/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060608.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, June 8, 2006, Vol. 7, No. 113 Headlines C R O A T I A ZELJEZARA SISAK: Inks Pact Selling Remont Caprag to Valjaonica F R A N C E EUROTUNNEL GROUP: Rebel Shareholder to Consider Other Plans G E R M A N Y AUTO-CENTER: Claims Registration Ends June 23 BUKON GMBH: Claims Registration Ends June 23 CASTRO LOPEZ: Claims Registration Ends June 23 GROHE HOLDING: Moody's Junks 11.5% Sr. Notes on Weak Credit H & P RECHENZENTRUM: Claims Filing Period Ends June 21 HALEN LADENBAU: Creditors' Meeting Slated for June 22 KLOECKNER & CO.: S&P Places Corporate Credit Rating at B+ KMD GMBH: Creditors' Meeting Slated for July 14 KUNOSTA KUNSTSTOFFRECYCLINGTECHNIK: Sets June 21 Claims Bar Date MHT MATERIAL: Claims Filing Period Ends June 21 SALMIX GMBH: Claims Registration Ends June 22 ZS BAUUNTERNEHMUNG: Claims Filing Period Ends June 16 I T A L Y PARMALAT GROUP: Grand Cayman Court Appoints Kroll as Liquidator PARMALAT SPA: Fraud Proceedings Kick Off in Parma Court K A Z A K H S T A N BAYER & K: Creditors Must File Claims by June 16 BES-BULAK: Creditors Must File Claims by June 16 CAB-2: Claims Registration Ends June 16 FIBRIN: Claims Registration Ends June 19 KOBRA: Creditors' Claims Due June 16 MAGAFUR & K: Creditors' Claims Due June 16 OIL-EXPO-SERVIS: Atyrau Court Opens Bankruptcy Proceedings TEHIMSNAB: Proof of Claim Deadline Slated for June 16 UZENMUNAIBAZA: Proof of Claim Deadline Slated for June 19 P O L A N D BRE BANK: Moody's Changes D- Financial Strength Rating Outlook NETIA SA: Court Closes Netia Holdings' Arrangement Proceedings R U S S I A AGRO-INVEST-AVIA: Court Begins Bankruptcy Supervision ANAPA AGRO-RPOM: Court Taps A. Mavrov as Insolvency Manager CHERKESSKIY METAL: Court Names R. Dzhaubaev Insolvency Manager CHUPINSKIY MINING: Bankruptcy Hearing Slated for July 28 IMPEXBANK: S&P Lifts Counterparty Credit Ratings to BB+/B KABARDINO-BALKARIYA: Court Names R. Dzhaubaev Insolvency Manager KUBANSKOYE STEEL-CONSTRUCTION: V. Ryzhov to Manage Assets OAO LUKOIL: Board of Directors Approve 2005 Annual Report OAO NOVATEK: Shareholders Approve 2005 Annual Report in AGM OAO NOVATEK: Shareholders Elect New Board of Directors OAO NOVATEK: Shareholders Approve Company's Share Split OAO ROSNEFT: Shareholders Approve Consolidation of Subsidiaries OMZ URALMASH: Inks RUR350-Mln Supply Pact with Rosenergoatom PSEBAYSKOYE: Court Appoints A. Mavrov as Insolvency Manager YUKOS OIL: V. Grekhov Steps Down as President of Production S P A I N RURAL HIPOTECARIO: Fitch Junks EUR11.7 Million Class E Notes S W I T Z E R L A N D SWISS REINSURANCE: S&P Rates 10 Senior Debt Classes at B U K R A I N E AGROPROMBUD: Chernigiv Court Begins Bankruptcy Supervision CHERNIVTSI' SUGAR: Court Names S. Ivanov as Insolvency Manager DONSNAB-HARKIV: Court Names O. Trizna to Manage Assets KREDO: Court Names Yaroslav Derevyanchenko as Liquidator NAFTOGAZTRADE: Court Names Vadim Hristenko to Manage Assets SAGAJDAK' BREAD: Court Names Y. Ovsij to Liquidate Assets SAPSAN: Zaporizhya Court Starts Bankruptcy Supervision SLOVYANI-PLUS: Court Names Vadim Hristenko as Liquidator U N I T E D K I N G D O M CABLE & WIRELESS: Employee Share Trustees Sell 118,379 Shares AMB ELECTRICAL: Appoints Administrators from Gerald Edelman COLLECTIBLE WORLD: NatWest Taps Begbies Traynor as Receivers DEW CONSTRUCTION: Lloyds TSB Names Receivers from Ernst & Young EIRCOM GROUP: Credit Suisse Holds 6.98% Equity Stake EUROTUNNEL GROUP: Rebel Shareholder to Consider Other Plans HILLSMEN ENGINEERING: Brings In Jacksons Jolliffe as Liquidators HORCA GRIFFIN: Brings In Portland Business to Administer Assets JAMUNA RESTAURANT: Creditors Pass Winding Up Resolution LANSDOWNE CONSTRUCTION: Names Simon James Bonney Liquidator LASTING IMPRESSIONS: Appoints Joint Administrators from Menzies MISYS PLC: Transfers 7,841 Shares to Scheme Participants N. TAYLOR: Brings In Creswall Associates as Administrators PEBBLESTONE LIMITED: Appoints Joint Administrators from Deloitte POLESTAR CORP.: S&P Withdraws B- Corp. Credit and Debt Ratings PROPERO LIMITED: Taps Smith & Williamson to Administer Assets RANK GROUP: Cancels Another 1,000,000 Shares in Buyback Program RDL LIMITED: Appoints Administrators from Moore Stephens RELIEF DRIVER: Names Peter Alan Langard as Administrator RITI PERFORMANCE: Taps Keith Aleric Stevens to Liquidate Assets SOLITAIRE WINDOW: Financial Woes Trigger Liquidation SOUTHERN CLADDING: Brings In Liquidator from Fisher Partners T D C MOTORS: Creditors Confirm Voluntary Liquidation TONI & GUY: Hires Joint Liquidators from David Rubin & Partners TRUSTED SERVICES: Hires Liquidator from Vantis Numerica LLP * Competition Commission Welcomes Peter Davis as Deputy Chairman ********* ============= C R O A T I A ============= ZELJEZARA SISAK: Inks Pact Selling Remont Caprag to Valjaonica -------------------------------------------------------------- Valjaonica cijevi Sisak acquired Remont Caprag from bankrupt ironworks firm Zeljezara Sisak d.d. for an undisclosed sum, Croatia Today reports. Valjaonica is 100% owned by Croatian Privatisation Fund. The acquisition would permit Valjaonica to continue its operations since it is using Remont's services to maintain its production equipment, CT relates. According to the report, Valjaonica is seeking potential investors to purchase a part of Remont's property in order to unblock the latter's bank accounts. The Croatian steel mill would also sell non-core assets in order to settle its debts to other trustees, including a KN6.5 million debt to the Ministry of Finance, CT discloses. The sale agreement was signed by VCS Management President Damir Begovi and Zeljezara's bankruptcy manager Darko Sket. Headquartered in Sisak, Croatia, Zeljezara Sisak d.d. manufactures welded, seamless and cold-rolled steel pipes. =========== F R A N C E =========== EUROTUNNEL GROUP: Rebel Shareholder to Consider Other Plans ----------------------------------------------------------- Eurotunnel Group shareholder activist Nicolas Miguet said he wants to look at all alternative debt-reduction proposals before agreeing to a management-backed rescue plan, Bloomberg News relates. "If there are two plans, I'll judge between both of them," Mr. Miguet told Bloomberg. "If there are three, I'll choose between three. If there's only one, which is currently the case, my position hasn't changed." As previously reported in TCR-Europe, the Group confirmed on June 4 that it did not officially receive or contact any alternative restructuring plan from any other financial institution to date. The binding agreement Eurotunnel signed with the Ad Hoc Committee on May 23 and financed by the consortium, Goldman Sachs, Barclays and Macquarie, envisages a reduction of the initial debt, reducing it from GBP6.2 billion to GBP2.9 billion. The Group stressed that any alternative solution should, in terms of debt write off, have at least the same ambition. The Agreement preserves, as far as possible, the interests of all the parties involved. It is being presented to the other debt holders and will be presented to Eurotunnel shareholders at the next General Meeting scheduled for July 12. About the Company 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. * * * Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Eurotunnel needs to obtain approval from other creditors and shareholders for a final agreement. Absent a final agreement, the Group may default in January 2007. On April 26, Eurotunnel obtained a third extension of its credit waiver, which calls for creditor talks to continue through July 12. ============= G E R M A N Y ============= AUTO-CENTER: Claims Registration Ends June 23 --------------------------------------------- Creditors of Auto-Center Zwickau GmbH have until June 23 to register their claims with court-appointed provisional administrator Frank Ruediger Scheffler. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 19, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 24 Prince Road 21 Chemnitz, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Chemnitz opened bankruptcy proceedings against Auto-Center Zwickau GmbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto-Center Zwickau GmbH Attn: Dr. Uwe Hannig, Manager Werdauer Road 162 08060 Zwickau, Germany The administrator can be reached at: Frank Ruediger Scheffler Ulmenstrasse 14 09112 Chemnitz, Germany Web: http://www.tiefenbacher.de/ BUKON GMBH: Claims Registration Ends June 23 -------------------------------------------- Creditors of BUKON GmbH have until June 23 to register their claims with court-appointed provisional administrator Dr. Ruth Rigol. Creditors and other interested parties are encouraged to attend the meeting at 12:00 noon on July 31, at which time the administrator will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall W126 1. Stock William Route 21 53111 Bonn, 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 Bonn opened bankruptcy proceedings against BUKON GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BUKON GmbH Attn: Gerd Rambow, Manager Old Zielei 4 51588 Nuembrecht, Germany The administrator can be reached at: Dr. Ruth Rigol Magnusstrasse 13 50672 Cologne, Germany Tel: 0221/650660 Fax: 0221/650661 CASTRO LOPEZ: Claims Registration Ends June 23 ---------------------------------------------- Creditors of Castro Lopez GmbH have until June 23 to register their claims with court-appointed provisional administrator Mathias Dorn. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 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 Kempten Meeting Room 157/I Residence Place 4-6 87435 Kempten, 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 Kempten opened bankruptcy proceedings against Castro Lopez GmbH on April 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Castro Lopez GmbH Weber Lane 35-37 87435 Kempten, Germany The administrator can be reached at: Mathias Dorn Allgauer Road 1 87435 Kempten, Germany Tel: 0831/5800434 Fax: 0831/5800464 GROHE HOLDING: Moody's Junks 11.5% Sr. Notes on Weak Credit ----------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Grohe Holding GmbH to B2 from B1. The outlook remains negative. The downgrade reflects the company's weakened credit metrics, which are no longer commensurate with the previous rating category. In the twelve months to March 31, Adjusted Total Debt/EBITDA (adjusted for pensions and before restructuring costs) increased to nearly 8.3x, while cash flows from operations were negative, after a net EUR30 million inflow from working capital. Moody's recognizes that on a like-for-like basis, total sales in the first quarter of 2006 increased year- on-year in most geographical areas, with some stabilization in Germany. Nevertheless, the EBITDA margin remained below the same period last year, and has been impacted by increased costs, notably for raw materials. Moody's also notes that cash flows have been significantly impacted by cash restructuring costs, which the company expects will decline in the current year. The company's liquidity at March 31 consisted of EUR31 million in cash in hand and at banks, in addition to EUR55.4 million under its Revolving Credit Facility and other bank lines, and EUR30 million committed under Tranche D of its senior credit facilities. Grohe's short-term financial liabilities remain minimal, namely EUR9.4 million in debt at subsidiaries (excluding commitments under the revolver, which can, however, be refinanced on a rolling basis). The senior facilities do not begin to mature until the end of 2007. The negative outlook reflects Moody's view that high interest costs and ongoing cash restructuring costs are likely to absorb a significant amount of operating cash flow and thus constrain the potential for significant deleveraging in the near term. Should the company's restructuring efforts lead to a strengthening in operating cash flows and result in Adjusted Total Debt/EBITDA falling towards 7.0x with a strengthening in cash flow metrics, the outlook could be stabilized. Downward rating pressure could arise if operating profits do not improve, or if concerns develop about the company's near-term liquidity. Four ratings have been affected: -- the B1 Corporate Family Rating lowered to B2; -- the B1 rating on the EUR900 million senior secured credit facilities lowered to B2; -- the B3 rating on the EUR335.0 million 8.625% senior notes due 2014 lowered to Caa1; -- the Caa1 on the remaining 11.5% senior notes due 2010 (originally issued by Grohe Aktiengesellschaft) lowered to Caa2. Grohe Holding GmbH is the ultimate holding company for Grohe Water Technology AG & Co. KG, which is headquartered in Hemer, Germany, and is a leading European supplier of sanitary technology systems. For the year ended December 2005, Grohe generated revenues and EBITDA (before exceptionals) of EUR865million and EUR160 million, respectively. H & P RECHENZENTRUM: Claims Filing Period Ends June 21 ------------------------------------------------------ Creditors of H & P Rechenzentrum GmbH have until June 21 to register their claims with court-appointed provisional administrator Martin Kienitz. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 12, 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 Bielefeld Hall 4065 4. Ebene Court Route 6 33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings against H & P Rechenzentrum GmbH on May 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: H & P Rechenzentrum GmbH Attn: Siegfried Hornig, Manager Mountain Route 27 32278 Kirchlengern, Germany The administrator can be reached at: Martin Kienitz Ruegenweg 14 32427 Minden, Germany HALEN LADENBAU: Creditors' Meeting Slated for June 22 ----------------------------------------------------- The court-appointed provisional administrator for Halen Ladenbau GmbH, Dr. Karl Gobel, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:15 a.m. on June 22. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Court House (New Building) Ostertorstr. 25-31 28195 Bremen, Germany The Court will also verify the claims set out in the administrator's report at 11:15 a.m. on July 20 at the same venue. Creditors have until June 27 to register their claims with the court-appointed provisional administrator. The District Court of Bremen opened bankruptcy proceedings against Halen Ladenbau GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: Halen Ladenbau GmbH Attn: Peter and Marie Halen, Manager Hermann-Funk-Road 3 28309 Bremen, Germany The administrator can be reached at: Dr. Karl Gobel Wachtstr. 17 28195 Bremen, Germany Tel: 0421/366060 Fax: 0421/3660630 Web: http://www.ra-dr-goebel.de/ E-mail: ra.dr.goebel@nord-com.net KLOECKNER & CO.: S&P Places Corporate Credit Rating at B+ --------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit rating on Germany-based metal distributor Kloeckner & Co. International GmbH (Kloeckner) on CreditWatch with positive implications. The 'B-' rating on the EUR260 million subordinated bonds issued by Kloeckner Investment S.C.A. and guaranteed by Kloeckner was also placed on CreditWatch with positive implications. This follows today's announcement by the company that it plans to undertake a partial IPO in the very near term. "The CreditWatch placement reflects the potential strengthening of Kloeckner's financial profile likely to stem from the proposed partial IPO of up to 50% of group equity," said Standard & Poor's credit analyst Eve Greb. "Although the details of the proposed transaction are yet to be specified, a positive rating action is likely to be triggered if the IPO goes ahead and if a substantial portion of the proceeds is used to reduce net indebtedness." This could involve a claw-back of up to 35% of the outstanding bond issued by Kloeckner Investment S.C.A. A successful transaction would lead to a one-notch upgrade of all ratings if the new capital structure results in pro forma operating cash flow (OCF) to adjusted debt of between 15% and 20% on a sustained basis. A ratio of OCF to adjusted debt in excess of this level would likely result in a two-notch upgrade of all ratings. Conversely, if the partial IPO does not go ahead, or if the proceeds are not used for debt reduction, the ratings would likely be affirmed and the corporate credit rating assigned a positive outlook. The CreditWatch will be resolved once the details of the transaction have been finalized and the ultimate success, or otherwise, of the IPO is assured. KMD GMBH: Creditors' Meeting Slated for July 14 ----------------------------------------------- The court-appointed provisional administrator for KMD GmbH, Biner Bahr, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:45 a.m. on July 14. The meeting of creditors and other interested parties will be held at: The District Court of Duesseldorf Meeting Room A 341 3rd Floor Mill Road 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 June 23 to register their claims with the court-appointed provisional administrator. The District Court of Duesseldorf opened bankruptcy proceedings against KMD GmbH on May 3. Consequently, all pending proceedings against the company have been automatically stayed The Debtor can be reached at: KMD GmbH Attn: Ulrich Over, Manager Puellenweg 9 41352 Korschenbroich, Germany The administrator can be reached at: Dr. Biner Bahr Jagerhofstrasse 21-22 40479 Duesseldorf, Germany KUNOSTA KUNSTSTOFFRECYCLINGTECHNIK: Sets June 21 Claims Bar Date ---------------------------------------------------------------- Creditors of Kunosta Kunststoffrecyclingtechnik GmbH have until June 21 to register their claims with court-appointed provisional administrator Martin Kienitz. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 12, 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 Bielefeld Hall 4065 4. Ebene Court Route 6 33602 Bielefeld, 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 Bielefeld opened bankruptcy proceedings against Kunosta Kunststoffrecyclingtechnik GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kunosta Kunststoffrecyclingtechnik GmbH Old Post Office Way 16 32469 Petershagen, Germany Attn: Uwe Grundke, Manager Karolingerstr. 65F 46395 Bocholt The administrator can be reached at: Martin Kienitz Ruegenweg 14 32427 Minden, Germany MHT MATERIAL: Claims Filing Period Ends June 21 ----------------------------------------------- Creditors of mht material handling technologies GmbH & Co. KG have until June 21 to register their claims with court-appointed provisional administrator Markus Eibofner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 12, 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 Ludwigsburg Hall 2008 Palace Contactor Schorndorfer Road 28, 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 Ludwigsburg opened bankruptcy proceedings against mht material handling technologies GmbH & Co. KG on April 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: mht material handling technologies GmbH & Co. KG Attn: Dr. Stephan Poller, Manager Schultheis-Kohle-Road 1 71636 Ludwigsburg, Germany The administrator can be reached at: Markus Eibofner William Route 4 70182 Stuttgart, Germany SALMIX GMBH: Claims Registration Ends June 22 --------------------------------------------- Creditors of Salmix GmbH have until June 22 to register their claims with court-appointed provisional administrator Hans- Juergen Beil. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on July 7, 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 Norderstedt Hall B City Hall Avenue 80 22846 Norderstedt, 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 Norderstedt opened bankruptcy proceedings against Salmix GmbH on May 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Salmix GmbH Attn: Reiner and Brigitte Caspar, Managers Holstenstrasse 16 24641 Sievershuetten, Germany The administrator can be reached at: Hans-Juergen Beil Hallerstrasse 76 20146 Hamburg, Germany ZS BAUUNTERNEHMUNG: Claims Filing Period Ends June 16 ----------------------------------------------------- Creditors of ZS Bauunternehmung und Holzbau GmbH have until June 16 to register their claims with court-appointed provisional administrator Thomas Farian. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 21, 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 Ludwigsburg Hall 2008 Palace Contactor Schorndorfer Road 28 Ludwigsburg, 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 Ludwigsburg opened bankruptcy proceedings against ZS Bauunternehmung und Holzbau GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ZS Bauunternehmung und Holzbau GmbH Attn: Selim Zarifoglu, Manager Liebigstrasse 10 71636 Ludwigsburg, Germany The administrator can be reached at: Thomas Farian Stuttgarter Strasse 78 71638 Ludwigsburg, Germany Tel: 07141/95470 ========= I T A L Y ========= PARMALAT GROUP: Grand Cayman Court Appoints Kroll as Liquidator --------------------------------------------------------------- In a judgment dated May 12, 2006, the Grand Court of Cayman Islands appointed Gordon I. MacRae and James Cleaver at Kroll (Cayman) Limited as Joint Official Liquidators of Parmalat Capital Finance Limited, Dairy Holdings Limited, and Food Holdings Limited. The Cayman Court has yet to enter an order regarding the judgment. The Official Liquidators expect Parmalat Finanziaria SpA and its affiliates and subsidiaries to file a notice of appeal from the Grand Court Order. Messrs. Cleaver and MacRae are former partners of Ernst & Young Restructuring Ltd., before the Cayman Islands insolvency and advisory arm of Ernst & Young was acquired by Kroll Cayman, an affiliate of Kroll, Inc., in 2005. Dairy Holdings and Food Holdings are Cayman Island special- purpose vehicles established by Parmalat SpA. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. On January 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York before Judge Drain. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. About Parmalat 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 Feb. 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 US$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. PARMALAT SPA: Fraud Proceedings Kick Off in Parma Court ------------------------------------------------------- Criminal proceedings related to Parmalat SpA's collapse began in a court in Parma, Italy, on June 5, 2006. As widely reported, 64 individuals, including Parmalat founder Calisto Tanzi and former chief financial officer Fausto Tonna, face possible fraud charges. The defendants are mostly former executives, accountants, auditors and bankers. Charges range from criminal association to fraudulent bankruptcy, AGI Online relates. The preliminary hearings have been slated for three days, however, court officials believe the proceedings could extend for months, as some defendants may seek pretrial plea agreements, The Associated Press says. According to Reuters, Judge Domenico Truppa, who oversees the proceedings, will have to decide whether to put all the cases together and whether the executives will face a trial. About Parmalat 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 Feb. 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 US$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 T A N =================== BAYER & K: Creditors Must File Claims by June 16 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Bayer & K insolvent. Creditors have until June 16 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Tarana Str. 157 Kostanai Kostanai Region Kazakhstan BES-BULAK: Creditors Must File Claims by June 16 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Aktube Region declared LLP Bes-Bulak insolvent. Creditors have until June 16 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Region Altynsarina Str. 31 Aktobe Aktube Region Kazakhstan CAB-2: Claims Registration Ends June 16 --------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP CAB-2 insolvent. Creditors have until June 16 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Tarana Str. 157 Kostanai Kostanai Region Kazakhstan FIBRIN: Claims Registration Ends June 19 ---------------------------------------- The Specialized Inter-Regional Economic Court of Almaty Region declared LLP Fibrin insolvent on March 30. Creditors have until June 19 to submit written proofs of claim to: LLP Fibrin Office 4 Kassina Str. 2/1 Mamyr 050052 Almaty, Kazakhstan Tel: 8 (3272) 93-19-22 8 (3335) 59-68-31 8 (3332) 58-50-41 KOBRA: Creditors' Claims Due June 16 ------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Kobra insolvent. Creditors have until June 16 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Tarana Str. 157 Kostanai Kostanai Region Kazakhstan MAGAFUR & K: Creditors' Claims Due June 16 ------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai Region declared LLP Magafur & K insolvent. Creditors have until June 16 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Region Tarana Str. 157 Kostanai Kostanai Region Kazakhstan OIL-EXPO-SERVIS: Atyrau Court Opens Bankruptcy Proceedings ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau Region commenced bankruptcy proceedings against LLP Oil-Expo-Servis on April 11. The Specialized Inter-Regional Economic Court of Atyrau Region can be reached at: Moldogalieva Str. 26-105 Atyrau Atyrau Region Kazakhstan TEHIMSNAB: Proof of Claim Deadline Slated for June 16 ----------------------------------------------------- LLC Tehimsnab has declared insolvency. Creditors have until June 16 to submit written proofs of claim to: LLC Tehimsnab Timiryazeva Str. 42 Micro District Jetysu-2 57-1 Almaty, Kazakhstan Tel: 8 (3272) 74-98-87 8 (3333) 83-12-08 UZENMUNAIBAZA: Proof of Claim Deadline Slated for June 19 --------------------------------------------------------- LLP Uzenmunaibaza has declared insolvency. Creditors have until June 19 to submit written proofs of claim to: LLP Uzenmunaibaza Petroleum Storage Depot, Room 1 Industry Zone Janaozen, East Kazakhstan Region Kazakhstan Tel: 8 (32934) 3-18-45 =========== P O L A N D =========== BRE BANK: Moody's Changes D- Financial Strength Rating Outlook -------------------------------------------------------------- Moody's Investors Service has changed the outlook on D- Bank Financial Strength Rating of BRE Bank SA (BRE Bank) to Positive from Stable. The rating action does not affect the A3/P-2 deposit ratings of BRE bank, both of which have been affirmed. The bank is 70.6% owned by German Commerzbank (rated A2/P-1/C+) whose expected support underpins BRE Bank's deposit ratings. Moody's stated that the change in outlook reflected the bank's progress in addressing its areas of weaknesses, good track record in recent years in achieving its business objectives, improving financial fundamentals and reducing risk profile. BRE Bank has been recently concentrating on restoring its recurring profitability, restructuring corporate banking business line, enhancing performance of its retail operations and improving its overall risk profile. Moody's added that a future upgrade of BRE Bank SA's FSR could be based on further improvement in the bank's financial fundamentals, in particular- increased revenue generation and further improvement in operating efficiency and profitability. Other factors that could contribute to an upgrade of the bank's FSR could include maintaining its market share in corporate and investment banking and demonstrating further progress in developing its retail franchise. Headquartered in Warsaw, Poland, BRE Bank SA is the country's fifth largest bank. At the end of 2005, it had consolidated total assets, according to IFRS, amounting to PLN32,817 million (EUR8.52 bn) vs. 2004 consolidated total assets of PLN30,494 million, and IFRS net profit of PLN248 million (EUR64.4 million) vs. 2004 net loss of PLN294 million. NETIA SA: Court Closes Netia Holdings' Arrangement Proceedings -------------------------------------------------------------- The Regional Court in Warsaw completed the arrangement proceedings of Netia Holdings SA, further to full repayment of receivables provided in the arrangement plan adopted by Netia and its creditors. Arrangements proceedings of Netia constituted the last part of the court arrangement proceedings performed in connection with the financial restructuring of the Netia group. Along with the completion of these proceedings, and following the earlier completion of arrangement proceedings of Netia Telekom SA and Netia South Sp. z o.o., the process of financial restructuring of the Netia group is completed. On Aug. 9, 2002, the District Court for the City of Warsaw approved the arrangement plan that was previously adopted by the requisite majority of Netia Holdings S.A.'s creditors, representing over 95% of total value of claims. Terms of the confirmed arrangement plan for Netia Holdings include: (1) 91.3 % of the debts subject to the arrangement plan will be written off; (2) Creditors will be repaid in annual installments; (3) Installment obligations will be denominated in Polish zloty, will be zero coupon and shall be payable on the last day of each consecutive calendar year during the period when the arrangement plan is in force: (a) the first installment payable on Dec. 31, 2007, will be equal to 8.5% of the reduced claims subject to the arrangement; (b) the second installment payable on Dec. 31, 2008, will be equal to 8.5% of the reduced claims subject to the arrangement plan; (c) the third installment payable on Dec. 31, 2009, will be equal to 17% of the reduced claims subject to the arrangement plan; (d) the fourth installment payable on Dec. 31, 2010, will be equal to 17% of the reduced claims subject to the arrangement plan; (e) the fifth installment payable on Dec. 31, 2011, will be equal to 24.5% of the reduced claims subject to the arrangement plan; and (f) the sixth installment payable on Dec. 31, 2012, will be equal to 24.5% of the reduced claims subject to the arrangement plan. (4) The obligations under the arrangement plan will not be secured by any form of security interest. Pursuant to the Polish Commercial Companies Code, Netia SA became the legal successor of Netia Telekom SA and its eighteen wholly owned subsidiaries following a merger in December 2003. Headquartered in Warsaw, Poland, Netia S.A. (B+/Stable/) -- http://netia.pl/-- is an alternative fixed-line telecommunications operator in Poland. It operates on the basis of its own, state-of-the-art fiber-optic backbone network that connects the largest Polish cities as well as its local access networks. Netia provides a broad range of telecommunications services, including voice, data and network wholesale services. =========== R U S S I A =========== AGRO-INVEST-AVIA: Court Begins Bankruptcy Supervision ----------------------------------------------------- The Arbitration Court of Kursk Region has commenced bankruptcy supervision procedure on LLC Agro-Invest-Avia. The case is docketed under Case No. A35-11788/05 g. The Temporary Insolvency Manager is: V. Afanasyev Office 312 Dimirova Str. 76 305004, Kursk Region, Russia The Debtor can be reached at: LLC Agro-Invest-Avia Kursk Kursk Region, Russia ANAPA AGRO-RPOM: Court Taps A. Mavrov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed Mr. A. Mavrov as insolvency manager for CJSC Anapa Agro-Rpom (Case No. A-32-18173/2005-38/240-B). He can be reached at: Anapa Agro-Rpom Stasova Str. 180 305575, Krasnodar Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: CJSC Anapa Agro-Rpom Anapa Pionerskiy Pr. 30 353456 Krasnodar Region, Russia CHERKESSKIY METAL: Court Names R. Dzhaubaev Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Karachaevo-Cherkessiya Republic appointed Mr. R. Dzhaubaev as insolvency manager for LLC Cherkesskiy Factory of Metal Goods (TIN 0901050134). He can be reached at: R. Dzhaubaev Cherkessk, Lenina Str. 50 Karachaevo-Cherkessiya Republic, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A25-3790/05-8). The Debtor can be reached at: LLC Cherkesskiy Factory of Metal Goods Lenina Str. 334A Post Office 1 Cherkessk 369001, Karachaevo-Cherkessiya Republic, Russia CHUPINSKIY MINING: Bankruptcy Hearing Slated for July 28 -------------------------------------------------------- The Arbitration Court of Kareliya Republic will convene on July 28 to hear the bankruptcy supervision procedure on CJSC Chupinskiy Mining-and-Processing Integrated Works (Case No. A26-680/2006-18). The Temporary Insolvency Manager is: I. Belyaminov Post User Box 8 Petrozavodsk 185035, Kareliya Republic, Russia The Debtor can be reached at: CJSC Chupinskiy Mining-and-Processing Integrated Works Pionerskaya Str. 42 Chupa Kareliya Republic, Russia IMPEXBANK: S&P Lifts Counterparty Credit Ratings to BB+/B --------------------------------------------------------- Standard & Poor's Ratings Services raised its long- and short- term counterparty credit ratings on Russia-based JSC Impexbank to 'BB+/B' from 'B-/C'. At the same time, the ratings were removed from CreditWatch with positive implications, where they had originally been placed on Feb. 1. The outlook is positive. The upgrade is based on Impex's 100%-ownership by Raiffeisen International Bank-Holding AG (RI; not rated), a majority owned subsidiary of Austria-based Raiffeisen Zentralbank Tsterreich (RZB; --/--/A-1). Standard & Poor's views Impex as a strategically important subsidiary of the RI group, benefiting from access to group funding and capital resources. "The ratings on Impex reflect the expectation of significant benefits from membership in the RI group in terms of risk- management, liquidity, IT, and managerial support. The ratings are also supported by Impex's good business franchise in servicing small and midsize enterprises and individual clients, its decreased credit concentration on related parties, and its good funding diversification," said Standard & Poor's credit analyst Eugene Tarzimanov. The ratings are constrained, however, by its weak capitalization, and low (although improving) core profitability. Standard & Poor's expects that Impex has a strong potential to further strengthen its creditworthiness in the medium term, with the support of RI. Impex's collaboration and/or merger with ZAO Raiffeisenbank Austria (not rated) should also improve its credit profile and strategic positioning in the RI group, as reflected by the positive outlook. Impex's focus on retail and SME lending should boost margins and recurrent revenues in the future, and help to decrease lending concentration. A negative rating action might result if Impex's ties to RI are weakened, its capitalization level erodes, or the quality of its loan portfolio and earnings structure deteriorates. "The ratings on Impex will largely be driven by the extent of support it will receive from RI, the development of the economic and industry risks in Russia, and the sustainable improvement in Impex's performance," added Mr. Tarzimanov. KABARDINO-BALKARIYA: Court Names R. Dzhaubaev Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Kabardino-Balkariya Republic appointed Mr. R. Dzhaubaev as insolvency manager for OJSC Mineral Waters of Kabardino-Balkariya (TIN 0711053573). He can be reached at: R. Dzhaubaev Kabardinskaya Str. 151 Nalchik 360000, Kabardino-Balkariya Republic, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A20-7818/2005). KUBANSKOYE STEEL-CONSTRUCTION: V. Ryzhov to Manage Assets --------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed Mr. V. Ryzhov as insolvency manager for Kubanskoye Enterprise OJSC Steel-Construction (Case No. A-32-1779/2006-44/7 B). He can be reached at: V. Ryzhov Room 31 Zheleznodorozhnaya Str. 24 350033, Krasnodar Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: Kubanskoye Enterprise OJSC Steel-Construction Prom.zone Armavir 352900, Krasnodar Region, Russia OAO LUKOIL: Board of Directors Approve 2005 Annual Report --------------------------------------------------------- The Board of Directors for OAO Lukoil gave preliminary approval to the Company's 2005 Annual Report in accordance with the Federal Law of the Russian Federation for Joint-Stock Companies and in compliance with the Company Charter on May 30. The document was submitted for consideration of the General Shareholders Meeting scheduled for June 28, 2006. In 2005, geological exploration yielded discovery of four new oilfields and one oil and gas condensate field together with eleven new reservoirs in the fields discovered earlier. As of Jan. 1, 2006, proven reserves of the LUKOIL Group reached, according to the international classification of reserves, 20.3 billion barrels of oil equivalent including 16.1 billion barrels of oil and 25.3 trillion cubic feet of gas. The amount of proven reserves secures 24 years of oil production and 95 years of gas production at the current extraction rate. The most substantial oil reserves growth was observed in the Nenetz Autonomous Region, in Western Siberia, in the Caspian basin and in Perm Region. Hydrocarbon replenishment rate reached 137 percent. LUKOIL Group's oil production in 2005 totaled 90,158 ths tons. Average daily production rate increased by 4.7 percent as compared to 2004. Natural production growth rate reached 4 percent. Domestic production totaled 86 277 ths tons. In 2005, gas production of the LUKOIL Group totaled 7,569 million cubic meter Average daily gas production rose by 17.3 percent as compared to 2004. Natural gas production reached 2,628 million cubic meter and increased by 43.8 percent as compared to 2004. Increasing attractiveness of domestic supplies accounted for 1 percent decrease in oil exports of LUKOIL subsidiaries, as compared to the same period of the previous year, and amounted to 45.8 million tons. Oil refining volumes, including processing at third party refineries, increased by 11.3 percent as compared to 2004 and totaled 50.4 million tons. Petroleum product sales in the Russian market reached 19.97 million tons in 2005. Retail sales totaled 3.55 million tons, which made a 29.4 percent increase as compared to 2004. Petroleum product daily average per filling station increased by 19 percent and reached 7.6 tons per day. Sales of petroleum products abroad in 2005 reached 56.67 million tons, including 7.12 million tons (29.9% up from the level of 2004) through the Company's retail network of filling stations. In 2005, the LUKOIL Group companies spent US$320 million on environmental safety programs, including US$160 million on nature conservation facilities. Approximately US$230 million were allocated to finance the Occupational Health and Safety Program in 2005. Reports of the Board of Directors, the Audit Committee, the Strategy and Investments and the HR and Compensation Committees were presented at the meeting. In 2005 the Board of Directors approved major indicators for the Budget and Investments Program for 2006 and the Midterm Development Plan of the LUKOIL Group for 2006-2008. The Board of Directors also resolved to make further improvements in corporate governance and outlined areas of development for specific business segments. The Audit Committee particularly examined the issue of improving accountancy and accounting policy and endorsed the improved system of hydrocarbon reserves evaluation and audit management. The Strategy and Investments Committee analyzed the major indicators for the Budget and Investments Program for 2006 and the Midterm Development Plan of the LUKOIL Group for 2006-2008 and reviewed amendments to the Group's investment program in account of the global oil price changes. The HR and Compensation Committee analysed implementation of the Company's social policy pursued in accordance with OAO LUKOIL's Social Code and the Agreement between the employer and the Company's labor union for 2006-2008. Performance of the Board of Directors and its Committees was recognized as positive. The 2005 Annual Report was suggested to be submitted to the General Shareholders Meeting for approval. Headquartered in Moscow, Russia, OAO Lukoil, is the country's largest vertically integrated oil & gas company in terms of reserves, and one of the largest oil & gas companies in the world. In the first nine months of 2005, the group produced 1.92 million barrels of oil equivalent (boe) per day and in 2004 had refinery throughput of 44 million tons. Total SPE reserves in 2004 were just over 20 billion boe. The group's 2005 nine- month revenues were US$40.6 billion. * * * As reported in the TCR-Europe on Jan. 26, Moody's Investors Service has changed the outlook of OAO Lukoil's Ba1 Corporate Family Rating and Ba2 Issuer Rating to positive from stable. Moody's last rating action on LUKOIL was on April 26, when the agency upgraded the company's ratings from Ba2/Ba3 to Ba1/Ba2. OAO NOVATEK: Shareholders Approve 2005 Annual Report in AGM ----------------------------------------------------------- Shareholders approved OAO Novatek's 2005 Annual Report, annual RSA accounts and allocation of profits for 2005 at its Annual General Meeting. "During 2005, the Company consistently executed its corporate strategy aimed at increasing hydrocarbon production volumes, growing its resource base, constructing new processing facilities and strengthening its market positions," Leonid Mikhelson, NOVATEK's CEO, said. In 2005, total hydrocarbon production increased by 17% reaching 186 million barrels of oil equivalent (boe), the highest production volumes for natural gas and gas condensate achieved over the Company's history. Gross production of natural gas totaled 25.2 billion cubic meters (bcm) increasing by 4.3. bcm, or 21%, compared to the previous year. Average daily natural gas production grew in 2005 by 13 million cubic meters (mmcm), or 23%, to 69 mmcm per day. In December 2005, the Company achieved record daily production volumes of 80 mmcm. In 2005, gas condensate output increased by 135 thousand tons, or 7%, exceeding 2 million tons for the year. At year-end 2005, NOVATEK increased its proven reserves of natural gas, gas condensate and crude oil by 9.5% to 4.6 billion boe. In 2005, the Company's replaced 311% of its hydrocarbon production through its successful geological and development activities. The volume of proven reserves ensures current production level of 2005, reserves-to-production ratio, for the next 25 years. In June 2005, NOVATEK commenced operations at its Purovsky gas condensate processing facility (Purovsky Plant) enabling the Company to process 100% of its unstable gas condensate production. The construction of the Purovsky Plant was completed within 18 months During 2005, the Purovsky Plant processed about 1 million tons of unstable gas condensate and produced 764 thousand tons of stable gas condensate and 245 thousand tons of liquefied petroleum gas. The commencement of operations at the Purovsky Plant enhanced NOVATEK's marketing distribution channels for liquid hydrocarbons providing flexibility to deliver products to both the international and domestic markets. In 2005, NOVATEK together with Belomorskaya Neftebaza (White Sea Oil Depot) expanded the gas condensate loading and storage facilities in the port of Vitino located in the Murmansk region. In June 2005, in order to develop deep processing of raw hydrocarbons and their derivatives, NOVATEK commissioned a biaxial-orientated polypropylene plant (BOPP) which design capacity of 25 thousand tons per annum allowing the Company to supply up to one-quarter of Russian market for consumer packaging film materials used in the food, tobacco, perfume, pharmaceutical and textile industries. During 2005, the Company's natural gas sales volumes increased by 10 bcm, or 58%, to 27.33 bcm as compared to the prior year. NOVATEK expanded its geography of natural gas sales from 17 to 30 Russian regions, including Chelyabinsk, Samara, Leningrad, Perm and Tyumen regions. The main consumers of the Company's natural gas are electric power companies, other industrial consumers and regional natural gas distributors. The commencement of the Purovsky Plant caused significant changes in the composition of liquid hydrocarbon sales in 2005. The portion of oil and oil products sold decreased from 100% to 60%, whereas sales of stable gas condensate and LPG produced at the plant accounted for 40% of the volumes sold. Total liquids sales increased in 2005 by 348 thousand tons, or 17%, over prior period achieving sales volumes of approximately 2,46 million tons. The Purovsky Plant and port facilities in Vitino enabled the Company to approach new markets. In 2005, NOVATEK supplied gas condensate both to European countries and North America selecting a region subject to pricing conditions in these markets. The Company also presented its consolidated financial statements prepared in accordance with International Financial Reporting Standards. Total revenue and other income grew by 71% in 2005 while the Company's total debt was reduced by RUB15 billion, or by 62%, to RUB9 billion as compared to 2004. The full consolidation of core subsidiaries combined with increased sales volumes of natural gas and gas condensate contributed to the record results reported in the Company's financial results for 2005. According to NOVATEK's CFO, Mark Gyetvay, "Last year the Company reported revenues and earnings above those planned in the budget largely due to increases in sales volumes and favorable pricing conditions in the domestic and international markets." The Company obtained a first-time corporate rating from Moody's (Ba2/ stable outlook) and S&P (BB-/ stable outlook) during the year. Mr. Gyetvay stated, "We continued our aggressive debt reduction program in 2005 significantly strengthening our balance sheet and reducing our finance cost, which contributed to the positive ratings received from the credit rating agencies." Summing up the results of 2005, NOVATEK's Board of Director Chairman, Alexander Natalenko stated that "2005 was the most successful year in the Company's history. We were able to improve the Company's financial and business performance, complete our assets restructuring and ensure the entry onto the stock exchange markets." Headquartered in Moscow, OAO Novatek is Russia's second largest gas company after state-controlled Gazprom, and the largest of the country's independent gas producers. * * * As reported in TCR-Europe on March 21, Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to OAO Novatek, Russia's largest independent gas producer. S&P said the outlook is stable. OAO NOVATEK: Shareholders Elect New Board of Directors ------------------------------------------------------ Shareholders of OAO Novatek elected a new Board of Directors which consists of five independent directors and three executive directors. The independent Board members include: * Anatoly Mikhailovich Brekhuntsov, General Director of OAO Siberian Scientific and Analytical Center * Vladimir Alexandrovich Dmitriev, CEO, Vnesheconombank * Anatoly Nikolayevich Dmitrievsky, Director of Oil and Gas Institute, Russian Academy of Sciences and Chairman of the Expert Commission on the Expert Council for Oil and Gas within the Russian Federation government for the implementation of oil and gas projects * Ruben Karlenovich Vardanian, Chairman of BOD of Troika Dialog Group. * Ilya Arthurovich Yuzhanov, Supervisory Board Chairman of ZAO NOMOS-BANK and member of the Board of Directors of RAO UES of Russia. The Executive Management Board members consist of: * Mark Anthony Gyetvay, Chief Financial Officer of OAO NOVATEK. * Leonid Viktorovich Mikhelson, Chief Executive Officer andChairman of Management Board of NOVATEK. * Alexander Yegorovich Natalenko, Chairman of the Board of Directors OAO NOVATEK. Headquartered in Moscow, OAO Novatek is Russia's second largest gas company after state-controlled Gazprom, and the largest of the country's independent gas producers. * * * As reported in TCR-Europe on March 21, Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to OAO Novatek, Russia's largest independent gas producer. S&P said the outlook is stable. OAO NOVATEK: Shareholders Approve Company's Share Split ------------------------------------------------------- OAO Novatek disclosed that the Annual General Meeting of Shareholders approved the decision to split the Company's ordinary shares. As a result of the share split, one ordinary registered share with a nominal value of one hundred roubles will be converted into 1,000 shares of the same category with a nominal value of ten kopecks subject to retention of the size of the charter capital and scope of rights granted to each shareholder. The AGM underlined that the share split will increase the shares liquidity and convertibility. Headquartered in Moscow, OAO Novatek is Russia's second largest gas company after state-controlled Gazprom, and the largest of the country's independent gas producers. * * * As reported in TCR-Europe on March 21, Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to OAO Novatek, Russia's largest independent gas producer. S&P said the outlook is stable. OAO ROSNEFT: Shareholders Approve Consolidation of Subsidiaries --------------------------------------------------------------- Majority of shareholders voted in favor of the consolidation of OAO Rosneft companies based on the proposed conversion ratios on June 2. According to preliminary tallies, shareholders approve the consolidation of: * Rosneft; * Rosneft-Krasnodarneftegaz; * Rosneft-Purneftegaz; * Rosneft-Sakhalinmorneftegaz; * Rosneft-Stavropolneftegaz; * Yuganskneftegaz; * Severnaya Neft; * Selkupneftegaz; * Rosneft-Komsomolsk Refinery; * Rosneft-Tuapse Refinery; * Rosneft-Arkhangelsknefteprodukt; * Rosneft-Nakhodkanefteprodukt; and * Rosneft-Tuapsenefteprodukt. Approximately 99% of voting shareholders in Rosneft's refinery and retail subsidiaries -- Komsomolsk and Tuapse refineries, Arkhangelsknefteprodukt, Nakhodkanefteprodukt and Tuapsenefteprodukt -- voted for the consolidation with an estimated quorum of 85%. Vote counting in Rosneft's larger exploration and production subsidiaries, some of which have thousands of shareholders, are in process. Preliminary results also indicate the majority of votes are in favor of the proposed consolidation; final results will be announced within 15 days in accordance with Russian legislation. At an additional extraordinary joint general meeting, shareholders of Rosneft and the above subsidiaries also approved amendments and addenda to be introduced to the preamble of the Company's charter, which will make Rosneft the successor of the consolidated subsidiaries. All meetings were conducted through proxy votes. Approval by minority shareholders of Rosneft's proposed restructuring is a key milestone in the process of creating a unified, vertically-integrated oil and gas company of world class standards. The consolidation will result in reduced costs, more efficient management, increased effectiveness of capital investments and better performance from Rosneft in general. A unified Rosneft will allow the Company to move away from intra-group sales and transfer pricing, which will minimize legal, tax and other risks associated with the Company's operations. The consolidation process and resulting simplified corporate structure will also facilitate Rosneft's access to the capital markets, thereby improving the financing terms available to the Company as it continues to invest in its leading development and exploration portfolio. 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. OMZ URALMASH: Inks RUR350-Mln Supply Pact with Rosenergoatom ------------------------------------------------------------ OMZ Uralmash-Izhora Group has reached an agreement to supply new time-saving devices for power units at the Balakovo and Kalinin nuclear power plants. The cost of the contract, for two multiple stud tensioners for the main casing joints, is RUR350 million. The equipment is scheduled for delivery in 2007. The specialized multiple stud tensioners are designed for power unit compression and decompression for refueling or scheduled repair. Use of a multiple stud tensioner can save time by a factor of 70% in comparison with conventional ways of opening and closing a main casing joint. OMZ's NPPEQ division specializes in engineering, production, sales and servicing of equipment for the nuclear energy industry. The division's production facilities are located in St. Petersburg (Izhora plants) and the Czech Republic (Skoda JS). About the Company OMZ (Uralmash-Izhora Group) is one of the largest heavy industry enterprises in Russia. It specializes in engineering, manufacturing, sales and maintenance of plant, equipment and machinery for the nuclear power industry, and also producing special steels and providing industrial services. The company comprises the divisions of OMZ NPPEQ, OMZ- Spetsstal, OMZ-MINEQ and OMZ Uralmash-Promuslugi, located in Russia -- at Uralmash and Izhorskiye Zavody -- and in the Czech Republic -- at Skoda Steel and Skoda JS. * * * As reported in TCR-Europe on Feb. 10, 2006, Standard & Poor's Rating Services placed its 'CCC+' long-term corporate credit and 'ruBB' national scale ratings on Russia-based heavy-engineering holding company OAO OMZ (Uralmash-Izhora Group) on CreditWatch with developing implications. This follows the announced acquisition of more than 75% of the company by a group of investors represented by Gazprombank (BB/Positive/B). "The CreditWatch placement reflects the strong upside potential for OMZ resulting from this change of control," said Standard & Poor's credit analyst Tatiana Kordyukova. "The company's business position might benefit from restructuring efforts and new order inflow if the new shareholders are related to--and their actions coordinated with--the government, as reported." PSEBAYSKOYE: Court Appoints A. Mavrov as Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Krasnodar Region appointed Mr. A. Mavrov as insolvency manager for OJSC Psebayskoye. He can be reached at: A. Mavrov Stasova Str. 180 350075, Krasnodar Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A-32-37006/05-37/489-B). The Debtor can be reached at: OJSC Psebayskoye Psebay, Sovetskaya Str. 276 Mostovskiy Region 353570 Krasnodar Region, Russia YUKOS OIL: V. Grekhov Steps Down as President of Production ----------------------------------------------------------- Yukos Oil Company disclosed the resignation of Victor Grekhov as President of its Exploration Production effective immediately. No replacement for Mr. Grekhov is being announced at this time. The Company dismissed Stanislav Vinokurov's statements that he has taken over Mr. Grekhov's position rejecting Mr. Vinokurov's authority as President of Refining Marketing. "The Company would like to reiterate its statement of May 24 regarding the representations Mr. Vinokurov made about his authority within YUKOS RM," Claire Davidson, spokesperson for YUKOS Oil Company, said. "Mr. Vinokurov has not been legally appointed to any position of authority in YUKOS or in any of its subsidiaries by the legally appointed management of YUKOS Oil Company." Headquartered in Moscow, Russia, Yukos Oil -- http://yukos.com/ -- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days after, the Government sold its main production unit Yugansk, to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, a 14-bank consortium led by Societe Generale filed bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state-owned oil company as plaintiff. On April 13, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06- 10775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. ========= S P A I N ========= RURAL HIPOTECARIO: Fitch Junks EUR11.7 Million Class E Notes ------------------------------------------------------------ Fitch Ratings assigned final ratings to Rural Hipotecario VIII, Fondo de Titulizacion de Activos' residential mortgage-backed floating-rate notes totaling EUR1.31 billion due in January 2044 as: -- EUR97.5 million Class A1: AAA; -- EUR802.4 million Class A2a: AAA; -- EUR350 million Class A2b: AAA; -- EUR27.3 million Class B: A+; -- EUR15.6 million Class C: BBB; -- EUR7.2 million Class D: BB+; and -- EUR11.7 million Class E: CC. This transaction is a cash flow securitization of a EUR1.3 billion static pool of first-ranking residential mortgage loans originated by 19 rural credit cooperatives who will continue to service the mortgages. The ratings are based on the quality of the collateral, available credit enhancement, the legal and financial structure of the deal, the underwriting and servicing of the collateral and the Europea de Titulizacion S.A. S.G.F.T.'s administrative capabilities. The ratings on the Class A to D notes address payment of interest on the notes according to the terms and conditions of the documentation, subject to a deferral trigger on the Class B, C and D notes, as well as the repayment of principal by the legal final maturity for each note. The Class E notes were issued to finance the cash reserve fund. The Class E notes are ultimately likely to default, and their ratings are supported by the expected recovery rate for noteholders, that is, the amounts investors are likely to receive during the life of the transaction. The fund is regulated by Spanish Securitisation Law 19/1992 and Royal Decree 926/1998. Its sole purpose is to transform the mortgage transmission certificates acquired from the sellers into securities. The certificates were subscribed by Europea de Titulizacion S.A. S.G.F.T., whose sole function is to manage asset-backed notes on behalf of the fund. This is the eighth residential mortgage securitization conducted by cajas rurales and the third rated by Fitch. The cajas rurales belong to the Asociacion Espanola de Cajas Rurales, which offers its members a wide range of wholesale and retail banking services through Banco Cooperativo Espanol. Cooperativo acts as the paying agent servicing the notes, the swap counterparty and the treasury account provider. Two of the 19 sellers are rated by Fitch: Caja Rural De Navarra, S.C.C. and Caja Rural Del Mediterraneo, Ruralcaja S.C.C.. ===================== S W I T Z E R L A N D ===================== SWISS REINSURANCE: S&P Rates 10 Senior Debt Classes at B -------------------------------------------------------- Standard & Poor's Ratings Services assigned its senior secured debt ratings to the principal at-risk variable-rate notes issued under Swiss Reinsurance Co.'s (Swiss Re) Successor shelf program. These are the first issuances under the seven newly established USS$1.5 billion principal at-risk variable-rate note programs. The issuers are all special-purpose Cayman Islands-exempted companies whose ordinary shares are held in charitable trust. Within series, they issued various classes of notes and invested the proceeds in high-quality assets within separate collateral accounts for each issuer. The issuers swap the total return of the asset portfolio with Swiss Re Financial Products Corp., in exchange for quarterly LIBOR-based payments. Simultaneous to the issuance of the notes, each issuer entered into an ISDA-based counterparty contract comparable to a retrocession contract with Swiss Re. These contracts will provide Swiss Re with a source of protection for hurricanes in the North Atlantic, windstorms in Europe, and earthquakes in California and/or Japan on a per- occurrence basis over a period of up to two years. The payments received from Swiss Re under the counterparty contracts and the proceeds from the total return swap with Swiss Re Financial Products are used to make the scheduled interest payments to the holders of the various classes. Swiss Re will pay the issuers' up-front and ongoing expenses in connection with the security issuances. EQECAT Inc.'s proprietary models were used to determine the probability of attachment of each class within a series of notes. EQECAT will use information supplied by the designated reporting agencies to calculate a loss index (in the case of Successor Hurricane Industry Ltd., Successor Euro Wind Ltd., and Successor Cal Quake Parametric Ltd.) or to model the losses to the corresponding notional portfolios (in the case of Successor Hurricane Modeled Ltd. and Successor Japan Quake Ltd.) following the occurrence of these natural catastrophes. The index or the modeled loss amount is used to determine whether or not a principal loss to the noteholders of that class of notes has occurred, and the amount of the loss. If a loss has occurred, assets in the collateral account are sold to fund the loss payment to Swiss Re, and the principal amount of the notes is reduced. The loss payments to Swiss Re will not necessarily bear any direct or indirect correlation to any loss actually incurred by Swiss Re. A significant part of the rating analysis took account of an assessment of the occurrence probabilities of the covered natural perils as modeled by EQECAT. Further, the ratings on the classes of notes are based on the creditworthiness of Swiss Re (long-term AA/Watch Neg; short-term A-1+) as payer of its obligations under the counterparty contracts and as guarantor of Swiss Re Financial Products, the counterparty for all total return swap contracts. For the U.S. hurricane peril, EQECAT provided two measures of the probability of attachment: a near-term analysis and a long- term analysis. Standard & Poor's gave greater weight to the near-term analysis when assigning the rating on the notes in line with our newly published criteria (see "Standard & Poor's Updates U.S. Hurricane Catastrophe Bond Ratings Criteria", published on June 2 on RatingsDirect, at www.ratingsdirect.com). In general, noteholders lose money once the loss amount or the index value reaches or exceeds a predefined level, the attachment point. However, the class F notes issued by Successor Hurricane Industry have been structured as a "knock- out" tranche. The holders of this class incur a loss only if the ultimate index value calculated by EQECAT remains between the attachment and a predefined upper limit, the exhaustion point. They do not incur a loss if the index value exceeds this exhaustion point. This is the first time Standard & Poor's has observed this mechanism in relation to the issuance of principal at-risk notes. In addition, losses under the notes issued by Successor Hurricane Industry depend on industry losses published by Property Claims Services (PCS). If the PCS industry losses figures are reduced between payment dates, Swiss Re would be obliged to pay back parts of the loss payment already received from Successor Hurricane Industry. For the class F notes, this could result in a total repayment of principal by Swiss Re once the index value exceeds the exhaustion point for this class of notes. Swiss Re has the option to extend the maturity of each class of notes by four months. In addition, it is able to extend the maturity of the notes issued by Successor Hurricane Industry by up to 24 months to allow for the PCS industry losses to develop following a North Atlantic hurricane. During the extension periods, noteholders receive a lower coupon rate because the occurrence of any additional events during this time does not have any effect on the loss of principal. Ratings List Transaction Series Amount Class Rating (Mil. US$) Maturity ------ ------ ---------- -------- Successor Hurricane Industry Ltd. US$119.5 Million Principal at-Risk Variable-Rate Notes Series 1 And 2 Series 1 Class B BB- 14.00 Dec. 6, 2007 Class C B 7.25 Dec. 6, 2007 Class D B 34.25 Dec. 6, 2007 Class F B 54.00 Dec. 6, 2007 Series 2 Class D B 10.25 June 6, 2007 Successor Hurricane Modeled Ltd. US$42.25 Million Principal at-Risk Variable-Rate Notes Series 1 Series 1 Class B BB- 42.25 Dec. 6, 2007 Successor Cal Quake Parametric Ltd. US$47.50 Million Principal at-Risk Variable-Rate Notes Series 1 Series 1 Class A BB 47.50 June 6, 2008 Successor Japan Quake Ltd. US$203.47 Million Principal at-Risk Variable-Rate Notes Series 1 And 2 Series 1 Class A BB 103.47 June 6, 2008 Class B BB- 26.25 June 6, 2008 Class C B 70.75 June 6, 2008 Series 2 Class C B 3.00 June 6, 2007 Successor Euro Wind Ltd. US$232.38 Million Principal at-Risk Variable-Rate Notes Series 1 And 2 Series 1 Class A BB 97.13 June 6, 2008 Class B BB- 18.50 June 6, 2008 Class C B 110.75 June 6, 2008 Series 2 Class A BB 3.00 June 6, 2007 Class C B 3.00 June 6, 2007 Successor II Ltd. US$73.20 Million Principal at-Risk Variable-Rate Notes Series 1 Series 1 Class A B 73.20 June 6, 2008 Successor IV Ltd. US$30.00 Million Principal at-Risk Variable-Rate Notes Series 1 Series 1 Class A B 30.00 June 6, 2008 ============= U K R A I N E ============= AGROPROMBUD: Chernigiv Court Begins Bankruptcy Supervision ---------------------------------------------------------------- The Economic Court of Chernigiv Region commenced bankruptcy supervision procedure on CJSC Agroprombud (code EDRPOU 03588301) on March 17. The case is docketed under Case No. 9/128 B. The Temporary Insolvency Manager is: Vladislav Reshetnyak a/b V-523 01001 Kyiv Region, Ukraine The Economic Court of Chernigiv Region is located at: Miru Avenue 20 14000 Chernigiv Region, Ukraine The Debtor can be reached at: CJSC Agroprombud Parizkoyi komuni Str. 33 Borzna 16400 Chernigiv Region, Ukraine CHERNIVTSI' SUGAR: Court Names S. Ivanov as Insolvency Manager -------------------------------------------------------------- The Economic Court of Chernivtsi Region appointed Mr. S. Ivanov as Liquidator/Insolvency Manager for OJSC Chernivtsi' Sugar Plant (code EDRPOU 00373117). He can be reached at: S. Ivanov Charles Darwin Str. 19/15 Chernivtsi Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 4. The case is docketed under Case No. 5/161/b. The Economic Court of Chernivtsi Region is located at: O. Kobilyanska Str. 14 58000 Chernivtsi Region, Ukraine The Debtor can be reached at: OJSC Chernivtsi' Sugar Plant Hotinska Str. 4 Chernivtsi Region, Ukraine DONSNAB-HARKIV: Court Names O. Trizna to Manage Assets ------------------------------------------------------ The Economic Court of Harkiv Region appointed Mr. O. Trizna as Liquidator/Insolvency Manager for LLC Donsnab-Harkiv (code EDRPOU 32357729). The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 5. The case is docketed under Case No. B-19/34-06. The Economic Court of Harkiv Region is located at: Derzhprom 8th Entrance Svobodi Square 5 61022 Harkiv Region, Ukraine The Debtor can be reached at: LLC Donsnab-Harkiv Solonitsivka Harkiv Region, Ukraine KREDO: Court Names Yaroslav Derevyanchenko as Liquidator -------------------------------------------------------- The Economic Court of Donetsk Region appointed Yaroslav Derevyanchenko as Liquidator/Insolvency Manager for LLC KREDO (code EDRPOU 31178037). He can be reached at: Yaroslav Derevyanchenko SRSR Str. 139/6 50-Richya 83100 Donetsk Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 10. The case is docketed under Case No. 27/45 B. The Economic Court of Donetsk Region is located at: Artema Str. 157 83048 Donetsk Region, Ukraine The Debtor can be reached at: LLC Kredo Tkachenko Str. 115 83062 Donetsk Region, Ukraine NAFTOGAZTRADE: Court Names Vadim Hristenko to Manage Assets ----------------------------------------------------------- The Economic Court of Kirovograd Region appointed Vadim Hristenko as Liquidator/Insolvency Manager for LLC Naftogaztrade (code EDRPOU 31200067). He can be reached at: Stalingradu Str. 4/9 Geroiv 25028 Kirovograd Region, Ukraine Tel: 8 (0522) 22-75-86 The Court commenced bankruptcy proceedings at the company after finding it insolvent on March 14. The case is docketed under Case No. 9/187. The Economic Court of Kirovograd Region is located at: Lunacharski Str. 29 Kirovograd Region, Ukraine The Debtor can be reached at: LLC Naftogaztrade Lipnyazhka Dobrovelikivskij District 27015 Kirovograd Region, Ukraine SAGAJDAK' BREAD: Court Names Y. Ovsij to Liquidate Assets --------------------------------------------------------- The Economic Court of Poltava Region appointed Mr. Y. Ovsij as Liquidator/Insolvency Manager for OJSC Sagajdak' Bread Receiving Enterprise (code EDRPOU 00955503). The Court commenced bankruptcy proceedings at the company after finding it insolvent on March 28. The case is docketed under Case No. 10/88. The Economic Court of Poltava Region is located at: Zigina Str. 1 36000 Poltava Region, Ukraine The Debtor can be reached at: OJSC Sagajdak' Bread Receiving Enterprise Fedorenko Str. 94 Sagajdak Shishatskij District 38033 Poltava Region, Ukraine SAPSAN: Zaporizhya Court Starts Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Zaporizhya Region commenced bankruptcy supervision procedure on LLC Sapsan (code EDRPOU 25481242). The case is docketed under Case No. 02-7/2517-25/66/06. The Temporary Insolvency Manager is: D. Gerashenko a/b 7611 69002 Zaporizhya Region, Ukraine The Economic Court of Zaporizhya Region is located at: Shaumyana Str. 4 69001 Zaporizhya Region, Ukraine The Debtor can be reached at: LLC Sapsan Perspektivna Str. 1 69106 Zaporizhya Region, Ukraine SLOVYANI-PLUS: Court Names Vadim Hristenko as Liquidator -------------------------------------------------------- The Economic Court of Kirovograd Region appointed Vadim Hristenko as Liquidator/Insolvency Manager for LLC Slovyani-Plus (code EDRPOU 23224162). He can be reached at: Vadim Hristenko Geroiv Stalingradu Str. 4/9 Tel: 8 (0522) 22-75-86 25028 Kirovograd Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on March 22. The case is docketed under Case No. 10/18. The Economic Court of Kirovograd Region is located at: Lunacharski Str. 29 Kirovograd Region, Ukraine The Debtor can be reached at: LLC Slovyani-Plus Moshena Gayvoronskij District 26314 Kirovograd Region, Ukraine =========================== U N I T E D K I N G D O M =========================== CABLE & WIRELESS: Employee Share Trustees Sell 118,379 Shares ------------------------------------------------------------- The Trustees of Cable and Wireless PLC Employee Share Ownership Trust disposed of 5,309 Ordinary Shares at a price of GBP1.045 per share on June 2. On June 5, the Trust disposed of 113,070 Ordinary Shares at a price of GBP1.0425 per share. Following the disposals, 50,689,699 Ordinary Shares are held under the Trust. Rob Rowley, George Battersby, Tony Rice, John Pluthero, and Harris Jones (all being directors of Cable and Wireless plc), in their capacity as members of the class of beneficiaries under the Trust and Towers Perrin Share Plan Services (GSY) Limited in their capacity as Trustees of the Trust, are deemed to have a non-beneficial interest in these Ordinary Shares. No Directors are disposing of any beneficial interests in the Company. Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. Fitch Ratings has affirmed Cable & Wireless' ratings at Long- term 'BB+' with Stable Outlook and Short-term 'B'. * * * As reported in the Troubled Company Reporter-Europe on March 3, Standard & Poor's Ratings Services said that the ratings and outlook on U.K.-based telecommunications operator Cable & Wireless PLC (C&W; BB-/Negative/B) were unchanged following the group's presentation of plans for further restructuring and refocusing of its U.K. business. C&W is replicating the broadly successful business model of Energis, the U.K. telecoms services company that it acquired in November 2005. It has announced a withdrawal from the low- margin U.K. small-to-midsized business market and a focus on large U.K. corporate customers. Given this streamlining of the customer and product base, employee numbers could reduce by up to 3,000, resulting in additional headcount reduction and lease exit costs. The group is to continue investing in Bulldog, its early stage, and largely residential, local-loop-access operation. AMB ELECTRICAL: Appoints Administrators from Gerald Edelman ----------------------------------------------------------- B. Hoffman and I. D. Yerrill of Gerald Edelman Business Recovery were appointed joint administrators of AMB Electrical Engineering Limited (Company Number 04848338) on May 18. Gerald Edelman -- http://www.geraldedelman.com/-- is registered to carry on audit work by the Institute of Chartered Accountants in England and Wales and is authorized and regulated by the Financial Services Authority. Headquartered in Goole, United Kingdom, AMB Electrical Engineering Limited installs electrical wiring. COLLECTIBLE WORLD: NatWest Taps Begbies Traynor as Receivers ------------------------------------------------------------ National Westminster Bank PLC appointed Paul Stanley and Gary Lee of Begbies Traynor joint administrative receivers of Collectible World Studios Ltd. (Company Number 02125762) on May 18. 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 Stoke-On-Trent, United Kingdom, Collectible World Studios Ltd manufactures, wholesales and retails hand- painted figurines. DEW CONSTRUCTION: Lloyds TSB Names Receivers from Ernst & Young --------------------------------------------------------------- Lloyds TSB Bank PLC appointed Robert Hunter Kelly and Charles Graham John King of Ernst & Young LLP joint administrative receivers of Dew Construction Limited (Company Number 00286875) on May 17. Ernst & Young -- http://www.ey.com/-- is a global organization help companies in businesses across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. Dew Construction Limited can be reached at: Brook Farm Westerleigh Bristol BS37 8QH United Kingdom Tel: 01454 311 111 EIRCOM GROUP: Credit Suisse Holds 6.98% Equity Stake ---------------------------------------------------- Credit Suisse companies acquired on June 1 these interests in the issued share capital of eircom Group Plc: -- Credit Suisse Securities (Europe) Limited: 74,463,103 shares. CSSEL held an interest in 794,495 of these shares under section 208 of the act by virtue of the right to redelivery of equivalent securities under stock lending arrangements; and -- Credit Suisse International: 470,650 shares. The CS companies now hold a total interest of 74,933,753 shares being equivalent to approximately 6.98% of the issued share capital of the Company. Headquartered in Dublin, Ireland, eircom Group plc -- http://eircom.net/-- is the principal provider of fixed-line telecommunications services in Ireland, as well as the leading Internet service provider and, following its acquisition of Meteor, the third largest mobile operator in Ireland. * * * As reported in the Troubled Company Reporter on March 3, Moody's Investors Service has assigned a Ba2 corporate family rating to eircom Group plc (eircom). Concurrently Moody's changed the rating outlook to negative from stable. EUROTUNNEL GROUP: Rebel Shareholder to Consider Other Plans ----------------------------------------------------------- Eurotunnel Group shareholder activist Nicolas Miguet said he wants to look at all alternative debt-reduction proposals before agreeing to a management-backed rescue plan, Bloomberg News relates. "If there are two plans, I'll judge between both of them," Mr. Miguet told Bloomberg. "If there are three, I'll choose between three. If there's only one, which is currently the case, my position hasn't changed." As previously reported in TCR-Europe, the Group confirmed on June 4 that it did not officially receive or contact any alternative restructuring plan from any other financial institution to date. The binding agreement Eurotunnel signed with the Ad Hoc Committee on May 23 and financed by the consortium, Goldman Sachs, Barclays and Macquarie, envisages a reduction of the initial debt, reducing it from GBP6.2 billion to GBP2.9 billion. The Group stressed that any alternative solution should, in terms of debt write off, have at least the same ambition. The Agreement preserves, as far as possible, the interests of all the parties involved. It is being presented to the other debt holders and will be presented to Eurotunnel shareholders at the next General Meeting scheduled for July 12. About the Company 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. * * * Eurotunnel's crisis began when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. The Iraq war followed, which didn't help as tourist traffic fell. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors, and Dresdner Kleinwort Wasserstein as restructuring adviser. In July 2004, auditor KPMG Audit Plc said the company faces uncertainty after 2005. The firm's survival is dependent upon its ability to put in place a refinancing plan or, if not, to obtain an agreement with the lenders under the existing Credit Agreement within the next two years, the auditor said. Eurotunnel needs to obtain approval from other creditors and shareholders for a final agreement. Absent a final agreement, the Group may default in January 2007. On April 26, Eurotunnel obtained a third extension of its credit waiver, which calls for creditor talks to continue through July 12. HILLSMEN ENGINEERING: Brings In Jacksons Jolliffe as Liquidators ---------------------------------------------------------------- Matthew Colin Bowker and David Antony Willis, of Jacksons Jolliffe Cork, were appointed Joint Liquidators of Hillsmen Engineering Limited after creditors agreed to wind up the company's operations during an extraordinary general meeting on March 24. Headquartered in Hull, England, Hillsmen Engineering Limited -- http://www.hillsmen.com.co.uk/-- manufactures and supplies quality bottle cleaning equipment to customers throughout the UK and worldwide. HORCA GRIFFIN: Brings In Portland Business to Administer Assets --------------------------------------------------------------- Carl Derek Faulds and James Richard Tickell of Portland Business & Financial Solutions Ltd were appointed joint administrators of Horca Griffin Engineering Limited (Company Number 4514278) on May 22. The administrators can be contacted at: Portland Business & Financial Solutions Ltd 1640 Parkway Solent Business Park Whiteley Fareham Hampshire PO15 7AH United Kingdom Tel: 01489 550 440 E-mails: carl.faulds@portland-solutions.co.uk james.tickell@portland-solutions.co.uk Horca Griffin Engineering Limited can be reached at: Unit 3 Copnor Bridge Business Center Portsmouth PO3 6AP United Kingdom Tel: 023 9283 2840 JAMUNA RESTAURANT: Creditors Pass Winding Up Resolution ------------------------------------------------------- Creditors of Jamuna Restaurant Limited passed a resolution to wind up the company's operations during an extraordinary general meeting on March 30. Subsequently, Andreas Georgiou Kakouris was appointed Liquidator. Headquartered in London, England, Jamuna Restaurant Limited -- http://www.jamuna.co.uk/-- offers many authentic Indian recipes dishes with an innovative twist. LANSDOWNE CONSTRUCTION: Names Simon James Bonney Liquidator ----------------------------------------------------------- Lansdowne Construction Limited is liquidating its assets after creditors decided to wind up the company on March 28. Simon James Bonney, of B.N. Jackson Norton, was appointed Liquidator. The company can be reached at: Lansdowne Construction Limited 217 Great Brickkiln Street Wolverhampton WV3 0PN United Kingdom Tel: 01902 311 966 LASTING IMPRESSIONS: Appoints Joint Administrators from Menzies --------------------------------------------------------------- Paul John Clark and Jason James Godefroy of Menzies Corporate Restructuring were appointed joint administrators of Lasting Impressions Limited (Company Number 01439899) on May 19. Headquartered in London, Menzies Corporate Restructuring -- http://www.menzies.co.uk/-- is a member of Moores Rowland International, an association of independent accounting firms throughout the world with some 20,800 partners and staff, operating from 628 offices in 92 countries. MRI, which is ranked 8th amongst the leading international accounting associations, achieved global revenues of US$1,800 million in 2003. Lasting Impressions Limited can be reached at: Gresham Way Ind Est Gresham Way London SW19 8ED Tel: 020 8944 0808 Fax: 020 8944 2881 MISYS PLC: Transfers 7,841 Shares to Scheme Participants -------------------------------------------------------- Misys plc transferred 7,841 ordinary shares on June 6 to participants in its employee share schemes at prices between 140 pence and 189 pence per share. The shares were all formerly held as treasury shares. Following the transfer of shares out of Treasury, Misys plc olds a total of 52,385,595 ordinary shares in Treasury. The total number of ordinary shares in issue, excluding Treasury shares, is 499,341,441. 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. N. TAYLOR: Brings In Creswall Associates as Administrators ---------------------------------------------------------- Gordon Craig and Daniel Paul Hennessy of Cresswall Associates Limited were appointed joint administrators of N. Taylor & Sons (Contractors) Limited (Company Number 0687640) on May 8. The administrators can be reached at: Cresswall Associates Limited West Lancashire Investment Centre Maple View Whitemoss Business Park Skelmersdale Lancashire WN8 9TG United Kingdom Tel: 01695 712683 Headquartered in Preston, United Kingdom, N. Taylor & Sons Limited is engaged in general construction and civil engineering. PEBBLESTONE LIMITED: Appoints Joint Administrators from Deloitte ---------------------------------------------------------------- Andrew Philip Peters and Christopher James Farrington of Deloitte & Touche LLP were appointed joint administrators of Pebblestone (Leicester) Limited (Company Number 5393974) on May 15. 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 Leicester, United Kingdom, Pebblestone Limited manufactures textiles. POLESTAR CORP.: S&P Withdraws B- Corp. Credit and Debt Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B-' long-term corporate credit rating on U.K.-based printer The Polestar Corp. PLC and its 'B-' senior secured debt ratings on related entity The Polestar Group Ltd. The rating withdrawal is at Polestar's request, as management considers that the ratings are no longer required. At the time of withdrawal, the ratings were on CreditWatch with negative implications, where they had been placed on May 9. The CreditWatch placement reflected our concerns about the group's diminishing liquidity position, weak cash flow generation, and very high financial leverage. Polestar is heavily reliant on the successful refinancing of its debt facilities over the next six-nine months and continued support from its major shareholder, Investcorp S.A., to alleviate near- term liquidity pressure on the group. At the time of withdrawal, Polestar's credit quality was estimated to be in the 'CCC' rating category. PROPERO LIMITED: Taps Smith & Williamson to Administer Assets ------------------------------------------------------------- Stephen Cork and Joanne Milner of Smith & Williamson Limited were appointed joint administrators of Propero Limited (Company Number 03987844) on May 17. The administrators can be reached at: Smith & Williamson Limited 25 Moorgate London EC2R 6AY United Kingdom Tel: 020 7637 5377 Fax: 020 7631 0741 Headquartered in London, Propero -- http://www.propero.net/-- is a leading provider of user virtualization software. Propero's workSpace Platform helps customers reduce the cost and complexity of maintaining IT infrastructure while enabling greater flexibility for the business. RANK GROUP: Cancels Another 1,000,000 Shares in Buyback Program --------------------------------------------------------------- The Rank Group Plc bought back 1,000,000 ordinary shares of 10 pence in the Company on June 6 for cancellation at an average price of 204.78125 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. RDL LIMITED: Appoints Administrators from Moore Stephens -------------------------------------------------------- Mark Elijah Thomas Bowen and Nigel Price of Moore Stephens LLP were appointed joint administrators of RDL (U.K.) Limited (Company Number 05450876) on May 18. Moore Stephens -- http://www.moorestephens.co.uk/-- offers audit, business support, corporate finance, corporate recovery, dispute analysis, financial services, insurance broking, IT consultancy, pensions audit, risk advisory services, tax and trusts & estates services. Its UK network comprises over 1,400 partners and staff. Headquartered in Devon, United Kingdom, RDL (U.K.) Limited retails electrical goods. RELIEF DRIVER: Names Peter Alan Langard as Administrator -------------------------------------------------------- Peter Alan Langard of Langard Lifford Hall was appointed administrator of Relief Driver Services Limited (Company Number 2332168) on May 10. Langard Lifford Hall -- http://www.liffordhall.co.uk/-- is a firm of accountants, established in 1964, which has grown to its present size through its ability to provide clients with the personal, professional service that they require. Headquartered in Wolverhampton, United Kingdom, Relief Driver Services Limited is engaged in recruitment agency and transport services. RITI PERFORMANCE: Taps Keith Aleric Stevens to Liquidate Assets --------------------------------------------------------------- Keith Aleric Stevens, of Wilkins Kennedy was appointed Liquidator of RITI Performance Engineering Limited after creditors passed a resolution to wind up the company on March 28. The company can be reached at: RITI Performance Engineering Limited Unit D Leatherhead road Barwell Business Park Chessington Surrey KT9 2NY United Kingdom Tel: 020 8391 3391 SOLITAIRE WINDOW: Financial Woes Trigger Liquidation ---------------------------------------------------- Solitaire Window Systems Limited is winding up its operations after creditors established the company could no longer continue its business due to mounting debts. Nigel Alexander Spearing, of Spearing Insolvency, was appointed Liquidator. Solitaire Window Systems Limited offers PVC double glazing services. The company can be reached at: Solitaire Window Systems Limited 103A New Road Rubery Birmingham B45 9JR United Kingdom Tel: 0121 457 7286 Fax: 0121 605 2211 Web: http://www.solitairewindows.co.uk/ SOUTHERN CLADDING: Brings In Liquidator from Fisher Partners ------------------------------------------------------------ Stephen M. Katz, of Fisher Partners, was appointed Liquidator of Southern Cladding Limited after creditors moved to liquidate the company's assets during an extraordinary general meeting on March 27. The company can be reached at: Southern Cladding Limited 6 The Court Yard Holding Street Rainham Gillingham Kent ME8 7HE United Kingdom Tel: 01233 638 401 T D C MOTORS: Creditors Confirm Voluntary Liquidation ----------------------------------------------------- Creditors of T D C Motor Factors Limited confirmed the company's voluntary liquidation during an extraordinary general meeting on March 27. Creditors also ratified the appointment of I.P. Sykes, of Begbies Traynor, as Liquidator. The company can be reached at: T D C Motor Factors Limited 212 Hunts Pond Road Fareham Hampshire PO144PG United Kingdom Tel: 01489 581 718 Fax: 01489 581 405 TONI & GUY: Hires Joint Liquidators from David Rubin & Partners --------------------------------------------------------------- Paul Appleton and Asher Miller, of David Rubin & Partners, were appointed Joint Liquidators of Toni & Guy (Darlington) Limited after creditors resolved to wind up the company during an extraordinary general meeting on March 27. The company can be reached at: Toni & Guy (Darlington) Limited 15-16 High Row Darlington County Durham DL3 7QQ United Kingdom Tel: 01325 480 048 Web: http://www.toniandguy.com/ TRUSTED SERVICES: Hires Liquidator from Vantis Numerica LLP ----------------------------------------------------------- Creditors of Trusted Services Limited agreed to wind up the company's operations during an extraordinary general meeting on March 29. Alan Roderick Thompson, of Vantis Numerica LLP, was appointed Liquidator. The company can be reached at: Trusted Services Limited 4 Crich Circle Littleover Derby DE236DS United Kingdom Tel: 01332 733 348 * Competition Commission Welcomes Peter Davis as Deputy Chairman ---------------------------------------------------------------- Peter Freeman, Chairman of the Competition Commission, has welcomed the appointment of Peter Davis as its new Deputy Chairman of the CC. The appointment was announced on Tuesday, June 6, by Minister of State for Trade, Investment and Foreign Affairs, Ian McCartney. "There were several strong candidates for this post but I am delighted that we have been able to attract such an able economist to complete our senior team," Mr. Freeman said. "Peter Davis will be a great asset to the CC." Dr. Davis is a lecturer in economics at the London School of Economics and has been a Member of the CC's Academic Panel since 2004. He is also co-director of the Economics of Industry Program at the Suntory Toyota International Centre for Research in Economics at the LSE. Dr. Davis will join the CC in September and become a member of the CC Council. His appointment means that the CC will have a full complement of deputy chairmen, joining Diana Guy and Christopher Clarke, who were appointed in 2004. The Competition Commission is an independent public body established by the Competition Act 1998. It conducts in-depth inquiries into mergers, markets and the regulation of the major regulated industries. Every inquiry is undertaken in response to a reference made to it by another authority: usually by the Office of Fair Trading but in certain circumstances the Secretary of State, or by the regulators under sector-specific legislative provisions relating to regulated industries. The Commission has no power to conduct inquiries on its own initiative. ********* 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, Julybien Atadero, Carmel Paderog, and Joy Agravante, Editors. Copyright 2006. All rights reserved. ISSN 1529-2754. 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