, combined with the GBP75 million senior debt pre- payment made between April 2005 and February 2006, 64% of which was allocated to the amortizing senior tranche, has translated into lower pressure on the future net free cash flow. Improved financial performance and senior debt prepayment have enabled Fitch to upgrade its rating on the senior subordinated notes, reflecting average recovery prospects upon default. The recovery assumptions for UB as a going concern business reflects its leading positions in branded biscuits and snacks across a number of European markets and the possibility of disposing of the regional operations separately in pursuing better recoveries. The distressed multiple has been capped at 6.5x EBITDA to reflect limited top line growth potential, pricing pressure and growing relevance of discounters in the retail channel. Additionally, significant research and development as well as advertising and promotion required to retain market-leading products have been considered. Nevertheless, UB remains exposed to overall low organic sales growth prospects, the pressure from retailers in the core U.K. operations and growing threats in Northern Europe. Offsetting these are cost savings from UB's restructuring efforts and its suitable platform for growth from its wide range of brands, especially within the growing healthier categories, and good profitability from its Southern European operations. Fitch does not expect large cash outflows with regards to plant rationalization in the foreseeable future, although ongoing costs of around GBP20 million per annum relating to cost-saving and other restructuring initiatives are factored into the current ratings. UB is the leading manufacturer of biscuits in the U.K. and the Iberian Peninsula and the second largest in France and the Benelux region. UB achieved sales of GBP1.27 billion in FY05 under IFRS reporting, up from GBP1.21 billion in FY04, with an EBITDA of GBP204 million before exceptional cash flow costs of GBP27.1 million, largely related to the integration of the acquisitions made in 2004. * Fitch Assigns IDRs to European Property Companies --------------------------------------------------- Fitch Ratings assigned Issuer Default ratings to European property companies. Revised senior unsecured ratings now apply to the senior unsecured bond issues of these entities. The senior unsecured ratings, which are attached to the bonds of the investment grade property companies below, have remained unchanged. This mainly reflects the weighting towards recovery relative to default analysis in the existing senior unsecured ratings for this sector. Fitch's analysis prior to this did not formally disaggregate these aspects of the analysis and as a result the newly introduced IDRs are one notch below the revised senior unsecured ratings. IDRs reflect the ability of an issuer to meet senior financial commitments on a timely basis, effectively becoming the benchmark probability of default. Securities in an issuer's capital structure will be rated higher, lower, or the same as the IDR on the basis of their relative recovery prospects. The process of establishing ratings for the obligations of issuers rated between AAA and BB- will refer, for the most part, to aggregate recoveries on the defaulted bond market as a whole for that sector and not to issuer-specific analysis since assumptions on enterprise value and creditor mass at default for these entities would be largely arbitrary. For this reason, recovery assessments and thus individual issue ratings will be based more on the long-term averages of recovery for that type of security in a given sector, after giving consideration to additional issues such as collateral value, relative subordination and other determinants of recovery. For issuers rated B+ and below, Recovery Ratings derive from a customized analysis of the individual issuer and their capital structure, assuming emergence from a defaulted stress scenario. Fitch has published criteria under which certain corporate sector entities are expected to have their senior unsecured ratings above the entity's IDR, denoting the sector's generic higher rates of recovery upon default. To date, these sectors include regulated utilities and European investment property companies. Existing Outlooks and Rating Watch status assigned to the previous Senior Unsecured, counterparty or other issuer ratings remain unchanged and apply to the IDRs for the issuers as below. Similarly, the Rating Watch status on previous issue ratings remains unchanged for the issuers listed below. The IDRs are listed for European property issuers, together with senior unsecured ratings, which have remained unchanged, except for MEPC. British Land Company plc -- IDR: BBB- Outlook Stable; -- Short-term rating F3; and -- Senior unsecured rating: BBB Brixton plc -- IDR: BBB- Outlook Stable; -- Short-term rating F3; and -- Senior unsecured rating: BBB Hammerson plc -- IDR: BBB+ Outlook Stable; -- Short-term rating F2; -- Senior unsecured rating: A- MEPC (1946) Limited a) Previous Ratings -- Senior Unsecured rating: B Outlook Negative; and -- Short-term Rating B b) Revised Ratings -- IDR: B- Outlook Negative; -- Short-term rating B; and -- Senior unsecured rating: BB- PSP Swiss Property AG -- IDR: BBB+ Outlook Stable; -- Short-term rating F2; and -- Senior unsecured rating: A- Slough Estates plc -- IDR: BBB+ Outlook Stable; -- Short-term rating F2; and -- Senior unsecured rating: A- ********* 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 * * *