/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060517.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, May 17, 2006, Vol. 7, No. 97 Headlines A U S T R I A BYTYQI: Vienna Court Closes Bankruptcy Proceedings C & B GASTRONOMIE: Innsbruck Court Dismisses Bankruptcy Case ESO-TRANSPORT: Adopts Compulsory Compensation Payment Scheme F&TEAM BAU: Court to Close Bankr. Case Following Distribution MARKARITZER VERLAG: Awaits Final Distribution & Closing Protocol F R A N C E ALCATEL S.A.: Annual Shareholders' Meeting Set on Sept. 7 BELVEDERE SA: Moody's Downgrades Ratings to (P)B2 EUROTUNNEL SA: Converts Resettable Advances to Bonds S.N.C. SUMMERSUN: Gilles Gauthier Files Chapter 15 Petition S.N.C. SUMMERSUN: Chapter 15 Petition Summary G E R M A N Y BAUER AG: S&P Places BB- Rating on CreditWatch Positive FAHRION VERWALTUNGS: Claims Registration Ends May 20 FIDES LEASING: Claims Registration Ends May 26 FRESENIUS AG: Earns EUR65 Million in First Quarter 2005 FRESENIUS MEDICAL: Shareholders Approve Dividend Increase HEIDELBERGCEMENT AG: Earns EUR37 Million in First Quarter 2006 INTERAIR GMBH: Creditors' Meeting Slated for June 23 INTERTAINMENT AG: Matthias Heisse to Chair Supervisory Board SCHEFENACKER AG: Moody's Affirms B2 Corporate Family Rating SCI TARA: Claims Filing Period Ends May 26 SERR ALTEN: Meeting of Creditors Set for June 14 TIME SERVICE: Creditors' Meeting Slated for June 7 VERLAG VIDEEL: Claims Registration Ends May 18 WOE-LIEGENSCHAFTSGESELLSCHAFT: Claims Filing Period Ends May 24 ZAFT & GEHRKE: Meeting of Creditors Set on June 8 I T A L Y PARMALAT SPA: Books EUR953.2 Million in First Quarter Revenues K A Z A K H S TA N ALTYN DEN-99: Creditors Must File Claims by May 27 BERIK-1: Creditors Must File Claims by May 27 BRIZ: Creditors Must File Claims by May 27 DAAS LTD: Creditors Must File Claims by May 27 INTERNATIONAL TRADING: Claims Registration Ends May 27 KYZYLORDA GROUP: Claims Registration Ends May 27 NEFTYANAYA ENERGETICHESKAYA: Creditors' Claims Due May 27 PIRKEN & K: Claims Registration Ends May 27 SK-KLIMAT-SERVICE: Creditors' Claims Due May 27 ZEVS: Proof of Claim Deadline Slated for May 27 K Y R G Y Z S T A N MASHHAD SARMA: Creditors' Claims Due June 26 METKOMPLEKT: Creditors' Claims Due June 26 MOROI: Proofs of Claims Deadline Slated for June 26 STROIMASHINA: Public Auction on Assets Set for May 25 VITA-ULUKMAN: Bishkek Court Begins Bankruptcy Proceedings L U X E M B O U R G MELCHIOR CDO: Fitch Upgrades Combination Debt Rating to B+ N E T H E R L A N D S EFES BREWERIES: Starts Working on Eurobond Issue INVISTA BV: Moody's Upgrades Corporate Family Rating to Ba2 R U S S I A ENGINEERING FOUNDING: Bankruptcy Hearing Slated for June 15 OAO ROSNEFT: Reports 18.9 Billion BOE in Total Proved Reserves RASSVET: Court Names Y. Paramonov to Manage Insolvency Assets REM-TEKH-ENTERPRISE: Creditors Must Submit Claims by May 18 SEL-STROY: Court Names A. Kokorin as Insolvency Manager SIBUR-WEST SIBERIA: Kemerovo Court Opens Bankruptcy Proceedings SOLNTSEVSKOYE: Creditors' Claim Due May 18 STROY-PROM-SERVICE: Creditors Must Submit Claims by May 18 YARANSKIY MECHANICAL: Court Opens Bankruptcy Process S W I T Z E R L A N D INVISTA SARL: Moody's Upgrades Group, Parent's Ratings T U R K E Y ANADOLU EFES: Standard & Poor's Assigns BB Corp. Credit Rating U K R A I N E ENERGY-CONTACT: Kyiv Court Opens Bankruptcy Proceedings GALPROMEXPOCENTER: Lviv Court Starts Bankruptcy Supervision HODORIV' MEAT: Lviv Court Names Yaroslav Kechmarik as Liquidator PETROVETS: Herson Court Freezes Debt Payment REMSERVICE: Rivne Court Opens Bankruptcy Proceedings SANDMARKET-HOLDING: Court Names Sergij Simonenko as Liquidator UKRENERGOECOLOGY: Kyiv Court Starts Bankruptcy Supervision WEST-CRIMEAN ELEVATOR: Court Taps Temporary Insolvency Manager U N I T E D K I N G D O M ABBEY CONTRACTORS: Sets June 10 Claims Bar Date ABLE FABRIC: Creditors Resolve to Wind Up Operations ARTHUR WALTON: Financial Woes Prompt Winding Up Process BNB PHARMA: Taps Bijal Shah to Liquidate Assets BINNS & CO: Hires Joint Administrators from Fisher Partners BUCKFASTLEIGH COMMERCIALS: Appoints Marriotts LLP Administrator CALL CENTRE: Appoints Administrator from Begbies Traynor D.E.I. ELECTRICAL: Brings In Administrators from Kroll Limited EUROTUNNEL PLC: Converts Resettable Advances to Bonds EQUITABLE LIFE: S&P Lifts Junk Jr. Subordinated Debt Rating to B FRANK REDFERN: Bookmakers Tap Marriotts LLP Administrator FRESHLY MADE: Creditors Agree to Liquidation GAMING & ENTERTAINMENT: Auditor Raises Going Concern Doubt GREYLANDS WASTE: Hires Begbies Traynor to Administer Assets HEALTH TEC: Appoints Joint Administrators from Unity Business HOT SPOT: Advertisers Tap Begbies Traynor to Administer Assets INFOVISION SYSTEMS: Appoints Begbies Traynor Administrators J.L. FRENCH: Court Approves Second Amended Disclosure Statement MISYS PLC: Transfers 18,333 Shares to Scheme Participants RANK GROUP: Repurchases 1,250,000 Shares for Cancellation UKAE LIMITED: Hires Deloitte & Touche Joint Administrators YOUNGS DEVELOPMENTS: Names Administrators from Portland Business ********* ============= A U S T R I A ============= BYTYQI: Vienna Court Closes Bankruptcy Proceedings -------------------------------------------------- The Court of Vienna closed the bankruptcy case of LLC BYTYQI (FN 236418z) on April 10 following confirmation of the adopting regulation by compulsory compensation on Feb. 23. Creditors received a 50% recovery within 14 days after the case closing. Headquartered in Vienna, Austria, LLC BYTYQI declared bankruptcy on Sept. 7, 2005 (Bankr. Case No. 5 S 102/05t). Mag. Judith Eisenberg-Mirecki served as the court-appointed property manager for the bankrupt estate. C & B GASTRONOMIE: Innsbruck Court Dismisses Bankruptcy Case ------------------------------------------------------------ The Land Court of Innsbruck dismissed the bankruptcy proceedings of LLC C & B Gastronomie on April 4 under Section 166 of the Austrian Bankruptcy Code after the Court determined that the Debtor is administratively insolvent. This means that the Debtor doesn't have enough cash to cover costs of the bankruptcy proceedings. As a result, creditors will not receive any distribution. Headquartered in Innsbruck, Austria, LLC C & B Gastronomie declared bankruptcy on Sept. 12, 2005 (Bankr. Case No. 7 S 27/05p). Dr. Christian J. Winder served as the court-appointed property manager for the bankrupt estate. ESO-TRANSPORT: Adopts Compulsory Compensation Payment Scheme ------------------------------------------------------------ The Land Court of Innsbruck will close the bankruptcy case of LLC Eso-Transport (FN 40914v) following the Debtor's final distribution to creditors. Under the court-approved compulsory payment of compensation, creditors will receive 25% on account of their claims in three installments: -- 14% within six weeks after adoption of the project by compulsory payment of compensation through the property manager; -- 5% within six months after the compensation payment adoption; and -- 6% within 24 months after adoption of the compulsory payment compensation. The Court ruled that the payment scheme would occur without transferring the Debtor's property. Headquartered in Ehrwald, Austria, LLC Eso-Transport declared bankruptcy on Nov. 9, 2005 (Bankr. Case No. 9 S 26/05f). Dr. Stefan Geiler served as the court-appointed property manager for the bankrupt estate. F&TEAM BAU: Court to Close Bankr. Case Following Distribution ------------------------------------------------------------- The Court of Vienna will close the bankruptcy case of LLC F & TEAM Bau und Sanierungs (FN 235736x) following the Debtor's final distribution to its creditors. Creditors will recover 11.69% of their claim under the approved final allocation document filed by court-appointed property manager Mag. Gerhard Bauer. Headquartered in Vienna, Austria, LLC F & TEAM Bau und Sanierungs declared bankruptcy on Oct. 11, 2004 (Bankr. Case No. 4 S 126/04p). MARKARITZER VERLAG: Awaits Final Distribution & Closing Protocol ---------------------------------------------------------------- Creditors of Dr. Markaritzer Verlag (FN 252192x) will recover 11.48% on account of their claims once the final allocation document filed by the court-appointed property manager, Dr. Stephan Riel, will be approved. The Court of Vienna will close the Debtor's bankruptcy case following the final distribution to creditors. Headquartered in Vienna, Austria, Dr. Markaritzer Verlag declared bankruptcy on June 10, 2005 (Bankr. Case No. 3 S 54/05v). Dr. Johannes Jaksch represented Mr. Riel. =========== F R A N C E =========== ALCATEL S.A.: Annual Shareholders' Meeting Set on Sept. 7 --------------------------------------------------------- Alcatel S.A. scheduled its annual shareholders' meeting at 2:00 p.m. on Sept. 7 at the Palais Omnisports of Paris-Bercy. Subject to the approval of the shareholders' meeting, a dividend of EUR0.16 will be paid in cash as of Sept. 11 per Alcatel ordinary share of Alcatel ADS comprising the capital of the company on Dec. 31, 2005, and being entitled to dividends as of Jan. 1, 2005. The shareholders' meeting will also approve the merger project with Lucent as well as the 2005 results. Headquartered in Paris, France, Alcatel S.A. -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user- centric broadband world. With sales of EURO 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. * * * As reported in the TCR-Europe on March 28, Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. At the same time, Standard & Poor's placed its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. on CreditWatch with positive implications. Standard & Poor's affirmed its 'B' short-term corporate credit rating on Alcatel and its 'B-1' short-term corporate credit rating on Lucent. BELVEDERE SA: Moody's Downgrades Ratings to (P)B2 ------------------------------------------------- Moody's Investors Service downgraded the ratings of Belvedere S.A. to (P)B2 from (P)B1 following the group's decision to upsize its bond issue from EUR300 million to EUR375 million. The outlook on all ratings remains stable. Ratings downgraded: -- Corporate family rating downgraded to (P)B2 from (P)B1; and -- Senior secured floating rating notes downgraded to (P)B2 from (P)B1. On May 11, Moody's assigned first time ratings of (P)B1 to Belvedere. The ratings incorporated Moody's view that whilst the group's financial metrics -- its leverage in particular -- were strained for the rating category, the ratings were premised on the agency's expectation that management would seek to reduce leverage from the pro forma 2005 6.8x to approximately 6.4x by year-end 2006 and 6.0x during 2007. The increase in senior notes takes pro forma 2005 leverage to 7.2x, which Moody's believes will not enable management to improve its financial profile in line with a B1 rating over the near-term. Moody's understands that approximately EUR45 million of the additional proceeds will be used to repay existing working capital facilities but notes that the borrowing base under the senior notes indenture remains at c. EUR65 million, which Moody's expects Belvedere will continue to utilize on an ongoing basis. In addition, the downgrade in Belvedere's ratings reflects Moody's concern that the group's management intends to pursue a more aggressive financial policy than the agency had initially factored into the rating. An upgrade to B1 would require a reduction in leverage to closer to 6x, evidence that the acquisition of MBRI is progressing to plan and an expectation that management intends to follow a more prudent financial policy. Any further increase in leverage, either as a result of M&A activity or weaker operational performance combined with liquidity concerns would result in downward pressure in the ratings to B3. Separately, an increase in the amount of priority debt ranking ahead of the notes could result in a downgrade of the (P)B2 rating on the notes, which are currently rated at the same level as the corporate family rating. Please refer to the Leveraged Credit Analysis of Belvedere to be re-published shortly after this press release for greater detail. Headquartered in Paris, France, Belvedere is a leading producer of alcoholic beverages i.e. vodka, wine and spirits in Poland, Lithuania and Bulgaria. Through its acquisition of Marie Brizard & Roberts International, the group also has a significant presence in the French and Spanish spirits, liqueurs and non-alcoholic fruit concentrate markets. On a pro forma combined basis the group would have generated approximately EUR487.7 million in net sales (post excise taxes) in 2005. EUROTUNNEL SA: Converts Resettable Advances to Bonds ---------------------------------------------------- The Joint Board of Eurotunnel S.A. and Eurotunnel plc decided on Sept. 28 2005, not to convert the Stabilization Advances and Notes into Units and voted on March 21 to convert the Resettable and Stabilisation Advances into bonds. As a consequence, on May 15 Eurotunnel converted the Resettable Advances into Bonds and the Stabilization Advances into Notes. France Manche issued 445,416 Resettable Bonds and 297,126 Stabilisation Notes. Eurotunnel Finance Ltd issued 158,889 Resettable Bonds and 197,809 Stabilisation Notes. Eurotunnel already has Participating Loan Notes, quoted in Luxembourg. Eurotunnel obtained on April 26, a third extension of its credit waiver through July 12. The group disclosed that negotiations continue with the creditors who voted for the extension. Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. S.N.C. SUMMERSUN: Gilles Gauthier Files Chapter 15 Petition ----------------------------------------------------------- Gilles Gauthier, in his capacity as foreign representative for S.N.C. Summersun et cie and its debtor-affiliates, filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York on May 4. Chapter 15, which became effective Oct. 17, 2005, broadens the mechanism through which representatives of non-US proceedings might obtain relief, including injunctive relief, in the United States, expands the powers of U.S. Bankruptcy Courts, and enhances the rights of both U.S. and non-U.S. creditors. On Feb. 16, 2001, the Commercial Court of Antibes placed the Debtors into judicial liquidation by separate judgments. On that same date, the Court appointed Mr. Gauthier to serve as the official judicial liquidator for: -- S.N.C. Summersun et cie, -- S.A. Summersun, and -- S.A.R.L. Summersun Paris The Antibes Court consolidated the three proceedings into one collective action on Dec. 19, 2003, and joined each of the Debtors' separate assets and liabilities into one single estate. Under the French Commercial Code, any privately formed company, which is unable to meet its liabilities from its disposable assets, is considered legally insolvent and may be placed into judicial liquidation. The liquidation proceedings will be closed under three circumstances: (a) when there are no remaining liabilities; (b) when the liquidator has marshaled enough funds to satisfy all creditor claims; and (c) when there are insufficient funds to continue the liquidation. The claims asserted against the Debtors are: Debtor Claim Amount ------ ------------ S.N.C. EUR181.4 million S.A. EUR232.5 million S.A.R.L. EUR186.8 million Since the commencement of the foreign proceedings, the claims against the Debtors have been substantially reduced as the result of settlement and litigation. As of March 21, 2006, the remaining claim amounts are: Debtor Claim Amount ------ ------------ S.N.C. EUR89.1 million S.A. EUR92.1 million S.A.R.L. EUR87.4 million Many of these claims are still in dispute and are duplicative as certain claims were filed against each of the Debtors in each of the foreign proceedings. Fraud Investigation Mr. Gauthier said he has conducted extensive investigations relating to the interests and claims against the Debtors, including information relating to certain fraudulent conduct of Maurice Cohen, the Debtors' former de facto manager. As a condition to a loan provided by Societe de Banque Occidentale, a subsidiary of Credit Lyonnais: -- the Debtors were to own a 65% equity interest in Euro- American Lodging Corp. and a real estate property in 135 West, 52nd Street in New York; and -- SDBO was to own a 35% equity interest in EALC and the New York property through a subsidiary company. However, Mr. Gauthier revealed that Mr. Cohen diverted the interests in EALC to shell companies in order to realize the economic benefit of the New York property. S.A. Consortium de Realisation - CDR Creances, as successor-in-interest to SDBO, filed a EUR63.6 million claim against the Debtors under the loan agreement. Following several appeals, the Paris Appellate Court rendered a judgment directing EALC to pay S.A. Consortium approximately US$83 million, to be offset by the US$790,779 owed to EALC in accordance with a Paris Commercial Court ruling. On April 15, 2005, the New York Supreme Court approved S.A. Consortum's request recognizing the French judgment in New York and entered a US$95.8 million judgment in favor of S.A. Consortium. On Dec. 1, 2005, the New York Supreme Court ordered the auction sale of the New York property. The auction has been adjourned from time to time and is currently stayed pending appeal by an order of the New York Appellate Division dated Dec. 23, 2005, provided that EALC pays over US$1.5 million to S.A. Consortium on a monthly basis. Based upon Mr. Cohen's New York Scheme, Mr. Gauthier asked the Antibes Court to extend the Debtors' liquidation to EALC in order to recover the Debtors' equity interests in EALC and the New York property for the benefit of the Debtors' creditors. The Antibes Court will convene a hearing on Friday, May 19, to consider Mr. Gauthier's request. Headquartered in Valbonne, France, S.N.C. Summersun et cie is a partnership company formed under French commercial law for the purpose of purchasing, managing and operating real estate. It owns two 32-floor towers located at 14 Rue de Theatre in Paris, France. S.A. and S.A.R.L. are partners in S.N.C. Madlyn Gleich Primoff, Esq., at Kaye Scholer LLP, represents Mr. Gauthier in the chapter 15 case. As of May 4, 2006, the Debtors estimated more than US$100 million in assets and liabilities. S.N.C. SUMMERSUN: Chapter 15 Petition Summary --------------------------------------------- Petitioner: Gilles Gauthier Official Judicial Liquidator Debtor: S.N.C. Summersun et CIE Ophira II 630 Routes des Dolines Valbonne 06560 Sophia Antipolis 75015 France Case No.: 06-10955 Chapter 15 Petition Date: May 4, 2006 Court: U.S. Bankruptcy Court for the Southern District of New York (Manhattan) Judge: Stuart M. Bernstein Petitioner's Counsel: Madlyn Gleich Primoff, Esq. Kaye Scholer LLP 425 Park Avenue New York, New York 10022 Tel: (212) 836-7042 Fax: (212) 836-7157 Estimated Assets: More than US$100 Million Estimated Debts: More than US$100 Million ============= G E R M A N Y ============= BAUER AG: S&P Places BB- Rating on CreditWatch Positive ------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating on Germany-based engineering company Bauer AG on CreditWatch with positive implications, based on an anticipated improvement of capital structure following the company's announcement of its planned IPO, coupled with improved business performance in 2005. "The CreditWatch placement reflects our expectation that Bauer's credit profile, which strengthened in 2005 due to favorable demand for drilling equipment for underground construction and good geographic reach, will benefit further from the company's less aggressive leverage and financial policy following the IPO," said Standard & Poor's credit analyst Izabela Listowska. The proceeds from the IPO will be used to fund expansion and to reduce gross debt. "S&P will resolve the CreditWatch placement on receipt of more information. S&P's assessment is likely to cover the impact of the transaction on Bauer's leverage; the strategy of the company in terms of appetite for acquisitions; and its future financial policy including dividend distributions," added Ms. Listowska. The rating continues to be supported by Bauer's leading market position in the niche segment of foundation construction machinery, and its strong market position in underground construction services worldwide -- representing about 40% and 60%, respectively, of Bauer's global output in 2005 -- and its good geographic diversification. The rating is constrained by the cyclical nature of the global construction industry, and the challenging conditions in Bauer's fragmented and competitive domestic construction market. FAHRION VERWALTUNGS: Claims Registration Ends May 20 ---------------------------------------------------- Creditors of Fahrion Verwaltungs-GmbH have until May 20 to register their claims with court-appointed provisional administrator Dr. Volker Viniol. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on June 13, 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 Stuttgart Zimmer 20 Hauffstr. 5 Stuttgart, 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 Stuttgart opened bankruptcy proceedings against Fahrion Verwaltungs-GmbH on April 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Fahrion Verwaltungs-GmbH Steierm"rker Str. 48 70469 Stuttgart, Germany The administrator can be contacted at: Dr. Volker Viniol Danneckerstr. 52 70182 Stuttgart, Germany Tel: 0711/238890 FIDES LEASING: Claims Registration Ends May 26 ---------------------------------------------- Creditors of Fides Leasing GmbH have until May 26 to register their claims with court-appointed provisional administrator Thomas Illy. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on June 26, 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 Frankfurt am Main Saal 1 Gebaude F Klingerstrasse 20 60313 Frankfurt am Main, 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 Frankfurt am Main opened bankruptcy proceedings against Fides Leasing GmbH on April 6. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Fides Leasing GmbH Attn: Wilfried Meschwitz Taunusstr. 9 61381 Friedrichsdorf, Germany The administrator can be contacted at: Thomas Illy Wirtschaftspruefer und Steuerberater Welle 5 60322 Frankfurt am Main, Germany Tel: 069/979953-0 Fax: 069/979953-99 FRESENIUS AG: Earns EUR65 Million in First Quarter 2005 ------------------------------------------------------- Health care group Fresenius AG released its financial results for the first quarter of 2006. In the first quarter 2006, Group sales increased by 34% to EUR2.388 billion, compared to EUR1.787 billion in 2005. Organic growth contributed 9% to revenue growth. Acquisitions contributed 18%, in particular due to the first-time consolidation of HELIOS Kliniken in the income statement. Currency translation effects contributed by 7% to revenue growth. Remarkable sales growth of 9% in constant currency was achieved in North America. In Europe, sales rose significantly due to the first-time consolidation of HELIOS Kliniken. Organic growth was 7%. Additionally, excellent growth rates were achieved in the emerging markets, with constant-currency sales up 27% in Asia-Pacific, 26% in Latin America and 16% in Africa. Strong Earnings Growth EBITDA increased by 33% in actual rates or 27% in constant currency to EUR377 million, compared to EUR284 million in 2005. Group EBIT rose 37% at actual rates and 31% in constant currency to EUR291 million, compared to EUR212 million in 2005. All business segments achieved an excellent EBIT growth. The Group EBIT margin improved to 12.2% from 11.9% a year ago. Group net interest was -EUR84 million, compared to -EUR47 million a year ago. This includes one-time expenses of EUR25 million associated with the refinancing of Group debt. The tax rate for the first quarter of 2006 was 36.7%. Minority interest was EUR66 million, higher than EUR54 million in 2005. 93% was attributable to the minority interest of Fresenius Medical Care. Group net income grew significantly by 41% at actual rates and 35% in constant currency to EUR65 million from EUR46 million. This result includes one-time expenses of approximately EUR13 million primarily for the refinancing of debt as well as for expenses related to the stock option accounting change. Earnings per ordinary share rose to EUR1.28 from EUR1.11, while earnings per preference share rose to EUR1.29 from EUR1.12. This is an increase of 15% for both share classes. Primarily due to the capital increase in December 2005 the average number of shares grew to 50,785,222. Investments Due to the acquisition of Renal Care Group, Group investments in the first quarter of 2006 increased to EUR3.39 billion from EUR229 million in 2005. EUR3.29 million was spent on acquisitions while EUR100 million was spent for property, plant and equipment and intangible assets. Cash flow Operating cash flow increased by 11% to EUR186 million from EUR168 million. Key drivers were the significant improvement in earnings whereas the increase in working capital due to business expansion had a negative effect. Cash flow before acquisitions and dividends was EUR91 million. The acquisition of Renal Care Group was financed through bank debt. Solid Balance Sheet Structure As March 31, total assets increased by 35% to EUR15.687 billion, from EUR11.594 billion three months ago. In constant currency, total assets grew 37%. The substantial increase in assets is mainly related to the Renal Care Group acquisition, which was consolidated in the balance sheet for the first time as of March 31, 2006. Current assets increased 28% to EUR4.506 billion. Non-current assets were EUR11.18 billion from EUR8.06 billion, an increase of 39%. This was primarily due to an increase in goodwill. Group debt increased to EUR6.65 billion due to financing of the Renal Care Group acquisition. Including Renal Care Group's EBITDA contribution the net debt/EBITDA ratio was 3.5. Shareholders' equity including minority interest was EUR5.546 billion, 8% above the figure of EUR5.130 billion as of Dec. 31, 2005. This was due to the very good earnings development and the first-time consolidation of the Renal Care Group. As a result of the financing of the Renal Care Group acquisition the equity ratio, including minority interests, decreased to 35.4%. As of March 31, 2006, the Group had 100,934 employees worldwide (Dec. 31, 2005: 91,971). The increase of 8,963 employees is principally due to the acquisition of the Renal Care Group. Group Outlook for 2006 Confirmed Based on the strong financial results for the first quarter, Fresenius fully confirms its positive outlook for 2006 and expects an increase of about 30% in Group sales to approximately EUR10.5 billion. Net income is projected to grow by more than 30% in constant currency. The net income guidance already includes an amount of approximately EUR30 million (after tax) associated with expected one-time expenses as well as with expenses related to the stock option accounting change. Investments in property, plant and equipment and intangible assets are projected to increase to approximately EUR550 to EUR600 million. A full-text copy of Fresenius AG's first-quarter results for 2005 is available at no charge at http://researcharchives.com/t/s?93c Headquartered in Bad Homburg, Germany, Fresenius AG -- http://www.fresenius-ag.com/-- is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2005, sales were EUR7.9 billion. As of Dec. 31, 2005, the Fresenius Group had 91,971 employees worldwide. * * * As reported in the TCR-Europe on April 5, Moody's Investors Service affirmed all ratings of Fresenius AG and subsidiary Fresenius Medical Care & Co KGaA. Moody's also affirmed Fresenius AG's: -- Corporate family rating of Ba2; -- EUR1 billion of senior notes rated Ba2; and -- EUR87.9 million of senior notes rated Ba2 Fresenius Medical Care & Co KgaA's: -- Corporate Family Rating of Ba2; -- Senior credit facility rated Ba2; and -- Trust Preferred securities rated B1. As reported in the TCR-Europe on April 4, Standard & Poor's Ratings Services assigned a BB' senior secured debt rating to Fresenius Medical Care KGaA's US$4.6 billion facilities, which were put in place to finance the acquisition of Renal Care Group Inc. (RCG; BB-/Positive/--). At the same time, Standard & Poor's lowered its long-term corporate credit ratings on the Germany-based health-care companies, FMC and its parent Fresenius AG to 'BB' from 'BB+', following U.S. antitrust clearance for FMC's acquisition of U.S.-based health-care company Renal Care. The ratings were removed from CreditWatch, where they were originally placed on May 4, 2005. S&P said the outlook is negative. FRESENIUS MEDICAL: Shareholders Approve Dividend Increase --------------------------------------------------------- Shareholders of Fresenius Medical Care have approved the ninth consecutive dividend increase at the Annual General Meeting in Frankfurt, Germany. Ordinary shareholders will receive EUR1.23 per share and preference shareholders will receive EUR1.29. Shareholders discharged the Management and Supervisory Board with a large majority of more than 90%. In addition, shareholders of Fresenius Medical Care elected the Supervisory Board: -- Dr. Gerd Krick, -- Dr. Dieter Schenk, -- Prof. Dr. Bernd Fahrholz, -- Walter L. Weisman, and -- John Gerhard Kringel will continue to serve as Supervisory Board members. William P. Johnston, former Chairman of the Board of Directors of Renal Care Group, which was recently acquired by Fresenius Medical Care, joins the Supervisory Board as a new member. The shareholders also approved a new stock option program, which is directly linked to the company's success. Accordingly managerial staff members will receive up to five million options for bearer ordinary shares over the next five years, which are exercisable after a period of three years, if the Earnings Per Share hurdle has been achieved. If this hurdle is achieved in only one or two years, the options are reduced accordingly. If the hurdle is entirely not achieved, the options are cancelled. The new stock option program 2006 ensures that managerial staff members participate in the financial risks and opportunities of the Company and offers them an internationally competitive remuneration system also in the future. Representatives from the two German shareholders' associations, Schutzgemeinschaft der Kleinaktionare and Schutzvereinigung f�r Wertpapierbesitz, supported the new Stock Option Program. In addition, the shareholders approved several formalities and adoptions to the Articles of Association of Fresenius Medical Care AG & Co. KGaA. About 60% of the ordinary share capital was represented at the Annual General Meeting. Fresenius Medical Care AG -- http://www.fmc-ag.com/-- is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,300,000 individuals worldwide. Through its network of approximately 1,645 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 128,200 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius AG holds approximately 37% of Fresenius Medical Care AG & Co. KgaA's capital. * * * As reported in the TCR-Europe on April 5, Moody's Investors Service affirmed all ratings of Fresenius AG and subsidiary Fresenius Medical Care & Co KGaA. Moody's also affirmed Fresenius AG's: -- Corporate family rating of Ba2; -- EUR1 billion of senior notes rated Ba2; and -- EUR87.9 million of senior notes rated Ba2 Fresenius Medical Care & Co KgaA's: -- Corporate Family Rating of Ba2; -- Senior credit facility rated Ba2; and -- Trust Preferred securities rated B1. As reported in the TCR-Europe on April 4, Standard & Poor's Ratings Services assigned a BB' senior secured debt rating to Fresenius Medical Care KGaA's US$4.6 billion facilities, which were put in place to finance the acquisition of Renal Care Group Inc. (RCG; BB-/Positive/--). At the same time, Standard & Poor's lowered its long-term corporate credit ratings on the Germany-based health-care companies, FMC and its parent Fresenius AG to 'BB' from 'BB+', following U.S. antitrust clearance for FMC's acquisition of U.S.-based health-care company Renal Care. The ratings were removed from CreditWatch, where they were originally placed on May 4, 2005. S&P said the outlook is negative. HEIDELBERGCEMENT AG: Earns EUR37 Million in First Quarter 2006 -------------------------------------------------------------- HeidelbergCement AG released its financial results for the first quarter 2006. In the first quarter, HeidelbergCement experienced a satisfying development in sales volumes. Significant growth rates were achieved in almost all countries. In Europe and North America, the adverse seasonal effects were comparatively weaker than in the previous year. Total cement and clinker sales volumes rose by 16.8% to 14.8 million tons, from the previous year's 12.7%. Excluding changes in the consolidation scope, the increase amounted to 12%. In the first quarter, turnover rose by 28.7% compared with the previous year to EUR1.744 billion. The strongest increases were achieved in North America, Asia, Europe -- particularly the United Kingdom, Norway and the countries of Eastern Europe - and Turkey. Excluding exchange rate and consolidation effects, Group turnover increased by 19.1%. Operating income before depreciation (OIBD) more than doubled, reaching EUR190.1 million from EUR85.2 million. Operating income improved from -EUR34.7 million in the previous year to EUR63.8 million. The highest increases were achieved by North America, followed by Europe and Asia. The first savings gained through the "win" project, the new transparent and lean Group organisation as well as the noticeably increase in efficiency contributed to an improvement in results. The company's French participation Vicat exerted a considerable influence on the results from participations, which amounted to EUR27.5 million from EUR11.3 million. Due to reduced interest payments and favorable exchange rates development, the financial results improved by EUR9.1 million to -EUR45.1 million from - EUR54.2 million. As a result of the overall development, the profit before tax rose to EUR68.1 million from -EUR98.7 million. The taxes on income increased by EUR33.2 million to EUR31.1 million from -EUR2.2 million. This is attributable in particular to the positive development of results in North America. The profit for the financial year improved to EUR37.0 million from -EUR96.5 million in the same period in 2004. The Group share in profit amounts to EUR29.3 million from -EUR104.8 million. Market Entry in India With the conclusion of a 50:50 joint venture in March 2006, HeidelbergCement extended its activities to the Indian subcontinent for the first time. The joint venture includes the cement grinding plant Indorama Cement Ltd., with a capacity of 750,000 tons of cement, which supplies the cities of Mumbai and Pune on the west coast of India. The company also operates a loading terminal near Mumbai. The authorization procedure for the construction of a clinker plant in the Indian state of Gujarat is currently in progress. Employees In the first three months, HeidelbergCement employed 41,069 people across the Group. The decrease of 533 employees results largely from restructuring measures in Europe and Asia. Investments In the first quarter, cash flow investments rose by EUR22 million in comparison with the same period last year to EUR162 million from EUR140 million. Of this figure, EUR96 million was invested in tangible fixed assets and EUR66 million in financial fixed assets. Disinvestments of EUR35 million and changes in the consolidation scope amounting to EUR5 million led to a total of -EUR122 million in net cash used in investing activities. Group Structure Streamlined As part of the measures related to the restructuring and organizational reshuffle within the Group, which were initiated in 2005 and primarily affect Europe, the Group streamlined its structure accordingly and modified the external reporting format at the beginning of this year. From 2006, HeidelbergCement reports on the basis of the following Group areas: Europe, which comprises the former regions Central Europe West and East as well as Western and Northern Europe, North America, Africa-Asia-Mediterranean Basin (the Mediterranean Basin includes the activities in Turkey and the United Arab Emirates), maxit Group and Group Services, which combines our trading activities. Growth Recovery in Europe In Europe, the signs of an economic recovery are strengthening overall. The forecasts for this year are being revised upwards. Sales volumes improved in all countries as a result of the increased demand and new consolidations, with significant growth in most cases. The highest increases were recorded by the countries of Eastern Europe, as well as Germany, Norway, the United Kingdom and the Baltic region. Total cement and clinker sales volumes in Europe rose by 23.3% to 6.3 million tons from EUR5.1 million. Using the same basis for comparison, the increase amounted to 15.1%. Sales volumes of ready-mixed concrete and aggregates also grew in comparison with the same period last year in almost all countries, with significant increases in some areas. In the first three months, turnover in Europe grew by 24.6% to EUR674 million from EUR541 million. Adjusted for consolidation effects, turnover rose by 16.4%. Further Significant Increases in North America The high level of economic activity in the US declined slightly in the first quarter. In our market regions in the US and Canada, however, construction activity remained at a high level, with the result that the cement and clinker sales volumes of our plants rose by just under 20% in the first three months to 3.4 million tons. Even with full utilization of production capacities, the high demand can only be covered by additional imports. These make up around a quarter of the total sales volumes and are mostly obtained from other Group regions. Deliveries of ready-mixed concrete and aggregates also increased. However, part of this growth is attributable to consolidation effects. The turnover of the North America Group area rose by 50.7% to EUR553 million from EUR367 million. Dynamic development in Africa-Asia-Mediterranean Basin Economic development in the individual regions was varied: the strongest impetus for growth came from China and Turkey. Overall, sales volumes rose by 8.2% in comparison with the same quarter last year to 5.2 million tonnes (previous year: 4.8). Excluding the new activities in China, the increase would have been 4.0%. To this increase, China contributed a rise in sales volumes of 32%, which is the strongest growth in the Group area, followed by Turkey. Deliveries from our Indonesian subsidiary Indocement remained slightly below the previous year's level due to market conditions. The sales volumes in the individual African countries were extremely varied in the first quarter; however, we were able to achieve a volume increase in Africa overall. The total turnover of the Africa-Asia-Mediterranean Basin Group area rose by 22% to EUR280 million (previous year: 230). Increase in the Activities of maxit Group Maxit Group's markets, particularly the countries of Northern Europe, developed positively in the first quarter. The situation in Germany remains strained, but we should reach a turning point this year with a new management and as a result of extensive restructuring. Measures to reduce costs in the Benelux countries, France and Portugal are now coming to fruition. A focal point of maxit's activities is faster launching and marketing of new products and concepts in several countries simultaneously. In the first three months, turnover rose in almost all countries -- with the exception of Germany. Overall, maxit Group's turnover increased by 9% to EUR217 million from EUR199 million. Group Services The trade volume of our subsidiary HC Trading rose by 14.7% in the first quarter to 3.1 million tons. Particularly strong growth was achieved in cement trading. Over 60% of HC Trading's deliveries go to North America. The remaining volumes are supplied to the Africa-Asia-Mediterranean Basin Group area. Turnover in the Group Services business unit, which also includes our trading in fossil fuels, increased by 20.8% to EUR149 million as a result of high freight proceeds. Prospects The positive assessment of the economic environment was strengthened further in the first few months of 2006. However, the developments of energy prices and of the US dollar exchange rate remain risk factors. The development of HeidelbergCement in the first quarter has confirmed our estimation for turnover and results to achieve double-digit growth in 2006. Strategic acquisitions, such as the entry into the Indian market, increase our potential for growth. A full-text copy of HeidelbergCement AG's first quarter results for 2006 is available at no charge at http://researcharchives.com/t/s?946 About HeidelbergCement Based in Heidelberg, Germany, HeidelbergCement AG -- http://www.heidelbergcement.com/-- was founded in 1873 and is publicly traded. The company produces cement as well as building materials and building chemicals. The group's fiscal 2004 revenue amounted to EUR6.9 billion. * * * As reported in the TCR-Europe on May 9, Standard & Poor's Ratings Services revised its outlook on Germany-based cement producer HeidelbergCement AG to positive from stable. At the same time, the 'BB+' long-term and 'B' short-term corporate credit ratings, and the ratings on all outstanding debt of HeidelbergCement and its related entities were affirmed. "This reflects further improvements in the group's financial profile in 2005 and the first quarter of 2006, as well as reduced leverage at the Spohn Cement GmbH level," said Standard & Poor's credit analyst Eve Greb. INTERAIR GMBH: Creditors' Meeting Slated for June 23 ---------------------------------------------------- The court-appointed provisional administrator for Interair GmbH, Klaus Dippel, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:00 a.m., on June 23. The meeting of creditors and other interested parties will be held at: The District Court of Bochum Saal A29 Viktoriastrasse 14 44787 Bochum, 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. Creditors have until May 25 to register their claims with the court-appointed provisional administrator. The District Court of Bochum opened bankruptcy proceedings against Interair GmbH on April 6. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Interair GmbH Castroper Hellweg 300 a 44805 Bochum, Germany Attn: Michael Dembek, Manager Auf der Wehrt 44894 Bochum, Germany Christian Ruwe, Manager Spiekerskamp 16 45772 Marl, Germany The administrator can be reached at: Klaus Dippel Werner Hellweg 477 44894 Bochum, Germany Tel: 0234-26624 Fax: 0234-234077 INTERTAINMENT AG: Matthias Heisse to Chair Supervisory Board ------------------------------------------------------------ The Supervisory Board of Intertainment AG has elected Dr. Matthias Heisse as its new Chairman. Dr. Heisse was Chairman of the Supervisory Board of Intertainment from 1998 until October 2004. Since then, he has been Deputy Chairman. Dr. Ernst Pechtl has taken over Dr. Heisse's previous position of Deputy Chairman. The Munich Local Court (Amtsgericht M�nchen) appointed Dr. Pechtl as new Member of the Supervisory Board of Intertainment AG. Dr. Pechtl was a member of the Supervisory Board from December 2000 until September 2003. The personnel changes on the Supervisory Board were necessary because the previous Chairman, R�diger Baeres, resigned from his office for personal reasons in March of this year. * * * Headquartered in Munich, Germany, Intertainment AG -- http://www.intertainment.de/-- specializes in acquiring theatrical, video and television film rights with large commercial potential, which it markets in Germany and in other European countries. Among its customers are the most important media enterprises. At the same time Intertainment also acquires the rights to commercialize very viable films for the People's Republic of China, as this huge market is currently practically untapped but in the medium term will realize its big potential. The Company declared insolvency in January 2006 after failing to repay a EUR10 million loan to local bank HypoVereinsbank. SCHEFENACKER AG: Moody's Affirms B2 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has affirmed the Corporate Family Rating of B2 of Schefenacker AG and the senior subordinated rating of Caa1 on the notes. At the same time the rating agency has withdrawn the senior secured rating on the old bank facility and has assigned a senior secured B2 rating to the new bank facility. The outlook on the ratings remains negative. The rating action reflects Moody's expectation that key credit metrics, operating margin and financial leverage, are expected to remain under pressure over the intermediate term. Although Moody's acknowledges the company's efforts in reducing cost and increasing efficiency through its "Transition" restructuring program, the benefits and timing of results from this program, however, may vary as pressure on the automotive supplier industry continues and the company may be challenged to retain cost savings to enhance margins and cash flows. The Transition restructuring program and the need for heavy pre- investing in capital expenditure to support order flow will also pressure FCF over the coming quarters. As a result, financial leverage, measured by Total Adjusted Debt (adjusted for 6x rent expenses and pension liabilities), which stood at 5.9x at Q1 2006 on a LTM basis, is expected to remain elevated. In addition, should performance not improve above Q1 2006, notably on an EBITDA basis, covenants will further tighten adding pressure on availability of liquidity. On the positive side, the Corporate Family Rating continues to reflect Schefenacker's sound market position in the vision and lighting systems, biased towards the premium and luxury segments, and recognized leadership in product innovation. Moody's also recognizes the strong and historic relationship between Schefenacker and certain of its customers, and the broad geographic diversification of the company. The company has also made concerted efforts to reduce its cost structure; however, the size of benefits will also depend upon raw material costs and pricing negotiations with customers. The negative rating outlook reflects the need for the company to demonstrate a successful and sustainable turnaround in profitability at a time when the company has limited headroom to absorb additional shocks. Should the company be unable to deliver margin improvements sufficient to raise cash flow, it is likely that the cushion under financial covenants will tighten, thus placing further pressure on the current ratings. At this stage it is difficult to envisage upward pressure on the rating; however, stabilization of the outlook could be achieved if the company is successful in strengthening working capital management in conjunction with a clear trend towards a substantial decrease in adjusted leverage to below 5.0x resulting from an absolute debt reduction and an increase in profitability. Ratings affirmed: -- Corporate Family Rating of B2 -- Senior subordinated rating of Caa1 on the EUR200 million notes due 2014 Rating assigned: -- Senior secured rating of B2 on the new EUR205 million facility due 2011 and 2012 Rating withdrawn: -- Senior secured rating of B2 on the old EUR150 million facility due 2011 and 2012 Outlook on all ratings is negative. Based in Schwaikheim, Germany, Schefenacker is a leading private Tier 1 automotive supplier of rear vision systems, lighting systems and a Tier 2 supplier of sound systems. For the twelve months ended Dec. 31, 2005, Schefenacker generated revenues of EUR930.4 million, while during the first quarter 2006 revenues stood at EUR227 million. SCI TARA: Claims Filing Period Ends May 26 ------------------------------------------ Creditors of SCI TARA Immobilien Kapitalgesellschaft nach franzosischem Recht have until May 26 to register their claims with court-appointed provisional administrator Gotz Lautenbach. Creditors and other interested parties are encouraged to attend the meeting at 8:40 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 Frankfurt am Main Saal 2 Geb. F Klingerstr. 20 60313 Frankfurt, 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 Frankfurt am Main opened bankruptcy proceedings against SCI TARA Immobilien Kapitalgesellschaft nach franzosischem Recht on Feb. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: SCI TARA Immobilien Kapitalgesellschaft nach franzosischem Recht Schwanheimer Strasse 102 60528 Frankfurt am Main, Germany The administrator can be contacted at: Gotz Lautenbach Zeilweg 42 60439 Frankfurt am Main, Germany Tel: 069/963761-0 Fax: 069/963761145 SERR ALTEN: Meeting of Creditors Set for June 14 ------------------------------------------------ The court-appointed provisional administrator for Serr Alten- und Krankenpflege GmbH, Thomas Kind, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:00 a.m., on June 14. The meeting of creditors and other interested parties will be held at: The District Court of Landau in der Pfalz Zimmer 223 Marienring 13 76829 Landau in der Pfalz, 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. Creditors have until May 25 to register their claims with the court-appointed provisional administrator. The District Court of Landau in der Pfalz opened bankruptcy proceedings against Serr Alten- und Krankenpflege GmbH on March 1. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Serr Alten- und Krankenpflege GmbH Zweibruecker Str. 37-39 76829 Landau in der Pfalz, Germany Attn: Katharina Serr, Manager Niedergasse 80 76877 Offenbach, Germany Dominique Serr, Manager Zweibruecker Str. 41 76829 Landau in der Pfalz, Germany The administrator can be reached at: Thomas Kind Eisenbahnstr. 19-23 77855 Achern, Germany Tel: 07841/7080 TIME SERVICE: Creditors' Meeting Slated for June 7 -------------------------------------------------- The court-appointed provisional administrator for Time Service Line Logistic GmbH, Dr. Jorg Nerlich, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:30 a.m., on June 7. The meeting of creditors and other interested parties will be held at: The District Court of Duesseldorf Sitzungssaal A 357 3. Etage Muehlenstrasse 34 40213 Duesseldorf, 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. Creditors have until May 25 to register their claims with the court-appointed provisional administrator. The District Court of Duesseldorf opened bankruptcy proceedings against Time Service Line Logistic GmbH on April 18. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Time Service Line Logistic GmbH Hamburger Str. 24 40221 Duesseldorf, Germany Attn: Gerd Haude, Manager Freiheitstrasse 12 40627 Duesseldorf, Germany Marlene Danisch, Manager Rubinweg 29 41564 Kaarst, Germany The administrator can be reached at: Dr. Jorg Nerlich Louise-Dumont-Str. 25 40211 Duesseldorf, Germany VERLAG VIDEEL: Claims Registration Ends May 18 ---------------------------------------------- Creditors of Verlag videel OHG have until May 18 to register their claims with court-appointed provisional administrator Uwe Bendig. Creditors and other interested parties are encouraged to attend the meeting at 1:40 p.m. on May 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 Niebuell Saal 2 Gerichtsgebaude Sylter Bogen 1 A 25899 Niebuell, 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 Niebuell opened bankruptcy proceedings against Verlag videel OHG on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: Verlag videel OHG Christian Walter Schulz and Broder Soren Clausen, Managers Schmiedestrasse 11 25899 Niebuell, Germany The administrator can be contacted at: Uwe Bendig Dockenhudener Strasse 20 22587 Hamburg, Germany WOE-LIEGENSCHAFTSGESELLSCHAFT: Claims Filing Period Ends May 24 --------------------------------------------------------------- Creditors of WOE-Liegenschaftsgesellschaft mbH have until May 24 to register their claims with court-appointed provisional administrator Henning Jung. Creditors and other interested parties are encouraged to attend the meeting at 12:15 p.m. on July 6, 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 Fritzlar Raum 17 Gebaude A Schladenweg 1 34560 Fritzlar, 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 Fritzlar opened bankruptcy proceedings against WOE-Liegenschaftsgesellschaft mbH on April 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be contacted at: WOE-Liegenschaftsgesellschaft mbH Steinkopf 26 34286 Spangenberg, Germany The administrator can be contacted at: Henning Jung Wilhelmshoher Allee 270 34131 Kassel, Germany Tel: 0561/3166311 Fax: 0561/3166312 ZAFT & GEHRKE: Meeting of Creditors Set on June 8 ------------------------------------------------- The court-appointed provisional administrator for Zaft & Gehrke Werbung u. Design GmbH, Dr. Tjark Thies, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:30 a.m., on June 8. The meeting of creditors and other interested parties will be held at: The District Court of Hamburg Saal B 405 4. Etage Sievekingplatz 1 20355 Hamburg, 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. Creditors have until May 26 to register their claims with the court-appointed provisional administrator. The District Court of Hamburg opened bankruptcy proceedings against Zaft & Gehrke Werbung u. Design GmbH on April 11. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Zaft & Gehrke Werbung u. Design GmbH Mexikoring 27-29 22297 Hamburg, Germany Attn: Marianne Gehrke, Manager Neubergerweg 140 22419 Hamburg, Germany The administrator can be reached at: Dr. Tjark Thies Domstrasse 15 20095 Hamburg, Germany Tel: 41522416 ========= I T A L Y ========= PARMALAT SPA: Books EUR953.2 Million in First Quarter Revenues -------------------------------------------------------------- The Board of Directors for Parmalat S.p.A. approved on May 12 the unaudited Quarterly Report at March 31, 2006, which shows an improvement in the Group's operating performance. Group Consolidated net revenues increased to EUR953.2 million in the first quarter of 2006, or 9.8% more than the EUR868 million booked in the same period last year (restated pro forma data). EBITDA grew by 18.4% to EUR73.2 million, compared with EUR61.8 million in the first three months of 2005 (restated pro forma data). The ratio of EBITDA to net revenues also improved, rising from 7.1% in first quarter 2005 to 7.7% in 2006. This positive performance reflects the Group's overall success in achieving the Plan's objectives -- shifting the product mix towards greater value added items, cutting costs and increasing manufacturing and distribution efficiency -- despite the particularly complex and competitive environment that prevailed in some markets and the weakening in consumer demand that occurred in others. In Italy, first quarter revenues were 3.7% higher than in the first three months of 2005. However, at EUR25.2 million, EBITDA was slightly lower than in the same period last year (EUR25.7 million). The ratio of EBITDA to net revenues was 8.8% (0.5 percentage points less than a year earlier). In an environment characterized by flat consumer demand, Parmalat's Italian operations saw solid growth in the area of health and wellness products, tougher conditions in the yogurt segment and costs of distribution that were not streamlined yet as the restructuring is currently under way. In Canada, revenues totaled EUR301.6 million in the first quarter of 2006, with a gain of 6.7% over the same period a year earlier (EUR282.7 million). EBITDA increased by EUR2.1 million, rising from EUR17.7 million in the first quarter of 2005 to EUR19.7 million for the three months to the end of March 2006. The ratio of EBITDA to net revenues was 6.5% (6.3% in the first quarter 2005). These results were achieved even though there were fewer business days available for deliveries and billing this year (one week less) than in the first quarter of last year. This was more than offset by a favorable shift in pricing and product mix, a strong performance in the fermented products segment and the appreciation of the Canadian dollar versus the euro. In Australia, revenues increased to EUR111.1 million in the first quarter of 2006, a gain of 26.3% compared with the same period last year (EUR88.0 million). EBITDA, which was up by EUR2.3 million (from EUR5.9 million to EUR8.2 million), was equal to 7.4% of net revenues. A sharp rise in unit sales is the main reason for these improved results. In Africa, first quarter revenues were significantly ahead of last year, rising to EUR91.6 million, 27.8% up on the EUR71.7 million booked in the first three months of 2005. As a result, EBITDA improved to EUR9.9 million, equal to 10.8% of net revenues (+1.2 percentage points compared to the previous year). An increase in unit sales, driven by the rapidly expanding South African economy, is the principal driver of these improved results. The Group's operations in the other countries performed well compared with the previous year, particularly in South America (Colombia and Venezuela). The exception was in Spain where unresolved difficulties impacted the performance. At March 31, 2006, the Group's net financial position showed indebtedness of EUR367.4 million, virtually unchanged from the end of 2005, when its indebtedness totaled EUR369.3 million. The Group's operations generated cash flow of EUR35.3 million in the first quarter of 2006, which was used in part to fund the increase in working capital requirements that resulted from the rise in business volumes. Extraordinary items included the payment of EUR62.4 million in preferential and pre-deduction claims and the collection of the first installment (EUR45 million) of the purchase price of a building sold by Clesa S.A. in Madrid. Parmalat S.p.A. Net revenues totaled EUR249 million in the first quarter of 2006, for a gain of 3.5% over the EUR240.5 million reported in the same period last year (restated pro forma data). EBITDA grew to EUR17.4 million, or EUR3.4 million more than the EUR14 million earned in the first three months of 2005 (restated pro forma data). The ratio of EBITDA to net revenues increased by 1.2 percentage points, rising from 5.8% in the first quarter of 2005 to 7.0% this year. These improved results were made possible by a reduction in distribution costs, a higher preponderance of items with a high value added in the sales mix and a decrease in holding company costs. At March 31, 2006, the Company's financial position shows net financial assets of EUR277 million, down from EUR324.5 million at Dec. 31, 2005. The main reason for this decrease is the payment of EUR62.4 million in preferential and prededuction claims that were due on March 31. Outlook for the Group's Operations For the year as a whole, given the results achieved in the first quarter, the Company expects to report higher EBITDA and net profit than in 2005, while maintaining its net financial position at its current level. Share Capital and Bylaws The Board of Directors, not having achieved the quorum required to hold the Extraordinary Shareholders' Meeting that had been convened on April 29 on the third call to: -- amend the Bylaws to comply with the provisions of Law No. 262/05 on the matter of the Officer responsible for preparing accounting documents; and -- approve a share capital increase of EUR15,000,000 reserved for the conversion of warrants; adopted these resolutions: By virtue of the authority it holds pursuant to Article 17 of the Bylaws, it amended the Bylaws by adding Article 20 bis "Officer Responsible for Preparing Corporate Accounting Documents, which reads: "The Board of Directors, which must request the prior opinion of the Board of Statutory Auditors, shall be responsible for appointing an executive with responsibility for preparing corporate accounting documents, as required by Article 154 bis of the Uniform Financial Code (Legislative Decree No. 58/98). The motion to increase the Company's share capital submitted to the abovementioned Shareholders' Meeting will be submitted to a future Shareholders' Meeting. Meanwhile, any obligation to issue shares further to requests to convert warrants will be met by drawing from surplus reserves currently available from other "permeable" capital-increase tranches approved in the past, which total amount is EUR2,010,087,908 in comparison to a subscribed and paid up capital of EUR1,631,999,081. Calendar of Board Meetings in 2006 The Board of Directors agreed to amend the calendar of Board meetings scheduled for 2006 in order to approve the First Half Year Report at an earlier date. The meeting in question will now be held on Sept. 13, instead of Sept. 29 as previously announced. A full-text copy of Parmalat's presentation on its First Quarter 2006 Results is available at no charge at http://ResearchArchives.com/t/s?940 A full-text copy of Parmalat's first quarter results is available at no charge at http://ResearchArchives.com/t/s?942 Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. The U.S. Debtors filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than $200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. ================== K A Z A K H S TA N ================== ALTYN DEN-99: Creditors Must File Claims by May 27 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Altyn Den-99 insolvent on March 3. Bankruptcy proceedings were introduced at the company. Creditors have until May 27 to submit written proofs of claim to: Suleimanova Str. 17(11a) Taraz, Kazakhstan Tel: 8 (3262) 43-25-52 BERIK-1: Creditors Must File Claims by May 27 --------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceeding against LLP Berik-1 on March 20. Bankruptcy proceedings were introduced at the company. Creditors have until May 27 to submit written proofs of claim to: Aiteke bi Str. 29 Kyzylorda, Kazakhstan BRIZ: Creditors Must File Claims by May 27 ------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Briz insolvent on March 2. Bankruptcy proceedings were introduced at the company. Creditors have until May 27 to submit written proofs of claim to: Svetochnaya Str. 11-1a Taugul Almaty, Kazakhstan Tel: 8 (3272) 93-61-19 DAAS LTD: Creditors Must File Claims by May 27 ---------------------------------------------- Daas Ltd. (RNN 600400544532) has declared insolvency. Creditors have until May 27 to submit written proofs of claim to: Gagarina Ave. 292/1-38 Almaty, Kazakhstan Tel: 8 (3272) 60-12-77 8 (3272) 60-12-78 8 (3272) 60-12-79 INTERNATIONAL TRADING: Claims Registration Ends May 27 ------------------------------------------------------ LLP International Trading Company D.N. has declared insolvency. Creditors have until May 27 to submit written proofs of claim to: Polejayeva Str. 92a Almaty, Kazakhstan KYZYLORDA GROUP: Claims Registration Ends May 27 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceeding against LLP Kyzylorda Group Corporation on March 20. Bankruptcy proceedings were introduced at the company. Creditors have until May 27 to submit written proofs of claim to: Aiteke bi Str. 29 Kyzylorda, Kazakhstan NEFTYANAYA ENERGETICHESKAYA: Creditors' Claims Due May 27 --------------------------------------------------------- LLP Joint Venture Oil Energy Company Neftyanaya Energeticheskaya Compania has declared insolvency. Creditors have until May 27 to submit written proofs of claim to: Rabochaya Str. 43 Shuchinks Shuchinks District Akmola Region, Kazakhstan PIRKEN & K: Claims Registration Ends May 27 ------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda Region commenced bankruptcy proceedings against LLP Pirken & K on March 20. Bankruptcy proceedings were introduced at the company. Creditors have until May 27 to submit written proofs of claim to: Aiteke bi Str. 29 Kyzylorda, Kazakhstan Tel: 8 (3272) 93-61-19 SK-KLIMAT-SERVICE: Creditors' Claims Due May 27 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Sk-Klimat-Service insolvent. Creditors have until May 27 to submit written proofs of claim to: Maulenova Str. 92 Almaty, Kazakhstan Tel: 8 (3272) 67-63-59 ZEVS: Proof of Claim Deadline Slated for May 27 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau Region declared LLP Zevs insolvent on Feb. 9. Bankruptcy proceedings were introduced at the company. Creditors have until May 27 to submit written proofs of claim to: Micro District 6, 26-55 Atyrau, Kazakhstan Tel: 8 (3292) 53-40-20 =================== K Y R G Y Z S T A N =================== MASHHAD SARMA: Creditors' Claims Due June 26 -------------------------------------------- LLC Mashhad Sarma has declared insolvency. Creditors have until June 26 to submit written proofs of claim to: Auezova Str. 1/2 Bishkek, Kyrgyzstan Tel: (+996 312) 23-98-46 METKOMPLEKT: Creditors' Claims Due June 26 ------------------------------------------ LLC Metkomplekt has declared insolvency. Creditors have until June 26 to submit written proofs of claim to: Isanova Str. 42/4 Bishkek, Kyrgyzstan MOROI: Proofs of Claims Deadline Slated for June 26 --------------------------------------------------- Production Trade Enterprise Moroi has declared insolvency. Creditors have until June 26 to submit written proofs of claim to: Suymbayeva Str. 80-80 Bishkek, Kyrgyzstan The company can be contacted at (+996 312) 66-13-23, 66-76-75 or (0-502) 73-29-43. STROIMASHINA: Public Auction on Assets Set for May 25 ----------------------------------------------------- The Issyk-Kul Naryn Territorial Department of the State Property Committee will hold an auction of properties of JSC Stroimashina at 10:00 a.m., on May 25, at: Bayetova Str. 66 Chopon-Ata, Kyrgyzstan A KGS602,554 starting price has been established. Potential buyers have until 4:00 p.m., May 24, to deposit KGS30,200 to: Settlement Account 8164172080101001/403104103 MFO 330208816 Settlement and Saving Company in Cholpon-Ata and submit bidding and necessary documents to: Bayetova Str. 66 Cholpon-Ata, Kyrgyzstan Tel: (+996 3943) 4-29-21 VITA-ULUKMAN: Bishkek Court Begins Bankruptcy Proceedings --------------------------------------------------------- The Inter-District Court of Bishkek for Economic Issues commenced bankruptcy proceedings against Joint Venture Vita- Ulukman on Jan. 12 after finding it insolvent (Case No. ED- 1030/05 mbs8). Mr. Ulanbek Bekturov has been appointed temporary insolvency manager and can be reached at (0-996 312) 21-67-25. =================== L U X E M B O U R G =================== MELCHIOR CDO: Fitch Upgrades Combination Debt Rating to B+ ---------------------------------------------------------- Fitch Ratings upgraded Melchior CDO I S.A.'s combination notes to B+ from B and withdrawn its Distressed Recovery Rating DR3. All other classes are affirmed as: -- Class A floating-rate notes: AAA; -- Class B-1 floating-rate notes: A-; -- Class B-2 fixed-rate notes: A-; -- Class C-1 floating-rate notes: BB+; -- Class C-2 fixed-rate notes: BB+; and -- Class D fixed-rate notes: B and DR1. The EUR4 million combination notes are made up of 50% Class D and 50% unrated subordinated notes. Their rating reflects ultimate principal only. The upgrade follows the pay-down of 54.2% of the original notional of the combination notes. At the B+ rating level, Fitch does not assign a Distressed Recovery Rating and therefore the DR3 is withdrawn. The DR1 on the Class D reflects outstanding recovery prospects in the event of default. In July 2001, Melchior CDO I S.A., a limited liability company organized under the laws of Luxembourg, issued EUR400 million of various Classes of fixed- and floating-rate notes and invested the proceeds in a portfolio of sub-investment grade debt securities. Currently, the transaction has suffered eight defaults with a total par value of EUR32.7 million, representing approximately 9.8% of the original total collateral balance. One of these defaulted names is still in the current portfolio. Nevertheless, the credit quality of the portfolio remains fairly stable since the review in July 2005, with a Fitch current weighted average rating of 25.49 versus 26.51 at the July 2005 review, both corresponding to a B+/B rating. The transaction passed the interest coverage tests and par value tests for all Classes of notes, except the minimum par value test. However, it has failed the weighted average Fitch factor, minimum weighted average spread, industry concentration and a number of concentration limits, namely the CCC+ or below bucket, percentage of fixed issues and second highest single obligor. However, there remains sufficient credit enhancement for all rated notes to withstand Fitch's stress tests at their rating levels. ===================== N E T H E R L A N D S ===================== EFES BREWERIES: Starts Working on Eurobond Issue ------------------------------------------------ Citigroup Global Markets Limited and HSBC Bank plc, acting as the Joint Bookrunners for Efes Breweries International N.V., have started to work on the company's Eurobond issue. The Eurobond issue is part of the debt finance package designed by Efes and Anadolu. On Feb. 14, Efes Breweries International N.V. and its 70% majority shareholder Anadolu Efes Biracylyk ve Malt Sanayi A.S. jointly mandated Citibank N.A. and Citigroup Global Markets Limited and HSBC Bank Plc, collectively, for a US$500 million debt finance package. On Feb. 17, a Bridge Facility Agreement was executed among EBI, Citibank N.A., HSBC Bank plc and Anadolu, as guarantor. The Bridge Facility provides a utilization amount of up to US$500 million. This Bridge Facility was sourced within the framework of the debt finance package. The company planned to repay the credit within 2006 by means of various alternative financial instruments. Headquartered in Netherlands, Efes Breweries International N.V. -- http://www.efesholland.nl/-- is a leading brewing group in the countries in which it operates across the Commonwealth of Independent States, Eastern Europe and the Balkans, and in particular has a strong presence in Russia. Currently it markets and sells beer products in the Russian Federation, Kazakhstan, Moldova, Romania, and Serbia & Montenegro and has nine breweries in total. The Company is a majority-owned subsidiary of Anadolu Efes Biracilik ve Malt Sanayii A. S., which is the leading brewer in Turkey and is listed on the Istanbul Stock Exchange. Anadolu Efes, together with its direct and indirect subsidiaries and affiliates, produces and markets beer, bottled water, malt and soft drinks, including Coca-Cola trademark beverages across Turkey, Eastern Europe, the Balkans and the CIS. * * * As reported by TCR-Europe on Feb. 21, Fitch Ratings kept the BBB- Local Currency IDR of the Turkish brewer Anadolu Efes Biracilik ve Malt Sanayii A.S. on Rating Watch Negative. Its International Foreign Currency IDR stayed at BB- with a Positive Outlook. INVISTA BV: Moody's Upgrades Corporate Family Rating to Ba2 ----------------------------------------------------------- Moody's Investors Service upgraded INVISTA B.V.'s corporate family rating to Ba2 from Ba3. Moody's also upgraded to Ba2 from Ba3 the ratings on INVISTA S.A.R.L.'s credit facilities and term loans and upgraded to Ba3 from B1 the rating on ISARL's guaranteed senior notes due 2012. IBV is the parent holding company for ISARL, and IBV guarantees the credit facilities of ISARL. Moody's also affirmed IBV's speculative grade liquidity rating at SGL-2 reflecting strong cash balances, good availability under its revolver, a favorable debt maturity profile and the expectation of strong headroom under its existing bank covenants. The rating outlook is stable. The upgrade in the corporate family rating to Ba2 reflects Moody's belief that the successful integration and cost saving initiatives completed by management, post IBV's acquisition, April 2004, of DuPont Textiles & Interiors' assets, have resulted in a sustained improvement in retained cash flow. This improvement in cash flow when combined with modest debt reduction has resulted in credit metrics that support the higher ratings. In addition Moody's believes that IBV's business profile combined with its size and relative stability support the upgrade. Limiting factors to the rating include the need to assess the unique margin pressures on IBV's ongoing businesses particularly in the spandex segment. Moody's notes that but for the very successful and considerable cost saving initiatives that management has achieved IBV's adjusted EBITDA would be materially smaller. Nevertheless the strength and success of the cost savings is decidedly significant. Moody's Ba2 corporate family ratings also reflects some caution regarding potential acquisitions that management might decide to pursue now that a large portion of their integration efforts are complete. In light of these factors, Moody's will monitor both INVSTA's performance with respect to improvement in credit metrics and its actions with regard to potential acquisitions before another upgrade is considered. Moody's previous rating action on IBV was the upgrade of the speculative grade liquidity rating to SGL-2 from SGL-3 on the 8th of April 2005. Upgrades: INVISTA B.V. -- Corporate Family Rating, Upgraded to Ba2 from Ba3 INVISTA S.A.R.L. -- Senior Secured Bank Credit Facility, Upgraded to Ba2 from Ba3; -- Senior Unsecured Notes, Upgraded to Ba3 from B1; Affirmations: INVISTA B.V. -- Speculative Grade Liquidity Rating -- SGL-2. Headquartered in the Netherlands, INVISTA B.V. produces chemical intermediates, polymers and fibers for use in the manufacture of nylon, spandex, and polyester products. The company's revenues were US$9.6 billion in 2005. =========== R U S S I A =========== ENGINEERING FOUNDING: Bankruptcy Hearing Slated for June 15 ----------------------------------------------------------- The Arbitration Court of Voronezh Region will convene on June 15 at 10:00 a.m. at: Room 601 Srednemoskovskaya Str. 77 Voronezh Region, Russia to hear the bankruptcy supervision procedure on CJSC Factory of Engineering Founding (Case no. A14-27220-2005/184/20b). Mr. V. Dyachkov has been appointed temporary insolvency manager and can be reached at: Post User Box 28 394077, Voronezh Region, Russia The Debtor can be reached at: Chebysheva Str. 13 Voronezh Region, Russia OAO ROSNEFT: Reports 18.9 Billion BOE in Total Proved Reserves -------------------------------------------------------------- OAO Rosneft disclosed the results of the annual independent audit of its oil and gas reserves prepared by DeGolyer & MacNaughton. As of Dec. 31, 2005, Rosneft's estimated net proved reserves totaled 18.9 billion barrels of oil equivalent (boe), of which include 14.9 billion barrels (2.05 bln tons) are liquids and 24.4 trillion cubic feet (691 billion cubic meters) are gas according to the SPE classification. Rosneft's probable and possible reserves were estimated by DeGolyer & MacNaughton at 10.9 and 9.8 billion barrels of oil equivalent (boe) respectively, which include 8.3 billion barrels of oil and 15.7 trillion cubic feet of gas of probable reserves and 7.2 billion barrels of oil and 15.4 trillion cubic feet of gas of possible reserves, according to the SPE classification. DeGolyer & MacNaughton has identified expected values of prospective resources for a number of Rosneft's ongoing exploration projects, including the Sakhalin offshore projects, the West Kamchatka continental shelf, acreages in the vicinity of Vankor field (Krasnoyarsk region), among others. Expected values of prospective resources after taking into account the probability of geological success were estimated by DeGolyer & MacNaughton to be at 7.7 billion barrels of oil equivalent (boe) (Rosneft's share), which include 7.2 billion barrels of oil and 2.8 trillion cubic feet of gas. Rosneft expects that through successful exploration and development of these world-class projects these prospective resources will be converted into proved, probable and possible reserves over time. Rosneft's total reserves comprise 100% of the reserves owned by Rosneft's consolidated subsidiaries and Rosneft's net share of affiliates' reserves. A key priority of the company currently consists of raising its oil and gas production to such a level consistent with its leading global ranking in reserves. Headquartered in Moscow, OAO Rosneft -- http://www.rosneft.com/english-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus and the Arctic regions of Russia. * * * Standard & Poor's assigned B+ ratings to Rosneft's long-term and local foreign issuer credit, while Fitch assigned BB+ ratings to the Company's foreign currency and local currency long-term debt in 2005. RASSVET: Court Names Y. Paramonov to Manage Insolvency Assets ------------------------------------------------------------- The Arbitration Court of Chuvashiya Republic appointed Mr. Y.Paramonov as temporary insolvency manager for Industrial Enterprise Rassvet (Case no. A79-16904/2005). The Court has commenced bankruptcy supervision procedure on the company. The Debtor can be reached at: Urmarskiy Region Chuvashiya Republic, Russia REM-TEKH-ENTERPRISE: Creditors Must Submit Claims by May 18 ----------------------------------------------------------- Creditors of OJSC Rem-Tekh-Enterprise (Case No. A-28-181/05- 199/20) have until May 18 to submit written proofs of claim to court-appointed insolvency manager Mr. Y. Sherstnev: Zakhvataeva, 2319 Kirov Region, Russia The Arbitration Court of Kirov Region commenced bankruptcy proceedings against the company after finding it insolvent. The Arbitration Court of Kirov Region is located in: K. Libknekhta Str. 102 Kirov Region, Russia The Debtor can be reached at: Selskaya Str. 2 Falyeki Kirov Region, Russia SEL-STROY: Court Names A. Kokorin as Insolvency Manager ------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Mr. A. Kokorin as insolvency manager for OJSC Sel-Stroy (Case No. A43-18046/2005, 24-323). He can be reached at: Torgovaya Str. 14 603001, Nizhniy Novgorod Region, Russia The Court commenced bankruptcy proceedings against OJSC Sel- Stroy after finding it insolvent. The Arbitration Court of Nizhniy Novgorod Region is located in: Kremlin 9 603082, Nizhniy Novgorod Region, Russia The Debtor can be reached at: Ardatov, Lenina Str. 65 607130, Nizhniy Novgorod Region, Russia SIBUR-WEST SIBERIA: Kemerovo Court Opens Bankruptcy Proceedings --------------------------------------------------------------- The Arbitration Court of Kemerovo Region commenced bankruptcy proceedings against CJSC Sibur-West Siberia (Case no. A27- 40812/2005-4) after finding it insolvent. Mr. M. Galimov has been appointed insolvency manager and can be reached at: Mira Str. 8p Nizhnevartovsk 628616, Khanty-Mansiyskiy Autonomous Region, Russia The Debtor can be reached at: Mira Str. 8p Nizhnevartovsk 628616, Khanty-Mansiyskiy Autonomous Region, Russia SOLNTSEVSKOYE: Creditors' Claim Due May 18 ------------------------------------------ Creditors of CJSC Solntsevskoye (TIN 6508005850) have until May 18 to submit written proofs of claim to court-appointed insolvency manager Mr. V. Semenyak at: Post User Box 10/2 Uglegorsk 694900, Sakhalin Region, Russia The Arbitration Court of Sakhalin Region commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A59-4623/05-S12. The Debtor can be reached at: CJSC Solntsevskoye Lenina Str. 16-A Shakhersk Uglegorodskiy Region 694910, Sakhalin Region, Russia STROY-PROM-SERVICE: Creditors Must Submit Claims by May 18 ---------------------------------------------------------- Creditors of CJSC Stroy-Prom-Service (Case No. A-75-9461/2005) have until May 18 to submit written proofs of claim to court- appointed insolvency manager Mr. M. Galimov at: Post User Box 1266 Nizhnevartovsk-16 628616, Khanty-Mansiyskiy Autonomous Region Russia Tel/Fax: 24-87-86 The Arbitration Court of Khanty-Mansiyskiy Autonomous Region commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: CJSC Stroy-Prom-Service Post User Box 1266 Nizhnevartovsk-16 628616, Khanty-Mansiyskiy Autonomous Region, Russia Tel/Fax: 24-87-86 YARANSKIY MECHANICAL: Court Opens Bankruptcy Process ---------------------------------------------------- The Arbitration Court of Kirov Region commenced bankruptcy proceedings against OJSC Yaranskiy Mechanical Factory and Co. (TIN 4339005680) after finding it insolvent. The case is docketed under Case No. A28-147/05-174/20. Ms. O. Koroleva has been appointed insolvency manager and can be reached at: Sormovskaya Str. 38a 610044, Kirov Region, Russia The Debtor can be reached at: OJSC Yaranskiy Mechanical Factory and Co. Rudnitskogo Str. 52 Yaransk 612260, Kirov Region, Russia ===================== S W I T Z E R L A N D ===================== INVISTA SARL: Moody's Upgrades Group, Parent's Ratings ------------------------------------------------------ Moody's Investors Service upgraded INVISTA B.V.'s corporate family rating to Ba2 from Ba3. Moody's also upgraded to Ba2 from Ba3 the ratings on INVISTA S.A.R.L.'s credit facilities and term loans and upgraded to Ba3 from B1 the rating on ISARL's guaranteed senior notes due 2012. IBV is the parent holding company for ISARL, and IBV guarantees the credit facilities of ISARL. Moody's also affirmed IBV's speculative grade liquidity rating at SGL-2 reflecting strong cash balances, good availability under its revolver, a favorable debt maturity profile and the expectation of strong headroom under its existing bank covenants. The rating outlook is stable. The upgrade in the corporate family rating to Ba2 reflects Moody's belief that the successful integration and cost saving initiatives completed by management, post IBV's acquisition, April 2004, of DuPont Textiles & Interiors' assets, have resulted in a sustained improvement in retained cash flow. This improvement in cash flow when combined with modest debt reduction has resulted in credit metrics that support the higher ratings. In addition Moody's believes that IBV's business profile combined with its size and relative stability support the upgrade. Limiting factors to the rating include the need to assess the unique margin pressures on IBV's ongoing businesses particularly in the spandex segment. Moody's notes that but for the very successful and considerable cost saving initiatives that management has achieved IBV's adjusted EBITDA would be materially smaller. Nevertheless the strength and success of the cost savings is decidedly significant. Moody's Ba2 corporate family ratings also reflects some caution regarding potential acquisitions that management might decide to pursue now that a large portion of their integration efforts are complete. In light of these factors, Moody's will monitor both INVSTA's performance with respect to improvement in credit metrics and its actions with regard to potential acquisitions before another upgrade is considered. Moody's previous rating action on IBV was the upgrade of the speculative grade liquidity rating to SGL-2 from SGL-3 on the 8th of April 2005. Upgrades: INVISTA B.V. -- Corporate Family Rating, Upgraded to Ba2 from Ba3 INVISTA S.A.R.L. -- Senior Secured Bank Credit Facility, Upgraded to Ba2 from Ba3; -- Senior Unsecured Notes, Upgraded to Ba3 from B1; Affirmations: INVISTA B.V. -- Speculative Grade Liquidity Rating -- SGL-2. INVISTA B.V. is headquartered in the Netherlands. IBV is one of the world's leading producers of chemical intermediates, polymers and fibers for use in the manufacture of nylon, spandex, and polyester products. The company's revenues were US$9.6 billion in 2005. =========== T U R K E Y =========== ANADOLU EFES: Standard & Poor's Assigns BB Corp. Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' long-term corporate credit rating to the Turkish-based beverage group Anadolu Efes Biracilik ve Malt Sanayii AS (AEfes). The outlook is stable. "The rating reflects AEfes' business exposure to volatile markets and currencies, as well as the group's lack of track record in sustaining a high dividend flow from its Russian operations," said Standard & Poor's credit analyst Vincent Allilaire. The group's operations in Russia are currently facing a significant integration task and toughening market conditions. The ratings on AEfes are also constrained by the cash leakage caused by the part-ownership of its main subsidiaries. "These factors are mitigated, however, by the group's dominant position in the established, although slow-growing, Turkish beer market, which underpins its strong and resilient free cash flow generation," added Mr. Allilaire. "The ratings are further supported by the group's increasing diversification through its growing international beer operations and its majority ownership of a large Coke bottler." AEfes' dominant domestic position and superior profitability (with a 38% EBITDA margin, on US$570 million of sales in 2005) are underpinned by its strong brand recognition; the mostly returnable nature of beer packaging, which entails strong barriers to entry and high profitability; and its price leadership position. The group's international beer operations are handled by its London-listed, 70%-owned subsidiary Efes Breweries International (EBI). EBI sales are expected to exceed US$700 million in 2006, with a stable 20% EBITDA margin. About 85% of EBI's profits (and a larger share of its cash flows over the medium term) are derived from its Russian operations. Following the purchase of a local competitor, EBI has solidified its challenger position in a maturing market dominated by international brewers, in which it holds a 10% share. AEfes' cash generation is resilient and strong, albeit somewhat limited by its concentration on Turkish operations. Standard & Poor's expects the group's profitability to remain broadly stable at the 2006 level, as the steadily growing profits from beer in Turkey continue to be diluted by the lower-profits, but faster growing, international beer and Coke operations. The group is expected to deleverage from its current less than 2x net debt to EBITDA, although this deleveraging is likely to be constrained over time by further opportunistic acquisitions. AEfes' development is expected to remain focused, geographically and operationally. The ratings could be raised if the group's Russian operations demonstrate successful integration of recently acquired assets and if there is further growth in this maturing market, allowing for sustainable high cash-flow repatriation to the group. The ratings might come under pressure should the group's leverage increase materially above 2x net debt to EBITDA, due to performance or acquisitions. ============= U K R A I N E ============= ENERGY-CONTACT: Kyiv Court Opens Bankruptcy Proceedings ------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy proceedings against Energy-Contact (code EDRPOU 23733314) on March 24 after finding it insolvent. The case is docketed under Case No. 21/724. Linkevich Oleg has been appointed Liquidator/Insolvency Manager and can be reached at: Pirogov Str. 73a/132 Vinnitsya Region, Ukraine Tel: 157-98-38 The Economic Court of Kyiv Region is located in: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: Energy-Contact Office 69 Klovskij Uzviz 9/2 Kyiv Region, Ukraine GALPROMEXPOCENTER: Lviv Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Economic Court of Lviv Region commenced bankruptcy supervision procedure on LLC Galpromexpocenter (code EDRPOU 33394625). The case is docketed under Case No. 6/22-8/38. Mr. E. Dzhala has been appointed temporary insolvency manager and can be reached at: Nizhinska Str. 16/41 79010 Lviv Region, Ukraine The Economic Court of Lviv Region is located in: Lichakivska Str. 81 79010 Lviv Region, Ukraine The Debtor can be reached at: LLC Galpromexpocenter Pidstavska Str. 1 Zavodske Buskij District Lviv Region, Ukraine HODORIV' MEAT: Lviv Court Names Yaroslav Kechmarik as Liquidator ---------------------------------------------------------------- The Economic Court of Lviv Region appointed Yaroslav Kechmarik as Liquidator/Insolvency Manager for Private Company Hodoriv' Meat Processing Enterprise (code EDRPOU 31417294). He can be reached at: Sadova Str. 23/20 Lviv Region, Ukraine The Court commenced bankruptcy proceedings against the company on Jan. 11 after finding it insolvent. The case is docketed under Case No. 6/297-29/393. The Economic Court of Lviv Region is located in: Lichakivska Str. 81 79010 Lviv Region, Ukraine The Debtor can be reached at: Hodoriv' Meat Processing Enterprise Shevchenko Str. 128 Hodoriv Zhidachivskij District 81750 Lviv Region, Ukraine PETROVETS: Herson Court Freezes Debt Payment -------------------------------------------- The Economic Court of Herson Region commenced bankruptcy supervision procedure on Petrovets (code EDRPOU 22760438) on Feb. 13 and ordered a moratorium on satisfaction of creditors' claims. The case is docketed under Case No. 6/54-B-06. Leonid Galka has been appointed temporary insolvency manager and can be reached at: Vijskovij Avenue 6, 2-nd floor 73000 Herson Region, Ukraine The Economic Court of Herson Region is located in: Gorkij Str. 18 73000 Herson Region, Ukraine The Debtor can be reached at: Petrovets Tiraspilska Str. 1 73000 Herson Region, Ukraine REMSERVICE: Rivne Court Opens Bankruptcy Proceedings ---------------------------------------------------- The Economic Court of Rivne Region commenced bankruptcy proceedings against Remservice (code EDRPOU 30032733) on Dec. 26, 2005, after finding it insolvent. The case is docketed under Case No. 4/55. Dubrovitska State Tax Inspection has been appointed Liquidator. The Economic Court of Rivne Region is located in: Yavornitski Str. 59 33001 Rivne Region, Ukraine The Debtor can be reached at: Remservice Centralna Str. Mutvitsya Zarichnenskij District 34000 Rivne Region, Ukraine SANDMARKET-HOLDING: Court Names Sergij Simonenko as Liquidator -------------------------------------------------------------- The Economic Court of Sevastopol appointed Sergij Simonenko as Liquidator/Insolvency Manager for LLC Sandmarket-Holding (code EDRPOU 30816721). He can be reached at: AR Krym Region, Ukraine Sevastopol Vasil Kuchera Str. 13/6 The Court commenced bankruptcy proceedings against the company on March 13 after finding it insolvent. The case is docketed under Case No. 20-7/868-4/204-7/1269/076. The Economic Court of Sevastopol is located in: Pavlichenko Str. 5 Sevastopol 99011, AR Krym Region, Ukraine The Debtor can be reached at: LLC Sandmarket-Holding Kulakov Str. 84 Sevastopol 99011 AR Krym Region, Ukraine UKRENERGOECOLOGY: Kyiv Court Starts Bankruptcy Supervision ---------------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on OJSC Ukrenergoecology (code EDRPOU 14281356). The case is docketed under Case No. 44/11b-06. Mr. U. Bilik has been appointed temporary insolvency manager and can be reached at: Ahmatova Str. 13-b/67 Kyiv Region, Ukraine The Economic Court of Kyiv Region is located in: Komintern Str. 165 01032 Kyiv Region, Ukraine The Debtor can be reached at: OJSC Ukrenergoecology Promislova Str. 6 Ukrainka Obuhiv District 08720 Kyiv Region, Ukraine WEST-CRIMEAN ELEVATOR: Court Taps Temporary Insolvency Manager -------------------------------------------------------------- The Economic Court of AR Krym Region appointed Oleksandr Martinenko as temporary insolvency manager for West-Crimean Elevator (code EDRPOU 31001863). He can be reached at: Obolonskij Avenue 28/270 Kyiv Region, Ukraine The Court commenced bankruptcy supervision procedure on the company on March 13. The case is docketed under Case No. 2- 26/4543-2006. The Economic Court of AR Krym Region is located in: Karl Marks Str. 18 Simferopol 95000 AR Krym Region, Ukraine The Debtor can be reached at: West-Crimean Elevator Vinogradna Str. 1 Yevpatoriya 97402 AR Krym Region, Ukraine =========================== U N I T E D K I N G D O M =========================== ABBEY CONTRACTORS: Sets June 10 Claims Bar Date ----------------------------------------------- Creditors of Abbey Contractors Limited agreed to wind up the company's operations during an extraordinary general meeting on March 10. Appointed Joint Liquidators, Paul Finity and Peter A. Blair, of Begbies Traynor, require creditors to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors (if any) on or before June 10. The company can be reached at: Abbey Contractors Limited Haydock Park Road Derby Derbyshire DE2 48HT United Kingdom Tel: 01332 291 646 Fax: 01332 370 825 ABLE FABRIC: Creditors Resolve to Wind Up Operations ---------------------------------------------------- Able Fabric Care Limited is liquidating its assets after creditors resolved to wind up the company on March 16. Mark Peter George Roach and Graham David Randall, both of BDO Stoy Hayward LLP, will jointly administer the winding up proceedings. BDO Stoy Hayward -- http://www.bdo.co.uk/-- is the U.K. member firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries. The company can be reached at: Able Fabric Care Limited 8 Unity Street Bristol BS1 5HH United Kingdom Tel: 0117 311 0055 ARTHUR WALTON: Financial Woes Prompt Winding Up Process ------------------------------------------------------- Arthur Walton Transport Limited is voluntarily winding up its operations after creditors established the company could no longer continue its business due to mounting debts. Anthony Alan Josephs and Linda Ann Farish, both of RMT, were appointed Joint Liquidators. The company can be reached at: Arthur Walton Transport Limited The Old Chapel Garage East Hedley Hope County Durham DL13 4PR United Kingdom Tel: 01388 730 398 BNB PHARMA: Taps Bijal Shah to Liquidate Assets ----------------------------------------------- Bijal Shah, of ShaSens, was appointed Liquidator after creditors of BNB Pharma Limited passed a resolution to wind up the company on March 15. The company can be reached at: BNB Pharma Limited 2 Orchard Road Welling Kent DA161QG United Kingdom Tel: 020 7703 6688 BINNS & CO: Hires Joint Administrators from Fisher Partners ----------------------------------------------------------- Stephen M. Katz and David Birne of Fisher Partners were appointed joint administrators of Binns & Co PR Limited (Company Number 04667707) on April 27. The administrators can be contacted at: Fisher Partners Acre House 11/15 William Road London NW1 3ER United Kingdom Tel: 020 7388 7000 Fax: 020 7380 4900 E-mail: skatz@hwfisher.co.uk Binns & Co. PR Ltd. -- http://www.binnspr.co.uk/-- is one of the U.K.'s leading financial communications consultancies based in the City of London with affiliates in Bristol, York and Edinburgh, and international affiliates across the world through its membership of The Worldcom Group, one of the world's largest networks of independently-owned Public Relations agencies. BUCKFASTLEIGH COMMERCIALS: Appoints Marriotts LLP Administrator --------------------------------------------------------------- Anthony Harry Hyams of Marriotts LLP was appointed administrator of Buckfastleigh Commercials Limited (Company Number 02880798). The administrator can be contacted at: Marriotts LLP Allan House 10 John Princes Street London W1G 0JW United Kingdom Tel: 020 7495 2348 Headquartered in Exeter, England, Buckfastleigh Commercials Limited is engaged in motor maintenance and repair. CALL CENTRE: Appoints Administrator from Begbies Traynor -------------------------------------------------------- Peter Sargent of Begbies Traynor was named administrator of Call Centre Support Ltd. (Company Number 03617188) on April 25. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Located in Bradford West Yorkshire, Call Centre Support Ltd. -- http://www.callcentresupport.co.uk/-- provides an advanced contact center support service offering cost, time and efficiency benefits to help ensure clients achieve maximum performance. D.E.I. ELECTRICAL: Brings In Administrators from Kroll Limited -------------------------------------------------------------- Charles Peter Holder and Stuart Charles Edward Mackellar of Kroll Limited were appointed joint administrators of D.E.I. Electrical Services Limited (Company Number 00533521) on May 2. 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. D.E.I Electrical Services Limited can be reached at: Dunslow Rd Eastfield Scarborough YO11 3UT United Kingdom Tel: 01723 581515 EUROTUNNEL PLC: Converts Resettable Advances to Bonds ----------------------------------------------------- The Joint Board of Eurotunnel S.A. and Eurotunnel plc decided on Sept. 28 2005, not to convert the Stabilization Advances and Notes into Units and voted on March 21 to convert the Resettable and Stabilisation Advances into bonds. As a consequence, on May 15 Eurotunnel converted the Resettable Advances into Bonds and the Stabilization Advances into Notes. France Manche issued 445,416 Resettable Bonds and 297,126 Stabilisation Notes. Eurotunnel Finance Ltd issued 158,889 Resettable Bonds and 197,809 Stabilisation Notes. Eurotunnel already has Participating Loan Notes, quoted in Luxembourg. Eurotunnel obtained on April 26, a third extension of its credit waiver through July 12. The group disclosed that negotiations continue with the creditors who voted for the extension. Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. EQUITABLE LIFE: S&P Lifts Junk Jr. Subordinated Debt Rating to B ---------------------------------------------------------------- Standard & Poor's Ratings Services raised the long-term counterparty credit rating on U.K.-based life insurer The Equitable Life Assurance Society to 'BB' from 'B+'. The outlook is stable. At the same time, Standard & Poor's raised its junior subordinated debt rating on Equitable Life Finance PLC to 'B' from 'CCC+'. The upgrade of Equitable Life reflects the expected transfer of most of the society's nonparticipating payout annuity liabilities to Canada Life Ltd. U.K. in exchange for a premium of GBP4.6 billion, which will not negatively affect the available capital resources or excess realistic assets of Equitable Life. Initially, the transaction will take the form of reinsurance, with credit exposure to Canada Life removed by the transfer of liabilities before the end of 2007. Equitable Life will retain about GBP1.7 billion of with-profits payout annuity liability reserves, in addition to an unspecified amount of nonparticipating annuities. "This transaction will significantly reduce the longevity exposure of the fund, a risk that is increasing as the fund matures," said Standard & Poor's credit analyst Andrew Hughes. In addition, the realistic balance sheet had future profits of GBP239 million prior to the transaction, which related mainly to the non-participating annuity liabilities and release of the associated regulatory solvency margin. Standard & Poor's expects a regulatory release of about GBP150 million, based on a policy count of 130,000 transferred policies out of the total 140,000. Also, a regulatory solvency capital release of about GBP185 million will be realized following the transfer of business. Approximately one-third of this amount will be realized immediately due to the reinsurance. There is not expected to be a material capital benefit on the realistic balance sheet, however, as this already allows for the expected future profits on the annuity business. The rating on Equitable Life continues to reflect the society's marginal capitalization, limited flexibility to manage its balance sheet, and marginal operating performance. Partially offsetting these weaknesses are the society's relatively low- risk investment profile and the de-risking progress made by management. Equitable Life is a closed life insurer, with GBP15.5 billion of assets at year-end 2005. The stable outlook reflects the actions already taken by management, which have improved stability and reduced uncertainties. Equitable Life is expected to continue to manage down risks, although the rating will not be raised further in the near term. Standard & Poor's expects management to continue reducing the risks associated with provisions outstanding and further reduce interest costs by repaying the remaining subordinated debt on the call date in 2007. A material improvement in longevity, decline in interest rates below 3.5%, or poor returns on Equitable Life's risk assets could result in negative rating actions, however. FRANK REDFERN: Bookmakers Tap Marriotts LLP Administrator --------------------------------------------------------- Anthony Harry Hyams of Marriotts LLP was appointed administrator of Frank Redfern Limited (Company Number 03493041). The administrator can be reached at: Marriotts LLP Allan House 10 John Princes Street London W1G 0JW United Kingdom Tel: 020 7495 2348 Headquartered in Exeter, England, Frank Redfern Limited is engaged in bookmaking. FRESHLY MADE: Creditors Agree to Liquidation ------------------------------------------ Creditors of Freshly Made (Northern) Limited agreed to liquidate the company's assets during an extraordinary general meeting on March 16. Andrew James Nichols, of Redman Nichols, was appointed Liquidator. The company can be reached at: Freshly Made (Northern) Limited Park Street Messingham Scunthorpe South Humberside DN17 3RU United Kingdom Tel: 01724 844 488 GAMING & ENTERTAINMENT: Auditor Raises Going Concern Doubt ---------------------------------------------------------- J. H. Cohn LLP in Roseland, New Jersey, raised substantial doubt about Gaming & Entertainment Group, Inc.'s ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the Company's recurring losses, negative working capital, and accumulated and stockholders' deficiencies. The Company reported a US$1,472,609 net loss on US$1,274,819 of total revenues for the year ended Dec. 31, 2005. At Dec. 31, 2005, the Company's balance sheet showed US$637,507 in total assets and US$1,833,328 in total liabilities, resulting in a US$1,195,821 stockholders' deficit. The Company's Dec. 31 balance sheet also showed strained liquidity with US$212,460 in total current assets available to pay US$669,683 in total current liabilities coming due within the next 12 months. A full-text copy of the Company's 2005 Annual Report is available for free at http://ResearchArchives.com/t/s?937 Gaming & Entertainment Group, Inc., has two wholly owned operating subsidiaries, Gaming & Entertainment Technology Pty Ltd., a company formed under the laws of Australia, and Gaming & Entertainment Group, Ltd., a company formed under the laws of the United Kingdom. The Company supplies government-regulated networked gaming technology. The Company built a comprehensive networked gaming platform that has passed multiple government prescribed validations in Australia (Tasmania and Queensland), Republic of Vanuatu and Great Britain (Alderney and the Isle of Man). GREYLANDS WASTE: Hires Begbies Traynor to Administer Assets ----------------------------------------------------------- David P. Hudson and Mark R. Fry, both of Begbies Traynor (South) LLP were appointed joint administrator of Greylands Wasted Limited (Company Number 02714501) on April 21. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Barking, England, Greylands Waste Ltd. recycles crushed concretes. HEALTH TEC: Appoints Joint Administrators from Unity Business ------------------------------------------------------------- Matthew Colin Bowker and Suzanne Payne of Unity Business Services LLP were appointed joint administrators of Health Tec Services Limited (Company Number 04174650) on April 28. The administrators can be reached at: Unity Corporate Recovery and Insolvency Clive House, Clive Street Bolton Lancashire BL1 1ET United Kingdom Tel: 01204 395000 Fax: 01204 383999 E-mail: matthewbowker@ubsg.co.uk Headquartered in Sheffield, England, Health Tec Services Limited wholesales medical equipment and supplies. HOT SPOT: Advertisers Tap Begbies Traynor to Administer Assets -------------------------------------------------------------- David Hill and John Wynn Davies of Begbies Traynor were appointed joint administrators of Hot Spot Marketing (U.K.) Limited (Company Number 4916872) on April 24. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Cardiff, Wales, Hot Spot Marketing (U.K.) Limited provides advertising services. INFOVISION SYSTEMS: Appoints Begbies Traynor Administrators ----------------------------------------------------------- Peter A. Blair and Richard A. B. Saville of Begbies Traynor were appointed joint administrators of Infovision Systems Limited (Company Number 03402294) on May 4. Headquartered in Manchester, Begbies Traynor -- http://www.begbies.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. Headquartered in Derby, England, Infovision Systems Limited is engaged in software development. J.L. FRENCH: Court Approves Second Amended Disclosure Statement --------------------------------------------------------------- The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware approved on May 12 the Second Amended Disclosure Statement explaining the Second Amended Plan of Reorganization filed by J.L. French Automotive Castings, Inc., and its debtor-affiliates. Judge Walrath determined that the Disclosure Statement contained adequate information -- the amount of the right kind of information necessary allow creditors to make an informed decision -- as required under Section 1125 of the Bankruptcy Code. Beginning today, the Debtors will begin soliciting acceptances of the Plan of Reorganization from impaired classes of creditors. All votes will be due by June 14, and the rights offering will commence within a week after that. Concurrent with the solicitation of plan acceptances, the company will also conduct its rights offering, which is expected raise between US$110 million and US$130 million. The company anticipates a confirmation hearing on June 21 with a plan effective date on or about June 30. Terms of the Plan The Plan calls for the substantive consolidation of all the Debtors. The Plan incorporates the terms of a settlement between the company, the official committee of unsecured creditors and the second lien agent, on behalf of the required backstop parties. The Plan calls for the repayment in full of secured claims amounting to US$7.7 million and the first lien debt totaling approximately US$294 million. All classes related to the payment of debtor-in-possession financing claims, administrative expenses, priority claims and capital leases and other secured claims will be paid in full. Under the Plan, the second lien notes claims, which total approximately US$177 million, will be converted into 8%-22% of the new common stock and three tranches of warrants for new common stock in the reorganized company. The warrants will have strike prices ranging from US$195 million to US$295 million in equity value. Holders of second lien notes claims may also participate in a Rights Offering that will raise between US$110 million and US$130 million in exchange for 78%-92% of the new equity. This cash will help finance the reorganized company's exit from Chapter 11. Trade creditors will receive 100% of the face amount of their claims, but will not receive interest on those claims. General unsecured creditors other than holders of senior subordinated 11-1/2% notes and trade creditors will receive their pro rata shares of the greater of $50,000 or common stock having a value equal to certain property unencumbered by liens. The subordinated 11-1/2% notes are contractually subordinated to the second lien notes claims, and holders of those notes will not receive any distributions unless the second lien notes claims have been satisfied in full. Preferred and common equity holders will receive no distribution under the Plan. Distributions under the Plan will be made through new cash investment, as well as exit financing of no less than US$255 million, of which US$205 million will be a term loan and a revolver of US$50 million, with at least US$30 million unfunded capacity at the time the Plan becomes effective. The company is considering several exit financing proposals and expects to have an exit financing commitment shortly. As of Dec. 31, 2005, J.L. French had approximately US$465 million in first and second lien senior secured debt and US$28.9 million in 11.5% senior subordinated unsecured notes due 2009. The company incurred the majority of this debt as a result of an expansion and acquisition program in the late 1990s. When J.L. French completes its reorganization, it anticipates long-term debt of approximately US$26 million, in addition to the new US$205 million term facility that will be added to the balance sheet. As of Dec. 31, 2005, the company had approximately US$268 million in consolidated net operating losses. Terms of the Settlement The settlement provides, among other things, for a distribution of warrants to holders of the 11-1/2% subordinated notes, as well as a distribution of certain potential litigation recoveries to general unsecured claims holders and the note holders. These distributions will be in addition to the recoveries contemplated by the Plan of Reorganization as originally filed. A full-text copy of the Second Amended Disclosure Statement is available for a fee at: http://www.researcharchives.com/bin/download?id=060516220019 Headquartered in Sheboygan, Wisconsin, J.L. French Automotive Castings, Inc. -- http://www.jlfrench.com/-- is one of the world's leading global suppliers of die cast aluminum components and assemblies. There are currently nine manufacturing locations around the world including plants in the United States, United Kingdom, Spain, and Mexico. The company has fourteen engineering/customer service offices to globally support our customers near their regional engineering and manufacturing locations. The Company and its debtor-affiliates filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del. Case No. 06-10119 to 06-06-10127). James E. O'Neill, Esq., Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at Pachulski Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C., at Kirkland & Ellis LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for chapter 11 protection, they estimated assets and debts of more than $100 million. Immediately following the U.S. Debtors' pre-packaged chapter 11 filing, the Company's British unit went into administration. Shagun Sunil Dubey, Geoffrey Stuart Kinlan and Christopher Kim Rayment of BDO Stoy Hayward were appointed joint administrators. MISYS PLC: Transfers 18,333 Shares to Scheme Participants --------------------------------------------------------- Misys plc transferred 18,333 ordinary shares on May 12 to participants in its employee share schemes at a price of 178 pence per share. The shares were all formerly held as treasury shares. Following the transfer of shares out of Treasury, Misys plc holds a total of 52,398,644 ordinary shares in Treasury. The total number of ordinary shares in issue, excluding Treasury shares, is 499,328,392. Headquartered in the United Kingdom, Misys Plc -- http://www.misys.com/-- provides industry-specific software serving the international banking and healthcare industries and the U.K. general insurance industry. At Nov. 30, 2005, the company reported GBP155.6 million in total stockholders' deficit. RANK GROUP: Repurchases 1,250,000 Shares for Cancellation --------------------------------------------------------- The Rank Group Plc purchased back 1,250,000 ordinary shares of 10 pence in the Company on May 15 for cancellation at an average price of 219.64 pence per share. Headquartered in London, Rank Group PLC -- http://www.rank.com/ -- is an international leisure and entertainment company. The Group provides services to the film industry, including film processing, video duplication and cinema exhibition. The Group's leisure and entertainment activities entail gambling services, encompassing Mecca Bingo Clubs and Grosvenor Casinos, and owned and franchises Hard Rock cafes. * * * As reported in the TCR-Europe on March 8 Moody's Investors Service assigned a Ba2 corporate family rating to The Rank Group Plc and concurrently downgraded the senior unsecured long-term debt ratings of Rank Group Finance Plc (guaranteed by The Rank Group Plc) to Ba2 (from Baa3). At the same time, Fitch Ratings downgraded The Rank Group PLC's Long-term Issuer Default rating and Senior Unsecured ratings to BB- from BB+ and removed them from Rating Watch Negative. A Negative Outlook is assigned. The Short-term rating is affirmed at B. The downgrade follows the disposal of its film processing business, Deluxe Film, and confirmation of a return of capital to shareholders announced in conjunction with its 2005 preliminary results. In addition, Standard & Poor's Ratings Services lowered its long- and short-term corporate credit ratings on U.K.-based diversified leisure and entertainment company The Rank Group PLC to 'BB-/B' from 'BBB-/A-3'. S&P said the outlook is stable. UKAE LIMITED: Hires Deloitte & Touche Joint Administrators ---------------------------------------------------------- David John Langton, Andrew Philip Peters and Dominic Lee Zoong Wong of Deloitte & Touche LLP were appointed joint administrators of UKAE Limited (Company Number 02114773) on April 27. 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 Sutton Coldfield, England, UKAE Limited manufactures double glazing components. YOUNGS DEVELOPMENTS: Names Administrators from Portland Business ---------------------------------------------------------------- James Richard Tickell and Carl Derek Faulds of Portland Business & Financial Solutions Ltd. were appointed joint administrators of Youngs Developments Ltd. (Company Number 03158989) on April 28. The administrators can be reached at: Portland Business & Financial Solutions Ltd. 1640 Parkway Solent Business Park Whiteley, Fareham Hampshire PO15 7AH United Kingdom Tel: 01489 550 440 E-mail: carl.faulds@portland-solutions.co.uk james.tickell@portland-solutions.co.uk Headquartered in Southampton, England, Youngs Developments Limited develops and sells real estate. ********* 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, Carmel Paderog, and Joy Agravante, 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 * * *