/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/060609.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 Friday, June 9, 2006, Vol. 7, No. 114 Headlines A U S T R I A ADESSI: Awaits Court's Decision on Property Manager's Claim ASTENIK: First Creditors' Meeting Slated for June 22 BAYRAMOGLU: Korneuburg Court Opens Bankruptcy Proceedings FEIMANN: Claims Registration Ends June 28 FEIMANN ALEXANDER: Claims Filing Period Ends June 28 ING. HELMUT: Claims Filing Period Ends June 26 INTERNATIONAL LTD: Claims Filing Period Ends June 26 KA-RA SCHILDNER: Claims Filing Period Ends June 19 TK-LEASING: Court Closes Bankruptcy Case After Claims Payment UNTERNEHMENSBERATUNG CAREER: Claims Filing Period Ends June 15 F R A N C E BANQUE AGF: Fitch Affirms Individual Rating at C/D G E R M A N Y BONA BAUTRAGER: Claims Filing Period Ends June 26 CONVERT PAPIER: Claims Registration Ends June 28 FANTASIA IMMOBILIENGESELLSCHAFT: Sets June 28 Claims Bar Date J + N METALLBAU: Claims Registration Ends June 26 METALLBAU HORST: Claims Filing Period Ends June 28 SCHLOSSEREI & METALLBAU: Claims Registration Ends June 27 SCHMIDT & PETERS: Claims Filing Period Ends June 30 SSB BAUTRAGER: Claims Registration Ends June 27 TUI AG: Moody' Changes Ba2 Rating Outlook to Negative VEREINS SOZIALARBEIT: Claims Filing Period Ends June 26 W. GERLING: Claims Filing Period Ends June 27 I T A L Y FIAT SPA: Considers Sale of 51% Equity Stake in Fidis Retail FIAT SPA: Plans to Purchase Back Mediobanca's Stake on Ferrari TK ALUMINUM: Moody's Junks Corporate Family Rating K A Z A K H S T A N AKFARM: Creditors Must File Claims by June 20 BIS-TARAZ: Creditors Must File Claims by June 20 CENTRAL ASIA: Creditors' Claims Due June 20 INDUSTRIALNYI PARK: Creditors' Claims Due June 20 JASYL: Claims Registration Ends June 20 NEON-TREID: Claims Registration Ends June 19 NSK: Proof of Claim Deadline Slated for June 20 PENAT: Proof of Claim Deadline Slated for June 19 PLANTA: Pavlodar Court Sets June 19 Claims Bar Date RAYHAN: Jambyl Court Sets June 20 Claims Bar Date L U X E M B O U R G TEKSID ALUMINUM: Moody's Cuts Senior Unsecured Rating to Caa3 N E T H E R L A N D S HARBOURMASTER PRO-RATA: Fitch Rates EUR26 Million Notes at BB N O R W A Y FALCONBRIDGE LTD: Selling Assets to LionOre for US$650 Million R O M A N I A CFR MARFA: Moody's Affirms Ba2 Senior Unsecured Rating COMPANIA NATIONALA: Moody's Places Ba2 Rating Under Review TRANSELECTRICA SA: Moody's May Downgrade Ba1 Corp. Family Rating R U S S I A BRYANSK-OBL-GRAZHDAN-STROY: N. Shirokov to Manage Assets BUILDER: Court Names Y. Chernikova as Insolvency Manager NARTKALINSKIY SPIRIT: S. Martynova Acts as Insolvency Manager OAO ROSNEFT: Yukos Holds 9.7% Stake After Yugansk Consolidation REINFORCED-CONCRETE 25: Bankruptcy Hearing Slated for July 12 ROVENKI-AGRO-PROM-KHIMIYA: I. Shteynikov to Manage Assets RUBY: Kaluga Court Appoints S. Smorgachev as Insolvency Manager SARAPULSKIY TANNERY: Court Commences Bankruptcy Supervision YUKOS OIL: Holding Talks Next Week Over Transpetrol Equity Sale YUKOS OIL: Holds 9.7% in Rosneft After Yugansk Consolidation U K R A I N E AGROMIST: Kyiv Court Starts Bankruptcy Supervision AUTOSERVICE: Volinska Court Opens Bankruptcy Proceedings BUDMETAL: Court Names Mihajlo Mitsak as Insolvency Manager INTERAGROSERVICE: Court Starts Bankruptcy Supervision INTERINVEST LIMITED: Court Taps Aviation Solution as Liquidator INVEST-UKR: Court Appoints T. Tarasenko as Insolvency Manager KUPYANSK' HEAT: Harkiv Court Opens Bankruptcy Proceedings SILGOSPPRODUKT: Court Appoints O. Novikov as Liquidator SLAVUTICH: Court Names O. Novikov to Manage Assets U N I T E D K I N G D O M 3MB DEVELOPMENTS: Names David N. Kaye Administrator ALFRED DEARNLEY: Creditors Pass Winding Up Resolution BAA PLC: Moody's Downgrades GBP1.049 Billion Debt Ratings at Ba1 CORTECS PHARMACEUTICAL: Appoints Peter W. Engel as Liquidator CWE DEVEOPMENTS: Brings In PwC as Joint Liquidators CWE MANAGEMENT: Begins Liquidation Proceedings DEW PITCHMASTIC: Lloyds TSB Appoints Ernst & Young as Receivers DEW REMEDIATION: Appoints Ernst & Young as Administrators EZALGAVON LIMITED: Hires Joint Administrators from P&A GPS LOGISTICS: Creditors Resolve to Liquidation INCO LTD: Selling Falconbridge Assets to LionOre for US$650 Mln INDIGO ESTATES: Claims Filing Period Ends June 30 J & J FLOORINGS: Names Peter John Godfrey-Evans Liquidator KAVANAGH HOLDINGS: Taps Freddy Khalastchi to Liquidate Assets LUCITE INTERNATIONAL: S&P Places BB Rating on Watch Negative MALLARDS RETIREMENT: Brings In Liquidator from Gallaghers MEADOWS OF CANTERBURY: Financial Woes Trigger Liquidation NEWGATE FUNDING: Fitch Rates on GBP2.3 Mln Class E Notes at BB RAMENCO LIMITED: Brings In Joint Administrators from DTE SIGHT & SOUND: Taps Gerald Edelman to Administer Assets T & T THOMPSON: Appoints Begbies Traynor as Administrators THAMES LABORATORIES: Halts Operations & Appoints Liquidator WETHERIGGS COUNTRY: NatWest Bank Appoints Begbies as Receivers * Fitch Notes Rise on Delinquency Index in European Auto ABS ********* ============= A U S T R I A ============= ADESSI: Awaits Court's Decision on Property Manager's Claim ----------------------------------------------------------- Martina Simlinger-Haas, the court-appointed property manager for Trade LLC ADESSI (FN 247222m), declared on May 5 that the Debtor does not have enough assets to pay off creditors. The Trade Court of Vienna is yet to rule on the property manager's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on March 24 (Bankr. Case No. 3 S 50/06g). ASTENIK: First Creditors' Meeting Slated for June 22 ---------------------------------------------------- Creditors owed money by LLC Astenik (FN 253066g) are encouraged to attend the creditors' meeting at 2:15 p.m. on June 22 to consider the revision of the rule by adoption and accountability. The first creditors' meeting will be held at: Land Court of Graz Hall L, Room 230 2nd Floor Graz, Austria Court-appointed property manager Hans Georg Popp declared on May 5 that the Debtor's assets is insufficient to pay off creditors. The Land Court of Graz is yet to rule on the property manager's claim. Headquartered in Gratkorn, Austria, the Debtor declared bankruptcy on April 12 (Bankr. Case No. 40 S 19/06a). BAYRAMOGLU: Korneuburg Court Opens Bankruptcy Proceedings --------------------------------------------------------- The Land Court of Korneuburg opened bankruptcy proceedings against KEG Bayramoglu (FN 259372f) on May 4 under Bankruptcy Case No. 35 Se 111/06t. The Debtor can be reached at: KEG Bayramoglu Main Street 30 2452 Mannersdorf Leithagebirge, Austria FEIMANN: Claims Registration Ends June 28 ----------------------------------------- Creditors owed money by LLC Feimann (FN 106141s) have until June 28 to submit written proofs of claim to court-appointed property manager Helmut Platzgummer at: Helmut Platzgummer ??hlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Fax: 533 19 39 39 E-Mail: helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 12 to consider the revision of the rule by adoption and accountability. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 5 (Bankr. Case No. 4 S 73/06x). Wolfgang Leitne represents Mr. Platzgummer in the bankruptcy proceedings. FEIMANN ALEXANDER: Claims Filing Period Ends June 28 ---------------------------------------------------- Creditors owed money by KEG Feimann Alexander (FN 7579x) have until June 28 to submit written proofs of claim to court- appointed property manager Helmut Platzgummer at: Helmut Platzgummer ??hlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Fax: 533 19 39 39 E-Mail: helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 12 to consider the revision of the rule by adoption and accountability. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 5 (Bankr. Case No. 4 S 71/06b). Wolfgang Leitne represents Mr. Platzgummer in the bankruptcy proceedings. ING. HELMUT: Claims Filing Period Ends June 26 ---------------------------------------------- Creditors owed money by LLC Ing. Helmut Obritzberger (FN 89220s) have until June 26 to submit written proofs of claim to court- appointed property manager Wolfgang Winiwarter at: Wolfgang Winiwarter Utzstrasse 9 3500 Krems an der Donau Austria Tel: 02732/83234 Fax: 02732/74153 E-Mail: office@winiwarter.at Creditors and other interested parties are encouraged to attend the first creditors' meeting at 10:30 a.m. on July 12 to consider the revision of the rule by adoption and accountability. The first meeting of creditors will be held at: Land Court of Krems an der Donau Hall A, 2nd Floor 3500 Krems an der Donau Austria Headquartered in Langenlois, Austria, the Debtor declared bankruptcy on May 5 (Bankr. Case No. 9 S 24/06m). INTERNATIONAL LTD: Claims Filing Period Ends June 26 ---------------------------------------------------- Creditors owed money by HCL International Ltd (FN 235772z) have until June 26 to submit written proofs of claim to court- appointed property manager Thomas Peter Payer at: Thomas Peter Payer Paris-Lodron-Str. 19 5020 Salzburg Austria Tel: 0662-872350 Fax: 0662-871214 E-Mail: office@lhl.at Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on July 6 to consider the revision of the rule by adoption and accountability. Headquartered in Salzburg, Austria, the Debtor declared bankruptcy on May 5 (Bankr. Case No23 S 32/06k). Helg Herbert Leiduck represents the Debtor in the bankruptcy proceedings. KA-RA SCHILDNER: Claims Filing Period Ends June 19 -------------------------------------------------- Creditors owed money by LLC KA-RA Schildner und Gravuren (FN 98859g) have until June 19 to submit written proofs of claim to court-appointed property manager Ulla Reisch at: Ulla Reisch Praterstrasse 62-64 1020 Vienna Austria Tel: 212 55 00 Fax: 212 55 00-5 E-Mail: office.wien@ulsr.at Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 3 to consider the revision of the rule by adoption and accountability. The meeting will be held at: Room 1705 Trade Court of Vienna 1060 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 5 (Bankr. Case No. 3 S 68/06d). TK-LEASING: Court Closes Bankruptcy Case After Claims Payment ------------------------------------------------------------- The Land Court of Korneuburg entered an order closing the bankruptcy case of LLC of Logistics And Leasing TK-Leasing Und Logistik Branch Osterreich (FN 220288d) on May 5 following the Debtor's final distribution to creditors. Creditors owed money by the Debtor recovered 11.73% on account of their claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Nov. 19, 2004 (Bankr. Case No. 36 S 99/04g). Norbert Abel served as the court-appointed property manager for the bankrupt estate. UNTERNEHMENSBERATUNG CAREER: Claims Filing Period Ends June 15 -------------------------------------------------------------- Creditors owed money by Consulting LLC Unternehmensberatung Career Communication (FN 218534z) have until June 15 to submit written proofs of claim to court-appointed property manager Erwin Senoner at: Erwin Senoner Alser Road 21 1080 Vienna Austria Tel: 406 05 51 Fax: 406 96 01 E-Mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 29 to consider the revision of the rule by adoption and accountability. The meeting will be held at: Room 1703 Trade Court of Vienna Vienna, Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on May 5 (Bankr. Case No. 5 S 67/06x). Georg Freimueller represents Mr. Senoner in the bankruptcy proceedings. =========== F R A N C E =========== BANQUE AGF: Fitch Affirms Individual Rating at C/D -------------------------------------------------- Fitch Ratings affirmed Banque AGF's Issuer Default Rating at A. At the same time BAGF's Short term, Individual and Support ratings are affirmed at F1, C/D and 1 respectively. The Outlook on the IDR remains Stable. The IDR, Short-term and Support ratings of BAGF are based on the support it can expect to receive in the event of need from the operating entities of the French insurance group Assurances Generales de France with which it is highly integrated. The entities are AGF IART and AGF Vie, both rated Insurer Financial Strength. Its Individual rating reflects its small size, short track record in multi-channel retail banking, reasonable risk profile and good capitalization. The retail banking activity, which accounted for half of BAGF's 2005 operating income, continued to be loss making in 2005 and the number of clients fell. Consequently, BAGF redefined its strategy as being the banking services provider to AGF's clients and focusing on its higher-net-worth individuals. This division should break even in 2008. However, the bank's net income was positive in 2005, thanks to profits generated through its market activities and its 20% stake in the French stockbroker Oddo et Cie. As far as risk management is concerned, credit risks controls have been strengthened and market risks are well controlled. The bank's capitalization is sound with a Tier 1 ratio of 16.3% at end-2005. BAGF is the retail bank of the AGF insurance group. Its main activity is retail banking with a clientele of individuals recruited from AGF's five million clients. The bank is accessible through financial advisers, AGF's general agents and brokers. It had around 225,000 clients at end-2005. BAGF also carries out market activities for its own account and manages part of AGF's cash surpluses. ============= G E R M A N Y ============= BONA BAUTRAGER: Claims Filing Period Ends June 26 ------------------------------------------------- Creditors of BONA Bautrager GmbH have until June 26 to register their claims with court-appointed provisional administrator Dirk Hammes. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Duisburg Area C207 2nd Floor Cardinal Galen Road 124-132 47058 Duisburg, 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 Duisburg opened bankruptcy proceedings against BONA Bautrager GmbH on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BONA Bautrager GmbH Duesseldorfer Str. 111 47239 Duisburg, Germany Attn: Paul Vorderwuelbecke, Manager Ringstr. 6 47239 Duisburg, Germany Dieter Bringsken, Manager Wieen 6 47239 Duisburg, Germany The administrator can be reached at: Dirk Hammes William Yard Avenue 75 47800 Krefeld, Germany CONVERT PAPIER: Claims Registration Ends June 28 ------------------------------------------------ Creditors of convert papier GmbH have until June 28 to register their claims with court-appointed provisional administrator Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 2, 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 Dortmund Hall 3.201, 2nd Floor Court Place 1 44135 Dortmund, 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 Dortmund opened bankruptcy proceedings against convert papier GmbH on May 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: convert papier GmbH Attn: Dirk Radine, Manager Ardeyer Str. 12 58730 Frondenberg, Germany The administrator can be reached at: Dr. Sebastian Henneke Hansastrasse 61 44137 Dortmund, Germany Tel: 0231-56559921 Fax: 0231-56559922 FANTASIA IMMOBILIENGESELLSCHAFT: Sets June 28 Claims Bar Date ------------------------------------------------------------- Creditors of Fantasia Immobiliengesellschaft mbH & Co. KG have until June 28 to register their claims with court-appointed provisional administrator Ruediger Wienberg. Creditors and other interested parties are encouraged to attend the meeting at 3:00 p.m. on Aug. 9, 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 28 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 Fantasia Immobiliengesellschaft mbH & Co. KG on May 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fantasia Immobiliengesellschaft mbH & Co. KG Attn: Manfred Voigtmann, Manager Albert Route 5 09212 Limbach-Oberfrohna, Germany The administrator can be reached at: Ruediger Wienberg Michaelstrasse 71 09116 Chemnitz, Germany Web: http://www.hww-kanzlei.de/ J + N METALLBAU: Claims Registration Ends June 26 ------------------------------------------------- Creditors of J + N Metallbau GmbH & Co. KG have until June 26 to register their claims with court-appointed provisional administrator Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on July 17, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Muenster Meeting Room 13 B Gerichtsstr. 2-6 48149 Muenster, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Muenster opened bankruptcy proceedings against J + N Metallbau GmbH & Co. KG on May 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: J + N Metallbau GmbH & Co. KG Diesel Route 15 48683 Ahaus, Germany Attn: Marcus Nonnast, Manager Hovesaat 11 48683 Ahaus, Germany The administrator can be reached at: Andreas Sontopski Gnoiener Place 1 48493 Wettringen, Germany METALLBAU HORST: Claims Filing Period Ends June 28 -------------------------------------------------- Creditors of Metallbau Horst Thielking GmbH & Co. oHG have until June 28 to register their claims with court-appointed provisional administrator Stefan Meyer. 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 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 Metallbau Horst Thielking GmbH & Co. oHG on May 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Metallbau Horst Thielking GmbH & Co. oHG Industrial Way 10 32479 Hille, Germany Attn: Anke Thielking, Manager Hummelweg 15 32426 Minden, Germany The administrator can be reached at: Stefan Meyer Ostertorstr. 7 32312 Luebbecke, Germany SCHLOSSEREI & METALLBAU: Claims Registration Ends June 27 --------------------------------------------------------- Creditors of Schlosserei & Metallbau Voigt GmbH have until June 27 to register their claims with court-appointed provisional administrator Wolf-Dieter H. Weber. Creditors and other interested parties are encouraged to attend the meeting at 3:20 p.m. on July 18, 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 Oldenburg Meeting Room 2. OG Elizabeth Route 6 26135 Oldenburg, 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 Oldenburg opened bankruptcy proceedings against Schlosserei & Metallbau Voigt GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schlosserei & Metallbau Voigt GmbH Attn: Udo Voigt, Manager Klein Feldhus 32 26180 Rastede, Germany The administrator can be reached at: Wolf-Dieter H. Weber Hauptstrasse 91 26188 Edewecht, Germany E-mail: Kanzlei@Weber-Kanzlei.de SCHMIDT & PETERS: Claims Filing Period Ends June 30 --------------------------------------------------- Creditors of Schmidt & Peters GbR have until June 30 to register their claims with court-appointed provisional administrator Thorsten Schnoor. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 14, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Eutin Hall C 1 Stock Jungfernstieg 3 Eutin, 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 Eutin opened bankruptcy proceedings against Schmidt & Peters GbR on May 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Schmidt & Peters GbR Attn: Stephan Peters and Juergen Schmidt, Managers Katthorst 2 23611 Sereetz, Germany The administrator can be reached at: Thorsten Schnoor Wendenstrasse 4 20097 Hamburg, Germany SSB BAUTRAGER: Claims Registration Ends June 27 ----------------------------------------------- Creditors of SSB Bautrager KG have until June 27 to register their claims with court-appointed provisional administrator Karl-Joachim Meyer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 20, at which time the administrator will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarkt 3 21335 Lueneburg, 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 Lueneburg opened bankruptcy proceedings against SSB Bautrager KG on May 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SSB Bautrager KG Attn: Wilfried Strauer, Manager Feldstr. 2 21403 Wendisch-Evern, Germany The administrator can be reached at: Karl-Joachim Meyer Schiessgrabenstr. 8/9 21335 Lueneburg, Germany Tel: 20100 Fax: 201014 TUI AG: Moody' Changes Ba2 Rating Outlook to Negative ----------------------------------------------------- Moody's Investors Service changed the outlook on the Ba2 Corporate Family Rating, the Ba2 Senior Unsecured long term, and the B1 Subordinated ratings of TUI AG (TUI) to negative from stable. The rating action reflects the company's weaker operating performance and slower-than-expected de-leveraging prospects. TUI's 2005 operating profit was constrained by one-off elements in the company's tourism activity -- mainly in its French division, as a result of the costs of the Corsair 747 fleet renewal and the impact of the suburban riots in France and the virus outbreak in La Reunion -- and by the costs of integrating CP Ships in the group's shipping division, together with a decrease in freight rates over the last quarter of the year. Moreover, TUI's operating cash flow generation remained weak in light of the group's heavy capital expenditure program and its high adjusted debt level, which factors in a substantial amount of lease-adjusted debt and has increased from 2004 on account of TUI's strategy to add more capacity in hotels, aircraft and ships. As a result, although the company's Q1 2006 operating result improved to a loss of EUR45 million from a loss of EUR169 million in Q1 2005, Moody's expects TUI's credit metrics to remain low for the Ba2 rating category. Specifically, Retained Cash Flow pre working capital to net adjusted debt stood at 10.4% and Adjusted Gross Debt to EBITDAR at 6.7 at year-end 2005. Moody's cautions that the company may not succeed in improving its credit metrics to the levels previously anticipated, i.e. Gross adjusted debt to EBITDAR below 5.8 and Retained Cash Flow to Net Adjusted debt to progressively strengthen over the intermediate term. Specifically, the rating agency notes that, while the company has in recent years sold non-core assets to support its cash flow generation and enable it to repay debt and finance its capital expenditure program and its dividend, the disposal program is now almost completed (with the recent sales of TQ3 and PNA) and the group will therefore have to rely on its internally generated cash flow to finance its growth, and continue at the same time to reduce its debt. Moreover, Moody's analysis takes into account structural elements of TUI's core businesses that are cyclical, capital-intensive and -- in the case of tourism -- seasonal and relatively low-margin, as well as exposed to fluctuations in fuel prices and consequent margin pressure in the event that cost pass-throughs or fuel surcharges are not possible or delayed. In parallel, as a result of the growth experienced by the lost-cost carriers and the increased Internet penetration trend in Europe, the packaged tour industry has become more commodity-like, hence weakening TUI's prospects for operating margin improvement. Moody's nevertheless notes that the travel business in Germany is expected to pick up due to the FIFA World Cup and that the integration of CP Ships appears to be proceeding smoothly, with synergies materializing ahead of levels anticipated by management. In particular, Hapag-Lloyd is benefiting from recognized yield management systems and CP Ships' high exposure to the more resilient transatlantic market and is, in Moody's view, relatively well positioned to withstand any market deceleration. TUI, headquartered in Hanover, Germany, is Europe's largest integrated tourism group and a leading provider of container shipping services, with sales of EUR18.2 billion in 2005. VEREINS SOZIALARBEIT: Claims Filing Period Ends June 26 ------------------------------------------------------- Creditors of Vereins Sozialarbeit Suederelbe e.V. have until June 26 to register their claims with court-appointed provisional administrator Tjark Thies. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on July 31, 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 Hamburg Hall B 405 4th Floor Sievekingplatz 1 20355 Hamburg, Germany The Court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against Vereins Sozialarbeit Suederelbe e.V. on May 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Vereins Sozialarbeit Suederelbe e.V. Attn: Sigrid Lund, Margrit Abel and Fritz Gramer, Managers Neugrabener Station Route 21 22149 Hamburg, Germany The administrator can be reached at: Dr. Tjark Thies Cathedral Route 15 20095 Hamburg, Germany Tel: 41522416 W. GERLING: Claims Filing Period Ends June 27 --------------------------------------------- Creditors of W. Gerling GmbH have until June 27 to register their claims with court-appointed provisional administrator Nikolaus Ackermann. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on July 25, 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 Aschaffenburg Meeting Room 5.103 (1st Upper Floor) Schlossplatz 5 63739 Aschaffenburg, 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 Aschaffenburg opened bankruptcy proceedings against W. Gerling GmbH on May 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: W. Gerling GmbH Pheasant Avenue 23 63920 Grossheubach, Germany The administrator can be reached at: Nikolaus Ackermann Friedrichstr. 19 63739 Aschaffenburg, Germany Tel: 06021/368919 Fax: 06021/368924 ========= I T A L Y ========= FIAT SPA: Considers Sale of 51% Equity Stake in Fidis Retail ------------------------------------------------------------ Fiat S.p.A. confirmed that it is looking into several evaluations to identify a sole partner for Fidis Retail Italia SpA, Fiat Auto's financial services arm, but no final decision is made yet. This is in response to the speculations published on newspapers. Fiat might sell 51% of Fidis for approximately EUR1 billion to a foreign bank as soon as July, Bloomberg News cited Italian daily la Repubblica. According to the report, BNP Paribas SA, Credit Agricole SA, Societe Generale and Deutsche Bank AG have expressed interest in acquiring the equity stake. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * In August 2005, S&P revised its outlook on Fiat to stable from negative. At the same time, it affirmed its 'BB-' long-term and 'B' short-term corporate credit ratings on the group. As reported in the TCR-Europe on Feb. 10, Fitch Ratings has changed the Outlook on Fiat S.p.A.'s 'BB-' Senior Unsecured rating to Stable from Negative. The agency has at the same time affirmed the Senior Unsecured and Short-term 'B' ratings. EUR6 billion of debt is affected by this Rating action. The Outlook change is underpinned by early signs that the restructuring plan is on track, the stabilization of Fiat Auto's market shares in late 2005 and the successful resolution of a number of credit issues. FIAT SPA: Plans to Purchase Back Mediobanca's Stake on Ferrari -------------------------------------------------------------- Fiat SpA intends to repurchase a stake in luxury sportscar maker Ferrari SpA from a group of investors including Mediobanca SpA, Fiat Chairman and Ferrari CEO Luca Cordero di Montezemolo said. Fiat is set to pay EUR850 million to buy back a 29% stake in Ferrari from some investors including Mediobanca, Bloomberg News cited Il Sole/24. In 2002, Mediobanca bought 34% stake of Ferrari from Fiat. Part of the stake, Bloomberg says, is now held by ABN Amro Holding NV, Commerzbank AG and Lehman Brothers Holdings Inc. Il Giornale earlier disclosed that Fiat considered giving up its 1.8% stake on Mediobanca to raise money in buying back its Ferrari holding. Fiat planned to repurchase Mediobanca's 12% holding in Ferrari, which the Italian carmaker considers as a strategic asset, Gironale said. On June 2, Fiat disclosed that broad and thorough discussions are under way between the company and Mediobanca to reach an agreement on the stake held in Ferrari by the bank. "In any case, negotiations with Mediobanca exclusively regard Fiat SpA in its position as a stakeholder of Ferrari and Mediobanca," a Fiat spokesperson said. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * In August 2005, S&P revised its outlook on Fiat to stable from negative. At the same time, it affirmed its 'BB-' long-term and 'B' short-term corporate credit ratings on the group. As reported in the TCR-Europe on Feb. 10, Fitch Ratings has changed the Outlook on Fiat S.p.A.'s 'BB-' Senior Unsecured rating to Stable from Negative. The agency has at the same time affirmed the Senior Unsecured and Short-term 'B' ratings. EUR6 billion of debt is affected by this Rating action. The Outlook change is underpinned by early signs that the restructuring plan is on track, the stabilization of Fiat Auto's market shares in late 2005 and the successful resolution of a number of credit issues. TK ALUMINUM: Moody's Junks Corporate Family Rating -------------------------------------------------- Moody's Investors Service downgraded TK Aluminum Ltd. Corporate Family Rating to Caa1 from B2 and Teksid Aluminum Luxembourg Sarl SCA senior unsecured rating to Caa3 from Caa1 following the continuing deterioration in the companies operating performance and the prospect for a modest recovery over the medium term. The outlook on the ratings remains negative. The downgrade reflects Teksid continuing pressure on operating margins as increasing raw material costs, the time lag to pass these to final customers and prolonged inefficiencies in North America continue to erode Teksid efforts to drive costs savings and to improve the company's cash generation from core operations. Lower cash flow generation during 2005 and Q1 06 resulted in weakening credit metrics with leverage, in particular, that measured as total adjusted debt to EBITDAR was in excess of 8x as at March 06 on a LTM basis. Going forward financial leverage is expected to remain weak in the context of thin operating margin, below 1%, and the relatively modest room to absorb additional shocks at time when execution risk associated with the company's cost reduction programs is still high. The rating action also reflects high cash burn rates, which continue to absorb the company's liquidity despite the recent renegotiated covenant headroom. Moody's recognizes, however, management's efforts to restore profitability, in a challenging industry environment, notably reducing operating costs, recently renegotiating key contracts with customers to allow a more timely pass through of raw material costs and alleviating immediate liquidity concern by renegotiating covenants and refinancing maturing debt. Moody's remains concerned that the Company's ability to retain cost savings will remain challenging given the need to improve efficiency and better offset elevated raw material prices, and this will continue to weigh on the materiality of any improvements in credit metrics over the short term. The negative outlook reflects Moody's expectation that whilst Teksid is a growing company, the Group will remain challenged to restore its profitability during the second half of 2006 and that the new contractual terms with OEMs still have to prove beneficial for the Group. In addition, cash flow generation from operating activities is expected to remain under pressure over the intermediate term hindering the liquidity resources of the company and delaying any potential deleveraging from current levels. Any further deterioration in Teksid's financial leverage or reduction in the company's recently restored liquidity resources due to the company's inability to revert cash flow losses, in conjunction with only moderate improvement in terms of operating performance would result in a further downgrade of the company's ratings. Although at this stage an upward movement on the ratings is unlikely as key metrics remains weak for the rating category, any stabilization of the rating's outlook could arise after substantial strengthening of cash flows generation, both form operating activity and after capital expenditure, and a clear trend in total adjusted debt to EBITDAR ratio reduction toward the 7.0x. Two ratings have bee affected: -- the B2 Corporate Family Rating lowered to Caa1 -- the Caa1 Senior unsecured rating on the EUR240 million notes due 2011 lowered to Caa3 The outlook on the ratings is negative. TK Aluminum Ltd, a Bermuda-based company with corporate offices in Carmagnola, Italy, is a leading global supplier of aluminium casting components for the automotive industry worldwide. For the twelve months ended Dec. 31, 2005 the company generated net revenues of EUR1,001 million. For the three months ended March 31, 2006 the company generated net revenues of EUR 274.5 million. Total debt balance sheet debt as at March 2006 stood at EUR420.9 million. =================== K A Z A K H S T A N =================== AKFARM: Creditors Must File Claims by June 20 --------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Akfarm insolvent on March 27. Creditors have until June 20 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Akmola Region Office 75 Auelbekova Str. 126 Office 75 Kokshetau Akmola Region Kazakhstan Tel: 8 (3162) 25-40-67 BIS-TARAZ: Creditors Must File Claims by June 20 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Bis-Taraz insolvent on March 30. Bankruptcy proceedings were introduced at the company. Creditors have until June 20 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Jambyl Region Suleymanova Str. 11a (17) Taraz Jambyl Region Kazakhstan CENTRAL ASIA: Creditors' Claims Due June 20 ------------------------------------------- LLP Central Asia Group Ltd. has declared insolvency. Creditors have until June 20 to submit written proofs of claim to: LLP Central Asia Group Ltd. Micro District 14, 8-23 Aktau, Kazakhstan INDUSTRIALNYI PARK: Creditors' Claims Due June 20 ------------------------------------------------- LLP Industrialnyi Park has declared insolvency. Creditors have until June 20 to submit written proofs of claim to: LLP Industrialnyi Park Abai Ave. 115 Almaty, Kazakhstan Tel: 8 (3272) 91-40-57 JASYL: Claims Registration Ends June 20 --------------------------------------- The Specialized Inter-Regional Economic Court of Akmola Region declared LLP Jasyl insolvent on March 27. Creditors have until June 20 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Akmola Region Office 75 Auelbekova Str. 126 Kokshetau, Akmola Region Kazakhstan Tel: 8 (3162) 25-40-67 NEON-TREID: Claims Registration Ends June 19 -------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Neon-Treid insolvent on March 30. Bankruptcy proceedings were introduced at the company. Creditors have until June 19 to submit written proofs of claim to the insolvency manager at: The Specialized Inter-Regional Economic Court of Pavlodar Region Lunacharskogo Str. 49 Pavlodar Pavlodar Region Kazakhstan Tel: 8 (3182) 55-32-62 NSK: Proof of Claim Deadline Slated for June 20 ----------------------------------------------- LLP Korean-Kazakh Joint Venture NSK has declared insolvency. Creditors have until June 20 to submit written proofs of claim to: LLP Korean-Kazakh Joint Venture NSK Dinamovsky Throughfare 4 Shymkent South Kazakhstan Region Kazakhstan PENAT: Proof of Claim Deadline Slated for June 19 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Penat insolvent on March 30. Bankruptcy proceedings were introduced at the company. Creditors have until June 19 to submit written proofs of claim to the insolvency manager at: The Specialized Inter-Regional Economic Court of Pavlodar Region Lunacharskogo Str. 49 Pavlodar Pavlodar Region Kazakhstan Tel: 8 (3182) 55-32-62 PLANTA: Pavlodar Court Sets June 19 Claims Bar Date --------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar Region declared LLP Firma Planta insolvent on Mach 30. Subsequently, bankruptcy proceedings were introduced at the company. Creditors have until June 19 to submit written proofs of claim to the insolvency manager at: The Specialized Inter-Regional Economic Court of Pavlodar Region Lunacharskogo Str. 49 Pavlodar Pavlodar Region Kazakhstan Tel: 8 (3182) 55-32-62 RAYHAN: Jambyl Court Sets June 20 Claims Bar Date ------------------------------------------------- The Specialized Inter-Regional Economic Court of Jambyl Region declared LLP Private Firm Rayhan insolvent on March 30. Bankruptcy proceedings were introduced at the company. Creditors have until June 20 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Jambyl Region Suleymanova Str. 11a (17) Taraz Jambyl Region Kazakhstan =================== L U X E M B O U R G =================== TEKSID ALUMINUM: Moody's Cuts Senior Unsecured Rating to Caa3 ------------------------------------------------------------- Moody's Investors Service downgraded TK Aluminum Ltd. Corporate Family Rating to Caa1 from B2 and Teksid Aluminum Luxembourg Sarl SCA senior unsecured rating to Caa3 from Caa1 following the continuing deterioration in the companies operating performance and the prospect for a modest recovery over the medium term. The outlook on the ratings remains negative. The downgrade reflects Teksid continuing pressure on operating margins as increasing raw material costs, the time lag to pass these to final customers and prolonged inefficiencies in North America continue to erode Teksid efforts to drive costs savings and to improve the company's cash generation from core operations. Lower cash flow generation during 2005 and Q1 06 resulted in weakening credit metrics with leverage, in particular, that measured as total adjusted debt to EBITDAR was in excess of 8x as at March 06 on a LTM basis. Going forward financial leverage is expected to remain weak in the context of thin operating margin, below 1%, and the relatively modest room to absorb additional shocks at time when execution risk associated with the company's cost reduction programs is still high. The rating action also reflects high cash burn rates, which continue to absorb the company's liquidity despite the recent renegotiated covenant headroom. Moody's recognizes, however, management's efforts to restore profitability, in a challenging industry environment, notably reducing operating costs, recently renegotiating key contracts with customers to allow a more timely pass through of raw material costs and alleviating immediate liquidity concern by renegotiating covenants and refinancing maturing debt. Moody's remains concerned that the Company's ability to retain cost savings will remain challenging given the need to improve efficiency and better offset elevated raw material prices, and this will continue to weigh on the materiality of any improvements in credit metrics over the short term. The negative outlook reflects Moody's expectation that whilst Teksid is a growing company, the Group will remain challenged to restore its profitability during the second half of 2006 and that the new contractual terms with OEMs still have to prove beneficial for the Group. In addition, cash flow generation from operating activities is expected to remain under pressure over the intermediate term hindering the liquidity resources of the company and delaying any potential deleveraging from current levels. Any further deterioration in Teksid's financial leverage or reduction in the company's recently restored liquidity resources due to the company's inability to revert cash flow losses, in conjunction with only moderate improvement in terms of operating performance would result in a further downgrade of the company's ratings. Although at this stage an upward movement on the ratings is unlikely as key metrics remains weak for the rating category, any stabilization of the rating's outlook could arise after substantial strengthening of cash flows generation, both form operating activity and after capital expenditure, and a clear trend in total adjusted debt to EBITDAR ratio reduction toward the 7.0x. Two ratings have bee affected: -- the B2 Corporate Family Rating lowered to Caa1 -- the Caa1 Senior unsecured rating on the EUR240 million notes due 2011 lowered to Caa3 The outlook on the ratings is negative. TK Aluminum Ltd, a Bermuda-based company with corporate offices in Carmagnola, Italy, is a leading global supplier of aluminium casting components for the automotive industry worldwide. For the twelve months ended Dec. 31, 2005 the company generated net revenues of EUR1,001 million. For the three months ended March 31, 2006 the company generated net revenues of EUR 274.5 million. Total debt balance sheet debt as at March 2006 stood at EUR420.9 million. ===================== N E T H E R L A N D S ===================== HARBOURMASTER PRO-RATA: Fitch Rates EUR26 Million Notes at BB ------------------------------------------------------------- Fitch Ratings assigned Harbourmaster Pro-Rata CLO 1 B.V's issue of EUR341 million floating-rate notes due 2021 final ratings. The transaction, a European arbitrage collateralized loan obligation, is a securitization of primarily senior secured loans. It is the first such transaction that synthetically references a portfolio of European leveraged loans and the first transaction that includes exposure to the revolving credit facilities of European leveraged loans. This transaction is the seventh European CLO to be managed by Harbourmaster Capital Limited. -- EUR160 million Class A1 notes: AAA; -- EUR35 million Class A2 notes: AA; -- EUR32 million Class A3 notes: A-; -- EUR28 million Class B1 notes: BBB; -- EUR26 million Class B2 notes: BB; -- EUR60 million Class C subordinated notes: not rated; and -- EUR3.3 million Class S1 combination notes: BBB. The rating of the Class A1 notes addresses the ultimate repayment of principal at maturity and timely payment of interest when due according to the terms of the notes. For all other Classes of notes the ratings address the ultimate payment of principal and interest, including deferred interest, at maturity. The rating assigned to the S1 combination note addresses the ultimate payment of principal from funds received on their components of B1 and the unrated C notes. The ratings are based on the quality and diversity of the portfolio of assets, which are selected by the collateral manager subject to the guidelines outlined in the collateral management agreement. The said guidelines limit the collateral manager's portfolio allocations with respect to obligor, industry and asset type. Fitch assigned Harbourmaster a CDO Asset Manager Rating of 2 for leveraged loans in September 2004 that was affirmed in November 2005, based on the manager's strong credit underwriting and workout experience. The ratings are also based on the credit enhancement provided to the various Classes of notes, which consists of the subordinated notes, structural protection covenants and excess spread. This is the first European arbitrage CLO that enables the manager to have larger exposure to the traditionally bank- dominated revolving credit facility and term loan A portion of synthetically referenced through a credit default swap with ABN AMRO Bank N.V. Through this, the issuer receives a premium from the swap counterparty in exchange for loss protection on a reference portfolio of senior secured and unsecured loans, which ABN AMRO has granted across a variety of jurisdictions. The issuer is a company with limited liability, incorporated under the laws of the Netherlands. The net proceeds from the note issuance are invested in a guaranteed investment contract, which serves as collateral for the notes. =========== N O R W A Y =========== FALCONBRIDGE LTD: Selling Assets to LionOre for US$650 Million -------------------------------------------------------------- Falconbridge Limited and Inco Limited reached a definitive agreement with LionOre Mining International Ltd. covering the sale to LionOre of certain assets and related operations of Falconbridge. The purchase price to be paid by LionOre for the assets and related operations to be sold is US$650 million, of which US$400 million will be in cash and US$250 million of LionOre common shares. This purchase price is subject to certain adjustments tied to changes in the final working capital levels of the operations to be sold to LionOre and certain other adjustments. "We are pleased in having reached this agreement with LionOre," said Scott Hand, Chairman and CEO of Inco. "This is an important milestone in the regulatory clearance process and we look forward to completing this process so that the acquisition can be cleared by the U.S. Department of Justice and the European Commission." Inco and Falconbridge have been discussing with the U.S. Department of Justice and European Commission about the assets and related operations that would be divested and the associated arrangements that would be necessary as the proposed remedy to address potential competition issues that the DOJ and the Commission have identified relating to Inco's pending acquisition of Falconbridge. The sale of these assets and related operations to LionOre will include Falconbridge's Nikkelverk refinery in Norway and the Falconbridge marketing and custom feed organizations that market and sell the finished nickel and other products produced at Nikkelverk and obtain third-party feeds for this facility. Inco also agreed to supply up to 60,000 tonnes of nickel in matte under a 10-year supply agreement, which approximates the current volume of feed provided by Falconbridge's operations to the facility. The closing of this sale is conditioned on, and expected to be completed upon receipt of, the clearance by both the DOJ and the Commission of the pending acquisition of Falconbridge by Inco, as well as Inco taking up and paying for Falconbridge shares pursuant to its offer and certain other standard terms and conditions to closing. Inco and Falconbridge understand that the DOJ and the Commission are reviewing the final terms of the proposed remedy that they have been discussing with these regulatory agencies, including the terms of this sale to LionOre. Inco and Falconbridge expects that the DOJ and the Commission will advise them whether the acquisition will be cleared based upon this sale to LionOre prior to the end of June 2006. Both companies believe that the competition issues that have been identified by the DOJ and the Commission are addressed by the agreements entered into covering this sale to LionOre. The parties will continue to cooperate with the DOJ and the Commission in connection with their respective final reviews of the terms of the remedy. About Inco Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- is the world's #2 producer of nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the UK. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDN$150 million 5% convertible and callable bonds due April 30, 2007, carries Standard & Poor's BB+ rating. ============= R O M A N I A ============= CFR MARFA: Moody's Affirms Ba2 Senior Unsecured Rating ------------------------------------------------------ Moody's Investors Service affirmed the Ba2 Senior Unsecured rating of CFR Marfa S.A., following an earlier decision by Moody's to place the Romanian government's ratings of Ba1 on review for possible upgrade. The outlook on CFR Marfa's rating remains negative. In accordance with Moody's GRI rating methodology, the rating of CFR Marfa reflects the combination of the following inputs: -- Baseline credit assessment of 6 (on a scale of 1 to 6, where 1 represents lowest credit risk) -- Ba1 local currency rating of the Romanian government -- High dependence -- High support Moody's assessments of CFR Marfa's baseline credit risk, default dependence, and government support remain unchanged at this stage. The rating affirmation, therefore, solely reflects the impact of the sovereign ratings action, as applied through Moody's GRI rating methodology. An upgrade of the Romanian government ratings would lead to a change in the outlook on CFR Marfa's rating from negative to stable. CFR MARFA S.A., headquartered in Bucharest, is the national company for freight railway transport of Romania. COMPANIA NATIONALA: Moody's Places Ba2 Rating Under Review ---------------------------------------------------------- Moody's Investors Service placed the Ba2 corporate family rating of Compania Nationala de Cai Ferate CFR S.A. on review for possible upgrade following an earlier decision by Moody's to place the Ba1 rating of the Government of Romania on review for possible upgrade. In accordance with Moody's GRI rating methodology, the rating of CFR reflects the combination of the following inputs: -- Baseline credit assessment of 6 (on a scale of 1 to 6, where 1 represents lowest credit risk) -- Ba1 local currency rating of the Government of Romania -- High dependence -- High support The last rating action was on November 7, 2005 when Moody's upgraded CFR's Corporate Family Rating to Ba2 from B2. Ratings outstanding: -- Corporate Family Rating: Ba2, review for upgrade Moody's assessment of CFR's baseline credit risk, default dependence, and government support remain unchanged. The rating action therefore solely reflects the impact of the sovereign rating action, as applied through Moody's GRI rating methodology. An upgrade of the rating of the Government of Romania would lead to an upgrade of the rating of CFR. Compania Nationala de Cai Ferate CFR S.A., headquartered in Bucharest, is the owner and operator of Romania's rail infrastructure. TRANSELECTRICA SA: Moody's May Downgrade Ba1 Corp. Family Rating ---------------------------------------------------------------- Moody's Investors Service placed the Ba1 corporate family rating of Transelectrica S.A. (Transelectrica) on review for possible upgrade following an earlier decision by Moody's to place the Romanian government's ratings of Ba1 on review for possible upgrade. In accordance with Moody's GRI rating methodology, the rating of Transelectrica reflects the combination of the following inputs: -- Baseline credit assessment of 5 (on a scale of 1 to 6, where 1 represents lowest credit risk) -- Ba1 local currency rating of the Romanian government -- Medium dependence -- High support Moody's assessments of Transelectrica's baseline credit risk, default dependence, and government support remain unchanged at this stage. The rating action therefore solely reflects the impact of the sovereign ratings action, as applied through Moody's GRI rating methodology. An upgrade of the Romanian government ratings would lead to an upgrade of the rating of Transelectrica. Transelectrica, headquartered in Bucharest, Romania, is the electricity transmission, system and market operator in Romania. In 2004, the company's turnover was RON1.06 billion (about EUR 268 million). =========== R U S S I A =========== BRYANSK-OBL-GRAZHDAN-STROY: N. Shirokov to Manage Assets -------------------------------------------------------- The Arbitration Court of Bryansk Region appointed Mr. N. Shirokov as insolvency manager for CJSC Bryansk-Obl-Grazhdan- Stroy (Case No. A09-3297/04-28). He can be reached at: N. Shirokov 4th Floor 3rd Kurskaya Str. 15 302004, Orel Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: CJSC Bryansk-Obl-Grazhdan-Stroy Fokina Str. 73A Bryansk Region, Russia BUILDER: Court Names Y. Chernikova as Insolvency Manager -------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod Region appointed Ms. Y. Chernikova as insolvency manager for OJSC Builder. She can be reached at: Y. Chernikova M. Ekaterininskaya Str. 17/21 129110, Moscow Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A 43-4136/2005 24-114). The Debtor can be reached at: OJSC Builder Proizvodstvennaya Str. 7 Knyagino Nizhniy Novgorod Region, Russia NARTKALINSKIY SPIRIT: S. Martynova Acts as Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Kabardino Balkariya Republic appointed Ms. S. Martynova as insolvency manager for OJSC Nartkalinskiy Spirit Distillery (Case No. A20-7802/2005). She can be reached at: S. Martynova M. Ekaterininskaya Str. 17/21 129110, Moscow Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Debtor can be reached at: OJSC Nartkalinskiy Spirit Distillery Oshnokova Str. 1 Nartkala Kabardino Balkariya Republic, Russia OAO ROSNEFT: Yukos Holds 9.7% Stake After Yugansk Consolidation --------------------------------------------------------------- Yukos Oil Company has agreed to the consolidation of Yuganskneftegaz into state-owned OAO Rosneft, currently underway in preparation of Rosneft's planned initial public offering in July, Kommersant relates. Yukos would now become Rosneft's largest minority shareholder with its 9.7% holding in Rosneft in exchange for its own 23.21% stake in Yuganskneftegaz, the Russian daily said. According to the report, Rosneft is likely to get the equity holding after Yukos' inevitable bankruptcy proceedings. 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%. The consolidation involves: * 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. Rosneft intends to hold investor presentations on June 26 before its planned initial public offer in July, Reuters reports. 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. 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. REINFORCED-CONCRETE 25: Bankruptcy Hearing Slated for July 12 ------------------------------------------------------------- The Arbitration Court of Altay Region will convene on July 12 to hear the bankruptcy supervision procedure on CJSC Factory Of Reinforced-Concrete Goods 25 (Case No. A03-23538/05-B). The Temporary Insolvency Manager is: D. Mishenko Post User Box 16 Barnaul 656015, Altay Region, Russia The Debtor can be reached at: CJSC Factory of Reinforced-Concrete Goods 25 Energetikov Str. 41 Barnaul 656922 Altay Region, Russia ROVENKI-AGRO-PROM-KHIMIYA: I. Shteynikov to Manage Assets --------------------------------------------------------- The Arbitration Court of Belgorod Region appointed Mr. I. Shteynikov as insolvency manager for OJSC Rovenki-Agro-Prom- Khimiya (Case No. A08-3539/05-11 B). He can be reached at: I. Shteynikov Komsomolskaya, 1 Rovenki Belgorod Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent. The Arbitration Court of Belgorod Region is located at: Narodnyj Avenue 135 Belgorod Region, Russia The Debtor can be reached at: OJSC Rovenki-Agro-Prom-Khimiya Komsomolskaya, 1 Rovenki Belgorod Region, Russia RUBY: Kaluga Court Appoints S. Smorgachev as Insolvency Manager --------------------------------------------------------------- The Arbitration Court of Kaluga Region appointed Mr. S. Smorgachev as insolvency manager for LLC Ruby. She can be reached at: S. Smorgachev Office 13 Kirova Str. 7/47 248001, Kaluga Region, Russia The Court commenced bankruptcy proceedings against the company after finding it insolvent (Case No. A23-375/06B-17-12). The Debtor can be reached at: LLC Ruby Tovarkovo. Dzerzhinskiy Region Kaluga Region, Russia SARAPULSKIY TANNERY: Court Commences Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Udmurtiya Republic has commenced bankruptcy supervision procedure on OJSC Sarapulskiy Tannery (Case No. A71-35/2005-G21). The Temporary Insolvency Manager is: I. Klemeshov Post User Box 173 630077, Novosibirsk-77, Russia The Debtor can be reached at: OJSC Sarapulskiy Tannery Truda Str. 61a Sarapul 427964 Udmurtiya Republic, Russia YUKOS OIL: Holding Talks Next Week Over Transpetrol Equity Sale --------------------------------------------------------------- Yukos Oil Company will hold talks next week to complete the proposed sale of its 49% stake in Transpetrol AS to Russia's OAO NK Russneft, Garfield Reynolds writes for Bloomberg News. According to Reuters, Yukos chairman Viktor Gerashchenko said the company failed to sell its Transpetrol holding due to differences with the Slovak government. Slovakia's Antimonopoly Office has cleared the equity sale last May. The Slovak government, which holds the remaining 51% in Transpetrol, has veto power over any sale of Yukos' stake until mid-2007, Reuters reveals. As reported in TCR-Europe on March 3, YUKOS Finance BV, a subsidiary of YUKOS Oil, agreed to sell its equity holding in Slovakian company Transpetrol to RussNeft for US$103 million. The sale and purchase agreement was signed by both parties on Feb. 4, 2006. In 2005, the Board of Directors and the management team of YUKOS Oil Company decided that non-core, non-Russian assets would be divested and the cash generated from these sales would be ear- marked to meet liabilities from creditors. 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. YUKOS OIL: Holds 9.7% in Rosneft After Yugansk Consolidation ------------------------------------------------------------ Yukos Oil Company has agreed to the consolidation of Yuganskneftegaz into state-owned OAO Rosneft, currently underway in preparation of Rosneft's planned initial public offering in July, Kommersant relates. Yukos would now become Rosneft's largest minority shareholder with its 9.7% holding in Rosneft in exchange for its own 23.21% stake in Yuganskneftegaz, the Russian daily said. According to the report, Rosneft is likely to get the equity holding after Yukos' inevitable bankruptcy proceedings. 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%. The consolidation involves: * 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. Rosneft intends to hold investor presentations on June 26 before its planned initial public offer in July, Reuters reports. 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. 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. ============= U K R A I N E ============= AGROMIST: Kyiv Court Starts Bankruptcy Supervision -------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Agromist (code EDRPOU 25195335) on April 11. The case is docketed under Case No. 23/72-b. The Temporary Insolvency Manager is: 300 Rokiv Vozzyednannya Str. 31 91029, Lugansk Region, Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: LLC Agromist: Suvorov Str. 4/6 01010 Kyiv Region, Ukraine AUTOSERVICE: Volinska Court Opens Bankruptcy Proceedings -------------------------------------------------------- The Economic Court of Volinska Region commenced bankruptcy proceedings against LLC AUTOSERVICE (code EDRPOU 13356164) after finding it insolvent on April 3. The case is docketed under Case No. 1/44-B. The Liquidator is: Department of Pension Fund Nezalezhnosti Str. 101 Kovel Volinska Region, Ukraine The Economic Court of Volinska Region is located at: Voli Avenue 54-a Lutsk 43010, Volinska Region, Ukraine The Debtor can be reached at: LLC Autoservice: Brestska Str. 113a Kovel Volinska Region, Ukraine BUDMETAL: Court Names Mihajlo Mitsak as Insolvency Manager ---------------------------------------------------------- The Economic Court of Kyiv Region appointed Mihajlo Mitsak as Liquidator/Insolvency Manager for LLC Budmetal (code EDRPOU 31759146). He can be reached at: Mihajlo Mitsak Zhmerinska Str. 22/12 01023 Kyiv Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on March 27. The case is docketed under Case No. 24/158-B. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: Zhmerinska Str. 22/12 01023 Kyiv Region, Ukraine INTERAGROSERVICE: Court Starts Bankruptcy Supervision ----------------------------------------------------- The Economic Court of Kyiv Region commenced bankruptcy supervision procedure on LLC Interagroservice (code EDRPOU 31010218). The case is docketed under Case No. 250/3 b-05/11. The Temporary Insolvency Manager is: Sergij Yegorenkov L. Ukrainka Boulevard 19/138 01133, Kyiv Region, Ukraine The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030, Kyiv Region, Ukraine The Debtor can be reached at: LLC Interagroservice Stovpyagi Pereyaslav-Hmelnitskij District 08400, Kyiv Region, Ukraine INTERINVEST LIMITED: Court Taps Aviation Solution as Liquidator --------------------------------------------------------------- The Economic Court of Kyiv Region appointed LLC Aviation Solution (code EDRPOU 3160660) as Liquidator for for LLC Interinvest Limited (code EDRPOU 32962373). The Liquidator can be reached at: LLC Aviation Solution Kikvidze Str. 13 01103 Kyiv Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 5. The case is docketed under Case No. 43/208. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: LLC Interinvest Limited Kiyanivskij Lane 3-7 04053 Kyiv Region, Ukraine INVEST-UKR: Court Appoints T. Tarasenko as Insolvency Manager ------------------------------------------------------------- The Economic Court of Kyiv Region appointed Mr. T. Tarasenko as Liquidator/Insolvency Manager for LLC Invest-Ukr (code EDRPOU 31027242). He can be reached at: T. Tarasenko Dobrohotov Str. 17/49 Kyiv Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on March 16. The case is docketed under Case No. 43/798. The Economic Court of Kyiv Region is located at: B. Hmelnitskij Boulevard 44-B 01030 Kyiv Region, Ukraine The Debtor can be reached at: LLC Invest-Ukr Dimitrov Str. 16-g Kyiv Region, Ukraine KUPYANSK' HEAT: Harkiv Court Opens Bankruptcy Proceedings --------------------------------------------------------- The Economic Court of Harkiv Region commenced bankruptcy proceedings against LLC Kupyansk' Heat Networks (code EDRPOU 33001645) after finding it insolvent. The case is docketed under Case No. B 50/77-05. The Liquidator/Insolvency Manager is: Vladislav Kardash Kupyansk, Lenin Str. 15/4 63701, Harkiv Region, Ukraine 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 Kupyansk' Heat Networks Lenin Str. 108-A Kupyansk Harkiv Region, Ukraine SILGOSPPRODUKT: Court Appoints O. Novikov as Liquidator ------------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Mr. O. Novikov as Liquidator/Insolvency Manager for LLC Silgospprodukt (code EDRPOU 00851821). He can be reached at: O. Novikov Office 40 Dzerzhinskij Str. 29 49600 Dnipropetrovsk Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 13. The case is docketed under Case No. B 29/156/04. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region, Ukraine The Debtor can be reached at: LLC Silgospprodukt Magistralna Str. 1 Vasilkivske Petropavlivskij District 52751 Dnipropetrovsk Region, Ukraine SLAVUTICH: Court Names O. Novikov to Manage Assets -------------------------------------------------- The Economic Court of Dnipropetrovsk Region appointed Mr. O. Novikov as Liquidator/Insolvency Manager for OJSC Production- Trade Complex Slavutich (code EDRPOU 13429555). He can be reached at: O. Novikov Office 40 Dzerzhinskij Str. 29 49600 Dnipropetrovsk Region, Ukraine The Court commenced bankruptcy proceedings at the company after finding it insolvent on April 11. The case is docketed under Case No. B 15/169/05. The Economic Court of Dnipropetrovsk Region is located at: Kujbishev Str. 1a 49600 Dnipropetrovsk Region, Ukraine The Debtor can be reached at: OJSC Production-Trade Complex Slavutich Artema Str. 12 49000 Dnipropetrovsk Region, Ukraine =========================== U N I T E D K I N G D O M =========================== 3MB DEVELOPMENTS: Names David N. Kaye Administrator --------------------------------------------------- David N. Kaye of Crawfords was appointed administrator of 3MB Developments Limited (Company Number 04570773) on May 15. The administrator can be contacted at: Crawfords Stanton House 41 Blackfriars Road Salford Manchester Greater Manchester M3 7DB United Kingdom Tel: 0161 828 1000 Fax: 0161 832 1829 Headquartered in Kensington, United Kingdom, 3MB Developments Limited are building contractors. ALFRED DEARNLEY: Creditors Pass Winding Up Resolution ----------------------------------------------------- Creditors of Alfred Dearnley & Sons Limited passed a resolution to wind up the company's operations during an extraordinary general meeting on March 24. Patrick Ellward and Dilip Dattani, of Tenon Recovery, were appointed Joint Liquidators. The company can be reached at: Alfred Dearnley & Sons Limited Draycott Mills Market Street Draycott Derby DE723NB United Kingdom Tel: 01332 873 638 BAA PLC: Moody's Downgrades GBP1.049 Billion Debt Ratings at Ba1 ---------------------------------------------------------------- Moody's Investors Service downgraded to Ba1 from Baa3 the issuer rating of BAA Plc as well as the ratings for: -- GBP425 million convertible bonds due August 2009; -- GBP424 million convertible bonds due April 2008; and -- GBP200 million 7.875% bonds due February 2007. BAA's short-term rating was also downgraded to Not Prime from Prime-3. All other long-term debt ratings remain at Baa2. All long-term ratings remain on review for further downgrade. This rating action follows the announcement on June 6 that BAA intends to recommend to shareholders and convertible bond holders that they accept an offer from Airport Development and Investment Limited (ADI) to acquire the shares and convertible bonds of BAA. Moody's notes that the acquisition would, if it went ahead, be predominantly debt-financed and would consequently increase the effective debt burden of the combined ADI / BAA group significantly to a level that would be inconsistent with an investment-grade credit rating at the BAA plc level -- hence the downgrade of the Un-guaranteed Bonds, the Issuer Rating and the short-term rating. However, those bonds that benefit from guarantees from Heathrow Airport Limited, Gatwick Airport Limited and Stansted Airport Limited, which constitute the majority of the rated bonds, are not downgraded. This reflects Moody's view, based on the current somewhat limited information and taking account of possible outcomes, that these debt obligations would remain commensurate with investment grade following completion of the proposed acquisition and execution of ADI's refinancing plans. Nevertheless, there remains a risk that following completion of the proposed acquisition ADI might be unable to create a refinancing structure that would retain an investment-grade credit rating for the Guaranteed Bonds, hence the continued review for downgrade of these ratings. Moody's also notes the possibility that another financial consortium may make an offer for BAA, on terms that are currently unknown but that may lead to a substantially leveraged position for BAA. ADI, a consortium comprising Grupo Ferrovial S.A. (approximately 64%), Caisse de dep"t et placement du Quebec (approximately 26%) and the Government of Singapore Investment Corporation Pte Ltd. (approximately 10%), has made an offer for all of the shares and convertible bonds of BAA that is estimated to cost GBP11.4 billion. ADI has advised that GBP4.3 billion will be financed by redeemable participating ordinary shares, GBP373 million by payment-in-kind notes and the balance by a series of debt facilities of varying levels of seniority, including GBP4.72 billion of Senior Acquisition Facilities. ADI has further advised that, shortly after the completion of the acquisition of BAA, it intends to refinance the Senior Acquisition Facilities with a longer-term financing structure based upon proven techniques adopted by other regulated companies. This process is intended to provide the medium- and long-term financing required to support the investment needs of BAA. The Baa2 ratings of the Guaranteed Bonds reflect Moody's view that the balance of interest for ADI / BAA would be on retaining an investment-grade rating for these bonds as part of the refinancing of the ADI Senior Acquisition Facilities. ADI could try to achieve this through the employment of structures adopted by other regulated companies which, provided certain structural features are incorporated, could enable the debt financing of the Designated Airports and the Guaranteed Bonds to be considered independently of the group debt. Given BAA's existing debt, its projected capital expenditure programme and business risks and the fact that ADI is likely to attempt to refinance at least part of the Senior Acquisition Facilities at a level pari passu with the Guaranteed Bonds, Moody's believes that a Baa1 rating of the Guaranteed Bonds would be unlikely given the financial headroom that would be required to maintain the rating, and that either a Baa2 or a Baa3 rating would therefore be a more likely outcome. If in the future Moody's takes the view that the Designated Airports will be required to support a level of debt inconsistent with an investment-grade credit rating, a downgrade of the ratings of the Guaranteed Bonds will likely follow. All ratings remain on review for downgrade pending the resolution of the acquisition of BAA by ADI and clarification of the initial financing and short-term refinancing plans of ADI. Consequently, Moody's review will focus on: -- the progress of the offer and whether or not an offer from another financial consortium emerges and the possible financial terms thereof, and -- the detail of ADI's plans for BAA, including the capital structure of ADI / BAA and the status of the Guaranteed Bonds therein. Moody's last rating action on BAA was on May 23, when it downgraded the Guaranteed Bonds to Baa2 from Baa1, the Un- guaranteed Bonds and Issuer Rating to Baa3 from Baa1 and the short-term rating to Prime-3 from Prime-2, and maintained all ratings on review for further downgrade. Ratings outstanding: -- GBP300 million 11.75% Bonds due 2016: Baa2 (guaranteed by the Designated Airports) -- GBP250 million 8.5% Bonds due 2021: Baa2 (guaranteed by the Designated Airports) -- GBP200 million 6.375% Bonds due 2028: Baa2 (guaranteed by the Designated Airports) -- All Issuance under GBP4.5 billion Euro Medium-Term Note Program: Baa2 (guaranteed by the Designated Airports) -- Issuer Rating: Ba1 -- GBP425 million 2.625% Convertible Bonds due 2009: Ba1 -- GBP424 million 2.94% Convertible Bonds due 2008: Ba1 -- GBP200 million 7.875% Bonds due 2007: Ba1 -- Short-term rating: Not Prime All long-term ratings are on review for downgrade. Headquartered in London, BAA plc owns and operates seven airports in the United Kingdom, including Heathrow, the world's busiest international airport, and Budapest Airport. BAA had total assets of GBP15.2 billion and pre-tax profits of GBP757 million for the year ended March 31, 2006. CORTECS PHARMACEUTICAL: Appoints Peter W. Engel as Liquidator ------------------------------------------------------------- Creditors of Cortecs Pharmaceutical Investments Limited agreed to wind up the company during an extraordinary general meeting on March 21. Peter W. Engel, of Solomon Hare Business Rescue, was authorized to liquidate the company's assets. The company can be reached at: Cortecs Pharmaceutical Investments Limited Newtech Square Deeside Industrial Park Deeside Clwyd CH5 2NT United Kingdom Tel: 01244 833 446 Fax: 01244 280 320 CWE DEVEOPMENTS: Brings In PwC as Joint Liquidators --------------------------------------------------- Tim Walsh and Richard Setchim, of PricewaterhouseCoopers LLP, were appointed Joint Liquidators of CWE Developments Limited after creditors passed a resolution to wind up the company on March 28. The company can be reached at: CWE Developments Limited 7 Clifford Street London W1S 2WE United Kingdom Fax: 020 7292 6111 CWE MANAGEMENT: Begins Liquidation Proceedings ----------------------------------------------- CWE Management Limited is liquidating its assets after creditors passed a resolution to wind up the company on March 28. Tim Walsh and Richard Setchim, of PricewaterhouseCoopers LLP, were appointed Joint Liquidators. The company can be reached at: CWE Management Limited 7 Clifford Street London W1S 2WE United Kingdom Tel: 020 7292 6100 Fax: 020 7292 6111 DEW PITCHMASTIC: Lloyds TSB Appoints Ernst & Young as Receivers --------------------------------------------------------------- Lloyds TSB Bank PLC appointed Robert Hunter Kelly and Charles Graham John King of Ernst & Young LLP joint administrative receivers of Dew Pitchmastic PLC (Company Number 00724054) on May 17. Ernst & Young -- http://www.ey.com/-- is 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 Pitchmastic PLC can be reached at: Royds Wks Attercliffe Road Sheffield S4 7WZ United Kingdom Tel: 0114 270 0100 Fax: 0114 276 8782 DEW REMEDIATION: Appoints Ernst & Young as Administrators --------------------------------------------------------- Robert Hunter Kelly and Charles Graham John King of Ernst & Young LLP were appointed joint administrators of Dew Remediation Limited (Company Number 03386013) May 18. Ernst & Young -- http://www.ey.com/-- is global organization help companies in businesses across all industries-from emerging growth companies to global powerhouses-deal with a broad range of business issues. Headquartered in Sheffield, United Kingdom, Dew Remediation Limited is engaged in construction. EZALGAVON LIMITED: Hires Joint Administrators from P&A ------------------------------------------------------ Stephen Lord and Stephen James Wainwright of Poppleton & Appleby were appointed joint administrators of Ezalgavon Limited (formerly Novaglaze Limited)(Company Number 2497088) on May 17. The P&A Partnership (aka Poppleton and Appleby) -- http://www.thepandapartnership.com/-- is a member firm of the Insolvency Practitioners Association and the Association of Business Recovery Professionals (R3) and act for all clearing banks and a growing number of factors and asset lenders. Its clients include multinational PLCs, SMEs, financial institutions, accountants, solicitors and business advisors. Headquartered in Huddersfield, United Kingdom, Ezalgavon Limited is engaged in glass processing. GPS LOGISTICS: Creditors Resolve to Liquidation ----------------------------------------------- Creditors of GPS LOGISTICS (EU) Limited resolved to liquidate the company's assets during an extraordinary general meeting on March 24. Ian Franses, of Ian Franses Associates, was appointed Liquidator. The company can be reached at: GPS Logistics (EU) Limited Unit 1 Alpha Way Thorpe Industrial Estate Egham Surrey TW208RZ Tel: 01784 480 100 INCO LTD: Selling Falconbridge Assets to LionOre for US$650 Mln --------------------------------------------------------------- Falconbridge Limited and Inco Limited reached a definitive agreement with LionOre Mining International Ltd. covering the sale to LionOre of certain assets and related operations of Falconbridge. The purchase price to be paid by LionOre for the assets and related operations to be sold is US$650 million, of which US$400 million will be in cash and US$250 million of LionOre common shares. This purchase price is subject to certain adjustments tied to changes in the final working capital levels of the operations to be sold to LionOre and certain other adjustments. "We are pleased in having reached this agreement with LionOre," said Scott Hand, Chairman and CEO of Inco. "This is an important milestone in the regulatory clearance process and we look forward to completing this process so that the acquisition can be cleared by the U.S. Department of Justice and the European Commission." Inco and Falconbridge have been discussing with the U.S. Department of Justice and European Commission about the assets and related operations that would be divested and the associated arrangements that would be necessary as the proposed remedy to address potential competition issues that the DOJ and the Commission have identified relating to Inco's pending acquisition of Falconbridge. The sale of these assets and related operations to LionOre will include Falconbridge's Nikkelverk refinery in Norway and the Falconbridge marketing and custom feed organizations that market and sell the finished nickel and other products produced at Nikkelverk and obtain third-party feeds for this facility. Inco also agreed to supply up to 60,000 tonnes of nickel in matte under a 10-year supply agreement, which approximates the current volume of feed provided by Falconbridge's operations to the facility. The closing of this sale is conditioned on, and expected to be completed upon receipt of, the clearance by both the DOJ and the Commission of the pending acquisition of Falconbridge by Inco, as well as Inco taking up and paying for Falconbridge shares pursuant to its offer and certain other standard terms and conditions to closing. Inco and Falconbridge understand that the DOJ and the Commission are reviewing the final terms of the proposed remedy that they have been discussing with these regulatory agencies, including the terms of this sale to LionOre. Inco and Falconbridge expects that the DOJ and the Commission will advise them whether the acquisition will be cleared based upon this sale to LionOre prior to the end of June 2006. Both companies believe that the competition issues that have been identified by the DOJ and the Commission are addressed by the agreements entered into covering this sale to LionOre. The parties will continue to cooperate with the DOJ and the Commission in connection with their respective final reviews of the terms of the remedy. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. About Inco Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- is the world's #2 producer of nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the UK. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating and Standard & Poor's BB+ rating. INDIGO ESTATES: Claims Filing Period Ends June 30 ------------------------------------------------- Creditors of Indigo Estates Limited have until June 30 to send in their full names, addresses and descriptions, full particulars of debts or claims, and the names and addresses of Solicitors (if any) to appointed Liquidator, Philip John Gorman, Hazlewoods LLP. The company can be reached at: Indigo Estates Limited Pumphouse Farm Pumphouse Lane Hanbury Droitwich Worcestershire WR9 7EB United Kingdom Tel: 01527 821 127 J & J FLOORINGS: Names Peter John Godfrey-Evans Liquidator ---------------------------------------------------------- Peter John Godfrey-Evans, of Mercer & Hole, was appointed Liquidator of J & J Floorings (Watford) Limited after creditors decided to wind up the company during an extraordinary general meeting on March 24. The company can be reached at: J & J Floorings (Watford) Limited 18 Caxton Way Watford WD188UA United Kingdom Fax: 01923 818 946 KAVANAGH HOLDINGS: Taps Freddy Khalastchi to Liquidate Assets ------------------------------------------------------------- Kavanagh Holdings Limited is liquidating its assets after creditors agreed to wind up the company's operations on March 29. Freddy Khalastchi, of Harris Lipman LLP, was appointed Liquidator. The company can be reached at: Kavanagh Holdings Limited Amber House Market Street Bracknell Berkshire RG121JB United Kingdom Tel: 01344 409 800 Fax: 01344 409 700 LUCITE INTERNATIONAL: S&P Places BB Rating on Watch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on acrylics producer Lucite International Group Holdings Ltd. on CreditWatch with negative implications on news of the group's potential recapitalization. The 'B+' ratings on Lucite's 10.25% 2010 bonds were affirmed. "The CreditWatch status reflects the potential weakening of Lucite's cash flow protection ratios and overall financial situation, as this recapitalization could lead to a material additional debt burden," said Standard & Poor's credit analyst Khaled Zitouni. The private equity owner, Charterhouse, is considering refinancing the group, which may include some dividends, after plans to sell the company did not progress as planned. To fund these potential dividends, total debt could increase; the extent of the possible increase has yet to be announced. The affirmation of the rating on the 2010 bonds reflects our expectation that the bonds would be fully refinanced with the new recapitalization debt. We expect to resolve the CreditWatch status in the next few weeks. This may result in a downgrade of up to two notches. "Our review will focus on Lucite's new financial structure, notably in terms of total debt, type of debt, leverage and related cash flow ratios, and liquidity sources," said Mr. Zitouni. Markets, operating performance expectations, litigation, and a review of the main projects and growth areas, notably, the new "alpha" production process and operations in China, will also be key. MALLARDS RETIREMENT: Brings In Liquidator from Gallaghers --------------------------------------------------------- Robert Stephen Palmer was appointed Liquidator of The Mallards Retirement Home Limited after creditors moved to wind up the company during an extraordinary general meeting on March 31. The company can be reached at: The Mallards Retirement Home Limited Gallagher & Co London EC2A4RR United Kingdom Tel: 01234 365 563 MEADOWS OF CANTERBURY: Financial Woes Trigger Liquidation --------------------------------------------------------- Creditors of Meadows of Canterbury Limited is winding up its operations after creditors established the company could no longer continue its business due to mounting debts. David Jenner Cork, of McCabe Ford Williams, was appointed Liquidator. The company can be reached at: Meadows of Canterbury Limited Stour Valley Industrial Estate Ashford Road Chartham Canterbury Kent CT4 7HS United Kingdom Tel: 01227 731 489 Fax: 01227 731 810 NEWGATE FUNDING: Fitch Rates on GBP2.3 Mln Class E Notes at BB -------------------------------------------------------------- Fitch Ratings placed expected ratings to Newgate Funding PLC's Series 2006-2 GBP500 million-equivalent mortgage-backed medium- term notes due 2050 as: -- GBP-equivalent160 million Class A1: AAA; -- A1 detachable coupons: AAA; -- GBP-equivalent 47.55 million Class A2: AAA; -- A2 detachable coupons: AAA; -- GBP-equivalent 214 million Class A3: AAA; -- A3 detachable coupons: AAA; -- GBP-equivalent 12.55 million Class M: AAA; -- GBP-equivalent 30.35 million Class B: AA; -- GBP-equivalent 19 million Class C: A; -- GBP-equivalent 14.25 million Class D: BBB; -- GBP-equivalent 2.3 million Class E: BB; -- GBP-equivalent 4.75 million Class T: Not rated; and -- GBP-equivalent 5 million Class Q: Not rated. The final ratings are contingent upon receipt of final documents conforming to information already received. This transaction is a securitization of sub-prime residential mortgages originated and located in the UK. The expected ratings are based on the quality of the collateral, available credit enhancement, the underwriting criteria and the servicing capabilities of Mortgages PLC, and the back up servicing of capabilities of Homeloan Management Limited and the transaction's sound legal structure. Credit enhancement for the Class A notes totals 16.99% and will be provided by the subordination of the Class M notes, the Class B notes, the Class C notes, the Class D notes and the Class E notes and an initial and target reserve fund of 1.30%. The Class T notes, which are unrated by Fitch, will receive interest pari passu and pro rata with the Class D notes, and the Class T notes will receive principal after any necessary payments into the reserve fund. Interest on the Class Q notes will be paid after the replenishment of the reserve fund, if needed, and before principal on the Class T. Principal on the Class Q will be paid after the principal on the Class T has been repaid in full. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its UK Residential Mortgage Default Model III. The agency also modeled cash flows using the results of the default model, with structural stresses including various prepayment and interest rate scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by legal final maturity. RAMENCO LIMITED: Brings In Joint Administrators from DTE -------------------------------------------------------- A. Poxon and J. M. Titley of DTE Leonard Curtis were appointed joint administrators of Ramenco (2001) Limited (Company Number 04280332) on May 19. DTE Leonard Curtis -- http://www.dtegroup.com/-- offers tax consultancy, company secretarial services, corporate finance, corporate recovery, turnaround, forensic accounting, financial services and insurance & risk management. Headquartered in Ramsbottom Bury, United Kingdom, Ramenco (2001) Limited manufactures fabricated metal products. SIGHT & SOUND: Taps Gerald Edelman to Administer Assets ------------------------------------------------------- Ian Douglas Yerrill and Bernard Hoffman of Gerald Edelman Business Recovery were appointed joint administrators of Sight & Sound Security Services Limited (Company Number 02978629) on May 19. The administrators can be reached at: Gerald Edelman Business Recovery 25 Harley Street London W1N 2BR United Kingdom Tel: 020 7299 1400 Fax: 020 7637 1440 E-mails: bhoffman@GeraldEdelman.com insolvency@edelman.co.uk Sight & Sound Security Services Limited can be reached at: 50 Hedley Street Maidstone Kent ME14 5AD United Kingdom Tel: 01622 765 421 T & T THOMPSON: Appoints Begbies Traynor as Administrators ---------------------------------------------------------- D. Bailey and G. N. Lee of Begbies Traynor were appointed joint administrators of T & T Thompson Limited (Company Number 02000469) on May 19. 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. T & T Thompson Limited is engaged in haulage contractors and warehousing. THAMES LABORATORIES: Halts Operations & Appoints Liquidator ----------------------------------------------------------- Thames Laboratories Limited is winding up its operations after creditors resolved to liquidate the company's assets during an extraordinary general meeting on March 21. Peter W. Engel of Solomon Hare Business Rescue was appointed Liquidator. The company can be reached at: Thames Laboratories Limited Brook Farm Thrapston Road Ellington Huntingdon Cambridgeshire PE280AE United Kingdom Tel: 01480 891 800 Fax: 01480 890 008 WETHERIGGS COUNTRY: NatWest Bank Appoints Begbies as Receivers -------------------------------------------------------------- National Westminster Bank PLC appointed Paul Stanley and Gary Lee of Begbies Traynor joint administrative receivers of Wetheriggs Country Pottery Limited (Company Number 02894624) 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. Wetheriggs Country Pottery Limited can be reached at: 1 Wetheriggs Pottery Clifton Dykes Penrith Cumbria CA10 2DH United Kingdom Tel: 01768 892 733 Fax: 01768 892 722 * Fitch Notes Rise on Delinquency Index in European Auto ABS ------------------------------------------------------------ Fitch Ratings noted performance trends for European auto transactions were positive in Q106 with stable trends in delinquencies and losses. This is one of the highlights in Fitch's latest quarterly auto index Tyre Tracks. Fitch's 60-180 Delinquency Index rose slightly in the quarter driven mainly by an increase in Portuguese delinquencies. This was not unexpected given the seasoned nature of these transactions. Conversely, the Fitch Net Loss Index showed a slight decrease, reflecting a generally downward trend across the various jurisdictions. Positive performance was further evidenced by an increase of 0.5% in the Excess Spread Index, which ended the quarter at 2.7%. The main contributors to this improvement were Italy, the UK and France. The report comments that recent news on the European auto industry has been positive with increased car sales being seen particularly in Germany, Italy and France. Auto ABS issuance levels for Q106 were similar to Q105 and Fitch expects further issuance before end of Q2. Included in the report are the Fitch European Auto ABS indices, which are measures of three of the key performance indicators that the agency uses when tracking the performance of transactions. The indices are the Fitch 60-180 Delinquency Index, the Fitch 60-90 Early Delinquency Index, the Fitch 90-180 Late Delinquency Index, the Fitch Net Loss Index and the Fitch Excess Spread Index. The report also includes a commentary on industry trends and issuance volumes. ********* 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *